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Nigeria And Debt Burden

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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

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Accelerating Gender Parity In Nigeria

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In virtually all societies, women are in an inferior position to men. Sex or gender determines  more rights and dignity for men in legal, social and cultural situations, These are reflected on unequal access to or enjoyment of rights in favour of men.
There are also the assumption of stereotype social and cultural roles.
In Nigeria, gender inequality has been for decades in spite of modernization and the fact that many females have done better than men in many spheres.
Analysts are convinced that gender inequality is largely influenced by religious and cultural beliefs, as some cultures and religions still hold strongly that women are the weaker vessels created mainly to be home keepers and child bearers.
Analysts are also worried that gender inequality negatively affects status in all areas of life in society, whether public or private, in the family or labour market.
Although the Global Gender Gap Report 2018 by the World Economic Forum (WEF) shows some progress amongst the 149 countries that were indexed, the progress toward closing the gender gap is slow, because it will take 108 years to close the gender gap and another 202 years to achieve parity in the workforce, according to the report.
The report benchmarks the 149 countries on their progress toward gender parity across four dimensions – economic participation and opportunity, educational attainment, health and survival, and political empowerment.
A number of initiatives have been made by corporate organisations and governmental and non-governmental organisations  to address gender imbalance in Nigeria.
One of the latest is the launch of First Women Network  (FWN) by the First Bank of Nigeria Ltd., in commemoration of the 2019 International Women’s Day (IWD).
IWD is celebrated globally every March 8 to recognise social, economic, cultural and political achievements of women.
The celebration is also a call to action for accelerating gender parity.
The global theme for the 2019 celebration is “Think Equal, Build Smart, Innovate for Change” while the theme for the social media campaign is “#BalanceforBetter”.
According to the bank, the FWN initiative is an avenue for career management and mentoring for women to enable them to balance their career with private endeavours.
The aim,  according to the bank, is to address gender gap and increase women representation in its senior and executive levels, as well as encourage women to tap into opportunities and contribute to nation-building.
The bank’s Chief Executive Officer (CEO), Dr Adesola Adeduntan,  explains that First Women Network is targeted at the banks’ staff and customers, among others.
He believes that women can achieve more if given the necessary strategic support, hoping that the initiative
will increase the bank’s productivity and profitability.
Adeduntan notes that the initiative is  also a demonstration of First Bank’s adherence to the Central Bank of Nigeria’s Sustainable Development Goals which mandate increased women representation in all banks.
The sustainable goals require that the financial services sector should adopt a quota system to increase women representation on boards to 30 per cent and that of senior management level to 40 per cent by 2014.
Adeduntan is optimistic that the FWN will address six key area –  career management, personal branding, mentoring, welfare, financial planning and empowerment.
He is convinced that the initiative will address gender disparity at the workplace.
“It is commonly agreed that gender parity is an essential factor influencing the advancement of institutions, economies and societies.
“Studies have shown that gender parity in corporations promotes increased performance and returns on investment.
“The need to invest in composite women empowerment and enhance their contributions at senior management levels to achieve organisational goals cannot be over-emphasised,” the CEO says.
For him,  it is paradoxical that the presence of women in paid employments continues to increase, yet the progression of professional women to positions of leadership and management remains slow.
“Gender gaps persist in economic opportunities and political participation in many countries.
“This is part of the reasons for this women network initiative,” he notes.
The chief executive officer wants employers of labour and the entire society to encourage women to advance, excel and contribute optimally in  workplaces and communities.
Mr Abiodun  Famuyiwa, group head, Products and Marketing Support, promises that First Bank  will continue to promote female entrepreneurship for national growth and development.
“We recognise that promoting female entrepreneurship and independence is key to economic viability of every home in the country,” he says.
 According to him, FWN is a further demonstration of the bank’s commitment to women empowerment after the launch  of FirstGem in 2016.
He is satisfied that FirstGem is providing opportunities for women to achieve their financial goals and aspirations through with access to support funds, free business advice, specialised trainings on business development and insight on business development.
For Mr Lampe Omoyele, managing director, Nitro 121, an integrated marketing communications agency,  points out that courage is important in addressing gender imbalance.
“For gender imbalance to be resolved, there has to be courage, vision, values and character,” he says.
He is convinced that women should  have courage and confidence in taking risks within  organisations.
Omoyele advises that women must not play the victims.
“Ultimately, whether you are a female or male, what is going to sustain you is your character and values.
“You need to have values; character is important in the balance that we live to, and it sustains you as you move into the future,” he adds.
The Chief Executive Officer,  Standard  Chartered Bank, Mrs Bola Adesola, wants women to take advantage of FWN to make their lives better.
 She urges women to aspire to grow in their endeavours and refuse be limited because of their gender, stressing that they should use all resources at their disposal to grow.
 For the bank chief, FWN is not a silver bullet to creating the first female chief executive officer of First Bank, but  about opportunity.
“So, it is important that as women, we take advantage of it,” she urges.
 Ms Cecilia Akintomide, independent non-executive director, FBN Holdings Plc, is dissatisfied that Nigeria is still far in gender balancing.
Akintomide says Nigerian  women are still being restricted from working in some places and owning some property.
According to her, restrictions are rendering 50 per cent of Nigeria’s population –  mainly women –  economically unviable.
 A First Bank customer,  Mrs Ifeyinwa Okoye, lauds the FWN, and urges the bank to ensure that its customers – the secondary target of FWN –  benefit from it.
Okoye describes women as critical to economic growth and development but regrets that many women were lagging behind in their endeavours because of gender inequality.
She wants the banks to enlighten its customers on FWN for maximum results.
 “If you empower a woman, you empower a nation.
“Empowering women is especially effective because the benefits are felt throughout the whole community,” she argues.
Analysts call for more strategic support for Nigerian women to  enhance gender parity.


By: Chinyere Joel-Nwokeoma
Joel-Nwokeoma is of the News Agency of Nigeria.

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Covid-19 Vaccination: Role Of Local Leaders

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It was a matter of time, but Covid-19 vaccination has already started to generate heated arguments following a hint that the Federal Government could start sanctioning anybody who refused to be vaccinated.
Dr Faisal Shuaib, Executive Director,  National Primary Health Care Development Agency, NPHCDA, disclosed this at a recent press conference in Abuja. He, however, said that implementation was dependent on availability of the vaccines.
“The Presidential Steering Committee and the Federal Ministry of Health are exploring ways of making vaccines more available to all Nigerians, including federal civil servants and corporate entities.
“Once these vaccines are made equitably available to all Nigerians, then we will need to have a frank discussion about justice, fairness and liberty that exist around vaccine hesitancy.
“So, you have a right to refuse vaccines, but you do not have the right to endanger the health of others,” he said.
Already, attempts have been made by two states – Ondo and Edo – to make Covid-19 vaccination compulsory, especially for public servants and members of the public who wish to gain access to certain places.
These places include religious worship centres, banks and public buildings.
However, those attempts and the suggestion that the Federal Government might sanction those who refuse vaccination have been criticised by some trade, professional and religious associations.
 The Nigeria Medical Association (NMA) and Joint Health Sector Union (JOHESU) that kicked against the compulsory vaccination, said that government should rather embark on advocacy and persuasion, than coerce citizens into getting vaccinated.
The spokesman for JOHESU, Mr Olumide Akintayo, said the policy would only be sensible if there were enough vaccines to inoculate eligible citizens.
Akintayo stated: “If you are thinking of it in terms of responsibility, it makes sense; but practically, we all know it is an impossible task.
“ If all the doses that have been sent to Nigeria since this outbreak is less than 10 million, how do you enforce that kind of policy in a country of over 200 million people?
“You don’t just come up with policies that are not backed by common sense; you don’t just say things because you want to talk. It would have made some sense if the vaccines are available for everyone.”
The General Secretary of the NMA, Philips Ekpe, said citizens could not be forced to be vaccinated against Covid-19 the same way they had the right to reject medical treatment.
Rather than being forced, he said Nigerians should be made to understand the need to be vaccinated. 
According to him, although they cannot be forced, citizens who refuse vaccination should stay in their houses so that they don’t endanger others.
He said: “The Federal Government needs to make people understand the reason why they need to be vaccinated. They have the right to say no. You cannot force people. People have the right to say no to medical treatment.
“But you should let them understand the dangers of not getting vaccinated.
“For example, if you want to travel out of the country, if you are not vaccinated, you will not be let in. The reason is because the other country you are going to won’t want to endanger the lives of its citizens.
“Let them understand the importance, but then if they refuse, they should stay in their houses and not go out and endanger others.”
Experts believe that properly communicating the advantages of being vaccinated, through the use of existing structures, such as religious and cultural institutions, would yield better results than subtle threats.
Communication connotes persuasion, even on occasions when the purpose of a piece of communication is not to persuade, there is still the need to win over the audience to accept the message.
In this era of fake news, and when the social media is awash with conspiracy theories against vaccination, persuasion must first be deployed to get the attention of citizens.
The burden increases tremendously when there are cultural and religious stereotypes which could prevent many adherents from accepting that being vaccinated is safe.
This challenge is not peculiar to Nigeria. In the U.S. for instance, vaccine hesitancy is responsible for over 90 per cent of all Covid-19 related hospitalisation.
Getting some Americans vaccinated has been so challenging that many people have been offered monetary incentives to convince them to get vaccinated in an unusual case of persuasion.
In Nigeria, where religious and traditional leaders are custodians of faith and culture respectively, they wield great influence on devotees and those institutions can be deployed to boost vaccination drive.
Historically, religious and traditional rulers often employ the cognitive process of persuasive communication to change an entrenched social perception or public opinion hindering required public support for relevant people-oriented policies.
Leaders have the influence to subtly appeal to the target to listen, accept, comprehend and act.
Therefore, before considering the stick, government should first explore the use of carrot.
Religious and traditional leaders can help in giving correct messages on vaccination as well as being role models, making sure that they and their loved ones too are vaccinated.
Faith-based and culture-based organisations can also collaborate with other leaders to sensitise communities on the benefits of vaccination and to also dispel the many myths and disinformation about it.
King Bubaraye Dakolo of Epetiama Kingdom in Bayelsa has been putting this practice to use, since vaccination was first rolled out in Nigeria in March.
“The arrival of the vaccine brought a huge relief to our kingdom. I mobilised my people to carry out awareness campaigns in the various communities to guard against apathy.
“My council chiefs and I led by example in being vaccinated early. When the people saw that, they were fully convinced that the vaccine is not harmful.
“We made it clear to our people through town hall meetings that the vaccine is safe and is designed to save humanity.
“We equally reminded them how some persons who refused to be vaccinated for poliomyelitis in the past are suffering the consequences of their actions today,” the traditional ruler said. 
According to the WHO Covid-19 Dashboard, Nigeria had administered 4.4 million Covid-19 vaccine doses as at Aug. 31, 2021. Out of that number, 2.9 million Nigerians have been fully vaccinated, according to the NPHCDA.
With a fairly efficient vaccination structure, owing to many years of immunisation against polio, the Nigerian government should activate collaboration with religious and traditional bodies in its vaccination drive.
Experts, including health professionals and public administrators, believe that involving these leaders in advocacy and public enlightenment will lead to more people accepting to voluntarily get Covid-19 vaccination.
Of course, with just a paltry 0.7 per cent of the population vaccinated, the key indicator for any punitive measure for avoiding vaccination will be subject to availability of the vaccines.
However, to achieve the goal of vaccinating 40 per cent of its 200 million population before the end of 2021 and 70 per cent by the end of 2022, Nigeria will need more than availability of vaccines.
There has to be the acceptance and willingness of the majority of its population to be vaccinated.
One of the crucial and effective way to achieve that is to work with religious and traditional leaders.

By: Kayode Adebiyi

Adebiyi writes for News Agency of Nigeria.

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COVID-19 Vaccination: Role Of Local Leaders

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It was a matter of time, but COVID-19 vaccination has already started to generate heated arguments following a hint that the Federal Government could start sanctioning anybody who refused to be vaccinated.
Dr Faisal Shuaib, Executive Director,  National Primary Health Care Development Agency (NPHCDA), disclosed this at a recent press conference in Abuja. He, however, said that implementation was dependent on availability of the vaccines.
“The Presidential Steering Committee and the Federal Ministry of Health are exploring ways of making vaccines more available to all Nigerians, including federal civil servants and corporate entities.
“Once these vaccines are made equitably available to all Nigerians, then we will need to have a frank discussion about justice, fairness and liberty that exist around vaccine hesitancy.
“So, you have a right to refuse vaccines, but you do not have the right to endanger the health of others,” he said.
Already, attempts have been made by two states – Ondo and Edo – to make COVID-19 vaccination compulsory, especially for public servants and members of the public who wish to gain access to certain places.
These places include religious worship centres, banks and public buildings.
However, those attempts and the suggestion that the Federal Government might sanction those who refuse vaccination have been criticised by some trade, professional and religious associations.
 The Nigeria Medical Association (NMA) and Joint Health Sector Union (JOHESU) that kicked against the compulsory vaccination, said that government should rather embark on advocacy and persuasion, than coerce citizens into getting vaccinated.
The spokesman for JOHESU, Mr Olumide Akintayo, said the policy would only be sensible if there were enough vaccines to inoculate eligible citizens.
Akintayo stated: “If you are thinking of it in terms of responsibility, it makes sense; but practically, we all know it is an impossible task.
“ If all the doses that have been sent to Nigeria since this outbreak is less than 10 million, how do you enforce that kind of policy in a country of over 200 million people?
“You don’t just come up with policies that are not backed by common sense; you don’t just say things because you want to talk. It would have made some sense if the vaccines are available for everyone.”
The General Secretary of the NMA, Philips Ekpe, said citizens could not be forced to be vaccinated against COVID-19 the same way they had the right to reject medical treatment.
Rather than being forced, he said Nigerians should be made to understand the need to be vaccinated. 
According to him, although they cannot be forced, citizens who refuse vaccination should stay in their houses so that they don’t endanger others.
He said: “The Federal Government needs to make people understand the reason why they need to be vaccinated. They have the right to say no. You cannot force people. People have the right to say no to medical treatment.
“But you should let them understand the dangers of not getting vaccinated.
“For example, if you want to travel out of the country, if you are not vaccinated, you will not be let in. The reason is because the other country you are going to won’t want to endanger the lives of its citizens.
“Let them understand the importance, but then if they refuse, they should stay in their houses and not go out and endanger others.”
Experts believe that properly communicating the advantages of being vaccinated, through the use of existing structures, such as religious and cultural institutions, would yield better results than subtle threats.
Communication connotes persuasion, even on occasions when the purpose of a piece of communication is not to persuade, there is still the need to win over the audience to accept the message.
In this era of fake news, and when the social media is awash with conspiracy theories against vaccination, persuasion must first be deployed to get the attention of citizens.
The burden increases tremendously when there are cultural and religious stereotypes which could prevent many adherents from accepting that being vaccinated is safe.
This challenge is not peculiar to Nigeria. In the U.S. for instance, vaccine hesitancy is responsible for over 90 per cent of all COVID-19 related hospitalisation.
Getting some Americans vaccinated has been so challenging that many people have been offered monetary incentives to convince them to get vaccinated in an unusual case of persuasion.
In Nigeria, where religious and traditional leaders are custodians of faith and culture respectively, they wield great influence on devotees and those institutions can be deployed to boost vaccination drive.
Historically, religious and traditional rulers often employ the cognitive process of persuasive communication to change an entrenched social perception or public opinion hindering required public support for relevant people-oriented policies.
Leaders have the influence to subtly appeal to the target to listen, accept, comprehend and act.
Therefore, before considering the stick, government should first explore the use of carrot.
Religious and traditional leaders can help in giving correct messages on vaccination as well as being role models, making sure that they and their loved ones too are vaccinated.
Faith-based and culture-based organisations can also collaborate with other leaders to sensitise communities on the benefits of vaccination and to also dispel the many myths and disinformation about it.
King Bubaraye Dakolo of Epetiama Kingdom in Bayelsa has been putting this practice to use, since vaccination was first rolled out in Nigeria in March.
“The arrival of the vaccine brought a huge relief to our kingdom. I mobilised my people to carry out awareness campaigns in the various communities to guard against apathy.
“My council chiefs and I led by example in being vaccinated early. When the people saw that, they were fully convinced that the vaccine is not harmful.
“We made it clear to our people through town hall meetings that the vaccine is safe and is designed to save humanity.
“We equally reminded them how some persons who refused to be vaccinated for poliomyelitis in the past are suffering the consequences of their actions today,” the traditional ruler said. 
According to the WHO COVID-19 Dashboard, Nigeria had administered 4.4 million COVID-19 vaccine doses as at Aug. 31, 2021. Out of that number, 2.9 million Nigerians have been fully vaccinated, according to the NPHCDA.
With a fairly efficient vaccination structure, owing to many years of immunisation against polio, the Nigerian government should activate collaboration with religious and traditional bodies in its vaccination drive.
Experts, including health professionals and public administrators, believe that involving these leaders in advocacy and public enlightenment will lead to more people accepting to voluntarily get COVID-19 vaccination.
Of course, with just a paltry 0.7 per cent of the population vaccinated, the key indicator for any punitive measure for avoiding vaccination will be subject to availability of the vaccines.
However, to achieve the goal of vaccinating 40 per cent of its 200 million population before the end of 2021 and 70 per cent by the end of 2022, Nigeria will need more than availability of vaccines.
There has to be the acceptance and willingness of the majority of its population to be vaccinated.
One of the crucial and effective way to achieve that is to work with religious and traditional leaders.

By: Kayode Adebiyi
Adebiyi writes for News Agency of Nigeria.

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