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We’ve Not Mortgaged Nigeria’s Asset For Chinese’ $3.59bn Loans -DMO
The Debt Management Office (DMO) has clarified that loans from China to Nigeria, which presently stood at $3.59billion, constitutes only 9.4per cent of the country’s total foreign debt stock of $37.9billion.
The Director-General of DMO, Patience Oniha, who made this known in an interview in Abuja, last Saturday, also clarified that the loans were largely concessional, as no national asset was tagged as collateral.
In recent times, both the social and mainstream media have been awash with news about some African countries, including Nigeria, facing the threat of losing some critical national assets to the Asian country due to high level indebtedness.
“Nigeria’s total debt stock as at September 30 was $37.9billion; this figure comprised the external debt stock of the Federal Government, 36 state governments and the Federal Capital Territory.
“But total loans from China stands at $3.59billion, which is 9.47per cent of the total external debt. The loans did not require any national asset as collateral; they were largely concessional,” she said.
Oniha urged Nigerians to always endeavour to verify sensitive information from official sources before disseminating it.
She explained that before foreign loans were contracted, very sensitive steps were taken by multiple institutions of government to ensure that they were beneficial to the nation.
“Before any foreign loan is contracted, including the issuance of Eurobond, they are approved by the Federal Executive Council and thereafter, the National Assembly.
“An important and extremely critical step is that the loan agreements are approved by the Federal Ministry of Justice.
“An opinion is issued by the Attorney-General of the Federation and Minister of Justice before the agreements are signed.
“Several measures which operate seamlessly have been put in place to ensure that data on debt are available and that debt is serviced as at when due. Provisions are made explicitly for debt service in the annual budgets,” she said.
Oniha explained that the loans agreements provided a number of steps to take to resolve dispute when they arise.
“The first action is that the parties should resolve it within themselves and if that fails, they go to arbitration.
“In other words, a lender, in this case, China, would not just pounce on an asset at the first sign of a dispute, including defaults,” the she said.
Oniha explained that the DMO maintained proper records of debts, provided projections for debt service and processed the actual payments for debt service.
She pointed out that those functions were carried out in conjunction with the Office of the Accountant-General of the Federation (OAGF) and the Central Bank of Nigeria (CBN).
News
Nigeria, UK To Strengthen Bilateral Ties
The United Kingdom’s Foreign Secretary, David Lammy, arrived in Nigeria yesterday on his first official visit to Africa, underscoring a renewed emphasis on economic collaboration and growth-centered diplomacy between the UK and African nations.
His visit marks the beginning of a five-month consultation aimed at reshaping UK-Africa relations to prioritise African voices and ambitions across the continent.
This was contained in a statement signed and released by the Senior Press and Public Affairs Officer, British Deputy High Commission in Lagos, Ndidiamaka Eze, on Sunday.
In Nigeria, Lammy will advocate for deeper trade and investment ties, supporting what he described as a fresh, respectful approach that builds “long-term growth rather than short-term solutions.”
Lammy stressed Africa’s significant potential, noting that by 2050, it is set to account for a quarter of the world’s population.
His goal is to build relationships where “the UK and our friends and partners in Africa can grow together.”
“Africa has huge growth potential, with the continent on track to make up 25 per cent of the world’s population by 2050.
“Our new approach will deliver respectful partnerships that listen rather than tell, deliver long-term growth rather than short-term solutions, and build a freer, safer, more prosperous continent.
“Growth is the core mission of this government and will underpin our relationships in Nigeria and beyond. This will mean more jobs, more prosperity, and more opportunities for Brits and Africans alike,” the statement read.
The visit came as part of a broader strategy to elevate UK engagement in Africa, with Lammy scheduled to meet with President Bola Tinubu, Foreign Minister Yusuf Tuggar, and Lagos State Governor Babajide Sanwo-Olu.
His agenda includes furthering the UK-Nigeria Enhanced Trade and Investment Partnership, which was signed earlier this year to expand trade and market access between the two countries.
The partnership aimed to boost economic opportunities, fostering jobs, and prosperity for both British and Nigerian citizens.
As part of his commitment to supporting Nigeria’s economic reforms, Lammy will introduce a technical assistance package designed to support the Nigerian Ministry of Finance.
News
Reps To Probe $2bn Renewable Energy Investment
The House of Representatives Committee on Renewable Energy has invited stakeholders to an investigative hearing on the $2bn renewable energy grants and investments in Nigeria.
According to the Committee, the investment has not had a proportional impact on the nation’s energy security challenges.
In July 2024, President Bola Tinubu disclosed at the Africa Natural Resource and Energy Investment Summit in Nigeria that the nation had attracted over $2bn of investment in the sector in the past decade.
“Over the past decade, Nigeria has attracted over $2bn in investment in the renewable energy sector, making it a fast-growing part of the economy. Our commitment is to continue on this path and attract more private sector involvement in the renewable energy space, including manufacturing locally produced solar panels and batteries.
“By encouraging local production of equipment, we can reduce implementation costs, thereby lowering the threshold for electrification,” the President was quoted as saying.
Scheduled for Tuesday and Wednesday, 5 and 6 November 2024, the investigative hearing follows the mandate given to the Committee on 6 June 2024 to investigate Ministries, Departments, and Agencies involved in investments, procurement, and receipt of grants for renewable energy sector development.
In a statement issued on Sunday by the Committee Chairman, Victor Ogene, in Abuja, the probe will cover the period from 2015 to 2024.
The lawmaker said the House was shocked that “Despite the government attracting over $2bn in renewable energy investments in the past decade, as reported by the Rural Electrification Agency in 2023, there has been no noticeable improvement in the sector.
“The House of Representatives was alarmed that the dysfunctional electricity generation and supply system persists, contrary to the objectives behind government investments and grants aimed at developing the renewable energy sector. Hence, the resolution to probe these investments to determine the integrity of the procurement and execution processes.”
He noted that the probe is not a witch-hunt but an exercise to discourage shady dealings and promote transparency and objectivity in managing government or public resources.
The House’s resolutions followed the adoption of a motion titled “Need to Investigate Investments in the Renewable Energy Sector and Foreign Grants Received from 2015 Till Date,” sponsored by the lawmaker representing Oshodi-Isolo II Federal Constituency, Lagos State, Mr Okey-Joe Onuakalusi.
Leading the debate, the lawmaker said the parliament was aware that poor electricity generation, transmission, and distribution pose a significant threat to the nation’s industrial and technological development goals.
According to the lawmakers, successive governments since 2015 have made substantial investments and attracted multimillion-dollar foreign grants for Nigeria’s renewable energy subsector to create a viable and sustainable alternative energy supply.
They noted that in December 2023, the World Bank approved a $750m facility to boost renewable energy in Nigeria, aiming to provide over 17.5 million Nigerians with improved access to electricity through distributed renewable energy solutions.
They also noted that in 2020, the Federal Government launched a $200m renewable energy project, the ‘Nigeria Electrification Project,’ targeted at providing off-grid energy to over 500,000 people across 105,000 households in rural communities, funded by the African Development Bank.
Agencies invited to the public hearing include, but are not limited to, the Rural Electrification Agency, Nigerian National Petroleum Company Limited, Nigerian Content Development and Monitoring Board, Nigerian Sovereign Investment Authority, National Agency for Science and Engineering Infrastructure, and the Ministry of Petroleum Resources.
Also invited are the Country Representative of the European Union, Union Bank Plc (Compliance Department), Ministry of Science, Technology and Innovation, Federal Ministry of Power, Energy Commission of Nigeria, and Federal Ministry of Finance.
Other invited entities include the Niger Delta Power Holding Company, Federal Ministry of Marine and Blue Economy, Federal Ministry of Environment and Ecological Management, Federal Ministry of Petroleum (Gas Resources), Niger Delta Development Commission, United States Agency for International Development, Federal Ministry of Budget and Economic Planning, Federal Ministry of Agriculture and Food Security, Accountant General of the Federation, and Renewable Energy and Energy Efficiency Associations, among others.
News
Rosicrucians Prioritise Societal Dev
Rosicrucian Order, English Grand Lodge for West Africa, has urged Rosicrucians all over the world to contribute their quota towards the political and economic development of their countries.
The Order, which gave the task at the AMORC Convention, Port Harcourt 2024, also called on them to remain exemplary in their conducts.
It charged them to radiate love wherever they find themselves as the theme of the convention was “Universal Love.”
Declaring the convention open, the Imperator and President Supreme Grand Lodge (AMORC), Frater Claudio Mazzucco, urged members to ensure a better society for present and future generations.
He also described the convention as historic, and charged them to continue to radiate love to all humanity.
Meanwhile in his message, the Grand Master-designate, Eugenius Idiodi, urged the delegates to reflect on the theme of the convention.
“As we come together under the guiding theme of ‘universal love’ let us pause for a moment to reflect on the profound significance of this gathering and the journey that has brought us to this point”.
Idiodi also described members of the Order as “seeds of various kinds sown into the soil, each with the potentials to bloom into something unique and beautiful”.
“Yet no matter their individual forms, all these seeds share common nurturing light of the sun, the sustaining nourishment of the Earth and the gentle touch of water”, he added.
Grand Master-designate said each member of the Order is like a seed which has the potentials to blossom into its highest level.
In his words, “And just as the seeds in the garden depend on the forces of nature, we too require the nourishing power of universal love to flourish, not as individuals but as a global community bound by the sacred principles of the Rosicrucian tradition”.
Idiodi described the convention as a symbol of collective journey, stressing that members are on a journey towards deeper understanding, compassion and enlightenment.
The Chairman of Local Organising Committee, Edwin I. Obani, said the convention would mark the golden jubilee of the English West Africa Lodge and the installation of the Grand Master-designate, Frater Eugenius Idiodi.
Obani said the event would afford members from the different countries in West Africa to rekindle the love of universal love.
Later at a press conference, members of the Order, including the Imperator and President Supreme Grand Lodge, Claudio Mazzucco, Frater Kenneth Idiodi, Eugenius Idiodi, Lucy Crawford Sandison and Olabimpe Giwa, said love remains the only antidote to solving all societal problems.
They urged members of the society to show love not only to fellow humans but also to mother earth.
The convention marks the Golden Jubilee of the West African Lodge.
By: John Bibor
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