Economy
Experts Task Incoming Administration on Inflation, Debt
By Adedapo Adesanya
On Monday, May 29, Nigeria will get a new president as President Muhammadu Buhari will vacate office after eight years for his successor, President-elect Bola Ahmed Tinubu, a transition that comes with a lot of burdens.
Mr Tinubu, a member of Mr Buhari’s All Progressives Congress (APC), was announced by the Independent National Electoral Commission (INEC) as the winner of the February 25 election, defeating Mr Atiku Abubakar of the People’s Democratic Party (PDP) and Labour Party’s Mr Peter Obi.
However, the country faces massive headwinds of problems, including surging inflation and piling debt, which analysts who spoke to Business Post said are the top priority for Mr Tinubu’s administration.
In April, Nigeria’s headline inflation rate increased to 22.22 per cent as it increased by 0.18 per cent compared to the March 2023 headline inflation rate of 22.04 per cent. The NBS said on a year-on-year basis; the headline inflation rate was 5.40 per cent points higher compared to the rate recorded in April 2022, which was 16.82 per cent.
Plans by the country to control inflation and strengthen the Naira have seen interest rates raised for an unprecedented seventh consecutive time.
However, there are yet no signals that inflation will slow anytime soon, meaning the country will likely hike the rate further after research showed the increase in borrowing costs is yielding results.
The monetary policy committee on Wednesday lifted the benchmark rate by half a percentage point to 18.50 per cent, Governor Godwin Emefiele said in Abuja.
With the end in sight, Mr Buhari pleaded with lawmakers to hurriedly approve an $800 million loan from the World Bank, a move that could see Nigeria’s public debt pass $150 billion this year from over $60 billion when he took over.
His borrowing spree has drawn warnings from the World Bank that Africa’s largest economy was using 96 per cent of its revenue to service debts.
Earlier this month, the Budget Office of the Federation told the incoming legislature, which approves the country’s borrowing needs, that Nigeria’s debt-to-revenue ratio was worsening and could spell doom if the country exceeds its limit.
“We now have very limited borrowing space, not because our debt to GDP is high but because our revenue is too small to sustain the size of our debt. That explains our high debt service ratio. Once a country’s debt service ratio exceeds 30 per cent, that country is in trouble, and we are pushing towards 100 per cent, and that tells you how much trouble we are in,” the Director-General of the Budget Office, Mr Ben Akabueze, said.
Speaking to Business Post, Mr Akin Fatunke, a chartered accountant and public affairs analyst, said the country needed the incoming administration to take the bull by the horn.
“Economic viability should be hinged on efficient loan and self-sufficiency management geared towards investments at the commanding heights. West Africa has too many nation-states, many of which are simply not economically viable.
“I look at how Giuseppe Garibaldi masterminded the unification of Italy and how Otto Von Bismarck masterminded the unification of Germany, I look forward to a Nigerian hero masterminding the unification of West Africa,” he said in a correspondence to Business Post.
He tasked the incoming president to “Build a global economic giant that will rival the likes of China and India with their populations that are in excess of one billion people.”
On his part, Mr Nelson Ekujumi, a business and public affairs analyst, was optimistic about the capabilities of the incoming administration, noting that, “The incoming administration as headed by President-elect Asiwaju Bola Tinubu (GCFR) and Vice President-elect Senator Kashim Shettima (GCON) are astute accountant and economist technocrats respectively who are well versed in financial matters and I have a strong optimism that Nigeria’s debt will be tackled.”
He expects them to “plug economic loopholes to generate more sources of revenue that will limit our borrowing and put in place measures to ensure greater productivity and make life affordable and accessible such that the cost of living will be on a manageable scale for a vast majority of Nigerians.
“The factors engendering high cost of living is expected to be tackled frontally to arrest and reduce inflation.”
By Adedapo Adesanya
The Senate has approved President Bola Tinubu’s fresh request for a $6 billion external loan to support key national priorities.
The approval came on Tuesday, March 31, 2026, after the Senate considered a report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
The request was contained in two separate letters from the President, read during plenary.
According to Mr Tinubu, out of the $6 billion, the lion’s share of $5 billion is a Structured Total Return Swap (TRS) external financing programme offered by the First Abu Dhabi Bank, to be released in tranches.
The remaining $1 billion is an export finance facility from the United Kingdom, arranged by Citibank, specifically for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
The facilities are intended to support the implementation of the national budget, funding priority infrastructure projects, and refinancing existing domestic and external debts.
The President also said the loan will help the country to meet urgent financial obligations, noting that the phased drawdown of the borrowing will help ease pressure on debt servicing.
The Senate also approved the issuance of Naira-denominated federal government securities as collateral and the payment of margin obligations in US Dollars.
Earlier, it was reported that President Tinubu sought the red chamber’s approval for a significant upward review of the 2026 budget, proposing an additional N9 trillion to the Appropriation Bill.
The request, conveyed in a letter read on the Senate floor during Tuesday’s plenary by the Senate President, Mr Godswill Akpabio, would increase the budget size from the initial N58.47 trillion to N67.47 trillion.
According to the President, the proposed adjustment is aimed at strengthening fiscal transparency and ensuring more effective implementation of priority national programmes.
The development raises fresh worries about Nigeria’s debt portfolio, which has risen considerably within the three years of the Tinubu-led administration.
By Aduragbemi Omiyale
A production sharing contract (PSC) for Block KON 13 has been signed between Oando Plc and the Angolan National Agency for Petroleum, Gas and Biofuels (ANPG).
With a 45 per cent participating interest, Oando’s wholly owned subsidiary, Oando Exploration and Production Angola Ltd, will serve as operator of the block.
The other partners in the consortium are Effimax Energy – Serviços, Lda (30 per cent), Sonangol Exploração & Produção (15 per cent), and Walcot Ltd (10 per cent).
Block KON 13 is located in the onshore Kwanza Basin, Angola. It has two exploration wells previously drilled to a total depth of 3,000m, with oil shows encountered in one well across various depths.
The addition of Block KON 13 further bolsters the energy firm’s upstream portfolio and underscores its commitment to driving regional growth and energy security.
Recall that before now, Oando acquired the assets of Nigerian Agip Oil Company Limited as part of its expansion strategy.
The latest addition solidifies the company’s strategic entry into the Angolan oil and gas sector and represents a significant step in its long-term vision to grow its upstream operations across Africa. It also represents its first operated international upstream joint venture and further strengthens its position as a prominent player in the continent’s energy landscape.
“The execution of this PSC advances our geographic footprint across Africa and reaffirms the commitment to excellence and execution we have repeatedly demonstrated on the continent.
“We bring proven technical expertise to this asset and a clear mandate to create value for our partners and advance Angola’s energy ambitions for the benefit of the continent.
“We look forward to working with ANPG, our co-venturers, and key stakeholders in moving from agreement to action,” the chief executive of Oando, Mr Wale Tinubu, said.
Oando, through its upstream businesses, holds interests in 14 oil and gas assets spanning exploration, development, and production activities, both onshore and offshore, in Nigeria and São Tomé and Príncipe.
By Adedapo Adesanya
President Bola Tinubu is seeking Senate approval for a significant upward review of the 2026 budget, proposing an additional N9 trillion to the Appropriation Bill.
The request, conveyed in a letter read on the Senate floor during plenary by the Senate President, Mr Godswill Akpabio, would increase the budget size from N58.47 trillion to N67.47 trillion.
According to the President, the proposed adjustment is aimed at strengthening fiscal transparency and ensuring more effective implementation of priority national programmes.
He said the increase will first address outstanding legal commitments carried over from previous appropriation cycles, preventing them from affecting the execution of the 2026 budget.
The proposal also seeks to consolidate existing government debt within the fiscal framework, while making provisions for a limited number of strategic and priority projects.
President Tinubu added that the revised financing plan is designed to preserve macro-fiscal stability and ease pressure on the domestic financial market.
The Senate is expected to consider the request in the coming days.
In December, the President presented the N58.47 trillion 2026 budget proposal to a joint session of the National Assembly, outlining the government’s priorities anchored on economic stability, infrastructure expansion, security and social investment.
The budget was hinged on assumptions including oil production of 1.84 million barrels per day, an oil price benchmark of $64.85 per barrel, and an exchange rate assumption of N1,400 to the Dollar.
Following the presentation, the Senate passed the appropriation bill for first and second readings, paving the way for detailed consideration by relevant committees.
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