The Presidency has moved to calm growing public fears over Nigeria’s rising debt profile, insisting that the country is not over-borrowing but, in fact, “under-borrowing.”
Speaking during a Channels Television interview on Tuesday, President Bola Tinubu’s Special Adviser on Economic Matters, Tope Fasua, argued that despite concerns, Nigeria’s debt-to-GDP ratio remains at 39 percent — well below international thresholds. He maintained that this figure shows the nation is in a healthy borrowing position compared to many other economies.
Fasua explained that states are already meeting their debt obligations and that the federal government has significantly improved debt management since Tinubu assumed office.
According to him, the bulk of borrowings are directed at critical developmental projects, not waste or embezzlement.
Debt Situation Under Control — Fasua
“At 39 per cent of GDP, Nigeria is actually under-borrowing,” Fasua stated.
He added that debt servicing costs have dropped sharply compared to previous years. “The last data I got last month was 64 per cent lower. In 2022, there was a point when our debt was as high as 120 per cent.
We used all our revenues to service debts, and we had to borrow 20 per cent extra just to service that same debt. So currently, our debt management is not so bad. I think we are doing a great job.”
According to him, states have managed to pay down about 42 percent of their debts between 2023 and 2024, further strengthening the case that Nigeria’s debt is sustainable.
Borrowing Is For Development, Not Waste
Defending the government’s approach, Fasua likened the economy to a company that must sometimes take on loans in order to expand.
“A company that is thriving thinks about how to pay down debt. We service debts… We pay some and take new ones because we are growing and want to expand our horizon in the global market,” he explained.
Also Read: INEC Releases Fresh Ad-Hoc Staff Vacancies: See Details Eligibility and Application Process
He emphasised that loans are being channeled into infrastructure projects such as road construction and maintenance, which are vital to reducing multidimensional poverty in Nigeria.
Open to Criticism
Despite his firm stance, the presidential aide acknowledged that the government is not above scrutiny.
“Of course, I welcome criticisms in terms of looking at what our priorities are, what kind of debts we should be taking, what kind of interest rates to look at, who to take the loans from, how we are managing the debts, and how we can ensure that the money is actually going into what it is meant for,” Fasua noted.
Nigeria’s Debt Profile
According to the Debt Management Office (DMO) and National Bureau of Statistics (NBS), Nigeria’s external debt stood at approximately $45.97 billion (₦70.63 trillion) as of Q1 2025, representing a 26.07 percent increase from the same period in 2024. The rise was linked to fresh loans and the depreciation of the naira.
Fasua argued that Nigeria faces an annual infrastructural gap worth over $3 trillion, making borrowing inevitable. He further claimed that investments in infrastructure have already lifted an estimated 120 million Nigerians out of multidimensional poverty.
