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Rising debt: Financial expert, Idakolo x-rays Nigeria’s situation

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Nigerians have expressed divergent views over the incessant loans taken by the federal government, which has bloated the country’s external debts.

It was reports that the Senate recently approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle, paving the way for the full implementation of the 2025 Appropriation Act.

The comprehensive borrowing package includes $21.19bn, in direct foreign loans, €4bn, ¥15bn, a $65m grant and domestic borrowing through government bonds, totaling approximately N757bn.

Nigeria’s total public debt climbed to N144.67 trillion ($94.23 billion) as of December 31, 2024, reflecting a significant increase of 48.58% compared to N97.34 trillion ($108.23 billion) recorded at the end of December 2023.

This latest figure was disclosed by the Debt Management Office (DMO) in its report on the country’s public debt profile.

The report also indicated a quarter-on-quarter rise of 1.65% from the N142.32 trillion ($88.89 billion) recorded at the end of September 2024, highlighting the continued increase in the nation’s debt burden within the final quarter of the year.

Reacting, the Presidential Candidate of the Labour Party in the 2023 general election, Peter Obi, lamented what he described as the reckless borrowing by this regime without accountability.

“As our GDP before rebasing was about N269.2 trillion (about $180 billion), the government has borrowed the equivalent of nearly 70% of our previous GDP. 7.Even after the rebasing, which pushed our GDP to about N372.8 trillion (about $243.7 billion), the government would have borrowed about 50.16% of the new GDP (with the approved 8.loans), the highest debt-to-GDP ratio in our history as a nation,” he said.

See also  IMPI projects Nigeria’s GDP to hit 5.5%

Similarly, the African Democratic Congress, ADC, condemned the Tinubu administration over what it called fiscal vandalism, saying the president is borrowing far more than his predecessor, Late Muhammadu Buhari, and placing Nigeria on the edge of a financial disaster.

The newly formed opposition coalition said President Tinubu’s government has borrowed more in two years than Buhari did in eight, warning that the country’s total debt could hit ₦200 trillion before the end of 2025.

“The African Democratic Congress (ADC) is deeply concerned by the Tinubu administration’s dangerous obsession with borrowing. What Nigerians are witnessing, following the approval of a fresh $21 billion in foreign loans, is nothing short of a calculated decision to mortgage the country’s future just to cover up the failures of today,” it said.

However, a financial expert and the Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, said it was not a bad idea for the government to take additional loan if it would be of immense benefit to the infrastructure development and to deepen the country’s economic aspiration.

He, however, decried that sometimes the loans that were taken by previous administrations were not directly applied to what could bring return for the repayment of those loans, adding that when a project is executed at very exorbitant cost, it does not have the means to be able to repay itself based on the way it was applied.

Idakolo expressed the belief that the National Assembly must have done a thorough review of the usage of the additional loan and the viability of the projects to repay the loan.

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The financial expert urged the current administration not to tow the path of its predecessors that put infrastructure development at the expense of the government looking for revenue to repay loans.

“I am not against the government taking additional loans if it is going to be of immense benefit to infrastructure development and to be able to deepen our economic aspirations.

“For us to be viable economically, we need to improve on infrastructure development. And we have seen the way loans have gone in the past.

“We are seeing that sometimes the loans that were taken by previous administrations were not directly applied to what can bring return for the repayment of the loan.

“So even when those projects are executed at very exorbitant cost, it does not have the means to be able to repay itself based on the way it was applied.

“So presently, this government that has been taking loans, especially this recent one, I believe that the National Assembly should have done a thorough review of the usage of the loan and the viability of the projects that the facility is going to be for, and the capacity of that facility to be able to repay the loan.

“What can actually help Nigeria is for us to do targeted projects that can improve our infrastructure development to complement our economic aspirations.

“And when that is done, this project should be able to have the capacity to repay the loan.

“So if this administration goes the way of the previous ones that put infrastructure development at the expense of the government also looking for revenue to repay those loans because those projects cannot repay itself, then we will be back to square one,” he said.

See also  FG tells marketers to reflect global oil price drop in petrol prices

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Four Nigerians among Forbes Africa’s 15 icons for 2026, see full list

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Four Nigerians, Aliko Dangote, Ngozi Okonjo-Iweala, Mo Abudu and Burna Boy, have been named among 15 personalities featured on Forbes Africa’s inaugural Icons list for 2026.

PUNCH Online on Saturday reported that the list, published in the magazine’s October-November anniversary edition, recognises individuals whose ideas, innovations and voices have influenced Africa’s past, present and future.

The selection marks the 15th anniversary of Forbes Africa, which said it chose personalities whose work had made a lasting impact beyond their industries and national borders.

The four Nigerians represent business, international economic leadership, media and music.

Dangote, president of Dangote Group, is recognised for his role in African industry and private enterprise.

Dangote

Okonjo-Iweala, director-general of the World Trade Organization and a former Nigerian finance minister, represents Africa’s presence in international economic leadership.

Iweala

Abudu, founder and chief executive of EbonyLife Group, is recognised for her contribution to African media and entertainment, while Burna Boy, whose real name is Damini Ebunoluwa Ogulu, represents the international reach of Nigerian music.

Mo Abudu

The other personalities on the list are South African businessman Adrian Gore, CAF president and businessman Patrice Motsepe, Zimbabwean entrepreneur Strive Masiyiwa and former Liberian President Ellen Johnson Sirleaf.

Also featured are Nobel Prize-winning novelist Abdulrazak Gurnah, Ethiopian athletics legend Haile Gebrselassie, former Ivorian footballer Didier Drogba, South African businessman Johann Rupert, Kenyan-Mexican actor Lupita Nyong’o, South African comedian Trevor Noah and Beninese musician Angélique Kidjo.

The 15 personalities represent sectors including business, public service, literature, sport, music and entertainment.

According to Forbes Africa’s methodology, the selection was based on factors including global recognition, legacy, measurable economic, social or cultural influence, and contributions to Africa’s growth narrative over the years.

See also  Tax revenue hits N27tn after 113% surge – Report

The magazine said its editorial team consulted established figures, experts and professionals in the respective industries to gather insights on the honourees’ impact and legacy.

The list is presented in no particular order, the release noted.

Full list of Forbes Africa Icons 2026

– Mo Abudu — Nigerian-British media entrepreneur and founder-chief executive of EbonyLife Group.

– Ngozi Okonjo-Iweala — Nigerian economist and director-general of the World Trade Organization.

– Adrian Gore — South African businessman and founder-chief executive of Discovery Group.

Gore

– Patrice Motsepe — South African businessman and president of the Confederation of African Football.

Motsepe

– Strive Masiyiwa — Zimbabwean entrepreneur and founder and executive chairman of Econet Global and Cassava Technologies.

Masiwiya

– Ellen Johnson Sirleaf — Former president of Liberia.

Sirleaf

– Aliko Dangote — Nigerian industrialist and president of Dangote Group.

– Burna Boy — Nigerian singer and songwriter.

Burna Boy

– Abdulrazak Gurnah — Zanzibar-born novelist and Nobel laureate in Literature.

Gurnah

– Haile Gebrselassie — Ethiopian athletics legend and businessman.

Gebrselassie

– Didier Drogba — Former Ivorian footballer.

Drogba

– Johann Rupert — South African businessman and chairman of Compagnie Financière Richemont.

Rupert

– Lupita Nyong’o — Kenyan-Mexican actor.

Nyong’o

– Trevor Noah — South African comedian, writer, producer and former host of The Daily Show.

Noah

– Angélique Kidjo — Beninese musician and actor.

Kidjo

Forbes Africa said the list celebrates individuals whose contributions have helped shape the continent’s development and standing on the global stage.

Source: punchng.com

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Lagos e-hailing drivers begin indefinite strike over fares

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E-hailing drivers in Lagos State have begun an indefinite strike over concerns about fare structures, commissions, deductions and welfare.

The drivers, under the Amalgamated Union of App-Based Transporters of Nigeria, announced the industrial action in a notice seen by PUNCH Metro on Saturday, saying it would commence on Monday and continue until further notice or satisfactory progress was made in addressing their grievances.

AUATON, an affiliate of the Nigeria Labour Congress, said the strike followed persistent concerns over operational policies, drivers’ welfare, safety, security and the sustainability of their operations.

“Despite repeated efforts by drivers and stakeholders to draw attention to these concerns, many of the issues remain unresolved,” the union said.

It added that the decision to embark on the strike was informed by the need to address challenges affecting drivers’ earnings and working conditions.

To cushion the impact of the industrial action, AUATON appealed to fleet owners and managers to grant temporary relief from daily remittance obligations and related operational targets for the duration of the strike.

“During the industrial action, drivers will not be generating their normal revenue from which daily remittance obligations ordinarily arise.

“We, therefore, appeal to fleet partners to refrain from imposing penalties, sanctions or adverse measures solely on the basis of a driver’s participation in the action, as drivers are not expected to operate during this period,” the notice read.

The union said its task force would be deployed across all local government areas in Lagos State to monitor compliance with the strike.

It warned that drivers found operating in violation of its directives could face sanctions under its internal disciplinary measures.

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AUATON, however, urged fleet owners, managers and affected drivers to maintain open communication and resolve operational concerns through constructive engagement during the strike.

Highlighting the potential benefits of addressing its demands, the union said improved earnings, welfare and operating conditions could help boost driver retention, reduce turnover and improve commitment among drivers.

“Meaningful improvements in driver earnings, welfare and operating conditions may contribute to improved driver retention and reduced turnover, better driver commitment and engagement, more sustainable vehicle utilisation and reduced operational disputes between drivers and fleet partners,” it said.

The union added that better earnings could also improve vehicle maintenance and promote stability in the app-based transportation sector.

It stressed that its objective was not to disrupt businesses unnecessarily but to advocate better operating conditions for drivers and other stakeholders.

The notice was signed by the Lagos State Chairman of AUATON, Jaiyesimi Olalabi Azeez, popularly known as Makavelli, who appealed to fleet partners for understanding and cooperation.

The union reiterated its commitment to peaceful engagement and constructive dialogue with fleet owners, managers and other stakeholders to find lasting solutions to the issues prompting the industrial action.

Source: punchng.com

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Tinubu reveals that World Bank report affirms reform gains

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President Bola Tinubu on Sunday welcomed the World Bank’s latest Nigeria Development Update, saying its findings, including that the poverty rate has stabilised for the first time since 2019, confirm that his economic reforms are working.

In a statement on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the October 2026 edition of the report, titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,’ showed that the reforms were delivering results and putting the economy on a firmer footing for sustained growth.

He noted the bank’s expectation that poverty will decline gradually as gross domestic product grows faster than the population.

According to the report, the economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025, despite the impact of the conflict in the Middle East.

The bank projected growth to average at least 4.4 per cent between 2026 and 2028.

On prices, it said inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025.

Higher global fuel prices linked to the Middle East conflict have since slowed the decline, but the bank said it expects inflation to ease to about 12 per cent by 2028.

The report also said the current account surplus rose to $12bn, or 7.0 per cent of GDP, in the first half of 2026, from $8.6bn a year earlier.

Gross external reserves increased from $45.5bn at the end of 2025 to $53.8bn at the end of August 2026.

See also  PENGASSAN stops gas, crude supply to Dangote refinery

The bank credited the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states the largest beneficiaries.

It said states used the extra resources to increase capital spending by 151 per cent in real terms over the same period, most of it going to roads and other transport, agriculture, energy and housing.

Twenty-nine of 33 states shifted spending towards economic infrastructure, while real social spending per person rose in all but one state, the report said.

It also found that internally generated revenue grew in real terms in 31 of 35 states; 21 states reduced their debt-to-GDP ratio between 2021 and 2025; and Nigeria’s overall public debt is expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.

Tinubu said the findings confirmed that “the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people.”

“The dividends of reform are becoming visible,” he said, adding, “But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people.”

He said his administration would “stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.”

Tinubu promised to keep expanding targeted cash transfers, which he said had already reached more than 10 million households.

See also  Tax revenue hits N27tn after 113% surge – Report

He also pledged to accelerate the rollout of Compressed Natural Gas, raise agricultural productivity, and improve access to affordable healthcare and quality education “so that the prosperity being created is shared by all.

President Tinubu urged state governments to use their higher revenues “more prudently” and to prioritise projects that improve living standards and the health and education of residents.

He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.

He said, “I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians.

Source: punchng.com

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