Tension Over Debt: Presidency Defends Borrowing Policy After Sanusi Remarks

Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has responded to comments made by the Emir of Kano, Muhammadu Sanusi, who criticised the federal government’s continued reliance on borrowing despite the removal of fuel subsidy.

Sanusi had expressed concern that although the subsidy has been removed, the expected fiscal relief has not translated into reduced borrowing, describing the situation as economically inconsistent. He also questioned Nigeria’s continued financial support for foreign refineries despite being a major oil-producing nation.

In a statement posted on his X handle, Bwala defended the government’s position, explaining that the borrowing is aimed at financing critical infrastructure projects needed to support economic growth. He noted that Nigeria requires between $30 billion and $100 billion annually to bridge its infrastructure gap, adding that current revenue levels are insufficient to meet this demand without external funding.

Bwala maintained that the administration is focused on strategic investment in key sectors, particularly infrastructure, which he described as central to economic development. He also referenced improvements in local refining and exports, saying these developments are positive indicators for the economy.

According to him, the government’s borrowing strategy is designed to address urgent national infrastructure needs, which cannot be fully funded through existing revenue streams alone.