Nigeria’s External Borrowing Plan for 2024-2026
Oru Leonard
The Federal Government of Nigeria, under President Bola Ahmed Tinubu, has formally requested approval from the National Assembly for a 2024-2026 External Borrowing Rolling Plan, amounting to $21.5 billion. This plan is part of the Medium-Term Expenditure Framework (MTEF) and aims to facilitate comprehensive financial planning and mobilize development resources.
Borrowing Plan: The plan outlines the external borrowing framework for federal and sub-national governments over three years, with detailed appendices on projects, terms, and conditions.
Actual Borrowing: The borrowing plan doesn’t equate to actual borrowing; actual borrowing for each year is contained in the annual budget. For 2025, the external borrowing component is $1.23 billion, planned for H2 2025.
Project Funding: Borrowed funds will support critical sectors, including:
- Power and Energy: Power grids and transmission lines
- Agriculture: Irrigation for improving food security
- Infrastructure: Fibre optics network, rail and road infrastructure
- Security: Fighter jets
- Debt Sustainability: The government emphasizes that the borrowing plan won’t automatically increase the nation’s debt burden, as borrowings are split over project periods (5-7 years).
- Revenue Expectations: The government expects significant revenue from the Nigerian National Petroleum Corporation (NNPC) and technology-enabled monitoring of Government-Owned Enterprises.
Sources of Funding
The majority of the proposed borrowing will come from Nigeria’s development partners, including¹ ²:
- World Bank
- African Development Bank
- French Development Agency
- European Investment Bank
- JICA
- China EximBank
- Islamic Development Bank
These institutions offer concessional financing with favorable terms and long repayment periods, supporting Nigeria’s development objectives sustainably. The government remains committed to keeping borrowing within manageable limits, prioritizing fiscal discipline, transparency, and accountability.
