In a press conference earlier today, Finance Minister, Zainab Oyedele, defended the Nigerian government’s proposal to borrow $21.7 billion. This move has been met with criticism from various quarters, with concerns about the country’s growing debt profile. However, Oyedele argued that the funds would be used for crucial infrastructure projects and would stimulate economic growth.
According to MarketForces Africa, Oyedele highlighted that the proposed borrowing is a part of the 2027-2031 Medium Term Expenditure Framework (MTEF), which outlines the government’s spending plans for the next five years. She emphasised that the funds would primarily be utilised for key infrastructure projects such as power, transportation, and agriculture.
Critics, however, have raised concerns about the country’s ability to service this debt, given its current economic challenges. The debt-to-GDP ratio has been on the rise, reaching 32% in 2025, according to the National Bureau of Statistics.
The Minister’s defence comes after a report by the Debt Management Office (DMO) stating that the government’s total debt stock had reached N16.39 trillion ($41.4 billion) as of June 2026. This represents a 20% increase from the previous year.
It remains unclear when the facility for this proposed borrowing will begin operations. The Nigerian government is yet to provide details about the terms and conditions of the loan, as well as the specific lenders involved.
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