Business
N21.73trn Debt: Don Cautions FG On External Borrowings
An economist, Prof. Sheriffdeen Tella, last Monday described the nation’s debt stock of N21.73 trillion as worrisome and urged the Federal Government to stop external borrowing.
Tella, a professor of Economics at Olabisi Onabanjo University, Ago-Iwoye, Ogun State, expressed his views in an interview with The Tide source in Lagos, last Monday.
He said that the current size of the country’s external debt was worrisome.
The Debt Management Office (DMO), on March 14, said that Nigeria’s external debt had risen to 18.91 billion dollars (N5.79 trillion) as at December 31, 2017.
The DMO said that domestic debt also rose to N15.94 trillion, bringing the total debt stock to N21.725 trillion (70.92 billion dollars).
According to the economist, the total external debt of 18.91 billion dollars is very high compared to the current Gross Domestic Product (GDP).
He said that the current GDP growth rate was largely due to higher crude oil price than increased output in agriculture.
Tella said that there was no rationale for government to borrow in dollars to offset domestic debts, stressing that part of the earnings from oil should be monetised to offset such debt.
According to him, government is borrowing as if the country is not earning foreign exchange which can be used to meet some of the external needs.
“What is the pride in accumulating external debt when you are at the same time building external reserve?
“The ratio of debt service to the annual budget continues to rise, thereby depriving the nation of funds that should go into project execution and general economic development,” Tella said.
He said that apart from the delay in passing the 2018 budget and attendant delay in budget implementation which were affecting the speed of economic recovery, the huge sums spent on debt servicing also contributed to the slow economic recovery.
“This is the time to put a stop to these orgies of borrowing. How much of the dollar borrowed reach the shores of Nigeria?
“A sizeable proportion is used for agency fees, facilitator fees, technical expertise, purchase of equipment, machinery, and other production inputs that are not produced locally, and payments are made for all these in foreign currency,” the don said.
Tella said that a number of research results had shown that external debts had negative impact on the development of the country.
He said that the earlier the National Assembly stopped approving borrowing, the better it would be for the country.
Tella said that there must be a threshold for external reserve and once the threshold is met, the rest should be for infrastructure development and other items we borrowed money to execute.
Nkpemenyie Mcdominic
Reports say that the training is designed to equip youths with practical technical skills for employment in the oil and gas and construction sectors, with emphasis on employability, safety, competence and self reliance.
In attendance at the flag-off ceremony this week, at the Petroleum Training Institute (PTI) Conference Hall, Effurun, were stakeholders, dignitaries, and political representatives, among others.
Dafinone, represented by his Chief of Staff, Adelabu Bodjor, said the initiative reflects a deliberate political investment in human capital development across Delta Central.
He explained that the training focuses on rigging and scaffolding, noting that “both are essential technical competencies required in industrial operations, construction projects, and oil and gas installations”.
Bodjor added, “The programme is intended to reduce dependency among youths by providing job-ready skills capable of supporting long-term economic opportunities and self-sufficiency. The initiative aligns with Senator Dafinone’s broader development agenda, which prioritises practical skill acquisition as a pathway to sustainable empowerment.”
Also addressing the participants, the NCDMB, Felix Omatsola Ogbe, represented by Mr. Teddy Bai, commended Dafinone for sponsoring the programme, describing it as “a timely response to critical manpower gaps in the industry”.
Bai explained that rigging and scaffolding remain safety-sensitive skills required across fabrication yards, offshore platforms, and construction sites, stressing that the programme bridges the gap between certification and practical competence.
He also charged the training consultant, OROH Contractors Limited, to maintain strict standards of professionalism, safety, and discipline, while urging participants to remain committed, focused, and disciplined throughout the exercise.
The Senate Liaison Officer for Sapele Local Government Area, Chief Patrick Akamuvba, , described the programme as a major step in strengthening human capital development in Delta Central.
Akamuvba said scaffolding and rigging skills are in high demand across residential, commercial, and industrial construction projects, noting that the training offers real employment opportunities for beneficiaries
He urged participants to prioritise knowledge and certification over short-term material expectations, stressing that discipline and seriousness would determine their long-term success.
He also cautioned youths against social vices and distractions, advising them to remain focused to maximise the opportunities provided by the programme.
