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‘Nigeria not facing fiscal collapse’ – Edun
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The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said Nigeria is not facing a fiscal collapse but is undergoing a period of fiscal correction driven by economic reforms introduced by the federal government.
In a brief released on Saturday in Abuja, the minister said the country’s current economic adjustments are the result of structural reforms designed to promote transparency, enforce fiscal discipline, and support long-term economic growth.
Edun said the government deliberately chose policies that focus on long-term sustainability rather than temporary measures that could create the illusion of stability.
“Nigeria is not experiencing fiscal collapse. It is undergoing fiscal correction. The reforms are structural, transparency-driven, discipline-enforcing and growth-enabling,” he said.
He explained that available economic data show positive trends in several key areas, including revenue growth and the continued implementation of capital projects.
According to him, the government has also stopped the practice of financing budget deficits through direct monetary support from the Central Bank of Nigeria.
“The evidence shows revenue is rising, capital projects are ongoing, debt growth is largely transparency and exchange-rate driven, and monetary financing has ended. The administration has chosen long-term sustainability over short-term illusion,” he said.
The minister also addressed public concerns about the performance of government revenue collection, particularly regarding the Nigeria Revenue Service.
He explained that misunderstandings sometimes arise because of how federal revenue is collected and distributed within the government system.
“The Nigeria Revenue Service collects a large share of federal taxes and sets internal collection targets,” Edun said.
“However, NRS does not collect all revenue sources. Allocation ratios are applied after revenues reach the Budget Office and the Federation Account Allocation Committee, and meeting an NRS collection target does not automatically mean Federal Government revenue targets are met. This technical sequencing often leads to confusion in public commentary.”
Edun also responded to claims that federal capital projects are not being implemented due to low capital releases to government ministries, departments and agencies.
According to him, such conclusions do not reflect the full picture of how capital spending works in the federal budget.
He explained that federal capital expenditure has two main components. The first component involves capital projects funded directly by the Federal Government from its cash revenues.
This type of spending is handled through ministries, departments and agencies and depends largely on government revenue performance.
“MDA-funded capital is funded directly from Federal Government cash revenue. It is dependent on revenue performance and sensitive to oil shortfalls and debt service pressures,” he said.
Edun explained that when government revenue falls short or when debt servicing obligations increase, releases for these projects may slow down, which can affect performance ratios.
The second component involves capital projects funded through loans from international development partners.
These funds are disbursed directly by multilateral institutions and are tied to specific infrastructure or social programmes.
“Multilateral and project-tied loans are disbursed directly by development partners. They are not cash inflows to Federal Government accounts though captured in the budgets and they are tied to specific infrastructure and social projects,” he said.
According to the minister, such projects continue to move forward even when cash releases to government agencies appear limited.
“Capital projects are ongoing. Execution continues. The financing mix differs. The misunderstanding arises from focusing solely on MDA cash releases rather than total capital execution,” he added.
Edun also explained that increases in Nigeria’s debt service payments in recent years do not necessarily mean the government is borrowing recklessly. He noted that debt servicing rose above budget projections in both 2024 and 2025. In 2024, debt service was projected at ₦8.56 trillion but the actual amount reached ₦12.63 trillion, creating an overshoot of about ₦4 trillion.
For 2025, the budget projected ₦13.12 trillion for debt servicing, but the actual figure rose to ₦14.57 trillion, resulting in an overshoot of about ₦1.45 trillion.
The minister said these increases were largely caused by economic factors rather than excessive borrowing.
One of the key factors, he said, was the depreciation of the naira. He explained that much of Nigeria’s external debt is denominated in foreign currencies.
When the naira weakens against these currencies, the naira cost of servicing the same debt automatically rises.
“When the naira depreciates, the naira cost of servicing the same dollar debt rises automatically. This is a valuation effect and not evidence of new borrowing,” Edun said.
He added that higher domestic interest rates also contributed to the increase in debt servicing costs. According to him, interest rates were raised as part of efforts to control inflation and stabilise the currency. “To stabilize inflation and the currency, monetary policy was tightened, interest rates increased, and domestic debt servicing costs rose,” he said.
Despite these pressures, Edun said the government prioritised key obligations including debt servicing, payment of salaries and pensions, and the continued implementation of capital projects.
He added that these commitments were met without returning to the practice of monetary financing. “This reflects fiscal discipline under strain, not fiscal collapse,” he said.
The minister also addressed concerns about Nigeria’s rising public debt, noting that a large portion of the increase is due to accounting adjustments and exchange rate changes rather than new borrowing.
He explained that about ₦30 trillion previously owed to the Central Bank under the Ways and Means facility was formally recognised and added to the public debt record.
“Previously off-book liabilities are now transparently recorded. This is not new borrowing, it is formal recognition,” he said.
He also pointed to the impact of exchange rate adjustments. According to him, when the naira depreciated, the naira value of Nigeria’s external debt increased significantly.
He said about ₦70 trillion of the nominal rise in public debt can be attributed to exchange rate valuation effects. “Thus, much of the increase is accounting and currency-driven, not borrowing-driven,” he said.
Edun said Nigeria’s debt sustainability should be assessed using broader economic indicators such as the debt-to-GDP ratio, the debt service-to-revenue ratio, the fiscal deficit level and trends in government revenue.
He noted that recent policy reforms, including fuel subsidy removal and improvements in non-oil revenue, are gradually strengthening the country’s fiscal position.
The minister also pointed to strong growth in government revenue in recent years. According to him, Federal Government aggregate revenue increased from ₦12.48 trillion in 2023 to ₦20.98 trillion in 2024.
By November 2025, revenue had already reached about ₦22 trillion. He said the increase reflects improvements in tax administration, stronger remittance discipline by government agencies, efforts to block revenue leakages and improved performance from non-oil sectors of the economy. “The direction is upward and structural,” Edun said.
The minister acknowledged that the economic pressures experienced in 2024 and 2025 reflect the transition from previous fiscal practices to a more transparent system.
He said the country is moving away from an era characterised by hidden deficits and heavy reliance on monetary financing.
According to him, the current reforms include the removal of fuel subsidy, exchange rate liberalisation, the end of Ways and Means financing, tighter monetary policy and improved debt transparency.
He noted that such economic transitions can be difficult in the short term but tend to stabilise over time.
Edun also explained that the implementation timeline of capital budgets has contributed to some of the confusion around government spending.
According to him, the capital budget approved for 2024 was largely implemented in 2025, while a large part of the 2025 capital budget will now be executed in 2026.
Despite the short-term pressures, the minister said the reforms are aimed at building a more stable and sustainable fiscal system for Nigeria’s economy.
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2027: Be Prepared to struggle for power, Wike tells PDP candidates
Minister of the Federal Capital Territory (FCT), Nyesom Wike, has challenged candidates contesting in the 2027 general elections on the platform of the Peoples Democratic Party (PDP) to be prepared to struggle for power.
Wike, a national leader of the PDP, stated this during the party’s 109th National Executive Committee (NEC) meeting on Wednesday in Abuja.
“Nobody gives power. Nobody has done it. Power is taken; if you did not do so, it’s your business.
“You must fight for it to take it. Nobody gives power, and nobody is ready to dash you power. You have to struggle for it. You have to fight for it. You don’t have to be afraid.
“Every time you complain, oh, the governor is this, what do you want him to do? To allow you to come and take power like that?
“If you’re not serious, say you are not serious to struggle for power. When you take it, you appreciate it, not when they dash you and you don’t know the meaning of it,” Wike said.
He recalled his political journey through various struggles, including how he became governor when the incumbent belonged to a different political party.
Wike advised candidates, especially those running for governorship, to brace up for keen contests.
He said that in the present setting, most people were used to ‘food is ready’ politics.
“You are used to people preparing something for you to come and eat, and you think it will always be like that. It cannot always be like that.
“A time will come when there will be challenges in life and when you will be tempted in life,” he said.
Wike said that he happened to come from a background where he never got anything on a platter of gold, recalling that when he contested for a local government chairmanship position, the matter went all the way to the Supreme Court.
“When I don’t see challenges, I know that something is wrong, but when I see challenges, I know success has come,” he said.
He noted that when the PDP was in power, many of its members were like spoiled children depending on their father for daily provisions, reminding them that the party was no longer at the centre.
He urged them to see themselves as children whose father is sick, and remain determined not to disappoint him.
The minister also advised party members to stop introducing religion into politics and electoral matters, challenging them instead to return to their bases and work for the party’s success.
“Why do you bring your faith to this race? Everybody go home, go and bring something, and put it on the table in 2027. Go and bring something.
“I will bring something to the table here. Every NEC member has to bring something. If you bring a House of Representatives seat, you have done something.
“If you bring a House of Assembly member, you have done something. But don’t come here empty-handed; this is not a place for empty hands.
“This is a place where when you come, we look at the results of what you brought. That is what politics is all about,” he said.
Wike advised party members not to be distracted by claims from the Tanimu Turaki-led PDP faction that it would sponsor candidates for all elective positions in 2027.
He explained that the access code to the Independent National Electoral Commission (INEC) candidate nomination portal would ultimately determine legitimacy.
“As far as I am concerned, June 26 is when INEC will give access codes to political parties to upload results. Don’t worry, we are good to go. Nobody is afraid; we will see who INEC will give the code to.
“It is not about going to collect money from people and saying we are in court. Nobody is afraid of the court; courts are meant for human beings, not ghosts.
“So, we are here, we are not afraid. Let them continue going to court while we continue to prepare for our own election.
“Don’t worry, stop thinking about what will happen; the worst has happened,” he said, adding that anyone who is not serious in the business of politics should leave.
The minister also challenged party members and leaders not to be afraid of intimidation, harassment, or arrest.
“Use me as an example. There is nothing I have not seen. I’ve seen everything, including intimidation,” he said.
News
NUJ raises the alarm over insecurity, open grazing
The Nigeria Union of Journalists has expressed concern over rising insecurity, illegal revenue collection, open grazing and the growing misuse of public infrastructure across Delta State.
The union made its position known in a communiqué issued at the end of its congress in Asaba on Tuesday.
The congress, presided over by the Delta State Chairman of the union, Churchill Oyowe, reviewed key socio-economic, security, educational and environmental issues affecting the state.
On insecurity, the union said the increasing cases of kidnapping, armed robbery, cult-related violence and other crimes remained a major concern.
The union called on the Nigeria Police Force, Department of State Services and other security agencies to strengthen intelligence gathering, deepen community policing and improve collaboration with stakeholders to restore public confidence.
The congress also expressed concern over the activities of individuals allegedly operating as local government taskforces on federal roads, accusing them of harassing and extorting money from motorists.
It called for the immediate disbandment of all illegal road taskforces and urged security agencies to take action against those involved.
The union also raised concerns over reports of arbitrary and unauthorised levies imposed on parents and students in public schools across the state.
The congress called on the state government to investigate the allegations and sanction any official found culpable.
The union also criticised the growing use of flyovers in Asaba, Warri and Effurun as makeshift markets and motor parks by traders and tricycle operators.
Congress called on relevant government agencies to reclaim the facilities and enforce traffic regulations.
The union also expressed concern over weak enforcement of the Delta State anti-open grazing law.
It said continued violations of the law could threaten peaceful coexistence between farmers and herders, reduce agricultural productivity and worsen food security challenges.
The congress urged law enforcement agencies to ensure strict implementation of the law.
The union reaffirmed its commitment to promoting good governance, public accountability and citizens’ welfare, pledging to continue monitoring developments across the state in the interest of the public.
News
Court remands Maiduguri businessmen over N13.6m fraud
The Borno State High Court sitting in Maiduguri has ordered the remand of a man, Gambo Mohammed, in a correctional facility over an alleged N13.65 million land fraud and money laundering case brought against him by the Economic and Financial Crimes Commission (EFCC).
Mohammed was arraigned before Justice Babagana Shettima by the Maiduguri Zonal Directorate of the EFCC on a four-count charge bordering on alleged money laundering, obtaining money under false pretences and criminal misappropriation involving a total sum of N13,650,000.
According to the anti-graft agency, the defendant allegedly collected the money from one Umar Abubakar under the pretext of facilitating the purchase of two plots of land located opposite Maimalari Barracks in Jere Local Government Area of Borno State.
The EFCC alleged that after receiving the funds, Mohammed diverted the money to his personal use instead of completing the land transaction as agreed.
One of the charges filed against him stated that he fraudulently obtained the sum of N13.65 million from the complainant in 2025, purportedly as payment for two plots of land situated at Dubai Musari Ward, opposite Maimalari Barracks in Jere Local Government Area, knowing the representation to be false.
The charge reads in part: “That you, Gambo Mohammed, (a.k.a Modu Gambo), sometime in 2025, within the jurisdiction of this honourable Court, with intent to defraud, did obtain the sum of N13,650,000.00 from one Umar Abubakar, purportedly as purchase price for two plots of land situated at Dubai Musari Ward opposite Maimalari Barrack of Jere Local Government, Borno State, which you knew to be false.”
The prosecution maintained that the alleged act contravenes provisions of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006.
When the charges were read to him in court, Mohammed pleaded not guilty to all four counts.
Following his plea, prosecuting counsel, A.D. Abdulmalik, requested the court to fix a date for trial and urged that the defendant be remanded in a correctional centre pending the commencement of proceedings.
Delivering his judgement, Justice Shettima subsequently adjourned the matter until July 13, 2026, for a pre-trial conference.
The court also ordered that Mohammed be remanded at the Maiduguri Maximum Security Correctional Facility pending further hearing of the case.
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