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Nigeria Broke, Finance Minister Admits
Nigeria’s fiscal position worsened in the first four months of the year as the cost of repaying debt surpassed the government’s revenue in the first quarter of 2022.
According to details of the 2022 Fiscal Performance Report for January through April, total revenue stood at N1.63trillion while debt servicing stood at N1.94trillion, showing a variance of over N300billion.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, yesterday, warned that urgent action was needed to address the nation’s revenue challenge and expenditure efficiency at both the national and sub-national levels.
The report showed that gross oil and gas federation revenue for the first four months of the year was projected at N3.12trillion but as at April 30, only N1.23trillion was realised, representing a mere 39percent performance.
Despite higher oil prices, the report showed that oil revenue underperformed due to significant oil production shortfalls such as shut-ins resulting from pipeline vandalism and crude oil theft as well as high petrol subsidy cost due to higher landing costs of imported products.
However, non-oil taxes trailed targets marginally, with average performance of 92.6percent.
“Revenue performance is expected to improve in the second half of 2022 as a result of concerted efforts to address the oil theft and pipeline vandalism, the report said. It added that there is also seasonality to some of the non-oil taxes, which means that the nation expects to collect significantly more in the second half of the year.
“The improved revenue collection should also moderate the Debt Service to Revenue Ratio, which is currently above our target level,” the report said.
The expectation of improved revenue collection should also moderate the debt service to revenue ratio, which is currently above the nation’s target level.
In the first quarter of 2020, Nigeria’s debt service as a percentage of revenue rose to 99percent, according to the Medium-Term Expenditure Framework and Fiscal Strategy (MTEF/FSP) report released by the Federal Ministry of Finance, Budget, and National Planning.
The data showed that in Q1 2020, Nigeria incurred a total sum of N943.12billion in debt service while the Nigerian government retained revenue at N950.56billion.
In effect, Nigeria’s debt service to revenue was estimated to be 99percent during the period.
Yesterday, the new report showed that the Nigerian government’s share of oil revenues in Q1 2022 was N285.38billion (representing 39percent performance), while non-oil tax revenues totalled N632.56billion, representing 84percent.
In essence, the government generated N401.8billion from company income tax (CIT) and value-added tax (VAT) as CIT and VAT collections were N298.83billion and N102.97billion, respectively, representing 99percent and 98percent of their respective targets.
Customs collections (made up of import duties, excise and fees, as well as federation account special levies) trailed target by N76.77billion (25.42percent) while the other revenues amounted to N664.64billion, of which independent revenue was N394.09billion.
The report noted that for Nigeria, “fiscal risks are somewhat elevated”, following weaker-than-expected domestic economic performance and structural issues in the domestic economy.
It warned that revenue generation remains the major fiscal constraint of the nation and the systemic resource mobilisation problem has been compounded by recent economic recessions.
The underlying factors also include the Russia and Ukraine war, which the report said has assumed a new and worrisome dimension with severe implications on food and energy prices.
It listed the resurgence of COVID-19 in some major economies, which has led to slowdown in economic activities in those countries; as well as renewed elevated inflation in most economies, prompting monetary tightening in these economies with the inherent negative impact on capital inflow to emerging markets economies.
Also identified as a contributing factor is the challenging domestic macroeconomic and business environment and the negative impact of insecurity on the domestic economy.
“Efforts will, however, focus on improving tax administration and collection efficiency,” the report said.
“Crude oil production challenges and PMS subsidy deductions by NNPC constitute significant threat to the achievement of our revenue growth targets, as seen in the 2022 Performance up to April.
“Bold, decisive and urgent action is urgently required to address revenue underperformance and expenditure efficiency at national and sub-national levels.”
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I Am One Of You, Sole Administrator Tells Rivers People …Warns Against Violence, Crude Oil Sabotage
The Sole Administrator of Rivers State, Retired Vice Admiral Ibok-Ete Ibas (rtd), has assured residents that he is not in the State as a partisan actor or political competitor but as a stabilising force to restore governance and order.
In a state broadcast yesterday, Ibas, who assumed duty at Government House, Port Harcourt, emphasised his commitment to protecting civil liberties and ensuring the safety of all citizens.
However, he issued a stern warning against crude oil sabotage and violence, urging residents to resist any temptation to return to past hostilities.
“For decades, I have dedicated my life to the service of our great nation—first as the 20th indigenous Chief of Naval Staff and later as Nigeria’s High Commissioner to Ghana. I answered this call out of the need for peace in Nigeria, and most importantly, in Rivers State,” Ibas stated.
Describing the prolonged political impasse as a major setback to governance and democracy, he acknowledged the hardships faced by families and businesses due to the prevailing uncertainty.
“As a son of the Niger Delta, I am one of you. I feel the weight of this crisis on families, businesses, and the future of our people,” he said.
Ibas commended President Bola Tinubu’s decisive action in declaring a state of emergency in Rivers State, stressing that it was a necessary move to restore stability and revive economic activities.
“My mandate is clear: restore law and order, ensure stability, and create an enabling environment for economic growth. But this mission requires collective support from all stakeholders, regardless of political affiliation or ethnicity,” he stated.
He discouraged attacks on oil infrastructure, reminding residents of the devastating environmental and economic consequences of such actions.
“The Niger Delta has moved beyond the destruction of oil facilities. We must resist the temptation to return to those ugly days,” he cautioned.
While pledging to uphold civil liberties and the rule of law, the Sole Administrator warned that lawlessness and violence would not be tolerated.
“We will not act arbitrarily, but we will not hesitate to deal decisively with anyone who threatens the peace and stability of Rivers State,” he declared.
Ibas revealed that he had concluded a State Security Council meeting where strategic measures were outlined to de-escalate tensions and prevent further conflict.
Expressing gratitude to President Tinubu for entrusting him with the responsibility, he also acknowledged the National Assembly for approving the emergency declaration.
“I will work closely with the national leadership under the guidance of the President. I am optimistic that Rivers State will emerge stronger and greater,” he concluded.
The Federal Capital Territory Emergency Management Department has confirmed that 10 persons have died in the truck explosion that occurred near Karu bridge, along the Abuja-Keffi Expressway, on Wednesday.
The FEMD’s Head of Public Affairs, Nkechi Isa, confirmed the numbers in a statement, yesterday.
The Acting Director General of the Emergency Department, Abdulrahman Mohammed, had earlier confirmed that eight persons had died as of yesterday morning, with five confirmed dead on the scene, and four others burnt beyond recognition.
““Five people were taken dead from the scene yesterday (Wednesday). Out of the people that were injured, one died, making six. Then this morning (yesterday), when I asked my people to go round, they discovered that two had already died again, making eight. Four of them from yesterday were burnt beyond recognition.”, he explained.
However, in her statement, Isa said the Head, Forecasting Response and Mitigation of FEMD, Mr Mark Nyam, said eight bodies were deposited at the Karu Hospital Morgue, one body at the Asokoro Distinct Hospital Morgue while another body was deposited at the National Hospital.
He added that some victims had been referred to the Gwagwalada Teaching Hospital, Federal Medical Centre, Keffi, and Cedercrest Hospital Abuja for proper care.
Part of the statement reads, “The FCT Emergency Management Department FEMD can confirm that 10 persons lost their lives to the truck explosion that occurred at Karu bridge along Abuja / Keffi expressway.
“The Head Forecasting Response and Mitigation of FEMD, Mr Mark Nyam said eight bodies were deposited at the Karu Hospital Morgue, one body at the Asokoro Distinct Hospital Morgue while another body was deposited at the National Hospital.”
He informed that over 30 persons suffered various degrees of burns.
“Some of the victims have been referred to Gwagwalada Teaching Hospital, Federal Medical Centre,Keffi and Cedercrest Hospital Abuja for proper care,” he said.
Isa also stated that no fewer than 10 vehicles were burnt during the incident, adding that the FEMD boss after a visit to the incident scene, appealed to motorists to observe traffic rules and regulations.
He also cautioned against reckless driving, dangerous overtaking and poor maintenance of vehicles, while urging FCT residents to always use the 112 emergency toll free number in the event of an emergency.
Meanwhile, barely 24 hours after the incident, another fertiliser-laden truck has collapsed on the same spot.
The Tide learnt that the incidence occurred at about 3:54pm yesterday.
The Head of Public Affairs of the FCT Emergency Management Department, Nkechi Isa, confirmed the accident in a statement, stating that the truck collided with a Hijet and a dump truck, adding that no life was lost.
She cautioned road users to drive with caution as the Federal Road Safety Corps was making efforts to tow away the affected vehicles, to avoid traffic built up.
“Another accident has occurred under Karu bridge along the Abuja-Keffi Expressway. Thankfully, no life was lost to the incident. Our Search and Rescue say the accident occurred when a truck laden with fertilizer ran into a Hijet and a dump truck also known as tipper.
“Motorists are advised to drive with caution as the Federal Road Safety Corps is taking steps to tow away the affected vehicles in order to avoid traffic built up,” the statement read.
Meanwhile, several videos showed some persons trying to clear the fertiliser bags from the fallen truck to ease traffic.
The Director-General of the National Youth Service Corps (NYSC), Brig.-Gen. Olakunle Nafiu, has assured that the payment of the newly increased monthly allowance of N77,000 to corps members will begin in March.
This is contained in a statement issued in Abuja on Thursday by the Acting Director of Information and Public Relations, Caroline Embu.
Nafiu made the announcement while interacting with corps members at the NYSC Zonal Offices in Wuse and Garki, Federal Capital Territory.
He assured the corps members that both the scheme and the Federal Government were committed to their welfare and would continue prioritising their well-being.
“With effect from March, you are going to receive N77,000 as your monthly allowance.
“NYSC is good at record-keeping, and I can assure you that your money will be paid. The nation and the scheme appreciate you,” Nafiu said.
He thanked the corps members for their selfless service and encouraged them to remain calm, dedicated, focused, and disciplined.
Nafiu also emphasised the significance of the NYSC scheme, stating that it was an initiative that built bridges and exposed graduates to cultural values beyond their places of birth.
The Director-General further stated that the NYSC management would continue to instill virtues such as patriotism, discipline, self-restraint, good morals, leadership qualities, and teamwork in future batches.
It will be recalled that the Federal Government approved the increase in corps members’ monthly allowance to N77,000 in September 2024, with the new allowance taking effect from July 2024.
Prior to this increase, corps members received a monthly allowance of N33,000. The raise aligns with the enactment of the National Minimum Wage (Amendment) Act 2024.