Presidency Defends Borrowing Strategy as Crucial Tool for Economic Growth

The Presidency has defended the Federal Government’s continued reliance on borrowing, describing it as a vital mechanism for stimulating economic development and executing large-scale infrastructure projects.

Speaking at a media engagement in Lagos, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, clarified that borrowing, when managed prudently, should not attract negative perception.

“There is nothing inherently wrong with borrowing,” Onanuga stated. “Even advanced economies like the United States and the United Kingdom borrow beyond their GDP. What truly matters is how the borrowed funds are deployed.”

The media briefing, which featured top presidential aides, was aimed at shedding light on the Tinubu administration’s economic milestones and outlining its forward-looking agenda.

Onanuga’s comments come shortly after President Bola Tinubu forwarded a fresh loan request of N34.15 trillion to the National Assembly, seeking approval for a mix of external and domestic borrowing.

Also addressing journalists, the Special Adviser to the President on Public Communication, Sunday Dare, underscored the importance of borrowing for transformative infrastructure development.

“You cannot construct major highways from Lagos to Calabar or from Sokoto to Bida without external funding,” Dare said. “These kinds of projects have the potential to rejuvenate entire regions and catalyze economic activity.”