Opinion

Nigeria And Debt Burden

Published

16 years ago

March 27, 2010

Amidst conflicting claims that Nigeria external debt has blown up again after the country’s exit from Paris club, the House of Representatives summoned the Minister of Finance, Alhaji Mansur Mukhtar to appear before its ad-hoc committee on foreign loans on 16th February , 2010 to clarify issues pertaining Nigeria’s external debts .

Nigeria’s exit from the Paris club debt was in 2005/2006. of course the country’s debt dropped from what it used to be before the exit process commenced, the external debt stock stood at about United States $35.94billion by the end of December, 2004.

Murhktar urged the house committee to disregard insinuating of the increase in the country’s debt asserting emphatically that the debt stock dropped dramatically and substantially after the ccountry’s exit from Paris Club (in 2005/2006). He said ; “By end –December 2006. The stock was a much lower amount of USB 3.54 billion. The debt stock figure by end-december ,2007 was USD 3.65 billion, by end – December,2008 it was USD 3.72, and by end –December, 2009, it was USD 3.97 billion”.

It is worthy to note that….the constitution of the Federal Republic of Nigeria did not specifically make provision on borrowing. However, under the second schedule, section 4, item 7, of the exclusive legislative list, the National Assembly is conferred with the powers to make laws in respect of borrowing of money within or outside Nigeria for the purpose of the federation of a state. Pursuant to this power the National Assembly has enacted the debt management Act, 2003 and the fiscal responsibility Act , 2007.

In particular , section 19 (1)and(2) of the DMO Act requires that the borrowing programme for every succeeding year be approved by the national assembly . In compliance with this requirement, the borrowing programme for fiscal 2010 has been included as part of the 2010 appropriation bill.

The Finance Minister clarify that state governments are not allowed to borrow directly from external source. And that a state government or its agency can obtain external loans only through the federal Government. (Fiscal Responsibility Act, Section 47 (3)). In accessing external loans, a government or its agency has to comply with the relevant guidelines and requirements which derives from responsibility Act and the DMO Act .These include: the national debt management framework , the external borrowing guidelines and the sub- national borrowing guidelines. External borrowing by the federal and state governments within the borrowing programme included in the budget are still subjected to these guidelines by the debt management office under the authority of the minister of finance .In essence , there is effective control to ensure compliance with the provisions of the constitution and other external laws and guidelines.

In line with the current national borrowing guidelines, Nigeria’s external borrowing since the exit from the Paris Club and London Club debts has been limited to concessional sources. These credits, essentially from the international development association(IDA) and African development fund (ADF) windows , of the World Bank and the ADB, respectively, have a 40-year repayment period including a 10 –year grace period. (Murkhtar said although several loans were considered, negotiated and processed between 2007 and 2009, only $1,831.60 billion became effective during the period. The total amount drawn down between 2007 and 2009 was $1,318.22 billion , which was made up of $880.89 million (disbursements on old loans contracted before 2007 ), and $437.33 million (disbursements on loans contracted between 2007 and 2009).

Part of the reason for the misunderstanding of Nigeria’s external debts , He said ,is the non- recognition that when Nigeria paid off its paris club and London club debts, it did not pay off its multilateral debts, as this was neither necessary nor desirable. Only the problematic and the odious component the external debt was cleared off.

Much of the external debts remaining after the exit from the Paris and London club debts are loans from multilateral financial institution (word bank, African development bank, international fund for agricultural development, etc). The loans from this source constitute about 85% of the country’s external debt stock as at march 31, 2009. It is pertinent to note that about 83% of the interest charges: service charge of 0.75%p.a and long repayment periods of 40 years and above, including a grace period of 10 years.

In view of their long tenors, implying gradual installment payments, it is obvious that some of the outstanding loans were contracted more than 20 years ago and cannot be contributed to the last few years. Indeed, some of the loans were contracted in the 1960s, 1970s and 1980s for various infrastructural and social development projects. It is because their payments were scheduled to be gradual so as not to put serious burden of Fiscal resources, that part of them are still outstanding. That the loans have a long repayment period is beneficial, given the nature of the projects and services they financed – projects and services like basic education, health and rural water supply, as well as roads whose revenue-generating impact is at the best slow, small and indirect. More importantly, it should be noted that much of the loans were applied to the provision of social and infrastructural services over the years. There is no doubt that some of the infrastructure funded in the 1960s, 1970s and 1980s are still useful assets to the people.

While the Post-Paris Club external debt stock has remained sufficiently restrained, it does vary up and down within reasonable limits even if no new loans have been incurred. This is because old loans could still be disbursing while, at the same time, repayments of principal amounts due could be taking place. The direction of the swing in the outstanding debt stock, therefore, depends on the net result of disbursements and repayments.

Nevertheless, the Finance Minister assumed that government is committed to ensuring debt sustainability and avoiding a replace into the pre-Paris Club debt exit situation. In line with this posture, the Debt Management Office has developed a National Debt Management Framework (NDMF) to guide the policy and strategy for external and domestic borrowing by the federal and states governments, as well as their agencies. The NDMF contains specific guidelines for borrowing, designed not only to limit borrowings to sustainable levels but also to ensure that there is a value for money and that the use of funds leads to the growth, employment and poverty reduction. Further, the DMO working closely with the Ministry of Finance, the CBN, the National Planning Commission and other agencies conducts annually, a Debt Sustainability Analysis (DSA) to keep track of the statics and dynamics of the public debt sustainability under changing local and external scenarios.

For the same reason, the DMO he said is making significant progress in implementing the Template foe helping every of the 36 States of the Federation.

Justus Awaji

Opinion

NDDC: Time To Illuminate Homes

Published

4 hours ago

March 2, 2026

The Tide

Quote:“Twenty-five years on, the Niger Delta cannot celebrate illuminated streets while families sit in darkness. Development must begin inside the home — where children study, businesses grow, and lives are built — before it glows on the roadside.”

The Niger Delta Development Commission (NDDC) was established in 2000 with a clear and urgent mandate: to facilitate the rapid, even, and sustainable development of Nigeria’s oil-producing Niger Delta region. The creation of the Commission followed decades of agitation over environmental degradation, infrastructural neglect, and socio-economic marginalization in the region. Its core mandate included the development of roads, bridges, electricity, water supply, health facilities, education, housing, environmental remediation, and economic empowerment initiatives. At inception, expectations were high that the Commission would transform the Niger Delta into a model of regional development. Over the years, the NDDC has indeed implemented numerous projects across the nine Niger Delta states. Roads have been constructed and rehabilitated in several communities, easing transportation challenges.

Schools have been renovated, and new classroom blocks have been provided in underserved areas. Health centres have been built or upgraded, improving access to primary healthcare services. The Commission has also awarded scholarships to students, including foreign postgraduate scholarships, empowering thousands of youths academically.Skills acquisition and youth empowerment programmes have helped many young people gain vocational competencies.Through various interventions, the NDDC has contributed to job creation and local economic stimulation.Solar-powered street lighting projects have been widely implemented in urban and semi-urban communities. These streetlights have improved visibility at night and contributed to enhanced security in some areas. Markets, highways, and public spaces illuminated by solar lights have experienced extended business hours.

For these efforts, the Commission deserves acknowledgment and commendation. However, development must always align with foundational mandates and pressing grassroots realities. A growing concern among residents is that while streets are illuminated, many homes remain in darkness. Rural electrification and household power access remain inconsistent and inadequate across large parts of the region. In riverine and remote communities, families still rely on generators, kerosene lamps, or complete darkness after sunset. The irony of brightly lit streets juxtaposed with powerless homes cannot be ignored. Electricity at the household level directly impacts education, health, and small-scale enterprise. Students cannot effectively study at night without reliable indoor lighting.Families cannot preserve food or power essential appliances without stable electricity.

Micro and small businesses struggle to grow without dependable energy access. While street lighting enhances public aesthetics and security, it does not substitute for domestic electrification. The proverb “charity begins at home” is especially relevant in this context. True community development must first empower households before beautifying public spaces. The Commission’s original mandate emphasizes integrated and sustainable development, not isolated infrastructural gestures. Balanced development requires that energy interventions prioritize homes alongside streets. Solar technology presents a unique opportunity for decentralized household electrification in off-grid communities. Extending solar solutions to individual homes would have a transformative social impact. Home-based solar systems could power lights, fans, small appliances, and communication devices.

Such interventions would reduce poverty, improve living standards, and stimulate grassroots productivity. By broadening its energy focus, the Commission would better reflect the spirit of its founding legislation. This is not a call to abandon street lighting projects, which have their merits. Rather, it is an appeal for balance, inclusivity, and alignment with core developmental objectives. Strategic planning should ensure that rural electrification and household access form a central pillar of ongoing interventions. Community engagement and needs assessments can help determine priority areas for household solar deployment. Twenty-five years after its establishment, the NDDC stands at a reflective moment in its institutional journey. The people of the Niger Delta say: thank you for the efforts so far—but not very much—because true appreciation will come when development begins at home and radiates outward, not merely when streets shine while houses remain in darkness.

By: King Onunwor

Opinion

When Democracy Becomes Too Expensive

Published

4 hours ago

March 2, 2026

The Tide

Quote: “When elections become investments to be recovered, governance turns transactional and the moral foundation of democracy begins to erode.”

The high cost of participating in politics in Nigeria remains a serious and growing concern. The trend is rising so sharply that democratic competition increasingly risks becoming the preserve of a wealthy few. From exorbitant party nomination fees to campaign logistics, media exposure, litigation expenses, and regulatory charges such as the proposed ?150 million campaign advertising permit reportedly introduced in Enugu under Governor Peter Mbah, the financial barriers to public office are steadily hardening. If not addressed, this trajectory could erode inclusion, weaken electoral credibility, and deepen corruption within the political system.

Money has always played a role in politics. Elections require funding for mobilisation, communication and administration, while political parties need resources to organise primaries and reach voters across the nation’s diverse terrain. However, when financial demands become excessive, they cease to be necessities and instead become structural barriers that exclude capable citizens from participation.

The Enugu situation provides a troubling case study. Reports indicate that the Enugu State Structures for Signage and Advertisement Agency (ENSSAA) announced a mandatory ?150 million advertising permit fee for parties and candidates participating in the 2026 local government and 2027 general elections. According to the agency’s General Manager, Francis Aninwike, the fee would permit deployment of campaign materials — banners, branded vehicles, T-shirts and handbills — and street rallies, with sanctions for non-compliance.

One is compelled to ask: how can someone vying for office be required to pay ?150 million merely as an advertising permit, separate from nomination forms and other logistics? Where would a civil servant, a teacher earning N70,000 minimum wage, or a young graduate eager to serve find such a sum? How can ordinary citizens compete in a system demanding such staggering outlays?

An opposition party has described the steep fee as a ploy by the All Progressives Congress (APC) in Enugu State to stifle opposition participation. Whether sustained or not, the perception is damaging. Aside from incumbents or those backed by powerful interests, how many candidates can realistically afford ?150 million solely for advertising clearance?

There is no dispute that state agencies have legitimate responsibilities. Regulating outdoor advertising and preventing visual pollution are valid objectives. However, such regulation should not come at a heavy cost to Nigeria’s fragile democracy. The Aninwike-led ENSSAA and similar bodies must recognise that while regulation is necessary, affordability is essential for democratic participation.

The constitutional framework recognises the central role of the Independent National Electoral Commission (INEC) in ensuring free and fair elections. Yet formal administration is only part of the democratic equation. Informal financial pressures — delegate inducements, media monetisation, security logistics and post-election litigation — already multiply the cost of contesting beyond official limits. Massive campaign-related fees further compound an expensive process.

Recent findings presented at a policy engagement organised by the Westminster Foundation for Democracy in Abuja underscored the gravity of the situation. House of Representatives Minority Leader Kingsley Chinda warned that Nigerian politics is becoming an elite preserve in which only those with deep pockets can compete. Access to vast financial resources, he argued, has become a near precondition for political viability, transforming what should be a civic right into an expensive venture.

He noted that politics in Nigeria has been thoroughly monetised, systematically pricing out women, youth and persons with disabilities — the very groups policy frameworks claim to uplift.

The implications are disturbing. In a context where elections are viewed as investments, public office becomes a site of capital recovery. Contracts are inflated, appointments monetised, and governance turns transactional. What emerges is a vicious cycle: only the wealthy can contest, and once in office, they seek to recoup their investment, deepening public cynicism and eroding the moral basis of governance.

Although some parties waived nomination fees for women in 2017 and 2023, and parties such as the Young Progressive Party were formed to promote youth participation, exorbitant campaign expenditures continue to sideline many aspirants. Women accounted for only about 8.4 per cent of candidates in the 2023 general elections, with similarly low youth representation.

The cumulative effect is dangerous. When political entry is determined primarily by financial capacity rather than competence or vision, the recruitment pool narrows drastically. Talented professionals and grassroots organisers may never appear on ballots simply because they cannot afford the price of entry. A system that filters out merit while rewarding wealth weakens governance outcomes.

Nigeria must therefore treat rising electoral costs not as routine complaints but as democratic stability concerns. Political parties should drastically reduce nomination fees, especially for women, youth and persons with disabilities. Transparent fundraising and spending disclosures should replace opaque financing structures.

Regulatory agencies must balance administrative control with democratic openness. Campaign advertising fees should be proportionate and structured in ways that do not create artificial barriers. INEC and other enforcement institutions must strengthen monitoring of spending ceilings and apply meaningful sanctions for violations.

Civil society, the media and professional bodies also have critical roles to play. Public discourse should prioritise issue-based campaigns rather than money-driven spectacle.

Ultimately, democracy thrives not merely when elections are conducted, but when they are genuinely accessible. Political participation must remain a civic right, not a luxury commodity. Nigeria’s democratic journey cannot afford to drift into a system where leadership selection depends primarily on financial muscle rather than merit and service.

By: Calista Ezeaku

Opinion

Righteous Leadership Still Thrives

Published

1 week ago

February 23, 2026

The Tide

Quote: “Institutional decay is not irreversible when integrity and action sit at the helm.”

In every institution, there comes a defining moment when leadership either deepens decline or inspires rebirth. For the Rivers State Newspaper Corporation (Publishers of The Tide), that defining moment arrived when the Permanent Secretary, Ministry of Information, Sir. Honour Sirawoo Ph.D, came to share the premises with the Staff of The Corporation due to the ongoing renovation work at the State Secretariat. For years, the physical condition of the corporation mirrored the uncertainty that hung in the air. Leaking roofs told silent stories during the rainy season, damaged floors bore the weight of neglect, and the once vibrant environment seemed to plead for urgent attention. Staff members worked under conditions that tested both resilience and commitment. Buckets placed strategically to catch dripping water became a routine sight at some quarters, while cracked tiles and weathered walls diminished the pride that should accompany service in a state-owned media institution.

Yet, in the midst of these challenges, hope was not entirely lost. There remained a collective belief that with purposeful leadership, restoration was possible. That hope found expression when Honour Sirawoo Ph.D., Permanent Secretary in the Rivers State Ministry of Information, assumed as a co-occupier. His arrival was quiet, but his impact would soon resonate loudly across the premises.Leadership, it is often said, is not about occupying an office but about occupying responsibility. From his earliest inspections of the corporation’s facilities, it became evident that he saw not just buildings in disrepair, but a workforce deserving of dignity.The transformation began swiftly. Contractors appeared on site. Assessments were carried out with precision. Plans were not merely announced; they were implemented. Leaking roofs that had long defied repair were carefully amended.

For the first time in years, staff could listen to rainfall without anxiety. Damaged floors were reconstructed, restoring both safety and aesthetics. Walking through the corridors no longer required cautious navigation around broken surfaces. The fencing of the premises, once a pressing security concern, became a priority. A properly secured environment now speaks of order, responsibility, and foresight. General maintenance, often overlooked in public institutions, was institutionalized. From structural reinforcements to aesthetic upgrades, the corporation began to wear a new look. But beyond bricks and mortar, something deeper changed. Morale improved. Staff productivity increased. The psychological boost of working in a conducive environment cannot be overstated. The transformation has not merely been cosmetic; it has been cultural.

Workers now speak with renewed pride about their workplace. Visitors to the premises have noticed the difference. The once tired-looking structures now stand as testimony to what decisive leadership can accomplish. In governance, righteousness is reflected in fairness, diligence, and a genuine concern for people. These virtues have characterized the stewardship of Honour Sirawoo Ph.D.His approach demonstrates that public office is a sacred trust, not a ceremonial title. He has shown that administrative leadership can be both compassionate and result-driven.The improvements at the corporation align with a broader vision of strengthening information dissemination in Rivers State. A vibrant media institution is essential for democratic growth.By restoring the physical infrastructure of The Tide, he has indirectly strengthened the voice of the state. Journalists and editors now operate in an atmosphere that encourages excellence.

It is often said that environment influences output. The recent editions and renewed energy within the newsroom reflect this truth. When righteous leadership prevails, systems respond positively. Accountability replaces complacency, and progress becomes measurable. Honour Sirawoo Ph.D. has exemplified a leadership style rooted in integrity and practical action. He did not merely acknowledge problems; he confronted them. Such commitment deserves recognition beyond routine commendation. It speaks to a capacity for higher responsibilities within the state’s administrative architecture. Rivers State stands at a critical juncture where visionary administrators are needed across ministries and agencies. Leaders who understand that development begins with attention to detail are invaluable. The transformation at the Rivers State Newspaper Corporation serves as a case study in responsive governance. It proves that institutional decay is not irreversible.

Higher positions of trust demand proven competence, moral uprightness, and administrative foresight. In these respects, Honour Sirawoo Ph.D. has demonstrated remarkable readiness. His performance suggests suitability not only for continued leadership within the Ministry of Information but also for broader strategic roles that shape state policy. Beyond the state, Nigeria’s public service landscape requires administrators who combine academic depth with practical efficiency. His credentials and achievements place him in that league. “When the righteous bear rule, the people rejoice” is more than a biblical aphorism; it is a lived experience within the corporation today. The chapter of the Holy Bible that declares, “When the righteous are in authority, the people rejoice”, (Proverbs 29:2), is a timeless reminder that good governance brings joy and stability to the people.

The joy of the staff is visible in their renewed dedication. The pride of ownership has returned. The institution breathes again. History often remembers leaders not for speeches but for tangible impact. The restored roofs, repaired floors, secured fences, and ongoing maintenance are enduring symbols of purposeful governance. The place started its journey to new looks with the arrival of the acting General Manager, Stella Gbaraba, who in her little way, initiated and executed some repair works in the premises. It will be worthy to point out that the duo are of the Ogoni extraction of the state, it is then safe to say that the combination is superb in that it has produced some excellent results. Importantly, the Permanent Secretary did not stop at The Tide Newspaper premises alone. His vision of renewal extended beyond a single institution to embrace all the State owned media houses under the ministry’s supervision.

At Rivers State Television, he executed massive renovation works that redefined the operational environment. Offices were upgraded, structural defects corrected, and modern standards restored to a facility that serves as a visual voice of the state. State-of-the-art office equipment were procured to enhance efficiency, ensuring that staff members could perform their duties with contemporary tools befitting a modern broadcast station. Radio Rivers too also got its own share of the Permanent Secretary’s benevolence and team spirit. Understanding the strategic importance of radio in grassroots communication, he ensured that critical infrastructure received attention. He provided them with steady power supply, reducing the interruptions that once hampered seamless broadcasting and ensuring consistency in programming delivery.

A functional Out Broadcast Van (OB Van) was made available, expanding the station’s capacity for live coverage of events across the state and beyond. The studios were upgraded to be up-to-date, improving sound quality, technical operations, and overall broadcast standards in line with modern expectations. Garden City Radio equally got its own touch in a superlative way. Renovation, equipment upgrades, and operational enhancements positioned the station on a stronger footing. Across the board, his interventions were not selective but comprehensive, reflecting a leadership philosophy anchored on inclusiveness and institutional strengthening. His target generally is to leave the State-owned media houses in a better shape than he met them. That objective is not rhetorical; it is practical and measurable in bricks, cables, studios, offices, and renewed human confidence.

By strengthening television, radio, and print under one coordinated vision, he has reinforced the information architecture of Rivers State. The cumulative effect of these interventions is a more vibrant, responsive, and professional state media system capable of meeting contemporary communication demands. As the Rivers State Newspaper Corporation along side its sister state-owned media houses continue their journey, it does so strengthened by the evidence that righteous leadership still thrives. And indeed, when the righteous bear rule, the people truly rejoice.

By: King Onunwor