$21.7bn external borrowing plan is an investment, not additional debt, says Oyedele

Nigeria’s Finance Minister, Taiwo Oyedele, defended a five-year, $21.7 billion external financing plan submitted to the National Assembly, saying it would create assets and support growth rather than automatically add to the country’s debt burden. About $10.6 billion is earmarked for transport, including the Sokoto-Badagry and Lagos-Calabar highways and the Kano-Kaduna Metro Rail, alongside investments in health, energy, agriculture, security and education. Oyedele stressed that the full amount would not necessarily be borrowed or disbursed, and said $7.9 billion would come from multilateral and bilateral partners, including $5 billion from the World Bank at an average concessional rate of 2.1%. He said economic indicators had improved since reforms began in May 2023, while acknowledging that significant challenges remained.