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 National Chairman of All Progressives Congress (APC), Abdullahi Ganduje, has argued that there is nothing wrong if Nigeria evolves into a one-party state, provided it reflects the will of the people.
Speaking to State House correspondents on Friday after a meeting with President Bola Tinubu at the Presidential Villa in Abuja, Ganduje dismissed concerns raised by opposition leaders over the country’s political direction.
He insisted that the growing dominance of the APC is a reflection of public trust in the party’s governance.
“If one-party state is a wish and blessing to Nigeria; One-party state is not by force; it is by negotiation,” Ganduje said.
“If other political parties see the effect of the positive governance of our party and decide to come to our party willingly, I think there is nothing wrong with that.”
Citing China as an example of a successful one-party system, Ganduje stated that the APC is not actively working to eliminate opposition, but that defections and realignments are part of democratic processes.
“Too many political parties spoil governance,” he added.
Ganduje led three senators from the opposition Peoples Democratic Party (PDP), reportedly from Kebbi State, to meet with President Tinubu, announcing their intention to join the APC.
According to him, their defection is the result of extensive negotiations among stakeholders in the state and is part of APC’s broader strategy to strengthen its base.
“This is a good development and in consonance with what is happening in Nigeria today. Almost every week in the Senate and House of Representatives, you see members of other political parties decamping to our party,” he said.
Ganduje assured that the APC is prepared to smoothly integrate the new members, maintaining that the party’s strategy to expand both its numbers and the quality of its membership is aligned with democratic principles.
The Senator representing Kogi Central in the National Assembly, Natasha Akpoti-Uduaghan, has distanced herself from a viral TikTok video that surfaced online showing her dancing to “Omo Ologo”, a song in praise of President Bola Tinubu.
In a public disclaimer released via her verified X (formerly Twitter) account, Akpoti-Uduaghan denied owning any TikTok account, warning the public against being misled by parody accounts across various social media platforms.
“I do not own a TikTok account,” she posted.
“Many parody accounts exist in my name on X (Twitter), Instagram, Facebook and TikTok. Some have garnered large followings.”
She clarified that the circulating video was manipulated from an old 2023 clip and repurposed with “mischievous intent” to mislead the public.
“While I hold the President in utmost respect, I’d urge everyone to disregard the mischievous post made using an old 2023 video of mine,” she stated.
The video, sound-tracked by “Omo Ologo”, a praise song performed by Dauda Kahutu Rarara at a recent event attended by Tinubu in Katsina, appeared to depict the senator aligning herself with the president’s camp.
President Bola Tinubu has issued a passionate call for unity, resilience, and renewed patriotism, urging Nigerians to stand firm behind ongoing reforms aimed at rebuilding the country’s economic foundation.
Speaking during a grand reception in Awka, Anambra State, on the occasion of his state visit, President Tinubu acknowledged the current challenges facing the nation but assured the people that the hard choices were necessary for lasting prosperity.
“We continue to plead with Nigerians for their patience and understanding,” Tinubu appealed.
“We call on all patriots and progressives to rise and continue to work hard every day for the greatness of our dear country. We have no other country but Nigeria. We must make it great as the pride of the black race.”
He reaffirmed his administration’s commitment to inclusive development, citing progress made in economic reform, infrastructure investment, and improved public finance management.
“We met near-insolvent public finance… unsustainable multiple subsidies… a chaotic and debilitating forex regime. These monsters have been tackled,” he said.
Highlighting renewed investor confidence and growth in agriculture, manufacturing, and technology, Tinubu said the “Renewed Hope Agenda” was already yielding visible results.
He particularly commended Anambra for leading in innovation and development, referencing the commissioning of the Solution Fun City and Government House Mini-City as signs of progress.
Describing Governor Chukwuma Soludo as “a brilliant man” and “a thinker who knows the way,” Tinubu added: “We are working together for a better Anambra and Nigeria.”
The president also praised Anambra State for fully implementing and even surpassing the new national minimum wage, calling it “a signal of true leadership and compassion for the working class.”
Asserting the federal government’s commitment to equitable development, Tinubu promised increased investment in roads, power, rail, and digital infrastructure across all regions, including the Southeast.
