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Govt borrowings not necessarily bad – DMO

Ezechukwu Malachy by Ezechukwu Malachy
March 24, 2022
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By Uche Amadi

The Debt Management Office (DMO), has stated that borrowing by governments to finance budget deficits and critical infrastructure is not necessarily bad.

Mrs. Patience Oniha,  the Director-General of DMO said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.

She spoke on the sideline of an awareness programme on security issuance organised by her office.

Oniha said that government borrowings were done by all countries across the world, mostly to finance critical infrastructure.

According to her, the multiplier effects of  quality infrastructure on a country’s economy cannot be quantified.

She said that successive Nigerian governments have had to recourse to borrowing to fund budget deficits, adding that annual budgets would be affected if funds were not raised to support them.

“The issue of debt has become topical in Nigeria that sometimes it almost looks as if borrowing is an offence or a crime.

“The first thing we must understand is that countries across the world borrow, be it poor countries, advanced countries , developed countries,  emerging markets. They all borrow.

“We usually hear complaints that debt levels are rising in Nigeria.  Globally,  debt levels are rising, not just in Nigeria, ” she said.

The Director-General said that the advent of COVID-19 had also made borrowing imperative for some countries.

“What has happened with COVID-19 is that countries needed to spend more,  not only on health needs but on social needs as well,  because we need to take  care of people who are losing their jobs.

“We  need to create incentives for the private sector to continue operating in order to avoid a big recession because most countries experienced recession.

“We did as well, but we came out of it after two quarters.  Government spending is one of the tools you can use properly to exit recession.

“In  Nigeria, we borrow to finance budget deficits, sometimes we borrow to finance specific projects and services like railways and airports.  Financing infrastructure is an economy itself. It creates jobs across all sectors.

“We also borrow to finance maturing loan obligations like the Federal Government of Nigeria (FGN) bonds and Nigeria Treasury Bills,” she said.

According to her, there are statutory laws that regulate borrowings by governments at the various levels,  and also prevent abuse of the process.

“The Fiscal Responsibility Act  states that borrowing should be for capital purposes and for human capital development. The DMO Act is also clear,  especially on external borrowings.

“No arm of government can borrow on its own. It has to conform with those provisions and pass through the Federal Executive Council and the National Assembly.

“There is also a fiscal responsibility for the state governments to ensure that the reforms at the centre also happen in the states, ” she said.

 NAN reports that some stakeholders in Nigeria have been complaining  about the country’s rising debt stock.

The DMO had recently said that the country’s total debt stock as at December, 2021 was N39.55 trillion.

It also said that the debt stock was likely to hit N45 trillion in 2022,  as the government planned to borrow additional N6.39 trillion to finance the 2022 budget deficit.

Oniha had explained that the overall deficit in the 2022 budget was N6.30 trillion, representing 3.46 per cent of the country’s Gross Domestic Product (GDP).

She said that the budget deficit was to be financed mainly by borrowings from both domestic and foreign sources, as well as privatisation proceeds.

“About N2.57 trillion will come from domestic sources, N2.57 trillion from foreign sources, N1.16 trillion from multilateral and bilateral loan drawdowns and N90.7 billion from privatisation proceeds,’’ she said.

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2027: ADC draws battle line as attacks on opposition continue, accuses, Tinubu, INEC of silence 

by Myke Uzendu
September 21, 2026
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By Myke Uzendu, Abuja  The African Democratic Congress (ADC) has accused, President Bola Tinubu, the All Progressives Congress (APC) and the Independent National Electoral Commission (INEC) of remaining silent in the face of escalating attacks, intimidation and disruption of opposition political activities ahead of the 2027 general elections.  The party also accused the Nigerian Police of failing to adequately protect opposition members and demanded public accounts of investigations into reported incidents of political violence.  Speaking at a press conference in Abuja at the party's National headquarters on Monday, the ADC National Publicity Secretary, Mallam Bolaji Abdullahi, said the party had documented incidents involving attacks on political meetings, destruction of party property, assault on participants and threats against citizens because of their political affiliations.  He said the incidents, which the party claimed occurred between July 2025 and September 2026, had been recorded in states including Kaduna, Kebbi, Ekiti, Cross River, Rivers, Edo, Osun, Kogi and Enugu.  Abdullahi said the circumstances and responsibility for the incidents had not been conclusively established in every case but argued that their reported frequency and the response of law enforcement agencies raised concerns about the conditions under which the 2027 elections would be conducted.  He said the party was particularly concerned about what he described as the failure of relevant authorities to provide updates on investigations into previous attacks.  According to him, an attack on the ADC secretariat in Benin City, Edo State, in February, as well as reported gunshots at the residence of former Edo State governor and former APC National Chairman, Chief John Odigie Oyegun, during a political gathering, had yet to result in publicly known arrests or prosecutions.  Abdullahi said the Edo State Police Command had confirmed the attack on the ADC secretariat and announced an investigation but alleged that no publicly known conclusion had emerged from the process.  He also cited a recent incident in Rivers State, where he alleged that ADC members preparing for a political meeting in Community Ward One, Odua Local Government Area, were attacked, resulting in the death of a party member identified as Kamadiyoi.  The spokesman said the incident had been reported to the police and called for investigation and prosecution of those responsible.  He also referred to alleged attacks on opposition gatherings in Enugu and Kogi states, claiming that some ADC members were injured in the incidents.  Abdullahi said the party expected security agencies to investigate allegations against both private individuals and any public officials found to have facilitated or failed to prevent attacks.  “What we are saying is that a record of repeated violence against lawful political activity demands serious government response, which we are not seeing,” he said.  The ADC spokesman questioned whether the apparent lack of effective response meant that the government was unable to prevent political violence or was tolerating it.  He also criticised what he described as threatening rhetoric from some members and supporters of the ruling party, citing several statements attributed to APC-linked political figures.  Abdullahi said the party had taken note of subsequent explanations or apologies in some cases but argued that security authorities should establish whether any such statements amounted to threats or incitement.  He said the ADC was not calling for retaliation, stressing that the party had instructed its candidates and members to avoid violence, hate speech and rhetoric capable of deepening ethnic or religious divisions.  “We are not crying out. ADC is not even saying, ‘Please help us’. ADC is putting records straight that this cannot continue,” he said.  He nevertheless warned that continued attacks without visible accountability could increase tensions and make it more difficult for political parties to restrain their supporters. ...

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