Featured
FG Exceeds Loan Target By N1.12trn, Borrows N5.3trn
The Federal Government exceeded its borrowing by N1.15trillion for the period between January and August, 2022.
A copy of the public presentation of the 2023 proposed budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government planned to borrow N6.10trillion in 2022.
A breakdown shows that the Federal Government planned to get N3.53trillion from domestic creditors and N2.57trillion from foreign creditors.
According to the document, the Federal Government estimated that it would borrow N4.07trillion between January and August, 2022.
However, the Federal Government accumulated N5.33trillion debt within the period under review, which is N1.15trillion higher than the expected N4.07trillion planned debt.
A further breakdown showed that the Federal Government borrowed N4.82trillion from domestic creditors and N510.21billion from foreign creditors.
The debt from domestic creditors includes the Federal Government’s borrowing from the Central Bank of Nigeria through the Ways and Means Advances.
Ways and Means’ Advances are loan facilities through which the CBN finances the shortfalls in the government’s budget.
The Federal Government recently borrowed a total of N4.61trillion from the Central Bank of Nigeria through Ways and Means Advances between January and August, 2022.
This means that majority of the Federal Government’s domestic debt came from its debt to the CBN.
The CBN said on its website that the Federal Government’s borrowing from it through the Ways and Means Advances could have adverse effects on the bank’s monetary policy to the detriment of domestic prices and exchange rates.
“The direct consequence of central banks’ financing of deficits are distortions or surges in monetary base leading to adverse effects on domestic prices and exchange rates i.e. macroeconomic instability because of excess liquidity that has been injected into the economy,” it said.
The World Bank had, last November, warned the Nigerian government against financing deficits by borrowing from the CBN through the Ways and Means Advances, saying this put fiscal pressures on the country’s expenditures.
Despite warnings from experts and organisations, the Federal Government has kept borrowing from the CBN to fund budget deficits.
Also, the N22.07trillion owed the apex bank by the Federal Government is not part of the country’s total public debt stock, which stood at N42.84trillion as of June 2022, according to the Debt Management Office.
The country’s debt rose by N30.72trillion between July, 2015 and June, 2022, according to data released by the DMO.
According to the DMO statistics, Nigeria’s total debt as of June 30, 2015, stood at N12.12trillion.
By June 30, 2022, the figure had risen to N42.84trillion, which showed an increase of 253.47per cent.
Despite the high increase in debt over the years, the government still plans to borrow N8.4trillion in 2023.
Experts have kicked against the Federal Government’s proclivity for debt, which they have described as unsustainable.
An Abuja-based policy think tank, Agora Policy, said Nigeria’s debt was unsustainable and put the country in a perilous situation due to the high cost of debt servicing.
The group advised the government to deepen and diversify sources of revenue, re-calibrate expenditure to spend smartly, and invest efficiently.
A former President of the National Accountants of Nigeria, Dr Sam Nzekwe, agreed that Nigeria’s debt was unsustainable.
He said, “The debt is huge. If you look at the budget, you will see that a huge sum of money is used to service debts. This is just the debt service charge. We are yet to talk about the principal.”
He also said that instead of focusing on the debt to GDP ratio, the focus should be on debt service to revenue ratio.
He further noted that the country had a revenue problem.
A development economist, Dr AliyuIlias, criticised the government for its constant reliance on borrowing, which was not healthy for the economy.
He further urged the government to seek better ways of generating revenue rather than persistently borrowing.
However, the finance minister, when she appeared before the House of Representatives Committee on Finance, last week, explained that the over-borrowing was a deliberate plan to ensure that money was released early for capital projects.
She said, “We are borrowing faster than what we had prorated. It was a conscious decision to make sure we have funds early enough to release for the implementation of capital projects.”
Meanwhile, the amount budgeted for recurrent expenditures has increased from N2.61trillion spent in 2015 to N8.27trillion in the proposed 2023 budget, according to data from the Budget Office of the Federation.
This shows an increase of N5.66trillion or 216.86per cent in six years, fuelling concerns over the rising cost of government overheads amid declining revenue and weakening economy.
Analysis revealed that recurrent expenditure recorded significant increases each year during the period under the review.
The former President, Dr Goodluck Jonathan, approved a N4.49trillion budget for 2015, which included a N2.61trillion recurrent expenditure.
Capital expenditure was N557billion, while money budgeted for debt service was N953.62billion.
There was a fiscal deficit of N1.08trillion.
The recurrent expenditure rose slightly by 1.53per cent or N40billion to N2.65trillion in 2016, out of a total expenditure of N6.06trillion.
Capital expenditure was N1.59trillion, while money budgeted for debt service was N1.48trillion.
There was a fiscal deficit of N2.2trillion.
In 2017, it rose to N2.99trillion, representing an increase of N340billion or 12.83per cent.
Out of a total expenditure of N7.44trillion, capital expenditure was N2.18trillion, while money budgeted for debt service was N1.66trillion.
There was a fiscal deficit of N2.36trillion.
In 2018, recurrent expenditure rose by N520billion or 17.39per cent, raising the total recurrent expenditure to N3.51trillion.
Out of a total expenditure of N9.12trillion, capital expenditure was N2.87trillion, while money budgeted for debt service was N2.01trillion.
There was a fiscal deficit of N1.95trillion.
The following year, the recurrent expenditure increased by N540billion or 15.38per cent to N4.05trillion.
Out of a total expenditure of N8.91trillion, capital expenditure was N2.09trillion, while money budgeted for debt service was N2.25trillion.
There was a fiscal deficit of N1.95trillion.
The recurrent expenditure was N4.84trillion in 2020, out of a total expenditure of N10.59trillion.
This shows an increase of N790billion or 19.51per cent.
Capital expenditure was N2.47trillion, while money budgeted for debt service was N2.7trillion.
There was a fiscal deficit of N2.28trillion.
However, the increase in 2020 may be attributed to the inclusion of the new national minimum wage in the budget.
In the 2022 budget, the recurrent expenditure hit N6.91trillion, representing an increase of N1.27trillion or 22.52per cent.
Out of a total expenditure of N17.13trillion, capital expenditure was N5.47trillion, while money budgeted for debt service was N3.88trillion.
There was a fiscal deficit of N6.26trillion.
President MuhammaduBuhari (rtd), recently presented the proposed 2023 budget to the National Assembly.
The proposed 2023 budget shows that the proposed recurrent expenditure is N8.27trillion, which is an increase of N19.68per cent or 1.36trillion from the previous year.
Out of a total expenditure of N20.01trillion, capital expenditure was N4.93trillion, while money budgeted for debt service was N6.65trillion.
There was a fiscal deficit of N10.7trillion.
The 2023 recurrent expenditure represents 41.33per cent of the nation’s entire budget and is the single largest element of the budget.
It is also N3.78billion more than the total expenditure for 2015.
From the 2023 recurrent (non-debt) expenditures, personnel costs gulped N4.08trillion; pensions, gratuities and retirees’ benefits took N721.46billion, while overheads cost N443.28billion.
Within the years of the Buhari’s regime, including 2015, a total of N38.82trillion has been budgeted for recurrent expenditures.
This total exceeds the N20.01trillion total budget proposed for the 2023 fiscal year.
Experts have lamented the constant increase in the nation’s cost of governance.
In May 2021, the Federal Government, through the Minister of Finance, Zainab Ahmed, had said it was working to reduce the high cost of governance by doing away with unnecessary expenditures, which might include salary cuts for workers.
However, the increase in recurrent expenditures in the 2023 budget suggests the government may have backpedalled on the plan.
Economic and financial experts have expressed concerns over what they described as significant increases in government expenditure, saying they were worrisome because a large chunk of government revenue had been allocated to recurrent expenditure instead of capital projects that drove economic growth.
The Registrar and Chief Executive Officer, National Institute of Credit Administration, Prof Chris Onalo, has stressed the need for the government to streamline its expenditure in order to manage its debt profile.
He said, “Everybody is concerned about the rising debt profile. And the reason it is going in that direction is because first, our recurrent expenditure is too big. When you borrow money, you don’t borrow to pay salaries. You don’t borrow to finance recurrent expenditure. That is where we have the biggest problem.
“The size of our civil service needs to be trimmed down. Some of the ministries have to be allowed to go. And then, we need a very serious audit of the Federal Government’s workforce. And until we do that, we will not be able to run the civil service system transparently. The government expenditure profile needs to be streamlined very seriously.”
An Associate Professor of Economics at Pan Atlantic University, Dr OlalekanAworinde, recently linked the development to rising salaries and the upcoming election.
Featured
Arson: Those Behind It’ll Account For Atrocities -Fubara …Swears In Bipi, Three Others As Commissioners
Rivers State Governor, Sir Siminalayi Fubara, has said that his administration will not fold its hands and watch sponsored political thugs run berserk, committing arson in the State.
The Governor, therefore, assured that, working with the Nigerian Police Force and the Directorate of State Services (DSS), measures will be taken to unravel those behind the recent burning of council Secretariats at Ikwerre, Emohua and Eleme Local Government areas, with a view to making them account for their atrocities.
Governor Fubara gave the assurance while swearing in four new commissioners into the Rivers State Executive Council at Government House in Port Harcourt yestersday.
Those sworn in are Hon. Israel Lebura Ngbuelu, PhD; Hon. Evans Bapakaye Bipi; Barrister Otamiri John Ngubo; and Hon. Barrister Benibo Anabraba.
Governor Fubara recalled mentioning when he sworn-in newly elected Local Government Councils’ Chairmen on 6th October, 2024, that there was intelligence on planned mayhem by misguided persons, who had threatened to prevent the elected officers from resuming duties.
True to it, Governor Fubara said, the sponsored political thugs hatched their plans, and burnt valued buildings at some council secretariats.
He said, “I said it before it happened. I knew because they were unhappy, they would go extra miles to create disaffection in the minds and hearts of the good people of Rivers State.
“We want to also let the people know that what has happened (arson) after the election, we are not going to allow it to go uninvestigated.
“A similar event had happened in this manner before, and after some weeks, some of our supporters were declared wanted in order to turn the story around.
“But this time around, I strongly believe, with the support and cooperation of the Nigerian Police and the Directorate of State Services (DSS), we will unravel those behind the assault and make sure that they account for their atrocities.”
Governor Fubara expressed appreciation for the show of patience and calmness by majority of Rivers people despite the fact that they are angry with the reckless acts of the misguided miscreants.
The Governor said he has continued to show leadership, provided the climate that has engendered productive endeavours, and will not mislead those he is leading.
“As your leader; the one steering the ship, I assure you I will not mislead anyone of you. I still stand on the path of peace. We have cases of arson in some local government areas.
“But, I appreciate your calmness. I have always maintained that we are going to be the greatest losers, if we meet them force-for-force. We need to go with peace.
“So, I will encourage everyone of you not to follow them with violence. We are carrying a basket of precious eggs in our hands. So, we need to follow them with carefulness and wisdom.”
Governor Fubara reiterated what he said the previous day on what should matter most for Rivers State, which is a firm support to ensure that the progress of Nigeria is sustained.
He said, if oil theft is not checked, the country’s economy will be badly impacted, and there will not be funds to address critical issues.
“We are in a situation where the fund that is being generated from oil production is not sufficient to tackle the challenges of Nigeria, and every hand has to be on deck to make sure that there is increase in production.
“Our focus here, not minding the distractions, will be how to provide support. You have to work with us to make sure that we curb this issue of oil theft and pipeline vandalisation.
“This is the only way that the allowances (revenue) will increase and more will also come to our State, and more progress will also be achieved in this State.”
Governor Fubara explained that his administration is doing a lot for the good people of the State, that are not being seen because of the political drama that takes their attention away.
He, however, said that his administration is working out modalities, and will soon choose a day, which could probably be before the end of October, 2024, to showcase a few projects and services that have positively impacted lives in the State.
Governor Fubara congratulated the newly sworn-in commissioners for making it into the Rivers State Executive Council.
He explained that more persons whose loyalty are for Rivers people and the administration needed to be admitted into the Rivers State Executive Council to help drive the policy of government because they will not resign their appointment.
Governor Fubara said: “We want to be sure, at this point, who we are adding into the Council, so that we will not wake up one morning and see resignation letter. So, we are taking our time.
“And usually, after a normal political period, there used to be what we call balancing. So, I can also say that the new Commissioners that are coming in are coming from their zones to also balance the political equation.”
Governor Fubara charged them to be dedicated, forthright, diligent and productive while rendering quality services to the State.
The Governor said he believed in their capacity to deliver because of their exposure to the workings of government, and expressed the hope that they will contribute positively to the success of the administration.
He said, “So, let me thank everyone of you. Let me also use this opportunity to thank the good people of Rivers State for their support, and to assure them that we will continue to defend, protect the interest of Rivers people.
“I want to thank everyone of you for your support, more especially before, during and after the elections. I appreciate your doggedness, your belief in our course to salvage this State, to protect the integrity of this State,” he added.
Head of Civil Service of the Federation (HoCSF), Mrs Didi Walson-Jack, has sought media support to fast-track the implementation of the ongoing reforms in the civil service sector.
Walson-Jack made the request during a cocktail organised by her office for media executives from different organisations in Abuja.
The event, according to her, aimed at interacting with the media men one-on-one, appreciate them and implore them to continue to strengthen the bond with the office.
“I want to start by thanking each and everyone of you for honouring this invitation. I want to say that we purposely designed this grail cocktail so that we can have one-on-one interactions.
“Let me also go ahead to thank you for all the supports you have given to the Office of the Head of the Civil Service of the Federation (HCSF) in the years past I know that the Fourth Estate of the realm has always supported this office.
“I will also go ahead to thank you for your support, especially at my announcement as the HoCSF and that support has continued, up till date.
“We, therefore, thought it fit that we should organise this event just to interact with you to strengthen the bond that this office has with the media, “ she said.
The HoCSF recalled that her office had continued with programmes she met on ground upon assumption of office, especially the ongoing reforms on Federal Civil Service Strategy and Implementation Plan (FCSSIP- 2022 to 2025).
She, therefore, appealed to the media for continuous reportage on the initiative, so as to give it the necessary publicity for proper dissemination to the citizens.
“You will recall that the office has the Federal Civil Service Strategy and Implementation Plan (FCSSIP- 2022 to 2025) and that is the plan that we are still driving.
“We want to request that you collaborate more with us, we are asking that the friendship, the partnership go beyond what it is now to ensure that the reforms which this office is driving get the full publicity it requires,” she said.
Walson-Jack used the medium to announce the preparation to re-introduce the civil service national anthem officially for the entire civil servants to recite at every national programme.
“The anthem has been re-introduced to drive the reforms and it’s expected that the anthem will be sung by all federal civil/public servants and indeed Nigerians.
“And it will be an anthem that will encourage every public servants to be efficient, productive, incorruptible and citizen-centred, “ she added.
Participants at the event congratulated Mrs Walson-Jack for her uplifting to the position of the HoCSF and pledged to continue in the relationship.
In a response, Mr Ephraims Sheyin, Editor-in-Chief, News Agency of Nigeria (NAN), pledged the agency’s readiness to give the HoCSF the needed support.
According to him, supporting government policies has always been NAN’ priority as government’s owned media organisation.
“You can take it for granted that we are going to give the Office total support. It is part of our own mandates to support Federal Government policies, so we are going to do that fully for the head of service.
“As she said, she has her policies which are in tandem with the federal government policies, she is asking for the support in implementation of the Federal Government policies.
“She has very lofty ideas, she has lofty things that she believes that we should do. Our job is to make sure that whatever government wants to do, we have to support such policies, “ he said.
Speaking in the same vein, Mrs Halima Musa, Director News, NTA, assured her office’s partnership with the Head of service towards ensuring communicating the needed values on excellence, incorruptibility and new culture of efficiency to the public.
Featured
LG Polls: Rogue Policemen Break RSIEC Gate, Strong Room To Steal Electoral Materials …Fubara Foils Attempt To Cart Away Materials
Rivers State Governor, Sir Siminalayi Fubara has foiled an attempt by the Nigerian Police, led by the Deputy Commissioner of Police (Operations), to take over the Rivers State Independent Electoral Commission (RSIEC) at 1am on Friday, 4th October, 2024.
The rogue policemen were said to have attempted to scale through the gates and strong room of the Commission to cart away sensitive Electoral materials meant for the conduct of Saturday’s local government election in the State.
The deployment was said to have been ordered by the Inspector-General of Police.
However, the evil plots of the rogue policemen and DC Ops were botched when vigilant security officials alerted principal officers of the Commission and relevant government authorities, who immediately informed the Governor of the development.
The Governor immediately led a team of government officials, lawmakers from the National Assembly and State House of Assembly, top political stakeholders, and other leaders to storm the facility.
Addressing newsmen in front of RSIEC Office on Aba Road in Port Harcourt, after an encounter with the rogue policemen, the State Governor, Sir Siminalayi Fubara condemned the conduct of the policemen on illegal duty, saying that the IGP was taking his friendship with some Abuja-based politicians too far.
He restated the position that the attempt to surreptitiously withdraw policemen already deployed to protect the facility, and replace them with a detachment from a neighbouring State was unacceptable.
He reminded the IGP that local government election was the internal affairs of states, and advised him to allow the federation unit conduct its affairs without interference.
At present, the Chief of Staff, the Speaker of the Rivers State House of Assembly, and State and National Assembly members, alongside other stakeholders, are manning the RSIEC office to ensure that the rogur policemen in two trucks and two Hilux vehicles do not return and that elections will go ahead as scheduled on Saturday.