Editorial

Nigeria’s Growing Debt Burden

Published

5 years ago

July 23, 2021

Thursday, July 15, 2021, the Nigerian Senate approved two new foreign loans of $8.325 million and
€490 million respectively. That has raised a lot of questions among many stakeholders in the country, who have equally considered the approval as a bad move in the management of the already battered economy, especially at this period of torturous debt service compulsion.
The loans are said to be part of the Federal Government’s 2018-2020 external borrowing plan. It was ratified after the Senate considered the report of the Senate Committee on Local and Foreign Debt. In May this year, President Muhammadu Buhari asked the National Assembly to endorse the loan for funding various “priority projects” in the country.
Earlier, the Senate had approved $1.5 billion and €995 million respectively. The $1.5 billion was to be sourced from the World Bank for the financing of critical infrastructure across the 36 states of the federation under the States Fiscal Transparency, Accountability and Sustainability (SFTAS) programme and Covid-19 action recovery plan.
Similarly, the €995 million was to be procured from the Export-Import Bank of Brazil to finance the Federal Government’s Green Imperative project to enhance the mechanisation of agriculture and agro process to improve food security. These are aside several other loans taken by the administration since inception in May 2015.
Statistics from the Debt Management Office (DMO) on Nigeria’s liability portfolio over the last six years show how the accumulation has progressed hazardously. According to the DMO, Nigeria’s total debt as of June 30, 2015 (the year President Muhammadu Buhari took over) stood at N12.12 trillion. As of December 31, 2020, the country had a debt portfolio of N32.92 trillion. The latest DMO statistics, covering the first quarter of 2021, indicated that the debt portfolio had increased again to N33.10 trillion.
In addition, the Federal Government also incurred another N10 trillion in overdrafts with the Central Bank of Nigeria (CBN). This overdraft, which may also be provided by printing currency, has been reconditioned to be repaid over 30 years. We wonder what the managers of the economy have up their sleeves when they take on these liabilities which have serious implications not only for the present, but also for the future generations of Nigerians.
These allegations of printing of funds that have followed a trend across the country in recent times may be seen as apparently corroborated by this huge N10 trillion owed by the CBN. The CBN may have always relied on printing money to meet the government’s overdraft demands.
The unfortunate and highly impoverished argument still put forward by the government and proponents of increased borrowing is the country’s debt-to-GDP ratio is still sound and below 40 per cent. However, they lose sight of the fact that GDP does not pay the debt, but incomes do. GDP only reflects the size of the economy and not that a mechanism has been put in place to service the loan when it becomes due.
What the Buhari government has done over the past six years, with its incompetent economists, is reckless borrowing, and has obviously borrowed beyond its repayment capacity. That is why the Federal Government is in trouble as far as servicing the debt is concerned. It recently admitted this much, claiming it spent N1.8 trillion on debt servicing from its N1.84 trillion revenues in the first five months of 2021 (January to May).
Thus, the debt-to-revenue ratio of the Federal Government, a key measure of debt sustainability, stands at 97.8 per cent over the reviewed period. How outrageous is that? In 2016, the federal debt service amounted to only 44.6 per cent. But by 2020, the debt-to-revenue ratio had increased to about 84.8 per cent. That is why 33 per cent of the current 2021 budget is dedicated to paying down the debt.
As debts increase for payments, the strain on incomes increases. In the 2019 budget, for instance, over N2.1 trillion was set aside for debt servicing. Also, in the 2020 budget, N2.45 trillion was dedicated for debt repayments. That was close to 25 per cent of the budget. No country can achieve development with such enormous debt settlements.
The huge amount spent on debt servicing leaves the Buhari government with little money for infrastructure. That is why it takes more loans and print money to finance the cost of personnel, pensions and capital expenditures. Since printed currency also forms part of the debt of any government, we are concerned with the staggering way the CBN has printed money over the last six years and handed it to the Federal Government. It increased sharply from N2.2 trillion printed in 2016 to an estimated N10 trillion by the end of 2020.
There is no use borrowing for projects such as railways and airports. No sane government continues to invest in such infrastructure. Investments in areas like that and many others should be led by the private sector while the government creates an enabling environment. Public funds should be expended on health, education and social welfare, not on areas better managed by the private sector.
Nigerians have always been bombarded by constant requests for loans from the President. Such loans have become too numerous and most well-meaning citizens have called for an end to the alarming tendency to incur loans infelicitously. The nation already has a huge debt burden and must not permit this situation so far aggravated by the Buhari administration.
Time and time again, the current government, aided by an implacable legislative assembly proud of its docility, has invoked various excuses to justify its borrowing frenzy. Sadly, the administration does not show creativity when it comes to reducing governance costs and consolidating the revenue base. It is all about here and now: it does not think of the future. The fiscal situation of the country is disastrous and disheartening, and it is time for the government to change course.

Editorial

Fix Bad Roads, Avert Flooding In PH

Published

9 hours ago

June 8, 2026

The Tide

For many years, residents of Port Harcourt have suffered from deplorable roads and persistent flooding. During the rainy season, movement becomes difficult and business activities are often disrupted. Thankfully, there has been some relief in one major area. Since Governor Siminalayi Fubara addressed the flooding problem along Ikwerre Road by Afikpo Junction, the situation has improved significantly. Even after heavy rainfall, the area no longer experiences the usual flooding, and vehicles can now move freely without difficulty. This intervention deserves accolade and commendation.

Another notable project is the ongoing drainage reconfiguration at NTA Road, opposite the Nigerian Television Authority. The work being carried out there shows that the government recognises the connection between poor drainage and deteriorated roads. Once completed, the project could become a good example of how proper planning and infrastructure maintenance can improve urban roads. The administration should be encouraged to sustain this undertaking.

While the governor continues to carry out development projects across the state, attention should also be given to Obi Wali Road in Obio/Akpor Local Government Area. The road has remained in decrepit condition for years despite its importance as a major economic route. Whenever it rains, flooding stretches from Rumuigbo Junction to Nkpolu Junction, forcing businesses to discontinue operations for the day. According to traders in the area, several shops shut down after every heavy rainfall. This situation cannot continue indefinitely.

Fubara should spend more time scrutinising roads and infrastructure across Port Harcourt personally rather than depending entirely on reports from officials. His intervention at Ikwerre Road was successful because he saw the problem firsthand and understood the extent of the tribulations faced by motorists and residents. The same practical approach should now be replicated on Obi Wali Road.

A visit to the area during rainfall would clearly reveal how quickly the road becomes impenetrable. Vehicles struggle to move through the flooded sections, while pedestrians are forced to walk through unsanitary water. Direct assessment often provides a clearer understanding of problems and can lead to quicker and more efficacious solutions.

The current condition of Obi Wali Road is similar to what Elelenwo Road looked like before it was reconstructed under the administration of former Governor Nyesom Wike. After the road was metamorphosed, the area became more accessible, attractive and serviceable. Today, Elelenwo Road accommodates heavy traffic daily without major flooding issues. There is no reason Obi Wali Road should not receive similar attention. What is required is commitment and political fortitude.

The Airforce and Rumuomasi section of the Port Harcourt–Aba Road, beginning from Shoprite to PAMO, also remains in very poor predicament. During heavy rainfall, flooding affects the stretch from Lagos Bus Stop to Market Junction, covering almost 1.2 kilometres. As a result, motorists are forced to circumnavigate through Old Aba Road before reconnecting at Rumubiakani or Market Junction. This often adds between 20 and 30 minutes to expeditions during the rainy season.

The situation is becoming increasingly disconcerting. Smaller vehicles frequently avoid the route whenever it rains heavily. Reports from local transport operators indicate that many private and commercial vehicles circumvent the area on rainy days. Sadly, this has become a perennial problem every rainy season, despite changes in government over the years. The current administration should focus on providing a permanent solution rather than temporary repairs that fail after a short time.

Flooding is also common along the NTA–Choba Road near Choba Market, opposite Royal House of Grace Church. Although the road itself is in fairly good condition, blocked drainage channels continue to create encumbrances whenever it rains. In addition, potholes are beginning to materialise along Obiri Ikwerre Road leading towards NTA Road. If these faults are ignored, they will eventually develop into major road degeneration.

Other areas in urgent need of attention include Mile 3 Market Road to Wokoma Street, which floods after torrential rainfall, and Gambia Junction at Mile 2 Diobu, where flooding has become ubiquitous. Okporo Road, the stretch from Rumuodara Junction to Artillery, Bereton Junction, and Miniesuku Junction near Halley College are all in dilapidated condition. Altogether, these roads affect the daily movement of hundreds of residents across the city.

To address these challenges effectively, the state government should establish a specialised road maintenance agency responsible for identifying and repairing damaged roads before they deteriorate completely. Regular inspections and preemptive maintenance would help reduce long-term reconstruction costs and improve road safety across Port Harcourt.

Local government councils also have an important role to play. Each council should maintain meticulous records of roads within its jurisdiction and monitor their condition regularly. Responsibility for road maintenance should not rest entirely on the state government. Better synergy between state and local authorities would ensure that no road is overlooked.

Governor Siminalayi Fubara has already shown positive leadership through the improvements at Ikwerre Road. Residents now hope that the same commitment will be cloned across other troubled areas in Port Harcourt so that the city could finally experience safer roads, better drainage and unobstructed movement for everyone.

Editorial

Nigeria’s 27 Years of Civil Rule Journey

Published

1 week ago

May 29, 2026

The Tide

Nigeria returned to civil rule on May 29, 1999, after several years of military intervention in politics. The transition marked a major turning point in the nation’s history and raised hopes for freedom, stability, economic growth and accountable leadership. Citizens expected that elected governments would strengthen institutions, improve living conditions and unite the country after years of authoritarian rule. Twenty-seven years later, civil rule has survived without interruption, making it the longest uninterrupted civilian administration since independence in 1960.

Since 1999, Nigeria has witnessed six administrations at the federal level. Olusegun Obasanjo governed from 1999 to 2007, followed by Umaru Musa Yar’Adua from 2007 until his death in 2010. Goodluck Jonathan served from 2010 to 2015, while Muhammadu Buhari led the country between 2015 and 2023. Since May 2023, Bola Ahmed Tinubu has been in office. Though democracy has remained stable, governance outcomes have produced mixed reactions among Nigerians.

The country has made some notable progress over the past 27 years. Democratic institutions such as the National Assembly, judiciary, political parties and the media have become stronger than they were during military rule. Elections are now regular, though still imperfect. Telecommunications, banking, entertainment and digital technology have expanded greatly. Nigerian youths have also become more politically aware and active. The country’s economy, despite its difficulties, remains one of the largest in Africa.

However, many of the expectations that came with democracy remain unmet. Corruption, unemployment, poverty, insecurity and poor infrastructure continue to trouble the nation. Public confidence in government institutions has weakened over time because many citizens believe political leaders have not done enough to improve their welfare. Ethnic and religious tensions also remain major challenges. While democracy has endured, good governance has not always matched the hopes of the people.

President Tinubu’s administration began with bold economic decisions aimed at reforming the nation’s finances. His government removed fuel subsidy and unified the foreign exchange system. Supporters argue that these measures were necessary to reduce waste and attract investment. The government also increased revenue allocation to states and sought to improve tax administration. Yet the immediate impact has been severe hardship for millions of Nigerians. Inflation, high transport costs and the falling value of the naira have placed enormous pressure on households and businesses.

In education, the Tinubu administration has promised reforms through student loan schemes, support for technical education and efforts to reduce strikes in tertiary institutions. Some progress has been recorded with the establishment of the Nigerian Education Loan Fund. However, public schools still face poor funding, inadequate facilities and shortage of teachers. Many students continue to struggle with rising school fees and declining quality of education.

The health sector under the current administration has also recorded both efforts and challenges. Government has pledged to improve health insurance coverage. Nevertheless, hospitals across the country still suffer from inadequate equipment, shortage of medical personnel and brain drain as doctors and nurses continue to leave Nigeria for better opportunities abroad. Access to affordable healthcare remains difficult for many rural communities.

The power sector remains one of Nigeria’s biggest disappointments after nearly three decades of democracy. Despite repeated promises and reforms, electricity supply is still unstable. Businesses and households spend heavily on generators and fuel. The Tinubu administration has introduced policies aimed at decentralising power generation and encouraging investment, but ordinary Nigerians are yet to feel significant improvement in electricity supply.

The rising cost of living has become the greatest concern for many Nigerians today. Food prices, transportation costs and rent have increased sharply. Though the Federal Government introduced palliative programmes and cash transfer initiatives to cushion the effects of reforms, many citizens believe the interventions have been inadequate or poorly distributed. There is growing demand for more effective social protection programmes targeted at vulnerable citizens.

On national security, the government continues to battle terrorism, banditry, kidnapping and communal violence. Security agencies have recorded some successes in parts of the country, yet insecurity remains widespread. Farmers in many rural communities still face attacks, affecting food production and increasing fear among citizens. Regional stability in West Africa has also become more uncertain due to political crises in neighbouring countries. Nigeria continues to play a leading diplomatic role in the region, but internal security challenges weaken its influence.

In infrastructure and other key sectors, the Tinubu administration has continued several road, rail and housing projects inherited from previous governments. Investments in ports, gas and digital technology have also been encouraged. In agriculture, government has promoted mechanised farming, dry season cultivation and access to credit. Yet food insecurity remains high because insecurity, inflation and poor rural infrastructure continue to affect agricultural productivity. Nigeria still imports many food items despite its vast agricultural potential.

To improve national conditions, the Federal Government must place greater attention on job creation, industrialisation and support for small businesses. More investment is needed in agriculture, healthcare, education and electricity. Anti-corruption institutions should be strengthened while government spending must become more transparent. Leaders must also prioritise national unity and reduce political divisions. Nigerians expect reforms that produce visible improvements in their daily lives, not only policy announcements.

In Rivers State, the 27 years of civilian rule have produced substantial development alongside political tensions. The state has remained economically important because of its oil and gas resources. Different administrations since 1999 have invested in roads, schools, healthcare facilities and urban renewal projects. However, political conflicts and struggles for power have often affected governance and slowed development in parts of the state.

Governor Siminalayi Fubara assumed office in May 2023 amid high expectations and intense political disagreements. In infrastructure, his administration has initiated projects such as massive road construction, bridge rehabilitation and urban development schemes in parts of the state. Ongoing works on major roads and public facilities have been presented as efforts to improve transportation and economic activities. Critics, however, argue that political instability in the state has distracted government’s attention from faster project delivery.

In education and health, the Rivers State Government has continued support for public schools and healthcare centres. Efforts have reportedly been made to improve learning environments and sustain payment of workers’ salaries. In health, there have been interventions in hospitals and primary healthcare services. On security, the administration has worked with security agencies to maintain peace, although political tensions in the state have created uncertainty. In the civil service, workers and pensioners have largely continued to receive salaries, stipends, and welfare support. The state government has also shown interest in agriculture and power development, though these sectors still require stronger investment and clearer long term strategies.

Going forward, Rivers State needs greater political stability to achieve meaningful development. The government should focus more on rural roads, youth employment, agricultural expansion and uninterrupted healthcare services. Investments in independent power projects and industrial development would help attract businesses and reduce unemployment. Above all, political leaders in the state must place the interest of the people above personal or factional battles. Democracy can only succeed when governance delivers peace, development, and hope to ordinary citizens.

Editorial

Enough Of Xenophobic Attacks On Nigerians

Published

3 weeks ago

May 18, 2026

The Tide

The xenophobic attacks and anti-foreigner sentiments in South Africa are not new, but their persistence makes them an increasingly explosive issue. Each cycle of violence against foreign nationals chips away at the country’s moral authority and threatens the very ideals upon which post-apartheid South Africa was built. A nation that once symbolised triumph over institutionalised oppression is fast becoming a theatre of intolerance, where fellow Africans are targeted for the simple crime of seeking a livelihood.

Only recently, the South African President, Cyril Ramaphosa, described those who attack foreigners in his country as opportunists and criminals. Yet, words alone have proved entirely ineffective in halting the carnage on the streets. The latest wave of violence has reportedly claimed the lives of two Nigerians and two Ghanaians, while properties worth millions of rands belonging to several foreign nationals have been destroyed.

In a fierce reaction to these killings, Senator Adams Oshiomhole urged the Nigerian Federal Government to act immediately by withdrawing the operational licences of MTN and DSTV. These two South African giant establishments represent massive economic interests in Nigeria. Senator Oshiomhole believes such retaliatory measures are necessary to compel the South African government to pay urgent attention to the unchecked lawlessness within its borders.

However, many Nigerians view this legislative suggestion as far too drastic, arguing that it should only ever be considered as a last resort. This caution stems from the reality that these multi-national firms employ thousands of Nigerian citizens. Shutting down their operations abruptly would inevitably inflict more economic injury on the very population the government seeks to protect, worsening the domestic unemployment situation.

The undeniable truth remains that the Nigerian authorities cannot continue to fold their arms while atrocities are committed against their citizens in the former apartheid enclave. Our countrymen and their businesses face existential threats daily in South Africa. The primary constitutional duty of any responsible government is the protection of the lives and property of its citizens, whether at home or abroad.

In times past, South Africa was at the mercy of the international community, and other African nations generously came to its aid. Today, it is deeply ironic and unfortunate that South Africans are the ones chasing away citizens of the very countries that sheltered them. The current hostility, which extends to cold-blooded murder and the arson of foreign-owned shops, is a complete betrayal of continental solidarity.

We firmly believe that this is not an indignity that Nigerians should continue to stomach. We call on the Federal Government in Abuja to deal with this recurring diplomatic crisis with all the seriousness and firmness it deserves. Standard diplomatic platitudes and routine condemnations have failed to yield results, meaning a more robust approach is now required.

We equally call on the African Union to intervene decisively in this situation. This crisis directly affects multiple member states, as citizens of Ghana and other African countries have also fallen victim to the hostility. The African Union must step up to resolve this matter permanently, as allowing a member nation to persistently violate the spirit of continental integration undermines the purpose of the union.

President Ramaphosa attributes the unfortunate developments to mere criminals and opportunists, but we must ask if that is all a head of state is supposed to say. What decisive judicial measures are the South African authorities taking to end these ugly incidents? After all, reports indicate that the two Nigerians who died were killed by the nation’s security forces, raising questions about whether the state itself is complicit.

If these perpetrators are South African citizens, the government must demonstrate that they are truly being treated as criminals under the law. It is imperative for the Nigerian government to sustain intense diplomatic pressure on the South African authorities to ensure justice is served. The African continent shares a common destiny, and its peoples must begin to see themselves as one brotherhood.

When South Africa needed liberation from the shackles of apartheid, Nigeria was at the forefront of the struggle. At a point, the giant of Africa structurally aligned its foreign policy to reflect Africa as its centrepiece. Salaries of Nigerian civil servants were deducted to fund the anti-apartheid struggle, and many South Africans received free university education in Nigeria, including former President Thabo Mbeki.

While we understand that severe economic pressures exist within South Africa, targeting foreign businesses is a counterproductive response. The businesses currently being destroyed are legitimate, tax-paying entities that actually employ South African youth. The Pretoria government must find a sustainable way to accommodate and protect legal migrants who contribute directly to the local economy.

South Africans frequently tell foreigners to return and build their own nations, but they must remember when those same foreign nationals helped build their nation in its hour of greatest need. A day may well come when South Africa will require the support of its neighbours once again. Let the former apartheid country rise to the occasion, embrace its history, and finally become its brother’s keeper.