Nation

‘Nigeria’s External Debt-To-Revenue Up 400% In 10 Years’

Published

5 years ago

April 14, 2021

Nigeria’s external debt to total revenue increased from 8 per cent in 2011 to 400 per cent in 2020, a former governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, has said.

Sanusi lamented the situation while participating in an online roundtable discussion tagged, “Debt Relief for a Green and Inclusive Recovery in Nigeria”, organised by Heinrich Böll Foundation.

The former CBN governor said Nigeria has a debt services ratio of up to 90-96 per cent but there are certain other elements of debts that analysts have not paid attention to.

He said, “If you go through the CBN statistical bulletin, in 2011, the total federally collected revenue from all sectors was N18.9trillion at N165 to the dollar. This will have placed federally collected revenue in 2011 at $55.5billion.

“Meanwhile, debt at that time was $5billion, so, we had an external debt to external revenue of about 8 per cent in 2011. By 2020, we have an external debt of about $33.4billion but all revenues in 2020 were about $8.3billion. So, it has moved from 8 per cent to 400 per cent between 2011 and 2020.

“And this is a serious red flag that I’ve not seen being pointed out in the conversation around debt sustainability especially given the facts that exports are yet to be diversified at the book of our revenues from oil sectors given what we’ve seen and what have been discussed today about the prospect of hydrocarbons as we move into a greener world.”

Nigeria’s debt position has been a source of concern for development experts in recent years, especially in the midst of dwindling oil revenue.

Sanusi, who was recently deposed as Emir of Kano, noted that in measuring debt sustainability, the debt to Gross Domestic Product (GDP) ratio is a useless metric.

“You do not service debt out of GDP, you service debt out of revenues,” he said.

“If only 20 per cent of your GDP is paying taxes, if you have a debt GDP ratio of 20 per cent, you are likely to have a debt service to revenue ratio of 100 per cent.

“So, for a long time, I have been concerned about this idea that if (having) 25, 30 or 35 per cent debt to GDP ratio is fine, because you’ve got countries that are activating 90 per cent.”

He added that in the countries where debts to GDP numbers are high, tax is a major component of government revenues.

Sanusi also explained that high interest rates with high debts could lead to difficult financial situations.

He also explained further that another key part of the nation’s debt profile is the components of bilateral loans, of which China is a major player, with $3.2billion of Nigeria’s $4.1 bilateral debt, that’s about 78 per cent.

He explained that any talk about debt sustainability has to involve China as a very dominant player.

The former CBN governor agreed that the call for debt relief is in the right direction, but the nation needs to show serious commitment and review the structure of its government and economy.

He noted that as countries begin to lift Covid-19 restrictions on travels, there will be increased demand for forex on travel, further putting pressure on the country’s exchange rate.

“When the world reopens and people start travelling, that is going to lead to an increase in demand on forex for travel and that is going to exert further pressure on the balance of payments.

“Now, these are the kinds of considerations I think we need to bear in mind when we talk about the sustainability of a debt situation.

“Honestly, I think debt relief is very necessary if this country is going to have the fiscal space to pursue any kind of developmental objectives. We can’t be spending 90 or 100 per cent of our revenue on debt service and don’t have anything to invest in development.”

According to Sanusi, the country needs to invest in education and agriculture, stressing that these two sectors will help play a key role in lifting Nigerians out of poverty.

Part of the problem Nigeria faces, he said, is that there has been significant under-investment in education and health care, and the productivity of agriculture.

“And these are the kinds of things that we need to lift people out of poverty and bring sustainable growth,” he argued.

The former chief executive of First Bank also explained that the rapid rate of growth in population is a source of concern, adding that the country needs to have social policies around demographic growth.

“There are parts of this country where the fertility rate is more than eight (8) live births per woman, and again some societies are also polygamous,” he said.

“Now there’s no way that you are going to continue growing at 3.4 or 4 per cent when your economy is growing at a slower rate and expect to deal with poverty. And that is an unsustainable model.”

He also noted that setting up factories could help lead to economic growth.

He said, “One of the issues I have with people when they talk about removing the subsidy on electricity tariffs and how the tariffs are going to go on to avert some problems is that we worry so much about tariffs because we use electricity for consumption and the buck of the population is yet to understand that electricity is an import into production. You can’t burn it.

“So, if you take away the subsidy by having a cost recovery tariff, you could put that money into small and medium enterprises that will turn that electricity into real production of goods and services and lift people out of poverty.

“Now, it doesn’t have to be fossil fuels electricity, you can in the same way, for example, use these bonds to encourage setting up factories to produce solar panels. People talk about renewable energy but if you are going to be importing solar panels from China or the UK, it is not as effective as if you set up factories to produce these panels in Nigeria. You’ve got all the raw materials you need to produce solar panels.

“So, set up factories, produce these panels and then the subsidy come in, in form of making these panels affordable and the kind of financing you give to the micro-enterprises to turn this renewable energy into goods and services.

“Not just about producing renewable energy that will continue to be fuelling television sets, water kettles, video games, no; we want electricity so that micro, small and medium enterprises can begin to generate.”

Sanusi argued further that a very smart way of dealing with debt relief is to effectively ensure that government puts in the right policies and that money goes into the right areas that will lead to sustainable development.

He noted that what happened when debt relief was granted to Nigeria in the past was that Nigeria went back on spending on overheads, unnecessary petroleum subsidies, and subsidies on fertilisers, which has not helped the country.

“What happened in the past was that we had this debt relief and then we went back to borrowing money, spending on salaries, overheads, and unnecessarily petroleum subsidies all sorts of fertilisers sub discount and those are the kind things that need to end,” he lamented.

“But we also need to bear in mind that as we take them out, the way to minimise impact is to address the real SDGs considerations, education, healthcare, renewable energy accompanied by training, the productivity of agriculture and this is really about the policy deficit that we’ve had in the last few decades,” he said.

Nation

MOSIEND Calls For RSG, NDDC, Stakeholders’ Intervention In Obolo Nation

Published

1 day ago

December 1, 2025

The Tide

The Movement for the Survival of the Izon Ethnic Nationality in the Niger Delta (MOSIEND) has decried the neglect of communities in Obolo Nation and others in the Niger Delta Region

MOSIEND also called on the stakeholders to empower the youths in skill acquisition and other meaningful ventures to better their lives

This call was on Rhythm 93.7 FM Port Harcourt, Radio program, Talk of the Town, by MOSIEND Eastern Zonal Coordinator of MOSIEND Half Hour Comrade Tammy Bruce Longjohn, alongside Asarama Clan Chairman, Comrade Amos Zebedee Udu, and Unyeada Clan Chairman Comrade Owen Wilson Ngere monitored by our correspondent

The spokepersons underscores the urgent need for government agencies and development partners to respond decisively to the dire state of basic amenities in the area.

MOSIEND leaders in Obolo Nation lamented the absence of potable water, electricity, access roads, and other functional public infrastructures in the clans

“What is troubling is that these complaints continue to echo without corresponding action from the Rivers State Government, the Niger Delta Development Commission, and the oil companies operating in and around the area”.

According to the MOSIEND leaders, the situation has reached a point where community members, particularly youths and women, require deliberate intervention to rebuild livelihoods and restore hope.

They also emphasised the need for empowerment programmes, vocational training, and investments in local economies that depend heavily on fishing and trade.

The Clan leaders call for provision of small engine boats for fishermen and the construction of proper market spaces for the communities

Asarama Clan Chairman, Comrade Udu noted that the community participates fully in electoral processes yet continues to live without clean water or electricity.

He insisted that the clan is not benefiting as they ought to from any MoU with oil companies nor from NDDC projects, raises concerns about the fairness and inclusiveness of development planning in the state.

Equally troubling is the account from Unyeada Clan Chairman, Comrade Owen Wilson Ngere, who highlighted the alarming state of Unyeada Primary School, where children are forced to learn on bare floors without desks, chairs, or basic sanitation facilities.

” For a region that hosts oil and gas activities, such conditions are unacceptable and should concern all stakeholders”.

The Unyeada Clan Commended NDDC for the installation of solar lights in the communities, noting that the project is not enough for the entire community as they
appeal for more of the solar project in the area

While the leaders expressed appreciation to Governor Siminalayi Fubara for the ongoing construction of roads in the area, and to the local council Chairman for the provision of potable water in some communities, .

“Obolo Nation has shown remarkable restraint and continues to maintain peace, as noted by the MOSIEND Coordinator”.

“The issues highlighted are not demands for luxury,but are basic necessities that every community in the Niger Delta deserves.

“The time for promises has passed; what Obolo communities need now is visible, sustained, and inclusive development.

Chinedu Wosu

Nation

Film Festival: Don, Others Urge Govt To Partner RIFF

Published

2 days ago

November 30, 2025

The Tide

Prominent academics and industry players have called on government at all levels to partner with the Rivers State International Film Festival (RIFF) to unlock the hidden potentials of the film industry and market the State to the international community.

The appeal was made at the opening ceremony of the 3rd edition of the festival, held recently at Ezewali Event Centre in Port Harcourt.

The festival, which featured film screenings, workshops, and discussions, aimed to promote Nigerian culture and provide a platform for filmmakers to showcase their work.

A lecturer at the University of Port Harcourt, Prof Femi Shaka; Mr Tobechukwu Daniel: and the Chief Executive Officer of Down Town Cinema, Mrs Nneka Clareth commended the Chief Executive Officer of RIFF, Kate Ezeigbo for her efforts in promoting the culture of the Niger Delta and Nigeria through film.

According to Prof Shaka, “They are telling our stories the way nobody else will tell it. It gives them the opportunity to show the world what we have.”

He urged the Rivers State Government, under the leadership of Sir Siminalayi Fubara, and other Governors from the Niger Delta States to support RIFF, describing it as a marketplace where upcoming stars can showcase their talents.

Mr Tobechukwu Daniel, one of the founding fathers of RIFF, expressed satisfaction with the four-day programme, which was jam-packed with activities that had a direct impact on the participants and the industry.

He emphasised the need for government partnership, stating that funding from governments, multinationals, and captains of industries is crucial for the growth of the film industry.

“The international participation in RIFF programmes will boost our economy, as they will watch our cinema, buy our films, and give our youths opportunities to showcase their talent,” Daniel said, advising actors and actresses to focus on professionalism rather than godfatherism.

Mrs Nneka Clareth, who has been in the business for 12 years, noted that lack of funding is a setback to the nation.

“I want the government to support Nollywood in totality, because Nollywood covers visibility, sustainability, culture, tourism, storytelling, and a whole lot,” she said.

The festival, which featured free medical treatment, film production, scriptwriting, and discussions on various topics by professionals, drew participants from different parts of the world.

The organisers commended Kate Ezeigbo and her team for putting together a wonderful event, urging participants to make proper use of the opportunity.

Nation

Hausa Community Lauds Council Boss Over Free Medical Outreach

Published

2 days ago

November 30, 2025

The Tide

The Chairman of Hausa Butchers Association in Ahoada East Local Government Area of Rivers State, Alhaji Hamisu Jika, has commended the Chairman of the local government council, Hon Solomon Abuba Ochoma for organising a successful free medical outreach programme that benefited thousands of people in the area.

The outreach, which was organised by the local government council provided free medical services to thousands of people, including the elderly, women, and children, healing many with different ailments.

Alhaji Jika described Hon Abuba as a visionary leader, who has the welfare of his people at heart, noting that he is a de-tribalised Nigerian citizen who is determined to run an all-inclusive government.

He pledged the total support of the Hausa community to the administration of the council chairman in all its programmes and policies.

According to Alhaji Jika, the Hausa community in Ahoada East is law-abiding and will continue to maintain the existing peace in the area.

“Honestly, I want to tell you that we are peace-loving people and we are solidly behind the administration of the Executive Chairman of Ahoada East in all his programmes and policies in the local government,” he said.

The chairman revealed that the Hausas and their hosts, the Ahoada people, have been enjoying a cordial relationship since they started settling in the area, stressing that the council chairman has been a good leader who does not condone evil.

He expressed optimism that Hon Abuba will improve the comfort and wellbeing of the people and transform the council area, noting that the chairman has his people at heart.

He, therefore, called on both indigenes and non-indigenes of the local government to rally round the chairman, as he needs their support to take the local government to another level.

He appealed to the chairman to look into the welfare of Hausa people and help them with soft loans to boost their businesses, noting that some of the Hausas were born and brought up in Ahoada and have married there, and there is understanding and cordiality amongst them in the area.

Alhaji Jika also called on the youths to be law-abiding and stay away from trouble, stressing that where there is no peace, there will not be any meaningful development.

It was gathered that the Chairman of Ahoada East Local Government Council, Hon Solomon Abuba Ochoma has indeed started well and is working hard to fulfill his electioneering promises, making him a charismatic leader and the man of the people.