Politics

Nigeria Can’t Continue In Path Of Rising Debts – Experts Tackle Tinubu

Published

3 years ago

January 17, 2023

Economic experts have said Nigeria cannot continue on the path of indebtedness amid incompetence and inefficiency.

The economic analysts were reacting to the All Progressives Congress, APC, presidential candidate, Bola Ahmed Tinubu’s recent comment on Nigeria’s 2023 appropriation bill.

Recall that Tinubu remarked in his interaction with business stakeholders, in Lagos, that budget deficits are not necessarily bad.

However, Nigeria’s rising debt profile has been a source of apprehension for many economists and ordinary Nigerians.

Certainly, for a country struggling on all fronts, a N77 trillion debt if the National Assembly approves President Muhammadu Buhari’s 23.7 trillion Ways and Means advance, according to the Debt Management Office, DMO recent statement, should raise dust.

With the country’s dwindling revenue portfolio and overbearing debt repayment burden, the fear continues to escalate.

In perspective, a breakdown of this year’s appropriation bill with N21.51 trillion expenditures and expected revenue of N9.73 trillion, shows that a whooping N6.31 trillion representing over 70 per cent of its aggregated revenue would be gulped by debt servicing and shooting up the country’s budget deficit to N10.78 trillion.

In plain economics, Nigeria’s debt situation does not look good.

Reacting to the development in a chat with DAILY POST, a financial inclusion/wealth management expert, Mr Idakolo Gbolade said budget deficit financing cannot translate to economic growth in Nigeria.

He stated that the budget deficit is causing Nigeria double digit inflation and depreciation of naira.

He added that historically, the budget deficit has not been productive because some of the projects financed by it are not economically viable. He cited Nigeria railway currently crippled by insecurity as an example.

“Budget deficit financing cannot translate to economic growth in Nigeria because deficit financing has led to double digit inflation with the country also battling chronic food inflation.

“The deficit financing has consistently weakened the Naira and has led rating agencies to downgrade Nigeria’s credit rating, thereby affecting flow of investment opportunities and ability of the private sector to source funding from foreign institutions.

“The deficits spending by Nigeria cannot be said to be totally productive because some of the infrastructural projects financed by the government are not commercially viable projects that can repay the loans used to fund them.

“A major example is the railways which have been rendered unproductive by insecurity that has affected their operations.

“Continuous deficit spending by the government would leave the government unable to undertake key social and infrastructural projects in the long run”.

Also, an Accounting and Financial Development don at Lead City University, Ibadan, Prof Godwin Oyedokun said Nigeria is having budget deficits owing to inefficiency and incompetence.

He said it was not good for a country to use a larger part of her income (revenue) on debt serving, as it is the case of Nigeria.

Also, he disclosed that the country’s budget deficit on recurrent expenditure would only plunge her unborn generation into debt trap.

He said the budget deficit becomes laudable if it is meant to finance capital expenditures.

“Yes, the budget deficit is not bad at all. My stand has always remained that the country shouldn’t use a larger part of her income to pay debt, that is where the problem comes. Another problem is how sincere are the government deficits in terms of budget? We are having a deficit where recurrent expenditure is not lower than the capital expenditures. It means we are going into debt to make a certain class of Nigerians to be wealthy. It won’t be an issue if most people in the economy are productive. You pay a salary for a job for twenty people instead of two people.

“We are deficiting on inefficiency and incompetence. Such will not develop the economy. If the budget deficit is on capital expenditures, this will bring about future cash flow into the economy. If the Central Bank of Nigeria’s 23 trillion ways and means is added, Nigeria’s debt profile would hit N77 trillion, this means that generations yet unborn will be using their income to pay the debt of their fathers who decided not to take governance seriously,” he lamented.

Politics

Agege LG Chairman Resigns

Published

6 days ago

November 5, 2025

Editor

Agege Local Government
Mr. Tunde Azeez Disco has stepped down as the Executive Chairman of Agege Local Government, citing persistent health challenges as the reason for his resignation.

The former chairman submitted his resignation letter to the Agege Local Government Legislative Arm.

He noted that his health status had significantly impacted his ability to effectively discharge his official duties.

The legislative house, while acknowledging Azeez Disco’s dedication to public service, quickly accepted the decision. Following a thorough deliberation, a unanimous resolution was passed, accepting the resignation with immediate effect.

The council wished the outgoing chairman well in his future endeavours, with the event underlining the necessity for public officials to prioritise personal health and well-being.

Ganiyu Obasa, son of the Speaker, Lagos State Assembly, Mudashiru Obasa, is the Vice chairman of Agege Local Government.

In May, residents of Agege, under the banner of the Presidential Campaign Council (PCC), called on President Bola Tinubu to intervene in the local government election in Agege.

They claimed that Obasa allegedly plans to foist his surrogates as candidates in the local government and councillorship elections.

In a meeting held in response to the announcement of candidates for the chairmanship and vice-chairmanship of the Agege Local Government and Orile-Agege Local Council Development Area (LCDA), the aggrieved residents alleged that those shortlisted as candidates to represent the area were handpicked by Obasa.

They said the process was void of internal democracy and collective participation.

Addressing the media, Kamardeen Sabitu, chairman of the PCC for Agege and Orile-Agege, alleged that Obasa did everything possible to manipulate the political structure in the area for personal gain.

During the protest, demonstrators carried placards reading “Red Card, Obasa O to ge, (it is enough). They also chanted songs such as “Enough is Enough, this suffering is enough, Tinubu, rescue us.”

Politics

JUST IN: Reps In Rowdy Session, Reject Key Motions

Published

7 days ago

November 4, 2025

Editor

The plenary session of the House of Representatives on Tuesday turned rowdy after members voted against some motions of urgent public importance, which bordered on the protection of lives and key government assets.

With the Deputy Speaker, Benjamin Kalu, presiding, the session became rowdy, as members dissolved into a closed-door session to restore order.

It all started when the member representing Somolu Federal Constituency, Lagos State, Ademorin Kuye, drew the attention of his colleagues to what he called the illegal allocation of lands within the Lagos International Trade Fair Complex and prayed the House to refer the matter to the Committee on Public Assets for investigation.

Kuye, a member of the All Progressives Congress is the Chairman of the House Committee on Public Assets.

Proposing an amendment to the prayers, Delta lawmaker and Chairman, House Committee on Rules and Business, Francis Waive, argued that though the matter brought before the Green Chamber is urgent enough, the Committee on Commerce, not Public Assets, should be in charge of the investigation.

Waive was supported by Akwa Ibom lawmaker, Mark Esset, who argued that “It is the Committee on Commerce that should take responsibility on this matter.”

On the other hand, Yusuf Gagdi representing Pankshin/Kanke/Kanam Federal Constituency, Plateau State, supported Kuye, stating that the Public Assets Committee should be allowed to take charge of investigating the allegation of illegal land sale and submit a report to the House.

With no end to the back-and-forth argument in sight, Gbefwi Gaza (SDP, Nasarawa) on the advice of Kalu, proposed the constitution of an Ad-hoc Committee comprising members of both Committees (Public Assets and Commerce) to conduct the probe.

When subjected to a voice vote, almost an equal number of lawmakers voted in support and against the motion.

Not sure whose voices were louder, Kalu gave it to the nays, sparking unrest in the chamber.

Next on the order of urgent motions was Mohammed Bio representing Baruten/Kaima Federal Constituency, Kwara State.

Bio who lamented the worsening security situation in his constituency, prayed the House to urge the military to establish a base in the crisis-prone areas to stem the tides of attacks.

This time, more lawmakers voted against the motion, to the surprise of Kalu and the Kwara lawmaker.

It became clear to Kalu that members had resolved to frustrate the day’s session owing to the rejection of Kuye’s motion.

So, when again voices thundered against Ayodeji Alao-Akala’s motion which drew members’ attention to the need to address Nigeria’s description as a “Country of Particular Concern” by the United States President, Mr Donald Trump; Kalu allowed the motion to pass, forcing members to openly oppose the decision.

Voices of dissent rent the chambers and the plenary was suspended for a closed-door session.

…Details later

Politics

Obaseki’s Media Aide Tackles Edo Information Commissioner Over Alleged ₦600bn Debt

Published

7 days ago

November 4, 2025

Editor

A former Governor of Edo State, Godwin Obaseki, has denied leaving a debt of N600bn, urging the Monday Okpehbolo-led administration to crosscheck from the Debt Management Office (DMO) before “spewing lies.”

The state Commissioner for Information and Strategy, Prince Kassim Afegbua, had on Monday in Benin claimed that the immediate past administration in the state left a whooping ₦600bn debt.

Reacting to Afegbua’s claim via video call on Tuesday, Obaseki’s Media Adviser, Crusoe Osagie, challenged the current administration in the state to visit the DMO to see whether Edo drew such debt.

Crusoe, who said no government at whatever level has capacity to draw loans or enter into any debt arrangement without the knowledge and approval of the DMO, said lies being spewed by the Okpebholo’s administration is giving the country a bad image.

He said information of such gives the impression that the state is being governed by people who don’t understand what it means to run a government.

Crusoe described the claim as false and outrightly out of place.

On the planned probe of Mosium of West Africa Arts (MOWA), Crusoe noted that MOWA remained an international brand that entered into a business agreement with Edo State with all T’s crossed and all I’s dotted.

He insisted that every record about the transaction between Radisson Hotel and the Edo State government was contained in the transition report.

He said: “MOWA is an international investment drawing funds from the German government, the United Kingdom’s government, and the French government for its development. You think such an investment will be put on a land that was not ceded to that organization by the state.

“These people just come out there and toss all kinds of irresponsible information out there. At the end of the day what happens is that all of these turn around to form the intelligence that gathered out of Nigeria by the international community.

“It makes these countries think that the country is a failed state and the place is not being governed.”