COVER
Experts Caution Against Borrowing for Consumption
By Tony Obiechina, Abuja
As Nigeria government prepares budget 2022, business leaders and
economists have cautioned the Federal Government on the need for
productive disbursement of billion-dollar loans being incurred by the
administration.
At a webinar organised by Abuja Chamber of Commerce and Industry
(ACCI) and moderated by the Executive Director National Chamber Policy
Centre, Mr.
Olawale Rasheed, stakeholders decry the currentapplication of loans to cover recurrent expenditures while also
expressing apprehension over the servicing of debt with over 90
percent of national earnings.
Speakers and participants drawn from business and private sectors at
the virtual meeting held Tuesday were joined by the Statistician
General of the Federation, Dr. Simon Harry, the Chairman Fiscal
Responsibility Commission, Victor Muruako, President, Manufacturer
Association of Nigeria (MAN), Engr. Mansur Ahmed and others in
dissecting the implementation of budget 2021 and review of 2022 budget
proposal.
Economists who delivered papers at the webinar include Mr. Olusegun
Zaccheaus on behalf of KPMG, Dr. Lukman Oyelami a lecturer at the
Universityof Lagos and Dr. Ibrahim Ayuba a faculty member of ACCI BEST
Centre.
Welcoming the participants at the virtual meeting, the President of
ACCI, Dr. Al-Mujtaba Abubakar identified multiple challenges facing
the economy and urged the government to support the private sector if
the national economy is to truly turn the right corner.
He said the economic climate worldwide is challenging as nations
struggle to cope with fallout of the pandemic adding that across
Africa, governments are struggling to innovate and achieve
stabilisation after global disruption that is still reverberating in
many parts of the world.
“For us in Nigeria, the economy faces multiple challenges even as
government makes the best out of the very complex situation by
focusing on infrastructural development and innovative financing. In
the face of dwindling revenue, borrowing has become inevitable
generating concerns about debt distress. Inflation rate is
continuously high. The recent second quarter GDP growth while
commendable has not assuaged the structural hiccups within the
economy. Amidst high unemployment, the cost of doing business is
skyrocketing as businesses suffer under the hammer of multiple
taxation.
“Budget 2021 should therefore be seen and reviewed within the context
of global economic recession and dislocation of global production
value chains. While successes are recorded in the completion of
critical infrastructures, the state of insecurity has complicated the
productive processes within the agricultural sector. An already
negative situation was further worsened by the dwindling fortunes of
naira against other major currencies. This is coming at a time of low
export and high import which negatively impacted on the nation’s
foreign reserves.”
The Statistician General of the Federation, Mr. Simon Harry in his
presentation said stringent measures should be taken against rent
seeking mentality to curtail volatility in the forex market in other
to eliminate shadow economy of the parallel market.
Represented by his technical adviser, Mr. Daniel Amba he said,
automation of the processes will go a long a way in checking linkages
in the system and help save time and checkmate corruption adding that
consolidation on CBN interventions will boost output that will lead to
decline of food inflation.
The Chairman Fiscal Commission, Barr. Marouko also said, it is
imperative to always assess budget proposals and implementation, so as
to control expenditures and predict future budget needs, thereby
providing decision makers with the information they need to prepare
the budget for the next fiscal period.
The Chairman who was represented by the Director Policy and Standard,
Abutu Hyacinth also said, processes for comparing 2021 budget to
actual results, together with the analysis of a diverse set of
indicators will be undertaken to gauge the overall performance towards
best inform analysis and consideration of the 2022 budget proposals.
Also speaking, an Economist Dr. Oyelami said debt service revenue
ratio is very worrisome and the government should look into these
issues, adding that debt service/revenue ratio is becoming worrisome
while urging government to restrategise to generate more revenue.
“Nigeria needs to be more realistic about revenue projections adding
that ist obvious government is not generating enough to cover
expenditure which is not really scary but inability to generate enough
to cover recurrent expenditure is really a bad omen.”
A faculty member ACCI BEST Centre, Dr. Ayuba said we should focus on
the viability of non-oil sectors such as agriculture, mining,
leathers, others to have a structure market, improve value chain and
help increase exportation of finished products.
Business News
DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
COVER
NLC Threatens Nationwide Action as Talks With FG Collapse
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
COVER
Election Campaigns: FRSC Bars Officers from Politicians’ Escort
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.


