The Presidency has defended Nigeria's borrowing strategy, calling borrowing a necessary and useful tool for economic growth.
At a media briefing in Lagos, presidential aides addressed concerns about Nigeria's growing debt profile and highlighted the government's efforts to stabilize the economy and improve key financial indicators.
Last week, President Bola Tinubu requested the National Assembly's approval for new external and domestic loans totaling N34.15 trillion.
Responding to questions on the nation's debt, Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, stressed that borrowing itself isn't the problem.
"It is not a sin to borrow. Even developed nations like the United States and the United Kingdom borrow beyond their GDP. The issue is not borrowing; it's what you do with the borrowed funds," Onanuga said.
He explained that Nigeria's budget is small compared to countries like South Africa, making borrowing often necessary to fund national development.
"We are a poor country with a large population. We must stop deceiving ourselves; Nigeria's budget is smaller than South Africa's. We have to be realistic about what we can fund without borrowing."
Onanuga also highlighted that despite initial challenges in the administration's first year including inflation, currency instability, and inherited economic problems significant progress has been made.
Global financial bodies such as the World Bank and IMF have recognized Nigeria's improved macroeconomic indicators.
"We acknowledge that the first year of this administration was turbulent. We faced serious challenges, including inflation, forex instability, and legacy issues beyond our immediate control.
"Today, Nigeria's macroeconomic indicators have improved significantly. This hasn't gone unnoticed; global institutions like the World Bank and IMF have commended our efforts and direction.
"Nigeria's All Share Index has more than doubled from 50,000 in 2023 to over 110,000 in 2025. The country's foreign reserves now stand at $21 billion, up significantly from previous lows," he added. "Nigeria's debt servicing has dropped from 97 percent of government revenue to under 60 percent, freeing up fiscal space for investment in social services."
The Presidency also shared updates on ongoing initiatives like public-private partnerships and innovative financing models supporting projects in roads, housing, and technical education.
"We are laying the groundwork for Nigeria's industrial base through technical education and access to finance," Onanuga said, adding, "Over 600,000 students have benefited from the student loan scheme under NELFUND, among others."
Addressing concerns about the rising cost of living, Onanuga said the government is taking concrete steps to ease economic hardship.
These include bulk purchasing essential medicines, agricultural support to stabilize food prices, and encouraging compressed natural gas (CNG) use to reduce fuel costs.
"We fully understand that Nigerians are going through tough times. But the government is not sitting idly. We have rolled out specific interventions to ease the burden-from bulk procurement of essential drugs under the medical pool initiative to direct agricultural support aimed at stabilizing food prices," he said.
"We have also pushed for adoption of Compressed Natural Gas, CNG, in transportation. Today, some ride-hailing drivers who used to make N10,000 weekly now earn that daily, just from fuel savings."
He also mentioned a recent six-month waiver on rice import duties to tackle food scarcity and hoarding.
"Also, the President approved a six-month waiver on rice importation. That move was deliberate to crash food prices and break the cycle of hoarding and artificial scarcity," he said.
"We need to be honest with ourselves. Nigeria is not as rich as many people think. We are a large country with limited resources and a rapidly growing population. The truth is, we must recalibrate our expectations and manage our ambitions more realistically."
Supporting this view, Special Adviser on Public Communication, Mr. Sunday Dare, emphasized borrowing's role in building vital infrastructure like highways, which boost regional economies.
"We can't build highways from Lagos to Calabar or Sokoto to Bida without borrowing. Projects like these wake up entire regions economically. The real problem isn't debt-it's waste. With proper utilization, borrowing is a tool for national transformation," Dare said.
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