News
Domestic Debt Charges Rise By 244%
The Federal Government has proposed to spend N4.5trillion on interest charges for domestic debt by 2023, according to the proposed 2023 budget.
This is an increase of 243.51per cent from the N1.31trillion proposed allocation for interest charges on domestic debt in 2016.
While presenting the 2023 appropriation bill to a joint session of the National Assembly recently, President Muhammadu Buhari noted that despite the revenue challenges in the country, the country still consistently met its debt service obligation.
“Despite our revenue challenges, we have consistently met our debt service commitments. Staff salaries and statutory transfers have also been paid as and when due,” Buhari added.
However, speaking at the launch of the World Bank’s Nigeria Development Update titled, ‘The Urgency for Business Unusual,’ held recently in Abuja, the Finance Minister, Zainab Ahmed, had admitted that Nigeria was struggling to service its debt.
She said, “Already, we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate, so it is a very difficult situation.”
In a document, the Director General of the Debt Management Office, Patience Oniha, stated that high debt levels would often lead to high debt services and affect investments in infrastructure.
According to the DMO DG, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”
Despite this, the government plans to borrow N8.80trillion and spend N6.31trillion on debt service in 2023.
In its latest Africa’s Pulse report, the World Bank said that public debt in Nigeria was concerning due to the rising debt service-to-revenue ratio.
According to the bank, the debt service to revenue ratio could stand at 102.3per cent by the end of 2022.
The President of the World Bank Group, David Malpass, recently said that the bank would work with the International Monetary Fund (IMF) to assess Nigeria’s debt sustainability.
He said, “We will work with the IMF on an assessment of the debt sustainability of Nigeria but it will be up to Nigeria itself to interact with the various creditors, which include bond holders, official creditors that are engaged in Nigeria.”
Earlier, Ahmed had disclosed that the Nigerian government was in talks with the IMF and the World Bank to restructure the country’s debts.
However, the World Bank Group President said that Nigeria was yet to request the common framework for debt restructuring.
The Chief Executive Officer of Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said that the Nigerian economy had been characterised by diverse economic vulnerabilities, which included rising public debt and debt service burden.
As a result of the increasing debt service cost, he said that, “Financing of the operations of government – personnel cost, overhead cost, capital expenditure, and even part of the servicing of the debt – will have to come from additional borrowing. These portend severe vulnerabilities for the Nigerian economy.”
As Rivers State celebrates the 58th anniversary of its creation today, some stakeholders have called on the State Government to do more towards improving the quality of infrastructure and human capital development in the State..
A cross section of stakeholders who spoke in an interview with The Tide also commended successive administrations in the state for their efforts towards expanding infrastructure network across the state.
They noted that more communities, both at the upland and riverine parts of the State, now have access to road network than when the stayte was created 58 years ago.
They, however, urged the government to return the state to the era of overseas scholarship when brilliant students are given opportunities to further their studies.
Speaking with The Tide, former youth leader of Chokota community in Etche Local Government Area, Mr. Ebere Nwankwo, said Rivers State has made progress in various fronts, despite the ongoing political crisis in the State.
Nwankwo noted that the State now has more tertiary institutions, both private and public, while the number of secondary schools have tripled.
He added that the State has also recorded tremendous progress in the area of healthcare.
According to him, healthcare has been brought closer to the doorstep of the common man, as there is hardly any local government in the state that doesn’t have a government health centre today.
The youth leader further said that many Rivers indigenes, home and abroad, have brought glory to the State in their various capacities, and urged the government to provide the enabling environment for the youths to excel.
Also speaking, the spokesperson for the International Peace Advocates, Mr. Emmanuel Nkweke, said the position of Rivers State among the comity of states in the country cannot be taken for granted.
He attributed this success to the efforts of successive administrations in repositioning the state for development.
Nkweke, however, called for a speedy resolution of the political impasse in the State to enable the State move to the next level of development.
Also speaking, a civil servant, Mrs. Ngozi Sunday, noted the efforts of government to improve the quality of lives of Rivers people, but called for a return to democratic governance in the State.
Another civil servant, Mrs. Munuonye Tina Ogechi, said Rivers State within the past 58 years has recorded significant achievements in road infrastructure, youth empowerment and repositioning of the state civil service for greater productivity.
She commended the suspended Governor of the State, Sir Similanayi Fubara, for taking the issue of women empowerment and peace seriously.
Meanwhile, a teacher, Mr. Orie Fiberesima, decried the high cost of living and lack of jobs in the State, and the need for a more effective government.
He also stressed the need for the government to look into the issue of high rent in Port Harcourt, noting that houses are now beyond the reach of the average Rivers man.
Mr. Innocent Chimobi, in his own view, urged the government to attract more industries and foreign investments to the State as a way of providing employment opportunities for the jobless youths in the State.
He also called the attention of the government to the terrible state of roads in some rural communities, advising the government to work hand in hand with the communities to foster better development.
By: John Bibor/Claire Julius
The Minister of Housing and Urban Development, Ahmed Dangiwa, yesterday, unveiled a 12-member ministerial committee to oversee the 753-unit recovered housing estate linked to former Central Bank of Nigeria Governor, Godwin Emefiele.
The estate was recently handed over to the Ministry by the Economic and Financial Crimes Commission, following a directive from President Bola Ahmed Tinubu.
In a statement released yesterday, Dangiwa emphasised the critical nature of the assignment, describing it as a key step towards realising the housing component of the Renewed Hope Agenda.
The statement read, “Housing and Urban Development Minister, Ahmed Dangiwa, has inaugurated a twelve-member ministerial committee on the 753-unit recovered housing estate located in the Lokogoma district, Abuja, FCT.”
He reiterated that the committee’s mandate aligns with the President’s vision and the Ministry’s reform objectives to transform the estate into liveable, secure, and affordable homes for Nigerians.
“The committee was constituted based on the vision of Mr President and the Ministry’s housing reform drive to ensure that the recovered property is swiftly transformed into liveable, secure, and affordable homes for the benefit of Nigerians,” he said.
Dangiwa underscored the importance of technical expertise and institutional integrity in executing the assignment, noting that committee members were selected from key departments within the Ministry.
“Your selection is a testament to the confidence the Ministry has in your ability to drive this initiative with the seriousness and efficiency it demands.
“Nigerians are watching and expect results. They want to see homes completed and allocated transparently. They want to see the government working for them,” Dangiwa emphasised, urging committee members to collaborate effectively and remove unnecessary bottlenecks.
He charged them to adopt a fresh mindset, stating, “Think outside the box. Be results-oriented.”
The committee is chaired by the Ministry’s Permanent Secretary, Shuaib Belgore, and includes senior directors and aides from the technical, financial, engineering, planning, procurement, and media departments.
The committee’s Terms of Reference include conducting a thorough structural and integrity assessment of the buildings, determining the number and condition of housing units, and valuing existing work through proper surveying and market evaluation.
Additionally, the committee will assess costs required to complete essential infrastructure such as roads, power, and water. It will also develop standards for architectural and finishing consistency, propose a fair and transparent strategy for disposal and allocation of units via the Renewed Hope Housing Portal, and devise a public engagement plan to build confidence.
The committee must ensure effective coordination with key stakeholders, including the EFCC, FCTA, and relevant utility providers. A preliminary report is expected within four weeks.
The Minister of State, Yusuf Ata, emphasised the need for the committee to co-opt additional professionals as required, given the scale of the task and tight deadline.
“The committee should have the authority to co-opt members to assist, considering the magnitude of the task and the four-week timeline,” he noted.
Belgore assured that the team would execute its duties diligently and professionally.
“The committee has been tasked with ensuring the recovered estate undergoes a comprehensive technical assessment, is strategically completed, and disposed of transparently and cost-effectively, in line with national housing delivery objectives,” he said.
He added that the success of the assignment would serve as a model for transforming recovered public assets into impactful infrastructure.
“The successful execution of this assignment will serve as a benchmark for converting recovered public assets into infrastructure that directly benefits the people,” he concluded.
Renowned Islamic scholar, Sheikh Ahmad Gumi, has been deported from Saudi Arabia after being denied entry into Medina, effectively barring him from participating in the 2025 Hajj pilgrimage.
Gumi, a Kaduna-based cleric, known for his controversial views on national and international issues, confirmed the development in a statement posted on his official Facebook page, yesterday.
“Due to some reasons related to my views on world politics, the authorities in Saudi Arabia do not want me to be present at Hajj even though they have granted me a visa,” Gumi wrote.
The cleric, who was part of a delegation of religious scholars sponsored by the National Hajj Commission of Nigeria (NAHCON), arrived at Prince Mohammad Bin Abdulaziz International Airport in Medina on Saturday night via Umza Air.
However, upon arrival, Saudi immigration officials reportedly stopped him at the airport and denied him entry into the city, before placing him on a return flight to Nigeria.
Sheikh Gumi added in a statement on his page that the Nigerian authorities have shown concern and have promised to engage Saudi officials to seek clarification and resolution.
“I am grateful to the authorities in Nigeria who have pledged to engage with the Saudi authorities on this matter,” he said.
Although no official reason has been provided by Saudi Arabia for the deportation, observers believe the action may be connected to Sheikh Gumi’s outspoken political and religious views, which may be at variance with the kingdom’s policies.
Gumi has, in recent years, played a prominent role in dialogue initiatives with armed groups in Nigeria’s northern region and has often voiced criticism of Western and Middle Eastern political interventions.
The incident has sparked discussions among religious communities and the wider public, with many questioning the implications of political ideology on religious observance.
As of the time of filing this report, there is no official statement from the Saudi embassy or the Nigeria’s Ministry of Foreign Affairs on the development.
Sheikh Gumi has since resumed his public preaching and teaching engagements in the country.