The Presidency has defended its borrowing strategy, describing it as a necessary tool for national development amid growing concerns over the country’s rising debt profile.
During a presidential media briefing in Lagos, top aides to President Bola Tinubu addressed questions regarding the administration’s economic direction, following a recent loan request submitted to the National Assembly seeking approval for N34.15 trillion in new external and domestic borrowings.
Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, downplayed criticism of the debt plan, arguing that borrowing is not inherently problematic.
“It is not a sin to borrow. Even developed countries like the United States and the United Kingdom borrow beyond their GDP,” Onanuga stated. “The issue is not the borrowing itself, but how the funds are used.”
Onanuga also pointed to Nigeria’s limited fiscal capacity, noting that the country’s budget remains smaller than that of South Africa despite its larger population.
“We are a poor country with a large population. We must stop deceiving ourselves,” he said. “We have to be realistic about what we can fund without borrowing.”
The administration maintains that the proposed loans are critical to bridging funding gaps and supporting key infrastructure and development projects.
