Market News

From Priscilla Ediare, Ado-Ekiti

Legal luminary and Proprietor of Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola, has said Nigeria’s rising debt profile has been making the country look unattractive to foreign investors.

While lamenting the development, the Senior Advocate called for urgent reforms and responsible fiscal management to restore economic stability, earn the confidence of investors, and ensure sustainable development in Nigeria.

Babalola made the remarks at the weekend in Ado-Ekiti during the 2025 International Leadership Conference on Leadership, Governance, Sustainable Change and Wealth Creation (2.0), jointly hosted by ABUAD, Nigeria Trinity Western University (TWU), Vancouver, Canada, and African Centre for Leadership, Strategy and Development (CentreLSD).

Speaking on the conference theme: “Shaping Transformational Leaders for a Changing World: Tackling Insecurity, Governance and Development”, Babalola described the theme as “most appropriate at this time of our development” considering the financial situation in the country.

Babalola, who noted that the country’s financial institutions are also not spared in the debt crisis, mentioned the alarm raised by commercial banks that the Central Bank of Nigeria (CBN) is not honouring promissory notes issued by the government.

He said, “The theme of this conference is most appropriate at this time of our development. Records show that Nigeria as at today is a big debtor country. Nigeria’s total public debt is put at N152.4 trillion or $99.7 billion.

“Consequently, most business companies from other countries do not want to invest in this debtor country. As I am talking to you now, I know as a fact that our banks are complaining that the Central Bank is not honouring promissory notes issued by government on the allegation that the Federal Government is in debt and cannot pay the Central Bank.

“The main function of a government is contained in Section 14 of the Constitution. For avoidance of doubt, it reads as follows: The Federal Republic of Nigeria shall be a State based on the principles of democracy and social justice.

“It is hereby, accordingly, declared that: Sovereignty belongs to the people of Nigeria from whom government through this Constitution derives all its powers and authority;

“The security and welfare of the people shall be the primary purpose of government. The participation by the people in their government shall be ensured in accordance with the provisions of this constitution.”

Delivering his lecture titled: “Transformational Leadership in an Insecure and Disruptive Era: Building Ethical, Resilient and Impactful Leaders for Africa”, a development expert and founding Executive Director of African Centre for Leadership, Strategy and Development (CentreLSD), Otive Igbuzor identified transformational leadership as a major tool necessary to combat bad governance, corruption, unemployment, gender inequality and environmental degradation in Nigeria and Africa at large.

Igbuzor, who noted that Nigeria and Africa require a new generation of leaders who can challenge conventional approaches and promote innovations, explained that transformational leadership will enable the government to reward merit, integrity and innovation rather than mediocrity and patronage.

The expert expressed that Nigeria must be guided by the imperatives of ethical leadership, innovative education, institutional integrity, inclusive governance and continental collaboration.

He called on the federal government to institutionalise leadership training across schools and universities to ensure that leadership formation becomes as essential as literacy.

The Vice Chancellor of ABUAD, Prof. Smaranda Olarinde, in her address, remarked that the conference was timely. She added that it underscored the vital importance of international, regional and public-private partnerships in tackling the underlying challenges, such as insecurity, hunger, poverty, economic uncertainty and infrastructural decay.