FG Clarifies External Borrowing Plan

The federal government has explained that the 2024–2026 External Borrowing Plan presented to the National Assembly on Tuesday was crucial for the execution of the 2024–2026 Medium Term Economic Framework.

The Federal Ministry of Finance said in a statement yesterday that the borrowing plan was for the entire nation, meaning that it included both federal and state governments and does not equate actual borrowing.

Several media outlets interpreted the External Borrowing Plan to mean that the FG was seeking $21. 5 billion external loans.

However, the ministry said that the actual External Borrowing in the 2025 Fiscal Year stood at $1.23 billion.

The statement issued by the Director of Press and Public Relations, Mr. Mohammed Manga, stated: “The proposed Borrowing Rolling Plan is an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.

“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.

“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad hoc or reactive borrowing practices. This strategic method enhances Nigeria’s ability to implement effective fiscal policies and mobilize development resources.  

“The borrowing plan does not equate to actual borrowing for the period. The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is $1.23 billion, and it has not yet been drawn. This is planned for H2 2025.

“Also, the plan is for both federal and several state governments across numerous geopolitical zones, including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.