The Federal Government has provided clarification regarding President Bola Tinubu’s request to the National Assembly for approval of a new $21.5 billion external borrowing plan, which is part of the proposed borrowing strategy for 2025-2026.

In a press statement on Tuesday, the Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, explained that the Debt Rolling Plan is a structured framework for external borrowing by the federal, state, and local governments over a two-year period.

“The proposed Debt Rolling Plan outlines the external borrowing framework for both the federal and sub-national governments over a two-year period,” the statement read, in part.

“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad hoc or reactive borrowing practices,” the statement stated further.

“This strategic method enhances Nigeria’s ability to implement effective fiscal policies and mobilize development resources.”

The government emphasized that the plan does not necessarily mean an increase in the nation’s overall debt burden.

“The majority of the proposed borrowing will be sourced from Nigeria’s development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. These institutions offer concessional financing with favorable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably,” the statement added.

The Federal Government reiterated its dedication to fostering rapid, inclusive, and sustainable economic growth through strategic investments.

“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture,” Manga stated.

“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.”

He further clarified the government’s debt management strategy: “Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing. Ensuring that all borrowed funds are efficiently utilized and directed toward growth-enhancing projects remains a top priority.”

The statement further emphasized that the government is committed to maintaining borrowing at manageable and sustainable levels.

On Tuesday, President Tinubu requested the Senate’s approval for a new external borrowing plan amounting to approximately $21.5 billion as part of the 2025-2026 borrowing strategy.