Tag: Debts

  • Lagos hospital detains baby for three months over unpaid bills

    Lagos hospital detains baby for three months over unpaid bills

    …vows to register it at an orphanage if bills are not cleared

    A Lagos based hospital, Inton Hospital has refused to hand over a baby, Ighodalo to his parents, Mr Michael and Mrs Roseline Oaikhena for three months now over an unpaid medical bill of N650,000.

    According to findings, the hospital has also allegedly vowed to put the baby in an orphanage unless the debt was cleared.

    According to a report by The Punch, Roseline, a private primary school teacher, had given birth to a set of twins on February 10, 2018, at the Ifako General Hospital, Lagos.

    The babies, which were premature, were reportedly taken to Inton, where they were put in an incubator at the rate of N300,000 per week.

    After one week, the female child reportedly died, while the surviving boy continued treatment at the intensive care unit of the facility at the rate of N150,000 per week.

    The child’s father, Michael, a driver, said the bill later rose to N1.2m.

    He said, “My wife and I have been married for about two years. When she conceived, she went through a lot of stress due to the nature of her job and at a point, a doctor advised her to go for bed rest.

    She gave birth at the Ifako General Hospital when the pregnancy was about six months. We were unable to get an incubator at the hospital and our search for one in Lagos public hospitals proved abortive.

    She gave birth around 1pm and when we could not find any public hospital with an incubator, we settled for Inton Hospital. We got there around 11pm; their bill was N300,000 per week.

    However, after a week, we lost the female baby and we started paying N150,000 per week. The surviving baby has now been moved from the incubator to a nursery, where he has been for over three months.”

    He explained that the mother had been visiting the hospital to give the newborn baby food, adding that the child was being held over the N650,000 medical bill that the family owed.

    The Edo State indigene said one of the doctors at the hospital recently called him and threatened that the child could be moved to a motherless babies’ home if the balance was not paid.

    The doctor said since we had not met up with our financial obligations, they might not be able to keep the baby any longer and will take him to a motherless babies’ home. He said the baby had a high risk of contracting an infection because he is in a place where they treat sick children,” he added.

    The wife, Roseline, expressed sadness that her baby could be taken to an orphanage while she was alive.

    The 28-year-old noted that efforts by the family to raise funds through social media had been abortive, adding that she lived in pain every day.

    She said, “I was going to see him at the hospital every day before I stopped because of transport cost. I go twice a week now.

    The hospital said the next step is to take him to a motherless babies’ home because we don’t have money.

    We have tried to raise money to no avail. We were able to raise N550,000 from friends and relatives, including the N170,000 we got on a social media platform. We still need to pay N650,000.”

    A doctor at the Inton Hospital, Dr. Badejo Christopher, had said the medical bill was high due to the specialised care required by the baby.

    Christopher, who spoke to The Punch in March while the baby was still receiving intensive care, said Ighodalo was being monitored by a consultant paediatrician.

    He had said, “The mother went into labour at 27 weeks as against 38/40 weeks. The twins were rushed here, but we could not save one of them. The boy has been inside an incubator and taking drugs.

    An average birth weight is 2.5kg, but the baby’s weight at presentation was 1.0kg. The challenges of managing preterm children are many. The drugs we use are very expensive because the children are susceptible to sepsis (infection).

    One of the antibiotics is as expensive as N16,000. We charge N150,000 per week.”

    The Chief Medical Director of Inton, Mr. Akeem Mustapha, on Tuesday, however, denied that the hospital planned to take the child to an orphanage, saying the couple wanted to draw public sympathy.

    He said, “There is nothing like that. We only advised them that it is not right to put the child in the nursery for a long time because if any infection breaks out at the hospital, the child may be affected. Nobody will say because of that, the child should be taken to a motherless babies’ home. Why?

    They are only trying to whip up sentiments so that you can help them to get money. They need money to discharge the baby, so they want you to put up a story that the hospital will take the child to a motherless babies’ home. Why they are putting up this kind of thing is laughable.”

     

  • I nearly ran away with huge debts, uncompleted projects Lamido left behind – Jigawa Governor

    Governor Abubakar Badaru of Jigawa State on Monday said he nearly abandoned his job after going through huge debt profile and uncompleted projects left behind by the immediate past governor of the state, Sule Lamido.

    The governor said the debts were in excess of over N31.3 billion.

    “The first day I went through the handover note submitted to me by the then PDP administration, I felt like running away because of the gravity of problems contained in the document,” he said.

    Badaru stated this in an interview with journalists at the government house, Dutse, marking the activities of his third year in office. He outlined his achievements as well as the challenges he encountered since he came on board.

    “Since 2015, we have spent N51billion on road projects comprising N31.3 billion on inherited projects and N19.3 billion on new project as well as N841 million in road rehabilitation,” he said.

    Badaru said the efficient way he employed in managing public treasury has earned him so many foes even within his party (APC). He said this has not deterred him from delivering his campaign promises.

    “With the little resources available, I have been able to complete 90 per cent of the inherited capital projects and commenced new ones,” he said.

    He said the austerity measure his administration embarked upon was to prevent the state from backlog of salaries and pensions, adding that, the approach has successfully negotiated a discount of over N11 billion on inherited projects. He said he ploughed the savings into new projects.

    “Prior to my swearing in, the opposition PDP dug a hole for the incoming administration to fall. They left only N16 million in the treasury thinking that we can’t even pay salary. However, with prudence and God willing, Jigawa is among the states paying workers salary unfailingly on 25 of every month and now paying leave grant.

    Badaru went further to rank himself high in agriculture where he said his efforts have resulted in the commencement of large investment in sugar, rice, livestock and poultry whose combined turnover will be in excess of N250 billion with at least 30,000 direct and indirect Jobs.

    On healthcare, he said Jigawa is 31 primary healthcare centres away from achieving a one healthcare facility per ward target of the federal government. He also said he has increased to 500 per cent, budget intervention for pregnant women and children below five years.

    On education, he said his administration started by unlocking federal counterpart funding for basic education. It followed up with a N9.8 billion capital spending to construct and upgrade 4,520 classrooms, 411 toilet cubicles, 6 administrative blocks and 97,659 set of pupils furniture, 3,416 sets of teachers furniture, 188 staff houses, 4 hostel blocks and 79 hand pumps.

    On water supply, he said an addition of 9.2 million litres daily to the township water supply through a series of intervention, has been achieved.

    Also, as part of the activities marking his third year in office, the governor launched the construction of an 18-room corps members’ lodge to be constructed in the 27 local councils across the state. The building, if completed, will accommodate almost 4,000 corps members, he said.

     

  • AMCON takes over Sen Oduah’s companies, other assets over unpaid debts

    The Asset Management Corporation of Nigeria (AMCON) has taken over Sea Petroleum Oil & Gas Ltd. and other assets belonging to Sen. Stella Oduah-Ogiemwonyi over an unpaid debt of about N20 billion.

    AMCON said the takeover followed an injunction granted by Justice M.S. Hassan of the Federal High Court, Lagos against Sea Petroleum Oil & Gas Ltd.

    The corporation in a statement by its Head, Corporate Communications, Mr Jude Nwauzor, on Friday said that Oduah-Ogiemwonyi had been having a running battle with AMCON over her inability to settle her huge debt of nearly N20 billion.

    The statement said that AMCON purchased the Eligible Bank Assets (EBAs) of Sea Petroleum & Gas from Union Bank Plc. sometime in 2012.

    It said that in spite of overtures and genuine efforts made by AMCON to reach an amicable settlement, the senator and her co-promoters had remained recalcitrant.

    “Having exhausted all avenues of peaceful resolution of the humongous debt, AMCON had no other choice than to refer the matter to court,” the statement said.

    It said that the order also affected the senator’s other business interests for which AMCON had since appointed Moyosore Jubril Onigbanjo (SAN) as receiver over the assets of Oduah-Ogiemwonyi; Sea Petroleum Oil & Gas; Sea Petroleum and Gas FZE as well as Star Tourism and Hotels Ltd.

    The statement said that the court also ordered the freezing of the funds of Sea Petroleum & Gas and its affiliated companies and principal promoters, held anywhere by any entity or persons in Nigeria.

    It also authorised AMCON and its receiver, Onigbanjo to take over all assets pledged as collateral for the facility by Sea Petroleum Oil & Gas Ltd.

    “In compliance with the order of the court, AMCON through its receiver, Moyosore Jubril Onigbanjo, SAN, today (May 18), simultaneously took possession of the assets of Sea Petroleum & Gas Ltd. and its affiliated companies.

    “Justice Hassan specifically, ordered Sea Petroleum Oil & Gas Ltd. and its affiliated companies to hand over the company’s business, which sits on over 9000 square kilometres of land in the fastest developing area of Lagos State along the Lekki-Epe Expressway,” it said.

    Other affected assets, according to AMCON, are two tank farms of 500 metric tonnes capacity; a property at Maiyegun Tourism Zone, Lekki Peninsula Scheme 11, Lagos Island and a filling station complex at kilometre 14, Lekki-Epe Expressway, Ikota, Lagos.

    The court order also listed a host of other assets across the country, including Plot 2, Block 12C, Babafemi Osapa Crescent Lekki; Block 5, House 4A Mobolaji Johnson Estate, Lekki, and office/filling station at Jakande in Lekki, Lagos, among others.

  • $5.5bn loan: FG insists on more borrowing plans, says debts serviceable for 30 years

    The Federal Government has said it will embark on more external borrowings to meet up with the demands of some infrastructural projects across the country.

    The government however stated that the borrowings will be on long term basis just as the projects the loans are earmarked for as also for long term benefits.

    The Minister of Finance, Mrs. Kemi Adeosun, who was represented by the Director-General, Debt Management Office, DMO, Patience Oniha, at a defence session organised by the Senate Committee on Local and Foreign Debts in Abuja on Thursday, gave the indication and urged Nigerians to focus on the long-term benefits of the loans.

    TheNewsGuru.com reports that President Muhammadu Buhari had last week written to both chambers of the National Assembly, seeking approval for $5.5bn external loans to finance the 2017 Appropriation Act.

    In the letter dated October 4, 2017, Buhari referred the Senate to the 2017 budget, with a deficit of N2.356tn and provision for new borrowing of N2.321tn.

    He said the Act also provided for domestic borrowing of N1.254tn and external borrowing of N1.067tn (about $3.5bn).

    At the session on Thursday, the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu Sani, asked Oniha to provide details of the proposed loans, including the rate and tenure.

    In her response, Oniha said, “In terms of tenor, from the figures that distinguished senators have reeled out, we have them in various tenors. What you do is at the time you get to the market and you want to price, you will be more certain about the price. It could be anywhere from five to 30 years.

    On borrowing, when the current generation may not be around at that time (payment completion), the truth is that if we are borrowing in the long term, we are using it to finance capital projects, which are also long-term (projects) and the benefits of those projects are also long-term (benefits).

    I believe that some of the roads and even institutions like some universities that we see today were built before some of us were born. We should look at it this way; that the benefits are also long-term (benefits).”

    She also responded to the question on whether the development of the first generation infrastructure in the country was funded with loans, saying, “I can remember that the Federal Government issued development loan stocks under the first plan and some are actually yet to mature. Those development loan stocks were what the Federal Government used in the 60s and maybe early 70s. I know that some of them had 20 to 22 years’ maturity. At the time, they appeared to be very long. This is not the first time that the government is borrowing on a long-term basis.”

    The DMO boss further explained that out of Nigeria’s debt current stock of N19tn, 77 per cent was from the domestic market through the various products issued, including Treasury bills, the Federal Government of Nigeria Bonds, the Federal Government Savings Bonds and the recent Sukuk.

    The implication of having that large amount in domestic debt is high debt service because the costs of – meaning interest rates – are high. If the government is so visible and prominent in the local market, it means that we have taken some of the money that should go to the private sector.

    Banks should be able to have large amounts of money to extend to the real sector. If we are not too prominent in the domestic market, there should be more room for banks and other financial institutions to lend to the private sector and, thereby, contributing to economic growth.”

    In a statement made available in Abuja on Thursday, the DMO said $2.5bn of the proposed external borrowing would be used to finance some projects while $3bn would be used to refinance some domestic debts.

    The DMO said, “The first component of $2.5bn represents new external borrowing provided for in the 2017 Appropriation Act to part finance the deficit in that budget.

    It will be recalled that the 2017 Appropriation Act provided for new external borrowing of N1.067tn or $3.5bn at an exchange rate of USD/N305.

    Out of this amount, $300m has been raised through a Diaspora Bond that was issued in June leaving a balance of $3.2bn out of which $2.5bn is to be sourced through a Eurobond issuance.

    The $2.5bn proposed Eurobond will be used to finance critical road and rail projects included in the 2017 Appropriation Act.

    In his presentation, the Minister of Transportation, Rotimi Amaechi, said Nigeria would borrow more to finance ongoing rail projects.

    According to him, the country needs $36bn to complete the projects.

    He said, “What is in this (2017) budget that we are asking for now is Kano-Kaduna and Port Harcourt-Calabar, but the bank that is lending us money will prefer if we ask for Ibadan-Kano so that we can finish the whole stretch from Lagos to Kano.”

    When asked which particular rail projects the loan would be used to finance, Amaechi said, “It depends on what they do with the virement; it will affect a lot of the funding. This money we are asking for will fund the completion of the Itakpe-Warri line; that will be ready in June next year. It will also fund the Kano-Kaduna and Port-Harcourt-Calabar (rail lines).”

    He added, “It means that we will still come back to ask for more funding for the Ibadan-Kaduna rail, even if we got this (the current request).

     

  • Ogun State owes N103b local, foreign debts – Amosun

    Ogun State owes N103b local, foreign debts – Amosun

    Governor Ibikunle Amosun has said the state owes a total of N103bn in both domestic and foreign debts.

    The Governor disclosed this while addressing teachers at the Arcade ground, Oke-Mosan Governor’s Office, Abeokuta, the state capital during the 2017 edition of World’s Teachers Day.

    He explained that the N103b debt included N48.9 billion inherited from his predecessor, Gbenga Daniel, and a foreign loan of about N40 billion incurred by the state since the days of Olabisi Onabanjo.

    Amosun also justified the recent loan request of $350 from the World Bank, saying it is only rational to take the loan at 1% interest rate in the interest of state development.

    According to him, in a manner akin to the experience of Lagos and Edo states, the loan would be beneficial to his successors as his administration may not access over 10% of the loan before its expiration.

    Amosun said: “clearly, every debt is about 103 billion including foreign and local. Even if you take the foreign loan which was about 40 billion, I didn’t take the loan, our forebears did.

    If those ones are grants with 0.5%, they are just like ‘dash’, when people are shouting that we are taking loans, World Bank is not stupid, what they probably have is $1billion and they are giving Ogun State alone 35% of that, $350m dollars at 1% or 1.5%.

    That money is because of love we have for Ogun State, if not, I would have stopped the loan because of these talks, but this is the time, I will not be the administration that will collect this money, at best, we will be given 10% next years because world bank has procedures.

    Officially, Ogun State is owing little over 70billion, the one that is local that can be ascribed to this administration. How can anybody that is rational see a loan of 1% and you’re saying ‘don’t take’, they clearly do not know, and you can’t give what you don’t have.

    My predecessor officially said they left N49.8 billion dollars, that was what was left in the handover note if all that we’ve added to it is about $20 billion, can’t you see what we’ve done?”

    He reiterated that he opted to repay the bailout facility for 10 years as against 20 years proposed by the Federal Government because of his financial re-engineering in the state.

     

  • Nigeria’s debts hit $15.05bn, N14.06tr by end June

    Nigeria’s debts hit $15.05bn, N14.06tr by end June

    States and Federal Debt Stock data as at June 30, 2017 reflected that the country’s foreign and domestic debts stood at $15.05 billion and N14.06 trillion respectively.

    According to a report on the foreign debt figures released by National Bureau of Statistics (NBS) on yesterday showed that $9.67 billion of the debt was multilateral; $218.25 million was bilateral (AFD) and $5.15 billion from Exim Bank of China credited to the Federal Government of Nigeria (FGN).

    Federal Government accounted for 74 percent of the total foreign debt while all states and Federal Capital Territory (FCT) accounted for the remaining 26 percent.

    “Similarly, total FGN debt accounted for 78.66 percent of Nigeria’s total domestic debt while all states and FCT accounted for the 21.34 percent balance.”

    According to NBS, a breakdown of the FGN domestic debt stock by instruments reflected that N7.56 trillion or 68.41 percent of the debt are in Federal Government Bonds; N3.28 trillion or 29.64 percent are in treasury bills and N215.99 million or 1.95 percent are in treasury bonds.

    Lagos State has the highest foreign debt profile among the 36 states and FCT accounting for 37 percent while Kaduna (six percent), Edo (five percent), Cross River (four percent) and Ogun (three percent) followed closely.

    Similarly, Lagos State has the highest domestic debt profile among the 36 states and FCT accounting for 10.39 percent while Delta (8.04 percent), Akwa Ibom (5.18 percent), FCT (5.09 percent) and Osun (4.90 percent) followed in that order.

    See full report from NBS here

  • FG approves use of promissory notes to offset contractors, states’ debts

    FG approves use of promissory notes to offset contractors, states’ debts

    The Federal Executive Council (FEC) on Wednesday approved promissory notes for offsetting the debts owed contractors and state governments.

    This was revealed by the Minister of Finance Mrs Kemi Adeosun to State House correspondents at the end of the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja.

    With her were Federal Capital Territory (FCT) Minister Mohammed Bello, Head of Service of the Federation Winifred Oyo-Ita and Special Adviser on Media and Publicity Femi Adesina.

    Adeosun said a rigorous and strong process would be put in place to ascertain the debts that had accrued since 2006.

    The debts, she said, also included pension liabilities and unpaid salaries.

    In her words: “Federal Executive Council approves a process to validate and pay inherited Federal Government contractors and employee liabilities

    Obligations accumulated over the last two decades to be paid through bond and promissory note issuance to resolve long outstanding dues and stimulate economic activity

    The Federal Executive Council has today approved the Ministry of Finance’s proposed validation process and promissory note and debt issuance programme to resolve a number of inherited and long outstanding Federal Government (FG) obligations to contractors, state governments and employees.

    This will be followed by a request to the National Assembly to approve the programme ahead of implementation.

    In March 2017, the Economic Management Team, under the leadership of His Excellency Acting President Yemi Osinbajo, mandated the Minister of Finance to chair a committee that would establish a process to confirm the validity of inherited Federal Government obligations, and propose a mechanism to resolve them.

    These obligations largely consist of dues owed to state governments, oil marketers, power generation and distribution companies, suppliers and contractors by FG parastatals and agencies, payments due under the Export Expansion Grant (EEG), outstanding judgement balances as well as pension and other benefits to Federal Government employees. Some of the obligations date back as far as 1994. The resolution of this will significantly enhance liquidity in critical sectors of the economy.

    Following an exhaustive process of reconciliation, the committee has been able to provisionally confirm a discounted total of N2.7 trillion of obligations, consisting of N740 billion of outstanding pensions and promotional salary arrears (not discounted) and N1.93 trillion (discounted) of other obligations, including dues to Federal Government contractors and suppliers.

    These numbers are aligned with existing Federal Government estimates and, in some cases, are lower than previously estimated.”

    The supplier and contractor obligations will be resolved through a strict process of final validation, following which those confirmed will be settled through the issuance of liquid promissory notes (10-year tenure), phased over a three-year period to minimise impact on liquidity and with preference given to those willing to offer the largest discounts.

    Obligations owed to individuals (for example pensions and employee benefits) will be resolved through the issuance of specific bond instruments, again phased over the next three years. These obligations will then be incorporated into the Medium- Term Expenditure Framework by the Ministry of Budget and National Planning,” she said.

    Mrs. Adeosun noted that the economy cannot move at the right pace if the legacy issues inherited are not addressed.

    The issues, she said, act as a significant drag on economic activity.

    The government must be a driver of growth, and enable private sector activity. It should not be the most significant obligor to many value creating businesses. At the same time, we have an obligation to our Federal Government employees to address these long-outstanding pension and employment benefit issues.

    We are doing this systematically, and we want to do so once and for all. We are enhancing the government’s controls and processes to ensure we do not find ourselves in this situation again.”

    Over the last two decades, the Federal Government has built up over N2.7 trillion of obligations which were not cash backed, and remain outstanding to this day. We have developed a solution that will simultaneously resolve these issues, and deliver a boost to economic performance.

    Our solution will remove the drag on economic performance these obligations cause, improve liquidity in key sectors, especially the power sector where we will resolve Federal Government dues to the distribution and generation companies, and so boost investor confidence. It will also help to improve non-performing loan ratio’s in the banking sector, where an unacceptable number of NPL’s are linked to Government contracts.” she added

    According to her, the total size of the obligations identified are N3.4 trillion.

    The debts, she said, included “non-payment of fuel subsidy dating back many years on which interest was accruing according to the contracts.

    Unpaid electricity bills by MDAs and obligations accruing to distribution companies, including those from the 50% reduction in electricity tariffs in March 2015.

    Unpaid salary obligations outstanding since 2012 and pension arrears, etc.

    Outstanding contractor obligations. Judgment obligations dating as far back as 1994,” she said

    Mrs. Adeosun went on: “By recognising the discounted obligation, we will be effectively restating our debt position, increasing the debt to GDP ratio from 18.9% to 21.5%, however, according to MTEF forecasts, the ultimate impact on debt service to revenue is minimal, as debt service to revenue is forecasted to move from 35.78% to 35.84% after the full bond issuance if approved.”

    Following the approval of the Federal Executive Council, she said that the next steps include “request approval from the National Assembly for the debt issuance to resolve the pension and employee benefit issues.”

    Complete the process of validating and inspecting the contractor projects (at least 80% will be physically inspected by an independent third party (to be witnessed by relevant Civil Society Organisations) while all documents related to debt claims will be independently reviewed by a major international accountancy firm for validation).

    DMO to issue the first tranche of debt to pay the pension and salary obligations.

    The first round of promissory notes to be issued to contractors,” Mrs Adeosun said.

     

  • May Day: Stop paying early salaries, it lead to debts – Workers beg Ayade

    May Day: Stop paying early salaries, it lead to debts – Workers beg Ayade

    Workers in Cross River State have beg Governor Ben Ayade to stop paying them early salaries as it make them indebted before the end of the month.

    TheNewsGuru.com reports that the workers got their May salary on April 30, on the eve of May Day, few days after April salary was paid, even while others in some states are being owed many months’ salaries.

    Speaking on May Day celebration on Monday, State Chairman of the Nigeria Labour Congress (NLC), John Ushie, said: “We have advised the governor not to be paying salaries like this but he insisted.

    May be it is his own way of showing that he cares for the people. He feels he should make the life of the people better and he has expressed this by paying a month salary in advance

    We believe that salaries should be paid for work done but since he has gone ahead to pay, we can only advise workers to be prudent.

    He did the same thing last year, but we did not expect he will do the same thing again because he just finished paying April salaries. That is the situation on ground.”

    Nigeria Union of Teachers Chairman, Eyo-Nsa Itam, said: “I think it is a tradition. We did not expect it yesterday. We expected it today. But you know because of the economic strain, there may be suffering, if people are not careful.

    It means people would work for two months without receiving salaries, because the governor just paid salaries last week. Within one week, he has paid two months salaries. So, it is a good development, but the impact would be hectic.

    To me, the salary should have been paid religiously as it had been paid on or before 25th of every month so that people can plan. The more money you see, the more your expenditure would be.

    Assuming you are earning N100,000 and you are paid for two months, which is N200,000 within one week, you find out that you will finish spending that money and the next month, you will be living on debt.

    This issue of paying two salaries, within one week is what we are talking about because it would definitely affect people.”