Politics

Presidency Rejects Melaye’s Allegations on Nigeria’s Debt

Presidency Rejects Melaye’s Allegations on Nigeria’s Debt

 

 

The Presidency has dismissed claims by former Kogi West Senator, Dino Melaye, over Nigeria’s rising debt profile, describing them as “entertainment rather than enlightenment.”

 

Melaye, in an interview on Arise News, criticized the Tinubu administration’s borrowing practices, suggesting that continued borrowing could force the government to seek funds from local fintech firms. He also questioned recent loan requests, including the $1.7 billion sought from the World Bank, and highlighted the Senate’s approval of about $21 billion in external loans so far, calling the borrowing unprecedented.

 

Responding, Special Adviser to the President on Media and Public Communication, Sunday Dare, cited data from the Debt Management Office showing Nigeria’s total public debt at ₦149.39 trillion as of March 31, 2025. He explained that the increase largely reflects the effect of naira depreciation on existing external loans, not reckless borrowing.

 

Dare further noted that Nigeria’s debt-to-GDP ratio, at 40–45 per cent, remains moderate compared to South Africa at 70 per cent and Ghana at over 90 per cent. He said the real challenge lies in revenue mobilization rather than borrowing and stressed that loans are necessary tools for financing reforms and infrastructure.

 

“Borrowing is a legitimate instrument for growth and reform. What matters is sustainability, not soundbites,” Dare said, adding that Melaye’s commentary “remains entertainment, not enlightenment.”

Olayinka Babatunde

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