The $ 21.5 billion loan of Tinubu will not increase the burden of debt – FG

The Federal Government has ensured the Nigerians that the $ 21.5 billion external loan request from President Bola Ahmed Tinubu will not involve an unsustainable debt burden.

The Minister of Finance and the Coordination of the Minister of Economy, Wale Edun, stressed that the loans were linked to critical infrastructures and development projects designed to stimulate long -term economic growth.

According to Edun, the loan plan was part of a wider economic strategy to reposition the Nigerian economy and attract foreign investments.

He observed that the funds would be distributed in key sectors, including energy, transport, education and health care, and that each project was supported by a clear and sustainable refund framework.

“The Tinubu administration is focused on responsible tax management. This loan plan is a proactive step towards economic recovery, not a reckless accumulation of the debt,” said Edun.

The Minister of the Budget and Economic Planning, Atiku Bagudu, said that the government was confident that the loans would produce high economic returns, adding that the reforms in progress, especially in the tax collection and revenue, would improve the country’s ability to meet their debt obligations.

The government also stated that the debt / GDP of Nigeria remained within acceptable global benchmark and that the efforts to increase revenue and cut the expenditure expenditure were already underway.