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Tag: Debt

  • How Nigeria’s public debt stock rose to N87 trillion

    How Nigeria’s public debt stock rose to N87 trillion

    Nigeria’s total public debt stock hit N87.91 trillion (114.35 billion dollars) as of Sept. 30, according to a statement by the Debt Management Office (DMO) on Wednesday in Abuja.

    The DMO said that the amount represented the domestic and external debts of the Federal Government, the 36 state governments and the Federal Capital Territory (FCT).

    The N87.91 trillion total debt stock represents a marginal increase of 0.61 per cent, when compared to the June figure of N87.38 trillion.

    The debt office said this trend was explained by the decrease in external debt from 43.16 billion dollars as at June 30 to 41.59 billion dollars as at Sept. 30.

    It said that there was also a relatively moderate increase of N1.80 trillion in the domestic debt.

    “External debt decreased due to a redemption of 500 million dollars Eurobond.

    “It also decreased due the payment of 413.959 million dollars as first principal repayment of the N3.4 billion dollars loan obtained from the International Monetary Fund (IMF) in 2020, during Covid-19,” the DMO said.

    According to DMO, the servicing of all the debts is a clear demonstration of the federal government’s commitment to honouring its debt obligations.

    It, however, said that President Bola Tinubu’s revenue generation initiatives remained important to Nigeria’s overall fiscal balance.

  • Man commits suicide after losing 2.5 million naira debt

    Man commits suicide after losing 2.5 million naira debt

    A man identified as Onoh Chukwuka Richard has reportedly committed  suicide in Abia state after realizing that he failed to win a 2.5 million naira bet which he played over the weekend.

    It was gathered that he took snipper and was later rushed to a hospital where a doctor on duty confirmed him dead.

    Richard, before his unfortunate death, was very popular in Abia State and beyond owing to his refreshing social media posts.

    It was learned further that  victim, who hailed from one of the clans of Arochukwu Local Government Area, had before his death, made a post on his social media page, declaring that “Today is my last day on earth. Going to meet my maker”, while thanking some of his popular friends.
    He had also informed his friends on facebook that he used 2.5 million naira to place a bet, adding that he borrowed 1.2 million of the lost money from someone, lamenting that he would find it hard to repay the debt.
    He went ahead to lament on Facebook that unemployment had turned him into a gambler.

    He informed a friend he was chatting up, that he (Richard) may be dead by the time the reader would be seeing the chat.

    The suicide victim further said that taking his own life was the only way to escape the shame of facing his debtor.

    But his death has sent a shock wave to the followers and friends of the young man, with most of them saying that he took a wrong decision in killing himself.

    As of the time of this report, it was not confirmed if the family has issued any official statement or reported the matter to the police for investigation.

    The spokesman of Abia State Police Command, ASP Maureen Chinaka was yet to reply to a message sent to her on the matter.

  • Nigeria’s debt moved from N46trn in December 2022 to N87trn in June 2023 — DMO report

    Nigeria’s debt moved from N46trn in December 2022 to N87trn in June 2023 — DMO report

    The Debt Management Office has said that Nigeria’s debt moved from N46 trillion in December 2022 to N87 trillion as at June 30, 2023.

    The Director General of the DMO, Patience Oniha, disclosed the debt figures on Friday in Abuja.

    Oniha spoke during the interactive session held at the instance of the House Committee on Appropriations, chaired by Hon. Abubakar Bichi.

    She said: “Let me speak a bit about public debt as you requested in the letter inviting us.

    “The first point is that

    Home News Nigeria’s debt jumped from N46trn in December 2022 to N87trn in June…
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    Nigeria’s debt jumped from N46trn in December 2022 to N87trn in June 2023 — DMO
    By theconclaveng- December 9, 202309

     

    The Debt Management Office has said that Nigeria’s debt jumped from N46 trillion in December 2022 to N87 trillion as at June 30, 2023.

    The Director General of the DMO, Patience Oniha, disclosed the debt figures on Friday in Abuja.

    Oniha spoke during the interactive session held at the instance of the House Committee on Appropriations, chaired by Hon. Abubakar Bichi.

    She said: “Let me speak a bit about public debt as you requested in the letter inviting us.

    “The first point is that we have run a budget deficit for many years, for which the DMO has been raising funds locally and internationally to support the budget.

    “The point I would like to make is that as the level of borrowing increases, you have to service them, so debt services increase also.

    “Again, we run budget deficits because we have projects and programmes in the budget that the government wants to run.

    “If we go back from 2015 and 2016, we know we have been through about two or three recessions.

    “So, a lot of that bringing the economy out of recession was funded from borrowing.

    “The first one was through the Economic Recovery and Growth Plan and the last one was during COVID.

    “So, debt has increased and so has debt service.

    “We usually publish the debt data every quarter.

    “So, the most recent data we have in terms of debt stock is as of June 30th of 2023.

    “The figure for public debt is N87.37 trillion.

    “That is made up of external and domestic debt and it is for the Federal Government and the 36 States and FCT.

    “Let me quickly add that out of the N87 trillion, about 90 percent belongs to the Federal Government.

    “I believe because of the role the Federal Government plays, we account for the largest share.

    But we report everything because that is best practice.

    “If you compare that figure to last year’s December, it was N46 trillion.

    “So, it has grown sharply because we have borrowed.

    “You can say: In six months?

    “But also because we added the Ways and Means advances to that number.

    “It is public.

    “It was approved.

    “The DMO’s role is to manage that debt and make sure it is sustainable and that there is no default because borrowing is not a bad thing, but when you borrow, you use it well.

    “Debt has been growing largely from new borrowings.

    “You see the MTEF, for instance, that you have approved, it has borrowings in each of the years of N8.7 trillion, N10.2 trillion and N11.58 trillion, just to buttress the point that as you increase the funds, the debt stock grows.

    “So, it also growing because we have issued Promissory Notes and, again, like I said, Ways and Means advances.

    “We usually like to say that debt stock relative to our GDP is not the issue.

    “That has grown from 23 percent in March to about 40 percent in June.

    “The same way the debt stock grew.

    “But what we need to do is to focus on debt service revenue, which is very high.

    “That is why I said the discussions about revenue, we cannot stop talking about them enough.

    “So, apart from trying to generate as much revenue as we should, what else should we be doing?

    “We are advocates for a number of initiatives being taken.

    “Privatisation of those projects so they can be better managed.

    “You can attract capital.

    “Do the private-public partnership so not everything is on the budget.

    “Because when you put everything on the budget, you cannot get a deficit for which you need to borrow.

    “We should strongly support the Fiscal Reform and Tax Policy Committee.

    “We really need to get that working to change the story of us.

    “For this year 2023, the DMO was to provide about N8.8 trillion.

    “N7 trillion of that is domestic, meaning we borrow it here in naira.

    “And then there is N1.7 trillion that ordinarily in normal times, we would have issued Eurobonds or from other sources.

    “So, out of the domestic of N7 trillion as we speak, we have raised the full amount.

    So, you can say we have raised a significant amount to fund this budget.

    “If the international markets had been covered and we were investing in countries with similar ratings like Nigeria, by now we would also have issued a Euro bond.

    “We have been extremely supportive of funding the budget and the operations of government.”

    On funding of some of the proposed infrastructure projects, Oniha said the present administration is to ensure direct support with the SUKUK.

    She said: “This year, some of that N7 trillion we issued by way of SUKUK and you will soon begin to see the roads across the FCT.

    “Having spoken to what is in the 2023 budget, of which we have raised N7 trillion out of the N8.8 trillion, so we know that in 2024, from the MTEF, there is N8.749 trillion.

    “So, the levels of borrowing are still high, but I think as the MTEF is a rolling document, as the picture looks better on revenues, maybe the numbers would be lower.”

    Speaking earlier, Bichi said the interactive session with the heads of Ministries, Departments and Agencies was to address strategies for rising inflation, reduce the burden of Nigeria’s debt profile, sectoral budgetary allocations and dynamics of budget releases.

    The Chairman of the Appropriations Committee said: “Others are economic diversification strategies, revenue generation forecasts, and any useful information that will facilitate the enactment of the bill and effective implementation of the Appropriations Act, 2024.
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    “Amidst concerns to address the infrastructural gap in the country, eliminate poverty and generally achieve the 8-Point Renewed Hope Agenda, there is a need to ensure that all loose ends to revenue are tied, as this can have a gross impact on the government’s ability to implement the 2024 Appropriation Bill when passed.

    “While the revised MTEF and FSP showed that revenue-generating efforts by the present administration are already yielding fruit, more needs to be done to ensure that government-owned enterprises optimise their revenue-generating potential.

    “In light of the above, this interaction is designed to engage relevant stakeholders to provide insight on the perspective of the budget and enable the Committee to play its coordinating role in ensuring allocative efficiency in the 2024 appropriation process.”

  • New contributions from expatriates to mitigate debt burden, bolster infrastructure development

    New contributions from expatriates to mitigate debt burden, bolster infrastructure development

    The increased involvement of expatriates in the drive to grow the nation’s revenue is projected to mitigate the debt crisis that the nation is presently entangled in, according to feelers from reliable sources in the Presidency.

    Nigeria’s Debt Management Office (DMO) presently puts the nation’s debt burden at N87.38tn ($113.42bn), with the government hoping to spend 30 per cent of its 2024 budget on debt servicing.

    The commitment to debt servicing has led to a reduced allocation to critical sectors of the economy, including education, health, infrastructure, social development, and poverty reduction.

    The crisis has lately influenced the government’s renewed initiative to diversify its revenue base to include earnings from agriculture, steel, mining, and quarrying, away from the hitherto dominant income from oil and gas.

    While these are considered long-term plans, the government has reached an advanced stage in considering other soft, short-term measures, including the quest for portfolio investment and the inclusion of sections of the systems in its income-generating net.

    Featuring prominently in this fresh drive are expatriates who are said to have been contributing less than they should, going by the practices in other nations, including Japan, Singapore, Pakistan, Malaysia, Saudi Arabia, among others.

    Authoritative sources said at the weekend that with the projected $ 2 billion per annum additional earnings from the nearly 200,000 expatriates in the country, the nation should be able to mitigate the crisis from a huge debt burden, in addition to meeting its infrastructure development needs.

    According to the source, “What the government is presently trying to do is to be innovative in financing. In infrastructure, for instance, creativity is needed to address the financing shortfall for infrastructure, which is estimated as requiring about $3 trillion over the next 30 years”

    The source stressed that to close its current infrastructure gap and reach the desired total investment levels, Nigeria must aggressively increase infrastructure funding, subject to more ingenious ways of raising funds.

    “The investments over the next 30 years are in total $2.9 trillion. Spending would need to ramp up fairly quickly, from the current 3-5% of GDP to an average of 9% over the 30-year period. Given Nigeria’s high GDP growth projected for the period, such a ramp-up is particularly challenging.”

    The source noted that the planned new contributions from expatriates will also help shore up the nation’s percentile earnings from non-oil export, presently at 16-17%, compared to, for instance, G20 countries where it is about 60 to 100%.

    Other reasons for the maturing plan are that the greater contribution from expatriates will improve private sector profitability, increase labour profitability, positively impact unemployment and underemployment, enhance non-oil revenue generation and then provide a level playing field for Nigerian citizens.

    The source added: “With the greatest respect, expatriates working in Nigeria get undue advantage by making their income free from any obligation in their home countries (like India, Pakistan, and the UK with few exceptions like the USA where global income is monitored).

    “The argument is when a person earns a living in Nigeria, the Federal Government is entitled to get some dues, which is different from the contributions that they are expected to pay in the states they work in, just like citizens do.”

  • Finance Minister says Nigeria’s debt sustainable

    Finance Minister says Nigeria’s debt sustainable

    The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the country’s debt situation is sustainable and does not require restructuring.

    Edun said this on Saturday in Marrakech, on the sidelines of the ongoing World Bank/International Monetary Fund (IMF) Annual Meetings.

    TheNewsGuru.com (TNG) reports that Nigeria’s public debt stock as at December 31, 2022 stood at N46.25 trillion, equivalent to 103.11 billion dollars.

    According to Debt Management Office (DMO), the public debt stock of the country consists of the domestic and external debts of the Federal Government of Nigeria (FGN) and the sub-national governments.

    The DMO is the Federal Government agency established to coordinate the management of national debts.

    Edun, who however, agreed that the country’s debt service revenue was on the high side, said that the response to that was to improve both oil and non-oil revenue.

    “Also, we have spent time meeting oil producers and encouraging them to invest further in production, so as to boost revenue as oil prices are relatively high.

    “President Bola Tinubu has also inaugurated a fiscal policy and tax reforms committee that is already working on improving revenue generation.

    “The committee has a target of moving the country from under 10 per cent tax-to-GDP to 18 per cent within a year. That is also a way of dealing with debt servicing,” he said.

    According to the minister, the more revenue you have the more affordable debt servicing will be.

    “The world we are in now is a world of high interest rates. Debt is becoming unaffordable, ” he said.

    He said that with the courageous steps that the Nigerian government under Tinubu had taken, the country was at the forefront of attracting Foreign Direct Investment (FDI) that would further boost revenue generation.

    “There is more to be done, but Nigeria is on the right path, taking the right decisions for the economy to recover and attract FDIs,  and also achieve inclusivity of women and youths.

    “These are painful reforms, but there is a set of interventions being rolled out to cushion their effects and improve the well-being of Nigerians,” Edun said.

  • Benue in N359bn debt – Gov. Alia

    Benue in N359bn debt – Gov. Alia

    Gov. Hyacinth Alia of Benue on Sunday disclosed that his administration inherited the sum of N359 billion as debt from the past administration in the state.

    Alia disclosed this at an interdenominational church service to commemorate Nigeria’s 63rd independence anniversary.

    The church service was organised by the Christian Association of Nigeria (CAN), Benue State Chapter, at the Methodist Cathedral, South Bank, Makurdi.

    The governor,  who is a Catholic priest, said  that in spite of the debt burden, he was determined to reposition the state by providing an enabling environment for businesses to thrive.

    “God has accomplished his work,  and it is now left for us to make our state and nation to work. I am here to make things work.

    “What we inherited was nothing to be proud of, but we will do what will make us all proud. I inherited over N359bn debt,” he said.

    He regretted that the state lost billions of Naira worth of agricultural produce and other property to herders’ attacks on farmers.

    He said that the farmers must be supported to do their job well.

    Alia said that the condition of rural dwellers following incessant herders’ attacks and fuel subsidy removal had become worrisome.

    He said that his administration would find ways to support farmers by providing seedlings, fertilisers and other forms of support to enable them to work effectively in the coming farming season.

    “My colleagues call me the governor of the richest state in Nigeria and I agree with them because we have numerous mineral deposits, we have the best yams and soyabeans, among others.

    “We will create billionaires in the state through our farms. We have everything it takes to do it.”

    Alia  ordered  immediate end to illegal mining in the state.

    “The foreigners illegally mining gold in Kwande, Logo, Konshisha LGAs and other places in the state should desist from it immediately. This is an order,” he said.

    He said that God blessed the state and the entire Nigeria abundantly and it was left for the leaders to make things to work.

    He decried the spate of kidnapping and other criminal activities in the state, pledging to tackle them.

    The governor said that the future of the state lied in the hands of the youth, adding that his administration was  training 10,000 youths in information technology for improved digital knowledge.

    Alia gave the assurance that his administration would not accommodate corruption and  nepotism.

    The governor appealed to Benue sons and daughters to support the state in any way they could.

  • Russia writes off $23bn debt for Africa – Putin

    Russia writes off $23bn debt for Africa – Putin

    Vladimir Putin, Russian President, says the Russian Government has written off $23 billion debt burden of African countries.

    Putin spoke at the plenary session of the ongoing second Russia–Africa Summit 2023 holding from July 27 to July 28.

    He said Moscow would allocate an additional $90 million for these purposes.

    Putin said Russia was advocating expansion of representation of African countries in the UN Security Council and other UN structures.

    “Russia and Africa strive to develop cooperation in all areas and strengthen ‘honest, open, constructive’ partnership.

    “Russia will also assist in opening new African embassies and consulates in Russia,” he said.

    According to him, the reopening of embassies in Burkina Faso and Equatorial Guinea is going as planned.

    He said sovereignty was “not a one-time achieved state,” and it must be constantly protected.

    Putin also offered assistance to Africa in countering threats such as terrorism, piracy, and transnational crimes adding that it would continue to train personnel from African countries.

    He assured that Russian businesses have a lot to offer partners from Africa.

    Putin said transition to national currencies and the establishment of transport and logistics chains would contribute to the increase in mutual trade turnover.

    “Russia is ready to provide trade preferences to Africa, support the creation of modern production sectors, agricultural sector, and provide assistance through relevant international structures and agencies.

    “Russia will always be a responsible international supplier of agricultural products,” he said.

  • How Gombe State Govt spent N33bn on debt servicing in 4 years

    How Gombe State Govt spent N33bn on debt servicing in 4 years

    The Gombe State Government has paid about N33 billion from the N100 billion debt inherited from the administration of former governor Ibrahim Dankwambo.

    The Chairman of the Gombe State Transition Management Committee, Dr Ibrahim Daudu, made this known while submitting the 2023 transition report to Gov. Inuwa Yahaya on Monday.

    Daudu said that Gov. Yahaya also paid N6 billion to settle four years backlog of gratuities owed retirees from 2014 to 2017.

    According to him, the payment to retirees is the largest payment of gratuity made by any government in Gombe State.

    “During the course of our work, we were able to determine that out of over N100 billion in debt inherited from the previous administration, your administration has paid approximately N33 billion,” he said.

    The chairman also stated that the state government within the period was able to attract N26 billion as a result of its prudent public financial management through the implementation of the State Fiscal Transparency, Accountability and Sustainability programme.

    He said that in view of the state’s prudent resource management, Gombe State ranked fourth most successful state in public financial management in the country.

    While commending Yahaya for effectively managing the finances of the state in spite of the huge economic challenges caused by COVID-19 and economic recession, the Daudu-led committee urged the government to boost the state’s internally generated revenue going forward.

    The 11-member committee which was inaugurated on  May 26 further advised the state government to within the next four years, reform the civil service while prioritising job creation.

    The major responsibilities assigned to the committee was to develop a blueprint for consolidating on the achievements made during Yahaya’s first administration.

    Also, to incorporate lessons learned, identify priorities, policies, and programmes for the new administration.

  • Gov Mutfwang reveals huge debt burden inherited from Simon Lalong

    Gov Mutfwang reveals huge debt burden inherited from Simon Lalong

    Gov. Caleb Mutfwang of Plateau says his administration inherited a debt burden of N307 billion from the immediate past administration in the State.

    The Governor disclosed this shortly after receiving the reports of the committees on Transition and   Strategic Development Framework for Plateau, on Monday in Jos.

    The two committees were headed by Prof. Ganyir Lombin.

    The Governor expressed his determination  to take the state to greater heights, in spite of its huge debt profile.

    Mutfwang particularly expressed his readiness to tackle the current security challenges in the state.

    “Throughout the campaign season, we were under the mistaken belief that our debt burden was around N200 billion; to hear that it is  N307 billion is quite intimidating and worrisome.

    “But, by the special grace of God, these challenges we are confronted with are surmountable.

    “Of particular concern is the issue of insecurity which, unfortunately, has become a major distraction for us.

    ”But we are confident that with the new security chiefs on the ground and the Special Adviser on Security assuming responsibility, we will see a difference not too long from now,’’ Mutfwang said.

    The governor promised to meticulously study the document presented to him, adding that further investigation would be conducted and appropriate action would be taken as well.

    Earlier, Lombin explained that some operational challenges prevented the two committees, which had appointees of the past administration as members, from jointly presenting their report.

    He said that the  handover notes presented to the governor on May 29 was not in consonance with the agreed template developed by the joint committee.

    He said in the note, the revenue, which accrued to the State Government from May 2015 to May 2023, stood at N872 billion, adding that the report only gave the total expenditure from May 2015 to December 2022 and excluded that of January to May, 2023.

    “There is no clear figure for the state’s monthly wage bill, however, this administration has inherited a backlog of four months unpaid salaries to public servants amounting to over N11 billion.

    ”Outstanding gratuity and pension arrears of N24 billion was also inherited.

    “The Legacy  Projects are marred in controversies and unresolved legal cases which have stalled their completion.

    ”Currently, the sum of N12 billion for these projects is still in the custody of the Trustees of the funds,” he said.

    The chairman called for more investigations on the 3,692 government’s assets and properties  allegedly sold and auctioned within and outside the state.

    ”It is a thing of deep concern  that this  government inherited a near-bankrupt state, with weak institutions, low public morale, and a high level of insecurity, but with high expectations from the people,”he said.

    Presenting a Four-Year Strategic Development Blueprint for Plateau, Lombin  expressed confidence on Mutfwang’s determination to improve the welfare and wellbeing of the people.

  • Benue Gov, Rev Fr Alia weeps over debt Ortom left behind

    Benue Gov, Rev Fr Alia weeps over debt Ortom left behind

    Benue State Governor, Rev. Father Hyacinth Alia has stated that he inherited an empty treasury and a whooping debt profile of N187.56 billion accompanied by accumulated months of unpaid salaries and entitlements of civil servants and pensioners in the State.

    Governor Alia also lamented an alleged massive looting of the Government House in Makurdi by the immediate past administration of Samuel Ortom, noting that he was left with no single official car.

    “The same party that left an empty treasury in the state and ripped off the economic system of the people is now claiming to be standing on high moral grounds to offer untenable and ill-motivated criticisms to undermine the collective wisdom of the Benue populace,” a statement quoting Alia reads.

    Governor Alia in the statement released by his Chief Press Secretary, Mr. Tersoo Kula, was responding to calls by the Peoples Democratic Party (PDP) in the State that he should reverse his decision that led to the nullification of all last-minute appointments made by his predecessor.

    “The PDP looted Government House to a point that the new government under governor Hyacinth Alia, met no single car or truck in government house. The governor’s visits to agencies and parastatals have uncovered the highest level of rot ever witnessed in the history of Benue State,” the statement reads.

    Alia regretted that Ortom left the government owing salary arrears of civil servants, arguing that the PDP should apologise to the people of the state.

    “The PDP is not ignorant of the fact that all the appointments and recruitments that were carried out by former governor Samuel Ortom at the twilight of his administration were not done in good faith.

    “Is it not curious that for more than seven years, Ortom could not employ indigents of the state into the civil service, until a few months before the expiration of his tenure?

    “It is even more ironic that the PDP, which is now a crying wolf, left the government house owing salaries of Benue Civil Servants from December 2022 to May 2023. The same PDP administration left salary arrears of five months for state government workers in 2017; 10 months for local government workers in the same year, 2017. Under this same PDP government, pensions were last paid in the year 2021,” the statement reads.

    However, the media aide to former Governor Samuel Ortom of Benue State, Terver Akase, has reacted to the allegation by Governor Hyacinth Alia that there was massive looting of the government house in Makurdi under the previous administration.

    Akase said Ortom is no longer the Governor, and so should not be speaking about issues of governance in the State.

    ”Well, I don’t work in a government house. I don’t know about that. What I do know is that the Benue State Government executive council, before Governor Ortom left office, made a resolution that government officials of the Ortom administration should leave with their vehicles. So, if the Governor had a car, that is, the former Governor and Exco made a resolution that he should go with his vehicle, that’s a different thing; that is Exco’s decision.

    “I don’t know about all the other things because I haven’t been to the government house since we left. I don’t know the veracity of those things you are saying. All I know is that Exco made a resolution that government officials who worked under the Ortom administration should go with their vehicles. Yes, so if the Governor was using a vehicle at that time and Exco said he should go with it, there is nothing wrong with that; it’s not criminal. It is legal because this is the decision of the Benue State Government.

    ”I am not the spokesperson for PDP. I only speak for the former Governor. And the former Governor’s reaction is that he is no longer the Governor. Our people say that when you don’t have clues on the close line, you no longer put your hands there. He is no longer the Governor, so he can’t be speaking about issues of governance in Benue State. Governor Ortom prays for the current Governor and wishes him well”.