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Debt: Nigeria risks impending bankruptcy, says Obasanjo

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Former President Olusegun Obasanjo has said Nigeria risks impending bankruptcy over the continuous accumulation of debt by the government.

Obasanjo said things might get worse economically as Nigeria, as well as other African countries, kept piling up debts, saying he was worried for the future generations who would have to pay such loans.

The ex-President said this on Friday in Lagos as a keynote speaker at the “Why I am Alive” campaign.

The initiative, tagged ‘The Nigerian Story,’ had the founder of Trinity House, Pastor Ituah Ighodalo, as chairman of the Board of Advisors.

Presenting his speech, titled ‘Nigeria: The challenges of debt and sustenance of democracy,’ a copy of which was made available to our correspondent, Obasanjo said as at 2015, Nigeria’s total external debt was about $10.32bn.

By March 2019, the former President said the country’s external debt had increased to $81.274bn, noting that to service this current level of indebtedness, Nigeria must commit at least 50 per cent of its foreign earnings.

“Such a situation talks about an impending bankruptcy. No entity can survive while devoting 50 per cent of its revenue to debt servicing,” Obasanjo said.

“It has recently been pointed out that in 2018 that total debt servicing took over 60 per cent of government revenue. What’s more, we are not doing enough to address the fundamental, deep-seated and structural challenges that inhibit the expansion of our economy,” the ex-President added.

Obasanjo, who served twice as a democratic President of Nigeria between 1999 and 2007, said to worsen matters, the present government was currently seeking to add another $29.6bn loan to “our already overburdened debt portfolio.”

The President, Major General Muhammadu Buhari (retd), had recently submitted a loan request of $29.6bn to the National Assembly for infrastructural development.

Although several economic experts and Nigerians have knocked Buhari for the latest loan request, there are indications that the loan proposal will be approved by the legislature.

The Senate President, Dr Ahmad Lawan, and the Speaker of the House of Representatives, Mr Femi Gbajabiamila, have repeatedly said anything Buhari does is in the best interest of the country. Noteworthy, the Senate has already begun moves to accede to the request.

However, Obasanjo said although debt could be used to finance growth and/or development, he said it was a “double-edged sword” that must be wielded with a high degree of discipline, responsibility and foresight.

He said, “A well-calibrated debt for infrastructure and other developmental goals could be very positive. However, we do not need to speculate. We need to examine our historical experience.

“Everyone knows that our governments are notoriously deficient in serious and adequate discipline and most often lack competence and consistency as well.”

The ex-President said, for instance, the country borrowed to build a light rail in Lagos, embarked on the project, but a governor abandoned the project for his full term of four years at 65 per cent completion – when the country should have started paying down on the loan.

At the same time, the former President said there were bus terminals that were declared open but not used.

He said this type of situation was not in Lagos alone but in other states like Rivers and Cross River.

He further said, “The Federal Government built a nice looking extension to the Murtala Mohammed International airport that looks completed from outside but not in service.

“To rub ‘aboniki’ on the injury, some clowns are talking of demolishing the main airport and rebuild from scratch. Where on earth is a poor country wasting resources that way?”

Obasanjo said his fears were born out of his experience about jumbo loans “and my agony in getting rid of our external debts and developing a sustainable approach to address our domestic debts.”

He said, “It was a painstaking exercise that involved not just a national strategy but a continental and international one which eventually yielded significant gains.

“To now see all those efforts, go to waste barely less than 15 years after that watershed moment is more than disturbing. It is painful and retrogressive.

“Nigeria’s leadership was key in the campaign for debt relief in the late 90s/early 2000s. Our relapse into debt will be wrong, signalling to the rest of the continent and could be tantamount to backing the entire continent into another era of ‘highly-indebted poor countries.’”

Stating that it would be irresponsible to bequeath debt to future generations, Obasanjo said, “For once, all Nigerians need to rise up and shout in one voice and call on the National Assembly to rise up to its core duty and responsibility and save our children and our grandchildren and great-grandchildren from being mired in debt.

“Let us use other options. Saudi Arabia, I understand, will be raising over $20bn to finance projects through private equity. We can do likewise.

“We have several national assets that could be used to raise some of the funds that we need in this respect for infrastructural development to give assurance to private sector investors and PPP (Public-Private Partnership) investors, if necessary.”

Meanwhile, the ex-President said things would get worse when oil and gas that Nigeria relies on would no longer command premium demand as in the past.

He stated that 50 per cent of countries in Africa had discovered oil and gas in reasonable quantities and were offering more attractive terms to investors than Nigeria was offering and so the countries were drawing away “serious” investors from Nigeria.

He said, “There are even more discoveries outside of Africa that have given better attractions to international oil and gas investors. There are alternatives in the wind, solar and other forms of energy that are becoming cheaper by the day with ever-improving technology in these areas.

“The issue of climate change is daily making oil and gas less important than they had been up till now. Electric cars and solar-driven forms of means of mobility and transportation will make oil and gas more in the ground than being exploited for transportation.”

Punch


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Isi-Uzo Women Drum Support for Gov Mbah as Enugu First Lady Distributes Palliatives, Reassures on Women Empowerment

| By ORJI ISRAEL

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Nkechinyere Mbah
Nkechinyere Mbah, First Lady of Enugu State

Women of Isi-Uzo Local Government Area, LGA, Enugu State, have thrown their weights behind the reelection of the state governor, Dr. Peter Mbah, saying the women of the area have never had it so good.

The women pledged their support on Wednesday during the 2025 edition of Isi-Uzo Women Convention themed “Beyond Protest and Role of Women in Community Development.

Speaking at the event, which drew a mammoth crowd of women, traditional rulers, political leaders and stakeholders of the LGA, the convener and wife of the Council Chairman, Mrs. Onyinye Obeagu, commended Governor Mbah for prioritising grassroots development, adding that the governor’s wife had greatly impacted the women and children of Isi-Uzo through her charity outreach platform, Custos Care Foundation.

Nkechinyere Mbah of Enugu State at Isi-Uzo LGA
The women from Isi-Uzo LGA, Enugu State

“Isi-Uzo women have never benefited so much like this under any administration. We cannot thank our governor enough for all the projects going on across Isi-Uzo as well as some completed ones.

“We thank the Governor for the Type 2 Primary Healthcare Centres and Smart Green Schools either ongoing or completed in all the wards of Isi-Uzo.

“We thank the First Lady for all she has done in Isi-Uzo and across the state courtesy of the Custos Care Foundation. This Foundation has greatly impacted the health and welfare of our women and children. Therefore, we shall continue to give our unflinching support to this government,” she noted.

The Council Chairman, Barr. Obiora Obeagu, also extolled Mrs. Mbah for her motherly role in championing women’s development.

“Isi-Uzo stands firmly with Governor Peter Ndubuisi Mbah, as we work together to build a prosperous and inclusive Enugu State. Our mothers and daughters are the strength of our communities, and we thank you for standing by them,” he declared.

Barr. Obeagu assured the First Lady that his administration would continue to prioritise women empowerment, also ensuring that they were active partners in the development drive of the Council.

Responding, the Wife of the Governor, who was represented at the convention by Barr. Chidinmma Egonu, commended the women of Isi-Uzo for their industry and loyalty to the present administration and encouraged them to use the opportunity of the convention to create bonds, learn and develop capacity to unlock their many potential.

“I am deeply touched by the love and solidarity I have seen today in Isi-Uzo. Women are the heartbeat of every society, and this administration is committed to empowering you with opportunities in health, education, agriculture, and skills development,” she assured.

She further encouraged women to remain united and continue supporting the government’s vision.

“Together, we will build stronger families, stronger communities, and a stronger Enugu State. I celebrate your resilience today,” Mrs. Mbah concluded.

Speaking, Mrs. Mbah, who was represented by the Managing Director, Custo Care Foundation, Dr. Blessing Egodi, commended Governor Mbah for the improved security in the state and the women of Isi-Uzo for their resilience and prevailing peace in their communities.

Also speaking, the Executive Secretary, Enugu State Primary Healthcare Development Agency, Dr. Ify Ani-Osheku, commended the effort of the Chairman of Isi-Uzo Local Government Council on areas of health especially for enrolling 5,000 persons in the Health Insurance Scheme.

Dr. Ani-Osheku also enjoined the galaxy of women at the event to support the present administration in Enugu State and join in raising the bar of governance.

The highpoint of the convention was the distribution of empowerment packages and palliatives, including bags of rice, wrappers, and other household essentials to the women amidst chants of joy.

Women, especially widows, who received the items expressed gratitude to the First Lady, pledging to extend the goodwill to families across the LGA.

The event also featured colourful cultural dances, solidarity songs, and drama sketches by women groups showcasing the role of women in development.

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Angolan President João Lourenço Nominated for Nobel Peace Prize for Championing African Conflict Resolution

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President João Lourenço
Angolan President João Manuel Gonçalves Lourenço

Angolan President João Manuel Gonçalves Lourenço has been nominated for the Nobel Peace Prize in recognition of his significant contributions to peace and stability across Africa.

The nomination, submitted by respected Angolan academic and international policy analyst Afonso Botáz, highlights President Lourenço’s effective diplomacy in mediating regional conflicts and his commitment to national reconciliation and justice.

In his official submission, Botáz commended President Lourenço’s “firm commitment to resolving regional conflicts on the African continent, based on the principle of peace.”

This has been particularly evident in his role as the African Union (AU) Champion for Peace and Reconciliation.

President Lourenço’s diplomacy has been instrumental in de-escalating tensions and fostering dialogue between the Democratic Republic of Congo (DRC) and Rwanda, preventing a near-certain slide into confrontation.

His steady mediation has also been crucial in stabilizing the Central African Republic, where he coordinated with continental partners to avert a deeper political crisis.

“President Lourenço’s brand of diplomacy rests on dialogue and respect for the sovereignty of other States,” stated Afonso Botáz in his nomination letter. “His work reinforces a deep commitment to the pacification of regional conflicts. It is a quiet, effective diplomacy that builds calm step-by-step rather than through mere ceremony.”

The nomination also cites President Lourenço’s domestic agenda, which has prioritized national reconciliation, institutional repair, and historical justice, including advocacy for reparations for African people. According to Botáz, these efforts have been vital in “restoring confidence in state institutions” and have provided the foundation for Angola’s credible and respected voice on the international stage.

“If the Nobel Peace Prize is meant to reward the dedicated practice of peace, then President Lourenço’s record presents the kind of steady, trusted leadership that the continent and the world benefit from,” concluded Botáz.

About President João Lourenço João Manuel Gonçalves Lourenço, inaugurated on September 26, 2017, is the third President of the Republic of Angola. A former Minister of Defense, his presidency has focused on economic reform, strengthening democratic institutions, and positioning Angola as a key diplomatic force for peace and security in Africa.

Source:  Afonso Botáz

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Fasuyi Hails Tinubu’s Reforms as Nigeria Shifts Path, Takeaway From His  Arise Morning Show Interview

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President Bola Ahmed Tinubu
President Bola Tinubu

The story of Nigeria’s economy, once told in the language of imports, queues, and ballooning debt, is beginning to change.

At the heart of this shift, according to Asiwaju Olayinka Fasuyi, lies President Bola Tinubu’s insistence that the country must produce what it consumes.

Also in Ibadan, he spoke on Fasuyi, a management consultant, business school as the founder, and community leader-wove together a narrative that blended praise with a challenge. “When a country borrows to finance consumption, it mortgages its future,” he said. “But when borrowing is channelled into production and infrastructure, the nation prospers.”

He spoke against the backdrop of a debt profile standing at ₦149 trillion, 73 percent of it domestic. For decades, Nigeria borrowed heavily, often to fund consumption. That cycle, Fasuyi argued, “is being broken under Tinubu.”

Fuel he espoused tells the story best. “Nigeria, a producer of crude, long exported raw oil only to import refined products at great cost. The Dangote Refinery, now fully operational, has changed that equation. Filling stations once marked by endless queues are suddenly free, and refined petroleum is flowing not only across Nigeria but also into neighbouring markets. The savings are massive,”

This administration he noted deserved credit for tackling problems it did not create but addressing them head-on.

Agriculture, he stressed, is the next frontier. “If Nigeria consistently grows what it eats, the naira will stabilise, purchasing power will improve, and the economy will find firmer footing”.

Fasuyi did not dwell on economics alone. He told a wider story of Nigeria’s progress-population soaring from 63 million at independence to 230 million today; universities multiplying; infrastructure spreading; regions becoming 36 states. “We may not be where we desire,” he reflected, “but no society remains static. Growth is relative, and we have indeed moved forward.”

He challenged Nigerians to see governance as a partnership, not a spectator sport. With the Supreme Court’s ruling granting local governments financial autonomy, Fasuyi believed real change would come “if development starts from the bottom up. Communities hold enormous social capital. If tapped, it can transform Nigeria,”

On the World Bank, Fasuyi dismissed the notion of external sabotage. Loans, he insisted, “are not the problem-it is what nations do with them. China still borrows. The difference is discipline. Nigeria must follow suit,”

As he prepares to mark his 70th birthday in Ijesaland with nine days of cultural, spiritual, and developmental celebrations, Fasuyi frames his life milestone within Nigeria’s struggle for progress. With national life expectancy pegged at 62 years, he regards his own age as both a blessing and a mandate. “Attaining 70 is a dream fulfilled. My joy is to use this milestone to further champion inclusive and sustainable development,” he said.

For Fasuyi, Nigeria’s path is neither hopeless nor complete. His verdict is one of cautious optimism: with disciplined leadership, participatory governance, and a citizenry committed to production over consumption, the country is finally edging onto the right track.

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