Nigeria has not over borrowed unlike Egypt, South Africa and Senegal — Bayo Onanuga

Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, has defended Nigeria’s increasing borrowing, stating that the country is not over-indebted when compared to Egypt, South Africa, and Senegal.

He expressed this view on X, arguing that critics lack a proper understanding of public finance and Nigeria’s debt situation.

“Nigeria has not over borrowed in comparison to countries like Egypt, South Africa, and Senegal,” he stated. He emphasized that Nigeria is creditworthy and has the capacity to take on more loans for infrastructure development.

He described the alarmist views regarding Nigeria’s borrowing as a reflection of economic and financial misunderstanding.

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In response to an X user who compared the debt levels of various nations, it was noted that Egypt’s debt exceeds $400 billion against a GDP of approximately $390 billion, and South Africa has around $580 billion in debt relative to a GDP of about $420 billion. Meanwhile, Nigeria’s debt is around $110 billion, with a GDP of roughly $340 billion, resulting in a lower debt-to-GDP ratio of about 35 percent.

“Yet some people continue to claim that Nigeria is the ‘loan capital of the world,'” the post remarked.

These remarks come as concerns about Nigeria’s borrowing increase under the Tinubu administration, with critics worrying about the pressures of debt servicing and economic difficulties, while the government argues that loans are necessary for infrastructure and essential sectors.