Editorial
Nigeria’s Growing Debt Burden
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
NCC, Save Nigerians From Exploitation
Editorial
WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
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