Nigeria’s Minister of Finance, Taiwo Oyedele, has responded to criticism of President Bola Ahmed Tinubu’s fresh $21.7 billion external borrowing request, describing the proposed loans as an investment in the country.
Oyedele made the remarks on Wednesday at the Presidential Villa in Abuja after the Federal Executive Council, FEC, meeting.
His comments come amid growing criticism of Tinubu’s request to the Senate for approval to secure fresh external loans.
Among those leading the opposition to the borrowing plan is former Vice President and presidential candidate of the African Democratic Congress, ADC, Atiku Abubakar.
Atiku had urged the Senate not to approve Tinubu’s loan request.
Reacting to the criticism, Oyedele explained that the proposed borrowing was intended to fund investments rather than merely increase the country’s debt burden.
According to him, the loans would finance productive investments capable of driving economic growth and improving Nigerians’ living standards.
“This is investment, not borrowing,” he said.
He added that the proposed financing should be assessed based on the assets it would create and their expected economic returns, rather than being viewed simply as an addition to Nigeria’s debt burden.
Oyedele further disclosed that transportation infrastructure accounts for about $10.6 billion under the proposed borrowing plan.
He said the allocation would cover major projects, including the Sokoto-Badagry and Lagos-Calabar highways, as well as the Kano-Kaduna rail project.