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Shuaibu Ibrahim and Transformational Leadership in NYSC

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By Emeka Mgbemena 

A transformational leader serves as a role model who inspires confidence in his team, he is proactive and leads from the front.

That is the man: Major General Shuaibu Ibrahim, the 18th Chief Executive of the National Youth Sevice Corps who assumed duty as Director-General of the foremost youth — mobilisation agency in the country on 10th May, 2019.

He came prepared for the task ahead, therefore wasted no time in rolling out a five – point agenda that gave a clearcut direction on the perspective of his administration in May, 2019.

Ibrahim in unmistakable terms demystiied the airs, opulence and all the glamour associated with high office in Nigeria, making himself accessible and available, not only to NYSC staff members and Corps Members whom he prioritised their welfare, but to the media and other stakeholders as well.

Interestingly, before the drop of the hat, he has given out his personal telephone number on request, and personally picks his calls.

He is a man that I have known and observed in the past twenty — six years, and worked closely with him in the last three years.

He has never ceased to amaze me at the amount of energy and passion he puts in the discharge of his duties. Gen Shuaibu Ibrahim is a transformational leader that is proactively proactive and consistently consistent,  all shrouded in humility in his interpersonal relationships, that sometimes make people to ask if he is truly a military man, for the military are known in so many climes for quick temper and authoritarianism, resulting from their hard training.

One of the critical issues that he did on assumption of office  was to bring sanity to the NYSC mobilisation process which hitherto suffered so much assault from unscrupulous officers in some Corps Producing Institutions, particularly those in the West Africa sub-region who fraudulently forward names of unqualified people for mobilisation.

He called a meeting of the Registrars of the institutions in Abuja in a bid to get their buy — in towards sanitising the mobilisation process. That singular action yielded great dividends. Some of the unscrupulous officers were sanctioned, while some of the institutions implicated in the fraudulent practice were shutdown by their respective governments.

Internal cleansing mechanism put in place by the Scheme also saw to the dismissal of some erring officers from service. 

In addition to that, he introduced the screening of foreign – trained Prospective Corps Members, particularly those that graduated from the universities in the West Africa sub-region. 

Quoting the astute and pragmatic administrator, the result of the screening has “been mind-boggling. Some of the supposed graduates parading bogus degree certificates, with second class upper division could not write their names correctly, let alone make correct sentence during the screening exercise which has been institutionalised.” 

The soft – looking, but no-nonsense general who loathes unpatriotic acts and circumvention of law and order vowed never to mobilise unqualified people for service. 

Some of those caught parading bogus and unearned certificates have equally been prosecuted and jailed to serve as a deterrent to others.

Frighteningly, if those characters had not been detected through the doggedness of the Director-General, many of them would have found their ways to both the public and private sectors to debase the institutions.

Ibrahim believes so much in forging worthy partnerships with both public and private institutions of like minds. In particular, the robust collaboration with Nigeria Centre for Disease Control resulted in early and safe return of the Corps to the Orientation camps, under the supervision of the NCDC.

He ensured that willing Corps Members, Prospective Corps Members, as well as serving Corps Members and staff members got vaccinated against COVID-19.

Gratifyingly, the data generated on COVID-19 tests at the Orientation camps helps the NCDC in tracking the rate of infection in the country. 

He is a man that believes so much in the utilisation of Corps potentials for national development. He is detribalised, humane and blind to people’s religious persuasions.  

Though a devout Muslim, he believes that true religion is the pursuit of people’s welfare and happiness; and would always speak to people about the ephemeral nature of human existence. He is always concerned with touching lives, and leaving worthy legacies for which posterity will remember him when he has gone to be with his Maker.

No wonder he has continued to pay the school fees of some less privileged students, cutting across tribe and religion, which he has done from his days as a young officer of the Education Corps.

Yes, he believes so much in the utilisation of Corps potentials for national development like I had earlier stated. This conviction prompted him to challenge the creative ingenuity of Corps Members at the outbreak of COVID-19 pandemic in Nigeria.

That challenge yielded so many inventions by the Corps Members, ranging from body temperature reading devices to automated sanitiser machines, as well as liquid soap — water — sanitiser —  dispensing machines, among others. 

Corps Members were amongst the first set of Nigerians to produce liquid soap, sanitiser and facemasks which were donated to Nigerians, free of charge.

He established NYSC National Troupe, revitalised NYSC Musical Band, so as to showcase the musical skills of Corps Members. 

The first NYSC Film, titled: A Call To Service, featuring some Corps Members and Nollywood stars such as Pete Edochie was premiered last year. The film has introduced Corps Members with budding talents to the vast opportunities in the Nollywood industry which some of them have embraced.

Under his watch, the NYSC Farms have been resuscitated, notably: the rice farm in Kebbi State, cassava farm in Oyo State, maize farm in Bauchi State, cassava, rice and poultry farms in the FCT. Beniseed is also cultivated in the farm.

In 2021, he was able to recover 52 acres of land allocated to the NYSC Secretariat Ebonyi as farmland by the State Government. The land was left uncultivated for so many years, resulting in the State taking back the land. 

Through his doggedness, the land was given back to the Scheme. It is now a large rice farm which was cultivated in partnership with NALDA. Plans have also reached advanced stage to secure land in Bayelsa State for cultivation. 

The same applies to other NYSC ventures such as the water factory,  bakery and garment industries, all of which have been revitalised and are operated by Corps Members under the supervision of relevant NYSC staff members.

Recently, the Executive Governor of Nasarawa State commissioned another NYSC water factory in Keffi, as well as NYSC garment factory, built in collaboration with the private sector. These ventures generate revenue which are paid into government coffers.

As at date, over one billion Naira has been generated and paid into government coffers by the Scheme. 

The Director-General has pioneered the construction of an ICT centre which according a senior member of staff of the institution thought was not possible. From every indication, the edifice will be commissioned within the year.

As an outstanding academic, a Josite,  a historian — Associate Professor of Military History, he edited and co-edited nine books on the Scheme — covering areas such as NYSC and National Development; NYSC and National Integration; NYSC and COVID-19; NYSC and CDS; NYSC and National Elections among others. The nine books unveiled June last year are researcher’s delight.

The General, a Fellow, Historical Society of Nigeria and Member Teachers Registration Council of Nigeria has equally established NYSC Museum which is named: NYSC Museum of Dynamic History which, I stand to be corrected is the biggest museum in Abuja. The museum is a centre of learning. 

To give the Scheme a strong voice in the media space, he established NYSC Radio and Television Stations which were commissioned in April this year by the former Head of State, Gen Yakubu Gowon. The television transmits on TStv Channel 365 and the radio station on 88.3 FM.

The Director-General ensured an upward review of Corps Members allowances by the Federal Government which is a great morale booster to Corps Members, in addition to the decentralisation of NYSC Administration through the establishment of NYSC Area Offices, domiciled in each of the six geopolitical zones of the country, manned by substantive directors.

The Area Offices have brought administration closer to the grassroots, while also opening up space for the career advancement of staff.

In January this year, NYSC mega printing press, Kaduna was commissioned. The press prints both for the Scheme and outsiders at a competitive cost. It equally serves as a training ground for Corps Members that desire to go into printing business at the end of service. 

I am not hesitant to posit without equivocation that he is a shinning star in the present Administration of President Muhammadu Buhari. He has reinvigorated the National Youth Sevice Corps, making Corps Members and staff welfare key priority, making the Corps central to national development and stability.

To further prioritise Corps Members’ welfare, especially in the area of empowerment, under the platform of Skill Acquisition and Entrepreneurship Development programme, he canvassed the establishment of skill acquisition centres in six of the geopolitical zones. Some have been commissioned.

He has championed the establishment of National Youth Service Corps Trust Fund ( NYSCTF) which promises to be a game changer for the Corps.

The fund when established will not only address the infrastructural deficits of the Scheme as explained by the DG, but will be a pool of funds to be advanced to willing Corps Members to pursue their skill acquisition initiatives.

The benefits derivable from this proposed trust fund cannot be over-emphasised. When approved and implemented, it will lift millions of Nigerians, especially the youths out of poverty. 
At this point, I am persuaded to enjoin you to please, tune to NTA International, Channel 251 every Wednesday at 7.30 pm and see the wonders NYSC has been doing in the area of youth empowerment, under the skill acquisition programme, national unity and integration. It is an interesting documentary programme which should be a must watch for every patriotic Nigerian. 

He has within three years transformed the Corps so much so that whoever that comes after him when he concludes his tour duty will find very big shoes left behind. 

The National Directorate Headquarters of the Scheme in Abuja has been given a face-lift which makes it so befitting and great morale booster for staff. 

Doubtlessly, at the end of his tenure of office in the Scheme, like Julius Caesar said in a letter to the Roman Senate around 47 BC after he had achieved a victory in a short war against the Pharnaces 1 at the battle of Zela as recorded by Wikipedia: Veni Vidi Vici, translated: I came I saw I conquered. He has done very well for the NYSC in three years of his purposeful leadership. 

Like the youngsters would say, let us give three big gbosas to Maj Gen Shuaibu Ibrahim.


Mgbemena is Deputy Director of Press, National Youth Service Corps (NYSC)

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Bayelsa Spends N13.2b on Salary-related Items in September 

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From Mike Tayese, Yenagoa 

Bayelsa State Government over the weekend said the total salary-related items to civil servants in the state  was N13.2 billion as at the month of September 2026.

The salary related-items, which cover 65,411 civil servants includes, N8 billion; salary arrears, 208 million; political appointees, N2 billion; gratuity, N200 million; pension arrears, N200 million; grants to tertiary institutions, N2 billion; support to primary school teachers, N251 million; corps members, N73 million and minimum wage arrears, N50 million.

“This brings total salary-related items to 13.
2 billion” the state government said.

Given the income and expenditures for the month of August and September 2026, the Technical Adviser to the governor on Treasury and Account Timinipre Seipulo said, it received a total of N183.28 billion in revenue from the Federation Account Allocation Committee (FAAC) and other sources in August and September 2026, while reaffirming its commitment to completing ongoing infrastructure projects and improving workers’ welfare.

Presenting the income and expenditure for the two months, Timipre Seipulo said, Bayelsa received a gross FAAC inflow of N79.20 billion in August, comprising N12.71 billion from statutory allocation, N50.14 billion from derivation revenue and N16.36 billion from Value Added Tax (VAT),after deductions at source of N993 million, the state’s net FAAC receipt stood at N78.21 billion.

The state also recorded additional receipts from internally generated revenue, infrastructure development funds, excess crude refunds and other sources, bringing its total receipts for August to approximately N99.21 billion.

For September, Seipolu said the state received a gross FAAC allocation of N56.60 billion, comprising N8.6 billion in statutory allocation, N39.32 billion from derivation and N8.7 billion from VAT.

“He explained that after deductions, the net FAAC inflow stood at approximately N55.05 billion, while additional revenue from internally generated revenue, infrastructure development funds, natural resources development, the State Employment and Expenditure for Results (SEEFOR) programme and other sources increased the state’s total receipts to about N84.07 billion.”

The presentation showed that the government spent N7.26 billion on recurrent expenditure and N28.36 billion on capital projects in September, bringing the combined expenditure to N35.62 billion.

“Seipolu further disclosed that the state had a closing balance of approximately N59.04 billion at the end of september,however, he explained that between the end of september and october 19, before the next FAAC allocation was received, the government had spent about N18.9 billion on capital projects and N4.9 billion on recurrent obligations.”

He said the balance consequently stood at approximately N35.5 billion as of October 19, with N24 billion retained in the capital projects account to support ongoing infrastructure development.

According to him, the funds were not idle resources but were being deployed to finance government obligations and ongoing projects pending subsequent FAAC allocations,on workers’ welfare, the government clarified that different categories of public servants operated under distinct salary structures and allowance arrangements.

It explained that doctors, nurses, investigators, civil servants, university employees and fire service personnel had different remuneration structures, making it inappropriate to calculate the state’s wage bill using a uniform salary estimate.

The government added that professionals such as doctors, nurses and investigators received special allowances in addition to their regular salaries to recognise the peculiar demands of their duties.

It also announced that approved special allowances for workers in tertiary institutions would commence in October, with the government committing to pay outstanding arrears dating back to January 2026.

“The allowances for tertiary institution workers are expected to increase the monthly wage bill by more than N900 million, while the additional peculiar allowances for other public servants are projected to raise monthly salary expenditure by approximately N2 billion.”

The government said the two adjustments would increase the state’s monthly wage bill by about N3 billion, excluding the outstanding arrears,it maintained that the financial disclosure was part of its commitment to transparency and accountability.

At end of September 2026, the state recorded surplus of N28.9b.

Speaking earlier,the commissioner for Information, Orientation and Strategy, Ebiuwou Koku-Obiyai, said
the present administration deliberately sustained the transparency as a covenant with the people to “govern openly, to account truthfully and to listen attentively. Transparency is not an event. It is our own culture”.

“Every project we commissioned, every kobo we spend, and every policy we implement, we bring to the members of the public through you, members of the Fort Estate  of the Realm, to the people. After all, as a government, we are not

“Koku-Obiyai maintained that ongoing projects were progressing according to schedule, stressing that the government had continued to meet its financial obligations to contractors to ensure their timely completion.”

“She listed the nine-storey State Secretariat building, the rehabilitation of the Light Floor project and the Lagos road project among the major infrastructure projects making progress,
according to her, an inspection visit conducted by the commissioner for works and other government officials confirmed that the Lagos road project had reached an advanced stage of implementation.”

She described the reports alleging the collapse of major projects as misleading, insisting that the government remained committed to delivering its development agenda.

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Aba Commercial Smart City Celebrates COO, Mazen Kalassina at 39

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By David Torough, Abuja

Aba Commercial Smart City has celebrated its Chief Operating Officer (COO), Engr. Mazen Kalassina, on his 39th birthday, recognising his contributions to engineering, infrastructure development, entrepreneurship, and artificial intelligence (AI) innovation.

The organisation described Kalassina as a distinguished civil engineer and technology innovator whose professional journey reflects a commitment to bridging traditional engineering practices with emerging digital technologies.

With more than 15 years of experience in engineering and infrastructure development, Kalassina has built a reputation for strategic leadership, innovation, and developing practical solutions to infrastructure challenges.

As the founder of Infrax Tech, he is leading the development of Infranalyze AI, an artificial intelligence-powered civil engineering decision-support and design platform.

The technology is designed to support critical engineering processes, including infrastructure planning, terrain analysis, road design, earthwork calculations, and drainage planning.

His growing involvement in artificial intelligence research and innovation has also attracted recognition, with his work associated with consideration for the Artificial Intelligence Research and Innovation category at the Association for the Advancement of Artificial Intelligence (AAAI). However, any final award or selection outcome remains subject to official confirmation.

At Aba Commercial Smart City, where he serves as COO, Kalassina brings his engineering background, operational expertise, and strategic vision to the development of a modern commercial city focused on economic growth, connectivity, and sustainable development.

The management of Aba Commercial Smart City, in its birthday message, commended his dedication, leadership, and commitment to excellence, describing his contributions as valuable to the organisation’s development ambitions.

The organisation also expressed optimism that his new year would usher in greater professional accomplishments, groundbreaking innovations, stronger partnerships, and lasting contributions to Nigeria’s infrastructure and technology sectors.

As he marks his 39th birthday, Aba Commercial Smart City celebrates not only his personal milestone but also his continued commitment to using engineering expertise and technological innovation to advance infrastructure development and shape the future.

Happy 39th Birthday to Engr. Mazen Kalassina!

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Rebuilding Public Trust in Government Borrowing: The Case for Scaling Up Sukuk Financing in Nigeria

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By Uche Joe Uwaleke

The recent request by President Bola Tinubu to the National Assembly for approval to raise $20.52 billion and €1.045 billion in fresh external loans has once again brought Nigeria’s growing public debt burden into sharp focus.

Although the President has justified the proposed borrowing on the grounds of the country’s enormous infrastructure deficit and the need to finance critical projects across various sectors of the economy, the announcement has understandably generated considerable concern among Nigerians.

These concerns cannot be dismissed as mere opposition to government borrowing.

They must be viewed against the background of Nigeria’s debt accumulation over the past decade, the relatively limited visible impact of such borrowing on infrastructure development and the growing proportion of government revenue devoted to servicing existing debt.

The fundamental question Nigerians are asking is whether borrowed funds are being efficiently deployed, transparently managed and translated into tangible developmental outcomes.

Nigeria’s public debt statistics provide sufficient grounds for this concern.

As at June 30, 2026, the country’s total public debt stood at ₦166.79 trillion, comprising domestic debt of ₦91.59 trillion, representing 54.91 per cent, and external debt of ₦75.20 trillion, equivalent to $54.52 billion, representing 45.09 per cent of the total.

This represents a phenomenal increase from the ₦11.24 trillion public debt stock recorded in December 2014.

While part of this increase reflects naira devaluation, and the securitization of previously accumulated obligations, the scale of the expansion over a relatively short period raises legitimate questions about debt sustainability and the developmental returns on borrowed resources.

More importantly, Nigeria’s debt challenge should not be assessed exclusively through the conventional debt-to-GDP ratio.

Although this ratio may appear moderate by international standards, the more immediate fiscal constraint is the country’s capacity to generate sufficient revenue to service its obligations.

Debt service has, in recent years, consumed an exceptionally high proportion of government revenue, averaging in excess of 70 per cent over the period under consideration.

This leaves progressively less fiscal space for infrastructure, education, healthcare and other essential public services.

The composition of Nigeria’s debt portfolio also raises important questions about the extent to which borrowing has been linked to productive investment.

The Federal Government’s domestic debt stock outstanding by instruments as at June 30, 2026, stood at ₦86.99 trillion.

Of this amount, discretionary FGN Bonds accounted for ₦64.84 trillion, representing 74.53 per cent of the total, including ₦22.11 trillion in securitized Ways and Means advances.

By comparison, FGN Sukuk outstanding amounted to only ₦1.19 trillion, representing 1.37 per cent, while FGN Green Bonds accounted for a mere ₦47.36 billion, or 0.05 per cent.

The overwhelming dominance of conventional government securities, particularly instruments that are not necessarily tied to specific infrastructure projects, contrasts sharply with the relatively insignificant contribution of instruments specifically designed to finance identifiable developmental investments.

This is not to suggest that all conventional government bonds are unproductive or that their proceeds cannot finance capital expenditure.

Rather, it highlights the need to rebalance the debt portfolio towards financing instruments that establish a clearer connection between borrowed funds and identifiable development projects.

The external debt portfolio presents a related challenge.

Of Nigeria’s external debt stock of $54.52 billion, Eurobonds account for a significant proportion, amounting to about $18.55 billion. Although Eurobonds provide access to international capital markets and can help diversify the sources of government financing, they are generally not structured around specific infrastructure assets or projects.

Their proceeds may be applied to broad budgetary purposes, depending on the terms of the issuance and the government’s stated financing objectives.

Furthermore, Nigeria faces substantial future Eurobond repayment obligations.

The outstanding repayment schedule includes a $1.5 billion bullet repayment falling due in November 2027, followed by significant annual maturities from 2028 through 2034, before repayments resume in 2036 and continue into 2051.

These obligations underscore the importance of carefully managing the country’s refinancing and foreign exchange risks.

They also reinforce the need to reconsider the composition and structure of future external borrowing rather than continually relying on conventional debt instruments without sufficient attention to the developmental use of their proceeds.

It is against this background that greater consideration should be given to Sukuk as an alternative and complementary instrument for financing Nigeria’s infrastructure requirements.

Properly structured Sukuk provide an opportunity to link the raising of funds to clearly identified assets and development projects, thereby creating a financing framework in which the purpose of borrowing is more transparent and the application of proceeds can be more effectively monitored.

This makes Sukuk particularly relevant to a country seeking to address a significant infrastructure deficit while simultaneously rebuilding public confidence in government borrowing.

Nigeria is not starting from scratch in this regard.

The Federal Government introduced its Sovereign Sukuk programme in 2017, and successive issuances have been deployed principally towards the construction and rehabilitation of federal roads across the six geopolitical zones and the Federal Capital Territory.

The programme has demonstrated that Sukuk can mobilize substantial domestic financial resources for identifiable infrastructure projects.

At the subnational level, Osun State issued an ₦11.4 billion Sukuk in 2013 to finance the construction of 26 schools, while Lagos State subsequently accessed the Sukuk market to finance road infrastructure.

These experiences demonstrate that Sukuk is a financing instrument that can be deployed by both federal and state governments, irrespective of the religious composition of their populations.

The results achieved through the Federal Government’s existing Sukuk programme provide an important basis for scaling up its use.

The roads financed through successive issuances demonstrate the practical connection that can be established between public borrowing and physical infrastructure delivery.

However, with outstanding Federal Government Sukuk accounting for only about 1.37 per cent of the domestic debt portfolio, its current scale remains too small to make a transformational impact on the country’s infrastructure deficit.

An important consideration is that Sukuk financing is not limited to the domestic capital market.

Both domestic and foreign loans can be sourced through Sukuk structures.

The Federal Government could therefore explore international sovereign Sukuk denominated in US dollars, euros or other suitable currencies to mobilize long-term financing from international banks, conventional institutional investors, sovereign wealth funds, pension funds and other global investment institutions.

The proposed external borrowing of $20.52 billion and €1.045 billion offers an opportunity to examine whether a significant proportion of the financing requirements could be raised through international sovereign Sukuk rather than relying exclusively on conventional external loans.

Different Sukuk structures could be deployed depending on the nature of the projects.

Al-Ijarah Sukuk could finance existing or identifiable infrastructure assets through leasing arrangements, while Al-Istisna Sukuk could be used to finance the construction of new infrastructure such as roads, bridges, and power facilities.

Al-Musharakah could support commercially viable infrastructure investments involving partnerships between government and private investors.

The flexibility of these structures makes it possible to develop a diversified infrastructure financing programme rather than rely on a single financing model.

A carefully designed international sovereign Sukuk programme could also attract investors who might otherwise not participate in Nigeria’s conventional Eurobond issuances, thereby broadening the country’s financing options and investor base.

More importantly, the appeal of Sukuk lies in its potential to strengthen transparency and accountability in the utilization of public borrowing.

One of the principal reasons for public scepticism towards government borrowing is the perceived disconnect between the amounts borrowed and the infrastructure outcomes delivered.

Nigerians are increasingly concerned that governments accumulate enormous debt obligations without providing sufficient information about the projects financed, the amounts disbursed, the physical progress achieved and the economic returns generated.

This perception has weakened public confidence in borrowing as an instrument of development.

Sukuk can help change this narrative, provided that its project-linked features are supported by effective institutional and contractual safeguards.

Each issuance should identify the projects to be financed, their locations, approved costs, implementing agencies and expected completion periods.

The proceeds should be paid into dedicated, ring-fenced accounts and released only against verified project expenditure.

Independent technical auditors should certify work completed, while periodic public disclosures should provide information on funds raised, amounts disbursed, outstanding balances and actual physical progress.

Where appropriate, special purpose vehicles should be established to administer the transactions and provide clear reporting and governance arrangements.
This approach is also consistent with the spirit and objectives of the Fiscal Responsibility Act 2007.

The Act establishes important principles for responsible fiscal management, including the requirement that borrowing be undertaken for capital expenditure and human development, subject to the applicable statutory conditions.

Section 44 specifically provides that government borrowing should be applied only to capital expenditure and human development, while the Act also provides for transparency, accountability and prudent management of public resources.

Indeed, Sukuk can provide a practical financing mechanism for advancing these objectives by establishing a more visible connection between the resources mobilized and the capital projects for which they are intended.

However, Sukuk should complement, rather than substitute for, full compliance with the Act.

The fact that a loan is raised through Sukuk does not automatically establish that the borrowing satisfies the statutory requirements.

Proper project appraisal, legislative scrutiny, debt sustainability analysis, procurement compliance and expenditure monitoring remain indispensable.

There is also a compelling case for state governments to embrace Sukuk more actively.

Given the enormous infrastructure requirements at the subnational level, state governments should explore domestic Sukuk issuances to finance roads, schools, water projects, markets and other essential public infrastructure.

States with viable revenue-generating assets or identifiable public infrastructure projects could develop their own Sukuk programmes, subject to the necessary legal approvals, credit assessments and investor requirements.

This would deepen the domestic capital market, provide institutional investors with additional investment opportunities and reduce exclusive dependence on conventional bank loans and government bonds.

It would also encourage greater discipline in project selection, preparation and implementation, since successful Sukuk issuance requires clearly defined underlying transactions and credible financing arrangements.

By and large, the issue is not whether borrowing by the government should stop altogether.

A country with enormous infrastructure deficits and development aspirations cannot reasonably expect to finance all its requirements from current revenue.

Borrowing, when properly structured and prudently managed, can be an important instrument of economic transformation.

The more fundamental issue is the quality, purpose, structure and accountability of the borrowing.

Nigeria must move away from a debt management approach that places disproportionate emphasis on how much money can be raised towards one that gives equal, if not greater, attention to what the money will finance, how it will be spent and what measurable economic and social benefits will accrue to citizens.

The proposed $20.52 billion and €1.045 billion external borrowing should therefore provide an opportunity for a fundamental rethink of the country’s financing strategy.

Rather than a complete resort to conventional loans, the Federal Government should undertake a serious assessment of the proportion of its proposed infrastructure financing that can be mobilized through international Sukuk.

The National Assembly, in considering the proposed borrowing plan, should also request a comparative assessment of conventional external loans and Sukuk, including their respective costs, repayment obligations, foreign exchange implications, underlying asset requirements and accountability mechanisms.

This would enable legislators to consider not only the amount Nigeria intends to borrow but also the financing structures that can best support the delivery of the projects for which the borrowing is intended.

It goes without saying that Nigeria does not necessarily have a shortage of financing instruments.

What it urgently needs is a financing framework that restores confidence in the relationship between public borrowing and public benefit. Scaling up Sukuk, in both domestic and international capital markets, offers an opportunity to achieve this objective.

The relatively small Sukuk issuances undertaken so far have helped finance identifiable road infrastructure and demonstrated the instrument’s practical relevance to Nigeria’s development needs.

A substantial expansion of the programme could make a much greater contribution to infrastructure development, while broadening the investor base and strengthening project-level transparency.

All said, government borrowing should not merely create additional liabilities for future generations; it should create enduring assets that improve productivity, expand economic opportunities and raise living standards. Sukuk, properly structured and transparently administered, can help Nigeria move closer to that objective.

Uche Uwaleke, a financial Economist, is Director of the Nasarawa State University Institute of Capital Market Studies and President of the Capital Market Academics of Nigeria

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