It is not kumbaya or huray for these states in red. In short they have to start asking critical questions on why they are in red! Ability to manage an economy and debt efficiently should be the strong basis to push for electoral position, this is a global practice but in Nigeria it is a different kettle of fish. Here to be elected , the ability to align with religious, political and possibly emotional ideosyncracies and similitudes of people are basically what you need to get the political office not intellectual sagacity, capacity and dexterity to deliver.

Recently , we saw tables of states across the nation that re doing well and in dire need. We have seen that states like Rivers State , Anambra states and many states in Northern region have demonstrated economic resilience and attitude to shore up their capital and their debt profile in good books, but unfortunately, the south west states have about 80% of their states in red! Even Lagos the alleged centre of excellence. What the economic watchers are asking what happened to the debt management profile, what happened to the debt portfolio and what happened to the capacity to deliver life changing infrastructure that can turn around the states for good.

I know that Nigerians have the urge and the will to blame the federal government for their inability to scale but in this case, the adminstration of Buhari must be exonerated as a matter of fact ! In short this adminstration have shown that they have the capacity to allow the states to thrive and this is seen by various projects around such as the ongoing Niger Bridge, Lagos Ibadan freeway, Rails etc !

But the big questions are what are the state governors doing with their funds? Who is overseeing these funds ? Why are they in deficit?

One thing that this table has shown is that many of the states in red has the inability to be self sustaining or in dire need of salvage. Failure to do so would amount to insolvency. If the state were to be organisations, liquidation and foreclosure would set in. With thee figures we have, what this implies is simple, the managers of these political entities (states ) don’t have what it takes or might have what it takes it lack the political balls to change the narrative.

Yes,debt is good in economics but inability to sustain and maintain it is worrisome. A trend that we are seeing many states in South West and many other states. Majority of the states in the list should sit back and have a review what they are doing right or wrong. A moment of smelling the coffee and also a moment of truth. We can’t blame it all on Covid-19,this tool years to get to this point !

Economics term it Debt to GDP ratio. The higher the number of debts a state encounters this affects the GDP of the states. The debt-to-GDP ratio are associated with insignificant effects on economic growth. However, as government as debt rises, the effect on economic growth diminishes rapidly and the growth impacts become negative.

According to Cristina Westphal, “the growth rate of gdp per capita, k = 1 or 5 (three different measures are used in the empirical estimation : annual growth rate git +1 ; 5-year cumulative overlapping growth rate git/t +5, where t takes annual values ; and 5-year cumulative non-overlapping growth rate git +5, where t takes the values at the start of each half-decade) .”

” High public debt can negatively affect capital stock accumulation and economic growth via heightened long-term interest rates, higher distortionary tax rates, inflation, and a general constraint on countercyclical fiscal policies, which may lead to increased volatility and lower growth rates” Veronica De Rugy opined in her postulation on her work “Debt and Growth: A Decade of Studies.”

The need to review the recurrent expenditures of these states in red, shore up internal generated revenue (IGR) not by high taxation,going through the route of high taxation would make corporate organisations leave to a tax haven and trust me ,many states like Anambra and North are granting tax havens to organisations to establish and leveraging on technology especially ICT,they can have their services and solutions in any part of the nation,so throwing up taxing is out of it as a way to shore up IGR! Reduce Government spending, reduce recurrent expenditures, go into public private partnership (PPP) or concession of some key infrastructure.

High marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources. Going via tax road to shore up debt would be inimical for many of the states in red. Many businesses go bankrupt, because they can’t afford to operate after government takes its cut. Other businesses flee the country, to escape the high taxes. And still other businesses must cut their payrolls to stay within their incomes. The result in each case is the loss of jobs those businesses provided in the economy.

What do the states got to do? They must basically reevaluate their economic policies and standing ,create an enabling environment for businesses to thrive and also introduce ways to support SME and new businesses . These new business would pay tax after a given tax holiday. Most importantly,identify key projects not elephant projects. A state like Abia has no need building an airport ,becuse the state uses Imo Airport which is at Okpala a boundary town to Abia state and about 18 minutes drive to the economic hub of the state Aba and about 24 minutes drive to the capital , Umuahia. So why build airport when you can build fantastic roads in Aba and encourage the Alaoji power plant so that the manufacturers can have a robust environment to thrive and new businesses grow, this would translate in payment of duties, levies and whatever tax.

As it stands now, many of these states must start looking at the next level of economic emancipation. As it stand now,they are in economic woods and the need to have an economic sounded individuals and team to pilot the states becomes more imperative now that the cost of crude oil is dwindling.

Anthony Emeka Nwosu

Leave a Comment

Your email address will not be published.

You may also like

Business Economy Government

Report by Prof. Ndubuisi Ekekwe: “Navigating Economic Challenges in Nigeria: A Call for Fiscal Federalism and Regional Restructuring”



In a recent article, Prof. Ndubuisi Ekekwe extends best wishes to policymakers as they endeavor to formulate crucial policies for Nigeria’s economic stability. Highlighting the urgency of the situation, he notes that the Federal Government has disclosed plans to raise $10 billion to address persistent challenges faced by the country’s currency, the Naira. The primary goal of this financial initiative is to enhance liquidity in the foreign exchange market, particularly amid growing concerns over the Naira’s sharp decline, reaching an unprecedented low of 1,850 per dollar at the parallel market on Tuesday.

While acknowledging the importance of effective solutions, Prof. Ekekwe issues a cautionary note, urging the nation to avoid a potential vicious circle where raising funds today to combat crises may lead to a perpetual dependence on…

Read More
Announcements Business Economy

Canon celebrates 21st consecutive year of No. 1 share of global interchangeable-lens digital camera market


Canon Inc. ( announced today that the company’s interchangeable-lens digital cameras (digital SLR and mirrorless cameras) have maintained the No. 1 share1 of the global market for 21 consecutive years from 2003 to 2023.


Canon’s EOS series of interchangeable lens digital cameras are imaging systems based on the basic concept of “Speed, Comfort, and High Image Quality,” for which the company has developed proprietary key components, including CMOS image sensors, the DIGIC image processors, and interchangeable lenses. Putting together a wide-ranging product lineup –from high-performance flagship models that are highly trusted by professionals to entry-level models that allow users to enjoy full-scale shooting with easy operation, as well as a rich selection of over 1152 RF and EF series lenses that make a wealth of creative expression possible – Canon continues to support the diverse needs of customers.


During the dawn of digital SLR cameras, Canon introduced…

Read More
Business Economy Finance International Investments

Nigeria Poised to Host African Central Bank by 2028, Affirms President Bola Tinubu at African Union Summit



President Bola Tinubu of Nigeria declared Nigeria’s readiness to host the African Central Bank in adherence to the Abuja Treaty during his address at the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia, on Saturday.

President Tinubu emphasized his administration’s commitment to collaborate with the African Union Commission and member states to ensure the timely establishment of the African Central Bank by the scheduled year 2028. The President underscored that Africa’s success in addressing challenges lies in resolute unity, cautioning against perpetuating existing problems and creating new ones.

“In confronting the hurdles threatening our mission for qualitative democratic governance and economic development, we must rely on deep-rooted solidarity and resolve as a continent,” President Tinubu asserted.

Addressing regional concerns, President Tinubu commented on military takeovers in Guinea, Burkina Faso, Mali, and Niger. He urged for continued regional cooperation despite…

Read More

Why Africa’s networks need to defend against the devastating effect of SIM swap fraud


Mobile networks must not be complacent about SIM swap fraud and they need to prioritise the protection of customers. This is according to Gur Geva, Founder and CEO of iiDENTIFii (


“Although SABRIC has noted a slight decline in reported SIM swap fraud in its latest report, mobile service providers still need to tighten up their data security to protect against fraudsters using false identities and SIM swap scams,” says Geva.


This is particularly relevant as telecommunications and banking industries become increasingly intertwined. Banks now offer mobile services, while mobile network operators provide financial services, and so there is a convergence between the regulatory requirements of FICA and RICA. This shift has led to heightened identity theft risks, requiring mobile operators to adopt stringent identity verification practices inspired by the financial sector’s standards.


Operators need to define practical, robust security solutions that adhere to and surpass current telco…

Read More
Business Energy

Nigerian Electricity Regulatory Commission (NERC) Considers Adjusting Prepaid Meter Prices


 In response to the challenges posed by limited resources and foreign exchange constraints within the country, the Nigerian Electricity Regulatory Commission (NERC) is currently examining the possibility of implementing adjustments to the prices of prepaid meters.

Acknowledging the prevailing economic realities, the Commission is deliberating potential price increases to ensure sustainability and viability within the electricity metering sector. This initiative aims to address the intricacies associated with meter pricing in light of evolving market dynamics.

In line with this effort, Meter Asset Providers (MAPs) have temporarily suspended the sale of new meters, pending NERC’s approval of revised pricing structures. Consequently, the processing of new meter applications has been put on hold until the anticipated price adjustments come into effect.

Moreover, in response to foreign exchange challenges, meter manufacturers have temporarily halted the issuance of invoices until the revised meter prices…

Read More
Art Business



President Bola Tinubu says Nigeria is ready to host the African Central Bank in line with the vision of the Abuja Treaty.

Addressing leaders at the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia, on Saturday, President Tinubu said his administration will engage the African Union Commission in collaboration with member states to ensure that the bank takes off as scheduled in 2028.

The President affirmed that Africa’s success in conclusively addressing its challenges hinges on the firmness of its resolution, built on a foundation of deep-rooted solidarity, if it is to avoid perpetuating existing problems and creating new ones.

“As a continent and as individual nations, we face strong headwinds and difficult hurdles threatening to complicate our mission to bring qualitative democratic governance and economic development to our people. Many of these obstacles, such as climate change and…

Read More
Announcements Business Entertainment Fashion Gadgets Technology Technology Trends




LG Electronics continues to set new standards in consumer electronics with the unveiling of its latest lineup featuring sleek, minimalist designs tailored to enhance the modern lifestyle.


In a world where technology seamlessly integrates into daily routines, LG Electronics understands the importance of design that not only complements living spaces but also elevates them. With a commitment to innovation and aesthetics, LG’s new range of products embodies the perfect balance of form and function. From cutting-edge Televisions to state-of-the-art home appliances, LG’s minimalist design ethos shines through in every product. With clean lines, premium materials, and intuitive interfaces, consumers can enjoy both sophistication and simplicity in their everyday interactions.


“We believe that great design should enhance the user experience, not distract from it,” said Mr. Hari Elluru, Head, Corporate Marketing, LG Electronics, West African Operations. “Our latest lineup embodies our dedication to creating products that…

Read More
Business Government Software Technology

NDPC Issues Guidance Notice on Registration of Data Controllers and Processors of Major Importance


The Nigeria Data Protection Commission has issued a Guidance Notice (NDPC/HQ/GN/VOL.02/24) to data controllers and processors of major importance in order to clarify the categories of organizations that are required to register with the Commission in line with the Nigeria Data Protection Act (NDPA) 2023. Relying on sections 5(d), 44 and 65 of the NDPA, organizations that are of “particular value or significance to the economy, society or security of Nigeria” are designated by the Commission as data controllers and processors of major importance.
According to the Guidance Notice dated 14th of February and signed by the Commission’s Head of Legal Enforcement and Regulations, Babatunde Bamigboye, Esq., “A data controller or data processor shall be deemed to have particular value or significance to the economy, society or security of Nigeria and hence designated to be of major importance if it keeps or has access…

Read More