Nigeria's Presidency Defends Rising Debt Compared to Peers

The Nigerian presidency, represented by Special Adviser Bayo Onanuga, defended the country's increasing debt levels, asserting that Nigeria can still borrow more than Egypt and South Africa. Onanuga addressed concerns regarding Nigeria's debt trajectory, stating that the country maintains fiscal space and access to credit for developmental purposes, particularly in infrastructure financing.

He dismissed fears of approaching a dangerous debt threshold, citing economic data that shows Nigeria's total public debt at $110 billion with a GDP of approximately $340 billion, resulting in a debt-to-GDP ratio of about 35%. In contrast, Egypt's total debt exceeds $400 billion against a GDP of $390 billion, placing it above the 100% debt-to-GDP threshold, while South Africa's debt stock is $580 billion with an estimated GDP of $420 billion, resulting in a debt-to-GDP ratio of roughly 135%.

The Tinubu administration, which took office in May 2023, is pursuing multiple borrowing plans to bridge infrastructure gaps and stabilize the economy, despite criticisms regarding rising debt and declining revenue performance.