See more as FG clarifies plans to borrow $21.5bn, names prospective lenders

• The Ministry of Finance has provided clarification to the borrowing petition of President Bola Tinubu
• The president, successful a missive to lawmakers seeking approval, said that the caller indebtedness is for economical maturation
• The caller indebtedness has raised eyebrows among Nigerians astir the country's existent nationalist indebtedness level

Legit.ng writer Dave Ibemere has implicit a decennary of acquisition successful business journalism, with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

The Ministry of Finance has clarified President Bola Tinubu’s $21.5 cardinal borrowing petition to the National Assembly.

In a connection signed by Mohammed Manga, manager of accusation and nationalist relations, the ministry explained that the borrowing program is portion of a indebtedness absorption model and does not signify an automatic summation successful the country’s indebtedness burden.

President Tinubu is awaiting lawmakers' support for the caller $21.5 cardinal outer loan Photo credit: Presidency
Source: Facebook

Legit.ng reported that Tinubu, connected May 27, asked lawmakers to o.k. a caller outer borrowing program totalling $21.5 billion, on with a petition to contented federal government bonds worthy N757.9 cardinal to settee outstanding pension liabilities nether the Contributory Pension Scheme (CPS).

In the statement, the concern ministry said the borrowing petition is designed to present a much structured, forward-looking attack to managing nationalist indebtedness and replacing past practices of reactive borrowing.

Manga said:

“The Debt Rolling Plan is not an automatic greenish airy for expanding the indebtedness burden. It is simply a strategical model that guides sustainable and purposeful borrowing."

He added that the strategy aims to heighten Nigeria’s quality to instrumentality dependable fiscal policies and pull improvement financing portion maintaining indebtedness sustainability.

Prospective lenders of Nigeria's $21.5bn loan

The ministry noted that astir of the projected loans would beryllium sourced from improvement partners, including the World Bank, African Development Bank, China EximBank, Japan International Cooperation Agency (JICA), the French Development Agency, European Investment Bank, and the Islamic Development Bank.

The connection added:

“These institutions supply concessional financing with favourable presumption and agelong repayment periods, which align with the country’s improvement needs."

Snapshot of Nigeria's nationalist indebtedness arsenic of December 2024 Photo credit: DMO
Source: Facebook

The authorities said the funds would enactment captious sectors specified arsenic infrastructure, transportation, energy, and agriculture, each considered captious for achieving accelerated and inclusive economical growth.

It added:

“Our borrowing strategy is guided not by the measurement of loans but by their utility, sustainability, and the economical worth they generate. Each installation volition beryllium strictly tied to growth-enhancing projects."

The connection further reiterated the government’s committedness to fiscal discipline, improved gross generation, and maintaining borrowing wrong sustainable limits, the Cable reports.

Manga said ongoing taxation reforms and different revenue-boosting initiatives would assistance fortify fiscal absorption and trim dependence connected debt.

The ministry said:

“Legislative oversight and nationalist engagement are cardinal to gathering semipermanent economical stableness and inclusive nationalist prosperity."

Nigeria’s indebtedness to countries rises by implicit $133m

Earlier, Legit.ng reported that Nigeria’s indebtedness banal to countries nether bilateral statement deed $6.09 cardinal astatine the extremity of December 2024, according to data from the Debt Management Office (DMO).

The caller indebtedness banal is simply a 2.23% oregon $133.02 cardinal summation erstwhile compared to $5.96 cardinal reported astatine the extremity of 2023.

There are six countries captured successful the DMO data, which see China, France, Japan, India and Germany.

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Source: Legit.ng