Presidency Replies Dino Melaye Says Rising Debt Is Due to Naira Depreciation Not Reckless Borrowing
The Presidency has pushed back against former Kogi West Senator Dino Melaye’s criticism of President Bola Tinubu’s borrowing policy, insisting that the rise in Nigeria’s debt profile is not a result of reckless borrowing but largely due to the depreciation of the naira against the dollar.
In a statement on Tuesday via his verified X handle, Sunday Dare, Special Adviser to President Tinubu on Media and Public Communication, described Melaye’s comments as “entertainment, not enlightenment.” He noted that the former lawmaker has a history of sensational statements that do not align with economic facts.
Melaye, in an earlier interview on Arise News, accused the Tinubu administration of engaging in excessive borrowing and claimed that Nigeria’s debt situation was so severe that the government might soon borrow from fintech platforms if the current trend continues. He also questioned why the government was seeking a $1.7 billion loan from the World Bank and pointed to Senate approvals of about $21 billion in foreign loans since Tinubu assumed office.
Responding, Dare stressed that figures from the Debt Management Office (DMO) showed Nigeria’s total public debt stood at ₦149.39 trillion as of March 31, 2025. He clarified that this rise was not linked to new reckless loans but to the impact of the weakened naira on the valuation of existing foreign debts.
He further explained that Nigeria’s debt-to-GDP ratio remains between 40 and 45 percent, which he said is still moderate compared to other African countries. For instance, South Africa has a debt-to-GDP ratio of about 70 percent, while Ghana’s is above 90 percent. According to Dare, this shows that Nigeria’s debt situation is not unusual and remains within manageable levels.
“The real challenge for Nigeria is not runaway borrowing but revenue mobilization,” Dare said. He noted that the Federal Government is already improving revenue generation, which would strengthen its ability to meet debt obligations and fund critical reforms.
He defended borrowing as a legitimate economic tool, explaining that funds raised through loans are being directed toward infrastructure projects and growth-driven reforms. He added that the focus should be on debt sustainability and effective management, not political soundbites designed to mislead the public.
“Borrowing is a legitimate tool for financing reforms and infrastructure. What matters is sustainability, not theatrics. Unfortunately, Dino prefers showmanship over truth. Until he acquaints himself with basic economics, his commentary will remain entertainment rather than enlightenment,” Dare said.
The Presidency’s response highlights the growing political tension over Nigeria’s debt levels, with critics accusing the administration of poor financial management, while government officials argue that current reforms are laying the foundation for long-term stability.
