To repay Nigeria’s debt, the Federal Government plans to adopt a self-financing infrastructure model. Major national projects, such as ports, roads, and solar plants, will be concessioned to private operators.
The government will repay Nigeria’s Debt related to these projects with these proceeds. Finance Minister Wale Edun shared this information during an interview on Arise News.
In his words, Edun explained that after the completion of these projects, they will hand them over to private players. For example, this administration may decide to build a one-gigawatt solar project in the north with government funds. After completion, it will be concessioned, and tariffs paid by users will help repay the debt.
Speaking further, he clarified that infrastructure projects are the main reason for Nigeria’s Debt. According to him, government plan to paid back these loans over five to seven years.
The Minister emphasized there is no plan to borrow $25 billion within six months or one year. Instead, borrowing aligns with the Medium-Term Expenditure Framework and is project-linked.
He added that the government is focusing on projects that generate revenue and attract private investment. Examples of government’s plan include the expansion of ports and solar power projects. In his words, these infrastructure developments will generate user fees to offset loan costs.
Also, Edun said Nigeria is reducing reliance on public funds for infrastructure financing. Private sector players will take over viable projects through transparent concession agreements. This strategy aims to ease the government’s funding burden while creating jobs and economic growth.
He highlighted that Tinubu’s administration will monitor government-owned enterprises and agencies. These entities must remit their operating surpluses to support revenue growth. According to him, the goal is to boost non-oil revenue streams as part of Nigeria’s Debt management efforts.
In addition, Digital tools and automation will minimize revenue leakages. Also, the government is planning to ensuring federal government-owned enterprises pay what is due. This effort is key to increasing overall government revenue.
Edun’s explanation addresses public concerns about Nigeria’s Debt strategy and economic direction. He assured that borrowing is prudent and linked to tangible projects. The approach prioritizes sustainable repayment plans based on user-generated revenue.
Meanwhile, if implemented, the concession model for infrastructure marks a shift in Nigeria’s economic policy. It allows private investors to fund and manage essential services. Therefore, this public-private partnership will likely improve efficiency and financial viability.
Revenue from concessioned projects will directly help service Nigeria’s Debt. This reduces pressure on government finances and helps maintain fiscal stability. The model will foster long-term economic benefits beyond debt repayment.
This policy shift could increase private sector participation in national development. It also aims to create more sustainable financial management practices.
Meanwhile, in another news, Akinwumi Adesina has urged African leaders to do everything to minimise the JAPA syndrome among youths in the continent.
