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Debt Servicing Gulps N13.17tn Under Buhari, Education Suffers

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The Federal Government spent nothing less than N13.17tn between 2016 and March 2022 under the regime of President Muhammadu Buhari an analysis by The PUNCH has revealed.

Findings by The PUNCH also showed that during the same period, the government budgeted N4.4tn for education amidst constant criticism by stakeholders, including the Academic Staff Union of Universities, about the low funding of the sector.

According to the information from the Debt Management Office, from 2016 to March 2022, servicing local debts gulped N10.77tn, while the government spent N2.40tn ($7.84bn) to service external debts.

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The amount spent on external debt servicing was converted to Naira at the CBN’s exchange rate for the year. For instance, the naira-dollar average exchange rate for 2016 was N197 and N305 in 2017 respectively. It was N305 in 2018 and N360 in 2019. It closed at N380 and N420 in 2020 and 2021 respectively.

From January to December, a total of N1.23tn was spent to service the country’s domestic debts in 2016, during the same year N369.60bn was budgeted for education.

READ ALSO: Nigeria’s Debt To World Bank Rises By $660m

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The figure for domestic debt servicing rose to N1.48tn in 2017 while the budget for education in the same year was N550bn.

In 2018, the country’s domestic debt servicing bill rose to N1.8tn with education at N605.8bn.

The cost of domestic debt servicing came down a bit in 2019 to N1.69tn with N620.50bn budgeted for education.

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In 2020, debt servicing rose again to N1.85tn with education gulping N671.7bn. By 2021, domestic debt servicing rose to N2.05tn with education gulping N742.52bn.

On the other hand, external debt servicing gulped $353.09m in 2016. It went up to $464.05m in 2017 and jumped up to $1.47bn in 2018.

In 2019, the country spent $1.33bn on external debt servicing. In 2020, external debt servicing gulped $1.56bn. By 2021, it became $2.11bn.

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Between January and March 2022, Nigeria spent N668.69bn on domestic debt servicing, while it spent $548.79m on external debt servicing while education gulped N923.79bn.

The United Nations Educational, Scientific and Cultural Organisation has recommended a benchmark of four to six percent of Gross Domestic Product or 15 to 20 percent of a country’s budget for education.

However, in the seven years of the Buhari regime, the highest allocation was in 2017 when a total percentage of 7.38 was allocated to education.

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Experts lament

Commenting on the amount the government spent on debt servicing and low funding of education, experts, in separate interviews with The PUNCH, lamented that educational infrastructure was collapsing because of a shortage of funds.

They noted that the government failed to realise that education is the bedrock of national development.

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A professor at the Adekunle Ajasin University, Akungba, Victor Olumekun, in an interview with The PUNCH, lamented the government had not focused on the education sector.

READ ALSO: Amid Rising Debt, Subsidy Cost Jumps By 370%

Also, the General Secretary of COEASU, Dr Ahmed Lawal, said the government spent money on projects whose contract sums were inflated.

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While commenting on the development, the ASUU Chairman at the Federal University of Technology, Minna, Dr Gbolahan Bolarin, said the government did not care about education.

But a foremost economist, Bismarck Rewane, stated, “The debt service is necessary to finance the expenditure that was incurred. There is a crisis in the education sector, no question about it and the strike is only a symptom of the fundamental defect in the education system. I’m saying that the amount spent on education should be increased but because the revenues are down, we can only increase it by borrowing more so we cannot, on the one hand, criticise the government for borrowing more and at the same time criticise the government for spending less.”

On his part, the Director, Research and Strategist, Chapel Hill Denham, Tajudeen Ibrahim, stated that the future of education funding in Nigeria was bleak.

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He stated, “I think the future of education funding in Nigeria is weak because it doesn’t seem like the government has a concrete plan for the education sector. In as much as that sector is not seeing inflows from investments, what would happen is either the government borrows to finance that sector or they neglect that sector, just like they are currently doing. Education doesn’t bring much income as a sector, it is a sector that the government has to invest in for long-term benefits.”

An economic expert and seasoned academic at Pan Atlantic University, Dr Olusegun Vincent, explained that the moment there was a debt obligation, it becomes a first line charge in revenue, irrespective of other priorities whether education, agriculture, or defence.

Varsity lecturers, others

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The spending on debt servicing and the education sector came to the fore on Thursday as findings by our correspondents showed that lecturers in universities, polytechnics and colleges of education had embarked on no fewer than 837 days of strike since the inception of the regime of the President, Major General Muhammadu Buhari in May 2015.

ASUU is currently on strike in protest against members’ poor welfare and lack of adequate funds for universities among others.

The members of the Colleges of Education Academic Staff Union recently suspended strike for a period of 60 days which, according to the union, will give the government enough time to meet the demands tabled while the Academic Staff Union of Polytechnics suspended its strike on May 29, 2022.

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The analysis by one of our correspondents revealed that in January 2017, ASUP, under the then national president, Usman Dutse, embarked on a seven-day warning strike from January 30, 2017, to February 5, 2017.

Also, ASUU declared an indefinite strike on August 17, 2017, over unresolved and contentious issues with the Federal Government. The strike was called off on September 17, 2017.

A few days after the suspension of the strike by ASUU, lecturers in polytechnics on November 11, 2017 announced another strike which lasted for 15 days. The strike was called off on November 29, 2017.

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In 2018, lecturers in Colleges of Education took the lead when COEASU embarked on a strike on October 9, 2018. The strike was called off on December 5, 2018.

READ ALSO: Marketers Threaten To Halt Fuel Supply In North-West States Over N40bn Debt

ASUU embarked on a three-month nationwide strike on November 4, 2018, due to the Federal Government’s alleged inaction. The strike was suspended on February 7, 2019.

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Similarly, ASUP embarked on strike again on December 12, 2018 and also called off its strike on February 13, 2019.

In 2020, ASUU initially embarked on a two-week warning strike.

The warning strike was followed by the longest strike in Nigerian history.

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The strike which commenced in March 2020 lasted for a total of 270 days.

The pandemic, according to some stakeholders, added to the extension of the strike which was called off in December.

In 2021, while other academic unions took a break from industrial actions, ASUP embarked on 65-day strike. The strike, which commenced on April 6, 2021, was called off on June 9, 2021.

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So far in 2022, ASUU has been on strike for close to 186 days with no end in sight.

While ASUP went on strike for just two weeks, COEASU strike lasted for two months before it called for a suspension.

PUNCH.

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Business

NNPCL Raises Fuel Price

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The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol from ₦865 to ₦992 per litre, marking a fresh hike that has sparked widespread concern among motorists and consumers .

As of the time of filing this report, the company has not released any official statement explaining the reason for the sudden adjustment.

During visits to several NNPC retail outlets, The Nation observed fuel attendants recalibrating their pumps to reflect the new price.

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READ ALSO:JUST IN: NNPC, NUPRC, NMDPRA Shut As PENGASSAN Begins Strike

At NNPC filling station on Ogunusi road, Ojodu Berger, petrol attendants at the station said they were instructed to change the price to reflect the new rate N992 per litre.

However, checks at Ibafo along the Lagos /Ibadan expressway showed that NNPC outlets still displayed the old price of N875 per litre, although they were not selling to commuters.

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Most of the NNPC stations were not dispensing fuel.

 

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CBN Directs Banks To Refund Failed ATM Transactions Within 48hrs

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The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.

The directive is contained in a draft guideline released by the apex bank on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”

The document, signed by Musa I. Jimoh, Director of Payments System Policy Department, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.

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Under the draft, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly. If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours.

READ ALSO:CBN Sets POS Maximum Transactions In Fresh Guidelines

For “not-on-us” transactions, involving other banks’ ATMs, refunds must be processed within 48 hours.

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“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.

In a significant shift, the CBN mandated banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.

Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.

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READ ALSO:FG Records N7.34tn Fiscal Deficit In 11 Months – Report

According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.

The guidelines will also overhaul ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30% compliance in 2026, 60% in 2027, and full compliance by 2028. Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.

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To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.

Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts. At least 2% of all ATMs must feature tactile symbols for visually impaired customers.

READ ALSO:CBN, UBA, Others In Benin Given Ultimatum To Remove Their Buildings Or Be Demolished

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ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only clean banknotes, and provide backup power to reduce downtime.

Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.

The CBN will enforce compliance through regular audits, on-site inspections, and monthly reports from ATM operators detailing deployments and locations. Defaulting institutions risk sanctions, though fines were not specified.

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READ ALSO:Nigeria’s External Reserves Increase As CBN Releases 2024 Financial Results

The apex bank explained that the overhaul was necessary due to rising complaints about failed transactions, cyber fraud, and declining service quality, noting that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”

Nigeria’s electronic payments landscape has grown rapidly in recent years, with 200 million cardholders and rising reliance on digital banking, but network failures, poor infrastructure, and delayed reversals have continued to undermine confidence.

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The fresh guidelines, coming eight months after a revision of ATM fees, are expected to streamline service delivery, enhance transaction security, and hold banks accountable. Stakeholders are invited to submit feedback ahead of the final policy adoption, which could take effect before the end of the year.

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Nigerian Stock Market Hits 10th Consecutive Uptrend As investors Gain N308bn

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The Nigerian Stock Market recorded its 10th consecutive uptrend as investors raked in N308 billion gain on Thursday.

This comes as the Nigerian Exchange Limited, NGX, market capitalisation, which opened at N92.490 trillion, appreciated by 0.33 per cent to close at N92.798 trillion on Thursday.

Also, the All-Share Index added 0.33 per cent, or 485.25 points, to close at 146,204.34, compared with 145,719.09 recorded on Wednesday.

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READ ALSO:Asian Stocks Rise As Trump Postpones Mexico, Canada Tariffs

Increased trading in Eunisell Interlinked, Caverton Offshore Support Group, Sunu Assurances, Industrial and Medical Gases, Mecure, and 27 other advancing stocks boosted market performance on Thursday.

To this end, the market breadth also closed positive with 32 gainers and 21 losers.

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Further analysis showed that Eunisell Interlinked and Caverton Offshore Support Group led the gainers’ chart by 10 per cent each, closing at N44 and N6.93 per share, respectively, while FTN Cocoa Processors led the losers’ table by 6.67 per cent, closing at N5.60 per share.

READ ALSO:UK Stock Markets Plunge In Biggest Daily Fall Amid Trump Tariff

Market activity showed a decline in the number of deals and volume traded but an improvement in trade value.

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Accordingly, a total of 346.99 million shares worth N27.43 billion were traded in 24,691 deals, compared with 525.72 million shares worth N13.61 billion exchanged in 25,597 deals on Wednesday.

Fidelity Bank topped the activity chart with 42.01 million shares valued at N861.54 million.

According to DAILY POST, NGX has continued its bullish run from last month’s end to date.

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