The Presidency has come out to defend its borrowing strategy, describing it as a key tool for economic development. FG recently insisted that borrowing, when channelled the right way, is not a bad thing.
Speaking during a presidential media interaction held in Lagos, where top presidential aides addressed the media on the administration’s economic performance and future outlook, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, said that it is never a sin to borrow, as long as you do the right thing with the borrowed funds.
According to him, Nigeria is a poor country with a large population, therefore, it is necessary to seek external help with funding to ease our challenges as a nation.
He maintained that Nigeria’s borrowing of funds is never as bad as people paint it because even developed countries like the USA and the UK go as far as borrowing beyond their GDP.
“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 said.
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He further noted that the Bola Tinubu-led government has made clear progress with macroeconomic reforms and inclusive initiatives, and the President managed to make things work despite inheriting a lot of economic constraints.
Bayo concluded by saying that while he agrees that Tinubu’s 1st year was very challenging for the people, Nigeria’s macroeconomic indicators have improved tremendously since then.
“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,” he added.
