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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.”
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Don’t Panic, We’ll Protect Rivers Interest -Fubara
Rivers State Governor, Sir Siminalayi Fubara, has told the people of the State not to panic and be rest assured of the determination of his administration to protect lives and property of residents while improving the collective aspirations of the people.
Fubara gave the assurance when he addressed members of the Family Support Group, who were on solidarity visit to Government House in Port Harcourt on Wednesday to declare their unalloyed support to his administration.
Family Support Group is an assemblage of well-meaning Rivers youths, men and women drawn from the three Senatorial Districts and 23 local government areas, with the core aim of protecting, promoting and defending the interests of Rivers State.
The governor, who was represented by the Head of Rivers State Civil Service, Dr. George Nwaeke, said that the government is for the youths, women, men and every well-meaning Nigerian who wish the State well.
He assured that his administration would not disappoint their expectations, but would deliver good governance and quality services across all sectors.
Fubara said it was gratifying to see ebullient youths showing undying interest in government, and were also willing to defend their votes, and see him completing his tenure without interruption.
The governor explained that so many development projects had been completed and opened for public use with many others like the Port Harcourt Ring Road still actively ongoing.
He specifically noted the readiness of the administration to flag off construction of phase two of the real Trans-Kalabari Road from Port Harcourt through Tombia to other communities; and the Elele-Egbeda-Omoku Road.
“The whole land of Rivers State stands in affirmation that we won the election fairly, and deserve to serve out our full tenure. There is not going to be anything that will cut short the popular mandate that you all gave to this Administration.
“Just about within weeks of assuming office, His Excellency, Sir Siminalayi Fubara, flagged-off the Port Harcourt Ring Road project that will transverse six local governments. It will be completed within 36 months, but I think it will be completed before the time, because the progress of work we have seen is beyond what we were thinking.
“The Trans-Kalabari Road, very soon, the official main Trans-Kalabari Road will start, and will begin from Port Harcourt. That road, a lot of plans have been done, very soon, you will see contractors on site, and Rivers State will be opened.
“Just yesterday, you heard in the news also that the Governor has commenced the construction of the Elele-Egbeda-Omoku Road. That road was initially done with one lane, but now, he is going to dualise it. The Government has already awarded the contract”, he said.
Fubara emphasised that his administration is pro-youth and pro-human beings, and determined to maintain that level of empathy and inclusivity that offers succour to the people.
“I, therefore, want to thank you for the promise you have made, and I want you to remain unshakable. Keep your word of defending him at all times.
“When you hear anything outside, be bold, defend the Governor, and tell the people the things you know about him. Tell them what you know he has done to develop the State and the people”, he stated.
In his address, the President General of Family Support Group, Mr Henry Abraham, recalled that during the 2023 elections, they were encouraged to vote and defend their votes because the process was violence-free and credible.
“When we defend our votes, we will also defend the man we voted for. We are Family Support Group, Rivers State belongs to all of us. Rivers State is not a personal estate of one man, it’s for all Rivers people.
“Sir Siminalayi Fubara, stand firm. Family Support Group is with you. All the wards’ coordinators are with you. All the wards’ executives are with you. All the LGA coordinators are with you. All the officers of the National Executive Committee are with you. All our leaders are with you, and the PDP is with you,” he assured.
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11 GDI Coordinators Declare Support For Fubara
The support base for the Rivers State Governor, Sir Siminalayi Fubara, swelled up on Wednesday when 11 Ward Coordinators of the Grassroots Development Initiative (GDI), in Ahoada-East Local Government Area of the State pledged unalloyed support and loyalty to his administration.
Ahoada East, which is the local government area of the Chief of Staff, Government House, Dr Edison Ehie, has a total of 13 electoral wards.
The 11 GDI Coordinators, who were in Government House, Port Harcourt on Wednesday on solidarity visit, said that they have now realised that they had been deceived and misled in the past few months, and decided to retrace their steps, and join the mass of Rivers people to defend and protect their votes and mandate freely given to Governor Fubara.
The coordinators, who were received by the Chief of Staff, Dr Edison Ehie, pledged to mobilise all their supporters and associates to give the State Government the necessary support and encouragement to deliver good governance and sustainable development to Rivers people.
They said that having watched the actions and policy direction of the governor, they have come to the realisation that sitting on the fence while detractors undermine the government was not in the best interest of the State.
The coordinators, who were accompanied by the former LGA Coordinator of GDI, Hon. Christian Abu, and Ahoada East LGA Chairman of the Peoples Democratic Party, Dr. Handsome Ekelechi Agile, said that they were resolute in their decision to join millions of well-meaning Rivers people who had solidified their membership of the SIMplified Movement to protect and defend the governor in the face of unwarranted attacks and campaign of calumny.
They said that with their movement to the SIMplified Family, the GDI structure in Ahoada East has completely collapsed.
They warned that anybody fighting the governor and the Chief of Staff would incur the wrath of the land.
In his remarks, Hon. Ehie assured the coordinators of the State government’s commitment to the wellbeing of all Rivers people and the consolidation of the gains of the infrastructure revolution of the administration.
He said that the Fubara-led government was operating an open door policy and running an inclusive administration, assuring that every Rivers man and woman will be touched positively by the actions, policies, and programmes of the government.
The GDI Coordinators included Chinwe Okorji representing Ward 1; Henry Uhor for Ward 2; Hon. Muzan Otuza of Ward 3; Hon. Elvis Ishikaku representing Ward 4; and Hon. Johnson Monday of Ward 5.
Others are Mr. Evidence Adi for Ward 6; Emmanuel Ochu of Ward 7; Hon. Fidelis Ikebuluwa representing Ward 8; Martins Odoi of Ward 9; Hon. Mackson Ekpeye representing Ward 10; Hon. Ambrose Ile for Ward 12.
With this development, the leadership of GDI at the Ward and LG levels have now dumped the group to join the Governor in efforts to transform the State.
News
Fubara Recommits To Human Capacity Building In Rivers
Rivers State Governor, Sir Siminalayi Fubara, has expressed the determination of his administration to build and strengthen the capacity of workers in the State’s Civil Service.
The governor said this during a meeting held behind closed doors in Government House, Port Harcourt, with the national leadership of Nigerian Institute of Management (NIM) Chartered, yesterday.
After the meeting, leader of the delegation and National President of NIM, Dr. Christiana Atako, told newsmen that Governor Fubara, a fellow of the Institute and astute manager, excited them with his plans on human capital development and other development initiatives.
Dr. Atako, who is also the Chairman of Council of NIM said, “In fact, he was talking so much about the civil service. I have told you that one of our strengths is to develop capacity of the workforce, and we told him that we are interested in the civil service of this State.
“We are interested in building capacity of the workforce because we believe that if you have the right workforce, you’ll be able to have successful system. And if you have a successful system, leadership will be very easy.”
She emphasised that, “And when we told him, he bought the idea. He said he was happy about that. He wants a situation where, apart from the infrastructure that he was putting in place, he also wants to build the capacity of the people.”
Atako stated that as an Institute, they were impressed with the giant strides of the leadership of the governor, the many infrastructural projects, both ongoing and completed, including the welfare packages for civil servants, particularly the Christmas bonus of N100, 000.00.
She pointed out the distinguishing attributes of a great and good leader, which include exhibiting empathy and motivating the workers to become more productive, which she said, were evident in the leadership shown by Governor Fubara.
Atako said they also informed the governor of their forthcoming annual national conference slated to hold in Port Harcourt, which is always used to discuss issues that are of interest to the growth and development of the country.
Those in the delegation were Registrar/Chief Executive of NIM, Mrs Taiwo Olusesi; former National Vice President, Dame Christie Toby; Council Members, Engr. Beniah Ojum; Prof. Sylva Opuala-Charles; Zonal Chairman and Chairman LOC NIM ANMC, Pastor Eyo Okpo-Ene; former National Treasurer, Chief Grant Orugbani; and Eze Ekpeye Logbo III, His Imperial Majesty, Kelvin N. Anugwo.
Others are former Deputy Speaker, Rivers State House of Assembly and Member LOC NIM ANMC, Rt. Hon. Marshall Stanley-Uwom; AGM, Hotel Presidential, Mr. Rex Yakpogoro; Member LOC NIM ANMC, Engr. Eze Egwurugwu; Sir Mike Elechi; Member LOC NIM ANMC, Dr. Kelechi Belinda Udeogu; Secretary, South South Zone and Secretary LOC NIM ANMC, Mr. Christian U. Abu; Emeritus Professor Simeon Chituru Achinehu.
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