President Bola Tinubu
The Presidency has defended Nigeria’s rising debt profile, insisting that the country remains creditworthy and has not overborrowed when compared to other African nations.
Presidential media aide, Bayo Onanuga, stated this while reacting to comments comparing Nigeria’s debt situation with countries such as Egypt, South Africa and Senegal.
The remarks he reacted to argued that Egypt’s total debt is estimated at over $400 billion with a GDP of around $390 billion, placing its debt-to-GDP ratio above 100 per cent, while South Africa’s debt stands at about $580 billion against a GDP of roughly $420 billion, representing about 135 per cent debt-to-GDP.
The statement further noted that Nigeria’s total public debt is estimated at about $110 billion with a GDP of around $340 billion, translating to roughly 35 per cent debt-to-GDP.
It also argued that critics who constantly describe Nigeria as the “loan capital of the world” often oppose nearly every infrastructure and development initiative undertaken by government.
The remarks listed projects frequently criticised to include education, road construction, power projects, internet expansion, railway modernisation, airport upgrades, seaport reforms, dams, agro-processing initiatives and solar energy expansion.
According to the statement, countries that are now praised for development borrowed aggressively at different stages to finance infrastructure and economic growth.
“The difference between productive borrowing and reckless borrowing is simple: what the money is used for,” the statement read.
“If loans are used to build roads, expand electricity, improve transport, increase internet access, modernize ports, support agriculture, and attract investment, those are long-term national assets.”
The statement added that the administration of President Bola Ahmed Tinubu is focused on infrastructure capable of improving productivity and driving economic growth across the country.
It further argued that while criticism is part of democracy, opposing every government project because of politics does not help national development.
Reacting to the argument, Onanuga backed the position and maintained that Nigeria’s debt situation remains manageable.
“Nigeria has not over borrowed compared to countries like Egypt, South Africa and West African country of Senegal. Nigeria is credit worthy and can still take more loans to finance infrastructure. The unwarranted alarm against loans is symptomatic of economic and financial ignorance,” he said.
