The Federal Government has pushed back strongly against growing criticism over Nigeria’s rising debt profile, with Tanimu Yakubu defending deficit spending as a necessary economic tool rather than a sign of fiscal recklessness.

In a detailed response, the Budget Office chief argued that borrowing remains a standard global practice used to stabilise economies, particularly during periods of weak growth, structural imbalance, and financial pressure. He dismissed critics as lacking a proper understanding of economic principles, insisting that government spending plays a key role in stimulating economic activity.

Yakubu explained that public borrowing does not simply “disappear,” but circulates within the economy—funding infrastructure, supporting businesses, and boosting household incomes. According to him, what appears as government deficit often translates into private sector gains, driving liquidity and growth.

He also stressed that Nigeria’s current fiscal challenges are rooted in long-standing structural issues such as subsidy regimes, low revenue generation, and heavy reliance on oil—not just recent policies under Bola Ahmed Tinubu.

Addressing concerns about the country’s debt level, Yakubu noted that Nigeria’s debt-to-GDP ratio remains relatively moderate compared to many advanced and emerging economies. He argued that the real issue lies in revenue generation and how borrowed funds are utilised, rather than the act of borrowing itself.

The government, he said, is focused on expanding the economy, improving productivity, and broadening the tax base as more sustainable solutions, rather than adopting strict austerity measures that could slow growth.

Overall, the statement reflects the administration’s stance that strategic borrowing—if properly managed—remains essential for economic recovery and long-term stability.