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Atiku’s Scaremongering on Debt Profile Based On False Premise – FG

Published

6 years ago

June 17, 2020

Joel Ajayi
The Federal Government has said the apocalyptic scenarios on thecountry’s debt profile, as painted by former Vice PresidentAtiku Abubakar in his press statement on Tuesday, is nothing butscaremongering anchored on a false premise.

In a statement issued in Abuja on Wednesday, the Minister ofInformation and Culture, Alhaji Lai Mohammed, said while the FederalGovernment welcomes constructive criticism, such must be based onverifiable facts rather than conjectures and innuendos.

”There is no doubt that former Vice President Atiku Abubakar lovesour country and wishes it well, otherwise he would not have sustained his serial quest for the country’s highest position. One can only hope that his resort to the use of such words as ‘precipice’, ‘foreclosure’ and ‘economic ruin’ does not reflect anything but best wishes for the country at this time,” he said.

Alhaji Mohammed said the figure of Nigeria’s debt to revenue ratio of99% in the first quarter of 2020, quoted by the former Vice President,is not in the Medium-Term Expenditure Framework and Fiscal Strategy Paper, where he claimed he got it from.
”We are also not able to ascertain the source of the first quarterfigures of N943.12 billion for debt servicing and N950.56 billion forretained revenue, which he also quoted,” he said.

The Minister said the debt service provisions in the annual budgetsinclude principal repayments, interest payments and all other applicable charges, adding: ”Therefore, the statement that debt servicing does not equate to debt repayment is not only wrong, but ill-informed.”

On the former Vice President’s assertion that revenue needs to go up, he said this Administration has introduced several measures to shoreup revenues, listing some of the measures as the passage andimplementation of the Finance Act, 2019, various on-going reforms inthe Oil and Gas, Tax Administration and Collections, as well as theStrategic Revenue Growth Initiatives.

Furthermore, Alhaji Mohammed said, since Nigeria’s debt service isexpressly provided in the annual budgets and the debt service payments are made as and when due, the issue of creditors foreclosing onNigeria, as strangely predicted by the former Vice President, does notarise.

He said contrary to the statement credited to Alhaji Abubakar thatNigeria has experienced alarming and unprecedented increase in theratios of debt to GDP and debt service to revenue, indeed, Nigeria’sratio of debt to GDP is one of the lowest in the world at 19.00% as atDecember 31, 2019, while Government is making concerted efforts to increase revenue so as to bring down the ratio of debt service to revenue.

”One of the reasons why debt service to revenue is high is becauserevenue generation in Nigeria has been low, with over-dependence onthe oil sector. This is corroborated by the fact that the ratio ofNigeria’s tax revenue to GDP is one of the lowest in the world atabout 6%,” the Minister said.

He said unlike what obtained in the past, when the nation borrowed toservice the crass indulgence of a few fat cats, the loans being obtained by the current Administration are beingprimarily used to finance infrastructure projects, which includeroads, railways, bridges and power, and the loans are long-term innature, which would benefit present and future generations.

”We have said that in the face of massive infrastructural decay, noresponsible government will sit by and do nothing. ThisAdministration’s borrowing, therefore, is aimed mostly at revampingour infrastructure. The loans for theeducational sector will contribute to the development of our humancapital while the loans for the agricultural sector will help the moveto diversify the economy,” Alhaji Mohammed said.

He said despite the negative impact of the Covid-19 pandemic on thecountry’s economy, the Federal Government has continued to takemeasures to mitigate the effects of the pandemic, and assured that theGovernment will always act in the best interest of Nigerians.

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Strategic Partnerships, Diaspora Investment and Improved Workforce Critical to Industrialization-DG RMRDC

Published

2 days ago

November 12, 2026

The Gleamer

By: Stella Azi and Adaora Adibe

The Director-General/Chief Executive Officer of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has called for a strategic shift from the exportation of raw commodities to domestic processing, manufacturing and value addition, declaring that Nigeria possesses enormous untapped raw material resources capable of driving industrialisation, creating jobs and strengthening the country’s economic competitiveness.

Prof. Ike-Muonso made this submission in a lecture titled Unlocking Nigeria’s Raw Material Value Chain for Industrialization, Manufacturing and Competitiveness, where he presented an extensive assessment of Nigeria’s resource endowments, industrial challenges and emerging investment opportunities across agricultural commodities, solid minerals and waste-based raw materials.

The lecture highlighted a combined US$2.65 trillion global market opportunity across 30 major raw material value chains, comprising 12 agricultural value chains valued at US$932 billion, 11 mineral value chains worth US$1.352 trillion and seven circular-economy value chains estimated at US$366 billion.

According to the RMRDC Boss, Nigeria must move beyond the traditional approach of extracting and exporting raw materials to building competitive domestic industries that transform these resources into intermediate products, industrial inputs and finished goods for local consumption and international markets.

He observed that the country’s manufacturing sector has struggled to sustain its 2014 peak, with its contribution to real Gross Domestic Product declining from 9.64 per cent in 2014 to 8.05 per cent in 2025, representing a 16.5 per cent decline. He also drew attention to the increasing cost of raw material imports, which rose to US$20.5 billion in 2025, approximately six times the 2020 level.

He explained that the growing dependence on imported industrial inputs exposes Nigerian manufacturers to foreign exchange volatility, increases production costs and weakens the competitiveness of locally manufactured products.

Prof. ke-Muonso stressed that the solution lies in developing domestic raw material value chains through deliberate investment in processing facilities, research and development, technology, infrastructure and stronger linkages between producers, processors and manufacturers.

He identified agriculture, solid minerals and industrial waste as three major resource platforms for Nigeria’s industrial transformation, stating the country’s significant production capacity and the enormous opportunities available for downstream processing.

Ike-Muonso noted that Nigeria produces over 63 million metric tonnes of cassava annually, making it the world’s largest producer, while also maintaining strong positions in cocoa, cashew, sesame, palm oil and cotton. However, more than 80 per cent of agricultural output leaves farms without adequate processing, resulting in the loss of significant economic value and industrial opportunities.

In the solid minerals sector, he identified more than 44 commercially viable minerals across over 500 locations, including lithium, gold, barite, bitumen, iron ore and high-grade limestone, describing them as strategic resources capable of supporting steel production, energy storage, electrification and advanced manufacturing.

The DG further drew attention to Nigeria’s industrial and agro-waste resources, noting that the country generates over 32 million tonnes of solid waste annually. He explained that agricultural residues, cassava peels, scrap metals, plastics and electronic waste could serve as important feedstock for bio-fertilisers, industrial chemicals, recycled polymers, energy production and other manufacturing applications.

In the agricultural sector, the DG identified cassava and industrial starch, cotton and natural textiles, natural rubber and elastomers, oil palm and oleochemicals, maize derivatives and cocoa processing as priority areas requiring increased investment.

He explained that processing agricultural commodities into industrial starch, sweeteners, textiles, technical rubber, specialty fats and other intermediate products would enable Nigeria to capture more value from its agricultural resources while reducing dependence on imported industrial inputs.

For the minerals sector, he highlighted crude oil-to-olefins and petrochemicals, lithium and energy storage, iron ore and steel, rare earth elements, bauxite and aluminium, and copper and electrification as strategic investment opportunities.

He particularly emphasised the importance of moving beyond mineral extraction into beneficiation, refining, battery precursors, industrial chemicals, metal fabrication and advanced materials production.

On the circular economy, Prof. Ike-Muonso identified electronic waste recovery, scrap metal recycling, plastic waste processing, agro-waste valorisation and battery recycling as emerging industrial opportunities.

He explained that transforming waste into productive industrial feedstock would not only reduce environmental pollution but also create new manufacturing industries, generate employment and reduce the importation of valuable industrial materials.

He noted that to address the structural challenges confronting raw material-based industrialisation, the DG highlighted the strategic interventions of the RMRDC, particularly the proposed 30% Value Addition Bill and the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP).

He described the 30% Value Addition Bill as an important policy instrument designed to encourage domestic processing of raw materials before export, strengthen local manufacturing capacity and guarantee access to essential raw materials for Nigerian industries, and NISSRAMP as a critical data infrastructure that would improve access to verified information on the availability, location and quality of raw materials.

According to him, the combination of appropriate policy instruments and reliable resource data would help de-risk investments, improve transparency and strengthen confidence in Nigeria’s raw material sector.

He emphasised the importance of collaboration among government, academia and industry in developing bankable projects, sharing investment risks and accelerating the establishment of processing and manufacturing facilities.

Professor Ike-Muonso called on Nigerians in the diaspora and other local and international investors to take advantage of the opportunities available in Nigeria’s raw material sector.

He identified industrial processing parks, mineral beneficiation and refining, agro-industrial platforms, circular-material processing, industrial input manufacturing and enabling infrastructure as viable investment platforms.

He noted that diaspora investors could contribute beyond financial capital by bringing technology, international business networks, governance standards, technical expertise and access to global markets.

He maintained that Nigeria’s industrial transformation requires coordinated investment across the entire value chain, from raw material sourcing and aggregation to processing, manufacturing, certification and export development.

Professor Ike-Muonso stressed that the country’s industrial future would depend not merely on the volume of raw materials extracted but on the capacity to transform them into competitive products that meet domestic and international market requirements.

He maintained that developing local value chains would stimulate industrial growth, create employment opportunities, diversify exports, conserve foreign exchange and deepen Nigeria’s technological capabilities.

Through its strategic interventions, the RMRDC is positioning itself as a critical bridge between resource availability, investment opportunities and industrial competitiveness, with the ultimate objective of transforming Nigeria from a predominantly raw material exporting economy into a strong manufacturing and value-adding nation.

Ike-Muonso has demonstrated this since assumption of office as the Director General/ CEO RMRDC in the area of capacity building, improved working conditions, promotion of merit, and maintaining a conducive environment that rewards excellence, innovation and dedication. This is evident in his institution of RMRDC training school, reward for winners of the RMRDC innovation challenge among others.

His commitment has brought recognition both nationally and internationally: Al-Jazirah double honour awards as Public Servant /Government Agency of the year 2024-2025 and the recent election as the Sub-Saharan Africa Regional Representative on the Board of the World Association of Industrial and Technological Research Organisations (WAITRO) is a attestation to his commitment.

Concluding the lecture, the DG charged staff, researchers, manufacturers and investors to see themselves as nation builders in the new era of raw materials-led industrialization.

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