News
World Bank Sounds Alarm: Low Revenue, Not Debt, Is Nigeria’s Biggest Fiscal Threat
World Bank has said Nigeria’s greatest fiscal challenge is weak revenue mobilisation rather than excessive borrowing, urging the Federal Government to strengthen revenue generation to support sustainable economic growth and meet its debt obligations.
The World Bank Country Director for Nigeria, Mr. Mathew Verghis, stated this during an interview on Channels Television on Friday.
According to him, Nigeria’s debt profile remains moderate by international standards and does not place the country among nations experiencing debt distress.
“From our assessment, Nigeria doesn’t have a high indebtedness problem; it has a low revenue problem,” Verghis said.
He explained that Nigeria’s debt-to-Gross Domestic Product (GDP) ratio is lower than that of many comparable economies, adding that the country’s fiscal challenge lies more in its limited revenue base than in the volume of its borrowing.
“When we looked at the numbers, Nigeria is a moderately indebted country, meaning it has less debt relative to its economy than most of its neighbours and many other countries.
“Nigeria is in a very different situation from Ghana, for example, which is going through a debt restructuring,” he said.
Verghis defended government borrowing, describing it as a legitimate tool for financing long-term investments capable of stimulating economic growth and improving citizens’ welfare.
“Nigeria borrows for the same reasons that all countries borrow. If you want to deliver results to people, the money available on an annual basis is not enough.
“So you borrow, deliver results, and that improves your ability to repay,” he said.
He cited electricity infrastructure as an example, noting that expanding access to power for millions of Nigerians would require substantial upfront financing.
“To be able to connect and provide energy to 32 million Nigerians, Nigeria needs to borrow money now.
“But with increased access to energy, the country will become wealthier and better positioned to repay the loans,” he added.
The World Bank official, however, warned that Nigeria’s low revenue generation poses a greater risk to fiscal sustainability than its current debt burden.
“Nigeria’s debt is not particularly high, and in fact, it is quite moderate by international standards.
“Its revenues are very low by international standards, and unless those revenues are raised, it will not be able to pay back debt,” he said.
Verghis said improving revenue mobilisation would enable the government to invest more in critical sectors such as infrastructure, healthcare, education and agriculture, while supporting job creation, strengthening human capital development and reducing poverty.
He noted that the World Bank’s recently unveiled Country Partnership Framework for Nigeria for 2026 to 2032 places job creation at the centre of its support for the country.
According to him, the framework will focus on investments in infrastructure, healthcare, agriculture and digital connectivity to promote inclusive and sustainable economic growth.
National Reading Culture (NRC), an online investment platform targeting Nigerians has collapsed, resulting in the loss of billions of Naira for investors.
The website unexpectedly shut down, blocking users from withdrawing their funds and locking in their investments.
Just like all other investment scams, victims were lured with promises of doubling their money in few weeks.
When National Reading Culture eventually crashed, the operators vanished with users’ funds, leaving investors devastated.
How the Platform WorkedTask-Based Earning:
According findings, National Reading Culture lured users with promises of making money by completing simple daily tasks like reading articles, clicking links, or inviting friends.
They also offered investment tiers to earn higher daily profits, where users had to deposit their own money into the platform.
Evidence showed the website previously operated as a Chinese job search platform before rebranding into an “earning” scheme.
The Nigeria Social Insurance Trust Fund (NSITF) has signed a memorandum of understanding (MoU) with Rand Mutual Assurance (RMA) to collaborate on digital transformation aimed at strengthening worker protection systems and support economic growth.
According to RMA, the agreement was concluded during a visit by its delegation to Abuja.
The partnership will focus on institutional capability development, modernising operating models, improving service delivery and sharing knowledge between the two organisations.
Through the partnership, RMA and NSITF will collaborate to strengthen institutional capability, modernise operating models, accelerate digital transformation and improve services for workers and employers.
The organisations will also explore opportunities for knowledge exchange and the adoption of best practices in social security administration.
RMA said the agreement forms part of its broader engagement with governments, regulators and social security institutions across Africa to support improvements in governance, operational resilience and service delivery.
“Our partnership with NSITF reflects much more than the signing of an agreement,” said Mandla Shezi, group chief executive officer of RMA. “This partnership is not simply about sharing knowledge. It is about co-creating the next generation of African social security systems.”
He added: “By combining our respective strengths, we can help build institutions that are more resilient, more responsive and better equipped to protect workers while supporting national development.”
Shezi said the future of social security depends on integrated systems where prevention, insurance, healthcare, rehabilitation, technology, investment management and institutional capability work together.
Microsoft has announced plans to cut about 4,800 jobs, representing roughly 2.1 percent of its global workforce, with Xbox, its gaming division, expected to bear the largest share of the layoffs.
The company said more than 1,600 positions at Xbox would be eliminated immediately, while another 1,600 jobs would be phased out over the next year as part of a major restructuring of the gaming business.
In a memo to employees, Amy Coleman, executive vice president, Microsoft, said the company was streamlining its operations to focus on areas that deliver greater value to customers in a rapidly changing technology industry.
Asha Sharma, chief executive officer, Xbox, described the move as “the most significant restructure in Xbox history,” saying the changes are intended to position the gaming business for long-term growth rather than downsizing.
Court Declares ARCON’s N60Bn Fine against Facebook Nigeria Illegal
NIN Enrollment Hits over 136m as New ID Law Takes Effect
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Plateau PCC Collects Nigerians’ Data without Privacy Policy – FIJ
FG Suspends New Internet Regulations to Prevent Overlapping Rules
Mobile Internet Gender Gap Widest in Africa – GSMA
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Nigeria Launches FreeTV Nationwide
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
UK, Nigeria Launch £15m Growth Programme to Accelerate Economic Transformation
E-Financial2 days agoTokenization, Blockchain Technology will Transform Financial Institutions – IMF
General News2 days agoNIS Deploys Advanced Surveillance Masts, other Critical Infrastructure to Boost Border Security
Broadcasting2 days agoObi, NDC Presidential Candidate Faces N50Bn Defamation Claim over Alleged Podcast Remark
E-Business2 days agoWeebly Websites to Shut Down for Nigeria, 66 Other Countries from September
E-Financial2 days agoFG Denies N8 Trillion ‘Shadow Budget’, Says IMF Quoted out of Context
Telecom2 days agoNo Plans for Fresh Tariff Hike – MTN
General News1 day agoIHS Nigeria, FCT-HSES Concludes Clean Cooking Energy Campaign “Project Breathe Clean Air” in Abuja
Telecom2 days agoAirtel Africa Foundation Equips 200 Young Women with Digital Skills to Drive Nigeria’s Tech Economy