News
Debt Deficit: DMO, Centre Task Incoming Administration On Revenue Generation
Debt Management Office (DMO) and African Centre for Leadership, Strategy and Development (Centre LSD) have tasked the incoming government on revenue generation to tackle Nigeria’s debt deficit.
The stakeholders made the call on Wednesday, in Abuja at a one-Day Leadership and Development Policy Dialogue Series (LDPDS) with the theme “Nigerian Debt Sustainability Threat: Issues, implications, Lessons and Solutions for the Next Administration”
Director, Portfolio Management Department of the DMO, Mr Dele Afolabi, said that Nigeria had to be deliberate with revenue generation to harness a balanced economy because currently, the revenue did not match the high debt servicing burden of the country.
According to Afolabi, this is imperative since revenue pays debt because the more revenue you have ,the less you have to borrow going forward .
He said although Nigeria had the highest Gross Domestic Product(GDP) in Africa but its government generated revenue to GDP ratio is lower than that of most African countries and this can be tackled through taxes among others.
“The people are not paying the right taxes ,we don’t have the right culture of taxation and revenue for government. So, I think ,looking at the next government ,the key focus should be on how to grow government revenue.
“Most people really don’t pay taxes ,apart from people that receive salaries in the formal sector a lot of people are either not paying tax at all or not paying as they should ;so there a lot of leakages in terms of government revenue.
“If we have the highest GDP in Africa, then we should also have the highest revenue but that is not the situation.’’
Afolabi, therefore, recommended that government should reduce its over dependence on crude oil and harness other resources and solid minerals and block all leakages and grow revenue to reduce accumulating debt.
He also called for stringent action against tax defaulters adding that in other climes ,evading tax payment was criminal and people go to jail for it.
The Executive Director of Centre LSD, Mr Monday Osasah, said that the dialogue was imperative following the Federal Government outcry that Nigeria’s debt sustainability had become threatened following the recent rise in its revenue shortfalls.
Osasah said that according to the Minister of Finance, Nigeria is expected to spend 60 per cent of its total revenue on debt servicing in 2023 and this portended a grave threat to the economy.
“According to Nigerian Bureau of Statistics (NBS) in its Nigerian domestic and foreign debt Q3 2022.
“Nigeria’s debt stock which includes external and domestic debt rose from N42.84trillion or 103.31 billion dollars in the second quarter of the 2022 to N44.06 trillion or 101.91 billion dollars in the third quarter same year.
“The debt figure comprised the debt stock of the Federal Government, the 36 states and FCT.
“The burgeoning trend of our debt is worrisome especially when it is now being used for debt servicing rather than for growing and developing our infrastructure .’’
Osasah said that Nigeria’s debt service-to-revenue ratio is put at 83 per cent of quarter 3,2022 and the ratio had been on the rise as Nigeria faced a dwindling government revenue while government expenditures have increased.
He said that considering the grim reality, the need for begin to think and commence advocacy for budgetary reforms, fiscal prudence and revenue innovation for the next government was paramount.
He said without these, it would difficult for the incoming administration to rescue the country from the weakening debt sustainability trend.
Prof. Isah Mohammed ,a Professor of Transport and Financial Economics ,Department of Economics ,University of Abuja, a key speaker at the event, said public debt was a crucial tool for government to finance public spending .
Mohammed said that this was, especially when it is challenging to increase taxes and cut spending and the procedure has resulted in government having enormous unpaid debts overtime.
“Another way to accelerate economic growth is contracting reasonable debt to pay for infrastructure and public projects.
“In order to encourage long-term development ,the government should also ensure that borrowing is done on conditions that are consistent with entrenching debt sustainability and that borrowed funds are wisely invested in the economy’s value added sectors.’’
Mohammed said that Nigeria should accomplish this to resolve its debt problems, improve its credit standing and achieve sustainable growth.
He also called for effective tax administration to tackle revenue challenges and the need to ensure compliance to remittances devoid of all form of evasion in the system.
News
NASS commends FIRS for surpassing 2024 target, sets 2025 goal
The National Assembly has lauded the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, for exceeding the 2024 revenue collection target of N19.4 trillion.
FIRS generated N21.6 trillion, surpassing the target by N2.2 trillion.
The commendation came during a meeting on Wednesday in Abuja, where the FIRS chairman appeared before the joint committee on Finance to defend the service’s revenue projections for 2025.
The committee proposed a N25 trillion revenue generation target for FIRS in the coming fiscal year.
Deputy Chairman of the House of Representatives Committee on Finance, Saidu Abdullahi, was the first to commend Adedeji’s performance, calling it “unprecedented” and “worthy of commendation.”
“The feat achieved by FIRS in revenue collection for 2024 was unprecedented and truly commendable.
“Surpassing the target set for the agency in the 2024 Appropriation Act, from N19.4 trillion to N21.6 trillion, is both encouraging and impressive,” he said.
He encouraged the FIRS to study the tax collection methods of South Africa, which generated higher tax revenue, and to focus on expanding the taxable base to include more informal sector workers.
Sen. Joel Onowakpo emphasised that tax collection was a global norm, and advised the committee to raise FIRS’s projected 2025 revenue target to N30 trillion.
Similarly, Sen. Binos Yeroe lauded Adedeji’s innovative approach in surpassing the 2024 target.
“Your performance in 2024 was highly commendable, and I hope you continue to maintain this level of success,” he said.
Rep. Etanabene Benedict suggested aiming for N60 trillion in 2025 to avoid borrowing.
Committee chairmen also supported the proposed N25 trillion revenue goal for 2025; with Sen. Sani Musa stating that it was both “achievable and surpassable.”
News
Abbas, Kalu express grief over Deputy Chief Whip, Onanuga’s death
Speaker of House of Representatives, Tajudeen Abbas, has expressed deep grief over the demise of the Deputy Chief Whip of the house, Rep. Adewunmi Onanuga.
In a statement on yesterday, Abbas described the late lawmaker as a strong pillar who would be sorely missed in the house.
The Tide source reports that Onanuga, who died on Wednesday, represented Ikenne/Sagamu/Remo North Federal Constituency and was serving her second term in the house.
Abbas said that he had led members of the house in support and prayers for Onanuga during her health challenge and was hopeful of her recovery, saying that her eventual death was painful.
He recalled Onanuga’s campaigns for gender equality, women empowerment and inclusion in politics and governance, as Chairman, House Committee on Women Affairs and Social Welfare in the Ninth House and as a principal officer in the 10th House.
Abbas also recalled how the late lawmaker, as the only female member in the leadership of the house, inspired and rallied female legislators for the greater good of the chamber and the country in general.
“Onanuga was a brilliant woman, experienced politician, resourceful lawmaker and a dependable ally in the legislative business,” he said.
Abbas commiserated with the Onanuga family and her constituents, the people and the government of Ogun as well as the All Progressives Congress (APC) on the demise of the legislator.
Also, the Deputy Speaker, House of Representatives, Rep. Benjamin Kalu, expressed sadness over Onanuga’s death.
Kalu described the deceased as a shining example of dedication, compassion and selfless lawmaker whose service to her constituents and the nation was outstanding.
He acknowledged her support for the Peace In South East Project (PISE-P), which demonstrated her passion for defeating insecurity in Nigeria.
“Onanuga was a dedicated and committed lawmaker, renowned for her unwavering commitment to peace.
“Her passion for promoting harmony and understanding was truly commendable. Beyond her legislative accomplishments, Onanuga’s compassion, humility and simplicity inspired countless individuals.
“Her warm and infectious smile, coupled with her empathetic nature, endeared her to everyone she met, making her a beloved figure in the lives of many,” he said.
Kalu said that Onanuga would be remembered for her commitment to the cause of women’s empowerment and political inclusion as well as her relentless efforts toward ensuring that the gender bills were passed.
The deputy speaker extended his heartfelt condolences to the Onanuga family, her colleagues and constituents, saying that she would be greatly missed.
He prayed for the peaceful repose of the soul of the late lawmaker and the fortitude to bear the loss.
News
Rotary Foundation commits $300m to polio eradication in Nigeria
The Rotary International Foundation says it has committed over 300 million dollars to polio eradication in Nigeria.
Its Chairman, Board of Trustees, Mark Maloney, disclosed this on Thursday while conducting polio immunisation at a Primary Healthcare Centre in Jahi, Abuja.
According to him, polio eradication is Rotary’s number one priority worldwide and it is focused on eradicating the variant type two poliovirus cases discovered in 2024.
Maloney said efforts towards eradicating the polio variant should be intensified, adding that recording success in that area would be beneficial to the Nigerian government.
He also commended the Federal Government’s polio accountability programme as well as all Rotarians for their efforts in putting an end to the disease.
“The Nigerian government is facing a significant challenge with the continuation of variant polio type two, and so far, we have seen about 92 cases through the cases that have been evaluated in 2024.
“We encourage the government to redouble their efforts to put the focus on this polio eradication as they did with the Wild Polio Virus (WPV), and they were successful.”
On new donations to Nigeria, Maloney said that Rotary would allocate some funds in 2025, but the amount was yet to be determined.
“There are 50 million dollars that I expect will be allocated, but a lot of it has to go to Pakistan and Afghanistan, where WPV is still endemic.
“Though, I think there will be a significant tranche of funds, maybe not tens of millions, but a significant amount of money will be allocated to Nigeria,” he added.
The chairman noted that the organisation has allocated two million dollars to its Programme of Scale project aimed at reducing the rate of birth-related mortality in Nigeria.
“What we are looking to do is to decrease the rate of mortality in births in this country, and it is operating now in several districts.
“One way that the mortality rate can be decreased is for more births to happen in a healthcare facility rather than at home.
“We have seen in the first year of the programme a significant increase in the percentages of births happening in medical facilities.
“One district had gone from 11 per cent happening in medical facilities to 33 per cent, which is a significant increase,” he added.
The Chairman of the organisation’s Nigeria National Polio Plus Committee, Mr Joshua Hassan, said outbreak immunisation efforts are conducted locally in response to the vaccine-derived variant of polio.
Hassan said national immunisation days are planned twice a year for the entire country.
According to him, the organisation is focusing more of its efforts on Kano, Zamfara, Katsina, Kebbi, and Sokoto states.
Prof. Emmanuel Lufadeju, the National Coordinator of Together for Healthy Families in Nigeria, said that the Programme of Scale project was designed to reduce maternal mortality among women by 25 per cent.
Lufadeju said that this is done through community dialogue, home outreaches, medical outreaches, and capacity building.
“We are going to train a lot of people, including doctors and nurses.
“Then we are going to do something that is called a social, behavioural change, to change the attitude of people and make them deliver in the facility instead of delivering at home.”
He added that the two million dollar project, which began in 2024, is expected to end in 2025.
The Tide source reports that Maloney is in Nigeria for an official visit to embark on advocacy, carry out symbolic immunisation, visit the Programme of Scale project areas, and also visit President Bola Tinubu.
-
Editorial3 days ago
Opobo And The Proposed Higher Institution
-
Sports3 days ago
NPFL Fines Nasarawa United N3m, Deduct Three Points
-
Rivers1 day ago
Fubara Approves N50m For Widows Of Fallen Service Personnel
-
Niger Delta3 days ago
Yenagoa Becoming Modern City Under Our Stewardship – Diri
-
News3 days ago
Shun Third-Party Interference In Marriages, 85-Year-Old Engineer Urges Couples
-
Nation1 day ago
BPP Saves Nigeria N1.9trillion from Contracts Fraud – DG
-
Politics3 days ago
Good Governance: Clark Urges NGF Suspension
-
News3 days ago
NAFDAC Busts Fake Alcohol Factory In Lagos