Amid Growing Concern, Presidency Defends Borrowing Policy

The Presidency has defended Nigeria’s current debt profile, insisting that borrowing remains a legitimate instrument of economic growth and reform, not evidence of financial recklessness.

This came a day after the leadership of the National Assembly – Senate President Godwin Akpabio and House of Representatives Speaker, Tajudeen Abass, cautioned against unchecked borrowing by African leaders.

Also, a non-serving senator, Dino Melaye, has accused the federal government of excessive borrowing.
Akpabio and Abbas spoke on the issue on Monday at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC) in Abuja.
But taking up Dino on his comment yesterday, the special adviser to the President on Media and Public Communication, Sunday Dare, in a post on his official X handle, dismissed the former lawmaker’s claims as “noise, not knowledge.”

Dare said the recent jump in Nigeria’s total public debt, put at ₦149.39 trillion as of March 31, 2025, by the Debt Management Office (DMO), was largely due to naira depreciation, not fresh borrowing.

“When the currency adjusts, the naira value of existing external debt rises – whether or not new loans are taken,” he explained.

The presidential aide said Nigeria’s debt-to-GDP ratio remains between 40 and 45 percent, a moderate figure compared to South Africa’s 70 percent and Ghana’s 90 percent plus.

He says the real challenge is revenue mobilisation, not runaway borrowing.

“Borrowing is a legitimate tool for financing growth and reforms. What matters is sustainability, not soundbites. Unfortunately, Dino prefers theatrics to truth,” Dare wrote.

The presidential aide also pointed out that government revenues are improving, which strengthens Nigeria’s capacity to service obligations. “Encouragingly, revenues are improving, strengthening our capacity to service obligations,” he said.

He stressed that the Tinubu administration remains focused on implementing reforms under the Renewed Hope Agenda, which aims to expand the revenue base, sustain investments and ensure debt sustainability.

“Until Dino acquaints himself with basic economics, his commentary will remain what it has always been: entertainment, not enlightenment,” Dare added.