Editorial

Checking Nigeria’s Rising Debt Profile

Published

3 years ago

September 29, 2023

These are challenging times for Nigeria as the country grapples with an uncertain political environment,
heightened insecurity, and a struggling economy. The nation is facing financial difficulties, as indicated by the escalating debt profile and the resulting burdensome repayment obligations. To avert an impending disaster, President Bola Ahmed Tinubu and his cabinet must emerge from their passive stance and implement measures to halt the country’s downward spiral.
An alarm raised last year by the Centre for the Promotion of Private Enterprise re-echoed the magnitude of Nigeria’s debt crisis. The warning that Nigeria’s national debt, encompassing both the liabilities of the Asset Management Corporation of Nigeria (AMCON) and borrowings from the Central Bank of Nigeria (CBN), could soon reach the N50trillion mark caused serious concern. The present situation is already unsustainable, with the government spending 90per cent of its revenue on servicing debts.
But in the latest release, the Debt Management Office (DMO) puts Nigeria’s total public debt at N87.38trillion at the end of the second quarter of 2023. The figure represents an increase of 75.29percent or N37.53trillion, compared to N49.85trillion recorded at the end of March, 2023. The DMO, in a recent report, said the debt includes the N22.71trillion Ways and Means Advances of the Central Bank of Nigeria to the Federal Government. The statement also noted that other additions to the debt stock were new borrowings by the Federal Government and the sub-nationals from local and external sources.
The DMO had earlier projected that Nigeria’s public debt burden might hit N77trillion following the National Assembly’s approval of the request by former President Muhammadu Buhari to restructure the CBN’s Ways and Means Advances. The Ways and Means Advances is a loan facility through which the CBN finances the shortfalls in the government’s budget. The DMO’s Director-General, Patience Oniha, during a public presentation of the 2023 budget organised by the former Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, noted that the debt would be N70trillion without N5trillion new borrowing and N2trillion promissory notes.
However, the latest data revealed that the current debt stock of N87.38trillion exceeded the DMO’s projection by N10.38trillion. Further breakdown showed Nigeria has a total domestic debt of N54.13trillion and a total external debt of N33.25trillion. While the domestic debt makes up 61.95 percent of total debt, the external portfolio makes up 38.05 percent. The Tide also observed that there was a significant increase in both domestic and external debts within three months. The domestic debt rose by 79.18percent from N30.21trillion, while the external debt rose by 69.28percent from N19.64trillion in Q1 2023.
In its 2022 Debt Sustainability Analysis Report, the DMO warned that the Federal Government’s projected revenue of N10trillion for 2023 could not support fresh borrowings. According to the Office, the projected government’s debt service-to-revenue ratio of 73.5percent for 2023 is high, and a threat to debt sustainability. It noted that the government’s current revenue profile could not bolster higher levels of borrowing.
Nigeria’s story is tragic. Its debt crisis began in 2005/06 with a debt buy-back with the Paris Club and the London Club of international creditors, leading to $18billion in debt forgiveness. However, enabled by a rubber stamp National Assembly, Buhari led the country into another debt trap, with public debt expanding the most under his regime, compared to previous administrations since 1999. The foreign debt component also grew over three times more than the combined figure recorded by the previous three administrations.
The present government should discontinue the last administration’s profligate borrowings and spending. There should be financial prudence since the country produces nothing tangible for the international market other than crude oil. Therefore, spending 90 percent of revenue on debt servicing is certainly not sustainable; it leaves next to nothing for capital projects, besides paying workers’ salaries.
It will be beneficial for the authorities to prioritise revenue generation by implementing initiatives and reforms to increase tax collection. This includes Strategic Revenue Growth Initiatives to raise the tax-revenue-to-GDP ratio, currently at 7 percent, to match other countries. Additionally, the three tiers of government should establish public-private partnership schemes to encourage financial support for capital projects previously funded through borrowing.
The crude oil business has long been shrouded in opacity, hindering transparency and accountability. Every dollar generated from the sale of crude oil should be properly accounted for, and we should take measures to block fiscal leakages. The recovery of the $62billion oil revenue owed by major oil companies, as sanctioned by the Supreme Court since October 2018, should not be further delayed. This substantial amount, if recovered, has the potential to uplift the economy.
Addressing the extensive theft of crude oil and expanding the tax net are imperative. The government should privatise most of the infrastructure it borrows to establish, such as airport terminals, railways, and seaports. The NASS, a compliant parliament, should restore its reputation by ceasing to approve all requests blindly for external borrowing without scrutinising the sources of repayment and considering the potential consequences for future generations of Nigerians.
Reducing bureaucracy, lowering governance costs, easing the fiscal burden, and increasing revenue are also vital to conserve funds. It is important to monitor the revenue-to-debt-service ratio closely to avoid excessive debt. Otherwise, Nigeria could end up in a situation of unsustainable debt burden, needing to ask for debt forgiveness from other countries, which might reflect poorly on the current administration. There should be a renewed urgency in ending gratuitous borrowing. This is our stand!

Editorial

Fix Bad Roads, Avert Flooding In PH

Published

2 days ago

June 8, 2026

The Tide

For many years, residents of Port Harcourt have suffered from deplorable roads and persistent flooding. During the rainy season, movement becomes difficult and business activities are often disrupted. Thankfully, there has been some relief in one major area. Since Governor Siminalayi Fubara addressed the flooding problem along Ikwerre Road by Afikpo Junction, the situation has improved significantly. Even after heavy rainfall, the area no longer experiences the usual flooding, and vehicles can now move freely without difficulty. This intervention deserves accolade and commendation.

Another notable project is the ongoing drainage reconfiguration at NTA Road, opposite the Nigerian Television Authority. The work being carried out there shows that the government recognises the connection between poor drainage and deteriorated roads. Once completed, the project could become a good example of how proper planning and infrastructure maintenance can improve urban roads. The administration should be encouraged to sustain this undertaking.

While the governor continues to carry out development projects across the state, attention should also be given to Obi Wali Road in Obio/Akpor Local Government Area. The road has remained in decrepit condition for years despite its importance as a major economic route. Whenever it rains, flooding stretches from Rumuigbo Junction to Nkpolu Junction, forcing businesses to discontinue operations for the day. According to traders in the area, several shops shut down after every heavy rainfall. This situation cannot continue indefinitely.

Fubara should spend more time scrutinising roads and infrastructure across Port Harcourt personally rather than depending entirely on reports from officials. His intervention at Ikwerre Road was successful because he saw the problem firsthand and understood the extent of the tribulations faced by motorists and residents. The same practical approach should now be replicated on Obi Wali Road.

A visit to the area during rainfall would clearly reveal how quickly the road becomes impenetrable. Vehicles struggle to move through the flooded sections, while pedestrians are forced to walk through unsanitary water. Direct assessment often provides a clearer understanding of problems and can lead to quicker and more efficacious solutions.

The current condition of Obi Wali Road is similar to what Elelenwo Road looked like before it was reconstructed under the administration of former Governor Nyesom Wike. After the road was metamorphosed, the area became more accessible, attractive and serviceable. Today, Elelenwo Road accommodates heavy traffic daily without major flooding issues. There is no reason Obi Wali Road should not receive similar attention. What is required is commitment and political fortitude.

The Airforce and Rumuomasi section of the Port Harcourt–Aba Road, beginning from Shoprite to PAMO, also remains in very poor predicament. During heavy rainfall, flooding affects the stretch from Lagos Bus Stop to Market Junction, covering almost 1.2 kilometres. As a result, motorists are forced to circumnavigate through Old Aba Road before reconnecting at Rumubiakani or Market Junction. This often adds between 20 and 30 minutes to expeditions during the rainy season.

The situation is becoming increasingly disconcerting. Smaller vehicles frequently avoid the route whenever it rains heavily. Reports from local transport operators indicate that many private and commercial vehicles circumvent the area on rainy days. Sadly, this has become a perennial problem every rainy season, despite changes in government over the years. The current administration should focus on providing a permanent solution rather than temporary repairs that fail after a short time.

Flooding is also common along the NTA–Choba Road near Choba Market, opposite Royal House of Grace Church. Although the road itself is in fairly good condition, blocked drainage channels continue to create encumbrances whenever it rains. In addition, potholes are beginning to materialise along Obiri Ikwerre Road leading towards NTA Road. If these faults are ignored, they will eventually develop into major road degeneration.

Other areas in urgent need of attention include Mile 3 Market Road to Wokoma Street, which floods after torrential rainfall, and Gambia Junction at Mile 2 Diobu, where flooding has become ubiquitous. Okporo Road, the stretch from Rumuodara Junction to Artillery, Bereton Junction, and Miniesuku Junction near Halley College are all in dilapidated condition. Altogether, these roads affect the daily movement of hundreds of residents across the city.

To address these challenges effectively, the state government should establish a specialised road maintenance agency responsible for identifying and repairing damaged roads before they deteriorate completely. Regular inspections and preemptive maintenance would help reduce long-term reconstruction costs and improve road safety across Port Harcourt.

Local government councils also have an important role to play. Each council should maintain meticulous records of roads within its jurisdiction and monitor their condition regularly. Responsibility for road maintenance should not rest entirely on the state government. Better synergy between state and local authorities would ensure that no road is overlooked.

Governor Siminalayi Fubara has already shown positive leadership through the improvements at Ikwerre Road. Residents now hope that the same commitment will be cloned across other troubled areas in Port Harcourt so that the city could finally experience safer roads, better drainage and unobstructed movement for everyone.

Editorial

Nigeria’s 27 Years of Civil Rule Journey

Published

2 weeks ago

May 29, 2026

The Tide

Nigeria returned to civil rule on May 29, 1999, after several years of military intervention in politics. The transition marked a major turning point in the nation’s history and raised hopes for freedom, stability, economic growth and accountable leadership. Citizens expected that elected governments would strengthen institutions, improve living conditions and unite the country after years of authoritarian rule. Twenty-seven years later, civil rule has survived without interruption, making it the longest uninterrupted civilian administration since independence in 1960.

Since 1999, Nigeria has witnessed six administrations at the federal level. Olusegun Obasanjo governed from 1999 to 2007, followed by Umaru Musa Yar’Adua from 2007 until his death in 2010. Goodluck Jonathan served from 2010 to 2015, while Muhammadu Buhari led the country between 2015 and 2023. Since May 2023, Bola Ahmed Tinubu has been in office. Though democracy has remained stable, governance outcomes have produced mixed reactions among Nigerians.

The country has made some notable progress over the past 27 years. Democratic institutions such as the National Assembly, judiciary, political parties and the media have become stronger than they were during military rule. Elections are now regular, though still imperfect. Telecommunications, banking, entertainment and digital technology have expanded greatly. Nigerian youths have also become more politically aware and active. The country’s economy, despite its difficulties, remains one of the largest in Africa.

However, many of the expectations that came with democracy remain unmet. Corruption, unemployment, poverty, insecurity and poor infrastructure continue to trouble the nation. Public confidence in government institutions has weakened over time because many citizens believe political leaders have not done enough to improve their welfare. Ethnic and religious tensions also remain major challenges. While democracy has endured, good governance has not always matched the hopes of the people.

President Tinubu’s administration began with bold economic decisions aimed at reforming the nation’s finances. His government removed fuel subsidy and unified the foreign exchange system. Supporters argue that these measures were necessary to reduce waste and attract investment. The government also increased revenue allocation to states and sought to improve tax administration. Yet the immediate impact has been severe hardship for millions of Nigerians. Inflation, high transport costs and the falling value of the naira have placed enormous pressure on households and businesses.

In education, the Tinubu administration has promised reforms through student loan schemes, support for technical education and efforts to reduce strikes in tertiary institutions. Some progress has been recorded with the establishment of the Nigerian Education Loan Fund. However, public schools still face poor funding, inadequate facilities and shortage of teachers. Many students continue to struggle with rising school fees and declining quality of education.

The health sector under the current administration has also recorded both efforts and challenges. Government has pledged to improve health insurance coverage. Nevertheless, hospitals across the country still suffer from inadequate equipment, shortage of medical personnel and brain drain as doctors and nurses continue to leave Nigeria for better opportunities abroad. Access to affordable healthcare remains difficult for many rural communities.

The power sector remains one of Nigeria’s biggest disappointments after nearly three decades of democracy. Despite repeated promises and reforms, electricity supply is still unstable. Businesses and households spend heavily on generators and fuel. The Tinubu administration has introduced policies aimed at decentralising power generation and encouraging investment, but ordinary Nigerians are yet to feel significant improvement in electricity supply.

The rising cost of living has become the greatest concern for many Nigerians today. Food prices, transportation costs and rent have increased sharply. Though the Federal Government introduced palliative programmes and cash transfer initiatives to cushion the effects of reforms, many citizens believe the interventions have been inadequate or poorly distributed. There is growing demand for more effective social protection programmes targeted at vulnerable citizens.

On national security, the government continues to battle terrorism, banditry, kidnapping and communal violence. Security agencies have recorded some successes in parts of the country, yet insecurity remains widespread. Farmers in many rural communities still face attacks, affecting food production and increasing fear among citizens. Regional stability in West Africa has also become more uncertain due to political crises in neighbouring countries. Nigeria continues to play a leading diplomatic role in the region, but internal security challenges weaken its influence.

In infrastructure and other key sectors, the Tinubu administration has continued several road, rail and housing projects inherited from previous governments. Investments in ports, gas and digital technology have also been encouraged. In agriculture, government has promoted mechanised farming, dry season cultivation and access to credit. Yet food insecurity remains high because insecurity, inflation and poor rural infrastructure continue to affect agricultural productivity. Nigeria still imports many food items despite its vast agricultural potential.

To improve national conditions, the Federal Government must place greater attention on job creation, industrialisation and support for small businesses. More investment is needed in agriculture, healthcare, education and electricity. Anti-corruption institutions should be strengthened while government spending must become more transparent. Leaders must also prioritise national unity and reduce political divisions. Nigerians expect reforms that produce visible improvements in their daily lives, not only policy announcements.

In Rivers State, the 27 years of civilian rule have produced substantial development alongside political tensions. The state has remained economically important because of its oil and gas resources. Different administrations since 1999 have invested in roads, schools, healthcare facilities and urban renewal projects. However, political conflicts and struggles for power have often affected governance and slowed development in parts of the state.

Governor Siminalayi Fubara assumed office in May 2023 amid high expectations and intense political disagreements. In infrastructure, his administration has initiated projects such as massive road construction, bridge rehabilitation and urban development schemes in parts of the state. Ongoing works on major roads and public facilities have been presented as efforts to improve transportation and economic activities. Critics, however, argue that political instability in the state has distracted government’s attention from faster project delivery.

In education and health, the Rivers State Government has continued support for public schools and healthcare centres. Efforts have reportedly been made to improve learning environments and sustain payment of workers’ salaries. In health, there have been interventions in hospitals and primary healthcare services. On security, the administration has worked with security agencies to maintain peace, although political tensions in the state have created uncertainty. In the civil service, workers and pensioners have largely continued to receive salaries, stipends, and welfare support. The state government has also shown interest in agriculture and power development, though these sectors still require stronger investment and clearer long term strategies.

Going forward, Rivers State needs greater political stability to achieve meaningful development. The government should focus more on rural roads, youth employment, agricultural expansion and uninterrupted healthcare services. Investments in independent power projects and industrial development would help attract businesses and reduce unemployment. Above all, political leaders in the state must place the interest of the people above personal or factional battles. Democracy can only succeed when governance delivers peace, development, and hope to ordinary citizens.

Editorial

Enough Of Xenophobic Attacks On Nigerians

Published

3 weeks ago

May 18, 2026

The Tide

The xenophobic attacks and anti-foreigner sentiments in South Africa are not new, but their persistence makes them an increasingly explosive issue. Each cycle of violence against foreign nationals chips away at the country’s moral authority and threatens the very ideals upon which post-apartheid South Africa was built. A nation that once symbolised triumph over institutionalised oppression is fast becoming a theatre of intolerance, where fellow Africans are targeted for the simple crime of seeking a livelihood.

Only recently, the South African President, Cyril Ramaphosa, described those who attack foreigners in his country as opportunists and criminals. Yet, words alone have proved entirely ineffective in halting the carnage on the streets. The latest wave of violence has reportedly claimed the lives of two Nigerians and two Ghanaians, while properties worth millions of rands belonging to several foreign nationals have been destroyed.

In a fierce reaction to these killings, Senator Adams Oshiomhole urged the Nigerian Federal Government to act immediately by withdrawing the operational licences of MTN and DSTV. These two South African giant establishments represent massive economic interests in Nigeria. Senator Oshiomhole believes such retaliatory measures are necessary to compel the South African government to pay urgent attention to the unchecked lawlessness within its borders.

However, many Nigerians view this legislative suggestion as far too drastic, arguing that it should only ever be considered as a last resort. This caution stems from the reality that these multi-national firms employ thousands of Nigerian citizens. Shutting down their operations abruptly would inevitably inflict more economic injury on the very population the government seeks to protect, worsening the domestic unemployment situation.

The undeniable truth remains that the Nigerian authorities cannot continue to fold their arms while atrocities are committed against their citizens in the former apartheid enclave. Our countrymen and their businesses face existential threats daily in South Africa. The primary constitutional duty of any responsible government is the protection of the lives and property of its citizens, whether at home or abroad.

In times past, South Africa was at the mercy of the international community, and other African nations generously came to its aid. Today, it is deeply ironic and unfortunate that South Africans are the ones chasing away citizens of the very countries that sheltered them. The current hostility, which extends to cold-blooded murder and the arson of foreign-owned shops, is a complete betrayal of continental solidarity.

We firmly believe that this is not an indignity that Nigerians should continue to stomach. We call on the Federal Government in Abuja to deal with this recurring diplomatic crisis with all the seriousness and firmness it deserves. Standard diplomatic platitudes and routine condemnations have failed to yield results, meaning a more robust approach is now required.

We equally call on the African Union to intervene decisively in this situation. This crisis directly affects multiple member states, as citizens of Ghana and other African countries have also fallen victim to the hostility. The African Union must step up to resolve this matter permanently, as allowing a member nation to persistently violate the spirit of continental integration undermines the purpose of the union.

President Ramaphosa attributes the unfortunate developments to mere criminals and opportunists, but we must ask if that is all a head of state is supposed to say. What decisive judicial measures are the South African authorities taking to end these ugly incidents? After all, reports indicate that the two Nigerians who died were killed by the nation’s security forces, raising questions about whether the state itself is complicit.

If these perpetrators are South African citizens, the government must demonstrate that they are truly being treated as criminals under the law. It is imperative for the Nigerian government to sustain intense diplomatic pressure on the South African authorities to ensure justice is served. The African continent shares a common destiny, and its peoples must begin to see themselves as one brotherhood.

When South Africa needed liberation from the shackles of apartheid, Nigeria was at the forefront of the struggle. At a point, the giant of Africa structurally aligned its foreign policy to reflect Africa as its centrepiece. Salaries of Nigerian civil servants were deducted to fund the anti-apartheid struggle, and many South Africans received free university education in Nigeria, including former President Thabo Mbeki.

While we understand that severe economic pressures exist within South Africa, targeting foreign businesses is a counterproductive response. The businesses currently being destroyed are legitimate, tax-paying entities that actually employ South African youth. The Pretoria government must find a sustainable way to accommodate and protect legal migrants who contribute directly to the local economy.

South Africans frequently tell foreigners to return and build their own nations, but they must remember when those same foreign nationals helped build their nation in its hour of greatest need. A day may well come when South Africa will require the support of its neighbours once again. Let the former apartheid country rise to the occasion, embrace its history, and finally become its brother’s keeper.