By John Moses
A prominent Nigerian economist has called on the country’s federal and state governments to make more effective use of financial gains from fuel subsidy removal, warning that taking on fresh debt without accountability could deepen the nation’s economic challenges.
Professor Sherifdeen Tella, an economics lecturer at Babcock University, voiced his concerns in an interview with the News Agency of Nigeria (NAN) on Monday, amid the federal government’s recent request to borrow over $21 billion from external lenders and raise a further ₦757.98 billion via domestic bonds.
The proposed loans, President Bola Tinubu said in letters to the National Assembly, are intended to fund essential infrastructure projects, settle long-standing pension arrears, and address key national priorities.
However, Prof Tella argued that the sharp rise in government revenues since the removal of petrol subsidies should reduce the need for immediate borrowing.
“Monthly allocations to all levels of government have significantly increased. It’s crucial that these funds are transparently used to meet development needs rather than adding to the nation’s debt burden,” Tella said.
He also advocated for private sector collaboration in addressing Nigeria’s infrastructure deficit. “Governments should create regulatory frameworks while allowing private firms to invest and manage infrastructure projects, similar to successful models in other countries,” he added.
