Taking Loans Is Not the Problem; It’s What They Are Used For”

Lagos — Economic analyst and public affairs commentator, Mr. Fanimo, has stated that Nigeria’s persistent economic challenges are not necessarily caused by borrowing, but by the mismanagement and poor utilization of loans obtained by the government.

Speaking during a live discussion on VOP TV, Fanimo lamented that despite decades of borrowing and repeated promises of reform, Nigeria continues to face critical infrastructure deficits, particularly in the power sector.

“There has never been a time we have generated enough electricity in this country. Taking loans is not the problem; it’s what they are used for,” Fanimo said.

He explained that countries around the world take loans to develop their economies, but the difference lies in how the borrowed funds are strategically invested in productive sectors that yield measurable growth and create jobs.

According to him, Nigeria’s inability to achieve steady power supply despite billions of dollars spent on the sector reflects a lack of transparency, poor planning, and corruption.

“Every administration talks about improving power, yet we remain in darkness. Until we begin to use borrowed funds for genuine development projects, the economy will remain stagnant,” he added.

Fanimo also urged the Federal Government to prioritize accountability and value-driven spending, insisting that loan transparency should be tied to performance metrics and public reporting.

His remarks come amid growing concerns over Nigeria’s rising debt profile and slow economic growth, with experts warning that mismanaged borrowing could further weaken the country’s fiscal stability.