Economy
FG not considering accessing the World Bank DSSI debt relief loan – Minister

The Minister of Finance, Mrs Zainab Ahmed says the Federal Government is not considering accessing the Debt Service Suspension Initiative (DSSI) loan due to the high risks the offer comes with.
Ahmed made this known on Tuesday in Abuja at the public presentation of the 2021 budget proposal.
Ahmed said that the Federal Government had assessed the offer and reviewed the loan agreement it had with bilateral partners it borrowed from, adding that it was limited in its ability to access the loan.
“We have also had to review the loan agreements between us and commercial lenders such as the private parties that buy our Eurobonds and right now we are limited in being able to access this.
“We understand that there will be a DSSI 2.0 that is currently being considered by G-20, not only in Nigeria, there are a number of countries globally that are not able to access the DSSI because of similar limitations that we have in Nigeria.
“The risks are high, and taking the offer might trigger an incidence of default by some of the lenders, so we have to play safe and not take it.”
According to her, the good news for Nigeria is that the component of the debt service obligation Nigeria has under the bilateral agreement is very small that it can continue to manage.
She, however, said that if the next version came up and the limitations were taken into account, the Federal Government might consider it, in spite of the risks, terms and conditions for the country.
The minister said that Eurobonds issuance to fund the 2021 budget was not an option, adding that the Federal Government would consider its options carefully when it was time.
She said this was because if the domestic market would give a better yield, there would be no need to go to the international capital market.
“On the other hand, if the market offers much better yield than the local market, then we will consider that option so I cannot tell you yes or no right now, it all depends on what happens in 2021.
“There are a lot of uncertainties in the global economy and we cannot predict what will happen in the international capital market in 2021,” she said.
Giving a breakdown of the 2021 budget proposal, she said 31 per cent of projected revenues would come from oil related sources, while 69 per cent would be earned from non-oil sources.
She said that the overall budget deficit proposed for 2021 was N5.196 trillion, representing 3.64 per cent of Gross Domestic Product (GDP).
Ahmed said that the budget deficit would be financed mainly by borrowings with domestic sources accounting for N2.14 trillion, while foreign sources would account for the other N2.14 trillion.
She said that multi-lateral/bi-lateral loan drawdowns were N709.69 billion and privatisation proceeds would account for N205.15 billion.
Giving an aggregate of the 2021 expenditure, inclusive of Government Owned Enterprises (GOEs), Ahmed said N13.08 trillion. which was 21 per cent higher than the revised 2020 budget was projected to be spent.
She said that recurrent (non-debt) spending estimated at N5.93 trillion was 43.19 per cent of total expenditure and 14.32 per cent higher than the 2020 revised estimates -reflecting increases in salaries and pensions.
She said that capital expenditure of N3.85 trillion was 29.43 per cent of total expenditure and 43.4 per cent higher than the 2020 revised budget (inclusive of Capital component of Statutory Transfers, GOEs Capital and Project-tied loans expenditures).
“At N3.12 trillion, debt service is 23.88 per cent of total expenditure and is 16.63 per cent higher than the 2020 revised budget.
“Provision to retire maturing bonds to local contractors/suppliers of N220bn is 1.68 per cent of total expenditure.
“This reflects the Federal Government’s commitment to offset accumulated arrears of contractual obligations dating back over 10 years.”
A breakdown for the top 10 recurrent allocations shows that the Ministry of Defence is expected to get N840.56 billion, Ministry of Education N545.1 billion, Ministry of Police Affairs N441.39 billion, Ministry of Health N380.21 billion, while Ministry of Interior is allocated N227.02 billion.’’
Others are Ministry of Youths and Sports Development with N170.63 billion, Office of the National Security Adviser N134.1 billion, Ministry of Foreign Affairs N75.6 billion, Ministry of Agriculture and Rural Development N69.22 billion.
Office of the Secretary to the Government of the Federation N59.36 billion.
For capital expenditure, the Ministry of Works and Housing proposes to get N404.64 billion, Ministry of Finance, Budget and National Planning N382.63 billion, Ministry of Transport – N256.09 billion, Ministry of Health N211.96 billion, while Ministry of Power was proposed to get N198.28 billion.
Others are Ministry of Education with N197.411 billion, Ministry of Water Resources N152.77 billion, Ministry of Defence N121.24 billion, Ministry of Agriculture and Rural Development N110.24 billion and Ministry of Aviation N89.97 billion.
Ahmed said that the capital expenditure for the Ministry of Finance, Budget and National Planning was inclusive of N221.43 billion multilateral/bilateral project tied loans domiciled in IER and N152.4 billion transfers to the Nigerian Bulk Electricity Trading Plc. (NBET) of which N150 billion was for the Power Sector Recovery Programme (PSRP).
She said that allocations to health included the provision for the Basic Health Care Provision Fund (BHCPF), GAVI/Immunisation and counterpart funding for health programmes.
She said that the Universal Basic Education Commission (UBEC) was also included in the education allocation.
The minister said that there were selected projects captured in the 2021 proposed budget.
In the rail sector, N71.15 billion earmarked for counterpart funding for Railway projects including Lagos-Kano (ongoing); Calabar-Lagos (ongoing), Ajaokuta-Itakpe-Aladja (Warri) (ongoing).
The amount also covers Port Harcourt-Maiduguri, Kano-Katsina-Jibiya-MaradiIn Niger Republic (New), Abuja-Itakpe and Aladja (Warri)- Warri Port And Refinery /Warri New Harbour.
In the power sector, N3 billion is for Rural Electrification access programme; N160.83 billion for multilateral and bilateral funded projects (Zungeru, NEP, Abuja Power Feeding scheme and Transmission Access Project).
Others are the N200 million counterpart-fund for the Mambilla Hydro Power project and N1.5 billion for the distribution expansion programme projects to utilise the stranded power from the grid.
Ahmed said that several measures were being instituted to improve government revenue and entrench a regime of prudence with emphasis on achieving value for money.
“The goal of fiscal interventions will be to keep the economy active through carefully calibrated regulatory/policy measures designed to boost domestic value-addition, de-risk the enterprise environment, attract external investment and sources of funding.
“Improving the tax administration framework to optimise government revenue is a major thrust of the administration’s Strategic Revenue Growth Initiative (SRGI).”
The News Agency of Nigeria (NAN) reports that President Muhammadu Buhari on Oct. 8 presented the 2021 budget proposal of N13.08 trillion to the National Assembly for consideration and passage into law. (NAN)
Economy
FGN Poised To Dismantle Kidnap Economy – General Laka

From Lateef Taiwo
The Coordinator, National Counter Terrorism Centre, Office of the National Security Adviser (NCTC-ONSA), Major General Adamu Laka, has reaffirmed the commitment of the Federal Government of Nigeria (FGN) to ending kidnap economy in the country.
General Laka stated this while briefing newsmen on the activities of the Multi-Agency Anti-Kidnap Fusion Cell in collaboration with the United Kingdom – National Crime Agency on Tuesday in Abuja.
He said the centre had officially launched the State Expansion Programme of the Multi-Agency Anti-Kidnap Fusion Cell, bridging a critical gap between national security coordination and state-level tactical response.
The National Coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.
He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.
The national coordinator noted that kidnapping in Nigeria was no longer a random crime, but an industry being ran by sophisticated and well-armed criminal networks that thrive on fear and fund violence through ransoms.
According to him, the programme was aimed at dismantling that economy by connecting national strategy with boots-on-ground action.
He said the fusion cell was created in partnership with the United Kingdom’s National Crime Agency (NCA) to facilitate high-profile rescues and breaking up kidnapping rings across the country.
General Laka noted the cell had played key roles in supporting rescue operations, disrupting kidnapping networks, and improving interagency coordination.
According to him, experience has shown that while national coordination is crucial, state-level engagement is also indispensable.
“Too often, real-time intelligence, local knowledge, and operational readiness reside with field commands, while national coordination can only succeed when it is informed by ground realities.
“This is the primary purpose of this programme – to close the gap between national-level coordination and state-level response. Essentially, to build direct operational linkages between the Cell and state commands across the country,” Laka said.
Economy
Food Security: Sanwo-olu Commended Over Launch of ₦500bn ‘Produce for Lagos’

The Good Governance Campaign Forum (GGCF) has praised the Lagos State Government for launching the “Produce for Lagos” programme, describing this initiative and its ₦500 billion Offtake Guarantee Fund as a brilliant solution to the food insecurity challenges the nation faces.
The Forum issued this commendation in a statement signed by its Coordinator, Rahman Suleiman, on Wednesday, following the official unveiling ceremony of the program earlier in the week.
The program aims to transform Lagos’ food system and reduce the state’s dependency on external food sources, receiving positive recognition both within and outside the state for the Sanwo-Olu-led government’s efforts.
According to Suleiman, the initiative is timely and represents a pioneering collaboration between the Lagos State Government, the private sector, the Lagos Food Systems Infrastructure Company (LAFSINCO), Ekolog, and the Lagos Bulk Trading Company. He noted that this model is designed not only to enhance food production and logistics across the state but could also serve as a scalable framework for improving livelihoods and national resilience.
Suleiman shared insights from the Forum’s sampling of public opinion in Lagos and other states, indicating that people are pleased with the Lagos State Government’s strategic programs aimed at tackling hunger and starvation. He emphasized that a key component of the “Produce for Lagos” program is its data-driven approach, which will help address agricultural inefficiencies and strengthen value chains.
“Food security is a collective responsibility that we cannot afford to neglect as a nation,” Suleiman stated. “We are grateful to God for providing us with a leader like Sanwo-Olu, who is visionary, forward-thinking, and compassionate toward ordinary people.”
He commended Governor Sanwo-Olu for consistently setting benchmarks and leading by example in subnational governance. These achievements underscore the economic growth, infrastructural development, and urban planning efforts of the Lagos government.
“Governor Sanwo-Olu is a trailblazer; he has done exceptionally well, and we fully support his programs and policies. His work over the past six years speaks for itself,” he added.
Suleiman noted that this initiative, a partnership between the state government and the private sector, is expected to significantly boost agricultural production.
During the launch, Governor Sanwo-Olu also announced the deployment of a fleet of 150 cold and dry trucks—the largest of its kind—in partnership with the private sector.
Business mogul Tony Elumelu, who supported the project with ₦25 billion, stated that food security is crucial and expressed satisfaction with the collaboration between Lagos and other participating states.
Other prominent individuals at the event included Amir Kamel, Vice President of Afreximbank, and Michel Deleen, the Consul General of the Kingdom of the Netherlands, among other dignitaries.
Economy
Constitution Amendment: Group Urges NASS, FG To Prioritise Restructuring, Regionalism

… rejects the creation of new states
A prominent youth organization, the Youth Bureau, has urged the National Assembly to prioritize genuine restructuring of Nigeria, emphasizing regional autonomy and the establishment of State Police without further delay. This call comes as the legislature reviews the nation’s constitution.
The demand was articulated in the group’s Position Paper presented to the National Assembly Committee on Constitutional Amendment for the South-West Zone, which convened recently in Lagos.
In a statement signed by its Southern Coordinator, AbdulRahman AbdulRazaq, on Thursday in Lagos, the Youth Bureau also rejected calls for the creation of new states. The group warned that the Supreme Court’s judgment on local government contradicts their position, asserting that its implementation should be set aside. They believe only the State Government should have the authority to create local governments.
AbdulRazaq urged President Bola Ahmed Tinubu to prioritize comprehensive restructuring, as it is fundamental to effective governance and development. He encouraged the National Assembly Committee on Constitutional Amendment to make bold decisions that will have a positive impact on the populace.
He pointed out that the regional governments established in the late 1960s in Nigeria facilitated healthy governance and development, particularly under the Action Group government led by Chief Obafemi Awolowo in the Western Region. During that period, significant advancements were made in free education initiatives, healthcare infrastructure, industrialization, and overall infrastructure growth.
AbdulRazaq noted that the abolition of regional autonomy by the late General Aguyi Ironsi led to a unitary system of government, which resulted in excessive concentration of power in the central government, a lack of adherence to the rule of law, and restricted resource control and financial autonomy for the regions.
The Youth Bureau’s position paper includes the following demands and recommendations for the National Assembly Committee on Constitutional Amendment:
Our Demands
We urge the National Assembly Committee to consider the following:
- Genuine restructuring of the country based on regional autonomy.
- No need for the creation of additional states.
- The formation of State Police without further delay.
- Recognition that local government is a component of state government; the Supreme Court’s judgment on local government contradicts this principle, and its implementation should be set aside. Only the State Government should have the authority to create local governments.
Conclusion
We believe that a decentralized governance system founded on devolution and decentralization will ensure political and fiscal autonomy for its component units and promote equity among them. We urge President Bola Ahmed Tinubu to prioritize comprehensive restructuring and encourage the National Assembly Committee to make bold decisions that positively affect the citizenry.
Recommendations
- Decentralize governance in theory, practice, content, and character.
- Ensure equity among the component units.
- Guarantee political and fiscal autonomy for the regions.
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