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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
Zulum Appoints Ali Baware Pioneer DG of Rural Access Road Authority
Borno State Governor, Professor Babagana Umara Zulum, has approved the appointment of Engr. Ali Abubakar Baware as the pioneer Director-General of the Borno State Rural Access Road Authority (RARA).
The Authority, which came into effect on 14th July 2026, is saddled with the responsibility of managing, developing, reconstructing, rehabilitating and maintaining Class D roads across the state, including ancillary infrastructure such as bridges and drainage.
In a statement by the Special Adviser to the Governor on Media, Dauda Iliya, Engr. Baware was the immediate past Acting Permanent Secretary in the Ministry of Works and Housing.
A seasoned engineer and administrator, Engr. Baware has held several administrative positions and is a member of professional bodies, including the Nigerian Society of Engineers (NSE), the Council for the Regulation of Engineering in Nigeria (COREN) and the Nigerian Institute of Civil Engineers.
The appointment is for a period of four years in the first instance.
Governor Zulum congratulated the Director-General on his appointment and charged him to deploy his wealth of experience and expertise to make the new agency functional.
Zulum Appoints Ali Baware Pioneer DG of Rural Access Road Authority
Korea Seeks Nigerian Manufacturing Shift, Urges Ratification of 20-Year Tax Treaty
…Ambassador calls for technology transfer, local production and investment beyond oil trade
By: Michael Mike
South Korea has urged Nigeria to restructure its trade relationship with the Asian country by shifting from crude oil exports and imports of manufactured goods to local production, technology transfer and investment in agriculture and industry.
Korean Ambassador to Nigeria, Jeong Yo-an, made the call on Wednesday in Abuja, saying the existing trade pattern had limited the potential of a bilateral relationship worth about $1.1 billion in 2025.
“Today, Nigeria sells us mostly oil and gas. Korea sells mostly cars, electronics and machinery. We can do much more than that,” he said.
Jeong identified local assembly, agricultural machinery production, digital skills, maritime services and emerging industries as priority areas for stronger cooperation.
He also urged Nigeria to ratify the double taxation agreement signed by both countries in 2006, saying the 20-year delay was affecting investor confidence.
He said predictable policies on foreign exchange, customs and taxation were necessary to attract long-term investments.
The ambassador cited the involvement of Korean companies in major Nigerian projects, including Daewoo Engineering and Construction’s work on the Nigeria LNG Train Seven project and the Indorama fertiliser plant. He also named Samsung, LG, Hyundai and Solpia among companies working with Nigerian partners in various sectors.
He encouraged Nigerian businesses to use the Korea Trade-Investment Promotion Agency (KOTRA) office in Lagos to establish links with Korean companies and explore opportunities in the Korean market.
The beauty and cosmetics industry, he added, offered prospects for local distribution, employment and partnerships, with Korean manufacturers expected to participate in the Beauty West Africa exhibition on November 13.
On development cooperation, Jeong said about 2,000 Nigerian government officials had received training in South Korea through the Korea International Cooperation Agency (KOICA).
He said KOICA’s Smart School project, implemented with the Universal Basic Education Commission, had reached about 8,000 pupils and trained more than 300 teachers and school administrators.
He also highlighted the Abuja Centre for Entrepreneurship, being developed in partnership with the Small and Medium Enterprises Development Agency of Nigeria and the United Nations Development Programme. Groundbreaking for the centre took place in September.
The facility is expected to provide young Nigerians with entrepreneurship training, mentorship and connections to finance and markets.
Jeong said Nigerian institutions would operate the centre, while a Training of Trainers programme would build local capacity to sustain its activities.
“A building alone does not create entrepreneurs,” he said, stressing the need to connect start-ups with investors, markets and private-sector operators.
He disclosed that KOICA was also working with the Food and Agriculture Organisation on agricultural initiatives aimed at creating green jobs for Nigerian youths.
Other areas of cooperation include digital development, postgraduate scholarships and government fellowships in information technology, public administration and health. The Nigeria-Korea Information Access Centre, established in Abuja in 2025, is also expected to strengthen digital literacy and access to technology resources.
The ambassador said future partnerships would place greater emphasis on private companies, start-ups and innovators, particularly in artificial intelligence, digital content and technology-based entrepreneurship.
He urged Nigeria to adapt lessons from South Korea’s development experience rather than attempt to replicate its model.
“The key word is not ‘copy’. The key word is ‘adapt’. Nigeria will write its own story. Korea is ready to share what we have learned,” he said.
On diplomatic relations, Jeong cited the 2024 Korea-Africa Summit in Seoul and the first Korea-Africa Foreign Ministers’ Meeting held in June as milestones in strengthening engagement.
He said South Korea welcomed Nigeria’s offer to host the seventh session of the Nigeria-Korea Joint Commission in Abuja.
He also disclosed that South Korea was working towards expanding its Official Development Assistance to $10 billion by 2030 and providing $14 billion in export financing to support Korean companies operating in Africa. The country is also planning to host the second Korea-Africa Summit in 2029.
The ambassador said cultural exchanges remained an important part of bilateral relations, disclosing that more than 300,000 people had participated in programmes organised by the Korean Cultural Centre Nigeria.
He said this year’s Korean Film Festival attracted about 1,000 participants, while the K-pop Festival in Lagos drew more than 400 young people. The 14th Korean Ambassador’s Cup Taekwondo Championship in Abuja also attracted about 350 athletes.
Jeong said the embassy planned to expand cultural activities to more Nigerian cities and universities and promote joint film and music productions. He disclosed that Nigerian creators had already produced two Korean-Nigerian drama productions.
He also pledged to support opportunities for Nigerian journalists to visit South Korea through media exchange programmes, including the World Journalists Conference.
The ambassador, a former military officer who served for 36 years before joining the diplomatic service, said he would focus on practical results during his tenure in Nigeria.
“The army taught me one simple lesson: trust is built when you keep your word. That is how I want to work in Nigeria – with more results,” he said.
Korea Seeks Nigerian Manufacturing Shift, Urges Ratification of 20-Year Tax Treaty
ECOWAS, Germany Open Strategic Dialogue as Berlin Commits €49m to West Africa
By: Michael Mike
The Economic Community of West African States (ECOWAS) and Germany have reaffirmed their commitment to strengthening bilateral cooperation, with Germany committing an additional €49 million to support regional development programmes for 2025 and 2026.
The commitment was highlighted during the opening of the strategic dialogue between ECOWAS and Germany in Abuja.
The Vice-President of the ECOWAS Commission, Anthony Ogunjimi, said the engagement marked a renewed approach to cooperation between the regional bloc and Germany, shifting from the traditional concept of consultation to a more strategic, open and constructive partnership.
He said the new strategic dialogue would provide an opportunity for both parties to deepen collaboration and address issues affecting regional development and the welfare of West African citizens.
Germany, which has been a partner to ECOWAS since 1985, has committed approximately €494 million in bilateral technical and financial cooperation over the years.
An additional €49 million was pledged for the 2025–2026 cooperation period during negotiations in November 2025.
The funding comprises €32.8 million for financial cooperation and €16.2 million for technical cooperation.
Ogunjimi, who spoke on behalf of the President of the ECOWAS Commission, Gen. Birame Diop, expressed appreciation to the German government for its longstanding partnership and support for the regional organisation and the people of West Africa.
The meeting was attended by the German Ambassador to Nigeria and ECOWAS, Stefan Rossel; a delegation from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), led by Karen Pfundt, Head of Division for West Africa II; representatives of the German development agency, GIZ; and directors and senior officials of the ECOWAS Commission.
The strategic dialogue is expected to provide a platform for reviewing existing cooperation and identifying areas for stronger collaboration between Germany and ECOWAS.
ECOWAS, Germany Open Strategic Dialogue as Berlin Commits €49m to West Africa
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Zulum Appoints Ali Baware Pioneer DG of Rural Access Road Authority
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