Senate President Godswill Akpabio has stirred fresh debate over Nigeria’s fiscal direction after defending the borrowing strategy of President Bola Tinubu, insisting that the country has not taken on excessive debt and remains within sustainable limits.


Speaking amid growing public concern over Nigeria’s rising debt profile, Akpabio argued that borrowing, when properly applied, is not only justified but necessary for economic growth. His remarks come as critics—including former Atiku Abubakar and the Emir of Kano, Sanusi Lamido Sanusi—have warned that the nation may be heading toward a dangerous debt burden if current trends continue unchecked.


Borrowing as a Growth Tool


Akpabio framed borrowing as a strategic tool rather than a liability, emphasizing that funds should be channeled into projects capable of generating long-term economic returns. He cited large-scale infrastructure initiatives like the proposed Sokoto–Badagry Superhighway as examples of investments that could “pay for themselves” by boosting trade, connectivity, and regional development.


According to the Senate President, such projects have the potential to unlock economic corridors, reduce transportation costs, and stimulate both local and international commerce. In his view, these benefits outweigh the risks associated with borrowing, provided the funds are transparently managed and efficiently deployed.



Critics Raise Red Flags


Despite the government’s assurances, critics remain skeptical. Sanusi Lamido Sanusi has repeatedly cautioned about Nigeria’s fiscal trajectory, arguing that unchecked borrowing without corresponding revenue growth could strain the economy. Similarly, Atiku Abubakar has called for more prudent financial management, urging the administration to prioritize revenue generation over debt accumulation.


These concerns are rooted in Nigeria’s growing debt servicing obligations, which have consumed a significant portion of government revenue in recent years. Analysts warn that unless revenue streams improve, the country could face reduced fiscal flexibility and increased vulnerability to economic shocks.


Government’s Position on Sustainability


Akpabio, however, dismissed fears of a looming debt crisis, maintaining that Nigeria’s borrowing remains within “sustainable economic limits.” He pointed to the country’s relatively low tax-to-GDP ratio as evidence that there is still room to increase revenue without overburdening citizens.


The Senate President argued that improving tax collection efficiency and expanding the tax base could significantly enhance government income, thereby easing debt pressures. He suggested that ongoing reforms under Tinubu’s administration are aimed at achieving this balance between borrowing and revenue generation.


The Broader Economic Context


Nigeria, Africa’s largest economy, faces a complex set of fiscal challenges, including infrastructure deficits, inflationary pressures, and currency instability. The Tinubu administration has embarked on ambitious reforms, including subsidy removals and efforts to unify exchange rates, all aimed at stabilizing the economy and attracting investment.


In this context, borrowing is seen by the government as a necessary mechanism to finance critical development projects that cannot be funded through existing revenues alone. However, the debate continues over how much debt is too much—and whether the expected economic returns will materialize quickly enough to justify the risks.


A Debate Far From Settled


Akpabio’s defense underscores a broader divide in Nigeria’s economic discourse: whether borrowing should be aggressively pursued to accelerate development or cautiously managed to avoid long-term financial strain. While the government insists its approach is measured and forward-looking, critics argue that transparency, accountability, and tangible results will ultimately determine whether the strategy succeeds.


As Nigeria navigates its economic future, the balance between debt and development remains a critical issue—one that will likely continue to dominate public and policy discussions in the months ahead.