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AfDB Worries over Nigeria’s $67.7Bn Debt

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Ngozi Okonjo-Iweala, minister of Finance
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African Development Bank (AfDB), has released its African Economic Outlook 2015, and cautioned against Nigeria’s rising public debt profile which it put at $67.7 billion as at December 2014.

AfDB’s figure is higher than the All Progressives Congress (APC) and Prof. Yemi Osinbajo, Vice President-elect recent estimate of $63 billion.

The AfDB said total public debt level, which represents a five per cent increase from end-2013, was driven largely by the 10 per cent rise in the domestic debts of the federal and state governments.

The rising domestic debt emanated from the challenging fiscal position resulting from dwindling oil revenues coupled with need to implement several reform initiatives at both national and sub-national levels of government.

The report, written by Barbara Barungi (Lead Economist) and Eric Ogunleye (macroeconomist consultant), both of the group’s Nigeria Country Office, warned that an unchecked rise in public debt, especially domestic debt, could have negative effects on the economy.

“Increased domestic public debt has a tendency to raise interest rates, resulting in crowding out of the private sector from the local credit market. Anecdotal evidence suggests that increased public domestic debt is the major driver of the high lending rate in the country coupled with high monetary policy rate. Federal Government bonds and Nigerian treasury bills are the dominant instruments in the country’s domestic debt, accounting for over 95 percent of total domestic debt stock”, the report noted.

Despite the rising trend in public debt, the report, however, said the solvency and liquidity indicators show that the country remains at a low risk of debt distress, given a low debt-to-GDP ratio of about 12.5 per cent with external debt as low as 1.7 percent of GDP and mostly through international financial institutions’ concessional windows.

“A few risks persist, however, that tend to make the outlook and prospects of the Nigerian debt profile somewhat worrisome. One of these is the rising trend in sub-national debt. Failure to check this may undermine the effectiveness of the debt-management strategy being pursued. It is hoped that efforts of the DMO to reconstruct the debt at the sub-national levels and establish debt-management departments in each state will improve the situation. It is hoped that the robust debt management framework of the DMO will guide borrowing and the mode of financing any actual increased spending. However, a strong political will to stay the course of public financial management reform and the implementation of a genuine debt-management strategy are critical for success,” it added.

However, the AfDB report said the nation’s economy has enjoyed sustained economic growth for a decade, with annual real GDP increasing by around seven percent;  from 6.3 percent in 2014. The non-oil sector has been the main driver of growth, with services contributing about 57 percent, while manufacturing and agriculture, respectively contributed about nine per cent and 21 per cent.

The economy is thus diversifying and is becoming more services-oriented, in particular through retail and wholesale trade, real estate, information and communication.

The 2015 outlook projected a moderate growth of five percent, due to vulnerability to slow global economic recovery, oil-price volatility and global financial developments. The low oil price, it said, would lead to a sharp decline in fiscal revenues, but that the overall impact on non-oil sector GDP would be relatively muted.

“The sector is, thus, expected to remain the main driver of growth over the medium term and, in the light of the recent macroeconomic challenges, the government has adopted an adjustment strategy that hinges on tightening government spending and shoring up non-oil revenues to compensate for dwindling oil revenues.”

The analysts called on government to address security issues facing the country, especially insurgency in the northeast and other parts of the country which they said has negative implications for investment.

“Insurgency also may hamper the fight against poverty as well as increase crime. An increased number of both internally displaced persons and refugees in neighbouring Cameroon and Niger have created a grave humanitarian situation. However, the current regional coalition force against Boko Haram appears to be making headway in subduing the insurgency.

They added that overcoming geographical and socio-economic barriers is central to achieving inclusive growth and sustainable development, while addressing rural-urban differences to ensure more balanced development through job creation and societal transformation will be critical for Nigeria’s future.

“This will need to be done within all the six geopolitical zones, in addition to addressing inequalities across these zones. Though there have been several policy initiatives aimed at territorial development in Nigeria, limited success has been achieved in addressing the fundamental causes of unevenness. The problem often lies with a structure of governance that gives room for developmental policy implementation at the federal, state and local levels of governance but not at the regional level”.


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Kaspersky Reveals How Digitalisation is Influencing Family Life

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Kaspersky’s latest global research shows that mostly all people currently interact with their family members digitally: 86% of all participants communicate with family via messaging apps, 58% have regular video calls, and 44% have even established joint streaming service accounts.

While digitalisation offers unprecedented convenience and flexibility in family communication, Kaspersky experts warn that this increased online connectivity demands a heightened awareness of digital safety practices and the protection of devices.

Communication in the digital sphere has become an integral part of everyday life. Thanks to video calls and instant messaging, we can maintain connections with our loved ones, no matter where we are.

Digitalisation has reshaped not only how we communicate, but also how we spend our free time together. Kaspersky has conducted a survey* to reveal the common patterns of modern family life in the digital age and discover the cybersecurity challenges that lurk beneath our screen interactions.

Cyber safety during family communication

According to the survey, regular messaging via WhatsApp, Telegram, Signal, Viber and other messenger apps were top of users’ choices when communicating with their families.

People in the 35-54 age group were the most likely to engage this way, with 89% of respondents choosing this option. Video calls were a much less popular option among respondents as a way of keeping in touch with relatives, with only 58% choosing this digital solution.

Another popular way of staying connected online for many families is exchanging posts and memes on social media and messengers (53%). The 18-34 age group leads this trend with a 58% participation rate, showcasing how humor and shared cultural references are becoming essential family bonding mechanisms.

The older generation (above 55 years old) is in general less digitally engaged than other ages, though the share of those who chat with their families in messengers is on par with the average (85%). 42% of this age group even exchange memes and posts via social media.

Despite the fact that older people are more active in the digital sphere, they may still not be ready to face cyber threats and scams. Users should therefore educate their older relatives on how to stay safe online and use gadgets securely.

Even for advanced users, communication online carries potential cyber security risks. From phishing attempts disguised as legitimate messages to sophisticated social engineering attacks, the digital battlefield operates within our most personal communication channels.

To ensure the complex protection for your messengers it’s highly recommended to enable two-factor authentication where possible, use unique, complex passwords for each account, remain skeptical of unexpected links or attachments, use a reliable security solution with anti-phishing protection for messengers and follow security tips from Kaspersky experts.

Family accounts – convenience or risk?

The survey shows that in their free time 70% of families choose to watch movies together, with 44% having family streaming accounts. Online games do not have such popularity as a family pastime, with only 35% of general respondents opting for them.

While sharing streaming subscriptions and gaming accounts may seem like a cost-effective solution, it opens the door to a host of digital vulnerabilities that can compromise your family’s security and privacy, especially when an account is used by different family members under the same login and password. Such accounts create a perfect storm for security breaches.

If one family member’s device is compromised, hackers gain access to the entire account. Additionally, password reuse across multiple platforms means that a single breach could expose your financial information, email accounts, and other sensitive data. To manage all passwords securely, it’s highly recommended to use a password manager for all family members.

“As our family life moves more and more online, it opens up amazing ways to stay close and create memories – but it also brings new risks, like scams and hacking. Kids and older relatives can be especially at risk, so looking out for each other online is really important.

“Protecting your digital privacy and using cybersecurity measures is an important way to care for your loved ones and keep your family safe”, comments Marina Titova, Vice President for Consumer Business at Kaspersky.


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NCC Slaps ₦250,000 Fee on Trial Licences to Spur Telecom Innovation

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Nigerian Communications Commission (NCC) has rolled out a new ₦250,000 application fee for companies seeking temporary approval to test innovative telecom services, aiming to fast-track sector modernisation while safeguarding consumers.

NCC Slaps ₦250,000 Fee on Trial Licences to Spur Telecom Innovation

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The fee targets the newly launched Interim Service Authorisation (ISA), a short-term licence enabling telecom operators, startups, and tech firms to trial novel offerings in live markets before full commercial rollout. Contained in NCC’s freshly published General Authorisation Framework, the charge covers administrative processing, with successful applicants potentially facing extra costs for spectrum or numbering resources.

Under the rules, firms pay the ₦250,000 upfront upon application. Trials run for an initial three months, renewable once up to six months total, capped at 10,000 users and restricted geographically. Operators must prove their service is genuinely new, detail regulatory hurdles, outline consumer safeguards, and submit monthly reports, all while upholding data protection, security, and rights obligations.

NCC Executive Vice-Chairman Aminu Maida, who previewed the draft in July, said exploding tech advances had outstripped old licensing models, necessitating reform to foster innovation without skimping on public safeguards. The ISA lets providers gauge technical viability, market appetite, and risks, while regulators scrutinise quality and impact pre-scale-up.

“This framework strikes a balance—unleashing experimentation in spectrum sharing, Open RAN, and alternative connectivity, minus the pitfalls of unchecked rollouts,” an NCC statement noted. Participation offers no automatic path to full licences; commercial bids hinge on fresh evaluations and category fits.

Industry players hailed the move as a risk-reducer for unproven ideas, potentially slashing flop costs in Nigeria’s cut-throat telecom arena. With participation limited and monitoring rigorous, the NCC bets on controlled pilots to propel breakthroughs, cementing Africa’s giant as a digital vanguard.

As operators eye 5G-plus frontiers, the ISA arrives amid investor clamour for agile rules, positioning Nigeria to harvest homegrown tech leaps without consumer blowback.


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Naira Smashes Through ₦1,400 Barrier in Official FX Rally

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Nigerian naira strengthened to a record high of about ₦1,400 to the US dollar at the official market during midweek trading, continuing an appreciation trend seen since the start of the week.

Naira Smashes Through ₦1,400 Barrier in Official FX Rally

FX

Data released by the Central Bank of Nigeria (CBN) showed that the currency appreciated by 1.26 per cent on Tuesday, January 27, at the Nigerian Foreign Exchange Market (NFEM), with the dollar quoted at ₦1,401.22. This represented a gain of ₦17.73 compared with the ₦1,418.95 recorded on Monday, January 26.

The naira had already posted significant gains in the previous session, closing at around ₦1,401.20 per dollar, its strongest level since the introduction of the Electronic Foreign Exchange Matching System (EFEMS).

The currency has recorded incremental daily gains in recent sessions, rising between 0.1 per cent and 0.36 per cent on some trading days. In the parallel market, bureau de change operators in Lagos quoted the dollar between ₦1,475 and ₦1,490 on January 27, with average buying and selling rates of ₦1,480 and ₦1,490 respectively.

Market analysts attribute the improved performance at the parallel market to enhanced foreign exchange liquidity and further regulatory reforms implemented by the CBN.

The naira has sustained its upward momentum into early 2026, building on the gains recorded in 2025, when it posted its strongest performance in over a decade, appreciating between 7 and 9 per cent against the US dollar.

Analysts generally expect the currency to remain within a relatively stable range in the medium term, with several projections indicating it will trade between ₦1,400 and ₦1,500 to the dollar this year, supported by improved liquidity and ongoing macroeconomic reforms.

The Nigerian Economic Summit Group has projected that the naira will trade at around ₦1,480 to the dollar in 2026. The group also expects Nigeria’s external reserves to rise steadily to about $52 billion, driven by the consolidation of recent reforms and sustained stabilisation efforts.


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