The Presidency has defended the Federal Government’s proposed $20.5 billion and €1.9 billion external borrowing, arguing that Nigeria’s growing population and development challenges require additional funding to sustain essential services and address critical national needs.
The Special Adviser to the President on Media and Public Communication, Sunday Dare, gave the defence during an interview on ARISE NEWS on Wednesday, insisting that government activities should not be suspended because of approaching elections.
Dare said the proposed loans would support security operations across the 36 states, provide assistance to vulnerable Nigerians and fund human capital development, infrastructure, healthcare and education.
According to him, Nigeria, with an estimated population of 230 million people, lacks sufficient domestic resources to meet all its development needs without additional financing.
He maintained that external borrowing was not unusual, arguing that governments worldwide obtain loans to finance policies and programmes aimed at improving their economies.
Responding to concerns about the country’s rising debt profile and debt-servicing obligations, Dare rejected claims that Nigeria was experiencing a revenue crisis.
He attributed the government’s revenue performance to tax reforms, increased refining capacity, diversification of revenue sources and ongoing investments in gas infrastructure.
The presidential aide also cited projected economic growth, improvements in external reserves and increased allocations to state governments as indications that the country’s economic fundamentals were strengthening.
He expressed optimism that the administration’s macroeconomic stabilisation measures would eventually improve the value of the naira, increase government revenue and strengthen the economy.
Dare, however, acknowledged the need for transparency in the proposed borrowing, assuring Nigerians that the Minister of Finance and Coordinating Minister of the Economy would provide a detailed breakdown of how the funds would be utilised.
He said the broad areas identified for the loans included infrastructure, security and social investment, adding that the National Assembly would examine the proposal and provide further details.
The presidential aide further defended the administration’s borrowing record by pointing to its support for students through the Nigerian Education Loan Fund (NELFUND), military counter-insurgency operations, mechanised agriculture, improvements in electricity supply and the regular payment of public servants’ salaries.
On efforts to reduce the cost of governance, Dare disclosed that the government was reviewing the Oronsaye Report, which recommends the restructuring and consolidation of federal government agencies and parastatals.
He also said measures had been introduced to reduce ministers’ convoys and subject official foreign travels to additional approval and verification procedures.
According to him, President Bola Tinubu has also directed the Finance Minister to conduct a forensic audit of federal agencies and parastatals to identify fake entities and organisations allegedly receiving public funds illegally.
Dare said the measures were part of the administration’s efforts to cut government expenditure while ensuring that public resources were directed towards essential services and national development.
