Connect with us

Politics

As FG Borrowing Exceeds N22trn, Impact on Economy Negligible

Published

on

CUSTOMSGATE: $3 BILLION PROJECT RUNS INTO DISPUTE

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.

Politics

Ogun 2027: Senator Adeola Yayi Promises Inclusive Governance, Says, Ogun APC Primaries Peaceful, Transparent

Published

on

Ogun 2027: Senator Adeola Yayi Promises Inclusive Governance, Says, Ogun APC Primaries Peaceful, Transparent

…Dismisses Claims of Discontent Over Emergence as APC Consensus Candidate

 

ILARO-YEWA, OGUN STATE, NIGERIA – The Ogun State All Progressives Congress (APC) consensus candidate for the 2027 governorship election, distinguished Senator Solomon Olamilekan Adeola, has assured the people of the state that he would run an all-inclusive government if elected governor in 2027.

 

Fondly called Yayi, the senator currently representing Ogun West in the Red Chamber of the National Assembly made this known on Thursday, May 21, 2026, shortly after participating in the governorship primary at Pahayi, Ilaro Ward 1.

 

Speaking with journalists, Senator Adeola Yayi assured party members that he would not disappoint them if elected governor, pledging to deliver good governance while sustaining the developmental strides of the administration of Governor Dapo Abiodun.

 

According to him, “I want to assure the people that I will run an inclusive government and carry everyone along. It will be an administration that leaves no group or interest behind.”

 

The senator commended party faithful for the peaceful and orderly conduct of the governorship primaries, noting that the exercise reflected the unity and cohesion within the party.

 

Senator Adeola Yayi further expressed delight that the primary election was conducted peacefully across the state, describing the turnout of party members during the direct primary exercise as a strong indication that the APC remains formidable and well-positioned to record landslide victories in the 2027 general elections.

 

He also expressed gratitude to President Bola Ahmed Tinubu and Governor Dapo Abiodun for sustaining the internal democracy for which the ruling party is reputed, while reiterating his readiness to run an open and inclusive administration.

 

Fielding questions during the press interaction, the Ogun State APC consensus governorship candidate dismissed claims that some aspirants were aggrieved over his emergence as the party’s consensus candidate.

 

According to him, his emergence was not imposed on the party but was the outcome of extensive consultations and consensus among stakeholders and party leaders across the three senatorial districts of the state.

 

“I am not aware of any aggrieved aspirants over my emergence as the governorship consensus candidate of our dear party. The decision to present me as the consensus candidate was not foisted on the party.

 

“Rather, it was the result of far-reaching consultations and agreements among stakeholders and leaders of the party across the three senatorial districts of the state.

 

“To my knowledge, nobody was cheated and nobody was disenfranchised. I received overwhelming support at the Ogun State APC strategic meeting held at the party secretariat. Thereafter, I met with other aspirants, and we are all committed to working together for the betterment of the people of Ogun State”, he stated.

 

The senator, who was widely cheered across Ilaro metropolis, polled 3,023 votes at Pahayi Ilaro Ward 1, 2,601 votes in Ilaro Ward 2, and 2,419 votes in Ward 3. He later monitored the exercise in Ilaro Ward 2 and Ward 3, where party members and supporters hailed him enthusiastically at every stop.

 

The massive turnout of APC members across polling units in Ogun West, and indeed across Ogun State, was seen by observers of the scene as a demonstration of the widespread acceptance and popularity of the Chairman of the Senate Committee on Appropriations among the people, without any form of inducement.

 

Ogun 2027: Senator Adeola Yayi Promises Inclusive Governance, Says, Ogun APC Primaries Peaceful, Transparent

Continue Reading

Politics

Rainbow Coalition Ambassadors Hails Rivers APC Over Peaceful Conduct of Guber Primaries

Published

on

*Rainbow Coalition Ambassadors Hails Rivers APC Over Peaceful Conduct of Guber Primaries*

Charges Chinda to Be Magnanimous in Victory as a Patriot

The Rainbow Coalition Ambassadors (RCA) has commended the All Progressives Congress (APC) in Rivers State for the peaceful and orderly conduct of its governorship primaries, describing the process as a shining example of political maturity and a departure from the state’s history of acrimonious contests.

In a statement signed by Comrade Jude Chuks and issued shortly after the declaration of Rt. Hon. Kingsley Ogundu Chinda as the party’s candidate for the 2027 governorship election, the group praised the APC leadership and stakeholders for ensuring a rancour-free exercise.

The Rainbow Coalition Ambassadors, a prominent support structure aligned with the broader Rainbow Coalition political movement in the state, noted that the smooth conduct of the primaries reflects growing commitment to unity, dialogue, and collective progress ahead of the 2027 polls.

“We congratulate the Rivers State APC for conducting a credible, transparent, and peaceful primary. This achievement underscores the maturing democratic culture in our state and sets a positive tone for the political season,” Chuks read.

The group specifically hailed the withdrawals of key aspirants, including Governor Siminalayi Fubara and Tonye Cole, which paved the way for Chinda’s emergence, describing the moves as “statesmanlike decisions taken in the supreme interest of peace and party cohesion.

While celebrating the outcome, the Rainbow Coalition Ambassadors charged the new flag bearer to remain magnanimous in victory and demonstrate the spirit of a true patriot.

“Victory at the primary is not an end in itself but a call to higher responsibility. We urge Hon. Kingsley Chinda to extend a hand of fellowship to all other aspirants, stakeholders, and even those outside the APC.

“True leadership demands inclusivity, humility, and the ability to heal divides rather than widen them,” the ambassadors emphasised.

They further appealed to Chinda to prioritise broad-based consultations, youth and women inclusion, and the welfare of Rivers people in his campaign and future governance plans, noting his legislative experience and cross-party relationships as key assets.

The group, however, expressed optimism that, knowing Chinda’s antecedents as a seasoned lawmaker, bridge-builder, and consistent advocate for good governance, he will unify the party, foster inclusive development, and deliver people-oriented leadership that prioritises the welfare of all Rivers people across party lines.

Continue Reading

Politics

Obasa Warns Dissidents as Agege Affirms Hamzat as APC governorship candidate

Published

on

Obasa Warns Dissidents as Agege Affirms Hamzat as APC governorship candidate

Obasa Warns Dissidents as Agege Affirms Hamzat as APC governorship candidate

 

Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, has issued a strong warning to dissidents within the All Progressives Congress, APC, that are spreading false reports about the House of Assembly primaries held Wednesday, May 20 across all the wards in the local government.

 

Supervising officers from the Independent National Electoral Commission (INEC) announced the immediate past Executive Chairman of Agege Local Government Area, High Chief Ganiyu Kola Egunjobi, and Barrister. Azeez Oladapo Ninalowo as winners of Agege Constituencies I and II respectively. Egunjobi polled 10, 126 votes while Ninalowo scored 12, 455 votes. Both candidates had earlier emerged as consensus aspirants during a caucus meeting of the party presided over by Speaker Obasa last Tuesday.

 

Obasa spoke at the Agege Stadium earlier today, Thursday, May 21, as the APC faithful and stakeholders converged in their thousands to affirm incumbent deputy governor, Dr Obafemi Hamzat, as the consensus candidate of the party in the 2027 governorship election.

 

Speaking on the outcome of the primaries, Obasa declared: “We’ve done everything according to the dictates of the party. Dr Obafemi Kadiri Hamzat is our governorship candidate. Senator Idiat Adebule is our candidate in the Lagos West Senatorial District, and Mudashiru Obasa is the candidate for Agege Federal Constituency in the House of Representatives. Collectively, we have decided and we are standing by the decision of our members.”

 

He commended INEC and security agencies “for helping us to have a free, fair, and transparent exercise devoid of violence and disorderliness.” The Speaker also praised party members for their loyalty and steadfastness, stating: “Agege is always here for the party. We are always present. When you are a member of a party, you should always participate in all its activities. Why will anyone who isn’t here claim to be part of us?

 

“You can’t be absent from all primaries and still claim that you are with us. We have conducted House of Representatives, Senate, House of Assembly, and Governorship primaries, yet some disgruntled party members have consistently stayed away. It is not possible. They are not part of us.”

 

Further, Obasa said: “We should be mindful of the people we send to represent us in any position. If they disregard us, we will wait until their tenure expires and remove them. The beauty of any political structure is continuity. Agege remains a shining example of a well-structured political organisation at the local government level.

 

“Nothing was done by subterfuge; everything was done in the open. INEC, DSS, Police, the media, and party leaders were all present. There’s nothing to fear. If anybody is initiating fake reports, let them continue. Anybody who has a problem should go and challenge the result in court. After the general election, maybe they will wake up,” he added.

 

With Hamzat’s candidacy sealed and Obasa drawing a hard line against internal dissent, Agege has sent a clear message: the APC’s fortress stands on loyalty and discipline, and those unwilling to march in step will be left behind as the party advances toward 2027.

 

Obasa Warns Dissidents as Agege Affirms Hamzat as APC governorship candidate

Continue Reading

Cover Of The Week

Trending