THE Presidency has assured Nigerians that the country’s debt situation is not as dire as critics claim, insisting that Nigeria is currently “under-borrowing” compared to its economic capacity.
Dr. Tope Fasua, Special Assistant to President Bola Tinubu on Economy, made the clarification on Tuesday while speaking as a guest on Channels Television’s flagship programme, The Morning Brief monitored by News Point Nigeria.
He explained that Nigeria’s debt-to-Gross Domestic Product (GDP) ratio has dropped to 39% since the Tinubu administration took office in 2023, describing the country’s current debt management as “healthy and sustainable.”
“At 39 per cent of GDP, Nigeria is actually under-borrowing,” Fasua stated. “The last data I received showed that debt servicing has dropped by 64 per cent compared to previous years.
“In 2022, our situation was so bad that we were spending all our revenues on debt servicing and borrowing an additional 20 per cent just to pay existing debt. Today, we are in a much better position.”
Fasua disclosed that Nigerian states have collectively paid down 42% of their debts between 2023 and 2024, signalling improved fiscal discipline across the federation.
He likened the management of a nation’s economy to running a conglomerate, arguing that responsible borrowing remains an essential tool for development.
“A thriving company pays some debts, takes new ones, and uses them to expand operations. The same applies to a country.
“What matters is whether the loans are productive, properly managed, and channelled into infrastructure that will repay itself over time,” he explained.
The presidential aide stressed that Nigeria’s estimated $3 trillion annual infrastructure deficit must be tackled through strategic borrowing, noting that roads, power, and other public utilities are crucial to reducing multidimensional poverty.
“One of the central ways to fight poverty is through infrastructure development. Poverty is not just about income but access to roads, water, schools, and hospitals. Our focus is to ensure borrowings are invested in projects that open up the economy and improve lives,” Fasua said.
He further claimed that government efforts have already lifted “about 120 million Nigerians” out of multidimensional poverty, adding that the administration would continue to prioritise projects with direct impact on citizens.
Fasua pointed to recent economic indicators as evidence of progress. According to data released by the National Bureau of Statistics (NBS), headline inflation eased to 20.12% in August 2025, down from 21.88% in July. He also celebrated the naira’s appreciation to the N1,400/$1 range for the first time in eight months, calling it “a major win for market confidence.”
“Inflation does not increase forever in any economy. Ghana had inflation as high as 40% but is now trending to single digits. Nigeria will also get there soon,” he said, assuring Nigerians that food prices were beginning to stabilise.
He highlighted that for the first time in 26 years, Nigeria did not experience its usual seasonal spike in tomato prices, which he credited to government interventions in agriculture and logistics.