Nigeria Still Has Room To Borrow, Onanuga Defends Tinubu Government’s Loan Strategy

Presidential aide Bayo Onanuga has defended Nigeria’s borrowing level, insisting the country is not excessively indebted compared to several other economies.

Onanuga made the remarks while reacting to discussions on X concerning Nigeria’s rising public debt profile.

According to him, Nigeria remains financially stable and creditworthy enough to continue accessing loans, particularly for infrastructure development.

He dismissed criticisms surrounding government borrowing, describing the concerns as exaggerated and economically uninformed.

The debate began after an X user identified as Akinwumi compared Nigeria’s debt-to-GDP ratio with those of countries like Egypt and South Africa.

According to the post:

• Egypt’s debt reportedly exceeds $400 billion with a GDP around $390 billion, placing its debt-to-GDP ratio above 100 percent.
• South Africa’s debt was estimated at about $580 billion against a GDP of roughly $420 billion, translating to about 135 percent debt-to-GDP ratio.
• Nigeria’s public debt was estimated at about $110 billion with a GDP around $340 billion, representing roughly 35 percent debt-to-GDP ratio.

The comparison triggered widespread debate online over whether Nigeria’s borrowing level should truly be considered alarming.

Reacting to the conversation, Onanuga argued that Nigeria’s debt burden remains relatively lower than many African economies.

“Nigeria has not over borrowed compared to countries like Egypt, South Africa and West African country of Senegal,” he wrote.

The presidential aide maintained that the country still has room to secure more loans to finance infrastructure and developmental projects.

“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 added.

The comments have since generated mixed reactions online, with some Nigerians supporting the government’s position while others continue expressing concerns over rising debt servicing costs and the long-term economic implications of increased borrowing.