President Bola Tinubu has defended the borrowing move by his administration, adding that the country did not have enough to invest in infrastructure, hence, the need for borrowing.
Tinubu made the comment while having the first media chat on Monday, December 23, saying that borrowing was never a crime.
President Tinubu’s 2025 budget proposal has sparked concerns about the country’s growing debt burden. The proposed N49.7 trillion budget has a deficit of N13.08 trillion, which will be funded through borrowing. This move has raised eyebrows, considering Nigeria’s already substantial debt profile of N134 trillion.
The budget allocates N15.81 trillion for debt servicing, accounting for 33% of the total budget. This substantial allocation has led to concerns about the sustainability of the country’s fiscal policies. Experts argue that the government’s reliance on borrowing will further exacerbate the nation’s debt crisis, making it challenging to achieve economic growth and development.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, acknowledges that borrowing is essential for economic growth but emphasizes the need for prudent management of borrowed funds. He suggests that the government should focus on investing in critical sectors that will stimulate economic growth and reduce the country’s reliance on oil revenue.
As the debate surrounding the 2025 budget continues, it is clear that the government’s borrowing plans will be closely scrutinized. With Nigeria’s debt profile already a significant concern, the government must demonstrate a clear plan for managing borrowed funds and achieving sustainable economic growth.
