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Trump’s Christmas missiles strike fear in northern Nigeria

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Residents of Sokoto and Kwara on Friday recounted moments of fear and confusion after missile strikes fired by the United States of America hit areas in the two states, triggering panic in the communities.

Saturday PUNCH, however, confirmed from military sources and residents that the strikes recorded no casualties.

Massive explosion was recorded on Thursday night in Jabo town, Tambuwal Local Government Area of Sokoto State, while two separate explosions rocked Offa, Kwara State, a few hours after the Sokoto strike.

Our correspondents gathered that there was another explosion at Tangaza LGA of Sokoto.

Trump announces strikes

US President Donald Trump announced the strikes in a post on his Truth Social platform on Thursday night.

He disclosed that US forces conducted deadly strikes against Islamic State terrorists in Northwestern Nigeria.

“Tonight, at my direction as Commander in Chief, the United States launched a powerful and deadly strike against ISIS terrorist scum in Northwest Nigeria, who have been targeting and viciously killing, primarily, innocent Christians, at levels not seen for many years, and even centuries! I have previously warned these terrorists that if they did not stop the slaughtering of Christians, there would be hell to pay, and tonight, there was,” he wrote.

Although Trump did not specifically reveal the targeted areas, the US Africa Command, in a post on its X handle, confirmed that the strikes were carried out in Sokoto State.

The strikes came after Trump in October threatened a US military intervention in Nigeria over what he described as the government’s failure to curb violence targeting Christian communities.

Trump, who declared Nigeria a Country of Particular Concern, threatened to go into Nigeria ‘guns a-blazing’.

No casualties

Saturday PUNCH gathered that the US missile attacks might not have involved any casualty.

A senior military official told one of our correspondents on Friday that no terrorist was killed.

The official, who asked not to be named because he was not authorised to speak to the press, said the operation involved shelling believed to have been launched from a naval vessel.

“The US is here; they said they were going after an ISIS target but they fired blank yesterday after their operation. There was no terrorist killed or arrested,” he said.

Another military source familiar with the operation told our correspondent that several strikes were launched, but most of the individuals and groups targeted were missed.

He disclosed that the actual damage inflicted remained mostly unknown.

The source, however, hinted that more strikes were being planned in the coming days.

Also, a security analyst for East and West Africa, Brant Philip, in a post on X,  wrote, “This was likely a symbolic start to official US operations in Nigeria, which began on Christmas Day. The operational results of the strikes are not significant, but much is expected soon, not only in the northwest but in the northeast as well. The coming strikes are also expected to be carried out by an American UAV, probably an MQ-9 Reaper drone.”

Also speaking on the matter, another security analyst and Chief Executive Officer of Beacon Consulting, Kabiru Adamu, said he learnt that similar strikes occurred in Offa, Kwara State.

He stated that neither Jabu in Sokoto, nor Offa in Kwara, was known as a base for terrorists.

Adamu, who hails from Tambuwal LGA, where Jabu is located, said residents confirmed that there were no casualties or arrests.

“In the case of Jabu, I spoke with a traditional ruler there. In fact, not a single soul was killed. So, no arrest and no killing,” he added.

He questioned the choice of locations for the strikes, noting that known strongholds of armed groups were not targeted.

Adamu advised that future counter-terrorism operations should rely on improved intelligence, including better human intelligence networks to identify suspects and their movements.

“In intelligence, you use a combination of elements, human as well as technological. The human ones would help pinpoint exact locations. So, before you even use the intelligence, you need to be able to identify the bad actors, “ he added.

Death claims

Meanwhile, the New York Times, while quoting the US Africa Command, claimed that multiple terrorists were killed in the strikes.

AFRICOM, in its initial assessment of the strike concluded that “multiple” ISIS terrorists were killed.

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According to the report, the strike involved more than a dozen Tomahawk cruise missiles fired off a Navy ship in the Gulf of Guinea, hitting insurgents in two ISIS camps in Sokoto State.

Also, officials of Tangaza LGA in Sokoto State told Saturday PUNCH that the strikes were carried out on suspected hideouts of the Lakurawa group.

According to the officials, the operation targeted multiple Lakurawa enclaves and took place between 10pm and 12.15am,  affecting Warriya and Alkasim villages in Tangaza LGA.

Tangaza, which shares a border with the Niger Republic, has in recent times witnessed repeated attacks attributed to the Lakurawa group, described by security sources as foreign-linked bandits operating across border communities.

The Lakurawa group is believed to be affiliated with the Islamic State Sahel Province, with operational presence across parts of Mali, Niger, Kebbi and Sokoto states.

The group has been blamed for many deadly attacks in the region, prompting sustained counter-terrorism operations by Nigerian security forces.

Tinubu sanctioned strikes – FG

The Federal Government confirmed on Friday ongoing security and intelligence cooperation between Nigeria and the US following the strikes.

The spokesperson for the Ministry of Foreign Affairs, Kimiebi Ebienfa, said Nigerian authorities remained engaged in “structured security cooperation with international partners, including the United States of America,” to address terrorism and violent extremism in the country.

The ministry said the collaboration, which led to precision airstrikes on terrorist targets, involved intelligence sharing, strategic coordination and other forms of support in line with international law, respect for Nigeria’s sovereignty and shared security commitments.

Speaking with CNN, the Minister of Foreign Affairs, Yusuf Tuggar, disclosed that the attacks were sanctioned by President Tinubu, insisting that they were not in violation of Nigeria’s sovereignty or territorial integrity.

He said, “Terrorists are being targeted, this has always been Nigeria’s approach and this also put to rest any doubt with regards to the Tinubu’s administration resolve to fight terrorism.

“This was coordinated with the US, the same way we have been saying that we are ready, willing and able to collaborate and coordinate with any foreign government that is committed to the fight against terrorism. This is not about religion, it is about Nigerians, innocent civilians and the wider region as a whole.

“Even before the strike was carried out, I had a 19 minutes phone call with the US Secretary of State, Marco Rubio, after which I discussed with President Tinubu and I later spoke again to President Tinubu; he gave the go ahead and Marco Rubio called me once more for five minutes discussion and subsequently, the attacks were carried out.

When asked if Nigeria was prepared to allow US ground troops operate in the country, Tuggar said, “These are operational issues that will have to be considered by our military. I’m heading the ministry of foreign affairs and diplomacy and it is something the ministry of defence and some of our security agencies will be in a better position to respond to.”

A top government source confirmed that the US strikes hit Sokoto and Kwara communities.

The source also confirmed that there was no record of casualties yet.

“But in the coming days, records will be taken to know if anyone died in the airstrikes,” the source added.

Sokoto residents recount ‘horrific’ night

Meanwhile, residents of Jabo town and Offa, have recounted the horrifying moments of the explosions.

Eyewitnesses described the sound as loud, sudden, and unfamiliar.

The Sarkin Burmin Jabo and district head of the town, Alhaji Aliyu Garba Jabo, said he was in his palace with his family when the explosion occurred.

“We heard a very loud sound,” he said. “At first, we thought it was a plane crash. People were frightened because it was something we had never experienced before.”

When residents later moved towards the area from which the sound originated, they discovered scattered fragments behind a hospital, extending into nearby farmlands.

The remnants appeared metallic, with aluminum-like pieces visible on the ground.

Security officials later cordoned off parts of the area, while soldiers evacuated some of the rubble.

The anti-bomb squad of the Nigeria Police Force, Sokoto State Command, was subsequently deployed in the scene to begin technical investigations.

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“We cannot conclusively say what kind of device it was,” the district head said.

“There are markings and numbers on some of the remnants, and only security agencies can determine where it came from.”

Another resident, Lukman Maikagara, said immediately the blast happened, residents rushed to the scene to confirm the magnitude of the incident.

He said the fire which followed the blast lasted for over one hour, which made people scared.

Despite the explosion, no deaths or injuries were recorded.

Saturday PUNCH also gathered that no houses were destroyed, though some farmlands were affected.

“My family farm is among the affected areas,” a farmer, Jabo, said. “But we give thanks to God that no life was lost.”

Kwara residents count losses

In Offa, eyewitnesses told Saturday PUNCH that the first blast occurred around the Eid praying ground area in Offa, where several residential buildings were damaged.

The second incident was recorded near Solid Worth Hotel, about a five-minute walk from the first location.

Although no deaths were officially recorded, several residents sustained injuries, while property worth millions of naira was destroyed, leaving victims stranded and traumatised.

Residents said they were jolted out of their sleep by a loud explosion that shook buildings and sent debris flying in different directions.

“It was like a war scene,” a resident said.

“People were screaming and running in different directions because nobody knew what was happening.”

Sources said an undetonated explosive object was later discovered at the second location near Solid Worth Hotel, prompting security agencies to immediately cordon off the affected areas and restrict movement.

A resident said he narrowly escaped death after his room collapsed on him.

“Yesterday around 10pm, I was already sleeping when I just heard a loud noise,” Soliu recounted.

“When I opened my eyes, the wall of my room had collapsed and my roof was blown open, but I managed to crawl out under the rubble.”

Soliu said he sustained injuries during the incident.

“I was injured. A block fell on my chest,” he added.

He said he returned to the scene the next morning to salvage his belongings but found an unfamiliar object among the debris.

“Some people said it’s part of a missile that was shot by the US yesterday, but I don’t know,” he said.

Soliu said he lost virtually everything he owned.

“The LGA chairman came last night and told us the government was on top of the situation. I have lost the little things I call properties. Everything was destroyed.

“Only a few clothes I was able to pick. I don’t even have money to take myself to a hospital for treatment. My chest is still hurting me, and I have bruises on my leg too,” he lamented.

A furniture maker whose workshop was destroyed, Alaba Awodele, said he received a distress call shortly after the incident.

“I got a call around a few minutes past 10pm that a bomb had been thrown into my shop,” he said.

“I was surprised. Bomb? How come? When I rushed here, I couldn’t believe what I saw. I never imagined that such a thing could happen in Offa.”

Awodele said the explosion destroyed his machines and furniture meant for delivery.

“Even as I am talking to you, I am confused. This thing destroyed some of my machines. The goods I wanted to deliver to someone moving into a new house to celebrate the New Year have been destroyed.

“I don’t even know what to do now,” he said.

Similarly, Mary Oyagbile, who owns a fashion design shop in the affected building, said the incident wiped out her business.

“I just got calls from my neighbours that they had thrown a bomb into the shop,” she said.

“When I got here, all my machines and my freezer had been destroyed. Only God and the government can help us.”

Another survivor, Quadri Saka, said he escaped with bruises because he was not inside the house when the explosion occurred.

“I told my mum I wanted to go and buy a recharge card. She was hesitant because it was late,” he said.

“However, as I was returning, I just heard a loud noise. An object scratched my ears, and I found myself on the ground covered in dust.”

Saka said he rushed home after regaining consciousness.

“When I noticed that our house had collapsed and my mum was inside, I rushed in. I saw her on the floor, shaken and terrified. I was able to bring her out through the back of the house. We thank God for saving our lives.”

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He dismissed speculations that helicopters or aircraft flew over the area before the explosion.

“It just happened suddenly,” he said.

Corroborating her son’s account, a visibly shaken Moromoke Saka said she was asleep when the wall collapsed.

“I just heard a loud noise and part of the roof fell down. The wall also fell just inches from where I was lying,” she said.

“I couldn’t move due to shock. I was just shouting ‘Allahu’ and calling my son’s name. Everywhere was dusty. Few minutes later, my son came and dragged me out. I give thanks to God.”

Saturday PUNCH also visited Solid Worth Hotel, the site of the second incident, where operations had been suspended.

An engineer at the hotel, Surajudeen Adewale, described the incident as terrifying.

“It happened like something from the movies, but we thank God there were no casualties,” he said.

Adewale said a staff member was injured and taken to the hospital but had since been discharged.

“This incident is a collateral damage. It has affected our business; as you can see, we have shut down,” he added.

“Immediately it happened, there was pandemonium because no one knew what was going on.

“I don’t know what to call that object, but security people said it was a missile targeted at a particular location and maybe there was a failure in location,” he said.

However, a security official, who spoke to Saturday PUNCH on condition of anonymity because he was not authorised to speak, claimed that what struck some of the buildings in Offa was not a conventional bomb but a component of an armed missile.

According to the source, the incident occurred hours after a joint US-Nigeria military operation against terrorist targets in Sokoto State.

“You know there was an airstrike by the United States in collaboration with the Nigerian government against terrorists in Sokoto,” the official said.

“The operation involved more than a dozen Tomahawk cruise missiles launched from a US warship from the Gulf of Guinea.

“What was found in Offa was not a bomb but a component of the bomb of the missile launched,” he added.

The claim, though yet to be officially confirmed, heightened fear among residents, many of whom struggled to understand how a missile component could travel over 540 kilometres from Sokoto to Offa.

When contacted, the Police Public Relations Officer of the Kwara State Command, SP Adetoun Ejire-Adeyemi, confirmed the incident but declined to give details, saying investigations were ongoing.

As of the time of filing this report, neither the Nigerian military nor the US government had issued an official statement linking the Offa explosion to the airstrikes in Sokoto.

ADC, Gumi kick against strikes

The African Democratic Congress has described the strikes as a damning indictment of President Tinubu’s leadership and a clear reflection of the administration’s incompetence and failure to effectively address Nigeria’s worsening security challenges.

The ADC, in a statement issued on Friday by its National Publicity Secretary, Bolaji Abdullahi, cautioned that allowing foreign forces to conduct direct military operations within Nigeria was unsustainable and could, over time, undermine the country’s strategic interests.

Also reacting, the former Governor of Sokoto State and Senator representing Sokoto South, Aminu Waziri Tambuwal, urged residents of the state to remain calm.

Tambuwal made the call in a statement posted on his verified X (formerly Twitter) handle, amid growing public concern over the circumstances surrounding the reported military action.

Islamic cleric Sheikh Ahmad Gumi has criticised strikes, describing the attacks as potentially polarising and detrimental to national sovereignty.

In a post on Facebook on Friday, Gumi argued that annihilating terrorists was an Islamic obligation, citing the Prophet Muhammad’s wish to destroy such groups.

He stressed that such action should be undertaken by “clean, holy hands” rather than foreign powers whose past, he claimed, included killing innocent civilians.

Gumi urged the Federal Government to halt military cooperation with the US and instead seek assistance from “neutral countries” such as China, Turkey, and Pakistan.

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Trump jokes about renaming Strait of Hormuz ‘Trump Strait’

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US President Donald Trump on Wednesday suggested renaming the Strait of Hormuz as “Trump Strait” despite ongoing clashes with Iran — then hours later implied he wasn’t serious.

Trump has made a series of geographical name changes to international bodies of water in his second term, at least partly with the aim of trolling other countries.

The latest suggestion came as Trump insisted the US had full control of the crucial waterway, even as fresh clashes raged there with Iran.

“Now that we have it under USA control, should we change the name Hormuz Strait to Trump Strait??? Like America itself, it would be ‘hotter’ than ever before!” Trump said on his Truth Social network.

The White House later posted a map of the Gulf on social media with his suggested name, adding: “It’s got a nice ring to it.”

Trump has in recent weeks repeatedly threatened to claim sovereignty over the Strait of Hormuz, even posting a map showing the waterway as a “new US territory.”

Trump, however, later played down the idea of rebranding the Strait of Hormuz.

“It was just thrown out there,” Trump said with a chuckle after an AFP reporter asked him in the Oval Office if he was serious about renaming it.

But a number of the 80-year-old Republican’s previous suggestions have been dismissed as being humorous before they ended up happening for real.

Last week Trump signed an order renaming Lake Ontario as “Lake America” amid a trade war with neighboring Canada, just days after apparently raising the idea in jest.

– Iran war grinds on –

Trump also renamed the Gulf of Mexico as the “Gulf of America” on his first day back in the White House in January 2025. Neither Mexico nor Canada have accepted the changes.

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He has also gone on a spree of renaming things after himself, including the Kennedy arts center in Washington, while the US Treasury meanwhile on Wednesday issued $1 coins featuring Trump’s face to mark the 250th anniversary of US independence.

The Iran war remains a deadly serious issue, with no sign of ending more than six months after the initial US-Israeli assault.

Fighting has flared again after weeks of calm, with US forces launching fresh strikes near the Strait of Hormuz on Tuesday in response to what Trump said were new minelaying efforts by Iran.

Iran said one of the US strikes killed four people at a wedding, branding it a “war crime”, and launched a wave of retaliatory strikes at US bases in Jordan, the UAE, Kuwait, Bahrain and Iraq.

At home, Trump has presided over a steep rise in US fuel costs as a result of the war and his Republican Party looks likely to lose at least partial control of Congress in the November midterm elections.

Iran has effectively shut down the choke point, through which a fifth of the world’s oil passes, in retaliation for the war Trump started along with Israel in late February.

Trump said on Wednesday that the United States was ready to attack Iran again — while adding that the renewed campaign would not last “too long.”

“It was a very heavy attack last night, and we’re prepared to do another one any time we want,” Trump told reporters in the Oval Office.

AFP

Source: punchng.com

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Workers demand N300,000 minimum wage

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The Federal Workers Forum has written to President Bola Tinubu and the National Assembly, demanding an immediate review of the salaries of federal civil servants and an increase in the minimum wage from N70,000 to N300,000.

The letter, dated September 2, 2026, and signed by the National Coordinator, FWF, Andrew Emelieze and General Secretary, Ogundele Ayodele, was addressed to the Senate President and Speaker of the House of Representatives through the Clerk of the National Assembly, with President Tinubu, the Chief Justice of Nigeria, and the Head of the Civil Service of the Federation also listed among the recipients.

The forum also proposed a salary of N1.5m for Level 17 officers, arguing that the current wage structure no longer reflects the economic realities confronting federal workers.

Backing its demand, the workers said in the letter, “We call for justice and immediate wage review now, adjust the federal minimum wage to N300,000 and a maximum wage of N1.5m for the Level 17 officers.”

The FWF said the demand was necessitated by what it described as the incomplete implementation of the N70,000 minimum wage approved in 2024, claiming that federal workers had yet to receive the full consequential adjustment and associated allowances.

The group stated, “It will surprise you to hear that the Federal Government has not fully implemented the new national minimum wage since July 2024. We have been in the battle for full consequential adjustment of the new minimum wage.”

According to the workers, the 2024 wage review increased the minimum wage from N30,000 to N70,000 but resulted in what they described as a flat N40,000 increase across all levels of the federal civil service.

The forum said, “Only N40,000 was added to the salaries of every federal worker across all levels.”

The latest demand comes amid continuing disagreements over the implementation of the 2024 minimum wage and related allowances.

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The N70,000 minimum wage replaced the previous N30,000 benchmark after negotiations between the Federal Government and organised labour, with the new wage framework subject to review after three years.

The FWF argued that the statutory three-year review period should not prevent the government from responding immediately to what it described as an emergency deterioration in workers’ purchasing power.

The forum said, “As a matter of fact, it is suicidal for the federal workers to continue in this ugly situation. Hence, based on the current cost-of-living crisis, it can only be a matter of justice that the federal wages be immediately reviewed to meet up with the current economic realities in Nigeria.”

The workers complained that the rising cost of food, transportation, accommodation, electricity, cooking gas and other necessities had made the N70,000 minimum wage inadequate.

“Federal workers have been enduring the situation, and everything has been frustrating and nauseating. We cannot cope again. Federal workers are dying in instalments; we are suffering in silence; our salary is too poor; it is not taking us home,” the letter stated.

The FWF further alleged that some federal workers had become heavily indebted to microfinance institutions and digital loan platforms in an attempt to meet their daily needs.

“Federal workers are now heavily indebted to microfinances and, most times, federal workers resort to phone loan apps to get transportation to work,” the group said.

The forum also claimed that some workers had resorted to using firewood because they could no longer afford cooking gas.

It argued that the worsening financial situation could affect workers’ productivity and create conditions conducive to corruption.

“While the Federal Government is making more money now, the federal workers are underpaid and subjected to unprecedented sufferings and hardship,” the workers said.

The forum also linked its demand to the wider increase in government revenues and expenditure, arguing that federal workers, whom it described as the “engine room of governance,” should benefit from improved national earnings.

It said, “The federal workers are the goose that lays the golden egg, but we are alienated from our labour.”

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The proposed salary structure attached to the letter provides for N300,000 for Level 1 Step 1 workers, rising progressively to N1.5m for Level 17 Step 1 officers.

Under the proposal, Level 2 workers would earn N330,000; Level 3, N360,000; Level 4, N390,000; Level 5, N420,000; Level 6, N450,000; and Level 7, N480,000.

The forum proposed N510,000 for Level 8; N550,000 for Level 9; N600,000 for Level 10; N700,000 for Level 12; N750,000 for Level 13; N800,000 for Level 14; N1m for Level 15; N1.2m for Level 16 and N1.5m for Level 17 officers.

The workers said their N300,000 minimum wage proposal was based on an estimated monthly expenditure covering feeding, transportation, accommodation, family support, electricity, cooking gas, phone and data, water and other utilities.

“Our projections here are fair, and we believe it can still be accommodated in the present budget based on the daily increased earnings and the excess crude oil sales earnings,” the forum said.

Among its other demands, the FWF called for payment of all outstanding salaries, promotion arrears and other entitlements owed federal workers.

It also demanded the immediate implementation and payment of arrears of the 40 per cent peculiar allowance, full consequential adjustment of the 2024 minimum wage, and the introduction of a permanent Cost of Living Allowance.

The workers further sought a Family Support Allowance, an end to stagnation in the civil service, declaration of vacancies for promotions, comprehensive health insurance for federal workers and pensioners, car and housing loan schemes, long-service awards and improved pension arrangements.

The forum also called for free education for the children of federal workers and pensioners in federal institutions, reduced taxation of workers’ allowances and tax relief measures.

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Beyond workers’ wages, the FWF appealed to the government to introduce a comprehensive social security programme for unemployed and underemployed Nigerians, provide free medical care for children, pregnant women and elderly citizens, and establish federal intervention programmes for the treatment of cancer and other life-threatening diseases.

It also called for stronger measures to tackle insecurity, including the release of kidnapped Nigerians.

The forum demanded an investigation into reports that part of workers’ contributory pension savings was being borrowed by the executive.

“We like to bring to the notice of the National Assembly that we are hearing rumours that part of our contributory pension savings is being borrowed by the executive. We are calling for investigations and an immediate stoppage cum refund if it is true,” it stated.

The workers also called for the return of petrol subsidy, price-control measures for essential goods and services, efforts to strengthen local production and industrialisation, and measures to address the declining purchasing power of Nigerians.

The FWF urged the National Assembly to take up its demands with the President, stressing that federal workers could not afford to wait until July 2027 before their salaries were reviewed.

It said, “Federal workers have suffered enough. It has been three years of torture, torment and agony for the federal workers since the removal of fuel subsidy.”

The forum concluded by appealing to the lawmakers and other government officials to treat its letter as an emergency intervention, saying improved wages were necessary to protect workers’ welfare and enhance their ability to effectively implement government policies.

The group stated, “It is our prayers that the National Assembly, being the representative of the people, take up our plea with the utmost responsibility and act accordingly to ensure a just society.”

Source: punchng.com

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Tenure countdown: States owe N5.3tn as 12 govs near exit

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Twelve state governors whose tenures will end in 2027 and early 2028 are set to leave behind a combined debt burden of about N5.3tn, comprising domestic and external obligations, findings by The PUNCH have shown.

The affected governors are Umaru Fintiri of Adamawa, Mai Mala Buni of Yobe, Abdullahi Sule of Nasarawa, AbdulRahman AbdulRazaq of Kwara, Dapo Abiodun of Ogun, Inuwa Yahaya of Gombe, Bala Mohammed of Bauchi, Babajide Sanwo-Olu of Lagos, Babagana Zulum of Borno, Seyi Makinde of Oyo, Hope Uzodimma of Imo and Douye Diri of Bayelsa.

Data obtained from the Debt Management Office showed that the 12 states had accumulated domestic debts of N2.16tn as of the first quarter of 2026, while their external obligations stood at about $2.33bn based on the latest available state-level external debt data.

Most of the governors are expected to complete their second terms in 2027, while Uzodimma and Diri will remain in office until January 15 and February 14, 2028, respectively.

The debt positions of the states have, however, followed different trajectories under the governors, with some reducing their domestic or external obligations despite the overall increase in the combined debt stock.

Lagos tops list

Lagos State carries by far the largest domestic debt burden among the 12 states.

The state’s domestic debt stood at N1.205tn as of the first quarter of 2026, according to the DMO, accounting for more than half of the N2.16tn combined domestic debt of the affected states.

At the other end of the scale is Nasarawa, whose domestic debt stood at N27.15bn, the lowest among the 12 states.

Lagos also recorded the highest external debt, with outstanding foreign obligations of $1.174bn in the DMO’s 2025 external debt profile.

Yobe had the lowest external debt at $46.67m.

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The combined obligations could increase further before the governors leave office if the states undertake fresh borrowing or updated DMO data show additional liabilities.

Debt management record

An analysis of the debt positions inherited by the governors shows a mixed record, with some administrations increasing both domestic and external obligations while others succeeded in reducing at least one component of their debt.

In Adamawa, Fintiri is expected to leave office with domestic debt of N64.7bn, down from N95.22bn when he assumed office. However, the state’s external debt increased to $124m from $100.614m.

Yobe’s Buni increased domestic debt to N98.60bn from N27.47bn. Its external obligations also rose to $46.67m from $26.911m.

Sule is expected to leave Nasarawa with domestic debt of N27.15bn, which is a reduction from N89.95bn when he came to office. His state has external debt of $60.82m.

In Imo, Uzodimma reduced domestic debt substantially to N81.65bn from N164.436bn inherited when he took office. However, external debt increased to $117.08m from $64.762m.

Kwara also recorded a reduction in domestic debt under AbdulRazaq, falling to N56.92bn from N59.58bn. External obligations, however, rose to $64.159m from $47.961m.

Abiodun of Ogun increased both domestic and external debt. Domestic obligations rose to N200.748bn from N97.050bn, while external debt increased to $217m from $102.154m in the first quarter of 2019.

Gombe’s Yahaya reduced domestic debt to N65.17bn from N76.895bn but increased external obligations to $88.7m from $36.960m.

In Bauchi, domestic debt climbed to N154.45bn from N93.320bn under Bala Mohammed, while external debt rose to $220.6m from $133.705m.

Zulum increased Borno’s domestic debt to N88.44bn from N78.259bn and external debt to $69.9m from $21.313m.

Bayelsa recorded one of the sharper reductions. Diri cut domestic debt to N50.17bn from N147.930bn and external debt to $55.5m from $59.551m.

Makinde also reduced Oyo’s domestic debt to N69.8bn from N94.140bn and external obligations to $87.5m from $136.531m.

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In Lagos, Sanwo-Olu increased domestic debt to N1.205tn from N542.231bn but reduced external obligations to $1.174bn from $1.421bn.

A Professor of Development Economics at Nnamdi Azikiwe University, Uche Nwogwugwu, said states could reduce their debt burden by investing borrowed funds in productive sectors capable of generating sufficient revenue to repay the obligations.

He said the lack of policy continuity remained a major obstacle, as successive administrations often abandoned existing strategies and introduced new ones instead of building on previous investments.

“Under the current arrangement, every government that comes wants to invent its own wheel. States can actually reduce their debts if they can identify productive investments and channel resources into them,” he said.

Nwogwugwu cited Imo’s investment drive in the gas sector as an example of an attempt to develop alternative sources of economic growth.

“Hope Uzodimma is being inventive in Imo State by trying to channel investments into gas. Alex Otti is also being very inventive by focusing on people-oriented programmes,” he said.

He warned that governments that prioritise projects without clear economic returns risk accumulating large debt burdens.

“Governments that work on publicist projects borrow very heavily. It is not rocket science because every state has something that it can invest in and generate returns,” he said.

According to him, borrowing is not inherently harmful if the funds are deployed into investments that generate returns and improve citizens’ welfare.

“Debt is a micro-unit of a nation. Every part of the state should feel both the cost and the benefits. States have to borrow. There is nothing wrong with states borrowing as far as the debts will be paid back,” he said.

Similarly, a Professor of International Economics, Jonathan Aremu, said borrowing could support economic development when funds were channelled into productive investments but could become a burden when used for projects that generated little or no economic returns.

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“I always say that there is nothing wrong with debt. If the debt is productive, there is nothing wrong with it. If you borrow N10m and it generates N20m, the debt is a good one,” Aremu said.

He said infrastructure that improves economic activity could constitute productive borrowing.

“If I can borrow and build a road that will help agricultural produce get to the market, the debt is a good one. If it is not producing anything, it is dead-weight debt. It means it is putting a lot of burden on the economy,” he said.

Aremu urged governments to assess the long-term economic impact of every borrowing decision, particularly its ability to generate revenue and improve living standards.

“You have to decide whether it is productive or a dead weight. One thing about debt is that it should not tamper with the sustainability of the economy. The government must consider whether it is productive, dead weight or whether it will improve the lives of the people in the future,” he said.

An emerging markets analyst, Ike Ibeabuchi, meanwhile, warned states against excessive reliance on external borrowing, particularly because the naira’s depreciation has significantly increased the local-currency cost of servicing foreign obligations.

He noted that the naira had weakened substantially from about N465/$ in May 2023 to around N1,326/$, making dollar-denominated obligations considerably more expensive when measured in naira.

“With naira depreciating, external debts are quite a big burden. If you must borrow, look for domestic sources or assets to sell,” he said.

Source: punchng.com

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