Nigerian Government Defends $21.5B Loan Plan, Promises Strategic, Sustainable Use

Nigeria’s federal government has clarified President Bola Tinubu’s recent $21.5 billion loan request, framing it as part of a structured 2025–2026 Debt Rolling Plan. According to the Ministry of Finance, this plan supports long-term economic planning while reducing haphazard borrowing. The ministry also stated that most of the funds will come from development partners, which offer concessional terms. These partners include the World Bank, the African Development Bank, the Islamic Development Bank, and China EximBank. The government insists this move won’t inflate the debt burden but will fund critical sectors like energy, transport, and agriculture. In addition, Tinubu requested loans and grants from Japan and the European Union to stimulate job creation, reduce poverty, and boost food security. This strategic borrowing, officials say, aims to drive sustainable development without breaching fiscal limits.

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