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Tag: Debt

  • Airlines decry FG’s ‘criminalisation’ tag over alleged N19bn debt

    Airlines decry FG’s ‘criminalisation’ tag over alleged N19bn debt

    The Airline Operators of Nigeria (AON) have decried the alleged ‘criminalisation’ of all domestic airlines over the outstanding N19 billion debt it was alleged to owe some Federal Government’s aviation agencies.

    The Vice-President (V-P) of AON, Mr Allen Onyema, said this in a statement issued in Lagos on Wednesday.

    According to Onyema, who is also the Chairman of Air Peace Airline, owing of debts does not amount to fraud.

    He said that it was pertinent to clear the air that some of these debts were owed by some airlines that had since become moribund.

    “Our attention has been drawn to the news making the rounds that the Director -General (D-G) of the Nigeria Civil Aviation Authority (NCAA), Capt. Musa Nuhu, is accusing airlines of defrauding government’s aviation agencies.

    “The agencies he mentioned as being defrauded are: the Federal Airports Authority of Nigeria (FAAN), the Nigerian Civil Aviation Agency (NCAA) and the Nigerian Airspace Management Agency (NAMA) of over N19 billion while converting same to ‘personal use’.

    “The Airline Operators of Nigeria (AON) wishes to express its very strong reservations to such accusations and we decry very strongly that our members are defrauding government’s agencies of the said amount or any amount for that matter.

    “Airline Operations, worldwide, are not cash-and carry-businesses. Every airline in the world owes debts which are settled as their operations go on. Nigeria is not an exception.

    “It is true that some of our members have very bad debts but not all our members owe such debts.

    “The owing of debts in itself does not amount to fraud. We frown very strongly at the ‘criminalization’ of all Nigerian airlines as a result of the said debts,” he said.

    Onyema said that the various parties were present at a stakeholders’ meeting and the D-G of NCAA did not at any time use such words to describe Nigerian airlines there.

    He, rather, said that the meeting ended with the understanding that everyone agreeed to work together to address the debt issue.

    Onyema, however, advised their members with such bad debts to engage the agencies and put forward repayment plans.

    The V-P said that the airlines in the country were operating under a very harsh environment and needed the support of the stakeholders to stay in business.

  • Abiodun Inherits N202billion Debt On Road Projects From Amosun

    Abiodun Inherits N202billion Debt On Road Projects From Amosun

    Ogun State Commissioner for Works, Engr. Ade Akinsanya, has disclosed that the present administration inherited a debt of N202 billion on road projects alone from the administration of Senator Ibikunle Amosun.

    Akinsanya who stated this in Abeokuta at the weekend, however, stated that Governor Dapo Abiodun has approved phased payment of the debt.

    According to Akinsanya, the governor has also approved payment of compensation to the owners of houses demolished for road projects across the state by Amosun’s administration.

    He said the governor approved the payment to alleviate the sufferings of the house owners, saying that the payment will also be in phases.

    Amosun embarked on the massive demolition of properties across the state in his desire to expand some roads to as much as 8-lane without paying compensation to the affected owners.

    However, the desire turned out to be a double jeopardy as many of the roads were abandoned midway while others did not take off at all.

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    Akinsanya while shedding more light on the development explained that the massive demolitions carried out by Amosun’s administration was unnecessary.

    He said that it ended up compounding the problems being faced by the present government.

    According to him, the state government now has billions of compensation claims to contend with in addition to looking for another huge sums of money to complete the abandoned roads projects.

    The commissioner said the state government has decided that no house will be demolished again for road project in any part of the state.

    He stated that house will only be demolished where necessary and unavoidable.

    Adesanya revealed that Amosun administration had earmarked some houses for demolition preparatory to the rehabilitation of Kemta-Somorin road in Abeokuta.

    “The project is nearing completion now without any demolition carried out.

    “Our road design and construction is such that we try to avoid demolition.

    “Our road design and construction is such that we try to avoid demolition.

    ”It is actually not necessary to demolish while constructing roads, unless it is actually unavoidable,” he said.

    The Commissioner also disclosed that most of the bridges constructed by Amosun were a waste of resources.

    “The same thing applies to bridge construction. Most of the bridges constructed by that regime were a waste of resources.

    “For instance, on the entire stretch of the 19- kilometre Atan-Lusada-Agbara road has only one bridge. And the length is short,” he said.

    Meanwhile, Governor Abiodun has been praised for approving payment of compensation to the owners of demolished houses.

    A resident of Agbado, who lost many shops to the demolition, Mr Abayomi Olanreway, commended Governor Abiodun for his magnanimity.

    He berated the last administration for subjecting people to unnecessary hardship, even as he regretted that the road had been abandoned for more than six years now that the demolition took place.

    Olanrewaju, who said he depended on his shops to survive before the demolition, also disclosed that the road was in a better condition before the bulldozer moved in for the reconstruction .

    Another resident, Taiwo Adebari, also expressed gratitude to the state government, noting that the compensation will help in alleviating some of their sufferings.

  • N2bn debt: Pay up to continue operations, NECO tells debtor states

    N2bn debt: Pay up to continue operations, NECO tells debtor states

    The National Examinations Council (NECO) says the over N2billion examination fees owed it by some state governments is affecting its smooth operations.

    The Registrar of NECO, Prof Dantani Wushishi, said this in an interview with newsmen on Friday, in Lagos.

    He was in the state to monitor the ongoing 2022 Senior School Certificate Examination (SSCE) organised by the council.

    “We are using this opportunity to appeal with the five states that are yet to remit examination fees of their candidates, spanning from 2012 to date, to help us and do the needful.

    “However, because of the relationship we have with these states, some of them have started responding, while others are yet to make any attempt,” the registrar said.

    He said that NECO was following up, to let them understand that it was essential to keep the council afloat by remitting their monies.

    According to him, the council executes its capital projects and overheads from such funds, as the Federal Government does not give it capital expenditure and overheads.

    “The Federal Government only pays salaries of staff and we have challenges all around our offices across the country, as far as equipment, infrastructure and other things are concerned.

    “So, we are letting these states know the importance of meeting up their financial obligations to the the council, for it to remain afloat, as well as the importance of the payment for students to be able to have their results, with which to progress academically, to be useful to themselves and the nation generally,” he added.

    On the general conduct of this year’s exercise which began nationwide on June 27, Wushishi stated that so far, it had been encouraging.

    He said that it had been devoid of incidents.

    According to him, a total of 1,209,000 candidates are participating in this year’s examination.

    “As you know, it is a process, as soon as the examination is concluded on Aug.12, we prepare for marking.

    “We have action plan for coordination and marking, and that is why we are optimistic we will be releasing the results 45 days after the last paper.

    “We have been going round states across the country to monitor and see things for ourselves.

    “We started from  Lokoja in Kogi, and moved over to Ekiti and then to Akure in Ondo, Osogbo in Osun, Oyo, then to Abeokuta in Ogun and today, Lagos,” he said.

    Wushishi said that the feedbacks he had been getting from principals of various centres concerning the conduct of the examination had been commendable.

    He, however, said that the successes recorded so far in the conduct of the examination did not suggest that there had not been some internal challenges.

    “In conducting examination of such magnitude, there are likelihood of some internal challenges, but they are no longer challenges when they have already been surmounted.

    “Even in the face of the security challenges across the country, we ensured that the exercise, our candidates, examination materials and all those that are involved in the administration of this examination are safe.

    “We are grateful for the level of cooperation we are receiving from security agencies to ensure that the examination is conducted in a hitch-free manner, including where there is the enforcement of the ‘sit at home’ order,” the registrar said.

    On his achievement so far in his first year in office, Wushishi said it had been filled with great innovations in an effort to reposition the council.

    “I am so happy to state that in my first one year in office, I have repositioned NECO in two aspects.

    “The first is that we have succeeded in changing the mindset of our staff toward work ethics.

    “We have also been able to encourage them to feel belonged to the system.

    “They should see and own the system, as well as protect it because nobody will come from anywhere to protect this institution for us.

    “We are the largest indigenous examination body in Africa and by implication, we have to take pride in protecting it.

    “It has been a team work and I must say as a council, the board members, members of staff and management, we have all done well,” he said.

    The News Agency of Nigeria (NAN) reports that the registrar visited Ilupeju Senior Grammar School and Agbayewa Memorial College, also in Ilupeju, among others for the monitoring.

  • Niger govt clears N3bn debt owed AEDC –SSG

    Niger govt clears N3bn debt owed AEDC –SSG

    The Secretary to the Niger State Government (SSG) Alhaji Ahmed Matane, has disclosed that the state government has paid over N3 billion to the Abuja Electricity Distribution Company (AEDC) for debts owed it over a period of four years.

    He made this statement at a press conference in Minna, on Wednesday.

    Recall that AEDC had on April 15, issued a notice to disconnect all government facilities from power supply over the N1.9 billion debt owed it by the state government.

    Following the notice, the company went ahead to carry out their threat by disconnecting all government facilities such as the state house of assembly complex, state secretariat, office of the SSG, waterboard and all government ministries, departments and agencies (MDAs).

    Matane, however, disagreed with the debt claims by AEDC, saying that the state government had invested over N3 billion in the company for the purchase of transformers and other services.

    “Two weeks ago we had a discussion with them as regards the current value of the bills that the state government was owing them.

    “We came to a conclusion that while trying to review the claims, we paid about N40 million as against the N100 million being claimed for the month of March.

    “But while we were still discussing the matter, they went ahead to disconnect us,” he said

    Matane said that about 50 per cent of the alleged N1.9 billion was part of the debt left by the precious administration, adding that the state government was a shareholder in the North/South power with about 10 per cent.

    The SSG said that the state government pays N46 million monthly to the company, adding that government had also engaged a private consultant to verify the validity of the claims made by the AEDC.

    He said that the present administration was a responsible government that had always created an enabling environment for investors and private organisations to thrive.

    Matane also assured the general public that efforts were ongoing to revive water supply to residents as soon as possible

  • $418m Paris Club debt: Court dismisses 36 governors’ suit against FG

    $418m Paris Club debt: Court dismisses 36 governors’ suit against FG

    A Federal High Court, Abuja, on Friday, dismissed the 418 million dollars Paris Club debt suit filed by the 36 state governments against the Federal Government.

    Justice Inyang Ekwo, in a judgement, dismissed the suit for lacking in merit.

    “I do not see any merit in this case on the whole and I hereby dismiss it for lack of merit,” Justice Ekwo said.

    The judge held that the 36 states’ attorneys-general, who instituted the suit had no locus standi to filed the matter.

    The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

    The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

    While the 36 states Attorney-Generals are the plaintiffs on the suit.

    Some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

    Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

    According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter.

    Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

    The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

    The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

    He hinted that the deduction was expected to begin in November, 2021.

    He said in spite of his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

    He said if allowed, no state would be able to pay workers’ salaries.

    Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

    “That is why we ran to your court,” he said.

  • Peter Obi berates Willie Obiano, says he left huge amount for him

    Peter Obi berates Willie Obiano, says he left huge amount for him

    Ex-Anambra Governor who served under the auspices of APGA, Peter Obi has stated reasons he deposited so much money for the state when he was handing over to Willie Obiano.

    Obi had, during the twilight of his tenure as governor of Anambra State, announced that he was leaving behind N75 billion for his successor, Chief Willie Obiano.

    Recall that the present Governor Charles Soludo, upon getting his mantle of leadership had mentioned that his predecessor Willie Obiano had left the state in debt. He claimed that just a paltry 300 million naira was left in the coffers and a huge debt of Over 100 billion naira.

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    Mr. Valentine Obienyem the media aide of Peter Obi, stated reasons his principal left such big amount in the state’s account.

    He said: “Often some people who are not experts in finance and statecraft question the rationale behind savings which Obi embarked on out of mischief, display of continued opposition, hatred or pure ignorance.

    “I often express surprise at their viewpoints, because even among animals, we see the practice of saving for tomorrow out of today’s surplus. However, among the human family, we need not save only when there is surplus.

    “If, for example, one plans to buy a car next year, would one not start saving money for that? Savings is about planning and, as Obi always said, “If you do not plan, you have planned to fail.”

    “As for those in the habit of arguing against what they do not understand, I hope you will commend the debt burden that will weigh Anambra down as revealed by Prof. Charles Soludo. May I present to you the rationale behind Obi’s savings in the State as he himself explained.

    “Unfortunately, we live in a system where people do not think about tomorrow and do not plan for future generations but would prefer to obliterate accumulated income and put the state in debt before exiting the office.

    “These are the reasons he is qualified for leadership at any level. In fact, we need such a man for Nigeria to re-discover herself.”

  • Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    A Federal High Court, Abuja, on Tuesday, fixed March 25 to deliver a judgment in the 418million dollars Paris Club debt suit filed by the 36 state governments against the Federal Government.

    Justice Inyang Ekwo fixed the date after counsel to the plaintiffs and the defendants adopted their processes and presented their arguments for and against the matter.

    The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from the federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

    The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

    While the 36 states Attorney-Generals are the plaintiffs on the suit, some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

    Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

    According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter. Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

    The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

    The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

    He hinted that the deduction was expected to begin in November, 2021. He said despite his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

    He said if allowed, no state would be able to pay workers’ salaries. Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

    “That is why we ran to your court,” he said.

  • N784.3m Debt: Court orders unfreezing Of Benue accounts

    N784.3m Debt: Court orders unfreezing Of Benue accounts

    The Federal High Court Abuja, on Tuesday, ordered the unfreezing of all accounts belonging to the Benue Government except one domiciled in Zenith bank.

    Justice Inyang Ekwo gave the order after adoption of Memorandum of Undertaking (MOU) by lawyers representing parties in the suit.

    The News Agency of Nigeria (NAN) reports that while the Assets Management Corporation of Nigeria is the claimant/applicant in the case, HPPS Multilinks Services Ltd and Benue Government are 1st and 2nd respondents.

    The MoU dated Jan. 25 and filed on Jan. 26 was adopted on Feb. 1.

    Leading other counsel, Mr T.D Pepe (SAN) adopted the MoU on behalf of Benue government while

    Mr Val Igboanusi adopted on behalf of the plaintiff.

    Mr A. T Kehinde (SAN) adopted for Fidelity Bank Plc, and Mr C. O. Nwosisi, was for GTBank Plc and counsel for the other banks also adopted on behalf of their clients.

    Justice Ekwo subsequently ordered that Zenith bank with account No. 1013470079 designated as Benue Government Ecological Account
    remained frozen in the sum of the disputed debt vide interim order of the court pending the determination of the case.

    He, however, ordered the unfreezing of all Benue government accounts with Access Bank Plc, Citibank Nigeria Ltd, Ecobank Nigeria Ltd, Fidelity Bank Plc, First City Monument Bank Plc, Guaranty Trust Bank Plc and Heritage Bank Pic.

    Other banks were the court ordered that Benue government accounts be unfrozen are Keystone Bank Ltd, Polaris Bank Ltd, Stanbic IBTC Bank Plc, Standard Chartered Bank Ltd, Suntrust Bank Nigeria Ltd, Union Bank of Nigeria Plc, UBA Plc, Unity Bank Nigeria Plc and Wema Bank Plc.

    The judge adjourned the matter until March 2 for a report on the order.

    “Pursuant to discussions and agreement by the parties, all other accounts of the Benue government frozen by this court vide interim order of Oct. 26, 2021 are to be unfrozen while Account No. 1013470079 with

    Zenith Bank Plc, designated Benue Government Ecological Account shall remain frozen in the sum of the disputed debt, pending the determination or resolution of the dispute.

    NAN recalls that Justice Ekwo had upon an ex parte application dated and filed on Sept. 30 2021, made an interim order freezing and attaching the accounts of both HPPS Multilinks Services Ltd and Benue government who were 1st and 2nd respondents domiciled in the mentioned banks.

  • UNILAG student begs Davido to pay him N1m debt since 2020

    UNILAG student begs Davido to pay him N1m debt since 2020

    A vendor has accused billionaire Davido of refusing to pay 1 million Naira he allegedly owes him since 2020.

    The vendor, Mastermindwears, a student of the University of Lagos, said Davido bought a pink stuffed dummy from him in Dec 2020 and told him he couldn’t pay right away because he had exceeded his transfer limit for the day.

    He said the singer promised to pay as soon as possible but it’s been over a year and all efforts to get the singer to pay proved abortive.

    He said he has reached out to Davido’s manager and a member of Davido’s team who introduced him to the singer but none has given him a favourable response. He also claims he’s been blocked so he can’t reach out.

    He said a member of Davido’s team tried to deny that the singer ever bought anything from him.

    The vendor @mastermindwears then shared proof of the product Davido bought from him. He shared photos of Davido’s daughter playing with the dummy and also screenshots of videos posted online by Davido’s team with the dummy in the background.

    He also shared a threat he claims is from Davido’s camp, trying to shut him up for going public. The sender of the message threatened to deal with him for going public about the money owed him by the singer.

    He pleaded with Davido to pay him so that he can settle his needs at school and take care of his mother.

    See post:

  • Anambra Guber: ‘Stop feigning ignorance about Anambra’s huge debts,’ Uba tells Soludo

    Anambra Guber: ‘Stop feigning ignorance about Anambra’s huge debts,’ Uba tells Soludo

    The Senator Andy Uba Governorship Campaign Organisation, SAUGCO has asked former Governor of the Central Bank of Nigeria (CBN), Professor Charles Soludo to stop feigning ignorance about the total debt liability of the state he so desperately seeks to govern.

    Soludo, candidate of the All Progressives Grand Alliance, APGA in next week’s Anambra governorship election, had while speaking on Channels TV programme, Politics Today, yesterday, shocked the show’s host, Seun Okinbaloye, and viewers when he could not put a figure to the state’s debt profile.

    The usually verbose Professor of Economics had been pointedly asked if he knew what the state’s debt overhang was, and how he intended to deal with it.

    Instead of offering a definitive answer, the APGA candidate embarked on a rigmarole, before stating that he would find out when he becomes governor.

    Undeterred, Okinbaloye pressed further, pointing out that statistics from the country’s Debt Management Office, DMO, indicated that Anambra owed N60 billion in domestic debt, and $116 million in external loans.

    However, the real shock emerged when the eminent Professor, renown for his oratorical skills than sound macro economic solutions, said: ‘We are going to verify that. Borrowed from who, who are the creditors?’

    “We see Soludo’s demurred stance on a very sensitive issue that affects the lives of the people as cheap politics and an attempt to cover up the sins of his pay masters to the detriment of the State.

    “We are however happy that APGA’s antics are already known to the people who are waiting to finally send them packing on November 6.

    “Ironically, data released by the DMO on December 31, 2020 indicated that Anambra’s domestic debt stood at N59,013 billion as at September 30, 2020, while the state’s external debt profile was $115,886 million as at June, 2020.

    “In deed, it is shocking that a Professor Soludo who should have such information at the tip of his fingers, would elect to play politics with such information crucial to the lifeblood of the state, or was simply being mischievous,” Hon. Victor Afam Ogene, Director, Media and Publicity of the Senator Andy Uba Governorship Campaign Organisation, SAUGCO said in a statement today.

    “Whichever is the case, Professor Soludo owes ndi Anambra the patriotic duty of researching into what really is the debt liability of our dear state, Anambra.

    “In fact, for a man who was two years ago, in November 2019, given the task of fashioning out the grandiose 50-year Anambra 2070 Vision Agenda not to be seized of important data such as the profit and loss account of the state, speaks eloquently about his capacity for accomplishing small, practical assignments.

    “Perhaps, it is this obvious flaw that caused former Minister of Finance and current Director General of the World Trade Organization, WTO to author a damning confidential report on Soludo in January, 2015.”

    Okonjo-Iweala: “There is definitely an issue of character with Professor Charles Soludo and his desperate search for power and relevance in Nigeria. Nigerians should therefore beware of so-called intellectuals without character and wisdom because this combination is fatal.”

    Could this character flaw have been at play when Soludo decided to cover up Governor Willy Obiano’s obsessive borrowing binge, in exchange for his role in seeking to puppeteer him into political office?

    “As an irreducible minimum, the Senator Andy Uba Governorship Campaign Organisation, SAUGCO, requests Professor Soludo to undertake the urgent task of finding out the exact and total debt liability of Anambra state – for, in accomplishing this task, Professor Soludo would have rendered an invaluable service to a people he so eagerly crave to govern,” the statement added.