By Henry Ojelu

A renowned economic expert, Dr Ifediora Amobi, has backed the Federal Government’s proposed $21.7 billion supplementary external borrowing plan for 2026 and 2027, saying the facility could support economic growth, infrastructure development and improved living standards if properly utilised.

Amobi’s endorsement comes amid the Federal Government’s plan to raise the funds to finance 46 projects across critical sectors of the economy, with support from 11 lender groups.

The Draft Supplementary External Borrowing Plan 2026–2027, as presented by the Federal Ministry of Finance, comprises $20.5 billion and €1.05 billion, amounting to approximately $21.7 billion.

The plan allocates about 49 per cent of the proposed borrowing, representing $10.6 billion, to transportation projects, including highways, metro rail and rolling stock.

Another $7.9 billion, representing 36 per cent of the proposed financing, is expected to come through concessional and blended financing from development partners for 29 of the 46 projects.

The proposal also provides $4.8 billion for states, the Federal Capital Territory and government agencies, alongside federal programmes.

According to the Federal Ministry of Finance, concessional loans under the arrangement have an average interest rate of 2.1 per cent, while commercial facilities carry an indicative average rate of 7.8 per cent, which it said is below recent Eurobond pricing.

Amobi said the proposed borrowing could help address Nigeria’s infrastructure deficit and stimulate productive activities, provided the funds were channelled into projects with measurable economic and social benefits.

He, however, stressed the need for transparency, accountability and effective monitoring to ensure that the loans deliver value and do not become an additional burden on the country.

The proposed investments are expected to cover transportation, healthcare, agriculture, education, social protection and energy.

In transportation, the government projects improved connectivity through modern highways, metro rail and other transport infrastructure to facilitate the movement of people and goods.

The health component is expected to support the construction, rehabilitation and equipping of hospitals and other healthcare facilities, while agricultural investments are targeted at strengthening local food production, improving food security and creating employment opportunities across the agricultural value chain.

The education component is expected to support better schools, skills development and opportunities for young people, while the social protection programme will provide support for vulnerable groups.

The energy component is also expected to improve electricity supply through investments in power and energy infrastructure for households, businesses and industries.

The Federal Ministry of Finance said the proposed borrowing was intended to support infrastructure, create jobs, expand access to essential services and build a more inclusive and prosperous economy.