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Dwindling revenue: Buhari government to embark on another borrowing spree

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4 years ago

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From Monday to Thursday, the House of Representatives Committee on Finance had an interactive session with revenue-generating agencies on the Medium Term Expenditure Framework (MTEF).

President Muhammadu Buhari had forwarded the 2022-2024 MTEF to the National Assembly for approval. However, what is alarming is that the government is proposing a deficit of N5.2trillion, which will be financed through borrowing.

The MTEF is a rolling plan of three years, which contains macroeconomics projections for the three years under review. The MTEF projection is crude oil benchmark price of $57 per barrel for 2022, crude oil production of 1.88 million barrels per day, and a dollar exchange rate of N410.15 to one US dollar.

At the public hearing, the Chairman of the Committee, James Faleke, appeared to be on the quest to search for money to reduce the proposed deficit and cut the borrowing down.

On Thursday, while speaking to the Nigerian Ports Authority (NPA), he warned that the committee will cut any capital projects by any agency to free more revenue for the government.

Most revenue-generating agencies increase their capital expenditure to reduce their operating surplus which they are supposed to remit to the government.

“The major problem we have is revenue. The MTEF we have now is to borrow N5.2trillion. If we discover that any of your capital projects is not necessary, we will push it to revenue,” Faleke had said.

Agencies like the NPA, Nigerian Communications Commission (NCC), and others have been asked to increase their revenue collection, while the Federal Inland Revenue Services (FIRS) Chairman, Mohammed Nami, told the committee that social media companies like Twitter, Facebook and others will be included in the tax bracket and also planned to introduce road tax.

As revenue continues to dwindled and expenditure continues to rise, Buhari administration continues to resort to borrowing, which is increasing the debt profile of the state and increasing money spent on debt servicing.

For the ongoing 2021 budget, according to the Minister of Finance, Zainab Ahmed, N5.81trillion has been released so far for the 2021 budget, but N2.02trillion was to service debt.

In the proposed 2022 budget estimate of N13.09trillion expenditure, N3.60trillion will go into debt servicing, while the government will be borrowing another N5.22 trillion.

Borrowing 800 billion to fund supplementary budget

In July, the National Assembly passed the supplementary budget, however, out of the N982.7billion approved, the government is planning to borrow N802.1 billion from the Nigerian financial market.

The implication is that the government will be borrowing 80% of the said supplementary budget.

Buhari’s borrowing

As of June 2015 when President Buhari came in, the debt profile of Nigeria, according to the Debt Management Office, was N12.18trillion (Federal, states and FCT)

As of March 31st, the DMO pegged the borrowing at N33.1 trillion. The federal government alone has about N26 trillion of the profile of the entire loan.

This was before the country embarked on the N802.2 billion supplementary budget borrowing.

It would be recalled that in July, the National Assembly approved the borrowing of $6.1 billion loan request by the administration.

Lekan Olaleye, an Economist who spoke with DAILY POST, said the problem is not the debt, but the poor revenue generation and expenditure that has been increasing exponentially.

“Borrowing can help to bridge the gap in infrastructure as the government is claiming, of course, that is true. What is the economic viability of the projects? Can they refund the loans? Will future generations partake in the project. The point is, loans are like a future burden, it will be shifted to generation unborn. If you are giving them a liability, are you bequeathing assets?

“On the revenue aspect, the government’s revenue is struggling to keep up with the expenditure. In the 2022 MTEF, which is a rolling plan, the government is proposing N6.2trillion as recurrent expenditure and N3.60 as debt servicing. Mind you, there is a deficit of over N5 trillion. The implication is that the government is only projecting to generate about N8 trillion for the 2022 fiscal year. In fact, projected revenue is about an estimate, which the government may end up not meeting.

“If you look at the parameters in the MTEF, the oil benchmark is $57 per barrel. The government cannot control the price of oil, it could crash at any point in time. COVID-19 is on the rise, what happens in case of another lockdown? Will FIRS be able to meet up with its target?”

Despite the alarming rate of the increase in the debt profile, the National Assembly continues to approve the loans request of the government.

Also, the government is yet to implement the Steve Oransanye’s report despite promising to implement the report which will help to reduce the cost of governance.

Culled from the Daily Post News Nigeria

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Africa

U.S. Signals More Strikes in Nigeria as Abuja Confirms Joint Military Campaign

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1 month ago

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December 27, 2025

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The United States has warned that further airstrikes against Islamic State targets in north-western Nigeria are imminent, as Nigerian officials confirmed that recent attacks were part of coordinated operations between both countries.

The warning came hours after U.S. forces struck militant camps in Sokoto State, an operation President Donald Trump publicly framed as a response to what he described as the killing of Christians in Nigeria. U.S. Defense Secretary Pete Hegseth said the strikes were only the beginning.

“The president was clear last month: the killing of innocent Christians in Nigeria (and elsewhere) must end,” Hegseth wrote on X. “The Pentagon is always ready, so ISIS found out tonight—on Christmas. More to come. Grateful for Nigerian government support & cooperation.”

Nigeria’s foreign minister, Yusuf Tuggar, confirmed on Friday that the strikes were carried out as part of “joint ongoing operations,” pushing back against earlier tensions sparked by Trump’s public criticism of Nigeria’s handling of insecurity.

The airstrikes followed a brief diplomatic rift after Trump accused Nigeria’s government of failing to protect Christians from militant violence. Nigerian officials responded by reiterating that extremist groups in the country target both Christians and Muslims, and that the conflict is driven by insurgency and criminality rather than religious persecution.

Speaking to Channels Television, Tuggar said Nigeria provided intelligence support for the strikes in Sokoto and described close coordination with Washington. He said he spoke with U.S. Secretary of State Marco Rubio for nearly 20 minutes before briefing President Bola Tinubu and receiving approval to proceed, followed by another call with Rubio to finalize arrangements.

“We have been working closely with the Americans,” Tuggar said. “This is what we’ve always been hoping for—to work together to combat terrorism and stop the deaths of innocent Nigerians. It’s a collaborative effort.”

U.S. Africa Command later confirmed that the strikes were conducted in coordination with Nigerian authorities. An earlier statement, later removed, had suggested the operation was carried out at Nigeria’s request.

Trump, speaking in an interview with Politico, said the operation had originally been scheduled for Wednesday but was delayed at his instruction. “They were going to do it earlier,” he said. “And I said, ‘Nope, let’s give a Christmas present.’ They didn’t think that was coming, but we hit them hard. Every camp got decimated.”

Neither the U.S. nor Nigerian authorities have disclosed casualty figures or confirmed whether militants were killed. Tuggar, when asked whether additional strikes were planned, said only: “You can call it a new phase of an old conflict. For us, this is ongoing.”

Nigeria is officially a secular state, with a population split roughly between Muslims and Christians. While violence against Christian communities has drawn increasing attention from religious conservatives in the United States, Nigeria’s government maintains that extremist groups operate without regard to faith, attacking civilians across religious lines.

Trump’s public rhetoric contrasts with his 2024 campaign messaging, in which he cast himself as a “candidate of peace” who would pull the United States out of what he called endless foreign wars. Yet his second term has already seen expanded U.S. military action abroad, including strikes in Yemen, Iran, and Syria, as well as a significant military buildup in the Caribbean directed at Venezuela.

On the ground in Sokoto State, residents of Jabo village—near one of the strike sites—reported panic and confusion as missiles hit nearby areas. Local residents said no casualties had been recorded, but security forces quickly sealed off the area.

“As it approached our area, the heat became intense,” Abubakar Sani told the Associated Press. “The government should take appropriate measures to protect us. We have never experienced anything like this before.”

Another resident, farmer Sanusi Madabo, said the night sky glowed red for hours. “It was almost like daytime,” he said. “We only learned later that it was a U.S. airstrike.”

For now, both Washington and Abuja are projecting unity. Whether the strikes mark a sustained shift in strategy—or another brief escalation in a long war—remains unclear.

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Africa

Nigeria–Burkina Faso Rift: Military Power, Mistrust, and a Region Out of Balance

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2 months ago

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December 14, 2025

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The brief detention of a Nigerian Air Force C-130 Hercules aircraft and its crew in Burkina Faso may have ended quietly, but it exposed a deeper rift shaped by mistrust, insecurity, and uneven military power in West Africa. What was officially a technical emergency landing quickly became a diplomatic and security flashpoint, reflecting not hostility between equals, but anxiety between unequally matched states navigating very different political realities.

On December 8, 2025, the Nigerian Air Force transport aircraft made an unscheduled landing in Bobo-Dioulasso while en route to Portugal. Nigerian authorities described the stop as a precautionary response to a technical fault—standard procedure under international aviation and military safety protocols. Burkina Faso acknowledged the emergency landing but emphasized that the aircraft had violated its airspace, prompting the temporary detention of 11 Nigerian personnel while investigations and repairs were conducted. Within days, the crew and aircraft were released, underscoring a professional, if tense, resolution.

Yet the symbolism mattered. In a Sahel region gripped by coups, insurgencies, and fragile legitimacy, airspace is not merely technical—it is political. Burkina Faso’s reaction reflected a state on edge, hyper-vigilant about sovereignty amid persistent internal threats. Nigeria’s response, measured and restrained, reflected confidence rooted in capacity.

The military imbalance between the two countries is stark. Nigeria fields one of Africa’s most formidable armed forces, with a tri-service structure that includes a large, well-equipped air force, a dominant regional navy, and a sizable army capable of sustained operations. The Nigerian Air Force operates fighter jets such as the JF-17 and F-7Ni, as well as A-29 Super Tucanos for counterinsurgency operations, heavy transport aircraft like the C-130, and an extensive helicopter fleet. This force is designed not only for internal security but for regional power projection and multinational operations.

Burkina Faso’s military, by contrast, is compact and narrowly focused. Its air arm relies on a limited number of light attack aircraft, including Super Tucanos, and a small helicopter fleet primarily dedicated to internal counterinsurgency. There is no navy, no strategic airlift capacity comparable to Nigeria’s, and limited logistical depth. The Burkinabè military is stretched thin, fighting multiple insurgent groups while also managing the political consequences of repeated military takeovers.

This imbalance shapes behavior. Nigeria’s military posture is institutional, outward-looking, and anchored in regional frameworks such as ECOWAS. Burkina Faso’s posture is defensive, reactive, and inward-facing. Where Nigeria seeks stability through deterrence and cooperation, Burkina Faso seeks survival amid constant internal pressure. That difference explains why a technical landing could be perceived as a “serious security breach” rather than a routine aviation incident.

The incident also illuminates why Burkina Faso continues to struggle to regain political balance. Repeated coups have eroded civilian institutions, fractured command structures, and blurred the line between governance and militarization. The armed forces are not just security actors; they are political stakeholders. This creates a cycle where insecurity justifies military rule, and military rule deepens insecurity by weakening democratic legitimacy and regional trust.

Nigeria, despite its own security challenges, has managed to avoid this spiral. Civilian control of the military remains intact, democratic transitions—however imperfect—continue, and its armed forces operate within a clearer constitutional framework. This stability enhances Nigeria’s regional credibility and amplifies its military superiority beyond hardware alone.

The C-130 episode did not escalate into confrontation precisely because of this asymmetry. Burkina Faso could assert sovereignty, but not sustain defiance. Nigeria could have asserted its capability, but chose restraint. In the end, professionalism prevailed.

Still, the rift lingers. It is not about one aircraft or one landing, but about two countries moving in different strategic directions. Nigeria stands as a regional anchor with superior military power and institutional depth. Burkina Faso remains a state searching for equilibrium—politically fragile, militarily constrained, and acutely sensitive to every perceived threat from the skies above.

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Lifestyle

Kaduna Governor Commissions Nigeria’s First 100-Building Prefabricated Housing Estate

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3 months ago

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November 14, 2025

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Kaduna, Nigeria – November 6, 2025 — In a major milestone for Nigeria’s housing sector, the Governor of Kaduna State has commissioned a 100-unit mass housing estate developed by Family Homes and executed by Karmod Nigeria, marking the first-ever large-scale prefabricated housing project in the country.

Completed in under six months, the innovative project demonstrates the power of modern prefabricated construction to deliver high-quality, affordable homes at record speed — a sharp contrast to traditional building methods that often take years.

Each of the 100 units in the estate is designed for a lifespan exceeding 50 years with routine maintenance. The development features tarred access roads, efficient drainage systems, clean water supply, and steady electricity, ensuring a modern and comfortable living environment for residents.

According to Family Homes, the project represents a new era in Nigeria’s mass housing delivery, proving that cutting-edge technology can accelerate the provision of sustainable and cost-effective homes for Nigerians.

“With prefabricated technology, we can drastically reduce construction time while maintaining top-quality standards,” said a spokesperson for Family Homes. “This project is a clear demonstration of what’s possible when innovation meets commitment to solving Nigeria’s housing deficit.”

Reinforcing this commitment, Governor Uba Sani of Kaduna State emphasized the alignment between the initiative and the state’s broader vision for affordable housing.

“The Family Homes Funds Social Housing Project aligns with our administration’s commitment to the provision of affordable houses for Kaduna State citizens. Access to safe, affordable and secure housing is the foundation of human dignity. We have been partnering with local and international investors to frontally address our housing deficit,” he said.

Also speaking at the event, Mr. Ademola Adebise, Chairman of Family Homes Funds Limited, noted that the project embodies inclusivity and social progress.

“The Social Housing Project also reflects our shared vision of inclusive growth, where affordable housing becomes a foundation for economic participation and improved quality of life.”

Karmod Nigeria, the technical partner behind the project, utilized its extensive expertise in prefabricated technology to localize the process, employing local artisans and materials to enhance community participation and job creation.

Industry experts have described the Kaduna project as a blueprint for future housing initiatives nationwide, capable of addressing the country’s housing shortfall more efficiently and sustainably.

With this pioneering development, Kaduna State takes a leading role in introducing modern housing technologies that promise to reshape Nigeria’s urban landscape.

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