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FG Insists On Borrowing More To Fund Critical Infrastructure
The Federal Government (has said it will borrow more money to fund critical infrastructure, saying Nigeria would not make any meaningful headway in its quest for development if it doesn’t borrow more.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this, yesterday, at a maiden special media briefing by the MDAs organized by the Presidential Communications Team at the Presidential Villa, Abuja.
Even as she noted that Nigeria has expanded its borrowing, the minister said the country was still below 25 per cent debt to GDP ratio and within borrowing limit.
According to her, borrowing was necessary to roll out infrastructure now.
Responding to question on excessive Chinese loans taken by the country and consequences on debt servicing, she explained, “On the issue of Chinese loans, if I may be permitted to speak to the question by the business.
“I think it’s useful to look at the budget for each year; look at the revenues, look at the expenditure, if you take out the new borrowing, really, what will the size of the budget be? How much can the government spend?
“So, there will be a lot of capital projects that are affected. So, we need to look at it that borrowing is, even as you see it in the budget every year, used to support infrastructural development. Otherwise, there will be a challenge.
“Secondly, let me add. I think we’re going through a process where we need to borrow now. Let’s just say in the short to medium term, to get the economy going, while we also expect revenues to improve.
“So, in terms of the pressure of debt service, by the time the revenue comes up, that should be lower, but there are some things you need to do now, to ensure that revenue comes up. So, we need to keep that in mind that if the economy grows and revenues improve, then debt service to revenue, in future, should be lower.”
While acknowledging that the government’s borrowing has become a touchy issue, Ahmed maintained that it is not misplaced.
She further said, “There is a lot of sensitivity in Nigeria about the level of borrowing by the government and it is not misplaced. And I said earlier that the level of borrowing is not unreasonable, it is not high.
“The problem we have is that of revenue. So, what we need to do is to increase revenue to be able to enhance our debt to GDP obligation capacity.
“If we say we will not borrow and therefore not build rails and major infrastructure until our revenue rises enough, then, we will regress as a country.
“We will be left behind, we won’t be able to improve our business environment and our economy will not grow. So, it is a decision that every government has to take.
“Our assessment is that we need to borrow to build our major infrastructure. We just need to make sure that when we borrow, we are applying the borrowing to specific major infrastructure that will enhance the business environment in this country.
“Again, we all have to work not just the Federal Government but state governments to increase our revenue to enhance our debt service obligations.
“We also have to make sure that when we are choosing the projects, we are choosing carefully the ones that will enhance business environment so that more revenue yields come into the treasuries of the country.”
Still on the borrowing threshold, the minister stated, “The total borrowing of the country as at 31st of December is 21.6% of the GDP.
“So, if we were not looking at adding the other category of loans that I mentioned, we don’t even need to increase that at this time. As at 2019, the debt to GDP ratio was 19.2 per cent. So, only 2 per cent was added.”
She affirmed that all that is needed is for government to increase its local revenue, saying, “The more revenue we realize out of the budget, the less we borrow.
“As we see the oil price rising and provides us with more revenue, it provides us with some reliefs. We will be able to reduce our borrowing. So, it is a positive thing for us.
“The minister revealed that the Federal Executive Council (FEC) will soon to approve a policy mandating Ministries, Department and Agencies (MDAs) to buy locally manufactured vehicles.
She said as part of measures by government to control inflation in the country, it has already reduced duties on imported vehicles from 35 to 5 per cent with a view to lessening the high cost of transportation, which in turn, impacts inflation.
According to her, patronizing locally made vehicles will mitigate against dumping due to reduced duties.
The minister maintained that the Federal Government is committed to purchasing locally made goods and vehicles and would engage with state governments to ensure that they do same so as to encourage local production.
On the new import duty policy, she said that the Nigeria Customs Service has already directed all its outposts to commence its implementation.
She added, “Nigerian Customs has reviewed these guidelines and has notified all its operational posts to start implementing the new rates. So, it has taken effect.
“The Federal Government is committed to buying made in Nigeria products and buying made in Nigeria vehicles in particular. So, we will be hoping to have a Federal Executive Council approval to compel Federal Government agencies to buy made in Nigeria vehicles as much as is practicable.
“So, when the security agencies need a security vehicle that is special design, and you don’t have it in Nigeria, we will still need to buy the ones that is outside.
“We’re hoping to also engage the states and encourage the states to take similar measures. It is important for us because we want to make sure the automotive industry survives and grows.
“The Federal Ministry of Industry, Trade and Investment has just finished a review of automated policy, which has been running now for seven years.
“I must say that the policy has not been reviewed before. So, this is the first review that is being done and the essence of the review is to see whether it has achieved the designed targets.
“Once the ministry gets its approvals, then the review will be announced and perhaps there will be a refreshing of the measures that are contained in that policy.”
The Rivers State Chief judge, Justice Simeon Chibuzor Amadi has granted pardon to six inmates standing awaiting trial at the Port Harcourt maximum correctional center.
The six lucky inmates granted pardon on Tuesday by the state Chief Judge included Nwekeala Chizoba, Samuel Emmanuel, Aniete Kelvin, Ebube Fubara and Goddey Okpara who were on awaiting trial as murder suspects and have all spent between 10 years to seven years in the custody without a proper information filed against them in the court.
Justice Amadi during a special gaol delivery exercise last Tuesday at the Port Harcourt Maximum Correctional Centre opined that the special gaol delivery was part of activities lined up to commomerate the 2024/2025 legal year in the State and restated the commitment of the state judiciary in decongesting the correctional centre and ensuring that those inmates who are not supposed to be there are removed from the custody.
The state chief judge stressed the need for all stakeholders to work together to build a society that supports rehabilitation and gives a second chance to anyone or group of people who have fallen short of the expectation of the law and have been punished accordingly.
He stressed that the National Judicial Council(NJC) encourages judges to pay more attention to criminal matters to enable them to decongests the correctional facilities, noting that since his assumption into office, his administration has been able to reduce the number of inmates in Nigerian Correctional Centres and the Port Harcourt Correctional Centre in particular, to less than 2,000 as against the over 4,000 inmates previously in the faculty.
According to him, “as they release the deserving inmates, they affirm their commitment to justice, compassion and rule of law but that they must not forget the fundamental principles of justice delivery system which is truth and fairness, integrity and equality before the law.”
I encourage you all the released inmates to return to your families and become better citizens. You must not engage in action that will return you all back to prison. Let me say that while the judges show empathy to you all, it does not absolved individuals from being held accountable for actions against individuals, corporate organisations and state which the law frowns at, ”he stated
The Chief Judge thereafter stood down the exercise to enable the DPP to intervene to case files following the fact that majority of the persons listed to benefit from the exercise are facing murder charges and adjourned to a date that will come before December.
Earlier in his goodwill message, the outgoing state Comptroller of Nigerian Correctional Centre, Port Harcourt, Felix Lawrence, who was recently promoted to the rank of Assistant Controller General, commended the state judiciary led by Chief Judge, Justice Simeon Chibuzor Amadi for their continuous effort aimed at ensuring justice and decongesting the facilities.
Other activities lined up for the event included special church service at St Paul’s Cathedral , Anglican Communion, Rebisi Port Harcourt, inspection of guard of honour by the state Chief Judge mounted by officers of the Nigerian police and a special court session held at the ceremonial court hall.
By: AkujobiAmadi
The Director General of Rivers State Bureau on Public Procurement (RBoPP), Dr. Ine Briggs, has explained that the Sir Siminalayi Fubara administration plans to enforce transparency in governance through public procurement.
Speaking at a one-day Public Procurement Enlightenment workshop organised in collaboration with the State Local Government Service Commission for newly elected chairmen, vice chairmen, secretaries and leaders of legislative assemblies, Dr. Briggs said it is key for grassroot development.
She stated that the Sir. Fubara administration plans to reduce wastage and at same time infuse efficiency in public expenditure.
The RSoPP DG said the local government political office holders remain key drivers in the new vision hence the workshop is to arm them with knowledge on how to execute projects in tandem with needs of the people.
“ Your role in the prudent management of public resources is, therefore, not just administrative it’s the cornerstone of delivering the dividends of democracy. Every procurement decision you make must reflect a commitment to fairness, transparency and accountability” Dr. Briggs submitted.
One of the key goals of the administration she further reminded the participants was to use their offices to foster economic growth through public procurement.
She warned that the law establishing the agency empowers it to penalise defaulters, but that what is more important is voluntary compliance to the laws.
In addition to that, she said urged the local government council leaders that champion the practice and implementation of public procurement law.
On his part, Acting Chairman of Local Government Service Commission, Pastor GoodLife Ben Iduoku averred that the aim of the workshop is to arm key stakeholders in the local government system to generate new ideas, innovation and strategies in tandem with government policies and programmes.
The workshop dealt on various topics on procurement planning, methods, Understanding Bid Process, including types of Construction Contracts and law.
Some participants were awarded excellence and meritorious awards as part of the programme.
By: Kevin Nengia
The 19th anniversary of the National Association of Proprietors of Private Schools (NAPPS), Rivers State Chapter, recently ended in Port Harcourt in grand style, with participants from various schools including proprietors, the academia, civil society groups and top government functionaries charting the way forward for educational improvement.
The 19th NAPPS anniversary christened, ‘Innovation and Adaptation: Transforming Challenges Into Opportunities’ was held at Casoni Hotels, Port Harcourt.
In his remarks, the Chairman of the Rivers State Chapter of the association, Dr. Jaja Adafe Sunday expressed gratitude to the members and executives for their untiring efforts towards the achievements of the body.
He sought the intervention of government on the lingering crisis on the economy as it is affecting the running of schools.
He decried high cost of things including fuel and raw materials which has adversely affected the running of schools and payment of teachers.
Dr. Sunday hinted that the current economic situation in the nation is biting hard on the operations of schools, saying inflation, removal of fuel subsidy, fuel scarcity, poor electricity supply, tariffs and lack of government grants are some of the challenges faced by schools, and urged the members to brace up to the challenges, as it is the panacea to building a brighter future.
Guest speakers from the health sector and the academia thrilled the gathering on the essence of basic education which they said is the key to national development.
Former Dean of the Ignatius Ajuru University of Education, Professor Azuru and the Chief Medical Director of Meridian Hospitals, Dr. Odo Iyke were some notable guest speakers who delivered lectures at the occasion.
Some distinguished proprietors also got special recognitions and awards.
The 19th anniversary cake was cut by the Rivers State NAPPS Chairman with representatives of the state government assisting.