In an official statement issued by the Presidency, the Special Assistant to the President on Social Media, Mr. Dada Olusegun, has firmly refuted recent claims suggesting that President Bola Ahmed Tinubu is seeking to borrow a lump sum of $20 billion. The clarification was issued to address growing public confusion over the contents of the 2025–2026 Medium Term Expenditure Framework (MTEF), currently before the National Assembly.
According to the statement, the MTEF is a strategic fiscal planning document, not a direct loan request, that provides an outline for how the Federal Government and the 36 states of the federation intend to finance development projects over the next two years.
“No, the President is not requesting to borrow $20 billion, at least not in the way it has been misrepresented,” the release stated.
Key Highlights of the Clarification:
• Only $2 Billion Specified for FG Projects: The Federal Government’s direct borrowing in the MTEF is clearly itemized as a proposed $2 billion to be raised in the domestic capital market for key infrastructure projects. This is a targeted effort to address Nigeria’s critical infrastructure deficit.
• Not a Blanket Loan Request: The reference to $20 billion represents a consolidated projection of potential external and domestic financing by both federal and state governments across the 2025–2026 period. Presenting this as a single plan is a deliberate strategy to avoid constant back-and-forth with the legislature.
• States Require FG Guarantee: All international borrowings by state governments must be guaranteed by the Federal Government. Hence, the inclusion of state-level borrowing plans within the MTEF does not reflect federal indebtedness, but procedural consolidation.
• Senate Approval Is Not Equivalent to Disbursement: Even after legislative approval, each borrowing initiative will still undergo its own vetting and approval process. In many cases, not all of the approved funds are accessed or utilized.
• Borrowing is Not Inherently Negative: The statement reiterated that borrowing is a globally accepted tool for financing public development, especially when tied to infrastructure and human capital investment. The real concern should be the efficiency and accountability of how such funds are used.
Mr. Olusegun emphasized that the Tinubu administration remains fully committed to delivering on its electoral promises and is deploying all legitimate fiscal instruments to fund critical projects. He further urged the public and media outlets to engage in responsible discourse and avoid mischaracterizing routine fiscal planning as reckless borrowing.
“This administration will not shy away from the responsibility of rebuilding the nation. What matters is that every loan is tied to a result. Every fund must work for the people,” the statement concluded.
As the National Assembly continues its deliberations on the MTEF, the Presidency has called for informed public engagement, focused not on fearmongering, but on ensuring that Nigeria’s financial planning stays transparent, strategic, and people-centered.
