Connect with us

Business

Nigeria’s Debt Service To Revenue Ratio Rises To 48%

Published

on

The revision of the 2020 revenue framework has raised the Federal Government’s debt service to revenue ratio from the initial 29 per cent to 48 per cent.
The Executive last Wednesday sent a revised 2020 budget proposal to the National Assembly following a drop in crude oil prices caused by the impact of the coronavirus pandemic.
The Federal Government had in the budget proposal revised downward the revenue projection for the 2020 fiscal period by N3.3tn from the initial approved amount of N8.41tn to N5.08tn.
The reduction in revenue projection was due to the impact of the coronavirus pandemic.
The pandemic has so far led to unprecedented drop in global crude oil prices.
Based on the revenue parameters upon which the revised proposal was made, the Federal Government reduced the oil price benchmark from $57 per barrel to $30 per barrel.
Similarly, the oil production volume was cut from the initial 2.18 million barrels per day to 1.7 million barrels per day.
Before the revision, the Federal Government had projected to generate about N8.42tn revenue to fund the budget, while debt service was estimated to gulp about N2.45tn
This implies that 29 per cent of the revenue of government in the 2020 fiscal year would have been spent to service debt obligations.
However, following the revision in the revenue framework which resulted in a reduction of projected revenue to N5.08tn, with debt service unchanged, the gap in revenue to debt service ratio has now been widened to 48 per cent.
Speaking on the budget cut, a former Director-General, West African Institute of Financial and Economic Management, Prof Akpan Ekpo, said that the N2.45tn allocated for debt service should be renegotiated.
He said if the debt service obligation was renegotiated, it would free up funds that could be channelled for critical infrastructure projects such as power, rail and roads.
Ekpo added that sectors such as education and health should be given priority in the current fiscal period.
He said: “It’s a drastic cut but the priority should be power, rail and roads in terms of hard infrastructure. The soft infrastructure for human development should be education and health.
“Cost of governance is too high and this should be reduced while the excess channelled to infrastructure.”
“The budget has a huge amount allocated for debt servicing, this could be renegotiated and whatever that can be saved from there could be channelled for capital projects.”
A former Director-General, Abuja Chamber of Commerce and Industry, Chijioke Ekechukwu, said that the cut in the budget was expected due to the continuous drop in crude oil price.
He said expenditures as such security votes, constituency projects, unnecessary allowances and travels that would increase the cost of governance should be dropped.
Ekechukwu said, “It was expected that the Federal Government would cut down the budget in line with oil price realities.
“The cut should concentrate on expenditure that will not contribute to increase in standard of living and quality of life.”

Continue Reading

Business

NPA Assures On Staff Welfare 

Published

on

The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
Continue Reading

Business

ANLCA Chieftain Emerges FELCBA’s VP

Published

on

National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
Continue Reading

Business

NSC, Police Boost Partnership On Port Enforcement 

Published

on

In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
Continue Reading

Trending