Presidency Declares Nigeria Is “Under-Borrowing” Amid Debt Concerns
In a
striking departure from prevailing public sentiment, the Nigerian presidency
has declared that the country is “under-borrowing,” challenging widespread
concerns about the nation’s rising debt profile.
This assertion was made by Dr. Tope Fasua, Special Adviser to President Bola Tinubu on Economic Matters, during a televised interview on Channels Television’s “The Morning Brief” on September 16, 2025.
Fasua
explained that Nigeria’s debt-to-GDP ratio currently stands at 39 percent, a
figure he described as relatively modest compared to global benchmarks. He
emphasized that the country’s debt servicing burden has significantly eased,
with recent data showing a 64 percent reduction compared to previous years.
Fasua contrasted this with the situation in 2022, when Nigeria’s debt servicing
demands reached a staggering 120 percent of revenue, forcing the government to borrow
an additional 20 percent just to meet its obligations.
According
to Fasua, the current administration has made notable strides in debt
management since assuming office in 2023, reducing overall borrowing by 39
percent. He argued that borrowing is essential to bridge Nigeria’s vast
infrastructure gap, which he estimated at over $3 trillion annually. Fasua
likened the country’s fiscal strategy to that of a thriving conglomerate,
suggesting that strategic borrowing is necessary for expansion and long-term
productivity.
Despite
acknowledging a year-on-year increase in external debt, rising to approximately
$45.97 billion (₦70.63 trillion) as of Q1 2025, largely due to new loans and
naira depreciation, Fasua maintained that Nigeria’s borrowing practices remain
within safe limits. He welcomed constructive criticism and encouraged public
discourse on the types of loans being acquired, interest rates, and the
transparency of debt utilization.
The
presidency’s position stands in contrast to warnings from other quarters,
including Speaker of the House of Representatives Abbas Tajudeen, who recently
described Nigeria’s debt as “alarming” and called for stronger oversight.
Nonetheless,
Fasua’s remarks reflect the administration’s confidence in its economic
strategy and its belief that borrowing, when managed prudently, can be a tool
for national development
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