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
Call it the eating of a humble pie, and you may not be wring as the embattled Deputy Governor of Edo State, Philip Shaibu, apologised to Governor Godwin Obaseki amid a face-off between them.
Speaking to reporters on Thursday in Benin City, Mr Shaibu appealed to Governor Obaseki to forgive his “mistakes” for them to continue to work together, Channels TV reported.
“I use this medium to appeal to Mr Governor, if there is anything that I don’t know that I have done, please forgive me so that we can develop our state together,” he said.
“We have just one year to go. We have been the envy of the entire country. So, Mr Governor, if there is anything you feel that I have done, please I am sorry. I need us to work together to finish well and strong,” the deputy governor added.
When asked if he had resumed at his new office, Mr Shaibu said, “We have resumed but there is still a lot of work to be done there.
“There is no problem about it. The governor has asked us to go there. Like I have always tried to prove, I am a loyal servant and nothing has changed.
“I took a personal vow to support my governor and you can see my Catholic people are here. When I took a vow with God, nothing can change it and I wish that the relationship that we had will come back in the next few days and weeks.”
Mr Shaibu also said he has been missing the governor since their rift began, and expressed hope that God will “touch the governor’s heart” to forgive him.
“I mean well. If there is any mistake I have made as a human, it is not out of wickedness because I know I’m not wicked. I have a very clean heart.”
The Federal Capital Territory FCT Minister, Nyesom Wike, has announced the revocation of 167 plots of land in some highbrow districts of the nation’s capital, Abuja.
Areas affected are Maitama, Gudu, Wuye which had the highest revocation, 41; Katampe, Katampe Extension, Wuse 2, Jabi, Utako, Idu Industrial zone, and Asokoro which had the second highest revocation, 39.
In a notice issued Thursday night in Abuja, the administration said the plots were revoked due to the refusal or failure of their allottees to develop them.
“The Federal Capital Territory Administration FCTA hereby informs the general public that the Minister of the Federal Capital Territory has, in the exercise of the powers conferred on him under Section 28(5)(a) & (b) of the Land Use Act 1978, revoked the underlisted plots with names and titles as reflected in our records for continued contravention of the terms of development of the Right of Occupancy to wit non-development”, the administration said in the notice signed by the Permanent Secretary, Mr Olusade Adesola.
Some of the plots revoked in Maitama district A05 had names like Liyel Imoke, Musa Aboki Egu, Hassan Hadejia and Ishaya Baba.
In Jabi, some of the plots revoked had allottees such as Sam Nda-Isaiah, and Donubari Josephine Kogbara, while Katampe district had Peter Gregory Obi, BUA international among others.
In other areas, this revoked had names as Julius Berger Nigeria, Honeywell Construction, Uffot Joseph Ekaette, Shittu Mohammed, Udoma Udo Udoma, Kanu Agabi, Niki Niki Tobi, Ishaku Bello, and others.
Wike had on assumption of office vowed to restore the master plan of the territory and revoke plots that had not been developed or those whose ground rents have not been paid for years.
He had consequently given a two-week grace to allottees to pay their ground rents or risk revocation of their allocations.
Vanguard
President Bola Tinubu has appealed against the ruling of Judge Jeffrey T. Gilbert, sitting at the United States’ District Court of Northern Illinois which ordered the Chicago State University (CSU) to release all relevant records pertaining to him.
SaharaReporters had reported how the federal court in Chicago, while ruling on the civil case filed by Atiku Abubakar, on Tuesday granted the applicant’s request to the court, stating that former Nigeria’s vice-president had been able to sufficiently satisfy the purpose for seeking the records.
In the judgement documents seen by SaharaReporters on Wednesday, Judge Jeffrey Gilbert also ordered a deposition of designated CSU officials within two days after the records have been released, noting further that the process can be conducted during the weekend if necessary.
However, as the school prepared to surrender the papers, Tinubu filed an emergency motion in the district, requesting a higher judge to reconsider Mr Gilbert’s September 19 ruling and postpone the execution until at least September 25, according to People’s Gazette.
“Due to the timing for compliance by Chicago State University – later today – Intervenor is filing this motion separately from its challenge to the Magistrate’s ruling on the application,” Mr Tinubu’s lawyers, led by Christopher Carmichael, said. “Intervenor intends to file, by the end of the day, a substantive brief addressing the errors in the Magistrate’s decision.”
