The Presidency has defended Nigeria’s continued borrowing after the Emir of Kano, Muhammadu Sanusi II, questioned why the Federal Government still takes fresh loans despite removing fuel subsidy.

Recently, Sanusi raised the issue during a public lecture. He argued that ending petrol subsidy should free up public funds, ease fiscal pressure, and reduce Nigeria’s dependence on debt. Therefore, he said Nigerians deserve clear answers about why borrowing continues.

“We’ve removed the subsidy. We’re not spending it. If you’ve got the money, why are we still borrowing and borrowing? And what are we borrowing for?” Sanusi asked.

Furthermore, Sanusi stressed that subsidy removal and foreign exchange reforms were necessary. However, he urged the government to show stronger fiscal discipline. In his view, Nigerians should already see the benefits of these difficult policy choices.

“You cannot remove wastages and continue borrowing without showing clear signs of fiscal consolidation,” he said.

However, the Presidency rejected the suggestion that the borrowing is excessive or misplaced. Daniel Bwala, Special Adviser to President Bola Tinubu on Policy Communication, said the government borrows to fund critical infrastructure projects that will strengthen the economy over time.

According to Bwala, Nigeria faces a huge infrastructure deficit. As a result, the country needs massive annual investment to close the gap. Since current revenues cannot cover those needs, the government continues to borrow.

“We are simply borrowing to invest in the most important areas of our economy, with infrastructure being the most crucial of them all,” Bwala stated.

“Nigeria requires between $30 billion and $100 billion annually to close its infrastructure deficit. What we currently spend is not enough, so borrowing becomes necessary,” he added.

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Importantly, the Presidency said it does not use these loans for recurrent expenditure. Instead, it channels them into roads, railways, and other major infrastructure projects. In turn, these investments can improve productivity, boost connectivity, and stimulate economic growth.

Nevertheless, Sanusi made it clear that he does not oppose borrowing itself. Rather, he wants the government to borrow only for productive investments that can generate measurable returns.

In addition, he argued that savings from subsidy removal should already reduce the country’s borrowing needs. That concern has resonated with many Nigerians, especially as the nation’s debt profile continues to rise.

Recent data from the Debt Management Office showed that Nigeria’s total public debt rose to more than ₦159 trillion as of December 2025. Consequently, public concern about debt sustainability and repayment obligations has intensified.

Ultimately, this debate reflects a broader national conversation about fiscal responsibility, economic reform, and accountability. Nigerians want to know whether today’s sacrifices will produce tomorrow’s prosperity.

For now, the Presidency insists that borrowing remains essential for development. Even so, critics such as Sanusi continue to demand greater transparency, stronger accountability, and visible results.

As Nigeria presses ahead with major reforms, one question remains: will these loans deliver the growth, infrastructure, and prosperity that citizens expect?