Business
Nigeria’s External Debt Stands At $3.75 bn
Nigeria is accumulating fresh debts as its foreign debts stand even at $3.7 billion.
According to Central Bank of Nigeria (CBN) reports, Nigeria has since 2006 be accumulating other debts.
In a paper titled: “The Global Financial Crisis and the Nigerian Financial System: The Way Forward” CBN said that the country’s debts has increased in the last two years.
According to the paper delivered by the Director, Research Department, Central Bank of Nigeria, Mr. Charles Mordi, the total debts recorded in 2006 was $3.5 million.
He said that the debts increased to $3.6 billion in 2007 and $3.7 billion in 2008.
Mordi, while giving an overview of the economy vis-à-vis giving the macro-economic indicators over a period of three years, argued that Nigeria’s debts has shot up relative to the economic growth.
His assertion was underscored by economic observers who claimed that Nigeria is yet to learn its lesson in spite of the economic crisis facing it.
They said that Nigeria stands the risk of increasing its debts to several billions of dollars if it failed to exercise caution.
They based their assertions on the fact that the global financial crisis and the attendant reduction in the government’s expenditure would make the federal government to continue to look for external lenders.
The CBN further noted that the exchange rate has remained unstable during this period.
He pointed out that the naira was N128.2 per dollar in 2006 before it experienced an increase in value in 2007 when it exchanged for N117.9 per dollar.
However, the stability enjoyed by the naira was short-lived as it was exchanged for N132.5 per dollar in 2008. Over the period, the naira has continued to fall against the dollar.
Former CBN boss, Chukwuma Soludo, explained that the naira depreciation was as a result of the global economic crisis.
Other economic indices that have experienced instability in the past three years , according to the report, are external reserves, foreign direct investments and gross domestic product (GDP).
The report noted that the external reserves was 42.3 billion dollars in 2006, 51.3 billion dollars in 2007 and 53.0 billion dollars in 2008.
However, the current global financial crisis and the sharp fall in the international prices of crude oil resulted in the reduction of external reserves.
On the foreign direct investment, the country recorded 13.9 billion dollars in 2006, 5.6 billion in 2007 and 5.8 billion last year.
Similarly, the gross domestic product recorded a growth rate of 6.0 per cent three years ago, 6.6 per cent in 2007 and 6.4 percent last year.
The inflation rate has also recorded sharp increase during the period.
The development made federal government to put in place measures to achieve a single digit inflationary rate.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.