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

Peter Obi Meets US Consul General, Hopes For Credible Polls In 2027

Published

18 hours ago

May 5, 2026

Editor

Chieftain of the Nigerian Democratic Congress, NDC, Peter Obi on Tuesday held a meeting with United States Consul General, Mr Rick Swart.

Obi made this known via his X handle.

He said “This morning, in Lagos, I met with the U.S. Consul General, Mr Rick Swart, where we discussed strengthening the bilateral relationship. We focused on promoting credible elections in Nigeria, ensuring they are free from interference, and fostering a space where all political parties, especially opposition parties can thrive, and contribute.

“We also discussed trade and business opportunities between our countries. Accompanying me to the meeting was Dr Adefolaseye Adebomi Adebayo.

“The discussion was very productive, and we are hopeful that, moving forward, Nigeria’s elections will be even more credible and transparent.”

Politics

BREAKING: 17 ADC Reps Follow Join NDC

Published

1 day ago

May 5, 2026

Editor

About 17 African Democratic Congress, ADC, lawmakers in the House of Representatives have defected to the Nigerian Democratic Congress, NDC.

This was disclosed by Speaker Abass Tajudeen on the floor of the House on Tuesday.

Tajudeen also announced the defection of Leke Abejide from the ADC to the All Progressives Congress, APC.

Lawmakers who defected to the NDC include Yusuf Datti, Uchenna Okonkwo, Adamu Wakili, Thaddeus Attah, George Ozodinobi, Lilian Orogbu, Oluwaseyi Sowunmi, Peter Aniekwe, Mukhtar Zakari, George Oluwande and Munachim Umezuruike.

Others are Emeka Idu, Jesse Onuakalusi, Ifeanyi Uzokwe, Afam Ogene and Abdulhakeem Ado.

This comes barely a day after former presidential candidates Peter Obi and Rabiu Kwankwaso defected from the ADC to the NDC.

Obi and Kwankwaso have pledged to continue their pursuit for a better Nigeria in the NDC.

Politics

JUST IN: Why I left ADC For NDC With Kwankwaso – Peter Obi Opens Up

Published

2 days ago

May 4, 2026

Editor

A former presidential candidate, Peter Obi, has given reasons why he resigned from the African Democratic Congress, ADC, to join the Nigerian Democratic Congress, NDC, alongside a former governor of Kano State, Rabiu Kwankwaso.

In a long post on X on Monday, Obi insisted it was not out of anger or ambition.

Rather, he said the move is a continuation of the quest to build a new Nigeria.

Obi wrote: “Yesterday, I formally joined the Nigerian Democratic Congress (NDC), alongside my dear brother, Engr. Dr Rabiu Musa Kwankwaso, with one clear purpose: to continue the struggle for a new Nigeria built on justice, competence, accountability, and compassion for the ordinary Nigerian.

“As I stated yesterday, this decision was not made out of anger, personal ambition, or convenience. It came after deep reflection on the present condition of our nation and the urgent need to rescue Nigeria from the dangerous path it is currently heading.

“Over the years, I have remained steadfast in my conviction that politics should never be about individuals, positions, or personal gain. It must be about the people, especially the millions of Nigerians who today can no longer afford necessities, whose businesses are collapsing, whose children are losing hope, and whose future is becoming increasingly uncertain.

“I left the ADC for the same reason I left the Labour Party: the severe, orchestrated litigation and internal crises deliberately designed to ensure that I, alongside many other notable individuals, do not effectively participate in the electoral process. I sincerely appreciate and remain deeply grateful to the Leadership of ADC for the opportunity to work together in pursuit of a better Nigeria. I am particularly grateful to ADC Chairman Senator David Mark for his exceptional Leadership. I also deeply appreciate my Leader and elder brother YE, Atiku Abubakar, as well as other respected leaders within the party.

“As we join the NDC, I sincerely appeal to the Nigerian Government against the encouragement of unresolved litigations and the infusion of crises within political parties. Democracy must never become a weapon against the people. A healthy democracy thrives on strong institutions, credible alternatives, and the freedom of citizens to make choices without intimidation, manipulation, or fear. Opposition parties must not be weakened or destroyed, because when democracy loses balance, the people ultimately suffer.

“Nigeria today is passing through one of the most difficult periods in its history. Poverty is rising. Hunger is widespread. Insecurity continues to threaten lives and livelihoods. Businesses are shutting down daily. Our young people are becoming discouraged, and many citizens have lost faith in the system. At a time like this, leadership must be driven not by propaganda or division, but by competence, capacity, character, and compassion.

“Our decision to join the NDC is therefore not an abandonment of values, but a continuation of the same mission we have always stood for: building a Nigeria where leadership is about service, where public resources are managed responsibly, where institutions function independently, and where every Nigerian, regardless of tribe, religion, region, or social status, can live with dignity, security, and hope.

“I remain committed to working with all Nigerians of goodwill across political, ethnic, and religious lines. The task before us is bigger than any individual or political party. It is about the future of our children and the survival of our dear nation.

“I thank Nigerians, especially our youths and women, for remaining peaceful, resilient, and hopeful despite the enormous challenges confronting the country. I urge you not to lose faith in Nigeria. Nations do not change because people surrender to hopelessness; they change because people continue to believe, continue to sacrifice, and continue to stand for what is right.”