Features
Nigeria And Debt Burden
Amidst conflicting claims that Nigeria’s external debt has bloated up again after the country’s exit from Paris Club, the House of Representatives summoned the Minister of Finance, Alhaji Mansur Mukhtar to appear before its Ad-hoc Committee on Foreign loans on 16th February, 2010 to clarify issues pertaining to Nigeria’s external debts.
Nigeria’s exit from the Paris Club debt in 2005/2006,dropped from what it used to be before the exit process commenced, the external debt profile then stood at about $35.94billion by the end of December, 2004.
Murhktar urged the House committee to disregard insinuation about the increase in the country’s debt asserting emphatically that the debt stock dropped dramatically and substantially after the country’s exit from Paris Club (in 2005/2006) He said, “By end -December 2006, the stock was a much lower.
Amount of USB 3.54 billion. The debt stock figure by end-December ,2007 was USD 3.65 billion, by end-December, 2008 it was USD 3.72, and by end-December, 2009, it was USD 3.97 billion.”
It is worthy to note that …. the constitution of the federal Republic of Nigeria did not specifically make provision on borrowing .However under the second schedule, section 4, item 7, of the exclusive legislative list, the National Assembly is conferred with the powers to make laws in respect of borrowing of money within or outside Nigeria. for the purpose of the federation or a state.
In pursuant to this power, the National Assembly has enacted the debt management Act, 2003 and the Fiscal Responsibility Act, 2007.
In particular, section 19 (1)and(2) of the DMO Act requires that the borrowing programme for every succeeding year be approved by the National Assembly . In compliance with this requirement, the borrowing programme for fiscal 2010 has been included as part of the 2010 appropriation bill.
The finance minister clarifies that state governments are not allowed to borrow directly from external source. And that a state government or its agency can obtain external loans only through the federal Government. (Fiscal Responsibility Act, Section 47 (3). In accessing external loans, a government or its agency has to comply with the relevant guidelines and requirements which derives from Responsibility Act and the DMO Act. These include: the national debt management framework, the external borrowing guidelines and the sub-national borrowing guidelines. External borrowing by the federal and state governments within the borrowing programme included in the budget are still subjected to these guidelines by the Debt Management Office under the authority of the minister of finance. In essence, there is effective control to ensure compliance with the provisions of the constitution and other external laws
In line with the current national borrowing guidelines, Nigeria’s external borrowing since the exit from the Paris Club and London Club debts has been limited to concessional sources. These credits, essentially from the International Dev-elopment Association (IDA) and African Development Fund (ADF) windows , of the World Bank and the ADS, respectively, have a 40-year repayment period including a 10 -year grace period. Murkhtar said Although several loans were considered, negotiated and processed between 2007 and 2009, only $1,831.60 billion became effective during the period. The total amount drawn down between 2007 and 2009 was $1,318.22 billion, which was made up of $880.89 million (disbursements on old loans contracted before 2007 ), and $437.33 million (disbursements on loans contracted between 2007 and 2009).
Part of the reason for the misunderstanding of Nigeria’s external debts , He said ,is the non- recognition that when Nigeria paid off its Paris Club and London Club debts, it did not payoff its multilateral debts, as this was neither necessary nor desirable. Only the problematic and the odious component of the external debt was cleared off.
Much of the external debts remaining after the exit from the Paris and London Club debts are loans from multilateral financial institution (World Bank, African Development Bank, International Fund for Agricultural Development, etc). The loans from this source constitute about 85% of the country’s external debt stock as at March 31, 2009. It is pertinent to note that about 83% of the interest charges: service charge of 0. 75%p.a and long repayment periods of 40 years and above, including a grace period of 10 years.
In view of their long tenors, implying gradual installment payments, it is obvious that some of the outstanding loans were contracted more than 20 years ago and cannot be contributed to the last few years. Indeed, some of the loans were contracted in the 1960s, 1970s and 1980s for various infrastructural and social development projects. . It is because their payments were scheduled to be gradual so as not to put serious burden of Fiscal resources, that part of them are still outstanding.
That the loans have a long repayment period is beneficial, given the nature of the projects and services they financed – projects and services like basic education, health and rural water supply, as well as roads whose revenue-generating impact is at the best slow, small and indirect. More importantly, it should be noted that much of the loans were applied to the provision of social and infrastructural services over the years. There is no doubt that some of the infrastructure funded in the 1960s, 1970s and 1980s are still useful assets to the people.
While the Post-Paris Club external debt stock has remained sufficiently restrained, it does vary up and down within reasonable limits even if no new loans have been incurred. This is because old loans could still be disbursed while, at the same time, repayments of principal amounts due could be taking place. The direction of the swing in the outstanding debt stock, therefore, depends on the net result of disbursements and repayments.
Nevertheless, the Finance minister assured that government is committed to ensuring debt sustainability and to avoid the pre-Paris Club debt exit situation. In line with this posture, the Debt Management Office has developed a National Debt Management Framework (NDMF) to guide the policy and strategy for external and domestic borrowing by the Federal and States Governments, as well as their agencies.
The DMF contain specific guidelines for borrowing, designed not only to limit borrowings to sustainable levels but also to ensure that there is a value for money and that the use of funds leads to the growth, employment and poverty reduction. Further, the DMO working closely with the Ministry of Finance, the CBN, the National Planning Commission and other agencies conducts annually, a debt Sustainability Analysis (ASA) to keep track of the static and dynamics of the public debt sustainability under changing local and external scenarios.
For the same reason, the DMO he said “is making significant progress in implementing the Template foe helping every of the 36 states of the Federation to establish its own Debt Management Department (DMD)”. Mukhtar said: “Although the country desires massive resource inflows in order to fund the closing of its huge infrastructure deficit, it will continue to limit the extent of its dependence on external debt financing, while encouraging the inflow of non-debt resources, such as foreign direct investments. In addition, the country is making progress in the development of the domestic debt market, to encourage domestic savings and its mobilisation, as an alternative source of funding public and private sector projects”.
In this regard, it is noteworthy that the DMO working with.”, other government agencies (the CBN, the Ministry of Finance, the Securities and Exchange Commission) and the private sector capital market players has transformed the psychology and practice of the domestic debt market from a short-time to a long-term one. The tenor of FGN Debt instruments has been extended progressively over the last few years from 91 days to 20 years. Hence, a dependable substitute for external debt funding is being developed. However, the Minister said “the goal is not to achieve a 100% substitution: rather, the goal is to operate within a dynamic-optimal range of external-domestic debt mix.”
Justus Awaji, Abuja
Features
Farmers/Herders Clash: Livestock Ministry As Solution
The persistent clash between farmers and herders in Nigeria has been a longstanding issue. These conflicts, often, over resources like land and water, have led to loss of lives, destruction of property, displacement of large numbers of people, deep-seated mistrust between communities and insecurity. Herders, traditionally nomadic, move their livestock in search of grazing land and water. Farmers, on the other hand, require the same resources for their crops. This competition often leads to clashes, especially in areas where land is becoming increasingly scarce due to population growth, climate change, and environmental degradation. As these clashes intensify, there has been a growing call for sustainable solutions. Two weeks ago, President Bola Tinubu took a bold step towards tackling the issue by inaugurating the Presidential Committee on Implementation of Livestock Reforms and creating the Ministry of Livestock Development.
The committee which has the president as the chairman and the former Chairman of the Independent National Electoral Commission (INEC), Professor Attahiru Jega as the deputy chairman has the mandate to address obstacles to agricultural productivity and open up new opportunities which benefit farmers, herders, processors, and distributors in the livestock-farming value chain as well as propose recommendations aimed at fostering a peaceful co-existence between herders and farmers, ensuring the security and economic well-being of Nigerians.The establishment of the Ministry of Livestock Development was part of the recommendations of the National Livestock Reforms Committee. Part of the 21 recommendations submitted to the president include: “This agenda should include the establishment and resuscitation of grazing reserves as suggested by many experts and well-meaning Nigerians and other methods of land utilisation.
“Create the Ministry of Livestock Resources in line with practice in many other West African countries. In the alternative, Federal and State Governments should expand the scope of existing Departments of Livestock Production to address the broader needs of the industry,” among others. Experts in the agricultural sector have posited that the livestock industry can create millions of jobs directly in farming, processing, and distribution, and indirectly in related sectors like feed production, veterinary services, and marketing. It provides livelihoods for rural populations, helping to reduce poverty and improve the quality of life in rural areas. It also increases the Gross Domestic Product (GDP) and foreign exchange earnings through the exports of livestock and livestock products such as meat, dairy, wool and leather.
According to them, a well-funded livestock industry supports the growth of agro-processing sectors, such as meat packing, dairy processing, and leather manufacturing, adds value to raw products and creates additional economic activity as well as stimulates the development of supply chains, including logistics, packaging, and retail, contributing to broader economic growth. It enhances economic resilience by diversifying the agricultural sector and providing a buffer against crop failures or other agricultural shocks and many more. Some other agriculturists have also opined that the livestock industry in Nigeria is currently underdeveloped and that by the creation of the ministry of livestock development will open up the industry which will be a huge money spinner for Nigeria.
Reports have shown that a Livestock Ministry can play a pivotal role in mitigating conflicts between farmers and herders by implementing policies and programmes aimed at fostering coexistence and sustainable resource management. The Ministry can work towards clearly demarcating grazing routes and farming areas. This would reduce instances of trespassing and accidental crop destruction, a common flashpoint for conflict. While introducing rotational grazing systems can ensure that land is used sustainably, preventing overgrazing and land degradation, establishing water points and boreholes specifically for livestock can reduce competition for water resources. Similarly, promoting the development of pasturelands through reseeding and controlled burns can improve grazing conditions.
According to a veterinary doctor, Dr Andrew Obadiah, by providing training for herders on sustainable livestock practices and for farmers on conflict resolution, both parties can understand the importance of coexistence. He said that extension services of the ministry can offer advice on improving livestock health and productivity, reducing the need for large herds and extensive grazing. “Setting up local committees involving both farmers and herders to mediate disputes can provide a platform for dialogue and peaceful resolution. Encouraging community-based conflict early warning systems can help prevent clashes before they escalate”, he emphasised.For Mrs. Stella Ugwu, a farmer, having a ministry dedicated to the development of the livestock industry can help in diversifying income sources for both farmers and herders and in turn reduce dependence on land.
”For instance, promoting agro-pastoralism can provide farmers with livestock and herders with agricultural produce”, she explained, adding that providing incentives for adopting sustainable practices, such as subsidies for fodder production or crop insurance, can ease economic pressures. Ugwu was however of the opinion that the creation of a new ministry to handle livestock affairs was uncalled for, since the job can effectively be done by the Technical and Service Department of the Federal Ministry of Agriculture and food security and its equivalent on the states level.In some countries, the establishment of a Livestock Ministry or similar bodies has shown promising results. For example, Ethiopia’s Ministry of Agriculture includes a dedicated department for livestock which has successfully implemented programmes to improve pastoral livelihoods and reduce conflicts.
In Kenya, the establishment of the National Drought Management Authority has helped manage resources better, thus reducing clashes between herders and farmers during dry seasons.The president of Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), Othman Ngelzarma, sees the Ministry of Livestock Development achieving the same feat for Nigeria in the near future. He told newsmen that, “MACBAN expresses its deepest appreciation to the Federal Government for creating a ministry of livestock to unlock the trillion-naira livestock economy and create qualitative and productive jobs across the value chain to improve the Nigerian economy. With this development, MACBAN believes the hope of the Nigerian pastoralists is now achieved under the Renewed Hope Agenda.
However, the Middle Belt Forum took a different view of the proposed Ministry of Livestock Development, saying it was not enough to sustainably resolve the decades-long farmers-herders crisis in the country. According to the National President of the association, Mr. Bitrus Pogu, what is needed to end the perennial farmers/herders clashes is a deliberate action by regulatory bodies and the government to stop criminal elements from carrying out deadly attacks on innocent Nigerians, mainly farmers. Hear him: “If the reason for creating the Ministry is to stop clashes, I think it is wrong because all of these attacks and killings that are happening have nothing to do with conflicts between farmers and herders. “Farmers have never connived at any given time to go and attack herders, but rather, criminals who happen to be Fulani gang up and attack farmers, kill, maim and chase them out of their ancestral homes.
“Then, the Fulani will come and occupy them. So, it is more about invasion, criminality, and terrorism. And the majority of those they hire to do these evils are not even those who have cattle. So, a deliberate action has to be taken by the government against the perpetrators, which will address the criminality.” Mr. Pogu suggested that the government should adopt ranching for productivity and enduring peace between the pastoralists and farmers in particular and the entire country in general.While the establishment of a Livestock Ministry presents a viable solution, it is not without challenges. Funding constraints, bureaucratic inefficiencies, and corruption can hamper its effectiveness. Additionally, deeply ingrained cultural practices and mistrust between farmers and herders can be difficult to overcome.
Critics argue that without a holistic approach that includes land reform, climate change adaptation, and broader economic development, a Livestock Ministry alone may not be sufficient. Therefore, it must work in tandem with other governmental and non-governmental bodies to ensure comprehensive solutions. “A dedicated Livestock Ministry, with its focus on sustainable resource management, conflict resolution, and economic incentives, offers a promising avenue to address the root causes of these clashes. However, its success depends on effective implementation, adequate funding, and the cooperation of all stakeholders involved. With the right strategies and commitment, devoid of any political or selfish interest, it can play a crucial role in fostering peace and prosperity in affected regions”, they advised.
Calista Ezeaku
Features
Developments In Rivers’ Health Sector …A Leap To Greater Height
Features
Infertility And Family Stability
Mrs Tamunobarabiye (not her real name) is an indigene of one of the riverine Local Government Areas of the oil-rich Rivers State of Nigeria, She was happily married to a man whom she described as her heartthrob. And the marriage thrived peacefully for ten years when suddenly there was a twist of events in the marital relationship. The relationship turned sour because of the absence of the fruit of the womb. The marriage was characterised by accusations and counter accusations compounded by pressures from external influences especially the husband’s relatives who blamed their son’s wife for not giving a child to their son. They described the woman as “another man in the house”, The union which started well with the Bible at the centre, was cat and rat, until medical procedures vindicated the woman. Such is the fate of many marriages and the unfortunate condition of many homes in Nigeria with the woman disproportionately blamed for lack of child bearing in marriage.
It is not saying something new that In most countries of the world, especially the African countries, infertility has posed great challenge to stability of marriage. Some marriages have failed because of inability of couple to have children. In a typical African tradition, where misguided myth and superstition hold sway, more often than not, women are speculatively and presumptuously blamed for the lack of procreation in the marital relationship while the husband is saintly in disposition and in the biased evaluation of his relatives. Gynaecologists however, have proven that either husband or wife or the both could be responsible for infertile challenges encountered in marriages. It is not exclusively an act of witchcraft as many African homes are prone to, and captivated by such superstitious belief. Gynaecologists and other medical experts have cited ignorance and the lack of awareness as major contributory factors to the rising incidence of infertility in marriages.
The specialists in women challenges spoke at the 2024 Fertility Conference, held recently in Lagos. The annual event, themed, “Infertility – Need for Knowledge and Early Intervention,” was organised by the Parah Family Foundation(PFF). The Lead Speaker, Preye Fiebai, a Professor and Specialist Obstetrician and Gynaecologist from the University of Port Harcourt, also noted that Nigerian men were unaware that the ability to ejaculate did not equate to being fertile. According to Fiebai, research has shown that 20-45 percent of women in Nigeria are infertile, but often, the cause of infertility in marriages is not the women.
The Specialist Obstetrician said research breakdown shows that 40 percent of infertility cases are due to male factors, 40 percent to female factors, 15 percent to combined male and female factors, and five percent are unexplained.
Fiebai listed causes of infertility in men to include: erectile dysfunction, impotence, decreased libido, psychogenic issues, endocrinopathies, age, and over weight, among others. For women, the medical expert pointed to cervical factors, uterine factors, diseases of the fallopian tubes, and problems with ovulation. Also, a professor of Surgery from the University of Lagos, Kehinde Habeeb Tijani, added factors such as age, weight, stress, excessive alcohol consumption, exposure to radiation, and constant exposure of the testicles to high temperatures as contributors to infertility. For his part, Managing Director, Lifeline Fertility Clinic, Kemi Alioje and Tony Akinyemi, while affirming the submission of the other speakers, offered various remedies to overcome infertility. They also advised women over the age of 54 to avoid aspiring for pregnancy due to the associated risks.
Also speaking, the Conference Convener, Dayo Odukoya described the infertility rates and causes as “alarming.” She emphasised the need for ongoing awareness to encourage couples experiencing infertility to seek solutions early in their marriages rather than delaying. According to her, “The foundation’s primary objective is to share vital information, enlighten and provide the relevant support system for families undergoing fertility challenges to eradicate ignorance, the misguided myths and social stigma associated with delayed fertility in our society. “The choice of the theme for this year’s conference; infertility- needs for knowledge and early intervention; is to further reiterate the importance of continued awareness, and knowledge about the challenges of infertility and more importantly, action to be taken as early as possible if not, it may cause further delays, especially in late marriage and aged women.
“The journey to parenthood is lonely and must not be treaded alone. There is a need for a support system on this journey and that is where the Parah Family comes in,” she said. The effects of infertility is better imagined than experienced. It is daunting, overwhelming and emotionally devastating. It triggers uneasy calm, quarrels, fighting, accusations, and divorce. The effects defy religious membership as some Christian marriages are not free from the attendant challenges caused by infertility..
Mrs Veronica, a victim of infertility induced crisis said infertility in marriage is a nightmare that a woman should not wish her enemy. According to her, it is stigmatizing, and leads to exclusiveness in a matrimonial home.”You know this thing called infertility is a bad thing that one should not even wish it happens to her enemy. It is a very bad experience. You are not free in your marital home.
Almost every member of your husband’s extended family sees you as the cause of their brother not having a child”. For Mrs. Beauty, infertility is a challenge that some women brought on themselves ignorantly when they were young. According to her, abortion may cause infertility. “You know that no woman knows her fertility status – that is the number of children a woman can give birth to, in a normal condition. Some women might have several pregnancy abortion and may still have a child or children. But some may abort only once, yet may not have any child”. She warned against the temptation of abortion of pregnancy. She said no pregnancy is “unwanted”. Rather than trading blames and accusations, married men and women should undergo medical checks to ascertain their fertility status even before marriage. Those who are medically deficient should access medical facility to solve the problem.
Igbiki Benibo
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