Tanimu Yakubu, Director-General of the Budget Office of the Federation, has criticised a recent commentary by Suyi Ayodele on the economic policies of President Bola Tinubu, describing it as based on misunderstandings of public finance and macroeconomic policy.
Yakubu said the argument questioning why the Federal Government continues to borrow after removing fuel subsidies rests on a “false premise,” noting that subsidy removal creates fiscal space rather than immediate surplus funds. He explained that Nigeria still faces major infrastructure gaps, revenue constraints and legacy debt obligations that make borrowing necessary during economic transition.
He also rejected claims equating borrowing with fiscal weakness, stating that sovereign borrowing is a standard tool used globally for development financing. According to him, loans tied to infrastructure such as port rehabilitation are intended to reduce trade costs, improve competitiveness and expand long-term government revenue.
Responding to concerns about financing arrangements involving UK Export Finance, Yakubu said export credit conditions requiring partial sourcing from lender countries are standard international practice and are used by major economies to support domestic industries while enabling infrastructure development abroad.
He further addressed references to the long-stalled Ajaokuta Steel Company, arguing that its challenges stem from decades of institutional and contractual issues rather than external financing decisions. He added that improved port infrastructure would support, rather than undermine, the development of a viable steel sector.
Yakubu also clarified that Nigeria’s foreign reserves are not discretionary funds available for infrastructure spending, describing them instead as macroeconomic buffers used to stabilise the exchange rate, meet external obligations and sustain investor confidence.
On migration cooperation with foreign governments, he said readmission agreements are standard diplomatic instruments that require countries to accept responsibility for their nationals abroad and should not be interpreted as a loss of sovereignty.
He dismissed comparisons with the Anglo‑Nigerian Defence Pact as historically misplaced, stressing that current engagements relate to economic cooperation rather than military alignment.
Yakubu concluded that while criticism of government policy is legitimate and necessary, public debate on Nigeria’s economic reforms should be grounded in accurate understanding of fiscal consolidation strategies and capital financing frameworks rather than what he described as “rhetorical misconceptions.”
