Headlines
Nigeria’s debt profile hits N41.6tr
The Director-General of the Debt Management Office (DMO), Patience Oniha has confirmed that Nigeria’s debt profile as of March 2022 stood at N41.60 trillion.
Oniha, during her appearance at the ongoing engagement on the 2023 – 2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) held by the House of Representatives Committee on Finance, attributed Nigeria’s high debt profile to a lack of revenues and approval of the yearly budget with a deficit by the National Assembly, which increased the debt stock.
She regretted that the country has been running a deficit budget for many years with an increased level of borrowing, especially since the outbreak of the Covid-19 pandemic, stressing that the only way out of the problem is improved revenue generation.
Oniha said: “As of December 2020, the debt stock of the federal, state governments and the Federal Capital Territory was N32.92 trillion. By December 2021, it jumped to N39.556 trillion. We publish quarterly, and as of March of this year, it was N41.6 trillion. On average, Federal Government is owing about 85 per cent of the total sum.
“We have been running a deficit budget for many years and each time you approve a budget with a deficit, by the time we raise that money because when you approve it, it is giving us a mandate, authority to borrow, it will reflect in the debt stock, so debt stock will increase. Also, note that states are also borrowing. So, we add their own.
“Until the issues of personnel, overhead and capital expenditure are properly addressed in the budget, borrowing would not stop.”
Recall that the Minister of Finance, Budget and National Planning, Zainab Ahmed, had laid before the lawmakers on Tuesday, the 2023-2025 MTEF/FSP, where she disclosed that the Federal Government will borrow over N11 trillion and sell national assets to finance the 2023 budget deficit.
Last year’s total deficit (fiscal and project-tied loans) stood at N7.35 trillion. The figure, in the best scenario) is expected to jump by 53.7 per cent to N11.3 trillion next year. Under subsidy removal conditions, it will hit N12.4 trillion.
Continuing, Oniha said: “A World Bank report showed that in terms of debt to GDP ratio, Nigeria is low but for debt service to revenue ratio, we are very high. So, if you look at the tax to GDP ratio of these other countries, they are multiple of Nigeria.
“The World Bank survey report of about 197 countries revealed that Nigeria is number 195, meaning we beat only two countries and that is Yemen and Afghanistan. I don’t think we want to be like those places.
“You must look at revenues very closely for funding our activities as opposed to the deficit. We talk about the N11 trillion deficit and borrowing for 2023, how much is the revenue there? That’s one. When we look at the first tranche which was N10 trillion for a full year of subsidy and N9 trillion for subsidy next year, the size of the borrowing was 62 per cent of the budget. That’s high. The responsibilities, I think, are on both sides. Query the various expenditure lines and see what it is we can handle. So, if the deficit is lower, the borrowing will be lower and that’s how to grow on a slower pace.”
Agriculture
Borno establishes Ministry of Livestock, Fishery Development
The Borno Government has announced the creation of Ministry of Livestock and Fishery Development to align its
Development strategy with Federal Government initiatives, and boost the state’s economic potential.
Gov. Babagana Zulum made the announcement on Tuesday during the swearing in of two commissioners at the council chambers of the Government House.
Zulum underscored the importance of livestock and fisheries as vital sectors with untapped revenue potential.
He emphasised that the new ministry would focus on high-yield livestock breeds, milk production and fisheries, targeting both domestic consumption and export opportunities.
The governor said that “no state government can make substantial money in livestock alone, but we believe with the right investment and political will, the sector can generate significant revenue.”
He said that the growing demand for milk by yogurt companies and the proximity of Maiduguri to Asian and Arab markets, are great opportunities for dairy exportation.
The governor, therefore, assigned the Deputy Governor, Dr Umar Kadafur, to oversee the activities of the new ministry, citing his practical experience and passion for livestock development.
He said “livestock development is not just about academic qualifications, it is about practice and the deputy governor has demonstrated capability in that regard.”
According to him, the ministry will prioritise procuring high-yielding livestock varieties, enhancing milk production and creating sustainable rural projects to support
Local communities.
He said that projects in Mafa, Gajiram and in Southern Borno will soon be launched under the new ministry’s purview.
The governor urged civil servants and ministry personnel to take ownership of the new initiative, adding that the ministry’s success would contribute to the states
Long-term economic stability and self-reliance.
Headlines
British High Commissioner seeks military, civilian efforts in tackling insecurity
The British High Commissioner to Nigeria, Mr Richard Montgomery, has called for the combination of military and civilian efforts in tackling the complexity of security challenges in Nigeria and globally.
Montgomery made the call at a two-day Security and Justice Symposium organised by the Office of the National Security Adviser (ONSA) in Collaboration with the British High Commission, on Tuesday in Abuja.
He commended the efforts of the Nigerian military in promoting civil-military collaboration and adoption of kinetic and non-kinetic action in addressing the menace of terrorism and insurgency in the country.
“At the heart of all this is recognition of the importance of upholding the rule of law, human rights, humanitarian law and international humanitarian law.
“We need to consider the different legal principles and frameworks that apply to criminal violence or to violent conflicts and how we deal with them in protracted conflict zones.
“We had a legal frameworks roundtable with the Nigerian military officers earlier this year, and a really good debate about how we adapt to different situations.
“I am hoping today we will help progress that dialogue on which Nigerian legal frameworks are appropriate in which circumstances,’’ he said.
Montgomery highlighted the positive and open relationship between the UK and Nigeria, noting that both countries were learning from each other’s experiences in tackling security challenges.
He expressed his appreciation for the opportunity to continue this productive dialogue and hoped that the symposium would result in actionable insights and further strengthen the partnership.
Headlines
Zulum swears in 2 new commissioners
Gov. Babagana Zulum of Borno on Tuesday presided over the swearing-in of two new commissioners to replace those who died while in active service.
The State Chief Judge, Justice Kashim Zannah, administered the oath of office at the ceremony held at the Government House in Maiduguri.
The new commissioners are Muhammad Lawan-Dalorima for the Ministry of Finance and Isa Haladu for the Ministry of Reconstruction, Resettlement and Rehabilitation (RRR).
In his speech, Zulum expressed gratitude to the Borno House of Assembly for their prompt scrutiny and confirmation of the nominees.
He urged the commissioners to uphold the principles of integrity, transparency, and accountability in their new roles, while emphasising the administration’s strategy of periodically rotating commissioners to different ministries to promote fresh ideas and effective governance.
“You have been chosen for your exceptional qualities and expertise. I have no doubt you will make valuable contributions to our administration,” he said.
The governor also paid tribute to the late commissioners who previously held the portfolios, reflecting on their contributions to the development of the state.
Responding on behalf of the commissioners, Haladu thanked the governor for finding them worthy of the appointment, and promised him of diligent service delivery.
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