Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has emphasized the importance of strategic borrowing by the Bola Tinubu administration, cautioning that Nigeria’s debt management must prioritize the nation’s long-term economic stability.
In a recent statement, Rewane stressed that while borrowing is a necessary tool for funding development projects and boosting economic growth, it must be approached prudently. He warned that reckless or unplanned borrowing could lead to unsustainable debt levels, hampering future development and burdening future generations.
Rewane’s comments come amid ongoing discussions about Nigeria’s rising debt profile, which has been a subject of concern among economists and policymakers. According to the Debt Management Office (DMO), Nigeria’s total public debt stood at approximately $103 billion as of the end of 2022, with some analysts warning about the need for careful management to avoid debt distress.
He further urged the government to ensure that borrowings are channeled into productive sectors such as infrastructure, agriculture, and industrialization, which can generate revenue and improve living standards for Nigerians.
The President Bola Tinubu administration has indicated plans to leverage borrowing to fund its agenda of economic reform and infrastructural development, but experts like Rewane underscore the importance of maintaining fiscal discipline.
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