Onanuga: Tinubu hasn’t over-borrowed, criticism of loans driven by ‘economic ignorance’
Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, has defended the federal government’s borrowing policy, dismissing concerns over Nigeria’s growing debt profile.
Reacting to a post on X by public analyst Akinwumi (@Big_marvis), Onanuga argued that public criticism of the country’s borrowing is rooted in poor understanding of economic and financial realities.
The analyst had compared Nigeria’s debt profile with those of Egypt and South Africa, noting that while Egypt’s debt stands at over $400 billion with a debt-to-GDP ratio exceeding 100 percent and South Africa’s debt is about $580 billion with a ratio of roughly 135 percent, Nigeria’s public debt is estimated at about $110 billion against a GDP of around $340 billion, translating to about 35 percent debt-to-GDP ratio.
Responding on Tuesday, Onanuga said Nigeria remains within a manageable borrowing threshold compared to countries such as Egypt, South Africa and Senegal.
According to him, the country is still creditworthy and has room to secure more loans to finance infrastructure development, insisting that widespread alarm over the issue is misplaced.
His remarks come amid increasing public concern over the country’s rising debt burden and the growing proportion of government revenue spent on debt servicing.
Earlier, on April 29, President Tinubu defended his administration’s borrowing approach, saying loans should not be viewed negatively if they are necessary for national development.
Speaking during a meeting with Plateau leaders at the State House, Tinubu said the government would continue to borrow when needed, stressing that the focus should be on repayment capacity rather than fear of debt.
Since the beginning of the year, the administration has sought approval from the National Assembly for multiple loan requests.
On Tuesday, the House of Representatives approved an additional $516.3 million external loan requested by the president to support sections of the Sokoto–Badagry superhighway project.
Earlier, on March 31, Tinubu requested legislative approval for about $6 billion in external borrowing, including a proposed $5 billion structured financing arrangement from the First Abu Dhabi Bank in the United Arab Emirates.
Meanwhile, the Debt Management Office (DMO) disclosed on April 15 that Nigeria’s total public debt rose to N159.27 trillion at the end of the fourth quarter of 2025, up from N153.29 trillion recorded in the previous quarter and N144.67 trillion within the same period in 2024.
