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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.

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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.

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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.

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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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Anambra Seeks Digital Inclusion in Rural Communities

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Anambra State Government says it is exploring partnerships with the Federal Government and other stakeholders to extend digital connectivity to underserved rural communities across the state.

The Managing Director and Chief Executive Officer of the Anambra State ICT Agency, Mr Chukwuemeka Fred Agbata, disclosed this during a virtual media engagement with journalists on Thursday.

Agbata said rural connectivity remained a major challenge because telecommunications operators were often reluctant to invest heavily in communities where network deployment might not be commercially viable.

He said the state was willing to explore opportunities to leverage Federal Government infrastructure and the Universal Service Provision Fund (USPF) to extend connectivity to underserved communities.

“We understand what digital inclusion means because we are dealing directly with these communities,” Agbata said.

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According to him, the objective is to ensure that rural residents are not excluded from the benefits of digital government and the wider digital economy simply because of where they live.

Agbata said the effort formed part of the state’s broader digital transformation agenda, which is targeting deeper digitalisation of government services and a more digitally enabled business environment by 2030.

He said the second phase of the agency’s digital transformation agenda would focus on e-governance, digital infrastructure, smart government and the use of emerging technologies to drive development.

“My core vision is that we would have digitised every single government entity in Anambra State,” he said.

The ICT boss said the digital transformation agenda would extend beyond government ministries, departments and agencies (MDAs) to businesses and residents across the state.

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He said the agency was already developing websites for government MDAs and transforming them from mere information platforms into channels for delivering government services.

“We are building websites for all the MDAs. We are also automating them to be able to carry out services and give government support and government services through their websites,” he said.

Agbata said the initiative would reduce the need for citizens to physically visit government offices to access basic services.

He said the Smart Anambra platform had already demonstrated growing demand for remote access to government services.

According to him, the platform recorded about 14,000 visits between July 9 and July 29, averaging approximately 700 visits daily, despite limited publicity.

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He said the data indicated that residents were interested in accessing government services online, including applications, permits and identification-related processes.

“What the data is already showing us is that we really need to build a system that allows people to actually get government services remotely,” Agbata said.

He explained that the objective was to allow residents to initiate processes online, complete forms remotely and only visit government offices where physical presence was eventually required.

This, he said, would reduce the time and cost citizens spend travelling to Awka or other government offices to access services.

Agbata said services in areas including hospitals, schools and other government processes were being connected to Smart Anambra.

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Anambra Targets 2030 for Digital Government

Agbata said the state’s 2030 target was to deepen the digitalisation of government services and create an environment where businesses could increasingly operate within the formal digital economy.

He said the agency was working with the Ministry of Commerce to promote the formalisation of businesses, particularly SMEs and businesses operating in major markets.

“One of the biggest challenges that we have is that SMEs are not formalised enough,” he said, adding that the agency was exploring partnerships to address the challenge.

The ICT agency boss said the transformation would be gradual because major government initiatives required the necessary approvals and resources.

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On the possibility of making Anambra completely paperless, Agbata disclosed that the State Executive Council was already operating a paperless system.

He, however, said the entire civil service might continue to operate a combination of digital and paper-based processes for some time because of the complexity of government operations.

“What might happen is a dual situation,” he said, adding that selected MDAs could be used as pilots for deeper digital transformation.

Agbata also disclosed that the Anambra State ICT Agency had commenced the deployment of a locally trained artificial intelligence (AI) system to automate its operations and explore applications in governance, revenue management and public-sector productivity.

He explained that the agency did not develop a frontier large language model from scratch because of the huge computing and financial resources required.

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Instead, he said, it adopted an open-source model, modified it and was training it for specific local use cases.

“We have started doing our own local AI system. It is an open-source system, so we didn’t build our own frontier model. We basically looked at open source and modified it, and we are training it,” Agbata said.

He said the system had already been deployed to automate the agency’s operations end-to-end.

“We have used it to automate our agency end-to-end. Everything that we do now is currently automated,” he said.

Agbata said the agency was exploring how the model could be applied across other areas of government to improve productivity, address revenue leakages and strengthen governance.

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He said the AI initiative formed a major part of what he described as the agency’s “2.0” phase following his reappointment by Gov. Chukwuma Soludo.

According to him, the second phase would build on achievements in infrastructure, capacity development, e-governance and smart government while placing greater emphasis on AI and emerging technologies.

Agbata also said the state’s free public Wi-Fi initiative remained operational, stressing that the programme was introduced before the electioneering period.

“The free Wi-Fi didn’t start as a political thing, a campaign thing. It started way before the campaigns,” he said.

He explained that the strategy was adjusted during the campaigns to enable residents to follow the governor’s activities and participate in live engagements while on the move.

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According to him, existing Wi-Fi locations, including facilities at the state Secretariat, remain operational, although occasional downtime occurs, particularly during periods of adverse weather.

“There are downtimes now and then because with the rains and all of that, these things have their uptime and their downtimes, but it is still very much available,” he said.

He disclosed that there were currently no plans to establish additional Wi-Fi locations, noting that existing sites were still providing services.

Agbata said the state would continue to develop digital skills and education programmes, including Smart Schools and other capacity-development initiatives.

He also called for stronger collaboration among government, technology companies, telecommunications operators, local technology manufacturers and other stakeholders to accelerate the state’s digital transformation.

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He cited the procurement of about 2,000 computers supplied by indigenous technology company, Zinox, as an example of the state’s engagement with local technology providers.

Agbata said the agency would remain open to partnerships capable of supporting Anambra’s technology agenda.

He said the ultimate objective was to build an Anambra where residents and businesses could increasingly interact with government digitally, while technology becomes a central driver of economic development across the state.

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Nigeria Not Making Progress in Fiscal Transparency –US

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United States Government has said that Nigeria is not making significant progress in fiscal transparency, referencing gaps in the country’s budget disclosure, expenditure reporting, public procurement transparency and audit processes.

Nigeria Not Making Progress in Fiscal Transparency –US

The assessment is contained in a report by the United States Department of State, which reviewed Nigeria’s fiscal transparency practices in its 2026 fiscal transparency report for countries published on Tuesday.

The report noted that the US government stated that Nigeria made some key fiscal documents available to the public, significant shortcomings remained in the disclosure of budgetary information and the management of public finances.

The report noted that “the government made its enacted budget and end-of-year report widely and easily accessible to the public, including online, but did not publish its executive budget proposal within a reasonable period.”

It also stated that while the Nigerian government had made information concerning the country’s debt obligations publicly available, its budget documents failed to provide a comprehensive picture of government revenues and expenditures.

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“The government made information on debt obligations, including major state-owned enterprise debt, publicly available, but budget documents did not provide a substantially complete picture of the government’s revenues and expenditures, or break down expenditures to support executive offices in the budget,” the report stated.

The US government further raised concerns about discrepancies between Nigeria’s approved budget and the actual revenues and expenditures recorded during implementation.

It said, “Actual revenues and expenditures did not reasonably correspond to those in the enacted budget.”

The report also criticised the country’s supreme audit institution, stating that it did not meet international standards of independence and did not publish substantive reports, although it had access to the entire executed budget.

“The supreme audit institution did not meet international standards of independence or publish substantive reports but did have access to the entire executed budget,” it stated.

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The assessment, however, acknowledged that Nigeria’s sovereign wealth fund had an adequate legal framework and disclosed information about its funding and the general approach to withdrawals.History

“The sovereign wealth fund had a sound legal framework and disclosed its source of funding and general approach to withdrawals,” the US government said.

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World Bank Investing $25 million in Equity in Jumia Technologies

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The World Bank Group is supporting the expansion of Africa’s digital commerce infrastructure to help small businesses reach new markets, create jobs, and strengthen economic opportunities across the continent.

Through Jumia, Africa’s leading e-commerce platform, the investment is expected to enable approximately 60,000 local annual active sellers to participate more fully in the digital economy, support around 1,800 direct jobs, and create income-generating opportunities for more than 100,000 independent sales agents.

As digital commerce continues to grow across Africa, reliable access to online marketplaces, logistics networks, and digital payments are becoming increasingly important for entrepreneurs and small businesses seeking to expand beyond local markets. Strengthening this infrastructure can help firms increase sales, improve productivity, and connect consumers with a wider range of affordable goods and services.

To support this effort, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, is investing US$25 million in equity in Jumia Technologies AG (Jumia), Africa’s largest public e-commerce platform. The investment will support Jumia’s next phase of growth across its core African markets, strengthening its integrated marketplace and logistics network.

By expanding access to digital commerce tools and services, the investment will help businesses grow, improve price transparency, and contribute to more inclusive and resilient private sector development across Africa.

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“The support of the World Bank Group is a milestone for Jumia and for African e-commerce more broadly. It validates both the discipline we have brought to our business in recent years and the tangible impact our platform has on small businesses, jobs, and consumers across our eight markets. With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs” said Francis Dufay, CEO of Jumia.

“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale. Our investment supports the company’s next phase of growth while contributing to create jobs, digitizing supply chains and distributions channels and mobilizing private investment” said Farid Fezoua, Director for Equity, Funds, and Venture Capital at the International Finance Corporation, World Bank Group.

 

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