Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has said the Federal Government is borrowing billions of dollars to support investments in critical infrastructure across the country.
Bwala made the comment while responding to concerns raised by the Emir of Kano, Muhammed Sanusi, who had stated that Nigeria requires between $30 billion and $100 billion annually to address its infrastructure deficit.
In a post shared on X, Bwala defended the government’s borrowing approach, explaining that the funds are being channelled into key sectors of the economy, with infrastructure described as a top priority.
He noted that the country’s infrastructure gap requires substantial annual investment, adding that current spending levels are insufficient, which necessitates borrowing to bridge the shortfall.
The Emir of Kano had earlier expressed concerns over Nigeria’s continued reliance on borrowing despite the removal of fuel subsidy, describing the situation as inconsistent with expected fiscal improvements.
He argued that although subsidy removal was intended to ease government financial pressure, it has not significantly reduced the need for borrowing, as anticipated.
Sanusi also stated that Nigeria should no longer justify supporting foreign refineries given its status as an oil-producing nation, adding that recent developments in local refining and exports should be strengthened to benefit the economy.
The former Central Bank of Nigeria Governor further criticised government fiscal management, saying that savings from subsidy removal should translate into reduced borrowing and more visible economic progress.
The exchange highlights ongoing public debate over Nigeria’s debt profile and the effectiveness of recent economic reforms under the Tinubu administration.
