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Nigeria’s Debt Vulnerable, Costly, World Bank Alerts

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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?”

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Ministry Raises Concern Over Rising Teenage Pregnancies, Begins Adolescent Sensitisation Campaign

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The Department of Public Health in the Rivers State Ministry of Health has raised concern over the increasing cases of teenage pregnancies in society as it intensifies efforts to educate adolescents across the state.
Programme Manager for Adolescent Health and Development in the department, Mrs. Tammy Briggs, expressed the concern during a sensitisation programme held at Government Girls Secondary School Rumueme in Obio/Akpor Local Government Area of Rivers State.
Briggs explained that the campaign was designed to educate adolescents on the dangers of teenage pregnancy and other health-related issues affecting young people.
According to her, teenage pregnancy is currently on the rise, making it necessary for the ministry to step up awareness programmes among students.
“This is something that is on the rise for now. We have observed that there are many cases of teenage pregnancies, so we are here to sensitise them on ways to prevent it entirely,” she said.
She disclosed that the sensitisation campaign is being carried out in selected schools across four local government areas of the state, namely Obio/Akpor Local Government Area, Port Harcourt City Local Government Area, Ogba/Egbema/Ndoni Local Government Area and Eleme Local Government Area.
Briggs noted that the programme focuses on several key issues affecting adolescents, including sexual and reproductive health, gender-based violence, teenage pregnancy, substance abuse, emotional health and proper nutrition.
She added that the outreach programme also featured tuberculosis screening for students as well as the distribution of sanitary pads and mathematical sets to support their health and academic development.
The programme manager commended the management of Government Girls Secondary School Rumueme for their cooperation and support in hosting the sensitisation exercise. She also advised the students to avoid behaviours that could jeopardise their future.
Speaking during the session, Dr. Nwadike Chinonso urged the students to make informed decisions about their lives and remain focused on their education.
He cautioned them against engaging in early sexual activities, stressing that abstinence remains one of the most effective ways to prevent sexually transmitted infections and unintended pregnancies.
Some of the students who participated in the programme expressed appreciation to the team for the awareness campaign and pledged to apply the knowledge gained to make responsible life choices.

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Extortion, Contraband Scandal Erupts At Kwale Custodial Centre

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Disturbing allegations of extortion, intimidation and the smuggling of prohibited items have unsettled the Kwale Medium Security Custodial Centre (MSCC) in Delta State, prompting calls for urgent intervention by the national authorities of the Nigeria Correctional Service amid fears of potential security breaches within the facility.
The development was disclosed by a senior officer at the Delta State custodial facility, who expressed concern over what was described as entrenched irregularities capable of undermining discipline and operational standards at the centre.
According to the source, detailed findings compiled between December 2025 and January 2026 highlighted patterns of misconduct and warned of possible security consequences should the allegations remain unchecked.
At the centre of the claims is a powerful corrections official serving as Officer in Charge of the Kwale facility, accused of presiding over persistent financial extortion, high-handedness and the victimisation of inmates under his supervision.
The document further indicated that the alleged practices may have originated during the tenure of a former General Provost, reportedly with the collaboration of another senior custodial official within the system.
Intelligence details suggested that inmates were allegedly compelled to contribute funds for projects and items considered outside the statutory framework of inmate welfare, raising questions about compliance with established correctional guidelines.
Among the financial demands reportedly imposed were ¦ 300,000 for the repair of a Hilux vehicle, ¦ 600,000 for the purchase of a freezer and ¦ 750,000 for a generator allegedly designated for the Officer in Charge’s residence.
The report also alleged that inmates were required to make payments before being conveyed to court, while Awaiting Trial Persons in Cells One to Nine were directed to raise ¦ 30,000 per cell, with Convict Cells One to Three, including a designated VIP cell, similarly mandated to pay ¦ 30,000 monthly.
Observers noted that if substantiated, such practices would amount to grave breaches of professional ethics and custodial administration standards, eroding principles of fairness, transparency and inmate welfare within correctional institutions.
Beyond the financial allegations, the intelligence brief raised concerns over the purported possession of unauthorised communication devices, alleging that a serving General Provost had two Android phones while another influential inmate was also reportedly found with a mobile device.
The document further alleged that prohibited items, including alcoholic beverages, Indian hemp and other hard substances, may have been smuggled into the custodial yard under the guise of routine supervision duties, with security sources warning that the cumulative effect of extortion, intimidation and contraband trafficking has heightened tension within the facility.
In view of the gravity of the allegations, they called for an immediate and discreet investigation by the minister of Interior for immediate action to safe the life of inmates.
The administrative review of implicated officers, even as officials of the Nigeria Correctional Service had yet to issue an official statement, with stakeholders insisting that a transparent probe and decisive action are essential to restoring confidence and safeguarding institutional integrity at the Kwale Medium Security Custodial Centre.

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SERAP Sues FG Over Phone-Tapping Rules

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The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the government of President Bola Tinubu at the ECOWAS Community Court of Justice over the government’s alleged failure to withdraw “unlawful mass phone-tapping rules” known as the Lawful Interception of Communications Regulations, 2019.

LICR 2019 is a regulation that authorises telecom licensees to install technology for security agencies to monitor communications, including voice, data, text, email, and browsing, for national security and to combat crime.

SERAP, in a statement signed by its Deputy Director, Kolawole Oluwadare, yesterday, said the suit followed allegations by former Kaduna State Governor, Nasir El-Rufai, that the phone conversation of the National Security Adviser, Nuhu Ribadu, was intercepted.

El-Rufai reportedly claimed, “The NSA’s call was tapped. They do that to our calls too, and we heard him saying they should arrest me.”

In the suit numbered ECW/CCJ/APP/11/26, filed last Friday at the ECOWAS Community Court of Justice in Abuja, SERAP is seeking “a declaration that the failure of the government to withdraw the Interception of Communications Regulations is unlawful and a violation of Nigeria’s international human rights obligations.”

The organisation is also asking the court to declare that the government’s failure to withdraw the regulations “constitutes an official endorsement of unlawful mass phone-tapping rules, as the Regulations are patently unlawful, and violate the rule of law, democratic principles, and the right to privacy.”

It is further seeking “an order directing and compelling the Nigerian government to immediately withdraw the Interception of Communications Regulations, and to commence a legislative process to ensure that any interception regulations are in conformity with Nigeria’s international human rights obligations.”

The suit, filed on behalf of SERAP by its lawyers Kolawole Oluwadare, Oluwakemi Oni, Valentina Adegoke and Maryam Mumuni, argued that “the Regulations establish a sweeping mass phone-tapping regime that violates Nigerians’ constitutionally and internationally guaranteed human rights, including to privacy and freedom of expression.”

“Where powers affecting fundamental human rights are exercised in secrecy and concentrated in political authorities without independent supervision, the risks of arbitrariness are substantial.

“Surveillance measures that lack strict necessity, proportionality and independent judicial oversight can easily be weaponised against political opponents, journalists, civil society actors and election observers,” it added.

SERAP also warned that the regulations raise concerns as Nigeria approaches the 2027 general elections, noting that broad interception powers could be abused during politically sensitive periods.

“In an electoral climate, even the perception that private communications are being monitored can chill political organising, investigative reporting and voter mobilisation.

“Free and fair elections depend on confidential communications, protected journalistic sources and open democratic debate. Any misuse of intercepted data for intimidation, political advantage or disinformation would fundamentally undermine Nigerians’ right to political participation and electoral integrity.

“As 2027 approaches, interception powers must be narrowly defined, subject to prior independent judicial authorisation and backed by effective remedies. Without robust safeguards, these Regulations risk threatening privacy rights, freedom of expression and the credibility of Nigeria’s democratic process,” the suit stated.

SERAP maintained that any restriction on the right to privacy must comply with the principles of legality, necessity and proportionality, arguing that the regulations fail to meet these requirements.

SERAP also cited the Office of the United Nations High Commissioner for Human Rights as stating that mass surveillance programmes based on indiscriminate and blanket collection of personal data are arbitrary and cannot satisfy the requirements of legality, necessity and proportionality.

The group said the Nigerian government has a duty to adopt clear laws, safeguards, independent oversight mechanisms and accessible remedies to prevent abuse by state agencies and private actors, including telecommunications providers and technology companies.

According to SERAP, the Nigerian Communications Commission (NCC) adopted the Lawful Interception of Communications Regulations, 2019 while exercising its powers under Section 70 of the Nigerian Communications Act, 2003.

The organisation argued that Regulation 4 grants broad discretionary interception powers to the National Security Adviser and the State Security Services, with little clarity on the scope or limits of such authority.

SERAP also pointed to inconsistencies within the regulations, noting that while Regulation 4 and Regulation 12 restrict interception powers to the NSA and SSS, Regulation 23 expands the category of authorised agencies to include bodies such as the Nigeria Police Force, National Intelligence Agency, Economic and Financial Crimes Commission, National Drug Law Enforcement Agency, and any other agency the commission may designate.

The organisation said this ambiguity undermines legal certainty and creates the risk of arbitrary application and abuse.

It also criticised provisions allowing interception without a warrant in certain circumstances, arguing that such powers are overly broad and susceptible to misuse.

SERAP further expressed concern that the regulations do not require authorities to notify individuals who have been subjected to surveillance, which it said weakens the ability of citizens to challenge unlawful monitoring.

The organisation warned that requirements compelling telecommunications licensees to install interception equipment and disclose encryption keys could undermine cybersecurity and discourage privacy-enhancing technologies.

SERAP acknowledged the government’s responsibility to address national security and organised crime but argued that such measures must remain within constitutional and international human rights limits.

No date has been fixed for the hearing of the suit.

 

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