The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the Federal Government’s proposed $21.7 billion external borrowing plan, describing it as an investment rather than a burden on Nigeria.

Oyedele spoke on Wednesday after the Federal Executive Council meeting in Abuja, responding to criticism of the plan, including comments by former Vice President Atiku Abubakar.

He explained that the financing package comprises $20.52 billion and €1.045 billion, which together amount to about $21.7 billion, and is intended for projects across transportation, security, healthcare, agriculture, energy, digital infrastructure, education and social protection.

“Altogether, if you convert the euro amount and add it to the dollar amount, it will come up to $21.7bn. And we’ve seen some people with commentary saying that we are borrowing X, Y, Z. I’m pleased and excited to inform you that actually, this does not qualify as borrowing. This qualifies as investment,” Oyedele said.

He stressed that the plan should be assessed based on the assets to be created and the expected economic returns, rather than being viewed solely as an addition to the country’s debt stock.

According to the minister, about $10.6 billion of the proposed financing is earmarked for transportation infrastructure, including the Sokoto-Badagry and Lagos-Calabar highways, as well as the Kano-Kaduna rail project.

Oyedele noted that the proposal remains a plan and does not mean that the full amount would necessarily be borrowed.