Presidency Defends Massive Infrastructure Loans as Emir Sanusi Questions Continued Borrowing Post-Subsidy Removal

Daniel Bwala defends the Tinubu govt's multi-billion dollar borrowing for infrastructure, responding to Emir Sanusi's concerns over fiscal discipline.

By: AXL Media

Published: Apr 25, 2026, 4:33 AM EDT

Source: Information for this report was sourced from Politics Nigeria

Presidency Justifies Debt Expansion for Critical Economic Growth

The Federal Government has formally addressed the growing debate over Nigeria’s rising debt profile, characterizing current borrowing as a necessary investment in the nation’s future. Daniel Bwala, the Special Adviser to President Bola Tinubu on Policy Communication, asserted on April 25, 2026, that the administration is targeting the most vital sectors of the economy. This defense follows a public discourse on the magnitude of the country’s infrastructure gap and the government's capacity to bridge it without compromising fiscal stability.

Emir Sanusi Highlights Inconsistency in Fiscal Consolidation Efforts

The controversy was ignited by remarks from the Emir of Kano, Muhammadu Sanusi II, a former Governor of the Central Bank of Nigeria. Speaking during a recent interview on News Central TV, Sanusi expressed bewilderment at why the government remains heavily reliant on loans despite the removal of the petrol subsidy. While he acknowledged the removal was an essential reform, he argued that the expected benefit—fiscal consolidation and reduced borrowing—has yet to materialize. Sanusi questioned the logic of eliminating waste and wastages if the government continues to pile on debt at a rapid pace.

Bridging the $100 Billion Annual Infrastructure Deficit

In a direct response on social media, Bwala cited specific financial requirements to justify the administration’s strategy. He noted that Nigeria’s infrastructure needs range between $30 billion and $100 billion every year to achieve a modernized economy. According to the Presidency, current internal revenue generated from subsidy savings is insufficient to meet these astronomical costs. The government maintains that the loans are specifically earmarked for high-impact projects, such as the 1,000-kilometre Sokoto-Badagry Superhighway, which recently saw a $516.3 million loan request submitted to the Senate.