Nigeria's borrowing continues despite increased revenue and reform efforts
via Punch Nigeria12 min read
Despite President Bola Tinubu's September 2025 declaration that Nigeria had met its revenue target and would no longer rely on borrowing, official figures indicate a different reality. Nigeria's total public debt reached N159.28tn by the end of 2025, an increase of N14.61tn from N144.67tn at the end of 2024. This rise occurred even as gross FAAC revenue increased to N37.44tn in 2025 from N29.45tn in 2024. The Federal Government accounted for N146.76tn of the total public debt in 2025. Domestic borrowing contributed more to the increase in 2025, rising by N10.47tn compared to an N4.14tn increase in external debt. The World Bank noted that while Nigeria's debt-to-GDP ratio was projected to fall, the naira value of debt remains high, and new borrowing is still needed to fund the budget. The 2026 Appropriation Act, signed in April 2026, allocated N15.8tn to debt servicing and necessitated a revised borrowing plan of N29.20tn. President Tinubu has repeatedly sought approval for new loans, including a $21bn external borrowing plan for 2025–2026, a $2.3bn external loan in October 2025, a N1.15tn domestic loan in November 2025, and additional external loans of $6bn in March 2026 and $516m in April 2026. Experts like Aliyu Ilias, a development economist, and Dr. Olusegun Omisakin, Chief Economist at the Nigerian Economic Summit Group, expressed concerns about the utilization of borrowed funds and the impact on inflation, while Muda Yusuf, CEO of the Centre for the Promotion of Private
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Must ReadThe Nigerian Army has confirmed the arrest of Private Mohammed Yusuf, a soldier declared wanted for allegedly supplying military accoutrements to terrorist and criminal elements. He was apprehended by troops of 7 Provost Group, Operation Hadin Kai, at Jidari Bus Stop, Maiduguri, on July 25, 2026, while reportedly attempting to flee to Cameroon. According to Captain Muhammed Goni, acting Military Information Officer, Northeast Joint Taskforce Operation Hadin Kai, Private Yusuf, 23NA/84/1939, absconded from his unit on July 7, 2026, and went into hiding in Maiduguri. He had been declared wanted by the Nigerian Army on July 23, 2026, for these allegations. The Army stated that his arrest highlights the effectiveness of intelligence-driven operations and their commitment to holding personnel accountable. Private Yusuf is currently in custody, and further investigation is ongoing to determine the full scope of his activities and identify any accomplices. The Army emphasized its resolve to maintain professionalism and integrity in counter-insurgency operations and urged the public to continue providing credible information to security agencies.
The Federal Government has approved an upward review of hazard allowances and other benefits for members of the Non-Academic Staff Union of Educational and Associated Institutions NASU in federal universities. This new remuneration package, effective retrospectively from January 1, 2026, follows an agreement between the Federal Government and NASU on June 29, 2026. The approval, conveyed in a circular from the National Salaries, Incomes and Wages Commission, increases the annual laboratory hazard allowance for senior employees by N126,000, bringing it to N486,000 for workers on CONTISS 6-15. For employees on CONTISS 1-5, the annual hazard allowance rises by N63,000 to N243,000. Responsibility allowances for senior non-teaching officials also saw increases; registrars and bursars will now receive N840,000 annually, while directors, who previously had no such allowance, will receive N600,000 annually. Deputy registrars, deputy bursars, and deputy directors will receive N480,000 annually. Allowances for field trips, teaching practice, industrial supervision, and the Students Work Experience Programme were also reviewed upwards. Additionally, an annual uniform and protective wear allowance of N80,000 was introduced for laboratory, workshop, and studio personnel across all CONTISS levels. The circular also stated that the Provision Tools Allowance has been absorbed into the Consolidated Non-Teaching Tools Allowance, and Project Supervision Allowance will no longer apply. The Exces
Must ReadThe plan for Nigerian opposition parties to unite behind a single presidential candidate to challenge President Bola Tinubu in the 2027 election is facing challenges, with various factions adopting different stances. While a Tanimu Turaki-led faction of the Peoples Democratic Party PDP remains open to the idea, a Nyesom Wike-backed PDP faction has ruled out any alliance. Similarly, the camp of former Vice-President Atiku Abubakar stated that opposition parties have already produced their candidates but are committed to working together. The All Progressives Congress APC has dismissed the opposition's proposal as ineffective against President Tinubu's re-election bid. An April 25 summit in Ibadan saw opposition leaders resolve to work together and explore a single candidate, with attendees including former Senate President David Mark, Tanimu Turaki, Hakeem Baba-Ahmed, and others. However, many of these leaders have since emerged as presidential or vice-presidential candidates for various parties, such as Atiku Abubakar and Rotimi Amaechi for the African Democratic Congress ADC, and Peter Obi and Rabiu Kwankwaso for the Nigeria Democratic Coalition NDC. The National Publicity Secretary of the Turaki-led PDP, Ini Ememobong, emphasized that a single candidate remains a viable strategy, stating that no single opposition party can win alone. Conversely, the Wike-backed PDP, through its National Publicity Secretary Jungudo Mohammed, denied any alliance, asserting the party's focus o