The Federal Government has provided clarification on the recently submitted 2024–2026 External Borrowing Rolling Plan, emphasizing that it is a strategic framework and not an immediate loan drawdown.
President Bola Ahmed Tinubu formally transmitted the borrowing plan to the National Assembly on May 27, 2025. According to the Federal Ministry of Finance, the plan is a core part of the Medium-Term Expenditure Framework (MTEF), designed in line with the Fiscal Responsibility Act 2007 and the Debt Management Office (DMO) Act 2003.
The borrowing framework outlines proposed external funding sources for both federal and state governments across a three-year span, with five appendices detailing projects, terms, and implementation timelines. The Ministry emphasized that this forward-looking approach is aimed at efficient fiscal planning and avoids the pitfalls of reactive borrowing.
Importantly, the plan does not represent an automatic increase in Nigeria’s debt stock. For 2025, the actual external borrowing allocation in the budget is $1.23 billion—yet to be drawn and scheduled for the second half of the year.
Projects covered under the plan span key sectors such as energy (including power transmission), food security (irrigation), security (fighter jets), digital infrastructure (nationwide fibre optics), and transportation (rail and road networks). These are long-term, project-tied loans with drawdowns typically spread over 5 to 7 years.
The funding will come primarily from concessional lenders including the World Bank, AfDB, JICA, China EximBank, and others—offering favourable terms and extended repayment periods.
The Ministry also noted a positive shift in fiscal health, with the debt service-to-revenue ratio dropping from over 90% in 2023. The government has halted reliance on inflationary central bank overdrafts and expects higher revenue inflows from NNPC, MDAs, and Government-Owned Enterprises.
Highlighting the macroeconomic progress made so far, the government reaffirmed its strategy to use external loans as a catalyst for economic transformation through sustainable and impactful investments.
“Our debt strategy is guided not just by the volume but by the value and return on each borrowing,” the statement read.
The Ministry concluded by restating its commitment to debt sustainability, transparency, and efficient project execution, with active legislative oversight and citizen engagement seen as critical pillars of Nigeria’s long-term growth and prosperity.
