Economy
Nigeria May Begin to Borrow to Service Debts by 2025—Paul Alaje
By Dipo Olowookere
A renowned economist and Partner at SPM Professional, Mr Paul Alaje, has warned that the debt profile of Nigeria may continue to rise, with the nation not making enough to service it, and resorting to borrowing to pay interests on the borrowings.
He said this when he appeared as a guest on Arise Television’s breakfast programme, The Morning Show, on Monday, January 8, 2024.
Business Post reports that in December 2023, the Debt Management Office (DMO) said Nigeria’s total public debt stock was 87.91 trillion in the third quarter of last year.
It was also reported by this newspaper that after the approval of the securitisation of the N7.5 trillion ways and means by the National Assembly, the debt profile of the country could rise to N95 trillion.
Speaking on Arise TV today, Mr Alaje charged the government of Mr Bola Tinubu to look for innovative ways to generate more revenue for the country, especially from the solid minerals sector, tasking the federal government to slow down its appetite for borrowing and improve its revenue.
“The truth is that, by 2025, we will have to borrow to service debt. What does that mean? We will still put our revenue projection but by the end of 2025, when the 2026 budget is presented, we may need to borrow to service debt, I hope this will not be the situation because it is not a good projection.
“Unfortunately, if we don’t depart from the current situation, this may be where we find ourselves,” he said on the show monitored by Business Post.
Speaking further, he said, “You ask whether the 2024 budget inspires hope and by our training and the oath we swore, it is not for me to say yes or no but there are things we need to look at in the budget to arrive at an answer.
“Nigeria is expected to grow between 7 and 12 per cent gross domestic product (GDP) if we want to be at par with other nations. The budget has said we should grow by over 3 per cent; the inflation, according to the Central Bank of Nigeria (CBN) is expected to be 6 to 9 per cent, but this budget said 21 per cent this year perhaps because it is the first budget of President Tinubu. This budget is already telling us that things are going to be tough, that is the price of commodities you bought in 2023 will increase by an average of 21 per cent in 2024.
“Most importantly, Mr President spoke on the human development index and he said it is the key area he is focusing but let’s zoom on it a little. We are expected to invest between 20 and 25 per cent of our annual budget but when you see what went into education, we are doing less than 6 per cent instead of 15 to 25 per cent.
“Let’s look at health, which should be 15 per cent based on the Abuja Accord but the 2024 budget is doing less than that. Are these inspiring as you asked me earlier? I want to believe his next budget would be better.
“I hope the budget deficit does not increase times two because we have N8 trillion proposed deficit in 2024 but that may rise to about N12 trillion or double. Just write this down and keep it to around November or December when you will see a supplementary budget without revenue expectation as we have done in the last 12 years.
“You should start to see pressure from the end of the first quarter when the government compares its revenue expectations with the actual earnings; there will be a mismatch because fundamentally, there is a need for an adjustment that has not been done,” he stated.
By Adedapo Adesanya
Dangote Petroleum Refinery imported a total of $3.74 billion) worth of crude oil in 2025, to make up for shortfalls that threatened the plant’s 650,000-barrel-a-day operational capacity.
The data disclosed in the Central Bank of Nigeria’s Balance of Payments report noted that “Crude oil imports of $3.74 billion by Dangote Refinery” contributed to movements in the country’s current account position, as Nigeria imported crude oil worth N5.734 trillion between January and December 2025.
Last year, as the Nigerian National Petroleum Company (NNPC), which is the refinery’s main trade partner and minority stakeholder, faced its challenges, the company had to forge alternative supply links. This led to the importation of crude from Brazil, Equatorial Guinea, Angola, Algeria, and the US, among others.
For instance, in March 2025, the company said it now counts Brazil and Equatorial Guinea among its global oil suppliers, receiving up to 1 million barrels of the medium-sweet grade Tupi crude at the refinery on March 26 from Brazil’s Petrobras.
Meanwhile, crude oil exports dropped from $36.85 billion in 2024 to $31.54 billion in 2025, representing a 14.41 per cent decline, further shaping the external balance.
The report added that the refinery’s operations also reduced Nigeria’s reliance on imported fuel, noting that “availability of refined petroleum products from Dangote Refinery also led to a substantial decline in fuel imports.”
Specifically, refined petroleum product imports fell sharply to $10.00 billion in 2025 from $14.06 billion in 2024, representing a 28.9 per cent decline, while total oil-related imports also eased.
However, this was offset by a rise in non-oil imports, which increased from $25.74 billion to $29.24 billion, up 13.6 per cent year-on-year, reflecting sustained demand for foreign goods.
At the same time, the goods account remained in surplus at $14.51 billion in 2025, rising from $13.17 billion in 2024, supported largely by activities linked to the Dangote refinery and improved export performance in other segments.
The CBN stated that the stronger goods balance was driven by “significant export of refined petroleum products worth $5.85bn by Dangote Refinery,” alongside increased gas exports to other economies.
Nigeria posted a current account surplus of $14.04 billion in 2025, lower than the $19.03 billion recorded in 2024 but significantly higher than $6.42 billion in 2023. The decline from 2024 was driven partly by structural changes in oil trade flows, including crude imports for domestic refining, according to the report.
Pressure on the current account came from higher external payments. Net outflows for services rose from $13.36 billion in 2024 to $14.58 billion in 2025, driven by increased spending on transport, travel, insurance, and other services.
Similarly, net outflows in the primary income account surged by 60.88 per cent to $9.09 billion, largely due to higher dividend and interest payments to foreign investors.
In contrast, secondary income inflows declined slightly from $24.88 billion in 2024 to $23.20 billion in 2025, as official development assistance and personal transfers weakened, although remittances remained a key source of inflow, as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector.
This comes despite the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.
By Aduragbemi Omiyale
An application has been submitted by Sovereign Trust Insurance Plc for its proposed N5.0 billion rights issue.
The application was sent to the Nigerian Exchange (NGX) Limited, and it is for approval to list shares from the exercise when issued to qualifying shareholders.
A notice signed by the Head of Issuer Regulation Department of the exchange, Mr Godstime Iwenekhai, disclosed that the request was filed on behalf of the underwriting firm by its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities.
The company intends to raise about N5.022 billion from the rights issue to boost its capital base, as demanded by the National Insurance Commission (NAICOM) for insurers in the country.
Sovereign Trust Insurance plans to issue 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026.
“Trading license holders are hereby notified that Sovereign Trust Insurance has through its stockbrokers, Cordros Securities Limited, Dynamic Portfolio Limited and Cedar of Lebanon Securities, submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of 2,510,848,144 ordinary shares of 50 Kobo each at N2.00 per share on the basis of three new ordinary shares for every 17 existing ordinary shares held as of the close of business on Tuesday, March 17, 2026,” the notification read.
By Adedapo Adesanya
Food Concepts Plc, the parent company of fast food brands like Chicken Republic and PieXpress, has disclosed plans to pay 10 Kobo in interim dividend to new and existing shareholders for the 2026 financial year.
This was disclosed by the company in a notice to the NASD Over-the-Counter (OTC) Securities Exchange, where it trades its securities.
The notice indicated that the proposed interim dividend, which comes with no bonus, will be paid to those who hold the stocks of the company as of the qualification date for the dividend, which was Tuesday, March 24.
This means only those who hold the company’s shares as of the closing session will be eligible to receive the stipulated dividend payment.
The shareholders of the company will be credited with the 10 Kobo dividend on Tuesday, March 31.
The notice noted that the closure of the company’s register will be on Wednesday, March 25, through Friday, March 27, 2026, both days inclusive.
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