Adedipe urges disciplined borrowing, deeper reforms to sustain Nigeria’s economic gains

By Josiah Nkemakolam

Professor Biodun Adedipe has called for greater discipline, transparency and accountability in Nigeria’s borrowing strategy, stressing that sovereign debt should only be used to finance productive investments capable of generating sufficient economic returns to repay the loans. Speaking at the Business Hallmark virtual policy dialogue, the economist said public borrowing remains necessary for national development but must be managed prudently to strengthen fiscal sustainability.

Adedipe argued that governments should prioritise concessionary financing for projects that enhance productivity and create long-term value for the economy. According to him, borrowed funds should be channelled into self-liquidating investments rather than recurrent expenditure, ensuring that debt contributes directly to economic growth and development.

“It must be disciplined, transparent, productive and accountable,” Adedipe said, while emphasising the need for stricter oversight of public borrowing. He also urged policymakers to pay close attention to Nigeria’s debt-service-to-revenue ratio, describing it as one of the most important indicators of the country’s fiscal health.
Beyond debt management, Adedipe said Nigeria’s reform agenda should now focus on consolidating the gains already achieved rather than reversing ongoing policies.

He maintained that the national conversation should centre on expanding the benefits of reforms to more sectors of the economy and a broader segment of the population.
He identified economic diversification, industrialisation, manufacturing growth, fiscal reforms, exchange-rate stability, capital market development, job creation and poverty reduction as critical areas requiring sustained policy attention. According to him, progress in these sectors will determine the country’s ability to build a more resilient and inclusive economy.

The economist also underscored the importance of exchange-rate stability, describing it as a key condition for reducing inflation, attracting investment and supporting Nigeria’s ambition of becoming a $1 trillion economy. He said maintaining a stable currency would improve investor confidence while helping businesses plan and expand with greater certainty.

Adedipe further argued that future economic policies must balance efficiency with equity, social welfare and sustainability to ensure reforms deliver broad-based prosperity. He noted that while economic efficiency is important, policymakers must also consider the social impact of reforms to secure long-term public support and inclusive growth.
“The time to new equilibrium can be shortened by accelerated and wider-spread growth, and continued efforts towards single-digit inflation. The key factor in all these is stable exchange rate,” Adedipe said.

He maintained that despite persistent domestic challenges and global economic uncertainty, Nigeria’s reform programme is beginning to produce measurable economic gains, adding that sustained implementation will be essential to deepen the progress already made.