Many people worry when they hear that a country is borrowing money. But borrowing is not always a bad thing. Even rich countries like the United States and the United Kingdom borrow money to help their economies grow.
The Nigerian Presidency has explained that borrowing is fine if it is done carefully and the money is used for important projects that help the country develop. It is not just borrowing for the sake of it, but borrowing to build and improve Nigeria.
Recently, at a news briefing in Lagos, the president’s team talked about Nigeria’s economy. They also answered questions about Nigeria’s increasing debt. Last week, President Bola Tinubu asked the National Assembly to approve new loans that add up to ₦34.15 trillion. This shows the government is planning carefully to fund the country’s needs.
In response to people who criticized the borrowing, the President’s Special Adviser on Information and Strategy, Onanuga, said Nigeria has a large population but a small budget. This means the country must find real and practical ways to pay for important needs, including borrowing money when necessary.
Bayo Onanuga, stated:
“It is not a sin to borrow. Even developed nations like the United States and the United Kingdom borrow beyond their GDP. The real issue is not the act of borrowing but how the borrowed funds are used.”
In short, borrowing is not a sin or something to fear. What matters most is how the money is used. Nigeria, like many countries, borrows to grow and improve the lives of its people.
“We are a poor country with a large population. Nigeria’s budget is smaller than South Africa’s. We must stop deceiving ourselves about what we can fund without borrowing.”
