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

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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

 

Borrowed Into Bankruptcy: How Nigeria’s Debt Spiral Under the APC Is Scaring Away Investors.
George Omagbemi Sylvester | SaharaWeeklyNG.com

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REJOINDER: SECURITY AGENCIES ARE NOT TOOLS OF INTIMIDATION BUT INSTITUTIONS OF JUSTICE

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REJOINDER: SECURITY AGENCIES ARE NOT TOOLS OF INTIMIDATION BUT INSTITUTIONS OF JUSTICE.

REJOINDER: SECURITY AGENCIES ARE NOT TOOLS OF INTIMIDATION BUT INSTITUTIONS OF JUSTICE.

 

 

The recent publication titled “Enugu Nursing College Faces Backlash for Using DSS, Police to Intimidate Student Nurse for Exposing Oppression” is a clear attempt to sensationalize a matter that is already before lawful authorities and to deliberately further tarnish the image of Ezzy International College of Nursing Sciences through emotional propaganda, half-truths, and social media trial.

 

For the avoidance of
doubt, the Department of State Services (DSS), the Nigeria Police Force, and other security agencies are constitutional institutions established by law to investigate complaints, establish facts, preserve public order, and ensure justice. Their involvement in any matter does not amount to intimidation. Rather, it reflects the lawful pathway for resolving allegations, especially where there are claims of cyber-bullying, defamation, unauthorized recordings, false publications, and dissemination of misleading information capable of damaging institutional reputation and public confidence.

 

REJOINDER: SECURITY AGENCIES ARE NOT TOOLS OF INTIMIDATION BUT INSTITUTIONS OF JUSTICE.

It is therefore surprising that intellectually poor bloggers and such individuals who continuously make public allegations on social media suddenly describe lawful invitations by security agencies as “oppression.” One cannot publish accusations, circulate inflammatory contents online, mobilize public outrage, and then reject legal scrutiny when called upon to substantiate those claims before competent authorities.

Mr. Francis Nwapa and those behind these coordinated media attacks should understand that social media is not a courtroom, and activism requires truths and fairness that must not place anyone above the law. If allegations have been made publicly against Ezzy International College of Nursing Sciences and its leadership, then the proper and civilized response is to appear before the relevant authorities and provide evidence to substantiate such claims instead of resorting to media blackmail and emotional manipulation.

The attempt to portray every lawful investigation as victimisation is both irresponsible and dangerous. Security agencies are not established to entertain sentiments or online noise; they are empowered to determine truth from falsehood through a due process.
Or could it be that Mr.Francis Nwapa and his cohorts assume themselves untouchable and above the law, even when they churn out lies and deceits against legally established institutions on social media? If Nwapa claims to be the coordinator of Youth Rights Campaign (YRC), legal or illegitimate as it seems, should be able to know the duties of the DSS and the Police and accord them same respect. The group should know the law and its process. The group should have a learned legal profiled counsel to respond or educate their ignorance of the law. Needless to say that Mr. Francis Nwapa’s strategy of Cyber-bullying is a game the DSS and the police are so familiar with and cannot be cowed thereof.

The insinuation Mr. Nwapa made about transferring the case to Lagos for his convenience is baseless. He should have defined his jurisdiction before he went uncontrolled on social media space to write what he didnt understand. He should have asked questions on the location of the crime alleged. But, No. He went viral to disburse unfounded information which he claimed happened at a location he never knew. Now, he is being invited to Enugu where the alleged crime was committed, instead of yielding to the state of law, Francis is calling for public sympathy. He insinuates in the writing that investigation procedure be shifted to Lagos to accommodate his reporting ineptitude, rather than at Enugu where the petition and incidents took place. What a myopic view of the procedure! It is pertinent to note that the law does not recognize convenience.

Therefore, if invitations were extended by the DSS or Police, it is only proper for those involved to honour such invitations and clarify the numerous statements and allegations which they already circulated online.

Furthermore, it is important to remind the public that institutions have rules, ethical codes, and disciplinary procedures designed to protect professionalism, patient confidentiality, institutional integrity, and public trust. Unauthorized recording of patients, hospital environments, administrators, or internal communications and broadcasting them online without clearance may raise serious ethical and legal concerns, especially in professional healthcare training institutions.
It is also intellectually dishonest for certain groups to weaponize the current security challenges in Nigeria as an excuse to discredit lawful investigations.

The DSS and Police are capable of handling multiple responsibilities simultaneously, including investigating complaints relating to cyber harassment, defamation, false information, and conduct capable of inciting unrest. Mr. Francis, writing on his blog “Francis Nwapa Watch” on 15th of April called for proper investigation into the matter. The security agents yielded to that call and lunched investigations to establish the truth. Why is Mr. Nwapa afraid to dance the music he started beating its drums? Journalism is an age long profession practiced by men of seasoned value, honesty and integrity to uphold public truths. It is unfortune that Mr. Francis whose only known job is pest control and fumigation dabbled into a noble profession as journalism, untrained and unequipped to investigate truth before misinforming the public. More disheartening is that Francis might not know the huge negative impact he would be making to institutions and the public just because he afforded a cheap phone and data to post unverified information on blogs.

Dr. Gloria C. Bertram-Okoli and the management of Ezzy International College of Nursing Sciences have consistently demonstrated commitment to healthcare education, discipline, and institutional excellence. The college cannot and will not surrender its integrity to orchestrated campaigns of calumny or mob pressure driven by social media theatrics.

The public is therefore urged to disregard attempts to distort facts and to allow lawful authorities to carry out their constitutional duties without intimidation from activist groups seeking publicity. Justice is not established on Facebook posts, WhatsApp broadcasts, or media headlines, but through lawful investigation and evidence.

Meanwhile it is also contempt of the legal process as Mr. Nwapa continues to bully online and misinform the public about a matter which is already under investigation. The police had advised that all parties be invited to respond to questions.

The matter is being followed legally. Mr. Francis will do well to submit to legal procedure.

Those who have made allegations should courageously present their evidence before the appropriate authorities instead of portraying legitimate legal procedures as persecution. Truth does not fear investigation.
—Opinion—

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ONDO EAST-WEST FEDERAL CONSTITUENCY APC ADOPTS OTUNBA BOLA FISAYO

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ONDO EAST-WEST FEDERAL CONSTITUENCY APC ADOPTS OTUNBA BOLA FISAYO

 

Ahead of APC House of Representatives Election scheduled for Saturday 16th of May 2026, Ondo EAST-WEST Federal Constituency stakeholders have adopted Otunba Bola Olawafisayo as its flagbearer.

 

Rising from the stakeholders’ meeting held at Harmony Estate in Ondo city, a source close to Otunba Bola Olawafisayo disclosed that arrangements have been perfect and party members will formally adopt Otunba Bola Olawafisayo on Saturday the very day slated very for the primary.

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Excitement as Zamfara Under Governor Lawal Begins Airlift of Pilgrims at Zamfara Airport

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Excitement as Zamfara Under Governor Lawal Begins Airlift of Pilgrims at Zamfara Airport

 

There is palpable excitement in Zamfara State as the administration of Governor Dauda Lawal officially commenced the 2026 Hajj airlift for pilgrims from the Gusau Airport (GIA). In a historic move aimed at easing the pilgrimage process, the state government announced that the first batch of pilgrims who departed for the Holy Land today, Friday, 15th May 2026.

This milestone marks the fulfillment of Governor Lawal’s promise to make direct departures from Zamfara a reality, eliminating the need for pilgrims to travel to other states for airlift. However, the state government has issued a strict advisory to the public regarding conduct at the airport. To ensure security and facilitate the smooth coordination of the airlift operations, escorting pilgrims to the airport is strictly prohibited.

Family members and friends wishing to bid farewell to their loved ones are directed to do so only at the Hajj Camp. The restriction, according to officials, is a necessary measure to prevent congestion and maintain order at the airport premises. Officials confirm that the airlift is now underway at Gusau International Airport. The development has been met with widespread praise from intending pilgrims, who expressed relief at being able to begin their spiritual journey directly from their home state.

The Zamfara State Government extended its sincere gratitude to Governor Lawal for his commitment, emphasizing that the direct airlift reflects a new chapter of convenience and efficiency for the state’s annual Hajj operations.

 

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