Daniel Bwala, Special Adviser to President Bola Ahmed Tinubu on Policy Communication, has defended the Federal Government’s continued borrowing from international financial institutions, insisting that Nigeria is not yet in a dangerous debt situation despite growing public concern.
Bwala made the remarks in an interview with ARISE News on Wednesday, responding to reports that many Nigerians had flooded the World Bank’s Instagram page, urging the global lender to halt loans to Nigeria.
“The World Bank, IMF, and other global experts have continually said Nigeria’s borrowings are still in amber, not red. We’ve been able to establish a revenue ratio. It’s not much, but it’s not a danger signal,” Bwala said.
He explained that the government has limited funds to finance infrastructure and stimulate economic growth, making borrowing necessary. “We do not have sufficient funds to deal with infrastructure and stimulate the economy, so we have to do what we have to do. Borrowing is part of it,” he added.
Addressing the social media backlash, Bwala suggested that some critics might have political motives given the approaching election season. However, he acknowledged that citizens have the right to express their concerns.
“Leadership cannot be guided solely by social media opinions,” he said. “We must act according to law, due process, and expert advice. The World Bank, IMF, and experts have said our borrowing is amber, not red. It is not a danger.”
Bwala also compared Nigeria’s borrowing to that of other countries, including the United States, emphasizing that borrowing is a common practice worldwide.
He concluded that the Tinubu administration sees borrowing as essential for financing infrastructure and capital projects needed to reposition the economy.
“On our own part, we know we have to invest in infrastructure, we know we have to invest in capital projects, and that is why we are borrowing. Borrowing is not leprosy,” Bwala said.
The government continues to face criticism over rising debt amid economic hardships, inflation, and the removal of fuel subsidies. Starnews.
