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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
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Northern Governors Declare Support for FG’s Plan to Restore 4 million Hectares of Degraded Land
Northern Governors Declare Support for FG’s Plan to Restore 4 million Hectares of Degraded Land
By: Michael Mike
Governors of the 19 Northern States have declared suppprt for the Federal Government’s plan to restore 4 million hectares of degraded land in the region by 2030.
Speaking in Abuja during the endorsement and validation of the first phase of the developed catchment management plans (SCMP) by the Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) project
stakeholders, Gombe State Governor and Chairman of Northern Governor’s Forum, Muhammadu Inuwa Yahaya said: “Your Excellencies, ladies and gentlemen, we are pleased with the progress of the ACReSAL project in the beneficiary states, particularly its multi-sectoral approach to desertification control, landscape management, community livelihoods, resilience, and institutional strengthening.
“The ACReSAL project has contributed to creating a healthy and eco-friendly environment for human habitation through dryland management practices, which include gully stabilization, bioremediation, and afforestation activities.
“I would like to reiterate our commitment to supporting the ACReSAL project in achieving the Federal Government’s goal of restoring 4 million hectares of degraded land for broader landscape restoration by 2030.”
He added that: “As part of this initiative, we have, with the support of ACReSAL, planted over 4 million trees in Gombe State for instance over the past four years through our flagship program, Gombe Goes Green.”
Yahaya said: “On behalf of the 19 beneficiary states and the FCT, I want to express our profound gratitude to the Federal Ministries of Environment, Water Resources and Sanitation and the Ministry of Agriculture and Food Security for their technical support in the development of the Strategic Catchment Management Plans generally.
“Additionally, I would like to sincerely commend the WorldBank Task Team Leader on ACReSAL, Dr. Joy Iganya Agene, along with the Bank’s specialists and the ACReSAL National Project Coordinator, Dr. Abdulhamid Umar, and his team for facilitating the development of this vital document.”
On his part, the Minister of Environment, Mallam Balarabe Lawal, while recognising that it was the first time the Government of Nigeria will be developing Strategic Catchment Management Plans of such magnitude, said: “I must also mention that the 20no. strategic catchment management plans being bankrolled by the Federal Government would create the platform and structure into which another set of 200 micro catchment management plans from the 19 ACReSAL participating states and the FCT will dovetail into.”
He disclosed that: “These micro catchment management plans would be developed by ACReSAL at state project management units, under the guidance of the Governors of the 19 ACReSAL States and the Honourable Minister of the FCT.”
Minister of State for Agriculture and Food Security, Senator Sabi Abdullahi noted that: “Since the inception of ACReSAL, it has become a cornerstone in the ministry’s efforts to bolster the agricultural sector against climate-related challenges across communities. Within the ministry, the project has catalyzed several transformative projects, notably, the ‘Nigerian Farmers Soil Health Card Scheme’.
“Through sustainable land and water management practices, thousands of hectares of degraded land have been reclaimed, ensuring they are once again productive. The ministry has also leveraged ACReSAL to develop a climate-smart agriculture manual that will equip farmers with the tools and knowledge to adapt to changing weather patterns while maintaining productivity. The 19 northern states and FCT, home to Nigeria’s most vulnerable semi-arid regions, have been direct beneficiaries of ACReSAL’s initiatives.”
Northern Governors Declare Support for FG’s Plan to Restore 4 million Hectares of Degraded Land
Three Key bandits Leaders, several leaders killed in a deadly rival clash in Kastina
By: Zagazola Makama
A deadly violent clash between rival bandit factions erupted on Tuesday in the Safana Local Government Area of Katsina State, resulting in the death of key leaders and heightened security concerns in the region.
The confrontation, involving the Yan Kambari group and followers of the late notorious bandit leader, Usman Modi Modi, led to heavy casualties and the seizure of livestock belonging to Harisu, a known associate of one of the factions.
The Yan Kambari group reportedly launched the attack on Harisu’s residence, sparking a deadly confrontation that claimed the lives of several bandit leaders, including: Nasiru Bosho, Bala Yatsa and Audu Mankare, who succumbed to gunshot injuries sustained during the clash.
Nasiru Bosho is a notorious leader of bandit operations in Safana LGA and heading the Dogon Marke Camp, who was overseeing weapons previously held by Usman Modi Modi, Bala Yatsa was known for his role in the killing of Usman Modi Modi while Audu Mankare who sustained a gunshot wound in the chest during the engagement, is believed to have succumbed to his injuries shortly after the incident.
More infighting is expected to unfold as both groups are warming up to carry out reprisal.
Three Key bandits Leaders, several leaders killed in a deadly rival clash in Kastina
KACRAN National President commends Potikum LG Chairman
By: Yahaya Wakili
The National President of the Kulen Allah Cattle Rearers Association of Nigeria (KACRAN), Hon. Khalil Mohammed Bello, has commended the executive chairman of the Potiskum local government area, Yobe State, Hon. Salisu Muktari, for providing herders of Potiskum local government with water points.
Hon. Khalil Bello made the commendation when he and his entourage visited the chairman in the council chamber in continuation of the association community-to-community peace sensitization campaign in the state.
“In addition to his previous excellent performances with regards to providing his pastoralists with water points, the executive chairman promised to provide more water points for Potiskum local government herders in the 2025 fiscal year,” Bello said.
The national president called on pastoralists in the Potiskum local government area and its environs to continue to live in peace with one another by avoiding the destruction of anybody’s farmlands.
According to him, the sensitization is part of the proactive measures taken by the association to prevent herder and farmer conflicts in the state and the nation in general.
He reinstated the need for harders not to destroy farmlands during the ongoing harvesting period, adding that pastoralists and farmers are partners in progress.
Hon. Khalil Mohammed Bello acknowledges the government’s commitment under the able leadership of Governor Mai Mala Buni CON towards ending the premium crises between farmers and cattle rearers in the state.
He also appreciates the warm reception and the hospitality accorded him and members of his entourage by the executive chairman of the council, Hon. Salisu Muktari, and the people of Potiskum town and its surroundings.
The National President urged the other local government executives chairmen to emulate the executive chairman of Potiskum local government, Hon. Salisu Muktari, to provide water points to herders in their respective local government areas.
Speaking earlier, the executive chairman of the Potiskum local government area, Hon. Salisu Muktari, assured the readiness of the local government council towards supporting the association to achieve its desired objectives.
The chairman pledged to construct more water points for pastoralists in the area and called on the KACRAN leadership to identify the point where the water facilities will be constructed.
KACRAN National President commends Potikum LG Chairman
Northern Governors Declare Support for FG’s Plan to Restore 4 million Hectares of Degraded Land
Three Key bandits Leaders, several leaders killed in a deadly rival clash in Kastina
KACRAN National President commends Potikum LG Chairman
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