Finance Minister: Revenue Is Nigeria’s Problem, Not Debt – Newstrends
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Finance Minister: Revenue Is Nigeria’s Problem, Not Debt

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The Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, says lack of adequate revenue to finance both human and capital infrastructure should be the major worry of Nigeria, not the current debt it owes.

 

Ahmed made the remarks at the Public presentation and Breakdown of the Highlights of the 2022 Appropriation Bill to justify the current level of the federal government borrowing to finance the deficit of the budget.

 

She stated that with the federal government expected to spend N16 trillion in the proposed 2022 Budget, its expenses are minute to the combined over N100 trillion spent on the Nigerian economy.

 

She said at 21.6 percent borrowing for the 2022 Budget, Nigeria needs 50 percent of its current GDP to be able to have infrastructural development and growth that would translate into meaningful economic growth.

 

“What we have is a revenue problem and we are working on it to be able to fully fund the operations of government as well as be able to service our debt obligations.”

 

“Borrowings are essential for us to be able to continue to deploy necessary capital expenditures as well as human development.”

 

She added that the federal government has to borrow to spend more to invest in infrastructure as it would lead to more job creation, spending and taxes.

 

Why Nigeria’s debt exceeded 3 per cent of the GDP

 

“If you look at the Fiscal Responsibility Act, Section 41.1, it is clearly that the country can borrow for investing in capital expenditure and human development as long as the borrowing does not exceed 3 per cent of GDP.

 

“This year we have exceeded the 3 per cent by 0.39 per cent but this has been allowed in the Fiscal Responsibility Act. A provision that says that Mr. President can exceed the 3 per cent threshold where there is a national emergency. It is our collective view that the current security situation that we have, the need to properly address the economic conditions occasioned by the Covid-19 pandemic and the crash of crude oil crash qualify as national emergency.”

 

She added that exponential growth of Nigeria’s public debt was due to the spending made to come out fast from the two recessions the economy entered.

 

Defence and security spending contributed to huge fiscal deficit

 

The Minister blamed spending to be made on defence and security for widening the fiscal deficit for the 2022 Budget.

 

“With the pervasive security challenges within the country, there is a need for sustained funding of the security services and this has necessitated massive expenditures in security equipment and operations and has contributed to the fiscal deficit. Defence and the security sector account for 22 per cent of the budget expenditure for 2022.”

 

Breakdown of budget

 

A breakdown of the 2022 Budget would resort to N6.83 trillion spent on recurrent expenditure; N5.35 to go on capital expenditures and N3.61 trillion to be spent on debt servicing.

 

Meanwhile, revenue would be generated through: oil revenue N3.53 trillion; taxes to contribute N2.132 trillion; independent revenue would yield N1.816 trillion; retained government organisations and enterprises, N1.728 trillion and other revenue sources to bring N924.31 billion.

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JUST IN: Release files on Tinubu, US judge orders FBI, DEA

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President Bola Ahmed Tinubu

JUST IN: Release files on Tinubu, US judge orders FBI, DEA

United States District Court in Washington, D.C., has directed the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) to make public records concerning President Bola Tinubu.

Judge Beryl Howell issued the order on Tuesday in response to a motion filed by Aaron Greenspan, an American citizen seeking a review of a previous ruling.

In her decision, Howell dismissed the agencies’ justification for withholding the information, stating that shielding such documents from the public “is neither logical nor plausible.”

Greenspan alleged that the agencies violated the Freedom of Information Act (FOIA) by failing to produce documents regarding alleged federal probes into both President Tinubu and Abiodun Agbele within the legally mandated timeframe.

In 1993, Tinubu forfeited $460,000 to the U.S. government after officials linked the funds to proceeds from narcotics-related activities.

The issue resurfaced during proceedings at Nigeria’s Presidential Election Petition Court, where opposition candidates Atiku Abubakar and Peter Obi cited the forfeiture in challenging Tinubu’s eligibility for office. The court ultimately dismissed the petitions and upheld his election.

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Judge Howell’s latest ruling partially supports Greenspan’s claims, particularly concerning the agencies’ reliance on what’s known as a “Glomar response”—a refusal to confirm or deny the existence of records.

According to the judge, the FBI and DEA failed to demonstrate that their use of the Glomar principle was appropriate in this case.

She wrote, “the claim that the Glomar responses were necessary to protect this information from public disclosure is at this point neither logical nor plausible,” noting that Tinubu had already been publicly identified as a subject in investigations by both agencies.

Further explaining the legal framework, Howell stated that a FOIA requester can challenge a Glomar response either by disputing the claim that disclosure would cause identifiable harm, or by proving that the agency has already officially acknowledged the information in question.

In this instance, Greenspan made both arguments. He contended that: “The plaintiffs’ argument that (1) DEA has officially confirmed investigations of Agbele’s involvement in the drug trafficking ring, (2) the FBI and DEA have both officially confirmed investigations of Tinubu relating to the drug trafficking ring, (3) any privacy interests implicated by the FOIA requests to the FBI and DEA for records about Tinubu are overcome by the public interest in release of such information, and (4) the CIA has officially acknowledged records responsive to plaintiff’s FOIA request about Tinubu.”

JUST IN: Release files on Tinubu, US judge orders FBI, DEA

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US envoy meets Tinubu in Paris over economic war

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U.S. envoy meets Tinubu in Paris

US envoy meets Tinubu in Paris over economic war

The United States has opened discussions with President Bola Tinubu on expanding economic cooperation across Africa as part of efforts to deepen trade, investment, and development ties on the continent.

This was disclosed following a meeting on Thursday between President Tinubu and U.S. State Department Senior Advisor for Africa, Massad Boulos, in Paris, where the Nigerian leader is currently on a short working visit.

According to a statement posted Friday on the official X (formerly Twitter) handle of the U.S. Mission in Nigeria, and shared by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the talks also touched on key security concerns in the region.

“State Department Senior Advisor for Africa Massad Boulos met with President Tinubu on Thursday to discuss regional security, including working together with partners to build a durable peace in eastern DRC,” the U.S. Mission stated.

“They also discussed expanding opportunities for economic cooperation throughout Africa,” it added.

The meeting comes at a time when Nigeria is working to reposition itself as a hub for investment and economic growth on the continent.

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President Tinubu has consistently called for stronger global partnerships to drive industrialization, job creation, and infrastructure development in Africa.

Though specific details of the economic discussions were not disclosed, analysts say the meeting reflects growing American interest in engaging with African leaders on development-focused diplomacy, with Nigeria seen as a critical anchor in West Africa.

President Tinubu has been in Paris since Wednesday, April 2, undertaking a short working visit aimed at reviewing his administration’s midterm performance and setting strategic priorities for the next phase of his tenure.

While abroad, the President has remained actively engaged in state matters, and Thursday’s high-level engagement with the U.S. State Department underscores Nigeria’s central role in regional affairs and global economic conversations.

Tinubu is expected to return to the country shortly, with public attention focused on the outcome of his consultations and the anticipated direction of new policies in the coming months.

US envoy meets Tinubu in Paris over economic war

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US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

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US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

The United States government through the Pennsylvania House of Representatives and the Pennsylvania Senate has honoured the Nobel Laureate Wole Soyinka and the renowned African art icon, Chief Nike Okundaye of Nike Art Gallery, Lagos for their contributions to art in Nigeria and globally.

While Soyinka was conferred with “Distinguished Honors” for his extraordinary contributions to literature, culture, human rights, and global discourse, Nike Okundaye was honored for her revolutionary impact on contemporary African art.

She was recognized for being the pioneer of the Adire resist-dyeing technique, which has seamlessly blended ancestral motifs with modern aesthetics, earning global acclaim, thereby solidifying her legacy as a custodian of African heritage.

The honor was bestowed on them on March 26 at the unveiling of African Cultural Festival 2025 held at the Pennsylvania State Capitol . The festival will take place from September 19 to 20, 2025, in Pennsylvania.

The Senate of Pennsylvania lauded Professor Soyinka for his pioneering role in modern African literature and his relentless advocacy for free speech, social justice, and democracy.

The Pennsylvania House of Representatives, led by Speaker Joanna E. McClinton, also commended him for his unparalleled literary achievements and for inspiring critical thoughts across generations.’

For Okundaye, she was honoured for giving hope to marginalised women, training and equipping over 5,000 women with Adire-making, weaving, and traditional craft skills.

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“Her mission to foster economic independence and cultural continuity has empowered communities across Nigeria and beyond, ensuring that African artistry thrives in future generations,” the House and the Senate stated.

Speaking about the upcoming festival, Wole Adeniyi, the Chief Executive Officer, CEO of ACI234, said the festival was designed to celebrate African heritage, foster international collaboration, and stimulate trade and cultural exchange between Africa, the United States, and the world.

Adeniyi emphasised that the festival will solidify Africa’s cultural influence while creating pathways for sustainable growth and artistic innovation.

He thanked the Pennsylvania House of Representatives, the Senate, and the State of Pennsylvania for honouring the two Nigerian icons of art.

Part of activities lined up for the festival includes the launching of Duduplugs, an innovative digital platform by ACI234 Entertainment LLC, designed to connect creative industries across continents, and elevate Africa’s creative economy.

Commenting on the upcoming event, Festival Director Foluke Michael described the African Cultural Festival as a celebration of tradition and innovation — a vibrant fusion of Africa’s timeless heritage with contemporary expression.

She acknowledged the pivotal role of the Lagos State Government in laying the foundation for this global movement through the Lagos Black Heritage Festival, which was steered by Professor Wole Soyinka during his tenure as Festival Consultant.

“That era gave birth to a cultural renaissance,” Michael noted. “It was during that time that the iconic Rhumble in Lagos — featuring President Bola Ahmed Tinubu and boxing legend Evander Holyfield — became a symbolic moment that planted the seed for what we now know as the African Cultural Festival.”

She further revealed that the official countdown to the 2025 edition will begin in Lagos at the end of April, setting the stage for a global celebration of African excellence.

 

US honours Soyinka, Okundaye at African Cultural Festival 2025 Pennsylvania

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