The Presidency has defended its borrowing strategy as a necessary tool for economic development, insisting that borrowing, when used judiciously, is not a sin.
The clarification was made during a presidential media interaction held in Lagos, where top presidential aides addressed the media on the administration’s economic performance and future outlook.
Last week, President Bola Tinubu sent a request to the National Assembly seeking approval for additional external and domestic loans totalling N34.15 trillion.
However, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, while responding to questions about Nigeria’s debt profile, said: “It is not a sin to borrow. Even developed nations like the United States of America, USA and the United Kingdom, UK, borrow beyond their GDP. The issue is not borrowing; it is what you do with the borrowed funds.
“We are a poor country with a large population. We must stop deceiving ourselves, Nigeria’s budget is smaller than that of South Africa. We have to be realistic about what we can fund without borrowing.”
He explained that the Bola Tinubu-led administration has made visible gains across macroeconomic reforms and inclusive initiatives, while managing inherited economic constraints.
Speaking on the administration’s economic strides despite initial hurdles, Onanuga said: “We acknowledge that the first year of this administration was turbulent. We faced serious challenges, including inflation, forex instability, and legacy issues that were beyond our immediate control.
“Today, Nigeria’s macroeconomic indicators have improved significantly. This has not gone unnoticed; global institutions like the World Bank and International Monetary Fund, 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 currently stand at $21 billion, up significantly from previous lows. 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.”
Citing PPPs and innovative financing tools such as Infraco, tax credits and matching funds with state governments to finance critical road and housing projects, the Presidency highlighted ongoing interventions aimed at economic inclusion.
He said: “Over 600,000 students have benefited from the student loan scheme under NELFUND, among others.
“We are laying the groundwork for Nigeria’s industrial base through technical education and financial access.”
On steps the adminsitration is taking to cushion hardship and stabilize prices, Onanuga said: “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.
“We have also pushed for the 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 savings on fuel.
“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.
“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 an exploding population. The truth is, we must recalibrate our expectations and begin to manage our ambitions more realistically.”
Also speaking, the Special Adviser to the President on Public Communication, Mr. Sunday Dare, said: “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 is not debt; it is waste. With proper utilization, borrowing is a tool for national transformation.”
VANGUARD
