We Can Take More Loans, Nigeria Not Borrowing Like Egypt, South Africa, Others – Presidency
The Presidency, on Tuesday, defended Nigeria’s borrowing profile, insisting that the country has not accumulated debt at the level of nations such as Egypt, South Africa and Senegal.
Presidential spokesman, Bayo Onanuga, stated this in a post on X while reacting to concerns over Nigeria’s rising debt profile under the administration of President Bola Tinubu.
According to Onanuga, Nigeria remains creditworthy and can still obtain more loans to finance infrastructure projects across the country.
“Nigeria has not over borrowed compared to countries like Egypt, South Africa and West African country of Senegal. Nigeria is credit worthy and can still take more loans to finance infrastructure.
“The unwarranted alarm against loans is symptomatic of economic and financial ignorance,” he wrote.
His remarks followed a post by an X user @Akinwumi who argued that Nigeria’s debt-to-GDP ratio remains lower than that of Egypt and South Africa.
The user maintained that loans used for infrastructure, electricity, transport, internet expansion, railway modernization, port reforms, agriculture and energy projects should be viewed as long-term investments capable of driving economic growth and national development.
AttNews earlier reported that the Federal Government has cancelled $717.7m in undisbursed World Bank financing for Nigeria’s troubled electricity sector, effectively terminating the remaining portion of a $1.52bn power sector recovery programme amid mounting tariff shortfalls, worsening financial pressures, and persistent implementation challenges across the industry.
Documents obtained from the World Bank website on Monday showed that the cancellation followed a formal request by the Federal Government and a joint decision by both parties to discontinue financing under the Power Sector Recovery Performance-Based Operation due to evolving sector realities and the inability to achieve key reforms
According to the World Bank restructuring paper, the cancelled amount represents the entire undisbursed balance remaining under the programme. “The restructuring will result in the cancellation of the entire undisbursed balance in the amount of $717.7m equivalent, and no further disbursements will be made under the Program following approval of this restructuring,” the bank stated.
The bank also disclosed that the programme’s closing date had been brought forward from June 30, 2027, to May 31, 2026, effectively ending the operation more than a year ahead of schedule. The cancelled facility formed part of a broader World Bank intervention designed to revive Nigeria’s struggling power sector.
