How The South East Is Outperforming The Indebted South West In Economic Mastery - Politics

How The South East Is Outperforming The Indebted South West In Economic Mastery - Politics - Nairaland

Nairaland Forum › Nairaland General › Politics › How The South East Is Outperforming The Indebted South West In Economic Mastery (952 Views)

1 2 Reply (Go Down)

How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 8:56am On May 26

PRUDENCE OVER PROFLIGACY:

The latest subnational external debt profiles released by the Debt Management Office (DMO) have shattered the long-held myth of who truly anchors sustainable economic growth in Nigeria. For years, massive, credit-fueled balance sheets have been paraded as milestones of development. However, the hard data reveals a completely different reality: the South East is silently engineering an economic masterclass—building massive infrastructure without mortgaging its future to international lenders, while the heavily financialized South West sinks further into a mountain of dollar-denominated debt.

The Debt Realities: A Region in Control vs. A Zone in Jeopardy

According to the audited DMO data, the South East stands tall as the least externally indebted zone in the entire federation, maintaining a tightly managed external debt stock of just $534.72 million. With an average debt of only $106.94 million per state, the region’s governors have resisted the tempting but dangerous trap of easy foreign loans. They have proven that independent fiscal discipline, aggressive internal revenue optimization, and community-driven development are far superior to foreign intervention.

In stark contrast, the South West has become the epicentre of subnational foreign debt concentration. The region is currently drowning under a massive $1.80 billion external debt burden—averaging a whopping $299.60 million per state. Driven aggressively by the high-leverage model of Lagos and its surrounding states, the South West now carries more than triple the foreign debt weight of the South East. This massive dollar vulnerability exposes southwestern economies to severe exchange rate shocks, where currency depreciation instantly inflates the local cost of servicing these loans, eating deep into funds that should go toward governance.

The Infrastructure Paradox: Real Capital Investment vs. Debt-Fueled Splurges

The traditional critique from pro-borrowing economists is that low debt signifies a stagnant economy. Yet, the South East completely turns this theory on its head. The region's economy is profoundly okay, remarkably stable, and intensely productive. Instead of relying on foreign credit lines to build roads, bridges, and markets, the South East has relied on a brilliant mix of public-private partnerships, diaspora inflows, and a cultural blueprint of communal self-sufficiency.
From massive localized urban rehabilitation to independent trade infrastructure, the East is investing heavily in capital assets that yield immediate economic returns. Because these projects are funded through disciplined budget execution rather than skyrocketing foreign loans, eastern states do not have to export their future tax revenues to global institutions. They build, they own, and they profit—entirely on their own terms.
Meanwhile, a massive portion of the South West's $1.80 billion debt goes directly into servicing the high-overhead costs of megaprojects that frequently stall or require continuous refinancing. While the South West remains perpetually hooked on the financial treadmill of international lenders, the South East has proven that the truest form of economic power is infrastructure built on a foundation of zero financial bondage.

The Macroeconomic Verdict: The 2025 financial year has drawn a clear line between debt-driven illusions of wealth and genuine, self-sustaining economic mastery. By keeping its foreign debt at a national low while aggressively scaling up localized infrastructure, the South East has redefined what it means to be fiscally sound. The East isn't just surviving; it is showing the rest of Nigeria how to build a world-class economy without selling out to foreign creditors.

4 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Dreal1247: 9:12am On May 26

South West has to as a matter of necessity always settle the landlord. The rentage is so exorbitant that at times, borrowing is needed to settle everybody including the consultants consulting for the landlord. Fortunately in the South East, there is no landlord to settle but the masses. That's the reason why they are fighting Mr Peter Obi. When he comes, no more landlord to settle but Nigerian resources shall be used for the service of Nigerians. A new Nigeria is POssible.

4 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Owoino: 9:18am On May 26

How the South West is producing Nigerian presidents while the South East will never do that in a thousand years grin

6 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by lawani(m): 9:20am On May 26

Compare on a per Capita basis as well because SW and NW are three times the population of the SE. You can't just be comparing 19 million to 60 million like that

Then the more your revenue the more your access to loans. Lagos revenue gives them access to loans just like Ehugu revenue now also gives them access to loans

SE also needs less loans because they collect by far a higher allocations per Capita as they have a higher number of states per Capita than any zone. They therefore have more money than others to spend on infrastructure and HDI. This is shown clearly by the fact they collect five times the VAT they pay in

5 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Dreal1247: 9:23am On May 26

I have listened to Late Prof Dora Akunyili on the role she played to bring Good luck to power when the powers that be never wanted to. I have also listened to Prof Humphrey Nwosu of blessed memory on the account of June 12. These are outstanding Igbo man and woman of unquestionable integrity. Sincerely, these are the same qualities that make Mr Peter Obi an outstanding figure in Nigerian politics. ONE WELL GUARDED AND PROTECTED SECRET TRUTH IS THE FACT THAT THE SO-CALLED IGBO COUP WAS DESIGNED TO MAKE THE BEST PRUDENT MANAGER, OBAFEMI AWOLOWO TO BECOME THE PRESIDENT. They painted an Igbo man black because they are not willing to play manipulative politics. It's evidently clear that a true Igbo man doesn't fit into the Nigerian politics as it places his integrity at stake.

3 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Armaggedon: 9:40am On May 26

lawani:
Compare on a per Capita basis as well because SW and NW are three times the population of the SE. You can't just be comparing 19 million to 60 million like that

Then the more your revenue the more your access to loans. Lagos revenue gives them access to loans just like Ehugu revenue now also gives them access to loans

SE also needs less loans because they collect by far a higher allocations per Capita as they have a higher number of states per Capita than any zone. They therefore have more money than others to spend on infrastructure and HDI. This is shown clearly by the fact they collect five times the VAT they pay in

it's only in southwest that
there exist the warped logic that borrowing is a sign of good fiscal performance. It's really unfortunate their politicians have a way messing up their minds and getting away with anything they want. It is a known fact only economies with terrible fiscal condition that engage in borrowing. If Lagos generate such fund, why does it need borrowing for recurrent expenditure? They'll point to USA, forgetting USA is the sole issuer of the most used currency.
Borrowing in Nigeria is corruption and that what it is.

2 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by lawani(m): 9:42am On May 26

Armaggedon:
it's only in southwest that
there exist the warped logic that borrowing is a sign of good fiscal performance. It's really unfortunate their politicians have a way messing up their minds and getting away with anything they want. It is a known fact only economies with terrible fiscal condition that engage in borrowing. If Lagos generate such fund, why does it need borrowing for recurrent expenditure? They'll point to USA, forgetting USA is the sole issuer of the most used currency.
Borrowing in Nigeria is corruption and that what it is.

SW and SE have around the same debt per Capita if you consider the population. Don't just think on the surface. Think deep

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 9:43am On May 26

You might be right to an extent cos in Igbo land you can't be a godfather... Nobody will listen to you

Dreal1247:
South West has to as a matter of necessity always settle the landlord. The rentage is so exorbitant that at times, borrowing is needed to settle everybody including the consultants consulting for the landlord. Fortunately in the South East, there is no landlord to settle but the masses. That's the reason why they are fighting Mr Peter Obi. When he comes, no more landlord to settle but Nigerian resources shall be used for the service of Nigerians. A new Nigeria is POssible.

3 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 9:44am On May 26

Population of SW and SW are same almost but the debts are not ...so how come round the capita theory

lawani:
SW and SE have around the same debt per Capita if you consider the population. Don't just think on the surface. Think deep

1 Like 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by lawani(m): 9:49am On May 26

ariesbull:
Population of SW and SW are same almost but the debts are not ...so how come round the capita theory

What proof do you have they have the same population? Colonial census? Lagos is 120 percent of the SE if we go by NIN registration while Oyo and Ogun together are almost the same as.the whole SE. Registered sim cards, voters registration numbers, number of UME candidates and many other stats say the same thing. Are all those stats forged?

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 9:51am On May 26

The most indebted state is USA and that is why their economies today is in tatters while China is the most populated while their economies is awesome

South West and South East are at par in terms of population or even the South East are more populated cos most south West States are empty and their villages desolated while South East cities are full yet in non Igbo cities they are the second most populated apart from indigenes even Lagos !

The idea that South-West states should simply “stop borrowing” sounds strong, but it misses how development actually works. No serious government builds infrastructure, industries, or modern cities without some level of borrowing. The real issue is not borrowing itself, but what the money is used for and whether it generates future income.

What actually holds back many states in the South-West (outside Lagos) is not debt, but weak revenue base, slow industrial growth, and underperforming internal economies. Lagos stands out because it built a strong tax system and invested heavily in infrastructure that keeps feeding its economy. The gap people notice between Lagos and other states is less about “debt versus no debt” and more about how aggressively each state turns investment into productivity.

Some states are simply developing at different speeds and with different resources, South East is now fastest developing region with list of diasporas funding . The real problem is not borrowing, but borrowing without clear returns. When debt is used for projects that don’t improve power, jobs, transport, or production, then yes, it becomes a burden instead of a tool.

If anything, the solution is not stopping borrowing completely... But showing what they are doing with the money . It’s building stronger economic foundations so that borrowing becomes optional, not survival. Because in modern development, the question is never “did you borrow?” but “did the money you used actually change your economy?”

lawani:
Compare on a per Capita basis as well because SW and NW are three times the population of the SE. You can't just be comparing 19 million to 60 million like that

Then the more your revenue the more your access to loans. Lagos revenue gives them access to loans just like Ehugu revenue now also gives them access to loans

SE also needs less loans because they collect by far a higher allocations per Capita as they have a higher number of states per Capita than any zone. They therefore have more money than others to spend on infrastructure and HDI. This is shown clearly by the fact they collect five times the VAT they pay in

2 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 9:51am On May 26

Remember that over 60% of Lagos population are non Yoruba going by that also

lawani:
What proof do you have they have the same population? Colonial census? Lagos is 120 percent of the SE if we go by NIN registration while Oyo and Ogun together are almost the same as.the whole SE. Registered sim cards, voters registration numbers, number of UME candidates and many other stats say the same thing. Are all those stats forged?

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 9:57am On May 26

Those are not the parameters oga! Lagos is highly populated but non indigenes make up about 65% and now if they register SIM cards in Lagos.... They will be captured in Lagos same with Abuja

lawani:
What proof do you have they have the same population? Colonial census? Lagos is 120 percent of the SE if we go by NIN registration while Oyo and Ogun together are almost the same as.the whole SE. Registered sim cards, voters registration numbers, number of UME candidates and many other stats say the same thing. Are all those stats forged?

1 Like 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by lawani(m): 9:59am On May 26

ariesbull:
Remember that over 60% of Lagos population are non Yoruba going by that also

What proof do you have that sixty percent of Lagos is non Yoruba? There is no survey that puts the Yoruba at less than seventy percent and it may be eighty percent. Then Lagos is not the most cosmopolitan city in Nigeria. PH, Kaduna, Jos and Abuja are more cosmopolitan. Yorubas as well can be making claims about PH Jos, Abuja, Awka and etc because they are well entrenched there too. Please if you choose to stay in Yoruba land then your output is counted as part of Yoruba output. Yoruba should not be expected to gift their ancestral heritage to others. Why are the Chinese Lebanese or Indians not making all these claims? I hope you know they have contributed more to Lagos than Igbos?

3 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by alanto: 10:35am On May 26

lawani:
What proof do you have that sixty percent of Lagos is non Yoruba? There is no survey that puts the Yoruba at less than seventy percent and it may be eighty percent. Then Lagos is not the most cosmopolitan city in Nigeria. PH, Kaduna, Jos and Abuja are more cosmopolitan. Yorubas as well can be making claims about PH Jos, Abuja, Awka and etc because they are well entrenched there too. Please if you choose to stay in Yoruba land then your output is counted as part of Yoruba output. Yoruba should not be expected to gift their ancestral heritage to others. Why are the Chinese Lebanese or Indians not making all these claims? I hope you know they have contributed more to Lagos than Igbos?

Your last paragraph. Of course he knows but how will beat his chest if he admits it. He knows the whole of SE is only equal to Oyo, that's 1/6 having same size of 5/5 but if he admits it it will ruin the agenda.

2 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by paramakina202: 11:14am On May 26

If you search Tinubu and his sons you will see all the money SW states borrowed.

2 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by PHIPEX(m): 11:19am On May 26

lawani:
Compare on a per Capita basis as well because SW and NW are three times the population of the SE. You can't just be comparing 19 million to 60 million like that

Then the more your revenue the more your access to loans. Lagos revenue gives them access to loans just like Ehugu revenue now also gives them access to loans

SE also needs less loans because they collect by far a higher allocations per Capita as they have a higher number of states per Capita than any zone. They therefore have more money than others to spend on infrastructure and HDI. This is shown clearly by the fact they collect five times the VAT they pay in

Why do you all like to lie to yourselves to feel good?

2 Likes 1 Share

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by christejames(m): 11:30am On May 26

At least, we Omoluabis eat fresh food and drink wines in a safe and calm environment... Keep eating statistics!

We are happy as long as our son is on the top cool

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by kimjessey2019: 11:43am On May 26

Bro this is all you could get from his post?
Nawaoo

Owoino:
How the South West is producing Nigerian presidents while the South East will never do that in a thousand years

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by IGBOPROMISE1: 12:13pm On May 26

Whatever modest achievements south-east is recording would have been much more and more impactful if we didn’t have APC installed visionless gov’ts in Imo and Ebonyi states! Though the one of Imo seemed to have woken up in the last two to three years….probably shaken out of his slumber by the performing gov’ts in Enugu and Abia!

2 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by IGBOPROMISE1: 12:41pm On May 26

Dreal1247:
I have listened to Late Prof Dora Akunyili on the role she played to bring Good luck to power when the powers that be never wanted to. I have also listened to Prof Humphrey Nwosu of blessed memory on the account of June 12. These are outstanding Igbo man and woman of unquestionable integrity. Sincerely, these are the same qualities that make Mr Peter Obi an outstanding figure in Nigerian politics. ONE WELL GUARDED AND PROTECTED SECRET TRUTH IS THE FACT THAT THE SO-CALLED IGBO COUP WAS DESIGNED TO MAKE THE BEST PRUDENT MANAGER, OBAFEMI AWOLOWO TO BECOME THE PRESIDENT. They painted an Igbo man black because they are not willing to play manipulative politics. It's evidently clear that a true Igbo man doesn't fit into the Nigerian politics as it places his integrity at stake.

Fair enough! But today, with the benefit of hindsight, we can now see how naive, idealistic, and stupid even, those Igbo soldiers involved in the coup were! They should have been aware of the simmering tensions and undercurrents that defined ethno-religious relations in Nigeria at the time and stayed out of it! Nobody send them message! Their involvement in that coup and how things eventually transpired gave those with historical hatred and envy for the Igbo/Eastern-Region the opening they were looking for to sabotage our interests and seize full hegemonic control of Nigeria! And it’s been downhill for all and sundry ever since!…..For all except members of the hegemonic alliance who have used their control of the military, gov’t, judiciary and politics to acquire insane wealth, power and privilege for themselves, their families and cronies! A lot of them have laundered their image to now emerge as ‘respectable pillars of society in business, politics and governance’! shocked

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 1:00pm On May 26

South East is still the safest region in Nigeria...yoiuu guys should stop deceiving yourselves and build your region

christejames:
At least, we Omoluabis eat fresh food and drink wines in a safe and calm environment... Keep eating statistics!

We are happy as long as our son is on the top

4 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by LagosOrigin: 1:01pm On May 26

Owoino:
How the South West is producing Nigerian presidents while the South East will never do that in a thousand years

How has the president bettered your life, that's what you should be asking yourself..

2 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Owoino: 1:04pm On May 26

LagosOrigin:
How has the president bettered your life, that's what you should be asking yourself..

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Owoino: 1:04pm On May 26

Emeka my life is perfect 👌

1 Like

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by esnbrutality: 1:04pm On May 26

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by WizardOfNG: 1:08pm On May 26

@OP.

Lol. You are at it again. 99% of your post is dedicated to comparing your folks to the Yorubas or disparaging the SW.

Do you know what your obsession displays to secure and winning Yorubas? It means you are consumed with trying to measure up to us.

We are your benchmark. Just letting you know buddy so you man up and face your business instead of chasing your own tail around all day.

3 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by WizardOfNG: 1:15pm On May 26

Owoino:
How the South West is producing Nigerian presidents while the South East will never do that in a thousand years

Me, as a Yoruba, remains happy these folks are always d1ck measuring with us while we don't give a toss about them.

It shows who is obsessed with who. People should check OPs topic. Majority show a morbid and scary obsession with the SW and Yorubas.

3 Likes

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by ariesbull(op): 1:20pm On May 26

While at that the South West is the most backward region in the southern Nigeria ....remove Lagos the remaining 5 States are nothing to write home about

When you install Oba in Ilorin then we can know effects

Owoino:
How the South West is producing Nigerian presidents while the South East will never do that in a thousand years

Re: How The South East Is Outperforming The Indebted South West In Economic Mastery by Streetinvestor2: 1:21pm On May 26

lawani:
Compare on a per Capita basis as well because SW and NW are three times the population of the SE. You can't just be comparing 19 million to 60 million like that

Then the more your revenue the more your access to loans. Lagos revenue gives them access to loans just like Ehugu revenue now also gives them access to loans

SE also needs less loans because they collect by far a higher allocations per Capita as they have a higher number of states per Capita than any zone. They therefore have more money than others to spend on infrastructure and HDI. This is shown clearly by the fact they collect five times the VAT they pay in

You keep talking off point How much is vat. Ask the SW governors what they are doing with thr IGR.You keep shouting about consumption tax which vat.
Can you give the estimate of igbos living in SE and the numbers living outside SE who contribute to this so call vat in those state
Tell me the amount the igbos in lagos contribute to the vat received in that state bearing in mind they contribute largely to the servicing of lagos economy. When you have a useless governor like the case of abia state of many yrs ago ,you won't see anything. The present governor is doing alot without borrowing .It is so because he is prudent in his management of resources.
The SW governors believe once they settle SW president who determines who becomes governor in that region. They owe nobody good performance again. In SE the governors know the people will keep asking questions and thr is no one single individual who is god father

1 Like

1 2 Reply

Are South East Governors Outperforming The South West? A Grounded Perspective • Most Indebted States In Nigeria 2023 • Any Attack On The South-East Is An Attack On The Yorubas — Igboho Warns FG • 2 • 3 • 4

Ehindero's Retirement: Tears Flowed From The Faces Of Dignitaries • U. S Congress To Hold Talks On Nigerian (s)election • Hillary Rodham Clinton Is America's Next President