Nigeria Is A Poor Nation With A Large Population, Borrowing Has To Happen – FG

Bola Tinubu

The Presidency has come out to defend its borrowing strategy.

FG recently said that borrowing is a key tool for economic development that should not be criticized.

Speaking during a presidential media interaction held in Lagos, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, said that it is never a sin to borrow, as long as you do the right thing with the borrowed funds.

He added that Nigeria is a poor nation with a large population, therefore, it is necessary to seek external help with funding to ease the country’s challenges.

His words, “It is not a sin to borrow. Even developed nations like the United States of America, USA and the United Kingdom, UK, borrow beyond their GDP. The issue is not borrowing; it is what you do with the borrowed funds.

We are a poor country with a large population. We must stop deceiving ourselves, Nigeria’s budget is smaller than that of South Africa. We have to be realistic about what we can fund without borrowing.

We acknowledge that the first year of this administration was turbulent. We faced serious challenges, including inflation, forex instability, and legacy issues that were beyond our immediate control.

Today, Nigeria’s macroeconomic indicators have improved significantly. This has not gone unnoticed; global institutions like the World Bank and International Monetary Fund, IMF, have commended our efforts and direction.

Nigeria’s All Share Index has more than doubled from 50,000 in 2023 to over 110,000 in 2025.

The country’s foreign reserves currently stand at $21 billion, up significantly from previous lows. Nigeria’s debt servicing has dropped from 97 percent of government revenue to under 60 percent, freeing up fiscal space for investment in social services.”

WOW.