Nigeria’s Debt: Economist Ekpo identifies major problem with Tinubu’s govt borrowing

Renowned economist, Professor Akpan Ekpo, has said there is nothing wrong with Nigeria borrowing to finance its budget deficit, provided such loans are properly analysed and channelled into productive capital projects.

Ekpo, who spoke during an interview on Arise Television, said borrowing remains a legitimate financing option for governments facing large budget deficits, noting that such gaps could be addressed through domestic and external loans.

According to him, the major concern with Nigeria’s borrowing is not necessarily the decision to take loans but the lack of transparency and accountability in how borrowed funds are utilised.

“There is nothing wrong in borrowing as long as you have done your analysis very well and you are borrowing to finance capital projects.

“Because when you have large deficits, the only way to fill the gap is to borrow externally and internally.

“The problem, in my view, is the issue of transparency and accountability in terms of borrowing,” he said.

The economist stressed that the government must be clear about the specific projects and purposes for which borrowed funds are being deployed.

He questioned the vague explanations often provided by authorities when justifying loans, particularly when infrastructure projects such as road construction are cited without sufficient details.

“The focus should be: What are we using the money for? If you say road, it is very opaque,” Ekpo added.

His comments come amid growing concerns over Nigeria’s rising debt profile and the Federal Government’s reliance on domestic and external borrowing to finance budgetary expenditures.

According to the Debt Management Office, the country’s debt climbed to N166.79 trillion in June 2026.

Recently, President Bola Ahmed Tinubu sought Senate approval for $21.7 billion in external borrowing to fund critical projects across the country.

However, the fresh loan request has further heightened concerns among Nigerians over the country’s rising debt profile.