Professor Bongo Adi of Lagos Business School has described President Bola Tinubu’s $6.9 billion foreign loan as a strategy to address poverty in Nigeria.
Adi made the remarks during an interview on Channels Television’s The Morning Brief on Wednesday. He noted that the National Assembly recently approved the loan, with 40 percent earmarked for capital projects in the 2025/2026 budgets, following recommendations from the Senate Committee on Local and Foreign Debt to ensure the funds support infrastructure and development.
According to the economist, the government’s borrowing is aimed at raising sector development and reducing poverty, particularly given the unprecedented levels of hardship currently faced by Nigerians. He highlighted that the government acts as a rational agent, seeking to maximise returns at minimal cost, and that borrowing is favoured because of Nigeria’s strong external reserves and the confidence of creditors in repayment.
Adi explained that interest on loans often extends into future administrations, making borrowing a practical choice for the government. He also noted that while macroeconomic indicators may show improvement, many Nigerians continue to experience the consequences of infrastructure deficits, subsidy removals, and exchange rate adjustments, which exacerbate everyday struggles.
The economist stressed that the government’s borrowing strategy is rational in economic terms, but the benefits must eventually reach ordinary citizens to address widespread discontent and improve living standards.
