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
Immediate past Governor of Kaduna State, Malam Nasir el-Rufai, has stated that the National Security Adviser, Nuhu Ribadu is planning to tarnish his reputation because of his 2031 Presidential ambition.
Speaking in an interview with Arise TV on Monday, el-Rufai alleged that Ribadu is collaborating with Governor Uba Sani of Kaduna, and the Independent Corrupt Practices and Other Related Offences Commission to destroy his image
“This project of destroying Nasir el-Rufai is Nuhu Ribadu’s conception. He is the architect and builder of that project. He is the one working with Uba Sani to implement it. So far, it has been frustrating for them,” el-Rufai said.
“Somebody wants to destroy my reputation. Why? Nuhu Ribadu wants to be president in 2031. He has to eliminate every northerner that he thinks is on the radar.”
Following the revelation by former Military President, Gen. Ibrahim Babangida in his book, “A Journey in Service” that the 1966 coup was not an Igbo coup as alleged, Igbo apex group, Ohanaeze Ndigbo, on Sunday, February 23, has demanded an apology and N10 trillion as compensation from President Bola Tinubu to the Igbos.
In his book, Babangida revealed that the primary objective of the coup plotters was to release Chief Obafemi Awolowo from prison and install him as Prime Minister. He emphasized that the involvement of officers from different ethnic backgrounds, including non-Igbo officers such as Major Adewale Ademoyega, Captain Ganiyu Adeleke, and Lieutenants Fola Oyewole and Olafimihan, further invalidates the claim that it was an Igbo-driven coup.
Additionally, some senior Igbo officers were also victims of the coup, such as Lt-Col. Arthur Chinyelu Unegbe, who was executed by fellow officer Major Chris Anuforo. This further weakens the argument that the coup was designed to serve Igbo interests.
Furthermore, Babangida pointed out that the coup was ultimately crushed by Major John Obienu, an officer of Igbo extraction, reinforcing the argument that it was not an ethnic uprising but rather a failed military intervention with specific political objectives.
Reacting, Ohanaeze noted that the story surrounding the coup at the time, unleashed disastrous repercussions on the Igbo people, which ultimately led to the cataclysmic horrors of the Biafra War.
In a statement by the Deputy National President of the Ohanaeze faction, Okechukwu Isiguzoro, the group noted that the apology and compensation had become necessary due to the ”staggering loss of life, with approximately three million Igbo—predominantly innocent women and children—slaughtered during the war.”
It stated that the revelations by IBB would compel Nigerians to confront the alleged ‘’stark injustices perpetrated against the Igbo people.”
The statement added that the demand for ten trillion naira in reparations remained steadfast, stressing that the figure was not arbitrary but a symbolic recognition of the ‘’huge losses the Igbo people had endured since the creation of Nigeria.”
The statement read:
“The apex Igbo socio-cultural organization, Ohanaeze Ndigbo, extends its profound appreciation to General Ibrahim Badamasi Babangida (IBB) for his remarkable courage in officially declaring that the January 1966 coup was unequivocally not an Igbo coup.
“This pivotal acknowledgement is not merely a correction of historical nomenclature but a significant moment in our collective pursuit of justice and reconciliation, signalling a potential end to the historical vindictiveness and cruelty that have been pervasive in Federal Government policies towards the Igbo Nation.
“His forthright exemption of the Igbo from the egregious classification as enemies of the Northern region in the aftermath of the coup is both timely and necessary, even if it arrives decades later.
“The mislabeling of the January 1966 coup has unleashed disastrous repercussions upon the Igbo people, most tragically culminating in the July 1966 counter-coup, which decimated a military Head of State of Igbo descent.
“The staggering loss of life, with approximately three million Igbos—predominantly innocent women and children—slaughtered during this conflict, continues to reverberate through our collective consciousness.
“Furthermore, even in the post-Biafra era, the Igbo Nation continues to grapple with systemic injustices, evidenced by acute marginalisation that leaves us with the smallest representation of states within the Nigerian federation.
“The political conspiracies designed to deny the Igbo the rights to ascend to the highest office in the land—Nigeria’s Presidency—the chronic economic neglect symbolised by the closure of the Calabar seaport, the inoperative state of several ports in Igbo land, the implementation of a discriminatory quota system, and the conspicuous absence of functional international airports in the Southeast starkly illustrate the Federal Government’s long-standing policy of exclusion.
“In light of these egregious injustices and the deliberate neglect exhibited by successive administrations, Ohanaeze Ndigbo hereby restates its demands, as articulated previously during the Justice Oputa-led Judicial Commission for the Investigation of Human Rights Violations Panel in 1999.
“We assert that the Nigerian Federal Government, under General Yakubu Gowon, conducted indiscriminate and unjustified bombardments in Igbo territory during the Nigeria-Biafra War, resulting in overwhelming loss of life. These historical realities establish an irrefutable case for the reparations we seek.
“The present Federal Government, led by President Bola Ahmed Tinubu, must recognise this moment as an opportunity to extend a public and unequivocal apology on behalf of previous military regimes. Our demand for ten trillion naira in reparations remains steadfast.
“This figure is not arbitrary but a symbolic recognition of the indelible losses the Igbo people have endured. The time has come for true acknowledgement of these historical wrongs, which can only be rectified through both reparations and sincere apologies.”
Source: LIB
The Independent Corrupt Practices and Other Related Offences Commission, ICPC, has discovered N1.37 billion allegedly diverted from funds allocated for Kaduna State’s now-abandoned light rail project.
The money, it was learned, was siphoned into a private account during the administration of former Governor Nasir El-Rufai, who led the state from 2015 to 2023.
The ICPC detailed its findings in an application filed at the Federal High Court in Abuja, seeking the forfeiture of the funds. The commission argued that the alleged diversion deprived Kaduna residents of a vital rail transport system.
According to the ICPC, the fraud stemmed from a purported joint venture agreement signed in October 2016 between the El-Rufai-led administration and Indo Kaduna Mrts JV Nigeria Limited. Payments to the entity began in December 2016, even though the company was not officially incorporated until May 10, 2017.
Between December 2016 and January 2017, the El-Rufai administration approved the payment of N11.1 billion to Mrts JV Nigeria’s account with Sterling Bank. Out of this amount, N1.37 billion was traced to a private account.
On February 14, 2024, the ICPC sought an interim forfeiture order and requested that notices be published in national newspapers, inviting any claimants to show cause why the funds should not be permanently forfeited.
The investigation began after the ICPC received a petition in June 2024 from a lawyer, M. Yahaya, alleging financial misappropriation by officials of the El-Rufai administration. The commission’s probe found that the Kaduna State Government had transferred N11.1 billion in multiple tranches to the joint venture’s account before it was officially registered.
Payments included N890.3 million from the state treasury on December 23, 2016, N2.3 billion on January 10, 2017, and two more tranches of N3 billion and N4.9 billion on January 17, 2017.
On the same day that the final payments were made, Skipper Nigeria Limited, linked to the joint venture, directed Sterling Bank to place the funds in a fixed deposit account. By July 2019, Indo Kaduna Mrts JV Nigeria Limited refunded N10 billion to the Kaduna State Government, leaving a balance of N1.046 billion.
The fixed deposit had also accrued N326.8 million in interest, both of which were allegedly diverted to accounts belonging to GTA Engineering Nigeria Limited, a subsidiary of Skipper Nigeria Limited.
The ICPC claims that the N1.046 billion was labeled as payment for feasibility study, but no such study was conducted. The commission has since recovered both the diverted sum and the accrued interest, totaling N1.37 billion, and is now seeking a court order for its forfeiture.
Former appointees of El-Rufai have denied any wrongdoing, calling the ICPC’s move an abuse of power. They argue that the project was part of a Build, Own, Operate, and Transfer agreement requiring Kaduna State to contribute 15 percent equity, with the rest funded by an Indian loan.
However, the project stalled due to the federal government’s failure to provide a sovereign guarantee. The former officials insist that the joint venture was legally established and challenge critics to present evidence of misconduct.
