The Presidency has defended its growing loan requests, stating that borrowing is not a crime if funds are used wisely. Presidential aides made this clear during a media briefing in Lagos, highlighting the administration’s achievements and economic plans.
President Bola Tinubu recently asked the National Assembly to approve a new loan package worth ₦34.15 trillion. This includes both domestic and external borrowing.
Responding to questions on Nigeria’s rising debt, Special Adviser on Information and Strategy, Bayo Onanuga, said borrowing is a global practice. “Even developed countries like the US and UK borrow beyond their GDP. What matters is how the funds are used,” he explained.
Onanuga stressed that Nigeria’s revenue is low compared to its population size and needs. “We must be realistic. Our budget is smaller than South Africa’s,” he added.
He noted that the economy has started to recover from initial setbacks such as high inflation and forex instability. According to him, key indicators are improving, the stock market has more than doubled since 2023, foreign reserves now stand at $21 billion and debt servicing has dropped to under 60% of revenue, down from 97%.
The Presidency also pointed to positive feedback from international bodies like the World Bank and IMF as signs that the economy is on the right path.
On social programs, Onanuga said over 600,000 students have benefitted from the federal student loan scheme, while other initiatives like tax credits, PPPs and road projects are ongoing to boost development and job creation.
To reduce living costs, he listed efforts such as bulk drug purchases, farming support and the push for Compressed Natural Gas (CNG) in transport. “Some drivers now earn more daily due to lower fuel costs,” he said.
He also revealed that the President approved a six-month waiver on rice import duties to bring down food prices and stop hoarding.
“We’re not as rich as people think,” Onanuga said. “We need to manage our ambitions wisely.”
Also speaking, Special Adviser on Public Communication, Sunday Dare, noted that big projects like highways across Nigeria can’t be done without borrowing. “The real issue is not the debt, it’s waste. Properly used, loans can transform the nation,” he concluded.