President Bola Tinubu’s Special Adviser on Media and Public Communication, Sunday Dare, has defended Nigeria’s newly approved borrowing plan, describing it as strategic, transparent, and essential for national development.
In a post on X, Dare clarified that what the Senate approved was a Medium-Term External Borrowing Plan, not ₦21 trillion for immediate spending. He said the disbursement would be spread over 2025 to 2026 and tied strictly to infrastructure and social sector investments—not recurrent expenditure.
According to the breakdown, the borrowing plan includes about $21 billion in foreign loans, featuring €4 billion, ¥15 billion, and a $65 million grant. It also includes a $2 billion (₦758 billion) domestic bond component. “Every dollar is tied to critical infrastructure and social projects – rail, power, broadband, health, education, housing, and security,” Dare said.
“This is how economies grow not through handouts or headlines, but by fixing roads, lights, and lives.”
On Nigeria’s debt sustainability, Dare noted that following the July 2025 GDP rebasing, the country’s debt-to-GDP ratio dropped to approximately 39 per cent—below the 40 per cent threshold set by fiscal authorities. He said the borrowing remains within safe limits and is aligned with Nigeria’s debt strategy, which prioritises concessional loans and structured oversight.
He also addressed concerns about the ₦758 billion pension bond, clarifying that it is not new spending but a restructuring tool aimed at settling outstanding pension arrears and fulfilling obligations to retirees.
Dare underscored that all disbursements are subject to rigorous scrutiny, including approvals from the Federal Executive Council (FEC), monitoring by the Debt Management Office (DMO), and legislative oversight. “This is accountability by design—not business as usual,” he said.
He linked the borrowing plan to the administration’s broader reform agenda, which includes the removal of fuel subsidies and unification of the exchange rate. These reforms, Dare said, have been “tough but necessary,” and the borrowing plan will help cushion their impact while driving long-term transformation.
“Let’s debate with data. Let’s lead with truth,” he concluded.
