Presidency Defends Borrowing, Says Nigeria Requires $100 Billion Annually For Proper Infrastructure

By Ayodele Oni 

The Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has defended the administration’s fiscal strategy, explaining that the government’s borrowing is intentionally directed toward critical infrastructure development.

He was responding to comments made by the Emir of Kano, Muhammadu Sanusi, regarding the Federal Government’s borrowing pattern under the current administration

Sanusi had criticised the government’s continued reliance on borrowing despite the removal of fuel subsidy, describing the situation as economically inconsistent. 

He argued that while subsidy removal was expected to ease fiscal pressure and reduce the need for borrowing, the anticipated financial relief has not translated into a significant reduction in government debt dependence. 

He also questioned the justification for continued spending on supporting foreign refineries, noting that Nigeria, as an oil-producing nation, should be advancing local refining capacity instead.

Reacting in a statement shared via his official handle, Bwala defended the administration’s fiscal strategy, explaining that the government’s borrowing is intentionally directed toward critical infrastructure development. 

He stated that Nigeria requires an estimated $30 billion to $100 billion annually to bridge its infrastructure deficit, adding that current revenue levels are insufficient to meet this demand without external financing. 

He wrote, “Your Royal Highness, we are simply borrowing to invest in the most important areas of our economy, with infrastructure being the most crucial of them all. 

“The lack of proper infrastructure needs at least $30 billion to $100 billion every year, but what we’re currently spending is not enough, so we have to borrow money.”

Bwala maintained that the objective of the borrowing is to stimulate long-term economic growth through strategic investment in key sectors, particularly infrastructure. He further referenced emerging improvements in domestic refining capacity and petroleum exports, describing them as positive indicators for the economy.