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Nigeria’s Economy In Bad Shape, UNDP Admits

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Amidst declining revenue and foreign exchange earnings coupled with rising debt service payments, a United Nations Development Programme (UNDP) report on Imagine Nigeria, has declared that the country’s economy is in very bad shape.
According to the report, to be launched, today, the COVID-19 pandemic has been detrimental to Nigeria’s economy, now made worse by a decline in revenue and foreign exchange earnings due largely to the fall in oil prices and reduced demand.
The report also noted that the decline in revenue meant an overdependence on borrowing and an increased debt service payments with more than half of the annual Federal Government revenues being used to service debts.
The report said “Beyond the short-term challenges for the oil sector, principal forex earner for Nigeria are the longer-term concerns as the world makes determined moves to reduce the consumption of fossil fuels.
“Unemployment, underemployment and their effects on poverty have remained a bane for Nigeria. If no urgent measures are deployed soon, Nigeria with its teeming population is certain to fall in desperate times. Already, the World Bank projects that about five million Nigerians will fall below the poverty line,” UNDP said.
The report regretted that the manufacturing sector which could have provided succour is also battling challenges such as poor power supply, multiple taxation and inadequate infrastructure.
“This does not mean progress has not been made in the sector as measures such as faster business registration time, improved imports and exports systems have been introduced. If more appropriate interventions are deployed, the manufacturing sector is sure to experience growth and be able to contribute more than the 12.82per cent it contributed to the economy in 2020” the report noted, adding that if agriculture sector can be more productive it can surpass the oil sector if the challenges of poor adoption of improved farming methods, inadequate infrastructure and insufficient credits are addressed.
“Like other factors, Nigeria is faced with a serious infrastructure deficit. This cuts across housing, water, power, telecommunications and transportation network”.
Reacting to the UNDP verdict, Founder/CEO, Centre for the Promotion of Private Enterprise (CPPE),Dr Muda Yusuf, noted that Nigeria’s economy is characterised by diverse economic vulnerabilities, which have had devastating effects on businesses.
He listed such headwinds with terrible effects on the economy; to include unprecedented surge in energy prices with huge adverse effects on economic players across all sectors; as well as high levels of currency depreciation and currency volatility; as well as increasingly weak fiscal space; acute foreign exchange scarcity with very profound effects on investors across all sectors.
Yusuf said that above all, Nigeria’s rising public debt and debt service burden; worsening security situation as well as elevated political risk as a result of political transition processes and activities are not helping the nation’s recovery strategies. These adverse developments are further compounded by growing fuel subsidy burden; weak infrastructure; falling investors’ confidence and depressed purchasing power.
Also speaking, Chairman, Apapa branch of Manufacturers Association of Nigeria, Mr. Frank Onyebu, said, “To say that Nigeria’s economy is wobbling is to put it mildly. Sometimes, it feels like an understatement.
The economy can be said to be in a state of comatose.
“Factors responsible for this are numerous and include a hostile investment environment, complete dilapidation of infrastructure, insecurity and corruption to mention but a few.
“The economy can best be retooled by the creation of an enabling environment for businesses to thrive. The government should start by investing massively in infrastructure. The government may choose to concession some of the infrastructure since it doesn’t have currently enough resources.
“The worsening insecurity in Nigeria is a major problem for investors in the economy. Many Industrialists especially those who are in the agro-allied sector are grappling with challenges getting raw materials from the crop producing areas of our country. This has continued to negatively impact capacity utilization, turnover, cost of production and the value delivery to shareholders. Some now source raw materials from neighbouring West African countries.
“Insecurity has also created a very serious country risk and reputational problem for our country”.
The figures released by the Finance Minister, Mrs.Zainab Ahmed, during the presentation of the 2023-2025 Medium Term Expenditure Framework, painted a gloomy and disturbing picture of the state of government finances, suggesting that the government is on the brink of bankruptcy.
Debt service to revenue ratio for the first four months of the current year is over 100percent.
“The implication of this is that the actual revenue of government over the period is not sufficient to service debt.
“Therefore, financing of the operations of government – personnel cost, overhead cost, capital expenditure and even part of the servicing of the debt will have to come from additional borrowing. These portend severe vulnerabilities for the Nigerian economy.

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Bille Gas Leak: Coalition Tasks FG On Proactive Measures

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A Coalition of civil society organisations has urged the Federal Government to take proactive steps towards addressing the persistent gas eruptions in Bille, Rivers.

The coalition, made up of the People’s Assembly and Bille Working Group, made the call in an open letter addressed to President Bola Tinubu, and read to journalists in Port Harcourt, yesterday.

Reading the letter, the coalition’s convener, Dr Isaac Osuoka, said that the persistent gas eruption in Bille had led to serious environmental and public health challenges.

Osuoka, also the Executive Director, Social Action, urged Tinubu to establish a presidential task force to investigate and contain the gas leak in Bille.

He also called for the immediate relocation of residents to safe shelters, provision of clean water, food and healthcare services.

Dr Emem Okon, the Executive Director, Kebetkache Women Development and Resource Centre, stated that gas had been bubbling from the ground, creeks, boreholes and hand-dug wells in the community since October 2025.

Okon said that the gas had triggered several fires and explosions, and that residents of the community had reported respiratory problems, vomiting and other illnesses associated with exposure to the emissions.

According to her, preliminary investigations by the National Oil Spill Detection and Response Agency (NOSDRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have yet to identify the source of the gas.

Mr Kentebe Ebiaridor, the Coordinator, Oilwatch International, called for the publication of results from preliminary soil and water tests conducted in Bille for the residents to know the nature and extent of the contamination.

Ebiaridor urged the Federal Government to deploy medical teams to screen and treat affected residents, and immediately commence an independent study on the health impacts of the leak.

He further called for the suspension of oil and gas operations around OML 18 and 24 until the source of the gas leak was identified and the affected areas declared safe.

Ebiaridor urged the government to hold current and former operators of the oil leases accountable for environmental damage on the community.

Another speaker, Dr Bieye Briggs, urged the National Assembly to fast-track the NOSDRA Amendment Bill, 2025 to provide the agency with statutory funding and stronger enforcement powers.

Briggs urged the Federal Government to activate the regional Spill Command Centre, and make the Upstream Remediation Fund accessible for the Bille crisis and other affected communities in the Niger Delta.

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Police Ban Drones, Fireworks As Tinubu Visits Akwa Ibom, Today

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The Akwa Ibom State Police Command has banned drone operations and fireworks in Uyo and announced temporary traffic restrictions ahead of President Bola Tinubu’s visit to the State today.

The state Commissioner of Police, Baba Mohammed Azare, announced the measures yesterday while briefing journalists at the Police Headquarters in Ikot Akpan Abia, Uyo.

He said the restrictions were part of security arrangements to maintain public order, protect strategic locations and ensure the smooth movement of the President’s convoy during his engagements.

“There will be total restriction on the operation and flying of drones within Uyo metropolis throughout the period of the visit. Members of the public, drone operators and service providers are advised to strictly comply with the directive,” he said.

The police commissioner also announced a ban on fireworks, knockouts and other explosive sound-producing devices within the state capital during the visit.

He said the measure would prevent panic and allow security personnel to respond effectively to genuine security threats.

The command also announced temporary restrictions on public access to designated routes and locations in Uyo to facilitate the movement of the presidential convoy.

The affected areas are Airport Road, Shelter Afrique Junction, Oron Road, Nung Oku Junction, Mbierebe Junction and Godswill Akpabio International Stadium.

“Motorists are urged to plan their journeys, exercise patience and cooperate with traffic and security personnel deployed along the corridors.

“Members of the public are advised to avoid the routes during the restriction and use alternative routes,” Azare said.

He also urged residents to plan their journeys, exercise patience and cooperate with traffic and security personnel deployed along the affected corridors.

The commissioner said the command, working with other security agencies, had put in place security arrangements to ensure a peaceful and hitch-free visit.

He appealed to residents to understand that the temporary restrictions were necessary security measures and not intended to cause hardship.

Azare urged members of the public to remain law-abiding, avoid restricted areas and report suspicious movements to the nearest police station or through police emergency channels.

Tinubu’s visit to Akwa Ibom is a working visit during which he is expected to inaugurate major infrastructure projects executed by Governor Umo Eno’s administration under its ARISE Agenda. The projects cut across aviation, road infrastructure, tourism, healthcare, land administration and security.

Among the projects scheduled for inauguration are the international terminal building and airport hospital at Victor Attah International Airport, Aviation Village, ARISE Palm Resort, the 14.5-kilometre Nsit Atai–Okobo Road, Ring Road 3, the Command and Control Centre and the AkwaGIS building.

The state government had earlier announced plans for the President to inaugurate projects as part of activities marking Akwa Ibom’s 39th anniversary in September.

The airport projects are particularly significant to the state’s ambition to expand aviation, tourism and investment.

The international terminal is expected to strengthen the airport’s capacity to handle international operations, while the Aviation Village is intended to provide accommodation for aviation workers. The airport hospital is also among the facilities lined up for inauguration.

The road projects are also expected to improve connectivity. The 14.5-kilometre Nsit Atai–Okobo Road links communities in the two local government areas, while Ring Road 3 is designed to improve movement within Uyo and ease pressure on existing roads. The Command and Control Centre, meanwhile, is intended to strengthen security surveillance and coordination in the State.

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RSG Floats MNET Culture Content Promo

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The Rivers State Ministry of Culture and Tourism  has floated a culture content platform in collaboration with digital television group, Multichoice.

Permanent Secretary, Ministry of Culture and Tourism, Mr. Freddy Ndigbara, disclosed this after a meeting with MultiChoice Head of Content Acquisition, Don Dotun Ojon, in Port Harcourt.

He assured that content entrepreneurs and film makers would enjoy the platform by promoting culture and other contents to sell the states tourism potentials.

He said MultiChoice M-net was now open to increase its patronage for content shots on locations in Rivers State, describing the State as one that has numerous potentials for film tourism.

“We were privileged to have Don Ojon with us at the Rivers International Film Festival (RIFF) at the weekend in Bonny and he saw, first hand, the numerous sites and opportunities that are open to creatives in the State. After that, we felt it was important to deepen the conversation and he obliged. This is a cheering news for the sector in the State,” he said.

Ndigbara stated that “Rivers State has many more untold stories to tell, many more contents to reel out and the assurances from the M-net Acquisition Manager is an indication that the industry in the state will soon enjoy a new lease of life”.

The Permanent Secretary thanked Ojon for the visit and assured that creatives in the State would grap this opportunity and show the world that Rivers State is a major hub for film tourism in Nigeria.

On his part, Ojon said the visit was to discuss on ways of promoting tourism in the State using creatives and film.

Ojon said although the company has recently been acquired by canal+ France and is undergoing restructuring, he would promote the chances of Rivers State to host the MultiChoice talent factory in the State.

With Asaba, capital of Delta State, being saturated, Ojon said the next port is Rivers  State, which he said is capable of building fresh crop of creatives, new locations, new story lines and concepts.

He, therefore, called for collaboration from stakeholders in the State.

Kevin Nengia

 

 

 

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