Tinubu and Nigeria's Loans
The Presidency has stirred fresh controversy after Special Adviser to the President on Information and Strategy, Bayo Onanuga, declared that Nigeria is still creditworthy and can borrow even more to finance critical infrastructure projects.
Onanuga’s statement comes amid growing public concern over the Tinubu administration’s aggressive borrowing, especially following President Bola Tinubu’s recent request for a huge $21.5 billion external loan and other domestic borrowing plans.
Defending the government’s debt strategy, Onanuga insisted that borrowing is not a taboo, stressing that virtually all developed nations borrow to develop their economies. He argued that the alarm being raised by critics is unwarranted and symptomatic of economic illiteracy.
“Nigeria is credit worthy and can still take more loans to finance infrastructure,” Onanuga stated.
He emphasised that the loans being taken are not for consumption but for productive projects that will grow the economy and generate revenue for repayment.
This position aligns with President Tinubu’s earlier assertion that “borrowing is not leprosy,” made while defending his administration’s fiscal policy.
The President had argued that strategic borrowing, when properly utilised, remains a standard tool for national development.
However, critics, including opposition figures like Peter Obi, have slammed the government’s borrowing spree, warning that the rising debt burden, coupled with huge debt servicing costs (projected at over $11.6 billion in 2026), could push the country into deeper economic distress.
As the debate rages on, many Nigerians are asking: Is the government’s confidence in borrowing justified, or is the country heading toward a dangerous debt trap ?
The Presidency maintains that with improved revenue generation and disciplined spending, Nigeria can comfortably service its debts while continuing to borrow responsibly for development.
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