Tope Fasua, who serves as the special advisor on economic matters to President Bola Tinubu, has called on Nigerian leaders to strategically utilize government borrowing for the purpose of creating productive enterprises that would enhance the country’s economic growth.
He made these remarks at a recent event held at Nile University, Abuja, on Thursday.
The lecture was entitled 'Public Debt Sustainability and Fiscal Responsibility in Nigeria,' hosted by the Faculty of Arts and Social Sciences (FASS) during its fourth annual lecture series.
In his address, Mr. Fasua highlighted the importance of prudent fiscal management to facilitate the establishment of enduring projects that do not merely satisfy immediate whims. He stated that focusing on substantial endeavors rather than trivial expenses is crucial for the nation's prosperity.
“It’s more beneficial to invest government debt in vital infrastructure like airports that will generate future revenue and job opportunities, rather than providing cash handouts. Countries such as the United States generate significant income from their numerous airports, which surpasses ours,” he remarked.
He further noted that the Federal Government cannot singularly propel development, as its role often acts as a coordinating body rather than having direct control over land and local resources. This situation prompts essential questions regarding the development activities of state governments, their financial health, and their debt management practices. “While it’s convenient to place blame on the Federal Government, development is a collective task that society must undertake at all levels of governance,” he asserted.
Mr. Fasua, a prominent economist and chief executive officer of Global Analytics Consulting, stressed that the responsibility of developing Nigeria is not solely on Abuja. He urged both advocates and citizens to hold local leaders accountable for their actions.
He pointed out Nigeria’s comparatively low levels of government borrowing relative to advanced nations such as Japan, China, and the United States, expressing that citizens should not be taken aback by the necessity for borrowing aimed at improving social amenities.
Calling on young Nigerians, professionals, as well as policymakers, he underscored the importance of cultivating a mindset focused on fiscal accountability and engaging in the discourse regarding the economic future of the nation.
“Nigeria is still evolving. Although it may seem that decades of democracy should have brought about substantial changes, progress is a gradual and complex process,” he noted.
Mr. Fasua concluded by stating, “Fiscal responsibility involves not only the limitation of borrowing but also the effective use of borrowed funds to stimulate growth and development. The challenge for Nigeria is not the magnitude of its debt, but rather the efficient utilization of those resources.”
Dean Jide Oladipo of FASS highlighted the significance of the lecture series as a platform that fosters academic engagement, interdisciplinary dialogue, and the spread of knowledge within and beyond the university community.
The series aims to connect scholars, industry practitioners, and students to discuss current issues in the field of arts, humanities, and social sciences, thereby serving as a critical platform for exploring themes like economic development and governance.
Oladipo, a professor of economics, emphasized the objective of bridging the theoretical-practical gap by promoting evidence-based discussions that provide insights into real-world policy.
In an assessment of the lecture, Nnanna Ohuche, a master’s student in economics, expressed that the event clarified the complexities associated with public sector borrowing and debt management.
Olasope, an undergraduate student in communications, described the lecture as an eye-opener that encouraged her to examine the underlying factors driving government debt in less-developed countries, reshaping her previous beliefs.
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