The federal government has defended its decision to pursue additional foreign loans, citing their importance in funding critical infrastructure outlined in the 2024 budget. The Minister of Finance explained that the borrowed funds would be allocated to key projects aimed at boosting economic growth and improving public services.
While the move has drawn criticism over Nigeria’s rising debt profile, government officials emphasize the strategic nature of the loans. They argue that these funds are essential for accelerating ongoing initiatives in transportation, health, and education. Furthermore, the government highlighted its commitment to ensuring that borrowed money is utilized effectively and repaid without jeopardizing fiscal stability.
Analysts, however, remain cautious, urging policymakers to prioritize debt sustainability. Economists have recommended diversifying revenue streams and enhancing tax collection to reduce over-reliance on external funding.
