President Bola Ahmed Tinubu of Nigeria has formally submitted a comprehensive external borrowing plan for the years 2024 through 2026 to the National Assembly for approval. The plan, a vital component of Nigeria’s Medium-Term Expenditure Framework (MTEF), aims to provide a structured roadmap for borrowing by both the federal government and selected states over the next three years.
In an official press statement released on May 28 by the Federal Ministry of Finance, the government clarified that this borrowing rolling plan does not signify immediate debt acquisition. Rather, it serves as a forward-looking framework designed to enhance fiscal planning and reduce reliance on ad hoc borrowing practices that have previously hampered economic stability.
“The proposed Borrowing Rolling Plan is an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003,” the statement reads. It further explains that the plan includes detailed appendices covering project specifics, loan terms, and implementation timelines.
For the fiscal year 2025, the external borrowing allocation stands at US $1.23 billion, which is scheduled to be drawn in the second half of the year. This borrowing will involve not only the federal government but also states such as Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe.
Crucially, the plan does not automatically increase Nigeria’s debt burden. Many projects under this plan are multi-year, with loan drawdowns stretched over five to seven years. These loans are tied to significant development initiatives across sectors including power infrastructure, irrigation to improve food security, nationwide fibre optics networks, national security with procurement of fighter jets, and critical rail and road infrastructure.
The bulk of the proposed financing is expected from Nigeria’s development partners such as the World Bank, African Development Bank, French Development Agency, European Investment Bank, Japan International Cooperation Agency (JICA), China EximBank, and the Islamic Development Bank. These institutions provide concessional loans with favourable terms and extended repayment schedules that align with Nigeria’s sustainable development objectives.
Addressing concerns over Nigeria’s rising debt service ratio, the Ministry noted a recent decline from a peak exceeding 90% in 2023. The government has reportedly curtailed inflationary financing methods and anticipates increased revenues from the Nigerian National Petroleum Corporation (NNPC), improved revenue collection through technology-enabled monitoring, and recovery of outstanding dues from government enterprises.
The statement underscores the government’s broader economic vision: “Having achieved a fair degree of macroeconomic stabilization, the overarching goal of the Federal Government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.” Investments guided by the borrowing plan are intended to support diversification and foster private sector engagement.
The government emphasises that its debt strategy prioritises not the size of obligations but the utility, sustainability, and economic returns of borrowed funds. “Ensuring that all borrowed funds are efficiently utilized and directed toward growth-enhancing projects remains a top priority,” the statement affirms.
Finally, the Ministry reaffirmed its commitment to fiscal discipline and transparency, stressing the importance of ongoing tax reforms and revenue enhancement measures to keep borrowing sustainable under the Debt Management Office’s Debt Sustainability Framework. It called for constructive public and legislative engagement as key to achieving long-term economic stability and inclusive prosperity.
