Presidency defends fresh loans plan, says No sin in borrowing

 

The presidency has defended its decision to embark on fresh borrowing to finance some capital projects among other financial obligations in Nigeria.

This is coming after President Bola Tinubu had last week submitted a request to the National Assembly, seeking approval for fresh external and domestic loans amounting to N34.15 trillion.

The development has received backlash from various stakeholders, especially the opposition parties querying the essence of such loans despite the removal of fuel subsidy.

But, Special Adviser to the President on Information and Strategy, Bayo Onanuga, who defended the planned borrowing at a media interaction held in Lagos, described the move as necessary.

Onanuga explained that the government’s borrowing approach is a necessary instrument for driving economic development

The Presidential aide added that when loans are utilized responsibly, borrowing should not be viewed negatively.

“It is not a sin to borrow. Even developed nations like the United States of America and the United Kingdom borrow beyond their GDP. The issue is not borrowing; it is what you do with the borrowed funds,” he said.

Also speaking, Special Adviser to the President on Public Communication, Sunday Dare, emphasised the significance of borrowing for large-scale development projects.

“We can’t build highways from Lagos to Calabar or Sokoto to Bida without borrowing. Projects like these wake up entire regions economically.