Tinubu Presidency Defends ₦34.15 Trillion Loan Request, Says “It Is Not a Sin to Borrow”
In response to growing criticism over Nigeria’s rising debt profile, the Presidency has firmly defended its borrowing policy, arguing that taking loans is not inherently wrong when done with responsibility and transparency. This defense comes just days after President Bola Ahmed Tinubu submitted a fresh request to the National Assembly seeking approval for new external and domestic loans amounting to ₦34.15 trillion.
At a recent media briefing in Lagos, presidential aides provided insight into the Tinubu administration’s economic strategy, tackling concerns about debt accumulation, national revenue, and development financing. They emphasized that the focus should not be on whether the government is borrowing, but how those borrowed funds are being utilized to improve the country's socio-economic landscape.
“It Is Not a Sin to Borrow” – Presidency Responds to Critics
Speaking at the press briefing, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, made it clear that borrowing is a necessary tool for development—especially for nations with limited revenue and a growing list of needs.
“It is not a sin to borrow. Even developed nations like the United States and the United Kingdom borrow beyond their GDP. The real issue is not the act of borrowing but how the borrowed funds are used.”
This statement is aimed at calming fears among Nigerians and international observers who are worried about the sustainability of Nigeria’s debt servicing. By referencing countries like the United States and the United Kingdom—whose economies also depend heavily on borrowing—Onanuga sought to place Nigeria’s situation within a global context.
Why Nigeria Borrows: Context from the Presidency
Onanuga went further to explain the realities Nigeria faces. According to him, Nigeria is a developing nation with a massive population, but a relatively small national budget compared to other African economic powers like South Africa.
“We are a poor country with a large population. Nigeria’s budget is smaller than South Africa’s. We must stop deceiving ourselves about what we can fund without borrowing.”
This brutally honest assessment is designed to remind Nigerians that despite being Africa’s most populous country, Nigeria does not generate enough revenue to meet its pressing developmental needs—including infrastructure, healthcare, education, and social welfare.
The Presidency's argument is that borrowing, if done wisely, is not only justified but essential for laying down the infrastructure that will drive economic growth and national prosperity.
Why the ₦34.15 Trillion Loan Request?
President Tinubu’s request for approval of ₦34.15 trillion in fresh loans includes a mix of both external and domestic borrowing. The administration says these funds will be used to:
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Fund capital projects
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Build and repair infrastructure
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Support economic reforms
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Improve public services like healthcare, education, and transportation
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Boost job creation and economic opportunities
The request was submitted as part of the 2024–2026 Medium-Term Expenditure Framework (MTEF) and is aligned with the administration’s broader goal of revitalizing the Nigerian economy.
Critics argue that adding more debt to Nigeria’s already high debt stock—estimated at over ₦97 trillion as of early 2024—could strain the economy further. However, the Presidency maintains that strategic borrowing, with a clear repayment plan and targeted investments, is far better than allowing national infrastructure to deteriorate or leaving the economy underfunded.
Nigeria’s Debt in Global Context: Is It Really Too High?
To support its position, the Presidency compares Nigeria’s debt strategy with that of global economic powers. Countries like the United States, Japan, and the UK all run deficits and take on debt to fund government operations. In fact, the U.S. debt-to-GDP ratio exceeds 100%, and yet, its economy remains one of the most robust in the world.
In contrast, Nigeria’s debt-to-GDP ratio is still below 50%, which many economists consider a manageable threshold for developing economies. What is worrying, however, is Nigeria’s debt service-to-revenue ratio, which means that a significant portion of the money Nigeria earns goes into paying off loans rather than funding new projects.
This, the Presidency admits, is a concern—but not one without a solution. With better tax collection, anti-corruption efforts, and increased foreign investment, the government believes it can balance borrowing with revenue growth.
Making Borrowing Work: Transparency and Accountability Are Key
The Tinubu administration insists that all loans will be used responsibly and transparently. The Presidency says that unlike previous regimes where loans may have been mismanaged, the current government is committed to ensuring that every kobo borrowed delivers real value to Nigerians.
The administration also promised regular updates to the public and National Assembly on how the loans are being used, including the publication of progress reports on funded projects.
This pledge aligns with President Tinubu’s campaign promise to run a transparent and accountable government. Already, the government has begun publishing data on the Debt Management Office (DMO) website, giving the public access to up-to-date information about Nigeria’s debt stock and how funds are being used.
What Nigerians Are Saying: Divided Reactions
Public opinion remains divided. Many Nigerians, struggling with the high cost of living, inflation, and unemployment, are skeptical of the government’s decision to take on more debt.
Social media platforms like X (formerly Twitter), Facebook, and Instagram are filled with mixed reactions. Some citizens argue that without visible improvement in infrastructure and living standards, more borrowing will only deepen the economic crisis.
Others, however, believe that if the funds are channeled into productive investments, they can stimulate economic growth, create jobs, and reduce poverty in the long run.
The Way Forward: Can Borrowing Solve Nigeria’s Economic Crisis?
Whether borrowing becomes a curse or a blessing for Nigeria depends entirely on execution. If the Tinubu administration can ensure that loans are used for capital projects with clear returns—such as roads, railways, power plants, and digital infrastructure—the long-term benefits could outweigh the immediate risks.
In the short term, however, the government must also work to boost non-oil revenues, curb corruption, and manage public spending more efficiently. Without these complementary reforms, no amount of borrowing will be enough to rescue the economy.
Conclusion: Responsible Borrowing, Not Reckless Spending
The Tinubu administration’s defense of its borrowing strategy hinges on a single, powerful idea: borrowing is not a sin—but wasting borrowed money is.
“It is not a sin to borrow. Even developed nations like the United States and the United Kingdom borrow beyond their GDP. The real issue is not the act of borrowing but how the borrowed funds are used.” — Bayo Onanuga
For Nigeria to succeed, it must walk a tightrope—balancing the urgent need for infrastructure and social investment with the equally important need for fiscal discipline and public accountability.
As the National Assembly debates the loan request, all eyes are now on the Presidency to back up its words with action, and ensure that Nigeria’s borrowing strategy truly delivers on its promise of national development and economic renewal.
