$21.7bn external borrowing plan is investment, not debt – Oyedele.
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By Johnbosco Agbakwuru The Federal Government has put a strong defence to its proposed $21.7 billion external borrowing plan, describing it as a long-term investment in infrastructure, human capital and economic growth rather than an additional debt burden.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification while briefing State House correspondents at the end of the Federal Executive Council, FEC meeting, presided over by President Bola Tinubu at the Council Chamber, presidential villa, Abuja.
He said the five-year project financing plan was designed to create productive assets whose long-term economic value would outweigh the cost of borrowing. Presenting the highlights of the Federal Executive Council (FEC) meeting, Oyedele said the plan covered critical investments in transportation, defence and security, health, agriculture, energy, digital infrastructure, small businesses, social protection, environmental protection and education. He disclosed that about $10.6 billion had been earmarked for transportation infrastructure, including major highway projects such as the Sokoto-Badagry and Lagos-Calabar coastal highways, and the Kano-Kaduna Metro Rail project. The minister, however, clarified that the proposal was a financing plan submitted to the National Assembly and did not mean the entire amount had already been borrowed or would necessarily be drawn down in full.
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