UPDATED: “Borrowing is not criminal”, Tinubu speaks on govt debt

President Bola Tinubu has justified borrowing money from international financial institutions by his administration to finance its budget.

He emphasised that obtaining loans is not a criminal act and that they were obtained to develop the nation’s infrastructure.

President Tinubu said this during his first presidential media chat on Monday.

“Borrowing is not criminal. We have serious infrastructural challenges,” he said

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In November, the two chambers of the National Assembly permitted President Tinubu to obtain a $2.209 billion external loan, equivalent to N1.767 trillion.

The loan would be part of the funds to finance the 2024 budget.

Since the approval, many Nigerians have criticised the Tinubu administration for taking more loans while struggling to pay the country’s debts.

The loan is one of the many others that Mr Tinubu’s administration has obtained through the approval of the National Assembly since he was sworn in as president.

As of June, the Debt Management Office (DMO) said Nigeria’s domestic and external debts stood at ₦121.67 trillion, equivalent to $91.46 billion.

The nation’s debt profile rose by ₦24.33 trillion within three months – from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion).

While total domestic debt was put at ₦65.65 trillion ($46.29bn), total external debt was ₦56.02 trillion ($42.12bn).

Nigeria headed the wrong way in the past

During the media chat, President Tinubu admitted that previous governments did not judiciously utilise the loans they obtained from foreign institutions.

He said rather than trading blame, he would concentrate on the nation’s future.

“Yes, we have headed the wrong road in the past. I don’t want to look at that. I want to think about prosperity. I want to think about tomorrow,” he said.

READ ALSO: How I’m fighting corruption – Tinubu

The president stated that the loan his administration obtained would be channelled to road infrastructure, technology and power development.

“What is the element of this borrowing? Our roads are terrible. Our internet is not up to the level that we want as a technology-driven nation. We are still indebted to electricity and transmission in the power generation,” he added.

Borrowing not to inflict pain on Nigerians

Mr Tinubu said the borrowings were not obtained to inflict pain on Nigerians but to develop the country.

“It’s not just because we want to inflict pain on anybody. These people share the same values. We want this country to grow. Yes, to grow all the way, all the way…,” he said.