Governor of Lagos State, Mr. Babatunde Fashola on Wednesday proposed a budget of N489.690bn for the year 2014 before members of the State House of Assembly.
The budget proposal, which he described as zero-deficit, is made of Recurrent Expenditure at N234.665bn and Capital Expenditure at N255.025bn with a Capital to Recurrent ratio at 52:48 as against 58:42 in Year 2013. According to Fashola, this is a budget of consolidation.“As I promised last year about reducing our deficit, a zero deficit financing requirement is proposed for Y2014,” he said, adding that General Public Service takes N100,215,966,990bn or 20.47 per cent, Public Order and Safety takes N17,977,368,027bn or 3.67 per cent, Economic Affairs takes N160,046,436,169bn or 32.68 per cent, Environmental Protection takes N39,727,711,248bn or 8.11 per cent, Housing and Community Amenities takes N50,537,201,984bn or 10.32 per cent.
Also, Health takes N37,812,553,057bn or 7.72 per cent; Recreation, Culture and Religion takes N3,482,081,806bn or 0.71 per cent billion, Education takes N77,423,827,872bn or 15.81 per cent, and Social Protection takes N2,466,309,939bn or 0.50 per cent.Delivering the budget presentation speech at the chambers of the Assembly, Fashola said that every time he has had the privilege to present a budget for the State, he did so with a lot of pleasure and with a deep sense of responsibility for the expectations that the budget raises for the people that things will get better.
“Year after year, we have met those expectations and things have got better. That feeling of pleasure and the sense of responsibility is no less different today as I present our budget proposals for 2014,” he said.
“As far as responsibility goes, it is incumbent upon me to report how far we have implemented the 2013 budget as proof, if one is needed, that budgets are important for us, and that we do our best to keep the promises that we make.
“Many will recall that we were the first Government at any level to begin the quarterly reporting of budget performances in this democratic dispensation and this year has not been an exception since we started the practice in 2007.
In the first quarter of this year, I reported a budget performance of 61 per cent, while the second quarter performance was 83 per cent and the recently reported third quarter performance was 70 per cent giving us a cumulative aggregate performance of 71 per cent.”
He expressed the commitment of the government to improving upon the fourth quarter performance and ultimately the total year 2013 budget performance, but gave explanations on why the performances he just reported were not exceeded.“Let me start by saying emphatically, that budget implementation in Lagos is no longer a matter of capacity. We have a highly resourceful and well-motivated workforce in the public service; budget implementation is constrained by the limitation of financial resources. As our population continues to grow, the provisions that we require to support them and meet their expectations are also growing. Regrettably, the financial resources are not growing at the rate of our people’s expectations.
“While I salute those who pay their taxes and whose contributions have helped to continuously develop our state by taking our destiny in our hands, I urge those who are yet to start paying to do so. It is a commonwealth that gives everybody a chance to realize their aspirations. It requires a common contribution to make it sustainable. While our tax contributions have helped to reduce our dependence on the Federal Government monthly FAAC remittance, to about 35 per cent of our financial needs, that 35 per cent is still critical. The recent inefficiencies that States have experienced in the process of Federal Government agencies accounting for revenues and the consequent delays in remittances owing to disputes over accounts have affected all States in different degrees.
“While salaries were delayed in other states; happily, that did not happen here, but the effect was felt in a slight reduction of our third quarter budget performance. This state of affairs, of delays in the discharge by Federal Government agencies of their responsibilities compels me to make a comment about the recent announcement by the Federal Government that a $200m World Bank loan had been approved for Lagos to fund capital projects such as the Light Rail, Adiyan Water Works and so on.
“While I thank them for finally giving the approval, it is instructive to contextualize the timing of the approval. You might all recall that in 2010 when I presented the year 2011 budget, I announced that we had negotiated a World Bank loan for $600m to fund a three-year medium term expenditure framework for years 2011, 2012 and 2013 which required Federal Government approval.
“Although the approval for the loan was given then and the year 2011 first tranche for $200m was released in that year, the year 2012 and 2013 tranches were frustrated by Federal Government agencies. It is the year 2012 component and year 2013 component that is now being approved in the last quarter of 2013.
In truth and in fact, our state’s development was held up and slowed down for two years.“Progress on the Rail was held back, supply of additional 70 million gallons from Adiyan Water Works was slowed down, progress on Lagos Badagry Expressway was slowed down. Improvement in the quality of life of Lagosians was slowed down. But we did not sit idly by and moan. We are the Centre of Excellence. Our tax payers’ contributions were our inspiration. We went to the financial market to raise money, knowing that our state is solvent. So the projects such as Lagos Rail, Adiyan Water Works have started and the Lagos-Badagry Road progresses, even though the approval is just coming.”
Fashola lamented that the state has had to borrow money at shorter tenures of seven years and higher interest rates of 17 per cent and 14 per cent, instead of 1 per cent and 40-year tenure, which the delayed World Bank loan offered.
“But nevertheless, our spirits are high, the high interest costs notwithstanding; I am pleased to report progress on these construction sites which provides employment for 1000 workers on the rail project and 500 workers at Adiyan Water Works. The promise of reliable rail transport system for Lagos and an additional 70 million gallons per day of water when Adiyan is completed makes it all worthwhile.
‘Ti eni be igu loju. Igi ma ru we’.“As if all these were not enough, FERMA, another Federal Government agency, is threatening to start collecting fuel levies, which is a matter within the residual revenue authority of the state. As I have said before, we will resist this incursion by taking legal action to stop the desecration of our fiscal federalist principles.
“Distinguished ladies and gentlemen, in spite of the slowdown, whether by commission or omission, I am pleased to report that ‘Eko o ni baje!’ Our dear state is making progress on all fronts. Except for our cynical opponents who need ‘jigi Bola’ to see the progress, the overwhelming consensus within the state, outside the state and all over the world, is that Lagos is working. Our commitment to Power, Agriculture, Transportation and Housing is manifesting incredible results.
“We have just commissioned the 10mw Alausa Power Plant, which I promised in my budget speech last year. In the aftermath, we have de-commissioned over 120 generators and our secretariat is now on its own dedicated electricity power, run on clean gas fuel. It is the first government secretariat that I know of in our country that has its own dedicated IPP. We have also extended street lighting earlier in the year to Ikorodu Road from Jibowu to Anthony, as we have done across Lagos including 12 streets in Alimosho, and on Carter Bridge to mention a few.
“In total, we have now provided about 70km of street lighting across Lagos, to improve safety and stimulate our night economy.
We have dedicated the month of October as our Energy Month, during which we have commenced an energy saving initiative and just yesterday we flagged off a clean cooking energy initiative of Liquefied Petroleum Gas (LPG) to reduce wood cutting.“We are in the process of converting the remaining functional generators to LPG fired generators, which will save us 50 per cent in fuel costs. Pole by pole, IPP by IPP with Lekki and Ikeja GRA IPPs to come next year, we are committed to lighting up Lagos. In the area of Agriculture, we are gradually inching towards our objective of improving on food security. The governor of Ogun State graciously approved land for us pursuant to my request as I promised in 2011.
Although I told you that our rice cultivation moved from 20 hectares to 250 hectares and that we were targeting 500-hectare cultivation, I am pleased to report that we are now cultivating 850 hectares of rice and we are milling at our Imota Rice Mill.“From our farm in Araga, in Epe, we are now producing 150,000 eggs per day, translating to over 50 million eggs a year. Our fish and poultry farming programmes are empowering young and old farmers and agriculture has become a business as well as a strategic security initiative in our state. We are determined to also improve the quality of nutrition available to our citizens especially beef. Accordingly, the Ministry of Agriculture is acting appropriately to restore best practices to cattle rearing, slaughter and processing, including the sanctioning of operators of illegal abattoirs. We are not only enforcing, we are also training. This is why we sponsored 35 cattle dealers and butchers in Oko-Oba Abattoir on a training excursion to Kenya and Bostwana to sensitize them about the vision for cattle and beef production standards that we think our citizens deserve.
“As we embrace these standards, things can only get safer, businesses can only get stronger and opportunities will certainly expand for jobs and jobs seekers, if we move from sub-optimal practices to global best practices. As we deal with increasing capacity in the production of carbohydrates sources such as rice and cassava, and protein sources such as fish, poultry and beef, fruit and vegetable production are also increasing within the State in Araga Epe and from our farm in Osun state.”According to the governor, Lagos is also providing ready sales outlets and guaranteed market in farmers marts, which first started in Alausa and has now extended to Ajah and Surulere with a further three coming up in Shomolu, Ikorodu and LASU. He added that public transportation, the state’s biggest challenge, is by many parameters one of our biggest successes, as the history of the world shows that many cities and states often address one major transport solution at a time.
“The Boston Road Tunnel, the Mumbai Mono-Rail and the Madrid Bypass Calle 30 are examples of transport solutions individually undertaken in cities.
In this area, our state has set an unprecedented record of five simultaneous transport solutions undertaken by one government, from the 40.5km Lekki-Eti-Osa Epe Expressway, to the 61km Lagos Badagry Expressway, the 13.5km Mile 12-Ikorodu Expressway, the 27km Okokomaiko-Marina Lagos Blue Line Light Rail; to the ferry terminals in Ipakodo, Osborne, Badore, Mile 2-Ebute Ojo, it is obvious that your government has its hands full and remains committed to developing first class multi-modal transport solutions befitting of the economic and financial capital of West Africa. In the area of traffic management, about 2,406 personnel of LASTMA have been in intensive training for almost one year, and have written competence examinations and they are now set to graduate with a new ethos to traffic management.“Junction by junction, the number of traffic light installations are increasing and kilometer by kilometer, lane marking and traffic signs are appearing on our roads to make motoring a safer experience. We are encouraged that these solutions are working because of the feedback we get from citizens. On Friday 25th October 2013 a citizen sent me a text message saying: ‘The traffic light at Ojuelegba has been adjusted. No more hold up.’ As far as road repairs are concerned, the Public Works Corporation is building three new asphalt plants in Ojodu Berger, Ikorodu and Ajido Badagry to increase the speed of response to repair potholes; and the Ministry of Works is currently executing over 200 inner city road projects, which I promised in my budget speech last year.”
While he stated that it is impossible to list all the roads in the address, it was important to mention completed or ongoing works, such as:
Ago Palace Way in Okota
Salabiu Olanrewaju in Epe
Ado Kekere in Ajah Badore
Medical Road/Kodeshoh in Ikeja
Igi Olugbin in Somolu
Adetola Road in AgudaSinari Daranijo Street in Victoria Island
Glover Road in IkoyiIsaac John/John Ogunnaike in Ikeja
Balogun Amodu/Alhaji Dodoyowa in Ejirin Epe
Awolumate/Oguntande Street in Ifako Ijaiye
Showonuola Street in Agege
Akinola/Victor Fagbemi/Kollington/Imulokanle in Alimosho
Okusanya/Kufeji/Idowu Williams/Olaniyi at Ifako Ijaiye
Roundabout to Moshalashi/Ipaja/Ayobo Road in Alimosho
Bamgbose/Lewis, Alakoro, Marina/Kosoko Roads in Lagos Island
Orile Ilasan/Iroko Awe Road in Eti Osa
Continuing, the governor said: “In addition to these, there are bridge works in Ajao Estate, Agiliti, Tedi and Ijegun which are at different stages of construction and making progress towards completion. I have also recently approved the commencement of another 25 roads and as these roads and bridges are being completed, we expect to see improved connectivity and improved journey times.
Happily, the Lagos Traffic radio continues to remain the City’s favourite source of advance traffic information, while the Lekki-Link Bridge has achieved its iconic design purpose by becoming a favoured destination for residents and visitors alike and in the same vein is successfully performing its travel time reduction objective.“In response to public appeal, and after extensive consultations, our party the APC and our government have acquired the concession rights to the Lekki-Eti-Osa Expressway with the approval of the House of Assembly and plans are underway to complete the due diligence and takeover of the assets and to complete the road.
I am also happy to report that one year after its implementation, the Traffic Law has recorded huge successes in its life and property saving objectives.
Traffic accidents have reduced from 646 reported accidents in August 2012 to 118 reported accidents in July 2013, and deaths from motorcycle accidents have reduced from an average of 12 per month to one per month and indeed no deaths were recorded in August, September, and October.“We are concluding plans to implement the next phase of the Law, and we have been working with the Transport Unions to sensitize them. But before I move to housing; a little but serious word must be said about the Traffic Law.
Let me reiterate that out of over 10,000 roads in Lagos, the law restricted motorcycles from plying only 475, which are highways, if such motorcycles were not up to the 200 cc capacity. The law also provided that in the over 9,000 roads where there is no restriction, the riders must wear safety helmets and not carry more than one passenger.“While I must commend the operators for largely complying, I cannot say the same for a few law enforcement agents and few military personnel who have either turned enforcement into an extortionist exercise for money or have seen themselves as above the law by violating our traffic laws and BRT Laws. Let me say to them clearly, that it is bad enough if law enforcement personnel violate the laws they are constitutionally paid to enforce; it is the height of impunity if they do so in uniform. That uniform is the symbol of the authority of the state and it is funded from tax payers’ money. I have news for those bad eggs who give law enforcement a bad name in this country. We will bring you to justice and make examples of you; before you bring dishonour to these timeless institutions that have produced officers and true gentlemen.
“In the area of housing, I will not take more time than is necessary. I will only state that the LagosHoms programme is on course. Many of our housing units are making progress on 15 different construction sites, employing a total of 7,757workers, in Shitta, Gbagada, Ajara, Ilupeju, Sangotedo, Igbogbo, Mushin, and Omole to mention a few. At least 3,192 housing units will be added in the first quarter of 2014 to the already completed 1092 units.
“We intend to commence more developments to ensure that there is no shortage of supply once we start the allocation process. Apart from Power, Agriculture, Transport and Housing, we have not relented in other sectors. Our commitment to improving on the successes we have made in the area of security remains at an all-time high. We are consistently breaking up criminal gangs, arresting their members, recovering illegal arms and effecting seizures of hard drugs.”
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Gunmen believed to be kidnappers attacked a commercial vehicle belonging to Benue Links, the state-owned transport company.
About 17 candidates travelling to Otukpo for their examination centres in the ongoing Unified Tertiary Matriculation Examination (UTME) are feared to have been abducted, although the exact number of victims remains unclear.
Information available to our correspondent says that the incident took place between 7–8 p.m. on Wednesday, April 15, along the Benue Burnt Bricks in Otukpo, Otukpo Local Government Area (LGA) of Benue State.
According to sources, the assailants waylaid the bus and robbed the occupants of their belongings before whisking them away into the bush.
An eyewitness, who spoke to journalists on the condition of anonymity, said the Benue Links bus, which was conveying about 18 passengers, ran into the kidnappers at about 8:00 p.m. on Wednesday night.
“The passengers were mainly young persons heading to Otukpo to sit for the JAMB examination scheduled for Thursday.
“Two people, the driver and one passenger, managed to escape. Incidentally, the passengers were mainly young men and women who travelled to sit for the JAMB examination scheduled for today (Thursday),” he said.
When contacted, the General Manager of Benue Links, Mr Alexander Fanafa, confirmed the incident, noting that the driver of the bus is presently undergoing interrogation at the police station in Otukpo for violating the company’s safety policy not to travel beyond 6:00 p.m.
He said, “As I speak with you, the driver has been arrested and is under investigation for traveling against company directive. I have warned all drivers to stop night journeys, as they would be held as first suspects if anything unfortunate happens.”
The General Manager further stated that the driver took his vehicle and loaded the passengers who were heading to Otukpo after official hours when the park manager, Mr Amedu, had closed, and ran into trouble, so he has been arrested.
The Executive Chairman of Otukpo Local Government Council, Prince Maxwell Ogiri, confirmed the incident, saying that it occurred between 7 and 8 p.m. on Wednesday.
He added that security agents have been mobilized to rescue the victims, stating that the victims are all young people coming to Otukpo to write JAMB examinations.
“It is true, I’m just coming out from a security meeting, and security operatives have been moved into the forest to help rescue the kidnapped victims.
“The victims are mainly young boys and girls coming to Otukpo to write JAMB,” Ogiri said.
However, when contacted, the Benue State Commissioner of Police, Ifeanyi Emenari, confirmed the situation, but said 14 passengers were kidnapped, while one passenger escaped.
The commissioner disclosed that he had already arrived in Otukpo and is conducting the rescue operation.
“I am in Otukpo now with all my team and DPOs who are here in the bush, and I am heading the operation.
“What happened was that one Benue Links bus carrying passengers coming to Otukpo was stopped and attacked by hoodlums, and 14 passengers were kidnapped, but one was able to escape,” he said.
According to him, the command had commenced an investigation into the incident, particularly the circumstances surrounding the journey.
He maintained that Benue Links management has a policy against night travel, but the driver allegedly picked up passengers after official hours.
“We know that Benue Links has a policy and don’t usually drive at night. So from what I got, they have already closed, but the driver, for reasons best known to him which we are still trying to find out, picked passengers along the road, and when he came here, the story you have is what we are having.
“But as we are investigating, we are on the ground to make sure that the victims are rescued,” Emenari said.
News
There are governments that save for the rainy day, governments that prepare for the storm, and governments that, when the heavens open and money falls like tropical rain, rush outside with buckets full of holes. Nigeria, under President Bola Tinubu, has perfected a fourth category: the government that borrows during a windfall. It is a feat of fiscal acrobatics so astonishing that even the most cynical observers of Abuja’s budgetary theatre must pause in admiration. For decades, Nigeria has squandered oil booms with the reliability of a metronome. But this administration has achieved something more ambitious: it has managed to squander a boom before it even finishes arriving.
The US–Iran war has sent oil prices soaring to $115 per barA Government Addicted to Debtrel, nearly double the government’s benchmark of $64.85. Nigeria is earning an extra $92 million every single day; a torrent of unbudgeted cash that would make even the most jaded petro state accountant blush. In barely a month, Abuja has pocketed almost $3 billion in windfall revenue. If the conflict drags on, the country could rake in $30–$36 billion this year alone. And what has the Tinubu administration done with this unexpected bounty? Why, it has gone on a borrowing binge, of course.
In the past week alone, the National Assembly approved: a $5 billion loan from First Abu Dhabi Bank; a $1 billion UKEF backed loan for Lagos ports; a $6 billion external borrowing package, rubber stamped in under four hours, and a N68.323 trillion budget; the largest in Nigeria’s history. This is not fiscal policy. This is a national credit card with no spending limit. Nigeria’s public debt now hovers around $115 billion, and debt servicing will gulp N20.5 trillion in 2026; more than the budgets of health, education, and infrastructure combined. Yet the government borrows as though it were a teenager discovering online shopping for the first time. One might have expected that a historic oil windfall would inspire restraint. Instead, Abuja behaves like a gambler who wins the lottery and immediately takes out a loan to buy more lottery tickets.
The Senate: From Upper Chamber to Upper Cashier
The Senate’s role in this farce deserves special mention. Once conceived as a check on executive excess, it now functions as a conveyor belt for presidential loan requests. The $6 billion borrowing package was approved with the speed of a fast food order; no debate, no scrutiny, no hesitation. Former Vice President Atiku Abubakar, hardly a stranger to Nigeria’s fiscal melodramas, described the approval as “reckless urgency.” He is being polite. The Senate has not merely abdicated oversight; it has embraced its new role as a ceremonial stamp of approval, a kind of legislative rubber chicken waved over every loan document. One wonders whether senators even bother to read the fine print anymore, or whether they simply check the exchange rate, sigh, and sign.
The Oil Windfall That Will Not Be Saved
Other countries treat oil windfalls as blessings. Norway built a sovereign wealth fund so large it could buy entire countries. Saudi Arabia uses its surpluses to diversify its economy. Even Angola; long mocked for its corruption, has learned to stash away a portion of its oil riches. Nigeria, by contrast, treats windfalls as invitations to spend more, borrow more, and plan less. The Excess Crude Account, once envisioned as a rainy day fund, is now emptier than a politician’s promise after election day. The Sovereign Wealth Fund is a polite fiction. And fiscal discipline is a rumor whispered in the corridors of the Ministry of Finance. The tragedy is not that Nigeria is poor. The tragedy is that Nigeria is mismanaged.
The revised N68.323 trillion budget is a monument to fiscal optimism. It allocates N15.8 trillion to debt servicing; N15.4 trillion to recurrent expenditure, and N32.2 trillion to capital projects, many of them rolled over from previous years because the government failed to implement them. This is not a budget. It is a wish list. The government insists that the spending spree will “stimulate growth,” “unlock infrastructure,” and “stabilize the economy.” These are the same phrases Nigerian governments have used since the 1970s, usually moments before the economy collapses under the weight of its own contradictions.
Borrowing to Service Borrowing
The most farcical element of the Tinubu administration’s fiscal strategy is its reliance on borrowing to service existing borrowing. Nigeria now borrows to pay interest on previous loans, borrows to refinance old debts, borrows to fund recurrent expenditure, and borrows to cover budget gaps. This is not fiscal management. It is a Ponzi scheme with national colors. The administration insists that the debt is “sustainable.” So did Greece in 2008. So did Argentina in 2001. So did Nigeria in the 1980s; right before the IMF arrived with structural adjustment programs (SAP) that Nigerians still curse today.
Nigeria’s economy is a house built on sand: the naira remains fragile, inflation is suffocating households, foreign investors are fleeing, debt service consumes most of national revenue, oil production is unstable and non oil revenue is anemic. And yet, in the middle of this storm, the government has chosen to borrow more; at a moment when it should be saving aggressively. The oil windfall is a gift. But gifts require stewardship. And stewardship requires discipline. Neither is in abundant supply in Abuja.
Conclusion: A Nation at the Edge of a Fiscal Cliff
The expanded budget includes lavish allocations to the judiciary ahead of the 2027 elections, feasibility studies for politically convenient infrastructure, and capital projects that conveniently align with electoral maps. This is not economic planning. It is election year choreography. Nigeria is not being prepared for the future. It is being prepared for the polls.
The Tinubu administration inherited a difficult economy. But it has chosen to make it worse. Instead of using the oil windfall to rebuild reserves, strengthen the currency, reduce borrowing, and stabilize the economy, it has embarked on a reckless spending spree financed by loans that future generations will be forced to repay. Nigeria is earning billions, and saving nothing. And it is borrowing everything. History will not be kind to this moment. Nor will the bond markets. In the end, Nigeria’s tragedy is not that it lacks resources. It is that it lacks restraint. And in Abuja today, restraint is as scarce as electricity.
Business
In The Spotlight
On Friday, Nigeria’s Defence Headquarters confirmed the death of the Commander of the 29 Task Force Brigade in Benisheikh, Borno State, Brigadier General Oseni Braimah, and three other soldiers, following a ruthless attack on the military formation. Though this confirmation calmed initial reports that more than 17 soldiers were killed in the April 9, 2026 attack, it, however, ignited a deeper cause for concern among Nigerians, considering the fact that just about five months earlier, another brigadier general, Musa Uba, was murdered in cruel but avoidable circumstances near Wajiroko, in the same Borno State.
The attack on the military formation was not the only terrorist strike that week. That same Thursday, the devastating news of the soldiers who paid the supreme price had not been fully digested when another report filtered in, at night, that no fewer than eight persons had been killed by gunmen, in Mbwelle village, Bokkos Local Government Area of Plateau State. This was besides the bloodshed recorded in Shanga Local Government Area of Kebbi State on Easter Sunday, where 24 people were killed, according to the Kontagora Catholic Diocese, and in Kebbi and Kwara states, where 49 villagers were reportedly killed on Friday.
Despite the confusion, mourning and grief that followed the killing of these helpless civilians in various communities, described by authorities as some of the deadliest incidents recorded in recent months, the report of the military formation invasion and the killing of soldiers specifically caused panic attacks among citizens and gave a “hopeless situation” slant to the worsening security crisis. And this has become a trend since the beginning of the Boko Haram insurgency in 2009.
It is true that Nigeria’s security forces under the current administration have been dismantling bandit networks and killing scores of terrorists. But the relentless attacks on innocent citizens, which have led to the death of over 10,000 people in two years, and the kidnapping of more than 1,100 people in northern Nigeria, in just four months, appear to have enveloped security agencies’ efforts and boxed the current All Progressives Congress administration into a more precarious corner than previous opposition governments.
A few analysts have tried to compare the security situation under the late former President Muhammadu Buhari with the situation now. While some scored the President Bola Tinubu administration above his predecessor’s, others like Olu Fasan, in his article: “Recurring bloodbath: Nigeria is too fragile, too fractured to be safe”, said, “It has taken Tinubu less than three years in office to achieve a worse security situation than Buhari did in (his) eight years in power.”
I may not directly agree with this notion, but I know that the prevailing economic hardship or widespread poverty in the country, despite significant, growth-targeted policy reforms like exchange rate unification, subsidy removal, and fiscal coordination, can be justifiably linked to rising insecurity.
The Nigerian Institute of Social and Economic Research, in a 2024 study brief, titled: “Insecurity takes the lead as the key driver of poverty in Nigeria”, said, “Once a country experiences conflict and insecurity, it faces a reversal of economic development, which in turn increases the likelihood of further conflict, resulting in a cycle economists refer to as doom-loop. By undermining household livelihood activities on massive scales in Nigeria, increasing insecurity in the last five years has not only intensified poverty in the country, but has also opened up new frontiers of multidimensional poverty across Nigeria.”
Insecurity, according to NISER, drives poverty by disrupting and destroying livelihood activities and by reducing access to basic needs, thereby stifling meaningful improvement in the quality of life in Nigeria. This argument can be better appreciated if one considers how many Nigerians have abandoned leisure or commercial farming, especially in rural areas, owing to rising insecurity.
It would be unfair to pin the blame for this lingering crisis on the current administration; past governments were not also able to do much to stem the tide. But the fact that political IOUs seemed to have trumped competence during the initial formation of President Tinubu’s cabinet inadvertently gave room for unpalatable political treatment of delicate security matters across the states.
The Ministry of Defence, according to analysts, was the worst hit until recently, as analysts found it difficult to decode the consideration behind the choice of the two ministers who were initially saddled with such a priority responsibility. Perhaps, if the issue of security had been given the kind of attention it is being given now, from the beginning of the current administration, the terrorists might not have been this emboldened amid international focus.
The result is that, unlike when Nigeria was ranked the Number One Destination for Investment in Africa for two consecutive years (2012 and 2013), other African countries have, since then, continued to displace the nation, owing to a combination of factors, including accessibility and innovation, economic stability and investment climate, among others.
Of the 31 countries that were tracked in the 2024 edition of the “Where to Invest in Africa” report, published by Rand Merchant Bank and the Gordon Institute of Business Science, Nigeria was ranked as the ninth most viable destination for investment in Africa, behind South Africa, in fourth position; and Ghana, sixth. The 2025 report sadly reflected a further decline for Nigeria, by nine places, to the 18th position.
It doesn’t take an economist to understand that banditry, kidnapping, killings, among other forms of security crisis being witnessed on a large scale in Nigeria, can seriously damage the investment climate and trigger capital flight. Any government that picks the socio-economic well-being of its citizens as Number One on its priority chart must, therefore, go all out to first ensure the security of lives and property, against all odds.
That the Federal Government has published a list of 48 individuals linked to terrorism financing is a step in the right direction. That it has also secured 386 convictions, out of 508 cases in a mass terrorists’ trial, is another feat that can deter others and stem the tide, but politicians must, in the interest of the masses and the well-being of the nation, stop playing politics with this sensitive issue of insecurity.
Rather than mock or blame the APC administration for the current predicament, opposition figures and Nigerians as a whole must converge on the need to be united against this monster. However, the Tinubu administration must also avoid actions or statements that could trigger a revolt at this period. With the economic challenges from almost every angle, Nigerians seem to be constantly on edge.
In March 2014, the APC, then the main opposition party, lambasted the former President Goodluck Jonathan administration for trying to cover up its “incompetence and cluelessness” in tackling the Boko Haram insurgency.
The APC, in a statement signed by Lai Mohammed, its interim National Publicity Secretary at the time, said, “A country that has no discernible counter-terrorism strategy that will clearly identify the multiple means for preventing, responding and defeating terrorist groups, including the alignment of political, military, social and economic instruments and objectives, cannot expect to successfully battle any insurgency.”
Now that the APC is the ruling party, and Nigeria is still not out of the woods, should citizens still agree with the party’s assertion? How the authorities handle the situation will determine the answer. What goes around comes around!
In The Spotlight
Nearly 40 years ago in London, I was invited to dinner by a Nigerian woman I knew in Lagos.
She had described the place in general terms, but I arrived at an upscale home with some serious luxury. She was kind enough to show me around, and following a stylish dinner, she described how she had acquired the place, mentioning headline Nigerian names.
I had no reason to doubt her: some of them called during the evening. I declined her offer to share her conversations with them.
It was my personal introduction to the scale of Nigerian property in the English capital, as she described who owned what or lived where.
While my visits to England at the time were work-related and I had little time to socialise, I did meet several teenage Nigerian students whose parents were glad to send them abroad for education.
They patrolled the streets of London in exotic cars, and I thought it was ironic that, in isolation away from Nigeria, the young ladies were often being manipulated by their fathers’ friends.
In the decades that followed, I read stories of politically exposed Nigerians, particularly state governors, for whom the UK was the first address in money laundering.
On a few occasions, I have alluded to that phenomenon in this column. They acquired expensive homes, cars and even gold phones. One, Diepreye Alamieyeseigha, fled London disguised as a woman. Another, James Ibori, was tried and jailed.
Keep in mind that there have been about 185 governors since May 1999, and that London is nearly always their first port of call.
It is humbling to reflect on what percentage of this number has, in the past 26 years, sunk Nigerian wealth into the soil of England, with considerable swathes lost to middlemen and smooth women.
Remember: in 2006, the then-Minister of State for Finance, Nenadi Usman, criticised governors, saying that they disappeared abroad just days after receiving state allocations and after visiting Bureau De Change operators.
In 2007, a famous Human Rights Watch report, “Chop Fine,” described the case of Rivers State in grim detail.
The problem is that it is not always governors, as demonstrated by the story, “Abuja on Thames,” which appeared in the British monthly, Private Eye, in March 2019. That month, I commented on that story, which involved the astonishing wealth in that country of Paul Ogwuma, a former governor of the Central Bank of Nigeria.
The full Nigerian picture of capital flight, elite consumption, and political patronage was on display when the Panama Papers in 2016 and the Pandora Papers in 2021, two massive international media investigations in which our Premium Times participated, uncovered how the world’s rich and powerful deploy offshore mechanisms to hide their possessions.
As always happens, no Nigerian lost a kobo, let alone a heartbeat, as a result of those investigations, because in Nigeria, crime and hypocrisy quite literally pay.
And then in 2024, a list appeared of 58 deceased Nigerians with unclaimed assets in the UK, as part of a daily-updated “Bona Vacantia” (BV) list, meaning that having remained unclaimed, they are now considered the property of the Crown.
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The Nigerian government does not inform Nigerians about the BV list or the claims process, so those properties are probably lost forever.
Remember also, the case of Nigerian “government” property on the verge of forfeiture in the UK a few years ago. In New York and Maryland, in the US, Nigerian governors and diplomats have left behind a long trail of property issues. In 2012, Alamieyeseigha forfeited $401,931 in traceable assets to the US government when President Jonathan’s government failed to claim them.
And so, the rich continue to flourish, and in January 2026, Tax Policy Associates of the UK published the extensive investigation, ‘Who secretly owns Britain? The hidden offshore owners of £460bn of UK property.’
A report in The Londoner, based on that investigation, peeled back the layers to link the late Herbert Wigwe, the former chief executive of Access Holdings, to about 106 properties. That placed him at No. 7 on a list of “The overseas power players in London’s property market,” with each property registered under shell companies outside the country, leaving none of them directly traceable to him.
While some of these practices are legal, especially on the part of private businessmen, the problem is that Nigeria has, for decades, been burdened by an army of much smaller ants eating away at her. Most of them are pillars of society, either claiming sainthood or praying for it, while the people from whom they amassed their wealth starve to death.
But there is another side: in Nigeria, the Tax Policy Associates investigation, like the arrests of Dariye and Alamieyeseigha and the trial of Ibori, would have been impossible.
“Abuja on Thames” would never have been investigated or published. Not the Pandora Papers. Not the Panama Papers.
Because we are traders. We are either buying or selling. When the aroma of money or power is present, some would sell their very souls. It is why we are where we are.
The system, of course, is in many ways pre-rigged. On real estate matters, we operate a fragmented administrative system with multiple overlapping authorities, incomplete digitisation, and overwhelming opacity. The FCT and state capitals are stories of greed.
This is because the Land Use Act vests all land in each state in the governor (and the President for the FCT). This means that, technically, no one “owns” land outright; one only holds a Certificate of Occupancy. That creates enormous scope for discretionary allocation and corruption, since governors and the FCT minister can grant or revoke rights, and often do.
This is why an FCT minister is a king. He can allocate land to whomever he pleases:
Relatives of the First Lady were thrice removed.
His wife.
Fourth cousins.
Underage children.
Governors, again.
EFCC officials.
ICPC officials.
Code of Conduct Bureau officials.
Girlfriends and their friends.
Supreme Court judges.
Court of Appeal judges.
INEC officials.
Senators.
Top police officers.
Among others, remember the FCT land scam of 2004; the Ministerial allegations involving the current FCT Minister, Nyesom Wike; and the 57 multi-billion-naira properties linked to former Attorney-General Abubakar Malami.
Just imagine what a Tax Policy Associates-style investigation of real estate ownership in Nigeria’s big cities would reveal.
Because in Nigeria, power is deployed into service only when we pray in the mosque or the church. Outside that, power is for the self.
And if you can export that power abroad in funds that belong to the commonwealth, to deprive other Nigerians of it and make you live like a king forever, so much the better!
Sonala Olumhense