The Special Adviser to the President on Media and Policy Communication, Daniel Bwala, has defended the government’s decision to borrow, stating that borrowing is essential for national development, particularly in addressing Nigeria’s infrastructure deficit.
Speaking during an interview with ARISE NEWS on Tuesday, Bwala acknowledged the concerns surrounding Nigeria’s reliance on loans but argued that borrowing is justified when the funds are directed towards productive ventures. He explained that for a government to fulfil its mandate with limited resources, borrowing becomes necessary.
“Government borrows, and there’s a justification for borrowing. Before now, I didn’t care about whatever the justification was, but now I realise that for the government to be able to carry out its mandate for the people with limited resources, that’s the whole essence of the economy. If you cannot find where you have revenue or the revenue is not sufficient, then you have to borrow,” Bwala stated.
Citing economic research, Bwala pointed out that Nigeria needs to invest between $30 billion and $100 billion annually in infrastructure to bridge its deficit. Over a 30-year period, the country would require between $2 trillion and $3 trillion to meet its infrastructure needs. However, with Nigeria’s budget standing at less than $35 billion, he emphasised that borrowing is unavoidable.
He said, “There is a research, an agreement by economists that only in infrastructure alone, Nigeria needs to spend between 30-100 billion dollars annually in order to meet up with the deficit or in proper perspective, over a period of 30 years, Nigeria must spend between 2-3 trillion dollars. The budget of Nigeria is less than 35 billion dollars, so definitely you’ll see the need to borrow.”
He stressed that the critical issue is how borrowed funds are utilised, noting that the government channels loans into infrastructure development and interventions that directly impact Nigerians.
“When you borrow, what do you do with it, is what matters. The government borrows to invest in infrastructure and also in intervention in the areas where it affects the Nigerian people. So, there is a justification for borrowing.”
When questioned about the necessity of curbing government spending to lower the cost of governance and reduce borrowing—particularly on luxury expenses like a new presidential jet and the renovation of the Vice President’s residence—Bwala justified the expenditures. He argued that the purchase of a new jet is necessary for the president to effectively represent Nigeria on the global stage.
“As for the purchase of the presidential jet, it is justifiable because if the president as the chief marketer of the country will have to travel around the world, he would need to be in a better jet to be able to do that,” he explained.
