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

Edo PDP Knocks Okpebholo Over ₦2.5b Donation To UBTH

Published

1 day ago

August 27, 2025

Editor

Edo State chapter of the Peoples Democratic Party (PDP) has condemned the approval of ₦2.5 billion to the University of Benin Teaching Hospital by Governor Monday Okpebholo.

The Governor announced the approval on Tuesday when the new Chief Medical Director of the hospital, Idia Ize-Iyamu, paid a courtesy visit to him in Government House, Benin.

Ize-Iyamu had requested the state government’s assistance in constructing a world-class Paediatric Centre worth N2.5 billion which the governor approved.

However, the PDP, in a statement by its Caretaker Committee Publicity Secretary, Chris Nehikhare said the governor should have invested the money on state-owned hospitals instead of a federal institution.

The statement statement partly reads, “This misadventure is not only reckless but a glaring example of the 2027 election fixation and desperate eye-service politics that has defined Okpebholo’s almost one year in office.

“Edo people are being made to suffer while their resources are squandered on federal facilities that are not the primary responsibility of the state.

“We align with the position of the Association of Resident Doctors under Edo State Government Employment, who have openly decried this misplaced priority. Their statement exposes what Edo people already know, our hospitals are collapsing, yet the Governor prefers to chase cheap popularity.”

The PDP said that Stella Obasanjo Hospital, which was rebuilt with state funds, remained locked with less than a tenth in use, wondering why the ₦2.5 billion was not channelled there.

The statement added, “The Edo Specialist Hospital continues to cry for expansion and adequate support but has been ignored by a government obsessed with pleasing political benefactors and seeking headlines.

“The General Hospital in Abudu is no more than a mere patent medicine store, and yet, ‘₦2.5 billion that belongs to Odogwu is being given to Caesar.”

The PDP also noted that Edo doctors, who only recently suspended their strike, still have their legitimate demands unmet.

“Edo people obviously did not elect a Governor to act as a philanthropist to federal institutions. They elected a leader to fix our hospitals, build capacity, and ensure access to healthcare for all. By neglecting this sacred duty, Okpebholo has shown that he is unprepared, unserious, and out of touch with the realities of Edo citizens.

“We in the PDP demand that this decision be reversed and that urgent attention be given to Edo-owned hospitals which directly serve our people. Edo deserves working hospitals, not political monuments built with eyes on the 2027 elections.

“This is not leadership. This is a reckless waste. And Edo people will not forget,” the statement added.

Efforts to get the government’s response proved futile, as a top official, who pleaded anonymity, said that a response will come on Thursday.

Politics

PDP Zones 2027 Presidential Ticket To South

Published

3 days ago

August 25, 2025

Editor

The Peoples Democratic Party’s 102nd National Executive Committee meeting has resolved to zone its 2027 presidential ticket to the South while retaining the existing National Working Committee zoning formula for the November elective convention.

Addressing journalists after the NEC meeting in Abuja on Monday, the PDP National Publicity Secretary, Debo Ologunagba, disclosed that the decision followed the presentation of a report by the Zoning Committee chaired by Bayelsa State Governor, Douye Diri.

Recall that during the 2023 elections, the PDP threw its presidential ticket open, leading to the emergence of former Vice President Atiku Abubakar as its candidate.

However, some southern leaders, led by then Rivers State Governor and now FCT Minister, Nyesom Wike, opposed him over what they saw as an unfair power-sharing arrangement for the South.

In the end, the PDP candidate lost to President Bola Ahmed Tinubu of the All Progressives Congress.

After declaring the zoning arrangement, Ologunagba added that the NEC also expressed satisfaction over the level of preparedness of the PDP’s various organs, Chapters and structures for the 2025 Elective National Convention scheduled for Ibadan, the Oyo State Capital on Saturday 15th to Sunday 16th November 2025.

Ologunagba, while reading the 102nd NEC communiqué, said the meeting commended the efforts of PDP governors, Board of Trustees, NWC, National Assembly caucus, and other party organs toward the success of the 2025 National Convention.

The communique read in part, “NEC received and after extensive deliberation approved the report of the National Convention Zoning Committee which recommended that all PDP National Office positions currently in the Northern Region of the country remain in the Northern Region.

“That all PDP National Office positions currently in the Southern Region of the country remain in the Southern Region.

“That having retained the position of the National Chairman in the Northern Region of the country, the Presidential Candidate of the Party for the 2027 General Election is hereby zoned to the Southern Region.

“That the Regions should immediately micro-zone positions within its Region for implementation.

“NEC also received an update from the PDP Constitution Amendment Committee and directed the Committee to circulate the Draft Constitution Amendment to various Organs and Chapters of the Party for further inputs.”

Ologunagba said NEC confirmed Umar Damagum as substantive National Chairman, effective Monday, August 25, 2025, in recognition of his role in stabilising the party, pending the National Convention.

He continued, “NEC condemns the resort by the All Progressives Congress (APC) to State Capture through state-backed intimidation, manipulation, inducement, coercion and violence against Nigerians as witnessed in APC’s muzzling of the recent bye-elections in parts of the country.

“NEC particularly expressed dismay and condemned the militarisation of the recent bye-elections especially in Kaduna and Taraba States as well as Zamfara State where excessive security agencies were deployed in the conduct of the run-off election in only five Polling Units in Kaura Namoda South State Constituency.

“NEC declares that this action by the APC is a confirmation of the APC’s desire to turn our country into a totalitarian One-Party State which is a clear and present danger to democracy and the corporate existence of our country.

“NEC reassures Nigerians of PDP’s commitment to Democracy and the defense of the interest and well-being of all citizens as we work hard to further reposition our Party to regain power in 2027.”

Politics

Why APC Candidates Contested 2023 LG Election Despite Intimidation — State Chairman

Published

3 days ago

August 25, 2025

Editor

The Edo State Chairman
of the All Progressives Congress (APC), Jarret Tenebe, has explained why his party did not boycott the 2023 local government council election in the state despite intimidation and obvious efforts to compromise the exercise by the then government.

He said the party allowed its candidates to contest the local government election in order to gather momentum for the governorship election which was some months away as at then.

Tenebe spoke on Monday when he received the chairmanship candidates of the APC in that election at the party secretariat, Benin City, where he assured them that their labour would not be in vain.

He commended them for their determination, confidence and belief in the party despite being in an opposition at that time contesting against an incumbent government led by former governor Godwin Obaseki.

Tenebe said “People never believed that APC should contest that election but I believed that we should enable us to gather momentum for the governorship election which was coming then.

“Consultations began with party leaders and we all later agreed that the party should contest that election which was keenly contested.

“The Peoples Democratic Party (PDP) under Godwin Obaseki wrote the results of that election.

“You people did your best in the election and campaigned vigorously for senator Monday Okpebholo to win the governorship election in the state.

“You work hard to ensure APC win the governorship election as that is the only way your stolen mandate will be returned.

“The party will stand with you and not allow your labour to be in vain. The party will not allow you to work alone as the party will work with you. The governor is very much aware of your support”.

Speaking on behalf of the candidates, Enahoro Aikpokpo said they contested at a very difficult time to keep the party alive despite the intimidation and challenges they faced.

He called on the party to consider them and give them the right of first refusal as they are interested in the forthcoming local government election in the states.