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THINK TANK: SENATOR MOHAMMED ALI NDUME’S DELIBERATE DISTORTION OF DEVELOPMENT LOANS DATA: SETTING THE RECORD STRAIGHT

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Once again, the Independent Media and Policy Initiative (IMPI) finds it necessary to set the public record straight following Senator Mohammed Ali Ndume’s recent and deliberate misinterpretation of facts regarding Nigeria’s development loans, seemingly aimed at casting aspersions on President Bola Ahmed Tinubu’s reform agenda.

It is disappointing that Senator Ndume, now in his fourth consecutive Senate term, discussed Nigeria’s national debt without offering proper context or enlightening Nigerians. During a recent television interview, he questioned the rationale and transparency of borrowings totalling $9.45 billion (about N13 trillion) since June 2023.

With public concerns already heightened around government borrowing, it was incumbent on a senior legislator such as Senator Ndume to provide accurate and holistic information—especially when Nigeria’s total public debt, while rising to N144.67 trillion in local currency, actually declined in dollar terms from $108.23 billion at the end of December 2023 to $94.23 billion by December 2024. This signals a remarkable reduction of $14 billion within a year—an unprecedented fiscal achievement since 2006 that deserves acknowledgement, not a misrepresentation.

Rather than commend this historic reduction, Senator Ndume claimed, without substantiation, that these loans are being misapplied to so-called ‘non-tangible’ projects. This criticism is shortsighted, betraying a narrow understanding of the multifaceted nature of development. Development today is not limited to physical infrastructure alone but increasingly encompasses human capital—skills, knowledge, education, and health—that underpin a productive society and stronger economy.

Countries like India and China have surged by building roads or factories and investing in their people. Human capital development—expanding access to education, healthcare, social protections, gender inclusion, and agricultural productivity—drives lasting national prosperity.

Senator Ndume’s suggestion that only physical projects matter is not supported by development economics or Nigeria’s need for inclusive growth. Notably, the loans are not commercial bank advances but concessionary, development-backed loans from institutions like the World Bank—often with very low interest rates, extended maturities (up to 40 years), and multi-year moratoria. Such terms make these loans an efficient and responsible instrument for funding national development priorities that commercial lenders will not touch.

India and China, for instance, developed their technical capacity deliberately and strategically, understanding that human skills and knowledge would be their ultimate competitive trade advantage.

The soft and intangible projects funded by the federal government are as important as the “tangible, accountable” projects preferred by Senator Ndume.

Of course, we are sure that the Senator is conscious that those loans for intangibles that he mentioned are not commercially valued loans like those made available by commercial banks. Indeed, development-backed loans are classified as concessionary loans with usually long tenures, as long as 40 years, and interest rates as low as one per cent, sometimes with a four-year moratorium.

Naturally, no commercial bank is inclined to fund these aspects of human development because they have no basis for physical and commercial quantification. However, they constitute a significant pivot in human growth and sustainability. Realising the critical need to invest in human capital, multilateral agencies emerged to fill the fiscal gaps and address and facilitate investments focused on human capital development.

The lead entities in this sector are the World Bank and the International Monetary Fund (IMF). The World Bank seeks to help countries invest in and develop their people to be productive citizens and active economic contributors. The philosophical underpinning of the World Bank’s operations is prioritising investments in education, healthcare, and social protections to realise a stronger economy full of healthy, thriving adults. This forms the kernel of the World Bank loans to Nigeria.

Our analysis shows that World Bank loans accounted for nearly 80% of Nigeria’s multilateral debt in 2024, rising modestly from $21.15 billion in 2023 to $22.32 billion in 2024—a 5.5% increase, not the $9.5 billion figure Senator Ndume cited. Meanwhile, Nigeria’s IMF debt fell sharply from $2.47 billion to $800.23 million (-67.6%) over the same period.

This evidence supports the view that the Tinubu administration is not carelessly accumulating debt but carefully balancing securing new credit for critical sectors and reducing overall public debt. The administration should be recognised for prudent debt management and reform focus, not unfairly disparaged.

Additionally, Senator Ndume’s claim that these loans bypassed parliamentary scrutiny is inaccurate. The World Bank credit approval process requires approval by its internal arms (IDA or IBRD) and subsequent concurrence by Nigeria’s National Assembly before disbursement.

For the record, the World Bank approved six projects (valued at $4.25 billion) for Nigeria in 2024, but actual disbursements between 2023 and 2024 stand at just $2.36 billion—far from the $9.5 billion claimed

Beyond this, we find it somewhat disconcerting that the Senator made efforts in that interview to misrepresent and, as it were, politicise the value of the debt secured by the Tinubu administration from the World Bank, putting it at $9.5 billion since the administration’s inception in June 2023. This is inappropriate, as such propagation of deliberately concocted misleading figures against a government with the apparent purpose of disparaging it and, in the same token, inciting the people against the government should be discouraged.

Nigeria’s debt profile is a loud testimony of a government that is not about the acquisition of debt but one that is adept at managing its debt portfolio by creating a positively skewed balance between new loans and paying down older ones. Thus, rather than impugn the capacity and the good standing of the government’s debt management approach, we submit that the Tinubu administration should be seen for what it is: a genuinely reform-focused administration.

On the whole, whereas the World Bank approved six projects valued at $4.25 billion for Nigeria in 2024, the actual disbursements between 2023 and 2024 amounted to $2.36 billion, a distant figure from the $9.5 billion Senator Ndume insinuated was the credit disbursed by the bank on account of parliamentary approvals.

We find Senator Ndume’s misstatements on development-backed loans deeply troubling and unworthy of a ranking lawmaker tasked with advancing Nigeria’s development priorities. Misrepresenting data to score political points is manipulative and undermines informed public debate.

We urge all policymakers, especially those in positions of authority, to prioritise accuracy and transparency in public discourse. Nigerians deserve nothing less than the unvarnished truth on critical national matters.

Omoniyi M. Akinsiju PhD
Chairman,

Independent Media and Policy Initiative (IMPI)

April 2025

 

Politics

IMO ADC ZONAL CHAIRMEN APPLAUDS PROF JAMES OKOROMA LED SWC, ENDORSE STAKEHOLDERS POLICIES

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Having critically examined the qualities of partners joining Imo state African Democratic Congress ADC, and the need to re-assure confidence among the democrats, following reported impersonation of party executives withing and outside the state, the state zonal Chairman have endorsed the leadership of the State Working Committee.

The zonal leaders, Okigwe- Mazi Benjamin Nnanna, Orlu – Mazi Nnamdi Aguguo and that of Oweri- Mazi Andyson Obani, recently applauded the leadership of the Imo State Working Committee SWC, led by prof James Okoroma.

They also acknowledged efforts of imo stakeholders on policies that will curb implosion.

The trio through their spokesperson, a former ADC State chairman Hon Andyson during interaction with Trumpeta said the sacrifice made by Former National Chairman, Dr Ralph’s Okey Nwosu “Ikolo Awka” for a better nation shows our true DNA.

He eulogiesed ADC stakeholders, Ochiagha Chinonso Uba “Nonsonkwa”, Dr Odaghara Chijoke Okadigbo, Dr Colins Osuagwu and others for been steadfast with contributions towards the party in the the state.

“ADC is a Pan-African movement, leadership transformation center and a masterpiece for Africa, Driven by the strength of youths and wisdom of elders.

While we advice against impersonation of party executives and extortion of uninformed party members, Okoroma’s strategic and inclusive approach on simplified absorption procedures for partners with similar ideologies will definitely curb implosion”, Mr Andyson concluded.

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Politics

IMO ADC : OWERRI ZONE ADMONISHES COALITION MEMBERS TO REFRAIM FROM FORMATION OF PARALLEL EXECUTIVE STRUCTURES.

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The ADC ideological consistency over years standing as a Beacon has leadership with structured Executives and organized membership base across our Lga’s and wards in imo State.

Our self funding concept, resilience , passion for better Nigeria and Africa atlarge shouldn’t be sacrificed in the Alter if SELFISHNESS.

These were submission from ADC SVC-imo east and former Hon Andyson Obani as he condemn formation of parallel executive structures by Coalition partners that are yet to join the party.

” these segregative acts, impersonation of party executives and extortion of uninformed imolites are not in consonance with Adc-Dna, it could polarize this nascent union and provoke other critical stakeholders in Imo Adc.

These People oriented movements should neither be abused nor use for pecuniary purposes.
Coalition partners should get registered into the party first and await for futher directives from Imo SWC led by Prof James Okoroma.

It Coalition of Unity, cohesiveness but not for Division.”

The former Adc State chairman Hon Andyson Obani also clarified polices put in place by Adc Leaders for all inclusiveness .

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Politics

2027: No forces can intimidate me in Zamfara — Gov Lawal

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Ahead of the 2027 general election, Governor Dauda Lawal of Zamfara State has said he’s not afraid of any forces in the state.

The governor stated this on Wednesday while fielding questions on Channels TV’s Politics Today programme.

The statement comes amid speculation that he might switch tent to the ruling All Progressives Congress (APC) following the intractable crisis in the Peoples Democratic Party (PDP).

Lawal said based on what they are doing in Zamfara, delivering the good aspect of democracy, he thinks there is no reason for him to fear anybody.

He said: “The truth of the matter is, when I contested in 2023, all these forces were there.

“Remember the first governor of Zamfara State, Sani Yerima, and his deputy, Mahmud Shinkafi, Abdul’aziz Abubakar Yari, and his deputy, then Governor Bello Matawalle and his deputy, and all the senators and members of the National Assembly, they were all in APC when I contested in 2023 and I still won.

“So what difference is it going to make? Now there is nothing really new as far as that is concerned. You see, politics is… we understand the trend, and we are on ground.

“I’m not scared of anybody. God has given me this position, and based on what we are doing, delivering the good aspect of democracy, I think there is no reason for me to fear anybody. It is only God that I fear.

“So what has changed from 2023 to 2027 that you think I will have any doubt or fear of these people? Absolutely no fear as far as that is concerned.

“Like I said, first of all, I am not a desperate politician, and I believe I am a man of principle, and I believe in what I am doing. And for now, in Zamfara State, based on what we are doing, I do not think there is anything to be scared of as far as any forces are concerned.”

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