Afenifere, the pan-Yoruba socio-cultural organisation, has called on southwest governors to get ready to take serious action against the influx of bandits into their region.

The organisation said this in a statement by its National Publicity Secretary, Jare Ajayi, in Ibadan, the Oyo State capital.

This is coming days after Seyi Makinde, the Oyo State Governor, disclosed that bandits are infiltrating his state.

Makinde said, “During a security briefing this morning, I learned that some bad elements from the North-West are relocating here due to military heat in their zones.”

Sharing his personal experience, the governor said when he observed his quiet birthday ceremony at Fashola near Oyo Alaafin in December 2024, he got a report that bandits camped two kilometres away from the area he was.

“During my birthday retreat in Fashola, bandits had camped less than two kilometres from where I was staying. This underscores the seriousness of the situation,” he said.

Reacting to this, Afenifere said such a revelation from a state governor should not be handled with levity.

The group, therefore, called on the six governors in the region to “as a matter of urgency, hold a meeting to map out strategies to expel the bandits from the region and to ensure that such elements do not infiltrate Yorubaland at any time again.

“For these objectives to be achieved, there is the need to carry certain groups along. These are the security agencies that will implement whatever security decisions are reached, traditional rulers and heads of local vigilantes known as ‘Ode.’”

While calling on traditional leaders in the region not to keep quiet on the matter, Ajayi urged the governors to include functional, up-to-date equipment in their strategies to combat the bandits and map out strategies to expel them from the region.

• President orders probe into killing of soldiers

The Federal Government would not hire mercenaries to fight terrorism and banditry in the North, Foreign Minister Ambassador Yusuf Tuggar said yesterday.

He explained that engaging mercenaries, which are private armies, to tackle insecurity is unsustainable.

Chief of Defence Staff (CDS) Gen. Christopher Musa also recently ruled out the use of mercenaries, saying the nation’s military is capable of fighting and winning the battle.

Tuggar made the clarification at the State House, Abuja, during a joint news conference with his Chinese counterpart, Wang Yi.

The Chinese foreign minister is in Nigeria on a visit to strengthen bilateral ties.

Noting the limitations of deploying private military companies for security tasks, the minister said fully equipped Nigerian security agencies can meet the challenge.

He called for collaboration with China in domesticating the production of military equipment to eliminate delays associated with foreign procurement.

“Private military companies, no matter where they are coming from, are not the solution to tackling the country’s security challenges,” Tuggar said.

Following the renewed sporadic terrorist attacks in the North, there have been calls for foreign mercenaries, which were once deployed by the Goodluck Jonathan administration.

New terror groups, including Lakurawa, have sprang up, wrecking havoc on towns and villages in the Northwest and Northeast.

On January 4, some suspected terrorists attacked the Army Forward Operation Base (FOB) in Damboa, Borno State. The troops in retaliation killed no fewer than 46 terrorists.

President Bola Ahmed Tinubu yesterday commiserated with the military and families of the slain soldiers.

He ordered an investigation into the attack.

Tuggar said the war against terror can be won if nations collaborate.

He highlighted Nigeria’s leadership role in fostering peace and security within the region and across the continent.

Tuggar said: “Nigeria has consistently proved effective in leading other countries in our region, and I would even say on the continent at large, in addressing challenges to peace and security.”

The minister emphasised the importance of partnerships that involve Nigeria directly in the process, describing China as a reliable ally.

He added: “This is why we work well with countries like China. Where we have a problem is whenever Nigeria is left out of such arrangements.”

Tuggar also stressed the need to prioritise local production of military equipment to ensure efficiency.

He said: “We want to work with countries like China in domesticating the production of military equipment, both kinetic and non-kinetic. This is what we’re looking for, so that we don’t have to go out looking to procure because of the delays and so many rules and regulations. We need to be able to produce locally.”

The minister described Nigeria as a responsible country operating within its constitutional framework, adding that the commitment to law and order has earned the country the confidence of other nations.

Tuggar pointed out that the Chinese minister’s visit  would build on the success of the Forum on China-Africa Cooperation (FOCAC) in 2024 and President Bola Ahmed Tinubu’s recent state visit to China.

He explained that  discussions with the Chinese delegation focused on mutual interests in economic and political spheres, as well as agreements signed in various sectors, including energy, communications, agriculture, finance, transportation, infrastructure, and petrochemicals.

Tuggar added: “We will continue to work with countries such as China in addressing these challenges and rely on them to help ensure that private military companies and external interference remain outside.”

Tinubu orders probe into soldiers’ killing

Yesterday, President Tinubu ordered a probe into the killing of six soldiers during the attack on the Sabon Gida military base in Damboa, Borno State.

Presidential Adviser on Information and Strategy Bayo Onanuga said in a statement that the president had also directed security agencies to intensify military operations by taking the war to the terrorists.

He said the President extended his heartfelt condolences to the families of the fallen soldiers, describing their sacrifice as a cornerstone of the fight for security.

“Their sacrifice in defending our nation will forever be honoured and remembered,” he said.

Praising the Armed Forces for their swift response, President Tinubu also lauded the military’s air component for its decisive retaliatory strikes, which neutralised many terrorists and destroyed their assets as they attempted to escape.

He said: “This resolute action by the Army demonstrates the capability and readiness of our military to confront and defeat threats to our nation’s security. Their actions testify to our resolve to eradicate terrorism and banditry, paving the way for a future where peace and security prevail for all Nigerians.

 “Your sacrifices and dedication do not go unnoticed, and we stand firmly behind you in this ongoing fight to eliminate these threats.”

President Tinubu also appealed to Nigerians and the media to support the military in its efforts to restore peace across the country.

He said: “Together, we can support our security forces in achieving the peace and security our nation deserves.”

Debt servicing consumed 47 per cent of the Federal Government’s total expenditure in the first nine months of 2024, The PUNCH reports.

An analysis of data from the Central Bank of Nigeria’s latest quarterly statistics bulletin highlights the growing burden of debt repayment obligations and its implications for Nigeria’s fiscal sustainability.

In the first nine months of 2024, the Federal Government spent N8.94tn on debt servicing, a sharp increase of 56.8 per cent from N5.69tn in the corresponding period of 2023.

The debt costs accounted for nearly half of the N18.97tn total expenditure for the period, compared to 42 per cent of the N13.57tn spent in 2023.

The rising debt servicing ratio reflects Nigeria’s increasing dependence on borrowing to fund its budgetary operations, particularly as fiscal deficits continue to widen.

The debt-to-revenue ratio further underlines the severity of the situation. In 2023, the Federal Government’s retained revenue of N4.32tn meant that debt servicing accounted for 132 per cent of revenue during the period.

This figure worsened in 2024, when debt servicing consumed 147 percent of the N6.08tn retained revenue.

This trend indicates that Nigeria is borrowing not just to finance its expenditure but also to service existing debts, a fiscal trajectory that raises serious concerns about sustainability.

Recurrent expenditures, which include personnel costs, pensions, transfers, and debt servicing, rose sharply by 45.6 per cent from N10.38tn in 2023 to N15.11tn in 2024.

Personnel costs increased by 20 per cent from N2.99tn to N3.59tn over the same period, reflecting the government’s continued commitment to maintaining public sector salaries despite fiscal challenges.

Overhead costs, including MYTO and service-wide votes, surged by 51.4 per cent from N589.63bn in 2023 to N892.85bn in 2024, while transfers more than doubled from N711.36bn to N1.31tn, representing an 83.8 per cent rise.

However, pensions and gratuities experienced a marginal decline, falling from N339.66bn in 2023 to N336.61bn in 2024.

Despite the government’s attempts to allocate more funds for infrastructural development, the increase in capital expenditure was relatively modest compared to recurrent spending.

Capital spending rose by 20.8 per cent from N3.19tn in 2023 to N3.86tn in 2024, a significant amount but still far overshadowed by the recurrent and debt servicing costs.

The disproportionate allocation of funds highlights how rising debt obligations continue to crowd out critical capital investments, further exacerbating Nigeria’s infrastructure deficit and limiting economic growth potential.

The fiscal deficit widened from N9.25tn in the first nine months of 2023 to N12.89tn during the same period in 2024, marking a 39.3 per cent increase.

This growing deficit highlights the persistent gap between government revenue and expenditure, compounded by escalating debt servicing costs.

With such a large share of revenue allocated to debt repayment, the government’s capacity to fund public services, infrastructure, and other developmental projects is increasingly constrained.

In his national broadcast to mark Nigeria’s 64th Independence Anniversary, President Bola Tinubu boasted that his administration reduced the debt service ratio from 97 per cent to 68 per cent.

Tinubu also said his administration is committed to stopping the vicious cycle of overreliance on borrowing for public spending and the resulting stress on managing scarce government resources caused by debt service.

He noted the country could not continue to service its debt with 90 per cent of its revenue, as this was a recipe for destruction.

However, CBN data shows that the ratio worsened to 147 per cent in the first nine months of 2024.

The global credit ratings agency, Fitch, earlier projected Nigeria’s external debt servicing to rise by $400m to $5.2bn in 2025.

Regarding external debt, the agency said external financing obligations through a combination of multilateral lending, syndicated loans, and potentially commercial borrowing would raise the servicing from $4.8bn in 2024 to $5.2bn in 2025.

This was despite the current administration’s insistence on focusing more on domestic borrowings from the capital market.

Analysts at Cowry Research earlier noted that there is no immediate relief for Nigeria’s debt levels and debt service costs.

“Financing costs are expected to continue consuming a larger portion of the Federal Government’s revenues, while the local currency remains weak against the dollar and the interest rate environment remains tight, reflecting the Central Bank’s monetary tightening measures,” they said.

Speaking earlier with The PUNCH, the President of the Nigerian Economic Society, Prof Adeola Adenikinju, said, “There is little we can do regarding our debt servicing. This is an obligation that we owe, and it will do a lot of damage to our image if we don’t pay. That is a consequence of past years of mismanagement and dependence on debt to run the government.”

He lamented that most of the time, the government does not meet up with the provisions for capital expenditure in the budget.

Adenikinju added, “Even when they say N48tn, you can be assured that they are not going to spend that.”

He noted that spending on debt servicing will not yield any positive benefit for the Nigerian economy.

“It is sad because debt service will not do anything positive for the economy. It is not going to improve infrastructure. It is not going to enhance economic growth. It is not going to yield any significant positive effect on the economy. We have been wasteful in the past, and that is the consequence we have to deal with now,” he said.

Also, the Chief Executive Officer of the CFG Advisory, Tilewa Adebajo, earlier said that Nigeria needed to commence debt negotiation talks with its creditors.

Adebajo noted that the country’s debt servicing now exceeded recurrent and capital expenditures, which put the country in a position where it used the majority of its revenue to service debt.

The PUNCH earlier reported that the International Monetary Fund said that Nigeria allocates the majority of its revenue to debt servicing, leaving limited funds for critical development projects.

Speaking during the Fiscal Monitor press briefing at the IMF/World Bank Annual Meetings in Washington DC, Davide Furceri, Division Chief of the IMF’s Fiscal Affairs Department, emphasised the need for Nigeria to adopt more effective revenue mobilisation strategies to ease this financial burden.

Furceri noted that Nigeria’s debt service-to-revenue ratio stands at around 60 per cent, significantly constraining the government’s ability to invest in social and economic programmes.

He stressed that the country must further reduce the share of its revenue allocated to debt repayments by focusing on broadening its tax base.

He said, “There is a need to grow the revenue-to-GDP ratio.  For a country Like Nigeria, the Debt Service-to-Revenue is about 60 per cent. What that means is that a larger part of the revenue of the country goes into debt servicing.  What we recommend for countries like Nigeria, if they can improve their revenue mobilisation, they will be able to reduce the portion of the revenue that goes into debt servicing.

“It is important to broaden the tax base in order to have more revenue and especially in Nigeria to put in place a system and mechanism that is transparent and efficient to assist the government in collecting more revenue.”

He called for the implementation of a transparent and efficient tax collection system, urging the government to improve its fiscal operations to generate more income.

The PUNCH recently reported that Tinubu called on world leaders to prioritise debt forgiveness for Nigeria and other developing countries from creditors and multilateral financial institutions.

The President also asked the United Nations to commit to multilateralism by deepening relations among member states, which aligns with the principles of inclusivity, equality, and cooperation.

This was during the General Debate of the 79th Session of the United Nations General Assembly at the UN headquarters in New York, United States.

Represented by Vice President Kashim Shettima at the high-level annual global event, the President said countries of the global South would not make meaningful economic progress without special concessions and a review of their current debt burden.

Nigeria’s electricity generation has continued to hover around an average of 4,500 megawatts despite the country securing loans totalling over $3.23bn in about four years from international financial institutions.

Global institutions such as the World Bank, the African Development Bank, and the Japan International Cooperation Agency have supported the power sector with billions of dollars in loans, but many parts of Nigeria still suffer incessant blackouts.

These funds were approved to finance various projects to address the country’s electricity challenges and improve access to reliable power supply.

However, power generation in the country has persistently hovered around 4,500MW for a population of over 200 million people.

The daily power report obtained by one of our correspondents on Thursday, for instance, showed peak generation reached 4,743MW as of 6 am on Thursday.

However, the average power generation in the past three years has remained at 4,500MW despite efforts by the government.

Since 2020, the World Bank has approved multiple loans to Nigeria’s power sector, focusing on sustainable energy solutions, distribution system upgrades, and overall sector reform.

The Sustainable Power and Irrigation for Nigeria Project, with a principal amount of $500m, was signed in September 2024 to enhance energy reliability and agricultural productivity.

In December 2023, the World Bank signed agreements for the Nigeria Distributed Access through Renewable Energy Scale-up Project, totalling $750m across three International Development Association credits.

This project is expected to expand renewable energy access and distributed electricity solutions.

In June 2023, the World Bank approved $1.5bn for the Power Sector Recovery Performance-Based Operation, which includes $301m already effective, $449m currently disbursing, and $750m from 2020, of which $715m has been disbursed.

This programme was designed to improve financial sustainability and operational efficiency within the power sector.

Also, the Nigeria Distribution Sector Recovery Programme, with $500m approved in February 2021, aims to support the capital and technical needs of electricity distribution companies.

On July 31, 2024, the African Development Bank Group approved a loan of $500m to the Federal Republic of Nigeria to help transform the country’s electricity infrastructure and improve access to cleaner energy sources.

According to a statement from the AfDB, this funding will finance the first phase of the Economic Governance and Energy Transition Support Programme, aimed at transforming the country’s electricity infrastructure and improving access to cleaner energy sources.

The statement also noted that the loan will help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.

These initiatives are designed to decentralise the electricity supply industry and attract investments from subnational governments and the private sector.

In September 2022, the Federal Government said it would partner with the Japan International Cooperation Agency to implement a $200m electricity transmission expansion programme in Lagos and Ogun states.

The former Minister of Power, Abubakar Aliyu, had said the aim of the programme was to expand the transmission network in the identified states so as to effectively support industries in the South-West.

However, there have been some challenges around the implementation of a number of the projects linked to the loans.

The PUNCH earlier reported that the $500m Nigeria Distribution Sector Recovery Programme, aimed at addressing significant challenges in the country’s electricity distribution sector, was hit by several delays.

A World Bank document on the restructuring of the project, obtained by The PUNCH on Monday, indicated that these delays, primarily due to a court case filed by the Association of Meter Manufacturers of Nigeria and a slow approval from the National Assembly, have threatened the timely implementation of the project.

The DISREP, approved by the World Bank in February 2021, is designed to improve the financial and technical performance of Nigeria’s electricity distribution companies.

The programme is a hybrid one, combining a Programme-for-Results component valued at $345m, with an Investment Project Financing component of $155m.

The funding aims to enhance Nigeria’s electricity sector by improving Discos’ performance, addressing the metering gap, rehabilitating distribution infrastructure, and strengthening governance.

However, the implementation of the project has been delayed due to a few factors, including a legal challenge that impacted the procurement of smart meters.

With the challenges in the sector, power generation in Nigeria has not improved, and the country continues to experience erratic electricity supply and frequent national grid collapses, with over 100 incidents recorded in the past decade.

Nigeria has been battling epileptic power supply, affecting the productivity of small businesses and manufacturers. This challenge is exacerbated by the frequent collapse of the national grid, with a total of 12 breakdowns recorded in 2024.

These challenges, compounded by infrastructure deficiencies and delays in implementing critical reforms, have raised questions about the effective utilisation of these funds.

To resolve recurring issues, the Minister of Power, Adelabu Adebayo, revealed that Nigeria requires at least $10bn over the next 10 years to achieve 24-hour power supply across the country.

However, several underlying factors have hindered the presidential goal to generate 6,000MW this year.

The government has pledged to address these inefficiencies and ensure that the loans yield the intended results.

The PUNCH earlier reported that the Ministry of Power plans to allocate a significant portion of its N1.2tn 2025 budget towards financing a range of multilateral and bilateral loan projects to enhance electricity generation and distribution nationwide.

Stakeholders within the power sector have emphasised the need for transparency and accountability in managing these resources to achieve tangible improvements in electricity generation.

However, as of now, the stagnation in power output persists, leaving many Nigerians to contend with unreliable power supply despite the substantial financial inflows in the sector.

Recall that Adelabu had promised Nigerians that there would be incremental power supply in the country under his watch as the Minister of Power. According to him, the Tinubu administration would do everything possible to make electricity accessible to all.

He promised that 1,200 MW would be added to the 4,800MW generated in May to raise the generated power to 6,000 MW by September but all of these goals were not achieved.

As an alternative, the government said it has begun moves to harness renewable energy sources as a critical part of the nation’s energy mix, to ensure sustainable power supply to citizens.

The government also revealed plans to provide Nigerians with at least 20 hours of daily electricity by 2027.

However, many challenges are hampering the actualisation of these targets, ranging from the multiple grid collapse cases, growing debts to power generation companies, and the vandalism of critical power infrastructure, to ageing infrastructure, inadequate maintenance, and insufficient investment in the power sector.

Despite having an installed capacity of approximately 12,500MW, Nigeria often generates only a fraction of this, leaving many areas without reliable electricity.

Commenting, a power expert, Mr Chinedu Amah, queried reasons why the government is borrowing to invest in a sector it claims to have privatised.

Amah, who is the founder of Spark Nigeria Ltd, noted the loans remain of no value if there is no electricity.

Speaking in a telephone interview on Thursday, the power expert urged the House and Senate Committees overseeing the audit of the borrowing process to take action.

He said, “The first question is why is the government investing in a space, it says it has privatised. That’s the first question. Why is it throwing investments and even borrowings at a sector it has privatised?

“Does the Federal Government borrow money to improve the telecommunications sector or automobile companies? That is the first question.

“The next thing is what was it spent on, who is auditing that process, and what are the House and Senate Committees saying concerning those borrowings and their effectiveness in improving power supply and the electricity market.

“If they are borrowing, what is the pathway for recovering the funds for repayment? Borrowing is not a problem, but it’s about what you are spending the money you borrowed on and whether you are spending it judiciously.

“If you are spending it, how do you hope to recover it for value, and when are you paying back that value?

“But at the end of the day, whether they borrow N100bn or whatever, if Nigerians don’t see the light at home, the loans have no value. It must translate to a true value, and it’s an adequate power supply.”

The President of the Nigeria Consumer Protection Network, Kunle Olubiyo, in a chat with our reporter, raised concerns about project conceptualisation in Nigeria, particularly in the energy sector.

According to him, while projects design and delivery globally are aimed at achieving intended objectives, in Nigeria, many projects are often designed to facilitate the pilfering of public funds.

He said at the generation level, critical issues like the lack of a spinning reserve persist despite the availability of funds that could have been allocated to address such challenges.

This oversight, he said, reflects a systemic neglect of pressing infrastructure needs.

Olubiyo also said the prevalence of abandoned projects had left many states across the country severely underserved in terms of energy supply.

He said that even when those projects are completed, they often fail to meet the current energy load demand due to their outdated designs and limited capacity.

He said government funding alone would not suffice to address the challenges, calling for partnerships with the private sector and commercial banks.