On May 28, 2025, the Federal Government of Nigeria addressed concerns over President Bola Tinubu’s proposed $21.5 billion external borrowing plan, part of the 2025-2026 Debt Rolling Plan, emphasizing its role in fostering sustainable economic growth. In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, the government outlined that the plan provides a structured framework for federal and sub-national borrowing over two years, aiming to enhance fiscal planning and avoid inefficient, reactive borrowing practices.
The borrowing plan, which awaits National Assembly approval, will primarily involve concessional loans from development partners, including the World Bank, African Development Bank (AfDB), French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. These loans offer favorable terms and extended repayment periods, ensuring sustainable financing for Nigeria’s development goals. The government clarified that the plan does not automatically increase the nation’s debt burden but focuses on strategic resource mobilization.
President Tinubu also requested Senate approval for a 15 billion Japanese Yen loan and a 51 million Euros grant to support initiatives in employment, skill acquisition, entrepreneurship, poverty reduction, and food security across Nigeria’s 36 states. The government highlighted the necessity of external borrowing to address a significant infrastructure gap amid declining domestic funding, with investments targeting critical sectors like transportation, energy, agriculture, and infrastructure to drive economic diversification and private sector growth.
Manga emphasized Nigeria’s prudent debt management strategy, stating, “Our borrowing is guided by the utility, sustainability, and economic returns of projects. We prioritize efficient fund utilization for growth-enhancing initiatives while keeping debt levels manageable.” The approach aims to balance development needs with fiscal responsibility.
As of December 2024, Nigeria’s foreign debt stood at $44.9 billion, with major creditors including Eurobond holders ($17.32 billion), the World Bank’s IDA ($16.56 billion), Exim Bank of China ($5.06 billion), AfDB ($2.10 billion), and the World Bank’s IBRD ($1.24 billion). The country recently repaid a $3.4 billion IMF emergency loan from 2020, demonstrating commitment to meeting obligations. At the current exchange rate of N1,579/$1 as of May 28
