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Debt Deficit: DMO, Centre Task Incoming Administration On Revenue Generation

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Debt Management Office (DMO) and African Centre for Leadership, Strategy and Development (Centre LSD) have tasked the incoming government on revenue generation to tackle Nigeria’s debt deficit.
The stakeholders made the call on Wednesday, in Abuja at a one-Day Leadership and Development Policy Dialogue Series (LDPDS) with the theme “Nigerian Debt Sustainability Threat: Issues, implications, Lessons and Solutions for the Next Administration”
Director, Portfolio Management Department of the DMO, Mr Dele Afolabi, said that Nigeria had to be deliberate with revenue generation to harness a balanced economy because currently, the revenue did not match the high debt servicing burden of the country.
According to Afolabi, this is imperative since revenue pays debt because the more revenue you have ,the less you have to borrow going forward .
He said although Nigeria had the highest Gross Domestic Product(GDP) in Africa but its government generated revenue to GDP ratio is lower than that of most African countries and this can be tackled through taxes among others.
“The people are not paying the right taxes ,we don’t have the right culture of taxation and revenue for government. So, I think ,looking at the next government ,the key focus should be on how to grow government revenue.
“Most people really don’t pay taxes ,apart from people that receive salaries in the formal sector a lot of people are either not paying tax at all or not paying as they should ;so there a lot of leakages in terms of government revenue.
“If we have the highest GDP in Africa, then we should also have the highest revenue but that is not the situation.’’
Afolabi, therefore, recommended that government should reduce its over dependence on crude oil and harness other resources and solid minerals and block all leakages and grow revenue to reduce accumulating debt.
He also called for stringent action against tax defaulters adding that in other climes ,evading tax payment was criminal and people go to jail for it.
The Executive Director of Centre LSD, Mr Monday Osasah, said that the dialogue was imperative following the Federal Government outcry that Nigeria’s debt sustainability had become threatened following the recent rise in its revenue shortfalls.
Osasah said that according to the Minister of Finance, Nigeria is expected to spend 60 per cent of its total revenue on debt servicing in 2023 and this portended a grave threat to the economy.
“According to Nigerian Bureau of Statistics (NBS) in its Nigerian domestic and foreign debt Q3 2022.
“Nigeria’s debt stock which includes external and domestic debt rose from N42.84trillion or 103.31 billion dollars in the second quarter of the 2022 to N44.06 trillion or 101.91 billion dollars in the third quarter same year.
“The debt figure comprised the debt stock of the Federal Government, the 36 states and FCT.
“The burgeoning trend of our debt is worrisome especially when it is now being used for debt servicing rather than for growing and developing our infrastructure .’’
Osasah said that Nigeria’s debt service-to-revenue ratio is put at 83 per cent of quarter 3,2022 and the ratio had been on the rise as Nigeria faced a dwindling government revenue while government expenditures have increased.
He said that considering the grim reality, the need for begin to think and commence advocacy for budgetary reforms, fiscal prudence and revenue innovation for the next government was paramount.
He said without these, it would difficult for the incoming administration to rescue the country from the weakening debt sustainability trend.
Prof. Isah Mohammed ,a Professor of Transport and Financial Economics ,Department of Economics ,University of Abuja, a key speaker at the event, said public debt was a crucial tool for government to finance public spending .
Mohammed said that this was, especially when it is challenging to increase taxes and cut spending and the procedure has resulted in government having enormous unpaid debts overtime.
“Another way to accelerate economic growth is contracting reasonable debt to pay for infrastructure and public projects.
“In order to encourage long-term development ,the government should also ensure that borrowing is done on conditions that are consistent with entrenching debt sustainability and that borrowed funds are wisely invested in the economy’s value added sectors.’’
Mohammed said that Nigeria should accomplish this to resolve its debt problems, improve its credit standing and achieve sustainable growth.
He also called for effective tax administration to tackle revenue challenges and the need to ensure compliance to remittances devoid of all form of evasion in the system.

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NAFDAC Alerts Nigerians To EU Ban On Dex Soap

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The National Agency for Food and Drugs Administration and Control, NAFDAC, has alerted Nigerians on the ban on Dex Luxury Bar Soap (No 6 Mystic Flower), by the European Union (EU).
The notification is contained in a public alert with No. 012/2024, signed by NAFDAC Director-General, Prof Mojisola Adeyeye, and issued to newsmen in Abuja yesterday.
“The product does not comply with the cosmetic products regulation; it also contains Butyphenyl Methylpropional (BMHCA), which is prohibited in cosmetic products due to its risk of harming the reproductive system.
“It also causes harm to the health of unborn children and may cause skin sensitisation.
“It is as a result of the defective nature of the product that the EU banned it.
“The products is not in NAFDAC database; importers, distributors, retailers and consumers are to exercise caution and vigilance within the supply chain,” she said.
NAFDAC boss urged marketers and consumers to avoid the importation, distribution, sale and use of the product, stressing that product’s authenticity and physical condition must be carefully checked.
She enjoined members of the public in possession of the product to discontinue sale or use, and submit stock to the nearest NAFDAC office.

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Communities, Volunteers Ready To Face Upcoming Floods – Red Cross

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The Country Manager of the British Red Cross in Nigeria, Karsten Voigt, says communities and volunteers are ready to face the challenges expected with the upcoming floods.
Voigt said this at the sidelines of the 56th Annual General Meeting of the Nigerian Red Cross Society (NRCS), Lagos Branch.
The Tide’s source recalls that the British Red Cross donated resilience items to some communities in December 2023, to help mitigate the effects of flooding.
The items included cash, rain boots, rain coats, mosquito nets, handheld flashlights, solar powered lights with radio, USB chargers and a bridge to link the communities.
The communities that benefited included Agboyi 1, Agboyi 2, Agboyi 3 and Odo Ogun in Kosofe Local Government Area of the state.
Voigt said the Red Cross had measured the impact of the project in the communities and noticed that a lot of progress had been made.
According to him, apart from the cash and items given to the communities, simulation exercises have also been carried out to prepare the volunteers ahead of the floods.
“We have seen that people used the cash to address immediate needs they have after floods.
“Many households have used part of the cash to build up businesses.
“The solutions we have given to them are not only addressing their immediate needs after the disaster but actually building family income for their future,” he said.

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Nimet Forecasts Three-Day Sunshine, Thunderstorms

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The Nigerian Meteorological Agency (NiMet) has predicted sunshine and thunderstorm from Monday to Wednesday across the country.
NiMet’s weather outlook released yesterday in Abuja, forecasts sunny skies on Monday with a few patches of cloud over the northern cities and prospects of thunderstorms over parts of Taraba later in the day.
According to the forecast, sunny skies with patches of clouds are expected over the North Central region with prospects of morning thunderstorm over parts of the Federal Capital Territory, Nasarawa, Kogi and Kwara States.
“Later in the day, isolated thunderstorms are anticipated over parts of the Federal Capital Territory, Kogi and Benue States.
“The southern region is expected to be cloudy with spells of sunshine with prospects of morning thunderstorms over parts of Oyo, Ekiti, Ogun, Ondo and Lagos States.
“ In the afternoon/evening periods, isolated thunderstorms are expected over parts of Enugu, Ebonyi, Abia, Ekiti, Ogun, Imo, Oyo, Ondo, Edo, Cross River, Akwa Ibom, Delta, Rivers, Lagos and Bayelsa States,” it said.
NiMet also anticipated sunny skies on Tuesday with few patches of cloud over the northern states with prospects of isolated thunderstorms envisaged over parts of Bauchi, Gombe, Adamawa, Taraba and Kaduna States during the afternoon and evening hours.
It envisaged the North Central region to be sunny with patches of cloud during the morning hours.
The agency also envisaged isolated thunderstorms over parts of the Federal Capital Territory, Plateau, Nasarawa, Kogi, Benue, Kwara and Niger States, later in the day.
“Cloudy atmosphere with intervals of sunshine is expected over the inland and coastal areas of the South, with chances of morning thunderstorm over parts of Cross River, Bayelsa, Akwa Ibom and Rivers States.
“In the afternoon/evening periods, isolated thunderstorms are anticipated over parts of Osun, Ekiti, Ondo, Imo, Anambra, Enugu, Abia, Oyo, Edo, Delta, Cross River, Akwa Ibom, Lagos, Rivers and Bayelsa States ,” it said.
It predicted a sunny atmosphere on Wednesday, with patches of cloud over the northern region, during the forecast period.
“Sunny skies with patches of clouds are expected over the North Central region with chances of isolated thunderstorms over parts of Plateau, Kogi, Nasarawa, the Federal Capital Territory and Benue States, during the afternoon/evening periods.
“ Cloudy atmosphere with intervals of sunshine is expected over the inland and coastal areas of the South with prospects of thunderstorms over parts of Anambra, Imo, Enugu, Ebonyi and Abia.”
Other states to experience cloudy atmosphere, are “Edo, Ondo, Ekiti, Ogun, Oyo, Cross River, Lagos, Akwa Ibom, Rivers, Delta and Bayelsa States, later in the day.”
NiMet urged the public to take adequate precaution as strong winds might precede rains in areas where thunderstorms were likely to occur.
The agency also urged airline operators to get updated weather reports and forecasts from its office for effective planning in their operations.

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