SNOW TV NEWS DESK
A Fellow of the Institute of Credit Administration, Asiwaju Busari Shaamsuddeen Akande, has cautioned President Bola Tinubu against excessive borrowing to fund infrastructure development, urging the Federal Government to explore alternative financing models, including asset-backed funding and Public-Private Partnerships (PPPs).
Akande warned that Nigeria’s ambition of achieving a $1 trillion economy by 2030 could be threatened if the government continued accumulating public debts without ensuring that infrastructure investments generated adequate economic returns.
His advice comes amid renewed efforts by the Tinubu administration to secure additional external loans for government projects.
Assessing the country’s economic direction, the financial expert stressed that the success of infrastructure development should not be measured solely by the number of projects completed but by their ability to stimulate industrial production, expand business activities, and increase government revenue.
He explained that excessive borrowing for projects with lengthy completion and revenue-generation periods could create serious financial challenges, particularly when immediate debt-servicing obligations arise before the investments begin generating returns.
Akande recommended that the government reduce its dependence on conventional loans by embracing Public-Private Partnerships and sovereign Sukuk financing.
According to him, these funding arrangements would encourage private-sector participation in infrastructure development while distributing the financial and commercial risks among stakeholders.
He also raised concerns that high government borrowing costs could weaken private-sector access to credit. This, he explained, could happen when commercial banks prefer investing in government securities that offer attractive returns rather than lending to businesses.
The expert further emphasized the need to connect infrastructure projects to industrial and agricultural production centers to ensure that businesses, particularly small and medium-scale enterprises, benefit directly from improved infrastructure.
He proposed that the government establish sustainable mechanisms for channeling a portion of revenue generated from infrastructure investments towards public debt reduction.
Akande, who is also a Certified Islamic Finance Executive, maintained that achieving the $1 trillion economic target would depend not simply on increased government expenditure but on productive investments, inclusive economic opportunities, and responsible public debt management.
SNOW TV EDITORIAL ANALYSIS
Akande’s warning highlights a critical challenge facing Nigeria’s economic ambitions: the need to balance infrastructure development with sustainable debt management. While borrowing can accelerate development, excessive debt without corresponding economic returns risks placing additional pressure on public finances and future generations. Asset-backed financing, Sukuk and private-sector partnerships offer promising alternatives, provided they are transparently managed.
The Tinubu administration must prioritize projects that generate measurable economic value, create jobs, and strengthen local industries. Ultimately, Nigeria’s path to a $1 trillion economy should be driven by productivity and financial discipline rather than an expanding debt profile.
“Sir Bartholomew White Ebe is a Lagos-based media personality, Music Artist, Producer, and a Relationship Coach and independent journalist. With over seven years of experience tracking political developments and cultural shifts in Nigeria, he specializes in local current affairs, grassroots politics, and community-driven reporting across Lagos State. As the founder and chief editor of Snow Multimedia Connect {SNOW TV}, he leads the editorial team to deliver verified, high-impact stories to digital audiences.”
Email: snowmediaconnect@gmail.com
