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Soaring Debt Burden: ActionAid Nigeria Calls for Urgent Fiscal Reforms

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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

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Fresh Babcock graduate found dead in hostel, police begin investigation

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Fresh Babcock graduate found dead in hostel, police begin investigation

By: Zagazola Makama

The Ogun State Police Command has commenced investigation into the sudden death of a 20-year-old fresh graduate of Information Technology from Babcock University, Ilisan Remo.

Security sources told Zagazola Makama that the deceased, identified as Akawa Boluwatife Samuel, was brought to the Babcock University Teaching Hospital by his roommates on Wednesday and was confirmed dead by the medical doctor on duty.

Police detectives who visited the scene said one of the deceased’s roommates, Adili Leonard Chimdindu, disclosed that Boluwatife had complained of cold and difficulty in breathing on July 27, and was advised to visit the University Medical Centre.

According to him, they were on campus to complete their clearance process ahead of graduation, and the deceased had planned to return home soon.

He further stated that the deceased was in good spirits the previous night and played games on his laptop until around 11:00 p.m. He was, however, found unresponsive by morning.

Photographs of the deceased were taken, and the statement of his elder brother, Akawa Toluwanimi John, was recorded.

The body has been deposited at the university morgue for autopsy and preservation, while investigations are ongoing to determine the cause of death.

Fresh Babcock graduate found dead in hostel, police begin investigation

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Community leader decries terrorists’ occupation of 7 Plateau communities

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Community leader decries terrorists’ occupation of 7 Plateau communities

By: Michael Mike

The Waziri Mushere and community leader in Plateau, Chief Yohana Margif has raised alarm over terrorists’ current occupation of seven villages in Mushere community after displacing the inhabitants from their ancestral homes.

Margif in a statement issued on Friday, expressed his shock over the new development, and listed the occupied villages as Hokk, Kaban, Kadim, Nawula, Dulu, Mbor and Margif.

According to him, the seven communities, which are all in Mushere Chiefdom of Bokkos Local Government Area of Plateau state were recently attacked and ravaged by the terrorists, who killed many of the inhabitants and displaced thousands.

He said that for over three months now, the beleaguered communities had been under relentless terrorist attacks and siege, forcing them to flee their incestral homes to take shelter at Internally Displaced Persons’ (IDP) camps.

Margif said that the Fulani invaders, who have taken over their villages, are shockingly building their tents with their cattle gracing on their farms with impunity.

He noted that this was in spite of the state government’s claim that no part of the state was under terrorists’ occupation.

He said: “Am still in a state of shock by the governor’s claim that no part of Plateau State is under the control of bandit terrorists.

“My people have been forced to live in the wilderness at this critical period of the year when they are supposed to be in their farms.

“The terrorists who were previously called unknown gunmen are now known, as they have now set up tents in our lands on which their cattle are grazing, which is visible for everybody to see,” he said.

The Labour Party chieftain and gubernatorial hopeful, who lost his bid for the Plateau State governorship seat in the 2023 elections, stressed that terrorists who have built tents and are openly carrying guns around can no longer be regarded as unknown.

He said that the reality on ground contradicted the governor’s assertion as these communities have been practically and brazenly taken over by terrorists, who have usurped their lands and livestock.

“Enough is enough of this, government has abdicated its responsibility of protecting its citizens for too long.

“Now that the terrorists’ identity is known, let the relevant authorities direct the security agencies to go after them, so that our people can return to their ancestral homes.

“The Plateau State government must take immediate and decisive actions to restore peace and security of the communities because the people deserve protection, justice and the right to live in their ancestral homes without fear,” he emphasised.

Margif suggested that government should immediately direct security agencies to flush out the terrorists from the seven affected communities and smoke them out of their well-known sanctuaries in surrounding hills.

He also urged relevant authorities to take decisive steps to address the humanitarian challenges by providing relief to the distraught inhabitants who are currently taking shelter at lDP camps.

Community leader decries terrorists’ occupation of 7 Plateau communities

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Gombe Gov. urges corps members to support state devt

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Gombe Gov. urges corps members to support state devt

Gov. Inuwa Yahaya of Gombe State on Friday urged corps members deployed to the state to contribute meaningfully to its development during their service year.

He made the call while declaring open the 2025 Batch ‘B’ Stream I Orientation Course at the temporary NYSC orientation camp in Akko Local Government Area.

The governor represented by the Commissioner for Youth and Sports Development, Mr Inuwa Ibrahim, described corps members as critical stakeholders in nation-building.

Yahaya noted that the immediate past set of corps members had contributed significantly through community development projects, youth mentorship, and empowerment programmes.

“As you serve in Gombe State, I encourage you to be part of our developmental process, contributing to the transformation of our state and the empowerment of our youth.

“Your predecessors did well in nation-building, and it’s our collective responsibility to continue on this positive path,” he said.

He assured the corps members of a safe and conducive environment to enable them serve effectively and impact their host communities positively.

“Gombe State is a safe haven, and we guarantee a conducive working environment for your activities and programmes during your service year,” Yahaya added.

In her remarks, Mrs Chinwe Nwachuku, the NYSC State Coordinator in Gombe, urged the 940 corps members to participate actively in all camp activities as a foundation for their service year.

She encouraged them to adhere to camp rules, shun negative behaviour, and uphold the core values of the NYSC.

Nwachuku also appreciated the Gombe State Government, stakeholders, and residents for their continued support and commitment to the success of the NYSC scheme in the state.

Gombe Gov. urges corps members to support state devt

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