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Tag: Debt

  • Nigeria’s high debt servicing figure worrisome- Adeboye

    Nigeria’s high debt servicing figure worrisome- Adeboye

    The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has described as worrying Nigeria’s current economic woes.

    Adeboye said he was shocked when he learned that debt servicing alone gulps a high percentage of the nation’s income.

    He said this yesterday at the Special Thanksgiving and Prayer for President Muhammadu Buhari, governors, lawmakers, royal fathers, and their families held at the RCCG national headquarters, Throne of Grace in Ebute-Metta, Lagos.

    The thanksgiving was monitored live by RCCG members in their parishes.

    Adeboye also spoke on COVID-19 , describing it as a noisome pestilence.

    His words: “ If we have a problem in our nation, it has to do with economics. When l asked those who understand the language and how much we need to service our debt, they said that it is the interest you pay so that they will know you are alive.

    “What is needed to pay and keep our debt breathing is about 98 percent of the nation’s income. We have problems and we are still borrowing a little bit more.”.

    Adeboye however, assured that when God is involved in the affairs of a nation, he can turn the tide of its economy for good.

    He also expressed concern over terrorism, killings, and kidnappings in the country, saying it is regrettable that such abominable acts were daily desecrating the land.

    The priest made reference to how traditional rulers were in the past accorded high regards in the country, especially in the Southwest, unlike now that they have also become soft targets of kidnappers.

    Adeboye, however, said that solution was underway as Nigeria would be another testimony to the world, His words: “God will give Nigeria rest. When God is involved, he can turn a failure into an overnight success…

    “If God gets involved in the affairs of a nation, he will put an end to terrorism…When God gets involved in our nation, he can turn the tide of the economy. Whether we believe it or not, Nigeria will survive.

    “Whether we believe it or not he (God) can solve a national crisis overnight. Very soon this country will be another testimony to the world. I believe it will be well with us.”

    The preacher led the congregation in sessions of prayer for the national and traditional leaders, asking that God grants them wisdom to rule rightly.

    He also said that God would promote, settle and protect the congregants.

    Lagos State Governor Babajide Sanwo-Olu, who attended the service in the company with his wife, Dr. Ibijoke, appreciated Adeboye and his wife, Pastor Folu, for their prayers and support.

     

  • Barca receive offer from UAE to sell €1.5bn debt

    Barca receive offer from UAE to sell €1.5bn debt

    Barcelona have received an offer for their €1.5bn debt to be paid by a company from the UAE.

    El Curubito on 8tv reports the company is willing to purchase Barça’s debt with a favourable repayment plan included.

    The cited media ensures it would be a good deal for Barça, who would not have to pay anything for two years.

    That period could be extended to up to 12 years, while the interest demanded by the company would be very low.

    Barça would receive €1.5bn immediately, so they would come out of the “intensive care unit” directors say they’re still in and would have the liquidity to make signings, which was not the case last summer.

  • Photo: Man ‘arrests’, ties his debtor to a tree over N4.6m debt

    Photo: Man ‘arrests’, ties his debtor to a tree over N4.6m debt

    Operatives of the Lagos State Police Command have arrested a man, Oluchi Okoye for tying his debtor over ₦4.6m debt.

    Spokesman of the State Police Command, Adekunle Ajisebutu, said the suspect was nabbed following a complaint by the victim’s wife.

    The victim – Reuben Alozie – until his rescue by the police on Thursday was tied to a stick with ropes at No. 29, Abeokuta Street in the Ebute Metta area of Lagos.

    Although the creditor tried several means to recover his money but to no success, he thereafter resorted to self-help by tying the debtor for about 24 hours before the police came to his rescue.

    Police spokesman explained that policemen attached to the Denton Police Station rescued the victim while apprehending the creditor.

    “The suspect tied the victim to a stick with ropes at No. 29, Abeokuta Street, Ebute Metta, Lagos from 22nd September to 23rd September when he was eventually rescued by the police,” the statement partly read.

    “According to the suspect, he resorted to self-help after several efforts to recover his money from the victim failed.”

    Reacting to the arrest, the Commissioner of Police, Hakeem Odumosu ordered the transfer of the suspect to the Command’s Tactical team for diligent investigation and prosecution.

    He also used the opportunity to “warn people against taking the law into their own hands instead of taking legal actions to seek justice.”

  • Alleged N451bn debt: Produce receipts of tax payments by MTN, Reps tell FIRS

    The House of Representatives Committee on Finance has asked the Federal Inland Revenue Service (FIRS) to submit receipts of the tax payments made by MTN to the agency for 2007 and between 2010 and 2017.

    The request comes as the committee observed during its interaction with the agency on Wednesday that MTN is indebted to the tune of ₦451 billion.

    The FIRS chairman, Mr Muhammed Nami, however, told the committee that MTN is already paying the taxes owed government in instalments.

    Nami further disclosed that the sum of ₦10.104 trillion revenue is expected to be realized in the 2022 fiscal year, with the formal capturing of Facebook, Twitter and other social media platforms into the country’s tax net.

    Nami, who was speaking during the interactive session on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), also unveiled plans for the introduction of Road Tax.

    “On the issue of a digital economy, the FIRS has a department called International Tax Department which is handling such cases,” he said.

    “Twitter and others are already registering with us. That is why in our revenue projections, we are raising it from N5 trillion in 2021 to N10 trillion in 2022. We expect the impact of those registrations to take effect.”

  • EFCC is not a debt recovery agency – Bawa

    EFCC is not a debt recovery agency – Bawa

    The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr Abdulrasheed Bawa, has cautioned members of the public not to drag the commission into business transactions gone awry.

    Bawa gave the advice while speaking as one of the panelists at the Alao Aka- Bashorun Memorial Lecture on Thursday in Lagos, stressing that the commission was not a debt recovery agency.

    The lecture is part of the activities to commemorate the Nigerian Bar Association (NBA), Ikeja Branch, Law Week 2021.

    Bawa, represented by Mr Anselm Ozioko, the Head of the Legal Department of the EFCC, spoke on the topic; “Our Role in the Effective Implementation of Nigeria’s Anti-Corruption Law”.

    He said that there was a general misconception by members of the public that the EFCC was a debt recovery agency and urged the public to stop asking the anti-graft agency to recover debts.

    “I state with all sense of responsibility that members of the public, including legal practitioners in the course of carrying out recovery for their clients, should stop urging us (the commission) to do so.

    “I must also state that in the course of investigating a financial crime, it is possible that a sum of money transferred from the account of a nominal complainant, may be recovered as an exhibit.

    “In certain circumstances, the exhibits may be released to the complainant or the said exhibit will be used for the prosecution of the suspect in court.

    “At the end of a successful prosecution, the court may grant a Restitutive Order for the nominal complainant, in which the exhibit will be released to nominal complainant pursuant to the court Order,” Bawa said.

    He said that when the EFCC was approached by fraud victims, they typically expect the organisation to freeze bank accounts of suspects, make them forfeit their assets and release the assets to them (victims).

    The chairman said when the EFCC followed due process and did not act in line with the expectations of the victims, they become disoriented.

    Bawa said that despite best efforts of the EFCC, international online trading platforms like Paypal, have not restored Nigeria to its payment platform due to the nefarious activities of fraudsters.

    Commenting on the roles of lawyers during interrogation, the chairman said that they were to observe and not interfere with interrogations by the EFCC and that they were not to stand as sureties for suspects in EFCC custody.

    “The EFCC has in some situations prosecuted lawyers who deposited their Call to Bar Certificates to stand sureties for suspects because their client jumped bail.

    “In some cases, we reported such legal practitioners to the Legal Practitioners Disciplinary Committee.

    “It is not your responsibility as a lawyer to bail anyone, you recommend that someone is fit and proper to be a surety not you, as a lawyer,” he said.

    Bawa said that in many instances, lawyers have made attempts to frustrate investigations by filing fundamental rights suits against the EFCC when their clients are served with invitation letters.

    “As a lawyer, you cannot stop a law enforcement agency from carrying out its statutory duties,” he said.

    Also speaking at the forum, Mr Layi Babatunde (SAN) queried why heads of government agencies should go to heads of courts to ensure that their matters are heard in a particular manner.

    “Take for instance, the Assets Management Corporation of Nigeria (AMCON), they do this all of the time. Imagine how it will appear if bank debtors do the same.

    “This should not be taken lightly at all because no litigant has a right to go and discuss their case with the court, behind the other party’s back. That is corruption.

    “The EFCC should look into it and we, as lawyers should not sit idle and allow it to happen. It is a form of intimidation.

    “If we continue this way, foreign investors will not have faith in our judicial system,” Babatunde said.

  • FG laments over N37bn debt owed by airlines

    FG laments over N37bn debt owed by airlines

    The Federal Government has raised concerns over a 37 billion naira debt owed by airlines.

    The Minister of Aviation, Hadi Sirika told a media conference today that the airline debt owed agencies like Nigeria Airspace Management Agency (NAMA), Nigerian Civil Aviation Authority (NCAA), Federal Airport Authority of Nigeria (FAAN) has accumulated for over thirteen years and contributes to the poor management of Nigeria’s civil aviation sector.

    According to Mr. Sirika, the Federal Government will, in line with current reforms double down on such debtors like the Bi-Courtney which owes 13 billion naira.

    Sirika said the government is in the process of intensifying plans towards the concessioning of international airports in the country by the early second quarter of 2022. He said labour has been duly consulted.

    The minister also stated that a total of 67 accidents have occurred in the last five years, of which 48 have been reported under the present administration to drive transparency in the system.

  • Nigeria’s debt profile hits N33.11 trillion

    Nigeria’s debt profile hits N33.11 trillion

    The National Bureau of Statistics (NBS) on Thursday said Nigeria’s debt profile hit N33.11 trillion in March, 2021.

    In its breakdown, it noted that N12.47 trillion, representing 37.67 per cent of the debt was external while 20.64 trillion, representing 62.33 per cent was domestic.

    This was made known in the NBS report titled “Domestic and Foreign Debt (Q1 2021” released on Thursday in Abuja.

    The document said in the period under review, “Nigerian States and Federal Debt Stock data as of 31st March 2021 reflected that the country’s total public debt portfolio stood at N33.11trn.

    “Further disaggregation of Nigeria’s total public debt showed that N12.47trillion or 37.67% of the debt was external while 20.64trn or 62.33% of the debt was domestic”.

    The NBS added that Federal Governmet only domestic debt stock was put at N16.51 while States and FCT domestic debt stock was put at N4.12 trillion with Lagos state accounting for 12.31% of the total domestic debt stock while Jigawa State has the least debt stock in this category with a contribution of 0.77% to the total domestic debt stock”.

    It explained the Domestic Debt Data Report was generated from the signed-off submissions received from the States and the FCT.

    The NBS noted that Domestic Debt Stock for 35 States: Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Sokoto, Taraba, Yobe, Zamafara and the FCT was as at March 31, 2021.

    It added the Domestic Debt Stock Figures for Rivers State were as at December 30, 2018.

  • Nigeria’s debt profile hits N33.1tn

    Nigeria’s debt profile hits N33.1tn

    Nigeria’s total debt stock rose by N191bn in the first quarter of this year, according the figures released by the Debt Management Office on Wednesday.

    The DMO said the debt stock rose to N33.107tn as of the end of March 2021 from N32.916tn in December 2020

    It said the country’s external debt however reduced due to the redemption by Nigeria of the $500m Eurobond in January.

    The debt office said, “Total public debt stock, which comprises the debt stock of the Federal Government of Nigeria, 36 state governments and the Federal Capital Territory, stood at N33.107tn or $87.239bn.

    “The debt stock also includes promissory notes in the sum of N940.22bn issued to settle the inherited arrears of the FGN to state governments, oil marketing companies, exporters and local contractors.

    “Compared to the total public debt stock of N32.92tn as at December 31, 2020, the increase in the debt stock was marginal at 0.58 per cent.”

    A further analysis of the public debt stock showed that the domestic debt stock grew by 2.11 per cent from N20.21tn in December 2020 to N20.637tn as of the end of March 31, 2021.

    The FGN’s share of the domestic debt includes FGN bonds, Sukuk and green bonds used to finance infrastructure and other capital projects as well as the N940.22bn promissory notes, according to the DMO.

    “External debt stock declined from $33.348bn as at December 31, 2020 to $32.86bn due to the redemption by Nigeria of the $500m Eurobond in January 2021,” it said.

    The DMO had said in January that the 6.75 per cent $500m 2021 Eurobond, which was issued in January 2011, was Nigeria’s first foray into the international capital market.

    It said the issuance of the Eurobond enabled Nigeria to diversify its sources of funding as it successfully raised a total of $10.67bn from the market thereafter to finance the implementation of the federal budgets.

    The debt office said this also contributed to the country’s external reserves.

  • Gunmen kidnap nine passengers in Katsina

    Gunmen kidnap nine passengers in Katsina

    At least 15 passengers were reportedly abducted by heavily armed gunmen suspected to be bandits on Sunday along the Tsakskiya-Ummadau road in Safana Local Government Area of Katsina State.

    However, police said only nine were abducted and four had been rescued by Operation Puff Adder.

    The passengers were ambushed in their vehicle as they returned from Jibia market at 3pm.

    Their vehicle, a J5, had registration plate KZR 345ZT.

    It was gathered that 15 of 18 occupants were kidnapped by the bandits said to number over 20, according to a witness.

    One Aliyu Rumawa, who witnessed the incident, confirmed the abduction of the passengers in a telephone interview on Monday, saying the gunmen upon seeing the vehicle, started shooting sporadically in the air to frighten the victims before abducting them.

    “Fifteen out of 18 passengers in the bus were taken away by the bandits, numbering about 20 and were heavily armed. The passengers were returning from Jibia market and most of them are traders.”

    He called on the security agencies in the state to intensify surveillance in villages and communities in Safana and other affected local government areas of the state in order to curtail the problems of banditry, kidnapping and other criminalities bedeviling the state.

    However, the Police spokesman in Katsina, Gambo Isah, while confirming the incident to pressmen, gave different numbers.

    “They were nine passengers not 15 abducted. What happened was that on Sunday at about 15:30 hours, bandits abducted about nine passengers in a J5 bus with registration number KZR 345ZT,” said Isah.

    “After the incident, the DPO led a team of Operation Puff Adder into the forest. They were able to rescue four among those passengers, while the remaining five victims were taken away by the bandits. Efforts are on by our operatives to rescue the remaining passengers.”

  • Nigeria missing as IMF grants debt pardon to 28 countries

    Nigeria missing as IMF grants debt pardon to 28 countries

    Nigeria has been excluded from the list of 28 countries granted debt pardon by the Executive Board of the International Monetary Fund (IMF).

    TheNewsGuru.com, TNG reports that the Board has approved a third tranche of grants for debt service relief for 28 member countries under the Catastrophe Containment and Relief Trust (CCRT). This approval followed two prior tranches approved on April 13, 2020 and October 2, 2020, respectively.

    In a report released yesterday, the Fund said the approval will enable the disbursement of grants from the CCRT for payment of all eligible debt service falling due to the IMF from its poorest and most vulnerable members from April 14, 2021 to October 15, 2021, estimated at SDR 168 ($238) million.

    The beneficiaries of previous CCRT tranche are Afghanistan, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Ethiopia, and The Gambia.

    Others are Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo and Yemen.

    This tranche of grants for debt service relief will continue to help free up scarce financial resources for vital emergency health, social, and economic support to mitigate the impact of the COVID-19 pandemic. Subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period through from October 16, 2021 to April 13, 2022 amounting to a total of about SDR 680 ($964) million.

    In March 2020, Managing Director Kristalina Georgieva launched an urgent fundraising effort to raise $1.4 billion in grants for the CCRT. This would enable the CCRT to provide financial assistance for relief on debt service for up to a maximum of two years, while leaving the CCRT adequately funded for future needs. Thus far, donors have pledged contributions totaling about $774 million, including from the European Union, the UK, Japan, Germany, France, the Netherlands, Switzerland, Norway, Singapore, China, Mexico, Philippines, Sweden, Bulgaria, Luxembourg, and Malta.

    Executive Directors welcomed the opportunity to consider the approval of grants under the Catastrophe Containment and Relief Trust (CCRT) to support the third tranche of debt service relief for the Fund’s poorest and most vulnerable members. They noted that the COVID-19 pandemic continues to exact a severe human and economic toll on these countries and that the resources freed up by the first and second tranches of CCRT debt service relief had helped mitigate the impact of the pandemic.

    Directors agreed that the available resources and pledges are sufficient to finance the third tranche of debt service relief for the period from April 14 to October 15, 2021. Accordingly, they approved grant assistance under the CCRT for relief for 28 eligible members that have debt service falling due during this period.

    Directors concurred that countries that received the CCRT grants for debt relief are generally pursuing appropriate macroeconomic policies in response to the economic fallout from the global pandemic. They welcomed that a number of member countries were transitioning to Upper Credit Tranche-quality arrangements which would provide a stronger policy framework for the recovery period. Directors also observed that most countries would benefit from a resumption of Fund surveillance and updated debt sustainability assessments.

    The Fund directors noted the progress made in implementing governance safeguards commitments regarding COVID-19 related spending in CCRT-eligible countries. However, they regretted implementation delays in some countries, particularly in disclosing beneficial ownership information on entities awarded government contracts. Directors thus underscored the importance of continued follow-through on the commitments on governance and transparency, supported if necessary, by technical assistance.