Borrowed Into Bankruptcy: How Nigeria’s Debt Spiral Under the APC Is Scaring Away Investors.

George Omagbemi Sylvester | SaharaWeeklyNG.com

Debt-shackled Nigeria now pays in fear, while investors flee the drowning ship.

Nigeria stands today not as a rising economy but as a nation drowning in debt and the warning lights flashing are not faint. The eminent legal icon, Afe Babalola SAN, pulled no punches when he declared that the country’s worsening debt profile is undermining investor confidence and that our banks are complaining that the Central Bank of Nigeria (CBN) can no longer honour government promissory notes.

In blunt terms: we borrowed, we did little that shows value and now we are paying dearly. This is not mere theory, but the harsh reality confronting Nigeria as borrowing has become a substitute for sound economic policy and productive investment. The result, investors are watching, waiting and many are leaving. The so-called “PROGRESS” under the ruling All Progressives Congress (APC) has turned into a spectacle of empty coffers, ballooning liabilities and vanishing credibility.

1. A growing mountain of debt:
According to the very same Babalola, Nigeria’s total public debt currently stands at around ₦152.4 trillion (US $99.7 billion) a figure he described as testimony to our status today as a “BIG DEBTOR COUNTRY.”
Independent data reinforce this staggering trend and as of March 31 2025, Nigeria’s public debt was roughly ₦149.39 trillion (≈US$97.24 billion) with domestic debt accounting for about 52.72% and external debt around 47.28%.

Other analysts forecast the total debt could surge to ₦187.79 trillion by the end of 2025 according to the BUDGIT FOUNDATION. This is not static debt at a comfortable level, but an explosive borrowing, with debt-to-GDP ratios rising, debt-service burdens growing and the capacity for repayment shrinking.

2. Investor confidence in retreat:
Why do investors care? Because enormous sovereign borrowing sends chilling signals. The government is diverting capital away from GROWTH-ENHANCING investment into debt servicing.

Risk premiums rise. Lenders demand higher rates. Firms face crowding out.

The banking sector is bearing the strain, when the sovereign borrows from banks, those banks may lack the ability to lend to the private sector. In fact, the International Monetary Fund (IMF) cautioned that Nigeria’s reliance on domestic debt and oil are exposing it to financial stability risks. It warned that “interest payments in Nigeria have risen to above 30 % of government revenues, crowding out the private sector and limiting fiscal flexibility.”

Kristalina Georgieva, IMF Managing Director, put it plainly: “very high levels of debt suffocate economies.”

And Babalola’s observation is telling “most business companies from other countries do not want to invest in this debtor country.” By borrowing recklessly, Nigeria has sent a loud message to investors “We may not be able to fulfil our obligations.”

3. The looting & LACK-OF-DELIVERY narrative:
Borrowing in itself is not a sin; if it is used productively. But here’s the rub, what is on display to show for the massive borrowings under the APC government? The litany is familiar, oil-price dependency, subsidy burdens, recurrent expenditures rather than capital projects, STATE-GOVERNMENT borrowings to pay salaries.

An open letter to the Guardian warned:
“Many governors have borrowed massively to fund recurrent expenditures such as salaries. This culture of reckless borrowing without a clear repayment strategy has further worsened Nigeria’s economic vulnerabilities.”

That is the message; debt without transformation. Yielding little in terms of infrastructure for growth, jobs or sustainable revenue. And when the standard of living falls while debt rises, the population knows, the money was not used well or was not used at all. The APC-era borrowing spree now looks less like investment and more like a mortgaging of Nigeria’s future with nothing obvious to show.

4. Banking sector under pressure:
It is no coincidence that Babalola mentioned complaints from banks that the CBN is unable to honour government promissory notes. This reflects the “BANK-SOVEREIGN NEXUS” risk flagged by the IMF, where governments lean heavily on domestic banking systems to finance deficits, increasing systemic risk. When banks balance sheets are laden with sovereign debt instead of lending to entrepreneurs, small businesses shrink, job creation falters and the economy slows. Nigeria is already showing signs of this CROWDING-OUT effect, yet the borrowing continues.

5. Structural weaknesses amplified by debt:
Debt is not just a fiscal issue, it is STRUCTURAL. Nigeria remains overly dependent on oil revenues, which are volatile by nature. The IMF warns that this dependence combined with rising domestic debt poses a major threat to stability.
When revenues fluctuate and debt obligations remain fixed (or grow), liquidity crises loom. The loss of investor trust is amplified when MACRO-FUNDAMENTALS. are weak. In short, when you borrow because your economy cannot raise revenue, you dig the pit deeper.

6. Clear quotes to underscore the danger:
Afe Babalola “Our banks are complaining that the Central Bank is not honouring PROMISSORY NOTES, the federal government is in debt and cannot pay the Central Bank.”

IMF Director Abebe Aemro Selassie “We are now sitting in a situation where there are significant vulnerabilities, particularly in those countries where public debt is high and interest rates are high.” IMF Managing Director Kristalina Georgieva; “Very high levels of debt suffocate economies.”

These authoritative voices ring loud alarms and none are optimistic about Nigeria’s trajectory without urgent correction.

7. The hypocrisy of “progress” under APC:
Let us not mince words, the APC government promised prosperity. Instead, it has delivered indebtedness. Massive borrowing but little transparency. Fiscal responsibility but rampant deficit. Infrastructure promises but recurring expenditures. And now, the cost is being borne by ordinary Nigerians through inflation, declining public services, higher taxes, fewer jobs and the risk of being sold out in debt reschedules or bail-outs.
If the loans were honest, productive and accountable, perhaps the story would differ. But when you borrow and the harvest does not show up, you leave future generations to carry the burden.

8. What must be done—NO MORE ILLUSIONS:
a. Immediate debt-management discipline: Nigeria must stop borrowing for recurrent expenditures and ensure that any new loans are for growth-yielding investment.
b. Transparency & oversight: The National Assembly, Debt Management Office (DMO) and civil society must demand full account of how every borrowed naira was used. As analysts write: “over 80 % of government revenue is now allocated to servicing debts, leaving minimal funds for essential services.”
c. Economic diversification and revenue generation: Nigeria cannot continue chasing oil spikes. Non-oil sectors must be mobilised, tax bases broadened, and waste eliminated.
d. Protect the banking sector, free the private sector: Avoid feedback loops where sovereign borrowing starves the bank-loan channel to private business.
e. Investor-friendly reforms not just borrowed rhetoric: Restore confidence by honouring obligations (promissory notes, matured bonds), stabilising macro-economics and giving visible returns on borrowed capital.

9. Reality Check: A warning we cannot ignore:
The message from Afe Babalola is unambiguous, Nigeria is a debtor nation first, an investment destination second. The fact that “business companies from other countries do not want to invest in this debtor country” is a condemnation, not a prediction.
When a country borrows without visible returns, it mortgaging its sovereignty, weakening its CREDIT-STANDING and resigning its youth to unfulfilled promise. The APC may have the majority, but even the majority cannot hide the mounting liabilities. This is not partisanship (it is accountability. This is not panic) it is reality.

If nothing changes, we will not borrow our way to greatness. Instead, we will borrow ourselves into irrelevance.

The time to act was yesterday. If Nigeria fails to reform its debt habits now, the reckoning will come tomorrow, with far greater cost. And investors already see the warning signs. It is the government’s turn to act.

Published by SaharaWeeklyNG.com
Author: George Omagbemi Sylvester

Why I Opened DDCharis Pathways CBT Centre- Buska

A human rights activist and member of Yoruba Self Determination Group, Rasaq Oladosu Obasola, popularly known as BUSKA , has been speaking why he opened DDCharis Pathways CBT Centre.

BUSKA, while speaking with newsmen at the weekend said his interest in human capital development and the need to focus more on knowledge based economy was responsible.

” I have done my research ; from India to China and Bangladesh, these countries seem to have focus more on knowledge based economy and it’s paying off now.

” I think given our youthful population and the need to diversification of the economy. The youths seem to be at home with the information technology- hence, I have decided to contribute my quota by adding my Centre to the existing ones,” BUSKA added.

According to him, DD Charis Pathways CBT Centre is a child of necessity because of our youthful growing population.

The Centre which boasts of over 300 PCs and power sources which include 100KVA generator and the 20KVA Solar inverter with lithium battery is located @ No 6, OTUNBA Street, Ojodu, Lagos.

He, however, commended the President Bola Tinubu’s administration and Prof Oloyede’s led UME for innovation in the education sector.

BUSKA, a retiree librarian from the National Library said with the inclusion of WASCE and NECO in the computer based examination, a good foundation, according to him would be laid for our pupils to be able to compete favourably anywhere in the world.

Obasa rallies party members at Lagos APC stakeholders’ forum

Ahead of the 2027 general election, Speaker of the Lagos State House of Assembly, Rt. Hon. (Dr) Mudashiru Obasa has assured members of the All Progressives Congress, APC, that the leadership will continue to support them so that they can effectively mobilise votes for the party.

Obasa made this promise in his address at the maiden Lagos State APC Stakeholders Forum held at the convention centre of the Eko Hotel and Suites on Tuesday, October 21.

The forum was attended by a broad spectrum of party leaders, caucuses, and faithful, including ministers, senators, federal and state lawmakers, members of the Lagos State executive council, local government chairmen, royal fathers, and representatives of various trade associations.

In his brief yet impactful remarks, Speaker Obasa addressed a critical concern among party members regarding the reward system for those who dedicate themselves to the party before and during elections. He encouraged them to remain focused, cooperative, and diligent as they prepare for the 2027 elections, particularly in support of President Bola Ahmed Tinubu’s re-election bid.

Speaker Obasa said, “We will continue to support you so that you will be motivated to keep working for the success of the party at all levels.”

Obasa also endorsed Governor Babajide Sanwo-Olu’s motion calling for President Tinubu’s re-election.

Similarly, former Governor Babatunde Raji Fashola in his presentation themed: “Voter Apathy and the Sanctity of Election in Nigeria’s Budding Democracy,” also cited a poor reward system as a major factor why members of any political party will become lethargic in matters concerning the party.

According to the former Minister of Works and Housing, “Political party participation is based on enthusiasm. Therefore, to avoid voter apathy, we must interrogate the reward system for our members.”
He urged the party to strengthen its internal reward system as a means of motivating party members and sustaining their commitment to the party’s success.

Fashola also lauded the state chapter of the party for convening the forum, and urged its continuity and spread across the nation.

Earlier, Cornelius Ojelabi, the state chairman of the APC, thanked lagosians for supporting the party during the last LG election, and all those who contested, for their commitment and support. He assured that those who lost would get a refund of the money spent in purchasing nomination forms, a commitment he said was made by President Tinubu, and which the party is duty-bound to fulfill.