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| Oyedele |
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, has responded to criticism from Atiku Abubakar over the Federal Government’s proposed $21.7 billion external borrowing plan, saying the funds are intended for investment rather than to burden the country.
Oyedele spoke on Wednesday, October 28, while addressing State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
According to the minister, the loans are meant to finance productive investments that will drive economic growth and improve the living standards of Nigerians.
The development follows a request by President Tinubu on Tuesday for the National Assembly to approve external borrowing of $20.52 billion and €1.04 billion for projects and programmes across several sectors.
In a letter read during plenary by Senate President Godswill Akpabio, Tinubu said the proposed borrowing would support infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.
The President added that the plan was designed to accelerate economic growth and address Nigeria’s infrastructure funding gap.
However, Atiku Abubakar, presidential candidate of the African Democratic Congress (ADC), urged the National Assembly to withhold approval of the borrowing plan.
In a statement issued by Phrank Shaibu, director of strategic communication of the ADC presidential campaign council, Atiku questioned the timing and purpose of the proposed borrowing.
The former vice-president said the request confirmed his October 12 warning that Tinubu was preparing to borrow up to $20 billion for the Lagos-Calabar coastal highway.
Atiku also said the government had not provided sufficient details about the projects to be funded, including their locations, costs and contractors, to allow Nigerians to scrutinise the proposed expenditure.
He further expressed concern that the loans could be channelled to political campaigners and favoured contractors, citing reports that the coastal highway had been rerouted inland.
Responding to the former vice-president’s concerns, Oyedele argued that the proposed financing should be judged by the assets it would create and the economic returns those assets were expected to generate, not simply treated as an increase in Nigeria’s debt stock.
“This is investment, not borrowing,” he said.
The minister explained that the government was seeking funds for projects capable of boosting national productivity and creating long-term economic value. He also said the administration aimed to bring inflation down to single digits by the end of 2027, or possibly earlier.
Under the proposed borrowing plan, transportation infrastructure would take up about $10.6 billion. The allocation covers major projects, including the Sokoto–Badagry and Lagos–Calabar highways, as well as the Kano–Kaduna rail line.
Oyedele said the government would source financing from multilateral and bilateral development partners, alongside other channels, to fund the projects. He added that roughly $7.9 billion was expected from multilateral and bilateral partners, including the World Bank.
According to the minister, a $5 billion World Bank component would come with concessional terms at an average interest rate of about 2.1 percent, while certain loans for the social sector would attract rates of around two percent.
He said the government was prioritising favourable financing conditions to keep borrowing costs low and ensure that the projects delivered enduring economic benefits.
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