Nigeria Is Under-Borrowing,” Presidency Tells Nigerians

The Presidency has sparked conversations by claiming that Nigeria is “not borrowing enough” to meet its developmental needs. According to Dr. Tope Fasua, Special Adviser to the Presidency on Economic Matters, the country’s debt, currently at 39% of GDP, is well below what is considered excessive. He argued that borrowing is essential to bridge Nigeria’s massive infrastructure gap, estimated at $3 trillion annually.

Dr. Fasua explained that past administrations had higher debt servicing rates—peaking at 120% of revenue in 2022—but under the current government, debt servicing now consumes less than 64% of revenue. He stressed that loans are being used for critical projects like roads, power grids, and irrigation systems, all aimed at reducing multidimensional poverty and boosting economic growth.

Comparing Nigeria to a thriving company, Fasua noted that borrowing responsibly to fund productive ventures is a smart strategy. He reassured Nigerians that the government is focused on managing debts effectively and ensuring funds are used for their intended purposes. While critics remain skeptical about rising debt levels, Fasua welcomed constructive feedback on how to improve debt management and prioritization.

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