- Sanusi had earlier questioned the country’s continued reliance on debt despite the removal of fuel subsidy
- Bwala explained that current government spending falls short of what is needed
- loans are being channelled into key infrastructure projects nationwide
Special Adviser to Bola Tinubu on Policy Communication, Daniel Bwala, has defended the Federal Government’s borrowing strategy, stating that loans are being channelled into key infrastructure projects nationwide.
Eko Hot Blog reports that Bwala made the clarification in response to comments by the Emir of Kano, Muhammed Sanusi, who recently highlighted the scale of Nigeria’s infrastructure deficit, estimating that the country requires between $30 billion and $100 billion annually to bridge the gap.
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Reacting via a post on X, Bwala explained that current government spending falls short of what is needed, making borrowing a necessary option to fund essential sectors, particularly infrastructure.
Sanusi had earlier questioned the country’s continued reliance on debt despite the removal of fuel subsidy, describing the situation as contradictory from a fiscal standpoint.
He argued that while ending the subsidy was a necessary reform, it has yet to significantly ease borrowing pressures or translate into stronger financial discipline.
The former Central Bank governor also maintained that an oil-producing country like Nigeria should not justify policies that effectively support foreign refining, even as he acknowledged recent improvements in local refining and export performance.
However, he expressed concern over spending priorities, noting that savings from subsidy removal should have been more visible in reduced borrowing levels and clearer economic gains.
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