Nigeria Still Creditworthy, Can Borrow More for Infrastructure — Onanuga

Presidential spokesman Bayo Onanuga has defended the Federal Government’s borrowing policy, insisting that Nigeria remains financially creditworthy and still has room to obtain more loans for infrastructure development.

Onanuga made the remarks on Tuesday in a post shared on his X platform amid growing public criticism over Nigeria’s rising debt profile and concerns about the long-term sustainability of government borrowing.

According to the presidential aide, Nigeria’s current debt situation is still moderate when compared with several African countries with larger debt burdens, including Egypt, South Africa and Senegal.

“Nigeria has not over borrowed compared to countries like Egypt, South Africa and Senegal. Nigeria is creditworthy and can still take more loans to finance infrastructure,” Onanuga stated.

His comments come amid increasing debate over the Federal Government’s reliance on domestic and external borrowing to fund major projects, support budget deficits and stabilise the economy following subsidy removal and foreign exchange reforms introduced by President Bola Tinubu’s administration.

Critics of the government’s borrowing plans have argued that Nigeria’s debt servicing costs are already consuming a significant portion of national revenue, raising fears about fiscal sustainability and future economic pressure on citizens.

However, Onanuga dismissed the criticisms as exaggerated and based on a poor understanding of economic realities.

“The unwarranted alarm against loans is symptomatic of economic and financial ignorance,” he added.

The presidency has repeatedly maintained that borrowing remains necessary to finance infrastructure projects capable of stimulating economic growth, improving transportation networks and supporting long-term national development.

The government has also argued that many developed and emerging economies rely on debt financing to expand infrastructure and public services, provided the loans are managed responsibly and channelled into productive sectors.

Nigeria’s debt profile has remained a major public issue in recent years, especially amid rising inflation, currency pressures and concerns about the cost of governance.