Tinubu on borrowing spree to fund infrastructure – Presidency replies Emir Sanusi

Special Adviser to President Bola Tinubu on Policy Communication, Daniel Bwala, has defended the Federal Government’s borrowing strategy, stating that billions of dollars are being raised to finance critical infrastructure across Nigeria.

Bwala made the remarks while responding to comments by the Emir of Kano, Muhammad Sanusi II, who had questioned Nigeria’s continued reliance on external loans despite the removal of fuel subsidy.

Posting on X, Bwala said Nigeria’s infrastructure deficit requires massive annual investment, which the government cannot meet through revenue alone.

“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,” he wrote.

He added that Nigeria needs between $30 billion and $100 billion yearly to address its infrastructure gap, insisting that borrowing remains necessary because current funding levels are insufficient.

Sanusi, a former Central Bank Governor, had earlier warned that despite subsidy removal, Nigeria’s fiscal position still shows heavy dependence on borrowing, describing it as inconsistent with expected economic reforms.

He argued that while subsidy removal and improvements in domestic refining are positive steps, they should translate into stronger fiscal discipline and reduced debt accumulation.

The Emir also maintained that savings from subsidy removal should reflect in lower borrowing and improved economic stability.

The exchange highlights ongoing debates over Nigeria’s economic direction under President Bola Tinubu, particularly on debt sustainability and infrastructure financing strategy.

Follow Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!