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Nigeria’s Debt Vulnerable, Costly, World Bank Alerts
The World Bank has disclosed that Nigeria’s debt, which may be considered sustainable for now, is vulnerable and costly.
According to the Washington-based global financial institution, the country’s debt is also at risk of becoming unsustainable in the event of macro-fiscal shocks.
The bank said this in the November edition of its Nigeria Development Update.
It said, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria (CBN).
“While currently the debt stock of 27per cent of the Gross Domestic Product (GDP) is considered sustainable, any macro-fiscal shock can push debt to unsustainable levels.
“However, the debt to the GDP in Nigeria is rising quickly, and the total stock of debt in absolute value has almost doubled between 2016 and 2020, and without a policy change is expected to reach 40per cent of the GDP by 2025.”
The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupts public investments and critical service delivery spending.
“The cost of debt servicing is also a concern as it is potentially crowding out public investment and critical service delivery spending. Interest costs have been above two per cent of the GDP since 2018, reaching 2.4per cent of the GDP in 2019 and then falling to 2.2per cent of the GDP in 2020.
“Cost of debt is high as Federal Government also resorts to overdraft (Ways and Means financing) from the CBN to meet in-year cash shortfalls. At end of 2020, the stock of the CBN Ways and Means financing was estimated at N13.1trillion or 8.5per cent of the GDP,” it stated.
It, however, said that the Federal Government was making efforts to negotiate terms with the CBN in order to convert the stock of overdraft financing into a long-term debt instrument, which would lower the cost of debt for the government and enhance fiscal sustainability over the medium long term.
Economists have raised concerns over the rising debt profile of the Federal Government.
It would be recalled that the Federal Government has been planning to push its public debt stock to N50.22trillion by 2023, with domestic debt at N28.75trilion and external debt at N21.47trillion.
This was according to the projections in the National Development Plan 2021-2025.
The Debt Management Office had disclosed that Nigeria’s public debt was N38trillion as of the end of the third quarter of 2021, with the total debt stock rising by N2.540trillion in three months between July and September, 2021.
The NDP shows that the President Muhammadu Buhari-led Federal Government plans to accumulate about N12trillion debt in two years from 2021 to 2023.
However, based on the plan, the government targets a reduction in total public debt by 2025.
A tabular illustration in the document shows the government targets N39.59trillion debt stock for 2021, N46.63trillion for 2022, N50.22trillion for 2023, N50.53trillion for 2024, and N45.96trillion by 2025.
Analysts have agreed with the World Bank on the costly and vulnerable nature of Nigeria’s public debt.
The Fiscal Policy Partner and Africa Tax Leader of PwC, Mr Taiwo Oyedele, expressed his agreement with the World Bank’s assertion, highlighting the high cost of debt servicing.
He said, “I agree with the World Bank. Although the debt to GDP ratio is not too high, if you think about the debt service cost to revenue ratio, it is already over 70per cent. That’s when you know it’s costly.
“Nigeria borrows at double-digit, and even when we borrow in dollars, the rates are very high and then you devalue the naira and the cost of servicing the debt in naira goes up because it is dollar-dominated debt.
“Put all of that together, and you can easily say to yourself that even though our debt to GDP ratio is very low, our cost of borrowing is unsustainable because it is very high, and therefore, make it very costly.”
He advised the government to have an integrated debt-revenue-expenditure strategy, which would address expenditure efficiency, terms of borrowing, and revenue optimisation.
He also advised the government to reconsider its priorities regarding its national budget.
A former deputy governor of the Central Bank of Nigeria and former presidential candidate, Kingsley Moghalu, also criticised the increasing borrowing tendency of the government, urging the officials to re-consider other ways of generating revenue for the country.
“There are many ways through which we can improve Nigeria’s domestic revenue situation without selling the future of our country. As to the argument that Nigeria does not have a debt problem but a revenue problem, that is mere sophistry. If you’re spending 90kobo of every one naira you earn repaying debt, you are insolvent.
“You cannot say that we have a debt-to-GDP ratio that allows you to continue borrowing. No! That is an argument for sustainable economies. You cannot be comparing Nigeria with advanced economies. We are in an economy that is still very basic.
“If you are not earning enough revenue, why are you borrowing? You are just compounding your problem. Why don’t you focus on where to get the revenue from instead of lazily ignoring that problem and just trying to survive with borrowing?
“If an individual was living a life that way, it would be a calamity. That is why Nigeria is in a calamitous situation today economically,” he said.
According to Moghalu, it is also not reasonable to borrow for infrastructural development as the government can expand the public-private partnership options for such development.
He said, “You cannot be borrowing for infrastructure. They should go and expand the PPP options for infrastructure.
“You don’t have to impoverish this country by borrowing. This is not sensible economic management.
“How sustainable economically are those infrastructures they claim to be building? Are they yielding enough money to pay back the debt?”
News
NDLEA Intercepts Drugs Hidden In Winter Jackets, Cream At Lagos Airport
Operatives of the National Drug Law Enforcement Agency (NDLEA) have foiled attempts by drug trafficking syndicates to smuggle illicit substances concealed in carton walls, winter jackets, and body cream containers through Murtala Muhammed International Airport and a Lagos-based courier firm.
The agency said two consignments bound for Italy were intercepted at the Lagos airport, leading to the arrest of suspects linked to the shipments.
In a statement released yesterday, the agency’s spokesman, Femi Babafemi, said one of the suspects, 37-year-old Friday Ehianuka, was intercepted on Friday, March 20, 2026, while attempting to board an Ethiopian Airlines flight to Rome, Italy.
The statement partly read, “Two of the consignments heading to Italy were to be moved through the Lagos airport where two suspects linked to the shipments were promptly arrested.
“One of them, 37-year-old Friday Ehianuka, was going to Rome, Italy on Friday, March 20, 2026, when he was intercepted while attempting to board an Ethiopian Airlines flight with 2,698 pills of tramadol 225mg concealed in containers of skin-lightening body cream, all packed in the suspect’s luggage.
“In his statement, Ehianuka, who is a resident of Milan, confirmed that he was to be paid a negotiated fee in Euros if he had succeeded in trafficking the consignment to Italy.”
In another operation on Wednesday, March 18, Babafemi said NDLEA officers at the departure hall intercepted another passenger, Christian Agbonhese, attempting to board a Lufthansa flight to Milan.
A search of his luggage uncovered 23,150 pills of tramadol 225mg, 4,000 tablets of tapentadol 250mg, and 1,320 pills of tramadol 100mg concealed in two large winter jackets.
“No fewer than 23,150 pills of tramadol 225mg; 4,000 tablets of tapentadol 250mg; and 1,320 pills of tramadol 100mg, all concealed in two large winter jackets, bringing the total number of opioids recovered from him to 28,470 pills. The 38-year-old Agbonhese is also a resident of Milan,” the statement added.
In a separate operation at a courier firm in Lagos, Babafemi said NDLEA officers on Monday, March 16, intercepted two parcels of Loud, a strong strain of cannabis weighing 1kg, hidden in a carton shipped from the United States.
“Also thwarted was an attempt to export 158 grams of methamphetamine concealed in the walls of a carton to New Zealand,” he said.
In Kano State, operatives arrested Abdulkadir Mamuda, 35, with 102.5kg of skunk at Dan-Tsalle, while another suspect, Uche Johnson Festus, 47, was nabbed at Naibawa Gabas with 95.5kg of the same substance.
Babafemi said the agency also recovered 21,737 bottles of codeine-based syrup during a raid at Otto, Ijora area of Lagos on Wednesday, March 18, adding that two suspects, Chidiebere Anigbogu and Paul Nwagbara, were arrested the same day on the Third Mainland Bridge while conveying 8,380 bottles of the syrup.
In Edo State, operatives recovered 97.5kg of skunk from the residence of Akeem Idde, 37, in Ojah, Akoko-Edo Local Government Area on March 16.
In the FCT, officers intercepted a commercial bus along the Gwagwalada Expressway on March 18, recovering 91,840 pills of tramadol hidden in body compartments of the vehicle. The driver, Aminu Ali, 27, was arrested.
In Oyo State, a suspect, Bankole Bari, was on Tuesday, March 17, arrested at Oke-Oyan, Ibarapa LGA, with 71.2kg of skunk, which he smuggled into Nigeria from Benin Republic through the Oyan River.
In a similar development, “Not less than 586,000 pills of tramadol and Exol-5 were recovered by NDLEA operatives from Lawal Anas, 28, along Kaduna-Zaria Highway, Kaduna, on Tuesday, March 17, while 7,290 tablets of tramadol 225mg were seized from Musa Shuaibu, 22, at the same location on Friday, March 20,” Babafemi said.
In Taraba State, officers intercepted Aliyu Adamu, 26, along the Takum-Jalingo Highway with 77,660 capsules of tramadol, while in Adamawa State, six suspects were arrested in connection with the seizure of 82.8kg of tramadol in a truck in Yola.
The suspects include Ramatu Aliyu, Jungudo Abdullahi, Najid Abdullahi, Musa Mohammed, Usman Abdulrahim, and Musa Mohammed.
The agency said its commands across the country also intensified War Against Drug Abuse sensitisation campaigns in schools, worship centres, and communities during the week.
Chairman and Chief Executive Officer of NDLEA, Brig. Gen. Buba Marwa (retd.), commended officers of the MMIA, DOGI, Lagos, Kano, Kaduna, Edo, Oyo, FCT, Taraba, and Adamawa commands for the arrests and seizures, urging them to sustain the balanced approach to drug control efforts.
News
RSG Applauds FRSC, NDLEA For Enhancing Security In Rivers …As NDLEA Pushes For Drug Tests In Schools, NYSC Camps
The Rivers State Government has commended the dedication and collaboration of federal government agencies in sustaining security in the State.
Speaking during a courtesy visit by the State Commander of the Nigerian Drug Law Enforcement Agency (NDLEA), CN Bature Dawa, in Port Harcourt, last week, the Secretary to the State Government, Dr. Dagogo Wokoma, said Governor Siminalayi Fubara appreciates the strong synergy between the agencies in promoting his administration’s vision of peace, prosperity and progress in the State.
Wokoma urged residents to remain law-abiding, noting that respect for the law is essential for good governance and sustainable development in all parts of the state.
He stated that the governor has remained committed to initiatives that promote peace and social order, stressing that the administration will continue to support programmes of federal agencies aimed at strengthening security and public safety.
“Our governor is committed to peace, progress and prosperity in Rivers State. I therefore encourage all residents, especially young people who are often targeted by those involved in drug abuse, to stay away from drugs, crime and reckless driving,” he said.
In his remarks, the State NDLEA boss, Dawa, disclosed that the agency has arrested 39 suspects in the state from December 2025 to date, including 16 new cases currently under investigation.
He explained that the NDLEA, through its Drug Demand Reduction and Drug Supply Control Units, has intensified efforts to curb the spread of illicit drugs and ensure offenders are brought to justice.
Dawa also called on parents and guardians to closely monitor their children, while urging hotel owners and managers to remain vigilant and prevent their facilities from being used for drug-related activities.
He further advocated the introduction of drug integrity tests in schools and within the National Youth Service Corps (NYSC) scheme as part of measures to discourage drug abuse among young people.
In a related development, Dr Wokoma received the Sector Commander of the Federal Road Safety Corps (FRSC), CC Inyang Umoh, during a courtesy visit, and urged residents to abide by road safety laws and drive in consideration of other road users.
In his remarks, the FRSC boss expressed appreciation to Governor Fubara for the continuous support to the Corps.
News
Rivers Muslims Laud Fubara’s Dev Strides
Muslims in Rivers State have commended Governor Siminialayi Fubara for his dedication and commitment to the development of the state.
They also lauded the governor for promoting peaceful co-existence among various religious groups in the state.
Vice President General of the Nigerian Supreme Council for Islamic Affairs ,Alhaji Nasil Awhelegbe Uhor, gave the commendation last Friday during the Eid-el Fitri prayer to mark the end of Ramadan fasting period, at the Port Harcourt Central Mosque, Niger Street, Port Harcourt.
Speaking to newsmen shortly after the prayer, Alhaji Uhor said Governor Fubara has shown exemplary leadership in the affairs of the state.
Uhor who is the leader of the South South Muslim Ummah of Nigeria, called on Muslims to remain committed to the ideal of peace and fear of the Almighty Allah.
According to the Rivers State Islamic leader, the message is for Muslims to imbibe and allow the lessons of Ramadan to sink into their lives and shape their ways of doing things.
He urged Muslims to imbibe the culture of love and respect for one another.
“My message is that all Muslims should imbibe and allow the lessons of Ramadan to sink with them,” he advised.
Uhor stressed the need for Muslims and all Nigerians to remain patriotic, while avoiding all forms of anti-social behaviours.
He also called on the political leaders to put the country first, stressing that there is no need for Nigerians to continue to wallow in abject poverty when the country is so rich with natural resources.
Also speaking, the Chief Imam of Rivers State, Alhaji Ibrahim S Yalo, urged Muslims to fear God, and speak the truth always.
According to him, time has come for Nigerians to cultivate the habit of peaceful coexistence, speak the truth and be each others keeper.
“Nigerians own a duty to ensure peace, live together in fear of God and speak the truth always,” he said.
By: John Bibor
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