An economist has urged President Bola Tinubu’s administration to adopt a more deliberate and results-oriented approach to borrowing, emphasizing that any new debt must be tied directly to revenue-generating initiatives that deliver tangible benefits to Nigerians.
Speaking on Channels Television’s Business Morning on Thursday, the financial expert stressed the importance of aligning borrowing with national development goals. “We need to be very intentional, very strategic, and focus on borrowing for projects that will stimulate revenue and create real impact—so citizens can begin to experience the true dividends of reform and democracy,” he said.
According to the Debt Management Office, Nigeria’s external debt stood at $45 billion as of December 31, 2024. In just 16 months, the Tinubu administration reportedly secured $6.45 billion in loans from the World Bank alone, based on official records.
Analyst Bismarck Rewane echoed concerns over the country’s debt trajectory, cautioning that while foreign currency is essential for development, it must be acquired through either strategic investment or borrowing—not indiscriminate loan accumulation. “Nigeria needs dollars, and those dollars must either come through voluntary capital inflows or carefully considered borrowing,” Rewane noted.
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“If we were anticipating to borrow because we thought interest rates were going to come down and the debt service burden would not be as hard as originally as expected.
“Now, the drop in interest rate is going to be delayed a little bit longer toward the end of the year or next year which means that Nigeria would have to raise money at a higher rate than anticipated.
“If that be the case, we have to be more efficient in the way we use our money. What are we borrowing for? Are those budgets going to generate enough revenue to service those debts?
The speaker noted that those were the key elements, emphasizing their importance by pointing out that approximately 740 days had passed since the administration assumed office and that time was running out.