Tinubu’s $21.7B Loan Plan: Minister Breaks Silence, Reveals Where Money Will Go

According to a report by The Punch on Thursday, October 29, 2026, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has opened up on the Federal Government’s proposed $21.7 billion supplementary external borrowing plan for 2026-2027, addressing public concerns head-on.

Speaking to reporters after the Federal Executive Council meeting in Abuja, Oyedele clarified that the proposal sent to the National Assembly is strictly a financing blueprint, meaning the government has not yet borrowed the funds.

According to a breakdown by the Ministry of Finance, transport takes the lion’s share with $10.6 billion, while defence and security secure $2.4 billion.

Together, these two critical sectors consume $13 billion of the entire package. Other beneficiaries include agriculture, energy, health, education, and digital infrastructure.

Addressing critics of public debt, Oyedele defended the strategy, explaining that the borrowing aims to fund infrastructure projects that generate assets and economic value far exceeding the loan costs.

He likened the funding strategy to major private sector investments, emphasizing that no modern economy runs without external financing.

The funding structure comprises $13.8 billion in commercial facilities, $6.2 billion in concessional loans, and $1.8 billion in blended terms.

The World Bank remains the single largest partner at $5 billion. Out of the total package, the Federal Government accounts for $16.7 billion, while states and the FCT take $3.3 billion, with a major chunk of sub-national facilities tied to concessional terms.

Furthermore, the Federal Executive Council approved critical memoranda, including power substation upgrades under the Presidential Power Initiative, rolling stock for the Kano-Maradi rail line, and state transport infrastructure.

On food inflation, Oyedele assured Nigerians that collaborative short- and long-term measures are underway to stabilise staple prices, boost local farming, and manage targeted food imports.

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