The Nigerian Finance Ministry has said that President Bola Tinubu’s recent plan to borrow $21.5 billion from outside the country does not mean Nigeria’s debt will automatically go up.
On May 27, President Tinubu asked the National Assembly for permission to borrow $21.5 billion. He also requested to issue government bonds worth about N758 billion. This money will help pay off pension debts under the contributory pension scheme.
Mohammed Manga, the ministry’s director of information, said this borrowing plan is part of a bigger idea called the Debt Rolling Plan. This plan aims to organize Nigeria’s borrowing in a smarter and more planned way. It replaces past random borrowing with a better strategy.
He explained that the Debt Rolling Plan does not mean Nigeria will just keep borrowing more and more. Instead, it is a guide to borrowing money carefully and making sure the country can pay it back.
Most of the borrowing will be from international organizations like the World Bank, African Development Bank, China EximBank, Japan International Cooperation Agency, and others. These groups give loans with low interest rates and long time to repay.
The money borrowed will be used for important projects in sectors like infrastructure, transportation, energy, and farming. These areas are important for Nigeria’s long-term economic growth.
The ministry said their borrowing is not about taking large amounts of loans but about how useful the loans are. Every loan will be connected to projects that help Nigeria’s economy grow.
The government also promised to keep debt under control. They are working hard on tax reforms and finding ways to increase government income within the country to keep the economy stable.
The ministry added they are focused on being careful with money, being open and transparent, and involving lawmakers and the public to make sure Nigeria grows steadily and all people benefit.
Finally, Manga said that improving the tax system and increasing government income will help Nigeria manage money better and reduce the need to borrow from outside in the future.
