Presidency counters Melaye, says Nigeria’s debt profile ‘sustainable’ despite Naira depreciation

The Presidency has dismissed criticisms by former Kogi West Senator, Dino Melaye, over Nigeria’s rising debt profile, describing his remarks as sensational rather than factual.

Reacting through a post on his verified X handle on Tuesday, Special Adviser to President Bola Tinubu on Media and Public Communication, Sunday Dare, said Melaye’s comments amounted to “entertainment, not enlightenment.”

Melaye, in a television interview earlier in the day, had faulted the administration’s borrowing practices, warning that Nigeria’s debt trajectory was unsustainable. He alleged that the government’s reliance on external loans could eventually compel it to seek credit from local fintech firms. The former lawmaker also questioned recent requests for loans, including $1.7 billion from the World Bank, and noted that the Senate had already approved about $21 billion in external borrowing.

Responding, Dare cited figures from the Debt Management Office (DMO), which put Nigeria’s total public debt at ₦149.39 trillion as of March 31, 2025. He explained that the increase was primarily the result of naira depreciation on existing obligations rather than new borrowings.

READ ALSO: Bauchi govt dismisses school officer for alleged sexual harassment

He stressed that Nigeria’s debt-to-GDP ratio currently stood between 40 and 45 percent, which he described as moderate when compared with South Africa’s 70 percent and Ghana’s over 90 percent. According to him, the real challenge lies in revenue generation, though recent improvements in revenue inflows have strengthened the country’s capacity to meet its debt obligations.

“Borrowing is a legitimate tool for financing growth and reforms. What matters is sustainability, not soundbites. Unfortunately, Dino prefers theatrics to truth,” Dare said.

The presidential aide maintained that borrowing would remain part of government’s fiscal strategy to fund reforms and infrastructure projects, while warning against what he called politically motivated commentary.