Headlines
Domestic Debts Hit N22.57tn As Buhari Seeks Fresh N819bn Loan
Nigeria’s domestic debt rose to N22.57tn as the Federal Government on Wednesday proposed a last-minute supplementary budget for the 2022 fiscal year.
The President, Major General Muhammadu Buhari (retd.), is seeking the approval of the National Assembly for N819.54bn supplementary budget, which it planned to finance through domestic borrowing.
Buhari on Wednesday forwarded to the National Assembly for approval, N819.5bn supplementary budget for the 2022 fiscal year to fix various infrastructure destroyed by floods across the various states in the country a few months ago.
The supplementary budget as explained by the President in a letter read in plenary by the President of the Senate, Ahmad Lawan, is meant for the capital expenditure component of the 2022 budget with an attendant increase of deficit to N8.17tn.
The letter read, “The year 2022 has witnessed the worse flood incident in recent history which has caused massive destruction of farmlands at a point already closed to harvest season.
“This may compound the situation of food security and nutrition in the country. The flood has also devastated road infrastructure across the 36 states and the FCT (Federal Capital Territory) as well as bridges nationwide that are critical for the movement of goods and services.
“The water sector was equally affected by the flood and there is a need to complete some ongoing critical projects that have already achieved about 85 percentage completion. The nine critical projects proposed in the sector cut across water supply, dam projects, and irrigation projects nationwide.
“I have approved a supplementary budget of 2022 appropriation of N819.536bn, all of which are capital expenditures. The supplementary will be financed through additional domestic borrowings which will raise the budget deficit for 2022 to N8.17tn and deficit to GDP ratio to 4.43 per cent.”
Being a proposal coming 10 to the New Year, the President of the Senate hurriedly forwarded it to the Senate Committees on Appropriation, Finance, Works, Water Resources and Agriculture for expeditious consideration.
The Federal Government’s initial plan was to borrow N5.01tn (with domestic debt put at N2.51tn) to finance part of the N6.26tn budget deficit.
With the newly proposed N819.54bn domestic debt, the Federal Government’s domestic borrowing is expected to hit N3.33tn for 2022.
Data from the Debt Management Office showed that the Federal Government’s domestic debt stock was N19.24tn as of December 2021.
By September 2022, the domestic debt stock had risen to N21.55tn, which means that the Federal Government had borrowed N2.31tn so far.
With the additional N819.54bn borrowing, the Federal Government can still accommodate N1.02tn more domestic debt in line with its plan.
The Federal Government’s domestic debt rose from N8.4tn as of June 2015 to N21.55tn as of September 2022, according to The Punch.
This showed an increase of N13.15tn or 156.55 per cent under Buhari.
The Federal Government proposed to spend N4.5tn on interest charges for domestic debt by 2023, according to the proposed 2023 budget.
This is an increase of 243.51 per cent from the N1.31tn proposed allocation for interest charges on domestic debt in 2016.
In its latest Africa’s Pulse report, the World Bank said that public debt in Nigeria was concerning due to the rising debt service-to-revenue ratio.
According to the bank, the debt service to revenue ratio could stand at 102.3 per cent by the end of 2022.
While presenting the 2023 appropriation bill to a joint session of the National Assembly recently, the President, Major General Muhammadu Buhari (retd.), noted that despite the revenue challenges in the country, the country still consistently met its debt service obligation.
“Despite our revenue challenges, we have consistently met our debt service commitments. Staff salaries and statutory transfers have also been paid as and when due,” Buhari added.
However, speaking at the launch of the World Bank’s Nigeria Development Update titled, ‘The urgency for business unusual,’ held recently in Abuja, the Finance Minister, Zainab Ahmed, had admitted that Nigeria was struggling to service its debt.
She said, “Already, we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate, so it is a very difficult situation.”
The Punch
The Federal High Court in Abuja, on Tuesday, gave the leader of the Indigenous People of Biafra, Nnamdi Kanu, until November 5 to defend the terrorism charges filed against him or risk waiving his right to do so.
The trial judge, Justice James Omotoso, advised Kanu to consult legal practitioners experienced in criminal law to assist with his defence or to formally appoint a lawyer to represent him in court.
Justice Omotosho’s decision followed Kanu’s continued refusal to open his defence, insisting that there was no valid charge pending against him.
Kanu, who represented himself during Tuesday’s proceedings, told the court that he would not return to detention unless the charges against him were properly presented.
He argued that his continued detention by the Department of State Services was unlawful, maintaining that he had not breached any known law.
He also accused the court of disregarding the Supreme Court’s judgment which, according to him, condemned his extraordinary rendition from Kenya.
He demanded that the trial judge immediately discharge him from custody.
When reminded that the Supreme Court had ordered a fresh trial, Kanu maintained his position that the terrorism charge was invalid and incompetent.
Citing Section 36(12) of the 1999 Constitution, he argued that there was no existing law creating a terrorism offence in Nigeria.
“In Nigeria today, the Constitution is the supreme law. There is no valid charge against me. I will not go back to detention today. The Terrorism Prevention and Prohibition Act has been repealed. I cannot defend myself under a repealed law,” Kanu said.
He further challenged any lawyer to show him a valid charge, urging the court to “take judicial notice” of what he claimed was the repeal of the terrorism law.
“I cannot be tried under a law that has been repealed. Prosecuting me under such a law is a violation of my fundamental rights,” he insisted.
After several attempts to persuade him to enter his defence, Justice Omotosho adjourned proceedings until November 5, 2025, giving Kanu the final opportunity to either defend the charge or forfeit his right to do so.
During the session, counsel for the Federal Government, Adegboyega Awomolo (SAN), informed the court that some documents served on him by Kanu were unsigned and not endorsed by the court, arguing that they held no evidential value.
There was drama in the Senate on Tuesday following the recent threat by Donald Trump, the President of the United States to take military action against Nigeria over alleged persecution of Christians.
It started when Godswill Akpabio, the Senate President, was addressing reports by an online platform alleging that he had publicly rebuffed Trump over his recent comments and had said Nigerians were “not complaining” about their condition.
The visibly displeased Senate President denied ever making such statements, describing them as “false and malicious.”
He condemned the publication, saying it was an attempt to create diplomatic tension and discredit the National Assembly.
“The fake report claimed I said Nigerians are not complaining that we like the way we are living. That is completely false. I have petitioned the police and the DSS,” he said.
Akpabio said, “Somebody will sit in the comfort of his room and fabricate a report, attaching fake pictures from 2023 when I visited Port Harcourt with senators for a completely different event, and then claim that the Senate President replied President Trump.
“Who am I to answer Trump?” Akpabio asked jokingly.
The issue, however, sparked heated reactions on the floor of the Senate as Akpabio, and his deputy, Barau Jibrin, openly differed on how the Nigerian legislature should respond.
While Akpabio dismissed reports that he had already reacted to Trump’s comments, declaring, “Who am I to answer Trump?”, Barau quickly interjected, insisting that he was not afraid of the American leader.
“I’m not scared of Trump. I will say my mind. I’m a Nigerian. Nigeria is a sovereign nation,” Barau said passionately.
The Deputy Senate President added, “I’m a parliamentarian, the Deputy Senate President, I can speak. Don’t be scared of Trump. You can say your mind about Trump. We are a sovereign nation.”
The exchange, which briefly lightened the mood in the chamber, underscored a divide in tone between both presiding officers on how Nigeria’s parliament should handle the diplomatic row.
“It is the Presidency that will respond to President Trump, not the Senate President. But who is that person that would ascribe a comment to me when I was never contacted?”
Akpabio urged security agencies to investigate and prosecute those behind the viral story, describing it as an effort to “cause friction and bring the Nigerian Senate into disrepute.”
“I believe the Cybercrimes Unit of the police, the DSS, and others should find that character out. This is meant to sow division. Social media should not be allowed to break Nigeria,” he added.
The Senate President, however, noted that the Red chamber would take an official position on Trump’s remarks once the federal government had clarified its stance.
He said, “When the executive responds, we will take a position as a Senate. Until then, no one should speak for this institution.”
Over the weekend, Trump declared via social-media that Nigeria faces “an existential threat” to its Christian population and warned that the U.S. may deploy troops or conduct air-strikes if the Nigerian government fails to halt the killings.
He instructed the Pentagon to prepare for possible action and threatened to cut all U.S. aid to Nigeria.
In tandem, the U.S. re-added Nigeria to its “Country of Particular Concern” list for religious freedom violations.
The Nigerian government rejected the designation and the characterisation of persecuting Christians, insisting that Nigeria protects religious freedom for all.
Source: businessday.ng
China, on Tuesday, opposed US President Donald Trump’s threat to carry out military action against Nigeria over the alleged persecution of Christians, as it backed the Nigerian government in leading its people to follow a development path in line with its national conditions.
Trump Saturday said if the Nigerian government continues to allow the killing of Christians, the US will immediately stop all aid and assistance to the West African country, and may go for military action to wipe out the Islamic terrorists.
Asked for her comments on Trump’s threat, Chinese Foreign Ministry spokesperson Mao Ning told the media that the Nigerian Foreign Ministry issued a statement, stating that the US’s claims did not reflect the current realities in Nigeria, and the government had remained committed to fighting terrorism, strengthening interfaith harmony, and protecting the lives and rights of all its people.
As a comprehensive strategic partner, China firmly supports the Nigerian government in leading its people to follow a development path in line with its national conditions, Mao said.
“China opposes interference by any country in the internal affairs of other nations under the pretext of religion or human rights and opposes the arbitrary use of sanctions and threats of force,” she said.
On the reports that Venezuela is seeking missiles and drones following a dozen US strikes on the boats in the region on the suspicion that they carried drugs, Mao said China is opposed to the use of force in the name of fighting drug cartels.
China supports enhanced international cooperation in combating transnational crimes, but opposes the use of threats of using force in international relations, and actions that undermine peace and stability in Latin America and the Caribbean, she said.
China is against unilateral so-called law enforcement operations against vessels of other countries that exceed reasonable and necessary limits, she added.
“We hope the US will carry out normal law enforcement and judicial activities within bilateral and multilateral legal frameworks,” Mao said, without mentioning whether China will support military equipment to Venezuela.
“China’s normal exchanges and cooperation with Venezuela are conducted between sovereign states, without targeting any third party, nor are they subject to interference or influence by any third party,” she said.
Source: orissapost
