Politics
As FG Borrowing Exceeds N22trn, Impact on Economy Negligible
The seeming voracious appetite for borrowing by the Federal Government (FG), undertaken in the past 5 years has continued to remain a cause for concern to many, including financial experts, Nigerians and analysts.
As at the end of 2019, the FG had racked up about $67 billion – some N22 trillion – in debt, according to data from the Debt Management Office or (DMO).
With about 35 percent of the loans taken externally and still counting, experts have noted that the funds sourced as loans intended to be injected in capital projects are often spent on recurrent expenditure where there is high presence of corruption and is mainly the reason for little or no results with little impact whatsoever felt by Nigerians.
According to BudgIT 2019 report, Nigeria’s debt service to revenue ratio is has hit over 60 per cent relative to 22.5 per cent threshold advised by the World Bank; which means for every N100 earned by the government, N60 is used for debt servicing, leaving the government with N40.
Reports from the DMO show that, Nigeria’s debt, at the end of March 2015, stood at N12 trillion.
At the end of June 2015, this debt had risen slightly to N12.1 trillion.
By the end of June 2018, total public debt had almost doubled to N22.4 trillion. The debt office said the increase comprised of a $2.5 billion Eurobond issued by the government in February 2018.
This took Nigeria’s total debt to US$73.2 billion, using the Central Bank of Nigeria’s 2018 exchange rate of N305.
In any case, the DMO justified the borrowings in its 2017 report on Nigeria’s national debt, stating that the country’s total public debt stock is relatively low vis-à-vis the country’s GDP, the report also added that increased funding requirements needed to sustain economic recovery, address the huge infrastructural deficit, as well as meet budget financing requirements, would entail enormous funding resources, including more borrowing.
The worry about FG borrowing analysts have further argued is largely about transparency and not that borrowing is bad.
“If you take a loan based on infrastructural gap, the people should be able to see and feel the impact of the loan and see the gradual and consistent close in the infrastructural gap,” said Joe Femi Dagunro, Ex -President, Nigerian-German Business Group.
He explained: “If our country’s debt service to revenue ratio, which is about 60 per cent and our growth rate, is about two per cent, there is a good reason for concern. I want the government to focus on some key areas of infrastructural development such as electricity, health, agriculture, road construction, power and maintenance.”
The ratio is forecast to rise to 75 percent.
Dagunro called on the FG to be transparent about its borrowing and explain full details of the loans and what they have been used for.
Prof Olufemi Saibu of the economics department at the University of Lagos focuses on development macroeconomics and public finance.
“The debt profile is high and now getting to the red line” Saibu said. “The problem is that the debt cannot continue to increase; there must be a check on it. And the question is, what are they using the debt for? The quality of projects, productivity and impact of the projects are what matters.”
Former Deputy Governor, Central Bank of Nigeria, Obadiah Mailafia also commented on the country’s debt profile, during an interview on channels, saying there is nothing wrong with borrowing but the purpose must be well spelt out to achieve a well-defined objective.
“From 2014 at N11trillion to N22.4 trillion in 2018, what we have is a 100% jump. If you recall in 2005, when we settled the Paris club debt, our total debt stock was about $36 billion and today we have double that figure already. That worries me greatly,” Mailafia said.
Chairman, Chartered Institute of Bankers of Nigeria, Abuja chapter, Prof. Uche Uwaleke said the Federal Government’s strategy of increasingly resorting to external borrowing to fund budget deficit finds explanation in the increasing cost of servicing domestic debt.
This disposition, he added accounts for the growing quantum of foreign debts contracted on commercial terms in recent times with much emphasis on tapping the Eurobond markets.
“Nevertheless, the preponderance of fragilities in the Nigerian economy warrant a cautious approach to new external borrowing – one that is shy of non-concessional loans contracted purely on commercial terms such as Eurobonds. Indeed, the country can only hope that there are no more currency shocks in the near future,” Uwaleke said.
Governor Dauda Lawal Named Part of Presidential Delegation for Historic UK State Visit
Governor Dauda Lawal of Zamfara State has been named as a member of the presidential entourage that will accompany President Bola Ahmed Tinubu and First Lady Oluremi Tinubu on a historic two-day State Visit to the United Kingdom.
According to a statement from the Zamfara State Government House on Monday, the Governor will depart Abuja for the UK on Tuesday for the visit, which is scheduled to take place on March 18 and 19 at the invitation of the British Royal Family.
During the visit, King Charles III will host President Tinubu, the First Lady, and the Nigerian delegation at Windsor Castle, where they will view a special exhibition of Royal Collection items related to Nigeria. The Royal Family will also host a State Banquet in honour of the Nigerian guests on the evening of Wednesday, March 18.
The presidency has outlined that the purpose of the visit is to strengthen bilateral relations between Nigeria and the United Kingdom. President Tinubu is scheduled to hold talks with Prime Minister Keir Starmer, which are expected to lead to expanded bilateral discussions and the signing of Memorandums of Understanding covering trade, investment, defence, and cultural cooperation.
The President will also serve as the guest of honour at the Nigerian Modernism exhibition, which showcases contemporary art and culture, and will participate in a reception with Nigerian and British business leaders as well as members of the diaspora community.
The Zamfara State Government expressed confidence that Governor Lawal’s participation in the high-level delegation will provide valuable networking opportunities, opening significant prospects for investment and economic benefits for Zamfara State. The visit will also see Governor Lawal display his repertoire of knowledge on global policy and corporate governance and also pitch the Mineral and Farming rich state to potential investors during the bilateral meeting with the UK Prime Minister, Keir Starmer.
Politics
LPDC Verdict: CRG Hails Decision Clearing Deputy Speaker Benjamin Kalu, Condemns Political Witch-Hunt
LPDC Verdict: CRG Hails Decision Clearing Deputy Speaker Benjamin Kalu, Condemns Political Witch-Hunt
The Centre for Responsible Governance (CRG) has welcomed the decision of the Legal Practitioners Disciplinary Committee (LPDC) dismissing the complaint filed against the Deputy Speaker of the House of Representatives, Benjamin Okezie Kalu, describing the ruling as a clear affirmation of due process and institutional integrity.
In a press statement issued on Thursday, the spokesman of the Centre, Obande George, said the verdict of the disciplinary body has once again vindicated the Deputy Speaker and reaffirmed the position earlier taken by CRG that the allegations against him lacked merit.
The LPDC, in its ruling referenced BB/LPDC/1954/2026, held that no prima facie case had been established against the Deputy Speaker and dismissed the complaint in its entirety.
According to George, the decision demonstrates the importance of allowing competent institutions to examine allegations objectively rather than rushing to judgment in the court of public opinion.
“From the onset, the Centre for Responsible Governance maintained that justice must take its course. We insisted that competent institutions should be allowed to examine the issues without political pressure or sensationalism. The LPDC’s ruling has now clearly shown that the allegations had no foundation,” he said.
The CRG spokesman further stated that the decision reinforces the sterling reputation of the Deputy Speaker, who has over the years built a distinguished profile both as a legal practitioner and as a legislator.
“Honourable Benjamin Kalu is a respected member of the Nigerian Bar and an accomplished lawmaker. Attempts by some individuals to impugn his reputation through unfounded allegations were unfortunate and unnecessary.”
CRG also condemned the actions of certain civil society groups that were quick to demand that the Deputy Speaker step aside from office even before any formal determination had been made by the relevant authorities.
George described such calls as premature and irresponsible, noting that they contributed to the politicisation of a matter that required sober institutional review.
“It is disappointing that some civil society organisations rushed to demand that the Deputy Speaker step aside without allowing due process to run its course. Advocacy for accountability must be guided by facts and fairness, not by sensational pressure.”
The organisation also criticised what it described as the role played by some political actors from the South East who allegedly sought to exploit the controversy for narrow political interests.
According to CRG, it is troubling that certain politicians would attempt to undermine one of their own for short-term political advantage.
“It is even more disturbing that some political actors from the South East appeared eager to weaponise this matter in an attempt to bring down one of their own for cheap political gain. Such actions weaken collective political progress and erode the spirit of solidarity required for national development.”
CRG therefore called on Nigerians to learn from the episode and reaffirm respect for institutional processes and the rule of law.
The organisation stressed that public discourse must be guided by evidence, fairness and responsible engagement rather than rumours or politically motivated campaigns.
“The lesson here is simple: allegations must be tested by competent institutions before conclusions are drawn. Nigeria’s democracy will only grow stronger when due process is respected and reputations are not casually destroyed.”
CRG concluded by congratulating the Deputy Speaker for maintaining calm and dignity throughout the controversy, noting that his composure reflected confidence in the justice system.
@The Centre for Responsible Governance, Email: [email protected], Instagram: crgngo6, Twitter: crgng06, Threads: crgngo6
Obasa Appointed to CPA African Executive Committee
The Speaker of the Lagos State House of Assembly, Rt. Hon. (Dr.) Mudashiru Ajayi Obasa, has been appointed as a Sub-National Representative to the Commonwealth Parliamentary Association (CPA) African Executive Committee.
The announcement was formally conveyed through a letter from the CPA Africa Region, which was read on the floor of the Assembly by the Clerk, Mr. Olalekan Onafeko, on Tuesday, March 10. The appointment confirms Speaker Obasa’s three-year tenure, spanning 2026 to 2029.
Lawmakers took turns to congratulate Speaker Obasa, praising his devotion to parliamentary service and his consistent efforts to strengthen legislative practice. They described his appointment as a recognition of his hard work and a reflection of Lagos State’s growing influence within the Commonwealth. Members noted that his achievements continue to bring pride not only to Lagos but to Nigeria as a whole.
In his remarks, Speaker Obasa expressed gratitude to his colleagues for their support, urging them to remain steadfast in prioritizing the progress of the Assembly and to continue working collectively to advance the legislature. He further directed the Clerk to send a formal letter of appreciation to the CPA African Region for the honour bestowed upon him. “Let us always put the House of Assembly first and never relent in our efforts to move the legislature forward, ” Obasa concluded.
The CPA African Region plays a pivotal role in advancing the interests of African parliaments within the Commonwealth. It is widely recognized for promoting gender equality, women’s empowerment, respect for human rights, democracy, and good governance across member nations.
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