NaijaNetGist —The Presidency has moved swiftly to address growing public concern and misinformation surrounding the 2025–2026 Medium Term Expenditure Framework (MTEF), clarifying that President Bola Tinubu is not requesting a $20 billion loan as widely misreported.
In a statement issued on Tuesday, officials emphasized that the MTEF is a periodic financial planning tool used by nations to guide budget execution over a set period. For Nigeria, the current framework covers the 2025–2026 fiscal years and outlines how both federal and state governments plan to access external funding for key projects.
Contrary to some claims, the document submitted to the National Assembly does not seek a lump sum $20 billion loan for the federal government. Instead, the MTEF includes detailed projections of external borrowing needs for both the federal and 36 state governments over the next two years.
“For the Federal Government, the document proposes raising $2 billion from the domestic market to finance critical infrastructure projects — a significant but clearly defined initiative,” the statement read.
It further explained that states cannot access international funding without the Federal Government acting as a guarantor, hence the need for Senate approval for all external borrowing proposals. The decision to present the total borrowing plan at once is a strategic move to avoid repeated monthly requests to the legislature.
The Presidency also noted that while the proposed loans still require National Assembly approval, such approvals do not equate to guaranteed disbursements, as actual usage depends on project readiness and execution capacity at different levels of government.
"Loans in themselves are not inherently negative. The real focus should be on how such loans are utilized to improve public service delivery," the statement emphasized.
Reiterating President Tinubu’s commitment to fulfilling his electoral promises, the statement concluded: “All necessary steps to achieve those promises — including responsible borrowing where necessary — will be pursued with accountability and transparency.”
