News
Soaring Debt Burden: ActionAid Nigeria Calls for Urgent Fiscal Reforms
Soaring Debt Burden: ActionAid Nigeria Calls for Urgent Fiscal Reforms
By: Michael Mike
ActionAid Nigeria has called for urgent fiscal reforms to address the soaring public debt which has risen to N134 trillion and pushed debt burden to N620,000 per citizen.
The organisation in a press statement on Saturday, said it is deeply alarmed by Nigeria’s escalating public debt, which now stands at an unprecedented N134.297 trillion as of June 2024, according to figures from the Debt Management Office (DMO).
It decried that this staggering debt has grown by nearly N13 trillion in just three months—a rate of nearly 11%—placing a burden of approximately N619,501 on each Nigerian citizen, a figure that far exceeds the recently approved minimum wage of N70,000. Without immediate intervention, Nigeria risks falling into a full-blown debt crisis.
It said this debt burden, driven primarily by large-scale borrowing, underscores a critical need to reassess Nigeria’s fiscal policies. While infrastructure development is crucial, the cost of these projects should not come at the expense of Nigerians’ access to basic services. With a population of over 216 million, this unsustainable trajectory has led to widespread concerns about the impact on poverty, healthcare, education, and overall quality of life.
ActionAid said Nigeria’s public debt profile is divided between N63 trillion in external debt and N71.2 trillion in domestic debt. The Federal Government holds the bulk of this debt, accounting for N55.8 trillion externally and N66.9 trillion domestically, while states collectively owe N7.1 trillion in external and N4.2 trillion in domestic debt. Lagos State carries the heaviest domestic debt burden at N885.99 billion, followed by Rivers State at N389.20 billion. These figures reveal a stark fiscal imbalance, indicating that both federal and state governments must re-evaluate their spending priorities and debt management practices.
It noted that “the impact of this debt extends beyond mere statistics; it represents a substantial barrier to essential services for the Nigerian people. Despite high debt levels, millions of Nigerians lack access to adequate healthcare, education, clean water, and poverty relief. Many families struggle to meet their daily needs, and with every citizen effectively saddled with a debt obligation of almost N600,000, urgent fiscal action is required to protect and uplift Nigeria’s most vulnerable populations.
“The removal of the subsidy was intended to free up significant resources, with the promise that these funds redirected to all tiers of government and drastically cutting down the country’s dependence on borrowing. However, as the nation’s public debt continues to soar, the question arises: where is the money from the fuel subsidy savings going?”
It insisted that: “If managed effectively, the funds from the subsidy removal should not only reduce the need for further loans but also enhance fiscal stability by enabling better investment in education, healthcare, and poverty reduction programs.
“These funds must be managed with full accountability and transparency, ensuring they are invested efficiently in ways that directly benefit the most vulnerable citizens. Without strict oversight and clear reporting on the allocation and impact of these funds, there is a risk they could be mismanaged or diverted to wasteful projects, leaving the promise of the subsidy removal unfulfilled and worsening the country’s financial situation.”
The statement signed by Country Director, ActionAid Nigeria Andrew Mamedu, further read that: “Nigeria’s debt-to-GDP ratio has now surpassed 50%. This marks a significant shift in the country’s fiscal landscape, highlighting the growing strain on the economy. While Nigeria has long maintained that its relatively low debt-to-GDP ratio allowed room for increased borrowing, the rapid rise in debt now limits the country’s ability to secure additional funding without exacerbating its fiscal challenges.
“The increasing debt burden, coupled with a high debt service-to-revenue ratio, threatens to undermine the government’s ability to invest in essential services, leaving the nation vulnerable to further economic instability. To prevent a full-blown debt crisis, Nigeria must adopt a more sustainable fiscal approach, curbing excessive borrowing and prioritising efficient allocation of resources to foster long-term economic growth.
“We recommend a reduction in the allowances of high-ranking government officials, including legislators and ministers, as a symbolic and practical step toward more responsible governance. By cutting these expenses, Nigeria can free up critical funds to address pressing social needs in education, healthcare, and poverty reduction.
“Beyond these cuts, ActionAid Nigeria urges a complete overhaul of fiscal policies to prioritise the needs of Nigeria’s poorest and most marginalised populations. Our current fiscal trajectory not only stifles economic growth but also risks worsening inequality and social unrest. With essential public services consistently underfunded, Nigeria’s per capita debt burden has reached a level that is both unsustainable and unacceptable.
“To alleviate the debt crisis, the government must diversify its revenue streams and adopt more progressive taxation measures. We urge the government to reform its taxation system, ensuring that wealthier individuals and corporations contribute their fair share, rather than over-relying on regressive taxes that disproportionately affect lower-income Nigerians. Additionally, the elimination of wasteful expenditures beyond salaries is necessary to build a robust, inclusive economy that works for all.”
It added that: “While the Federal Government carries a substantial portion of the debt, states like Lagos and Rivers are also burdened with high debt levels, highlighting regional fiscal disparities. The Federal Government must acknowledge these disparities and ensure that fiscal policies consider the unique economic realities of each state. A truly inclusive development plan must equitably distribute resources and opportunities across all regions of Nigeria.
“Nigeria’s mounting debt is not merely a result of borrowing; it is symptomatic of systemic governance issues, including inefficiency and mismanagement. ActionAid Nigeria calls for a transparent and accountable approach to borrowing and spending practices, particularly in implementing infrastructure projects. Every naira borrowed must be spent effectively, with a direct positive impact on Nigerians.
“This transparency is crucial for rebuilding public trust and demonstrating a commitment to responsible governance.
Nigeria’s growing debt signals an unsustainable economic path that urgently needs correction. To avert a worsening debt crisis, the Nigerian government must adopt a people-centered approach to development, prioritising human welfare over infrastructure projects that do not directly benefit the nation’s most marginalized citizens.”
It however said it remains committed to advocating for policies that promote the welfare of Nigeria’s most vulnerable and calls on the government to reorient its fiscal strategies to secure a sustainable, inclusive future.
Soaring Debt Burden: ActionAid Nigeria Calls for Urgent Fiscal Reforms
News
Zulum commissions remodelled ‘2nd chance school’ for vulnerable girls
Zulum commissions remodelled ‘2nd chance school’ for vulnerable girls
.Disburses N1bn to SMEs in 5 LGAs
By: Our Reporter
Borno State Governor, Professor Babagana Umara Zulum, on Thursday commissioned a fully remodelled “Second Chance School” for vulnerable girls and women in Biu Local Government Area.

The newly inaugurated facility is part of a strategic initiative designed to offer adult women, including those who missed formal education or dropped out of school due to prevailing challenges, a pathway to self-reliance.
The school’s curriculum is tailored towards providing comprehensive skills’ acquisition, critical digital knowledge and basic literacy, and numeracy training.

With the Biu centre now operational, Zulum’s administration has established three such schools across the state, with existing centres already operational in Maiduguri and Bama.
Meanwhile, Governor Zulum has disbursed N1 billion to small and medium-scale enterprises (SMEs) across five local government areas in southern Borno.
The targeted LGAs include Biu, Hawul, Shani, Bayo and Kwaya-Kusar, with the funds intended to support entrepreneurs and enhance business sustainability.
Zulum explained that the direct injection of capital into the SME sector is essential for driving grassroots development and fostering self-reliance in the post-insurgency recovery phase.
In a related development aimed at tackling youth restiveness and promoting social stability, Governor Zulum has ordered immediate employment of 200 young individuals from the Biu Local Government Area.
After the inauguration, Zulum visited Biu Specialist Hospital where he announced the immediate and automatic employment of a number of dedicated volunteer health workers who have served tirelessly.
He also inspected the 100-unit teachers’ housing estate under construction in Biu town. The estate is part of the Borno State Government’s motivational strategy to attract and retain qualified teaching professionals in public schools.
Governor Zulum has also directed immediate commencement of rehabilitation work on the Borno State Hotel Annexe in Biu.
Zulum commissions remodelled ‘2nd chance school’ for vulnerable girls
News
Environment Minister Calls for Inter-Agency Collaboration to Address Environmental Challenges
Environment Minister Calls for Inter-Agency Collaboration to Address Environmental Challenges
By: Michael Mike
The Minister of Environment, Balarabe Abbas Lawal, has urged enhanced inter-agency collaboration to tackle environmental challenges across Nigeria.
The call was made during a meeting with the Director-General of the National Hydro-Electric Power Producing Areas Development Commission (N-HYPPADEC), Abubakar Sadiq, and his team at the Ministry’s Abuja office.
Highlighting potential areas of cooperation, Lawal emphasized the importance of climate-resilient water supply and sanitation (WASH) programs aimed at ensuring year-round access to safe, reliable, and clean water in communities affected by dam operations. He noted that such collaboration would not only improve access to safe drinking water but also reduce the prevalence of water-borne diseases in these areas.
On energy initiatives, the Minister discussed the distribution of clean cooking stoves to households in hydro-basin communities, stressing that this would significantly reduce household energy poverty, deforestation, and emissions through the adoption of energy-efficient cooking technologies.
Other proposed collaboration areas between the Ministry and N-HYPPADEC include erosion and flood management, ecosystem restoration, climate-resilient afforestation programs, youth and community engagement, job creation, and public awareness campaigns.
In his remarks, Abubakar Sadiq described N-HYPPADEC as a strategic partner of the Federal Ministry of Environment, outlining the commission’s impactful interventions across water supply, sanitation, housing, youth empowerment, water transport safety, and institutional strengthening. He also commended the Ministry for its prompt response to flood-prone areas, erosion challenges, and pollution management.
N-HYPPADEC maintains offices in Lokoja, Birnin Kebbi, Ilorin, Lafia, Jos, Gombe, Jalingo, Makurdi, Kaduna, with its headquarters in Minna, Niger State.
Environment Minister Calls for Inter-Agency Collaboration to Address Environmental Challenges
Health
Health Worker Exodus Deepens as Policy Brief Warns of Systemic Risk to Nigeria’s Healthcare Sector
Health Worker Exodus Deepens as Policy Brief Warns of Systemic Risk to Nigeria’s Healthcare Sector
By: Michael Mike
A new policy brief has warned that unless urgent welfare-focused reforms are implemented, the country risks a deepening crisis that could undermine access to quality healthcare nationwide.
Nigeria’s healthcare system is facing mounting pressure as the steady departure of doctors and nurses continues to erode service capacity, raising concerns about long-term system viability.
According to the policy analysis authored by health policy expert Dr Emmanuel Ejimonu, of the Athena Centre for Policy and Leadership, more than 42,000 nurses left Nigeria between 2021 and early 2024, while thousands of Nigerian-trained doctors have registered to practise abroad, particularly in the United Kingdom. The trend shows no sign of slowing, as survey data cited in the report indicate that nearly three-quarters of medical and nursing students intend to seek employment overseas, with about one in three expressing no plans to return.
The report attributed the exodus largely to domestic welfare and governance challenges rather than professional ambition. Health workers interviewed consistently pointed to low and irregular salaries, unsafe and overstretched working environments, limited opportunities for funded specialist training and weak social protection systems. These challenges, the brief notes, have made emigration a rational choice in the face of institutional uncertainty, especially as global demand for health professionals continues to rise.
Although the Federal Government introduced a National Policy on Health Workforce Migration in 2023 to promote ethical recruitment and retention, the brief argues that its impact has been limited. Implementation gaps, inadequate funding and uneven execution at state and facility levels have prevented the policy from delivering meaningful improvements in working conditions.
The consequences of sustained health worker losses are already visible. Teaching hospitals are reportedly struggling to maintain specialist training and mentorship programmes, while recurring strikes highlight growing mistrust between health workers and government authorities. Economically, the country is losing returns on public investments in training, even as staff shortages compromise care delivery in both urban and rural facilities. Remaining workers also face rising burnout, further fuelling migration intentions.
Drawing on international experiences from countries such as Ghana, Kenya, the Philippines and Cuba, the policy brief stresses that health worker migration cannot be completely stopped. Instead, it recommends managing mobility through welfare-based retention strategies and credible governance structures.
Central to the recommendations is a proposed Welfare-First Retention Package, which prioritises guaranteed and timely payment of salaries, improved workplace safety, funded career progression, fair bonding arrangements and strengthened social protection. The package also calls for disciplined use of bilateral agreements and ethical recruitment frameworks to protect Nigeria’s investment in health worker training.
The brief estimates that, if properly funded and implemented, the proposed measures could reduce short-term health worker attrition by up to one-third within two years, while significantly improving retention over a five-year period.
The report stated that reversing the health workforce crisis will require treating welfare reform as a core economic and governance priority, backed by political will, fiscal discipline and strong institutional coordination. Without such action, the report warns, Nigeria risks the gradual hollowing out of its healthcare system, with far-reaching consequences for public health and national development.
Health Worker Exodus Deepens as Policy Brief Warns of Systemic Risk to Nigeria’s Healthcare Sector
-
News2 years agoRoger Federer’s Shock as DNA Results Reveal Myla and Charlene Are Not His Biological Children
-
Opinions4 years agoTHE PLIGHT OF FARIDA
-
News9 months agoFAILED COUP IN BURKINA FASO: HOW TRAORÉ NARROWLY ESCAPED ASSASSINATION PLOT AMID FOREIGN INTERFERENCE CLAIMS
-
Opinions4 years agoPOLICE CHARGE ROOMS, A MINTING PRESS
-
News2 years agoEYN: Rev. Billi, Distortion of History, and The Living Tamarind Tree
-
ACADEMICS2 years agoA History of Biu” (2015) and The Lingering Bura-Pabir Question (1)
-
Columns2 years agoArmy University Biu: There is certain interest, but certainly not from Borno.
-
Opinions2 years agoTinubu,Shettima: The epidemic of economic, insecurity in Nigeria
