• 28 May, 2025
• FAITH MIMDOO KEGH
• No comment

Presidency Clarifies Tinubu’s $20 Billion Borrowing Proposal.

On May 28, 2025, the Nigerian presidency addressed pub

lic concerns about President Bola Ahmed Tinubu’s recent communication to the National Assembly regarding a proposed borrowing framework for 2025–2026.

According to presidential aide Dada Olusegun, the media has misrepresented the proposal, incorrectly portraying it as a request for a single \$20 billion loan. In a post on his verified X account, Olusegun explained that the plan is part of Nigeria’s Medium-Term Expenditure Framework (MTEF), which outlines funding strategies over a two-year period, covering both federal and state-level borrowing.

Olusegun stressed that the proposal is not a lump-sum borrowing request, but a comprehensive outline of potential financing sources for development initiatives across Nigeria. He noted that, for instance, the federal government is aiming to raise \$2 billion from the domestic market to support infrastructure projects.

He clarified that state governments cannot obtain international funding without federal approval, and that the Senate must authorize all external borrowing. Presenting all projected borrowings at once streamlines the legislative process and avoids repeated requests to the Senate.

Olusegun also pointed out that National Assembly approval does not guarantee that all proposed loans will be used. The plan simply gives room for flexibility depending on need and timing.

He defended the use of loans, emphasizing that they can be effective tools for development if managed properly. The focus, he said, should be on transparency and responsible use of funds.

Olusegun reaffirmed President Tinubu’s commitment to fulfilling his campaign promises and tackling the country’s infrastructural and economic challenges, even if it means making tough decisions.

The National Assembly is expected to review and deliberate on the proposal in the coming weeks amid ongoing public debate about Nigeria’s debt management.

FAITH MIMDOO KEGH

Manager – Oversees the daily operations, editorial planning, and strategic direction of the platform. A graduate with a solid academic foundation in media and communication, Faith brings a wealth of experience to the TokinPoint.

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