The Presidency has defended its borrowing framework as a strategic necessity for national development following President Bola Tinubu’s recent request to the National Assembly for approval of additional loans totaling N34.15 trillion in external and domestic financing.
Addressing journalists during a presidential media interaction held in Lagos, Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, dismissed criticisms surrounding Nigeria’s debt profile, stating that borrowing, when properly deployed, remains a globally accepted economic tool.
“It is not a sin to borrow. Even developed nations like the United States and the United Kingdom borrow beyond their GDP,” Onanuga said. “The issue is not borrowing itself but what you do with the borrowed funds. Nigeria’s budget is smaller than South Africa’s despite having a larger population. We must stop deceiving ourselves — borrowing is necessary to bridge our development gaps.”
President Tinubu’s administration, now in its second year, has faced persistent scrutiny over economic reforms that include fuel subsidy removal, foreign exchange unification and fiscal restructuring. Onanuga noted that the administration inherited deep-rooted macroeconomic distortions but has made visible gains through structural reforms.
“Despite a turbulent first year marked by inflation and forex instability, key macro indicators have improved,” he said. “Nigeria’s All Share Index has more than doubled, rising from 50,000 in 2023 to over 110,000 in 2025, while foreign reserves have recovered to $21 billion, up from historic lows.”
He added that debt servicing costs, which previously consumed 97 percent of government revenue, have now dropped below 60 percent, freeing up fiscal space for critical infrastructure and social investments.
The Presidency also highlighted innovative financing approaches being adopted, including public-private partnerships (PPPs), tax credit schemes, Infraco funding, and state-level matching funds for road and housing projects.
“We are not borrowing to fund consumption. We are borrowing to build infrastructure that catalyzes growth. Over 600,000 students have accessed education loans under the NELFUND scheme. Roads, industrial hubs, and energy access are being expanded. These are direct outcomes of prudent financing,” Onanuga said.
On economic inclusion, the Presidential aide cited interventions such as bulk drug procurement under the National Medical Pool, support for local agriculture, and incentives for transitioning to Compressed Natural Gas (CNG) in the transport sector.
“Some ride-hailing drivers who used to make N10,000 a week now earn that daily, purely from savings after switching to CNG,” he explained. “The recent six-month waiver on rice importation is a targeted measure to lower food prices and counter hoarding.”
Special Adviser to the President on Public Communication, Mr. Sunday Dare, also weighed in, stating that large-scale infrastructure projects cannot be funded without external capital.
“We cannot build highways from Lagos to Calabar or from Sokoto to Bida without borrowing. Such projects stimulate regional economies and generate multiplier effects. The real issue is not debt but mismanagement. With discipline and transparency, borrowing becomes a tool for national transformation,” Dare said.
The administration reaffirmed its commitment to long-term economic stability and sustainable growth. While acknowledging current hardship, the Presidency stressed the importance of adjusting public expectations, given Nigeria’s resource constraints and demographic pressures.
“We must be realistic about what we can fund without support. Nigeria is not as rich as many assume. Our reforms are painful but necessary, and the benefits will become more visible over time,” Onanuga added.
As the National Assembly prepares to deliberate on the N34.15 trillion debt request, economic observers will continue to track borrowing efficiency, infrastructure deployment, and fiscal discipline as indicators of the government’s debt management credibility.
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