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FG Exceeds Loan Target By N1.12trn, Borrows N5.3trn
The Federal Government exceeded its borrowing by N1.15trillion for the period between January and August, 2022.
A copy of the public presentation of the 2023 proposed budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government planned to borrow N6.10trillion in 2022.
A breakdown shows that the Federal Government planned to get N3.53trillion from domestic creditors and N2.57trillion from foreign creditors.
According to the document, the Federal Government estimated that it would borrow N4.07trillion between January and August, 2022.
However, the Federal Government accumulated N5.33trillion debt within the period under review, which is N1.15trillion higher than the expected N4.07trillion planned debt.
A further breakdown showed that the Federal Government borrowed N4.82trillion from domestic creditors and N510.21billion from foreign creditors.
The debt from domestic creditors includes the Federal Government’s borrowing from the Central Bank of Nigeria through the Ways and Means Advances.
Ways and Means’ Advances are loan facilities through which the CBN finances the shortfalls in the government’s budget.
The Federal Government recently borrowed a total of N4.61trillion from the Central Bank of Nigeria through Ways and Means Advances between January and August, 2022.
This means that majority of the Federal Government’s domestic debt came from its debt to the CBN.
The CBN said on its website that the Federal Government’s borrowing from it through the Ways and Means Advances could have adverse effects on the bank’s monetary policy to the detriment of domestic prices and exchange rates.
“The direct consequence of central banks’ financing of deficits are distortions or surges in monetary base leading to adverse effects on domestic prices and exchange rates i.e. macroeconomic instability because of excess liquidity that has been injected into the economy,” it said.
The World Bank had, last November, warned the Nigerian government against financing deficits by borrowing from the CBN through the Ways and Means Advances, saying this put fiscal pressures on the country’s expenditures.
Despite warnings from experts and organisations, the Federal Government has kept borrowing from the CBN to fund budget deficits.
Also, the N22.07trillion owed the apex bank by the Federal Government is not part of the country’s total public debt stock, which stood at N42.84trillion as of June 2022, according to the Debt Management Office.
The country’s debt rose by N30.72trillion between July, 2015 and June, 2022, according to data released by the DMO.
According to the DMO statistics, Nigeria’s total debt as of June 30, 2015, stood at N12.12trillion.
By June 30, 2022, the figure had risen to N42.84trillion, which showed an increase of 253.47per cent.
Despite the high increase in debt over the years, the government still plans to borrow N8.4trillion in 2023.
Experts have kicked against the Federal Government’s proclivity for debt, which they have described as unsustainable.
An Abuja-based policy think tank, Agora Policy, said Nigeria’s debt was unsustainable and put the country in a perilous situation due to the high cost of debt servicing.
The group advised the government to deepen and diversify sources of revenue, re-calibrate expenditure to spend smartly, and invest efficiently.
A former President of the National Accountants of Nigeria, Dr Sam Nzekwe, agreed that Nigeria’s debt was unsustainable.
He said, “The debt is huge. If you look at the budget, you will see that a huge sum of money is used to service debts. This is just the debt service charge. We are yet to talk about the principal.”
He also said that instead of focusing on the debt to GDP ratio, the focus should be on debt service to revenue ratio.
He further noted that the country had a revenue problem.
A development economist, Dr AliyuIlias, criticised the government for its constant reliance on borrowing, which was not healthy for the economy.
He further urged the government to seek better ways of generating revenue rather than persistently borrowing.
However, the finance minister, when she appeared before the House of Representatives Committee on Finance, last week, explained that the over-borrowing was a deliberate plan to ensure that money was released early for capital projects.
She said, “We are borrowing faster than what we had prorated. It was a conscious decision to make sure we have funds early enough to release for the implementation of capital projects.”
Meanwhile, the amount budgeted for recurrent expenditures has increased from N2.61trillion spent in 2015 to N8.27trillion in the proposed 2023 budget, according to data from the Budget Office of the Federation.
This shows an increase of N5.66trillion or 216.86per cent in six years, fuelling concerns over the rising cost of government overheads amid declining revenue and weakening economy.
Analysis revealed that recurrent expenditure recorded significant increases each year during the period under the review.
The former President, Dr Goodluck Jonathan, approved a N4.49trillion budget for 2015, which included a N2.61trillion recurrent expenditure.
Capital expenditure was N557billion, while money budgeted for debt service was N953.62billion.
There was a fiscal deficit of N1.08trillion.
The recurrent expenditure rose slightly by 1.53per cent or N40billion to N2.65trillion in 2016, out of a total expenditure of N6.06trillion.
Capital expenditure was N1.59trillion, while money budgeted for debt service was N1.48trillion.
There was a fiscal deficit of N2.2trillion.
In 2017, it rose to N2.99trillion, representing an increase of N340billion or 12.83per cent.
Out of a total expenditure of N7.44trillion, capital expenditure was N2.18trillion, while money budgeted for debt service was N1.66trillion.
There was a fiscal deficit of N2.36trillion.
In 2018, recurrent expenditure rose by N520billion or 17.39per cent, raising the total recurrent expenditure to N3.51trillion.
Out of a total expenditure of N9.12trillion, capital expenditure was N2.87trillion, while money budgeted for debt service was N2.01trillion.
There was a fiscal deficit of N1.95trillion.
The following year, the recurrent expenditure increased by N540billion or 15.38per cent to N4.05trillion.
Out of a total expenditure of N8.91trillion, capital expenditure was N2.09trillion, while money budgeted for debt service was N2.25trillion.
There was a fiscal deficit of N1.95trillion.
The recurrent expenditure was N4.84trillion in 2020, out of a total expenditure of N10.59trillion.
This shows an increase of N790billion or 19.51per cent.
Capital expenditure was N2.47trillion, while money budgeted for debt service was N2.7trillion.
There was a fiscal deficit of N2.28trillion.
However, the increase in 2020 may be attributed to the inclusion of the new national minimum wage in the budget.
In the 2022 budget, the recurrent expenditure hit N6.91trillion, representing an increase of N1.27trillion or 22.52per cent.
Out of a total expenditure of N17.13trillion, capital expenditure was N5.47trillion, while money budgeted for debt service was N3.88trillion.
There was a fiscal deficit of N6.26trillion.
President MuhammaduBuhari (rtd), recently presented the proposed 2023 budget to the National Assembly.
The proposed 2023 budget shows that the proposed recurrent expenditure is N8.27trillion, which is an increase of N19.68per cent or 1.36trillion from the previous year.
Out of a total expenditure of N20.01trillion, capital expenditure was N4.93trillion, while money budgeted for debt service was N6.65trillion.
There was a fiscal deficit of N10.7trillion.
The 2023 recurrent expenditure represents 41.33per cent of the nation’s entire budget and is the single largest element of the budget.
It is also N3.78billion more than the total expenditure for 2015.
From the 2023 recurrent (non-debt) expenditures, personnel costs gulped N4.08trillion; pensions, gratuities and retirees’ benefits took N721.46billion, while overheads cost N443.28billion.
Within the years of the Buhari’s regime, including 2015, a total of N38.82trillion has been budgeted for recurrent expenditures.
This total exceeds the N20.01trillion total budget proposed for the 2023 fiscal year.
Experts have lamented the constant increase in the nation’s cost of governance.
In May 2021, the Federal Government, through the Minister of Finance, Zainab Ahmed, had said it was working to reduce the high cost of governance by doing away with unnecessary expenditures, which might include salary cuts for workers.
However, the increase in recurrent expenditures in the 2023 budget suggests the government may have backpedalled on the plan.
Economic and financial experts have expressed concerns over what they described as significant increases in government expenditure, saying they were worrisome because a large chunk of government revenue had been allocated to recurrent expenditure instead of capital projects that drove economic growth.
The Registrar and Chief Executive Officer, National Institute of Credit Administration, Prof Chris Onalo, has stressed the need for the government to streamline its expenditure in order to manage its debt profile.
He said, “Everybody is concerned about the rising debt profile. And the reason it is going in that direction is because first, our recurrent expenditure is too big. When you borrow money, you don’t borrow to pay salaries. You don’t borrow to finance recurrent expenditure. That is where we have the biggest problem.
“The size of our civil service needs to be trimmed down. Some of the ministries have to be allowed to go. And then, we need a very serious audit of the Federal Government’s workforce. And until we do that, we will not be able to run the civil service system transparently. The government expenditure profile needs to be streamlined very seriously.”
An Associate Professor of Economics at Pan Atlantic University, Dr OlalekanAworinde, recently linked the development to rising salaries and the upcoming election.
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WASSCE: RSG Distributes Science Materials To Secondary Schools
The Rivers State Government has distributed science equipment and materials to all senior secondary schools across the state to support students during the ongoing West African Examinations Council exams and to strengthen practical learning.
Flagging off the distribution at the Rivers State Senior Secondary Schools Board premises in Port Harcourt, on Monday, the State Commissioner for Education, Dr. Peters Nwagor, said the move demonstrates Governor Siminalayi Fubara’s commitment to improving education standards in the State.
Nwagor said the materials were approved and provided by the state government specifically to boost the teaching and learning of science subjects, describing science education as the foundation for technological advancement, innovation, and national development.
“No society can compete globally without deliberate investment in science and technology,” the Commissioner stated.
He commended the governor for consistently prioritising the education sector by providing tools needed for effective teaching and hands-on learning.
The Commissioner directed principals to ensure that the equipment are used strictly for practical lessons in their schools, warning that any principal or administrator found diverting, hoarding, or selling the materials wil face disciplinary action under public service regulations.
Nwagor also warned against examination malpractice, saying any principal found aiding or encouraging malpractices will be decisively sanctioned.
“We must collectively restore the dignity and credibility of our educational system,” he said.
Also speaking, Chairman, Rivers State Senior Secondary Schools Board, Tony Egwurugwu, urged school heads to make judicious use of the materials for students’ benefit.
He thanked the State Government for providing the resources, and assured that monitoring mechanisms would be put in place to ensure the materials serve their intended purpose.
In his own remarks, a Board Member for Technical Education, Nwisabari Bani Samuel, expressed appreciation to the governor for prioritising education and acknowledged the Commissioner’s role in advancing education development in the State.
He said the distribution covers all senior secondary schools in the State and is intended to improve students’ performance in both internal and external science examinations.
Akujobi Amadi
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Fubara Hails Workers’ Resilience, Dedication In Rivers …Hails Tinubu’s Economic Reform
Rivers State Governor, Sir Siminalayi Fubara, has commended workers in the State for their resilience, dedication, and invaluable contributions to development in the State.
Fubara gave the commendation during the 2026 Workers’ Day celebration at Isaac Boro Park in Port Harcourt, last Friday.
Represented by his deputy, Prof. Ngozi Nma Odu, the governor noted that Workers’ Day, which originated from the struggle for an eight-hour workday in the United States, has evolved into a global event recognising the contributions of workers to national growth and development.
He described workers as the backbone of sustainable development, saying no society can thrive without their efforts.
Fubara commended Rivers workers for their loyalty and commitment to service, noting that workers play vital roles across key sectors, including education, healthcare, infrastructure and industry.
He noted that their contributions have enhanced access to quality education and healthcare, supported job creation, and stimulated economic activities across the State.
While acknowledging the economic challenges faced by many workers, including the rising cost of living, Fubara assured that the the State Government remains committed to implementing policies that will enhance workers’ welfare and overall well-being.
The governor also hailed the bold and daring economic reforms of President Bola Tinubu which, he said, have stabilized the economy, enhanced foreign exchange liquidity, lowered inflation, and achieved significant growth in the nation’s gross domestic product.
He noted that, in addition to raising the minimum wage, the President recently approved new welfare incentives for federal civil servants.
“Our economy is on an unstoppable positive path under our President, and it can only improve further for the nation and everyone. Let us continue supporting the policies and programmes of Mr President,” he said.
Fubara highlighted the importance of workers in revenue generation and governance, noting that taxes paid by workers enable government to provide security and essential social services.
He reaffirmed the State Government’s recognition of labour as a critical partner in achieving its development blueprint, appreciating workers’ daily contributions to building a peaceful, secure, and prosperous Rivers State.
The governor urged the organised labour to use the occasion to reaffirm its commitment to the progress of the State, while continuing to advocate for democracy, social justice, and improved welfare for workers.
He also expressed gratitude to workers for their service to the State and the nation, encouraging them to remain steadfast in their contributions to development.
In his address, the State Chairman of the Nigeria Labour Congress, Comrade Alex Agwanwor, commended Fubara for his steadfastness, genuine commitment, and passion for workers in the State.
He highlighted key achievements of the administration, including the implementation of the National Minimum Wage Act, the renovation of the State Secretariat, the reopening of the Rivers State Transport Company (RTC), and the consistent payment of end-of-year bonuses to public workers.
Comrade Agwanwor noted that workers, as drivers of productivity, understand the challenges involved in building a prosperous Rivers State, stressing that they are well-equipped to contribute meaningfully to the growth and development of the State.
“We have resolved not to continue complaining and lamenting while challenges persist. Instead, we must take the initiative, step out of relative obscurity, and rediscover the mission and destiny of our dear state,” he said.
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Fubara Pledges Support For Corporate Organisations In Rivers …Says PPP Business Model Responsible For NLNG’s Success
Rivers State Governor, Sir Siminalayi Fubara, has pledged the continued support of his administration for the Nigeria Liquified Natural Gas (NLNG) Limited.
Fubara gave the assurance while receiving the new Managing Director and Chief Executive Officer of the NLNG, Mr Adeleye Falade, who paid him a courtesy visit at Government House, Port Harcourt.
He assured that his administration would continue to contribute its own quota in support of the NLNG.
According to him, the success of the organisation is equally the success of the government of Rivers State and the success of the Federal Government.
“Our duty is to make sure that we support whoever is operating in our state. We are the ones here. If we don’t support you and you don’t succeed, we also will not succeed and Mr President will also not succeed.
“So, the success of your establishment is the success of our state, and overall success of Nigeria. So you can count on our support. Wherever you think we need to come in to support you, please do not hesitate to call upon us.
“You just mentioned here that your predecessor left a handover note showcasing the level of support that he got from the state. It is not going to be different in your own case. I can assure you that. I will also ensure that other units of the government will liaise with you when necessary. So even if you can’t get to me, you can always get to them and if there is anything we can do to help your establishment succeed, we will do it for you,” he said.
The governor attributed the success of the NLNG to the Public Private Partnership ( PPP) business model adopted by the Federal Government and the multinational oil companies.
The NLNG is jointly owned by Nigerian National Petroleum Corporation (NNPC) with 49%, Shell Gas B.V. with 25.6%, Total LNG Nigeria Ltd with 15%, and Eni International with 10.4%.
The partnership model allows for shared risks, costs, and expertise in the LNG sector.
The governor noted that the NLNG has not only survived the difficult business environment but has made sustained progress in the nearly three decades of its existence.
According to him, the decision of the Federal Government to allow the multinational oil companies who have the needed expertise to run the establishment while government plays a supervisory role over it has largely been responsible for its success.
“I’m very proud to say that if there is one establishment that has shown resilience, that has survived in the face of all the political issues prevalent in this country, it is the NLNG. And what is the reason? The reason is very simple. Government has no business in business. That is the truth. Leave the business for those people who can operate it. Let the government play its supervisory role to ensure that there is compliance with the laws; ensure that standards are maintained and also ensure that the right people with the needed expertise are at the helm of affairs. That’s all. I think that is the reason why we still record a lot of successes in NLNG,” he said.
In his opening remark, the new NLNG boss, Mr Adeleye Falade, who led other top officials of the company on the visit, expressed appreciation to the governor for granting them audience, and appealed to the State Government to continue to support the organisation.
“We appreciate the opportunity to meet with you and deepen this important relationship.We deeply value the support the Rivers State Government continues to extend in fostering an enabling operating environment for businesses. NLNG remains deliberate in its contribution to Nigeria’s development, and Rivers State, our primary host, continues to be central to that commitment,” he said.
Falade said the company has continued to work with its host communities to strengthen their capacity to identify, prioritise, and deliver sustainable development initiatives that create lasting impact.
According to him, communities including Amadi-ama, Abua, Ekpeye, Okrika, Kalabari, and Emohua have continued to benefit from this model.
He said that beyond community infrastructure, the NLNG has sustained investments in economic empowerment through initiatives such as Vocational Innovation and Business Empowerment Scheme (VIBES) and Micro Small and Medium Enterprise (MSME) schemes.
These, he said, were designed to support small businesses, build capacity, and stimulate local enterprise across the state.
Among officials of the company who accompanied the Managing Director were General Manager, External Relations and Sustainable Development, Dr Sophia Horsfall; Manager, Government Relations, Mr Abdul Umar; Manager, Community Relations, Dr. Yemi Adeyemi; Head of Government Relations, Mr Mike Igoni; Head of Community Liaison and Engagement, Chief Ifeanyi Umeh.
Others are Technical Assistant to Executive Leadership, Mr Hassan Saleh; Senior Media and Publicity Advisor, Mr Emma Nwatu; Government Relations Advisor, Miss Homa Nmegbu; Senior Government Relations Advisor, Mrs Kate Allison, and Audio -Visual Advisor, Mr Dawood Ahmed.
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