Oyedele defends $21.7bn borrowing plan as investment, not debt

Di Federal Government don defend im proposed $21.7 billion external borrowing plan, saying di money na to build assets and no be to fund consumption. Finance Minister and Coordinating Minister of di Economy Taiwo Oyedele make di case on Wednesday after di Federal Executive Council (FEC) meeting wey President Bola Tinubu chair for Presidential Villa in Abuja.

Oyedele talk say di proposal na five-year financing plan wey dem don already send to National Assembly, and e no mean say dem don borrow di full amount or go draw am one time. "Dis na investment, no be borrowing," e tell State House reporters.

Di plan get $20.52 billion and €1.045 billion, covering transportation, defence and security, health, agriculture, energy, digital infrastructure, small businesses, social protection, environment and education.

Where di money dey go

About $10.6 billion earmark for transport, including di Sokoto-Badagry and Lagos-Calabar coastal highways and di Kano-Kaduna metro rail project.

Oyedele talk say roughly $7.9 billion go come from multilateral and bilateral partners, including $5 billion from World Bank at concessional rates wey average 2.1 per cent. Di commercial component carry indicative average rate of 7.8 per cent, wey e talk say dey below Nigeria's November 2025 Eurobond rate.

E put $3.3 billion toward state government projects and $1.45 billion for Federal Capital Territory, with di Federal Government acting as coordinating authority for federal, state and other public-sector financing.

Oyedele argue say borrowing fit strengthen di country's balance sheet when di assets wey dem create worth more than di cost of financing dem. E compare di approach to Dangote Refinery, saying big projects often need external funding to complete on time.

Opposition and di economy

Former Vice President Atiku Abubakar don ask National Assembly make dem no approve di loans until dem publish every project, cost, contractor, loan term and repayment obligation. E also question di timing ahead of 2027 general election. Dem never establish those allegations as fact.

Former Anambra governor Peter Obi separately raise concerns about Nigeria's projected $11.6 billion debt-servicing bill for 2026, warning say repayments fit squeeze spending on schools, hospitals and jobs.

Oyedele talk say di reforms since May 2023 don improve key indicators. E cite inflation wey fall to 14.63 per cent in September from 20.98 per cent a year earlier, growth of 4.43 per cent in second quarter of 2026, and foreign reserves above $55 billion, with net reserves over $45 billion.

E talk say di naira don stabilise around ₦1,330 to ₦1,350 to di dollar, while di debt-service-to-revenue ratio fall from about 97 per cent to below 60 per cent. Di FEC adopt target of single-digit inflation by end of 2027 or earlier, and back di National Economic Council's 90-day plan to ease cost of living.

On direct support, e talk say ₦372.6 billion don go to over 1.5 million students through di Nigerian Education Loan Fund (NELFUND), more than ₦600 billion in cash transfers reach over 10 million households, and over 800,000 small businesses get single-digit loans through di Bank of Industry.

Di FEC also approve €155.9 million Deutsche Bank facility for five substations under Phase One of di Presidential Power Initiative, $970 million Standard Chartered and Africa Finance Corporation loan for rolling stock on di Kano-Maradi rail line, €76.8 million ECOWAS Bank for Investment and Development credit for Bauchi State roads, and cargo scanners for di Nigeria Customs Service.

Minister of State for Budget Doris Uzoka-Anite talk say dem dey prepare 2027 budget for presentation before end of 2026.

Wetin go happen next

Di National Assembly go decide whether to approve di borrowing plan. Atiku's camp want make dem publish full project details first, while di government talk say di plan go only draw funds as projects progress.