The Presidency has replied to the criticism of the Tinubu administration’s borrowing practices, with a top aide claiming Nigeria’s debt profile compares favorably to major economies like that of the United States.
Sunday Dare, Special Adviser to the President on Media and Communications, defended the government’s approach during a Channels TV interview from 16:22. “The debate about excessive borrowing is still ongoing, but borrowing is a legitimate instrument for growth and development,” he stated.
The presidential aide drew comparisons with the United States to justify Nigeria’s debt levels. “Look at global statistics. America is $38 trillion in debt and it’s still growing. How much debt are we in? Nigeria is at $92 billion debt,” Dare argued.
He claimed the current administration has actually reduced the country’s debt burden. “It dropped from what we inherited, we inherited $140-billion. We’re at $92 billion today,” the adviser stated.
When questioned about how borrowed funds are being utilized, Dare emphasized infrastructure development. “It was used for financing capital projects. We used the subsidy money and borrowing, we used both. Because some of these projects are dollar-denominated, some are naira-denominated, and this borrowing is not excessive,” he explained.
The presidential aide provided regional comparisons to support his argument about Nigeria’s debt sustainability. “When you look at the debt-to-GDP ratio of Nigeria, we’re at sub-41%. Then you look at that of Ghana: 90% debt-to-GDP. South Africa is 70%,” Dare noted.
He stressed the productive use of borrowed funds. “I think what’s important is that the money that’s being borrowed is being used for visible projects, capital projects,” the adviser added.
He also addressed recent controversy involving House Speaker Tajudeen Abbas’s comments about Nigeria’s debt situation. He stated that Abbas “has clarified his statement on the number of loans that Nigeria is acquiring and the backlog of the debts.”
According to the presidential aide, the Speaker clarified “that his words were misinterpreted by the media to create a tension between the executive and the legislature.” See, More, Here>>>>
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