Nigeria defends strategic borrowing as global financiers ignore Africa
Nigeria's economic adviser Tope Fasua counters Emir Sanusi II's criticism of borrowing after fuel subsidy removal, arguing Nigeria is actually under-financed globally with only 1.8% of world debt ($2 trillion out of $111 trillion). Africa's minimal debt share reflects dismissal of the continent's potential despite its population, resources, and growth opportunities.
With Nigeria's debt at just 39% of GDP (well below recommended 60-70%), debt service to revenue ratio has improved from 120% to 68% under Tinubu. States have increased capital spending by 300% since subsidy removal, shifting development focus to subnational levels where Nigerians actually live.
Fasua distinguishes between borrowing for infrastructure versus consumption, advocating for strategic financing of rail, ports, power, and agriculture through Public Private Partnerships. He challenges Emir Sanusi—who chairs Black Rhino with $35 billion AUM—to leverage global finance networks for Africa's development rather than discouraging necessary borrowing.