Opinion
Checking Nigeria’s Rising Domestic Debt
Recently, the Debt Management Office (DMO), said in an annual report on its website that Nigeria’s external debt increased by 6.2 per cent to $3.95billion while domestic debt rose to $21.8billion from $17.7billion.
In the same vein, the nation’s total debt rose by 21 per cent in 2009 to $25.8billion, which represented 13.8 per cent of the country’s Gross Domestic Product (GDP), the DMO report revealed.
It said that 85 per cent of the nation’s public borrowing was from the domestic market last year alone while 15 per cent came from abroad with the local component representing 83 per cent of total borrowing.
Since the former finance minister, and current Managing Director of the World Bank Group, Dr Ngozi Okonjo-Iweala played a major role in Nigeria’s 2995 Paris Club debt relief deal; it would appear that the country has still not learnt to apply the brakes in both external and domestic borrowing.
Worried by the development, Okonjo-Iweala recently raised an alarm in which she warned that if the Federal Government does not watch the rising domestic debt profile, Nigeria’s growth may be stagnated.
Speaking to journalists during the 2010 World Bank/International Monetary Fund annual meetings two weeks ago in Washington, DC, the United States capital, the World Bank managing director said Nigeria must at the present level of domestic debt, stop its accumulation to prevent unfavourable consequences.
Clearly, not much has changed, post-2005, when Nigeria exited the debt trap. The conditions that led to that debilitating debt problem still exist, and Nigerians must resolve to address them comprehensively and patriotically.
One of the problems remains the near absolute dependence on oil revenue, which as it were, plays tricks on our economy. In one breath, the oil money encourages our bureaucrats to accumulate whatever debt they can, believing Nigeria can pay. In another breath, the fluctuating prices of crude oil in the international market, when it dips, throws a spanner in the works of our domestic planning, thus hindering national growth.
This makes the need for the diversification of the nation’s revenue sources an imperative, especially the development of the nation’s agricultural potentials, the manufacturing sector and exploitation of her mineral resources, with which, she is abundantly endowed.
The endemic corruption in the political class is another factor in the nation’s penchant for debt accumulation.
Since very few people in the corridors of power are there to serve, the majority, who are there to enrich themselves and their families, even to succeeding generations, unabashedly corner the commonwealth, thereby stunting national development and compounding the nation’s debt problems.
When our lawmakers at all levels corner the lion share of recurrent budgetary allocation, contracts are inflated, paid for up-front, and abandoned while capturing political power becomes the easiest way to wealth, then the nation’s finances must expectedly be in crisis.
In addition, the docility of the populace with regard to making public officials accountable is another factor in the management of the nation’s finances. Conditioned by the pervasive corruption in the land, the attitude of the average Nigerian to the corrupt and acquisitive tendencies of public office holders and politicians is ‘it is their turn, let them enjoy their loot’.
This must not be so. Intellectuals and civil society organizations, have a role to play here in collaborating with the media to raise critical questions on accountability by public office holders.
Perhaps, the most important factor in the debt management issue is the enormous cost of running the current democratic government. Obviously, more money is expended on recurrent expenditure than on capital projects.
Indeed, we have on hand a national crisis of the cost of governance, which should make government to reappraise its expenditure pattern so that it does not go borrowing to sustain profligate lifestyles of public office holders.
There is the need to sustain the economic fundamentals that would continue to make the Nigerian economy grow. There is the need for a fiscally prudent approach to the management of the nation’s resources.
Presently, a lot of spending is going on, and the nation’s fiscal deficit has risen from three per cent to six per cent of the GDP.
As Okonjo-Iweala warned, if accumulation is domestic debt is not stopped, private sector investment would be crowded out and the economy would be the worse for it.
Therefore, the minister of finance, and the governor of the Central Bank of Nigeria must be guided by Okonjo-Iweala’s warning to adopt measures to check internal borrowing and bring down the nation’s fiscal deficit.
The role of anti-graft agencies, including the Independent Corrupt Practices Commission, and the Economic and Financial Crimes Commission, remain relevant in checking the diversion and stealing of the nation’s fund, and bring public officers and others who defraud government and compound its financial problems to justice.
Above all, government is required to show the will to conduct business within the ambit of due process, and best practices while showing zero tolerance for those who, by their acquisitive tendencies, want to maroon the nation in economic stagnation and debt.
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Restoring Order, Delivering Good Governance
The political atmosphere in Rivers State has been anything but calm in 2025. Yet, a rare moment of unity was witnessed on Saturday, June 28, when Governor Siminalayi Fubara and Minister of the Federal Capital Territory, Chief Nyesom Wike, appeared side by side at the funeral of Elder Temple Omezurike Onuoha, Wike’s late uncle. What could have passed for a routine condolence visit evolved into a significant political statement—a symbolic show of reconciliation in a state bruised by deep political strife.
The funeral, attended by dignitaries from across the nation, was more than a moment of shared grief. It became the public reflection of a private peace accord reached earlier at the Presidential Villa in Abuja. There, President Bola Ahmed Tinubu brought together Governor Fubara, Minister Wike, the suspended Speaker of the Rivers State House of Assembly, Martin Amaewhule, and other lawmakers to chart a new path forward.
For Rivers people, that truce is a beacon of hope. But they are not content with photo opportunities and promises. What they demand now is the immediate lifting of the state of emergency declared in March 2025, and the unconditional reinstatement of Governor Fubara, Deputy Governor Dr. Ngozi Odu, and all suspended lawmakers. They insist on the restoration of their democratic mandate.
President Tinubu’s decision to suspend the entire structure of Rivers State’s elected leadership and appoint a sole administrator was a drastic response to a deepening political crisis. While it may have prevented a complete breakdown in governance, it also robbed the people of their voice. That silence must now end.
The administrator, retired naval chief Ibok-Ette Ibas, has managed a caretaker role. But Rivers State cannot thrive under unelected stewardship. Democracy must return—not partially, not symbolically, but fully. President Tinubu has to ensure that the people’s will, expressed through the ballot, is restored in word and deed.
Governor Fubara, who will complete his six-month suspension by September, was elected to serve the people of Rivers, not to be sidelined by political intrigues. His return should not be ceremonial. It should come with the full powers and authority vested in him by the constitution and the mandate of Rivers citizens.
The people’s frustration is understandable. At the heart of the political crisis was a power tussle between loyalists of Fubara and those of Wike. Institutions, particularly the State House of Assembly, became battlegrounds. Attempts were made to impeach Fubara. The situation deteriorated into a full-blown crisis, and governance was nearly brought to its knees.
But the tide must now turn. With the Senate’s approval of a record ?1.485 trillion budget for Rivers State for 2025, a new opportunity has emerged. This budget is not just a fiscal document—it is a blueprint for transformation, allocating ?1.077 trillion for capital projects alone. Yet, without the governor’s reinstatement, its execution remains in doubt.
It is Governor Fubara, and only him, who possesses the people’s mandate to execute this ambitious budget. It is time for him to return to duty with vigor, responsibility, and a renewed sense of urgency. The people expect delivery—on roads, hospitals, schools, and job creation.
Rivers civil servants, recovering from neglect and under appreciation, should also continue to be a top priority. Fubara should continue to ensure timely payment of salaries, address pension issues, and create a more effective, motivated public workforce. This is how governance becomes real in people’s lives.
The “Rivers First” mantra with which Fubara campaigned is now being tested. That slogan should become policy. It must inform every appointment, every contract, every budget decision, and every reform. It must reflect the needs and aspirations of the ordinary Rivers person—not political patrons or vested interests.
Beyond infrastructure and administration, political healing is essential. Governor Fubara and Minister Wike must go beyond temporary peace. They should actively unite their camps and followers to form one strong political family. The future of Rivers cannot be built on division.
Political appointments, both at the Federal and State levels, must reflect a spirit of fairness, tolerance, and inclusivity. The days of political vendettas and exclusive lists must end. Every ethnic group, every gender, and every generation must feel included in the new Rivers project.
Rivers is too diverse to be governed by one faction. Lasting peace can only be built on concessions, maturity, and equity. The people are watching to see if the peace deal will lead to deeper understanding or simply paper over cracks in an already fragile political arrangement.
Wike, now a national figure as Minister of the FCT, has a responsibility to rise above the local fray and support the development of Rivers State. His influence should bring federal attention and investment to the state, not political interference or division.
Likewise, Fubara should lead with restraint, humility, and a focus on service delivery. His return should not be marked by revenge or political purges but by inclusive leadership that welcomes even former adversaries into the process of rebuilding the state.
“The people are no longer interested in power struggles. They want light in their streets, drugs in their hospitals, teachers in their classrooms, and jobs for their children. The politics of ego and entitlement have to give way to governance with purpose.
The appearance of both leaders at the funeral was a glimpse of what unity could look like. That moment should now evolve into a movement-one that prioritizes Rivers State over every personal ambition. Let it be the beginning of true reconciliation and progress.
As September draws near, the Federal government should act decisively to end the state of emergency and reinstate all suspended officials. Rivers State must return to constitutional order and normal democratic processes. This is the minimum requirement of good governance.
The crisis in Rivers has dragged on for too long. The truce is a step forward, but much more is needed. Reinstating Governor Fubara, implementing the ?1.485 trillion budget, and uniting political factions are now the urgent tasks ahead. Rivers people have suffered enough. It is time to restore leadership, rebuild trust, and finally put Rivers first.
By: Amieyeofori Ibim
Amieyeofori Ibim is former Editor of The Tide Newspapers, political analyst and public affairs commentator
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