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Nigeria’s Debt Service Ratio Falls To 65% As Tinubu Tackles Economic Woes

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In an effort to reduce Nigeria’s debt burden and stabilize the economy, President Bola Tinubu announced on Monday that the country’s debt service-to-revenue ratio has fallen from 97 to 65 percent over the 17 months since he took office.

Speaking at the swearing-in ceremony for seven new ministers at the State House, Abuja, Tinubu emphasized the government’s progress in stabilizing the economy despite challenging conditions.

READ MORE: Ibadan Man On Why He Used 76 Women For Ritual, Ate Others

“For us, it was a challenge when the nation was servicing its debt with 97 percent of its revenue. It was nothing but the edge of the cliff,” Tinubu said.

“But today, I can report to you that we have brought that down to 65 percent, and we have never defaulted in meeting all obligations, both foreign and domestic.”

His remarks follow Afreximbank’s recent projection that Nigeria’s debt service-to-revenue ratio could reach 110.4 percent by 2024.

Afreximbank’s 2024 Nigeria Country Brief warned of a troubling upward trend in debt servicing, which could see the ratio surge from 33.8 percent in 2017 to a projected 110.4 percent next year.

However, with continued reforms, the report suggested the ratio might decline to 62.6 percent by 2025.

In the first nine months of 2023, debt servicing consumed 66.9 percent (₦5.79 trillion) of Nigeria’s total revenue, a slight improvement from 99.3 percent (₦4.23 trillion) during the same period in 2022.

Tinubu, while optimistic about economic recovery, acknowledged the ongoing struggles faced by Nigerians due to a sharp increase in the cost of living triggered by recent economic reforms.

“We have taken the bull by the horns,” the President asserted. “We have stopped the scavengers. We will fully put an end to the profiteers and smugglers of our resources across the country. We are not shirking our responsibility; we are confronting it head-on.”

He further expressed confidence that Nigeria was on a “good path” toward recovery, emphasizing that the government remains committed to re-engineering the economy.

He cited the introduction of a new minimum wage as one measure aimed at mitigating rising living costs.

Monday’s ceremony also saw the swearing-in of seven new ministers, part of a recent cabinet reshuffle.

In two batches, ministers including Idi Maiha (Livestock Development) and Dr Jumoke Oduwole (Industry, Trade, and Investment) took their oaths.

The reshuffle, which saw 10 ministers reassigned, five discharged, and seven new appointments confirmed by the Senate, reflects Tinubu’s stated commitment to reshaping his cabinet to meet Nigeria’s evolving challenges.

As the administration continues to implement reforms, President Tinubu emphasized a long-term vision for economic sustainability, not only for the current generation but also for future ones.

“Despite the challenges, we must undertake the job of re-engineering and retooling this country’s economic path,” he said.

 

Politics

‘It’s a Lie’ — Wike’s Aide Debunks Peter Obi’s ‘No Shishi’ Claim

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Lere Olayinka, a media aide to the Minister of the Federal Capital Territory, Nyesom Wike, has challenged the perception that former Anambra State Governor and 2023 presidential candidate, Peter Obi, does not spend money in pursuit of political office.

Olayinka alleged that Obi gave money to delegates while seeking the presidential ticket of the Peoples Democratic Party (PDP) ahead of the 2023 general election.

ALSO READ: Peter Obi Demands Tinubu’s Resignation, Says Governance Has Collapsed

He made the allegation during an appearance on AIT’s Democracy Today programme on Friday, while responding to a question on whether politics was a business for Wike.

According to Olayinka, politicians should stop pretending that money does not play a role in Nigerian politics, arguing that candidates routinely spend money during consultations, party primaries and election campaigns.

“One of the issues with most of us Nigerians, we like to pretend, politics is business. Don’t let us pretend. It’s a service but you can only serve when you get to power,” he said.

Olayinka, who said he contested a House of Representatives seat in 2023, noted that spending money was also part of the political process at the primary election stage.

“Why do politicians spend money? Will anybody tell me why politicians in this country, even outside Nigeria, in US, everywhere; don’t they spend money to campaign? They spend money to seek election,” he said.

Speaking specifically about Obi, Olayinka rejected the narrative that the former governor does not give money during political engagements.

“For instance, we have read that the candidate of NDC, Peter Obi, does not spend shishi. It’s a lie,” Olayinka said.

He claimed to have personally witnessed Obi distributing money to delegates when he was still seeking the PDP presidential ticket.

“I was a delegate in Ekiti when he was in PDP before going to Labour Party. He came to Ekiti. He dropped money for delegates. From the money he dropped, they gave me my own in 2022,” he said.

Olayinka, however, acknowledged that the amount Obi allegedly gave may have been smaller than what some other presidential aspirants offered.

“The money might be smaller than what other people gave, but he gave money,” he said.

Obi later left the PDP and contested the 2023 presidential election on the platform of the Labour Party.

Ahead of the 2027 presidential election, Obi has moved to the Nigerian Democratic Congress (NDC), while several opposition figures continue to position themselves for another challenge against President Bola Tinubu.

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2027: Obi Has No Chance Against Tinubu Without Opposition Alliance — Okonkwo

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Kenneth Okonkwo, spokesperson for the Atiku Abubakar presidential campaign, has warned that Peter Obi may not be able to defeat President Bola Tinubu in the 2027 presidential election if he contests without a broader opposition alliance.

Okonkwo made the statement during an interview with Ibeju Upgrade Media, amid renewed efforts by opposition figures to form a coalition ahead of the 2027 elections.

According to him, a united opposition front remains the only realistic strategy for defeating Tinubu at the polls.

ALSO READ: Presidency Clears Air on Tinubu’s US Court Case

He argued that Obi would face difficulties securing enough support in Northern Nigeria if he chooses to contest against Tinubu alone.

“Coalition is the only way out,” Okonkwo said, while referring to Tinubu’s political approach and his previous comments about the nature of political power.

He further dismissed the possibility of Obi defeating Tinubu on his own, even if former Kano State Governor Rabiu Kwankwaso joins him as running mate.

“So, if Peter Obi goes against Tinubu alone, Tinubu will eat him like biscuits,” Okonkwo said.

He questioned whether Obi would receive sufficient support in Kano, noting that the former Anambra State governor did not secure the state in the 2023 presidential election.

“Will Kano people accept Peter Obi? In 2023, when we had the opportunity, they did not accept him. In 2027, they will not accept him,” he added.

Okonkwo also played down Kwankwaso’s political influence, claiming that the former Kano governor had lost some of his strength, including in his home state.

“Kwankwaso has nothing to contribute to the ticket. Even in Kano, Kwankwaso has lost,” he said.

His comments come as opposition politicians continue discussions over the possibility of forming a coalition ahead of the 2027 presidential election.

 

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Osun Accord, Adeleke Strategise for Legislative Elections

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The Osun State chapter of the Accord Party has cautioned its members against anti-party activities in the forthcoming National and State Assembly elections.

A government house statement released in Osogbo on Wednesday added that the party warned that all members must support Accord candidates at the polls.

Rising from a closed door stakeholders’ meeting, the party noted several reports of Accord members allegedly backing candidates from PDP, APM, APP and even APC, directing that those members or leaders caught in such acts will face severe disciplinary actions.

The meeting presided over by Governor Ademola Adeleke passed a resolution that all disagreements over selection of legislative candidates should be resolved and the party must unite behind the candidates already fielded by the party.

Under no circumstances should any Accord member be caught sponsoring or working for legislative candidates of other political parties. Such behaviour will not be tolerated, the stakeholders meeting resolved.

READ ALSO: Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

The meeting further directed a small committee to work on constituencies where such abnormalities are noted and take appropriate measures to stop the menace and even sanction the culprits if they persist in such anti-party conduct.

The Accord leadership in the state was also directed to activate monitoring actions to identify those involved in such conduct and call them to order as urgently as possible.

Meanwhile, Gov Adeleke used the Forum to register his gratitude to party members for their steadfast support during the turbulent electioneering process.

“I am deeply grateful to our party members for their depth of loyalty and courageous disposition throughout the democratic struggle. Osun people trusted us and they fought for us under the divine direction of God Almighty.

“We praise God Almighty, the courageous people of Osun state, the electoral commission and you, our loyal party members and leaders. I will remain steadfast in my commitment to the people, the party and God almighty.

“I task us to support our party candidates in the forthcoming legislative elections. We must avoid anti-party activities. Severe sanction awaits any party member who works against the candidates of the party.

“I have also tasked our candidates to reach out to all segments of the party. We must run an inclusive campaign. All shades of opinion must be mobilised for resounding success in future elections”, the governor admonished leaders at the stakeholders’ forum.

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