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$22.7bn Loan Request Meant For Infrastructure -FG

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The Federal Government has said that the proposed amount of the 22.7 billion dollars requested by President Muhammadu Buhari in the External Borrowing Plan (2016 to 2018) would be invested in infrastructure development and not consumption.
Minister of Works and Housing, Mr Babatunde Fashola, Minister of Finance, Mrs Zaynab Ahmed and Minister of State, Transport, Ms Gbemisola Saraki made this known in a public hearing before the joint house committees yesterday.
The house committees are Aids, Loans and Debt Management, and Rules and Business. According to the Debt Management Office, Nigeria’s Total Public Debt Portfolio as at June 30 stood at $83.88 billion (¦ 25.7 trillion).
The 8th National Assembly had received the proposed projects for 2016 to 2018 Medium Term (Rolling) External Borrowing Plan put at 30 billion dollars.
The ministers, however, presented the same proposal at 22.7 dollars and gave reasons why the country should have funds as soon as possible.
They emphasised that the loans would promote infrastructure development and job creation.
The Minister of Finance said that the country had a revenue-generating challenge and stressed the need to invest in sustainable projects that would generate revenue. Ahmed said the loan would be “strictly for infrastructure development.
“So that we can address the deficit that we have. We know we must comply with some criteria; every kobo borrowed will be judiciously used,” she said.
Also, Minister of Works and Housing said Nigeria’s debt portfolio and debt service were being considered.
Fashola emphasised that investing in capital projects were needed to help the country achieve a self-sustaining economy.
“As we cannot ignore the concerns about debts, so we cannot ignore the concerns and demands for the provision of life-sustaining infrastructure.
“We have passed a budget of several hundreds of billions, but the reality is that over four years, we have never received full funding for any budget. And the reason is simple, there is a deficit, and we cannot finance it.
“Some of the roads we are investing in will last for upwards of 20 to 30 years if well maintained and not abused. For rail assets, usually, the tracks will last for at least 100 years. Power plants like the Mambilla will be there for many decades.
“So, we will be spending today’s money to secure tomorrow’s assets that will sustain our growing population and growing economy.”
The Minister of State for Transport also said there was the need to complete Kano-Lagos and Niger Delta coast rails.
Meanwhile, t he Debt Management Office says the public debt stock of the country is a cumulative figure of borrowings by successive governments over many years.
The DMO said this in a statement released in Abuja yesterday .
It said that it was not appropriate to attribute the Public Debt Stock to any particular administration.
It, however, explained that President Muhammadu Buhari submitted a request to the National Assembly for approval of the 2016 – 2018 Medium Term External Borrowing Plan for the sum of 22.718 billion dollars.
“This request is not a new one as being perceived but rather it represents those borrowings which have been submitted to the National Assembly but are yet to be approved before the expiration of the eighth Assembly.
“The requests in the Plan are proposed borrowings from multilateral and bilateral lenders.
“The proposed loans are concessional, semi-concessional, long-tenored and are for the purpose of financing infrastructure and other developmental social projects.
“All of which have multiplier effects in terms of job creation, business opportunities and overall increase in Nigeria’s Gross Domestic Product.
“Also, the benefits are long term and will serve generations of Nigerians.
“The proposed New Borrowing is consistent with the subsisting Debt Management Strategy which seeks to replace short term high –interest cost domestic debt.
“With low interest long term external debt and is one of the measures that is being implemented to moderate the level of Debt Service.
“The achievements in this regard are evidenced in the declining share of Domestic Debt in the Total Public Debt from over 83 per cent in December 2015 to about 68 per cent in June 2019,” it explained.
The statement noted that Nigeria had a ceiling of 25 per cent on the total public debt stock to GDP which is Debt to GDP and it had operated within.
It said that the ratios for Dec. 31, 2018 and June 30, 2019 were 19.09 and 18.99 per cent respectively.
“The Debt Service to Revenue Ratio (Debt Service/Revenue) has however, been higher than desirable and provides strong justification for the current drive to increase Oil and Non-Oil Revenues significantly.
“The debt service to revenue for the years 2017 and 2018 were 57 per cent and 51 per cent respectively.
“The debt service figures have grown as a result of the increase in the Debt Stock and relatively high domestic Interest Rates.
“Still on the issue of debt sustainability, when compared to a number of countries, Nigeria’s Debt to GDP is relatively low but the Debt Service to Revenue is relatively high.
“The United States of America, United Kingdom and Canada had Debt/ GDP ratios of 105, 85 and 90 per cent in 2017 which were much higher than that of Nigeria.
“But because they generate adequate revenues, their debt service to revenue for the same year were 12.5, 7.5 and 7.5 per cent respectively.
“The case was also similar for Brazil, South Africa, Kenya and Mexico who had higher Debt to GDP than Nigeria (74, 53, 57 and 46 per cent respectively but had lower debt service to revenue of 32.20, 11.4, 13.2 and 13.6 per cent respectively.
“This is clear evidence that Nigeria’s revenues are low. This is further demonstrated by Nigeria’s tax to GDP ratio of only six per cent in 2018 compared to Kenya’s 15.7, Morroco 21.8, Cameroon 12.2 and South Africa 27.5 per cent in 2017″
The statement pointed out that the above figures attested to the fact that Nigeria had a revenue challenge rather than a debt problem.
According to the statement, it is in this regard that all efforts are in top gear to increase revenues through measures such as the Finance Bill and Strategic Revenue Growth Initiative.
“Overall, the justification for the borrowing is that many of the projects in the plan are for the development of infrastructure in the areas of roads, railways, waterways and power which will help to unleash the potential of the Nigerian economy.
“Other loans such as those for the educational sector will contribute to the development of Nigeria’s human capital, while loans for Agriculture will be used to diversify the economy.
“There will also be funding for Development Finance Institutions to enhance access to finance for Micro, Small and Medium Scale Enterprises.”

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Microsoft Nigeria Not Shutting Down, Presidency Replies Obi

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The Senior Special Assistant on Media and Publicity to President Bola Tinubu, Temitope Ajayi, has refuted media reports claiming the shut down of the Lagos office of Microsoft’s Africa Development Centre.
While noting that the shutdown was an “incorrect media report,” Ajayi said the organisation was “re-aligning roles” within its business, while “few roles will certainly be impacted.”
He stated this yesterday on his X handle @TheTope_Ajayi.
Tweeting, the presidential aide also faulted the tweet made late Wednesday on the same subject by the 2023 Labour Party presidential candidate, Peter Obi, labelling it a “naked dance.”
Obi had lamented the announcement on the shutdown, saying it “underscores the urgent need for comprehensive economic reforms in Nigeria.”
Obi’s tweet partly read, “The recent announcement of Microsoft Nigeria to its workers about shutting down its innovation centre in Lagos and cutting 200 jobs is deeply troubling. It underscores the urgent need for comprehensive economic reforms in Nigeria.
“This further highlights the challenges and broader issues plaguing the Nigerian economy. The closure of Microsoft’s innovation centre represents yet another significant setback for Nigeria’s aspirations to become a hub for technology and innovation in Africa.”
The former Anambra State Governor tweeted that the shutdown “raises serious concerns” about Nigeria’s “business environment for investors.”
Reacting to this, Ajayi noted, “The story that Microsoft is shutting down Nigeria office is not true. Africa Development Centre is just a department within Microsoft business in Nigeria. Contrary to incorrect media reports and Peter Obi’s naked dance, the Africa Development Centre is also not shutting down.
“Microsoft, like any other organisation, is only re-aligning roles within the business, and few roles will certainly be impacted. Affected staff, which are less than 30, will be asked to apply for new roles within Microsoft – a standard practice within the organisation.”
The presidential aide added that employees “who can’t find new roles in other departments or those who want to seek new opportunities outside the system will be asked to go. The situation at Microsoft is not anywhere near the impression of the ‘earthquake’ that Peter Obi sensationally described.”

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Dep Gov, Others Eulogise Blessing Ahiazu At 70

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Rivers State Deputy Governor Professor Mrs Ngozi Odu was among friends and well-wishers who came out to celebrate Professor Blessing Ahiazu as she turned 70.
In what would best be described as a captivating send off for a woman who spent the better part of her life in the academia, colleagues, friends, church members and a host of dignitaries converged at her residence for a warm reception.
Speaking at the event, the deputy governor of Rivers state, Prof. Ngozi Nma Odu said the celebrant is a selfless contributor to humanity, and not just the academic environment.
“Having worked closely with her over the years, while she’s celebrating 70 today, I’ll add one and half to that one, yet I call her Sister Bless. She is worthy of emulation and congratulations are in order”, she said.
Laying emphasis on the words of the Deputy Governor, the Vice chancellor of Rivers State University, Prof. Nlerum Sunday Okogbule, described Prof. Blessing as a first class academic and dogged fighter, adding that her contributions to the university development would be indelible in the sands of time.
“Being the first professor of Rivers State Library, I am proud of her virtues.
“Having worked for 44 years and served under 6 vice chancellors without query, is commendable” he said.
Eulogising her prowess, other speakers from the university Department of Library Science spoke highly of her readiness and availability to service.
Speaking about the celebration, Prof. Blessing said that the university moulded her into the dynamic woman everyone was celebrating.
She advised those in the system and those who wished to go in to be diligent in carrying out their duties.
“Those still serving should defer gratification and work first, gratification will come later. And those who seek to go in, when they go in, they should focus on the job. Greed is a killer. Quick fix is not the best attitude in life. Slow and steady, they say wins the race. And with the backing of God, they will make it”, she said.
One of the highlights of the ceremony was the lunching of her second autobiography titled “Seven Decades of Rainbow Path”
Joining a host of dignitaries and egg heads at the occasion to pay tribute and lunch the book, Professor Emeritus, and former Vice Chancellor of the then Rivers state university of Science and Technology (UniTech), Prof. Simon Achinewhu, said that the realisation that the celebrant had played her part in the Department of Library Science was soul lifting.
He prayed that she would live to see the goodness of God accomplished in her life.
Giving a review of the book, the author said, having worked in the university for over 44 years, the university environment moulded her into the woman she had become. Stating clearly, she said the book is written for her children and grandchildren
”I have sat down to write about myself. The good side and the not-so-good side of the story.
“The challenges and the exploits . So that on that last day, my children will pick it up and extract what they want and add what they will like to add and that becomes the biography of their mother.”
The author further stated that the book would encourage younger ones to learn diligence to be able to succeed in life.

John Bibor

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Methodist Church Lauds Fubara Over Peaceful Disposition

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The Methodist Church of Nigeria Diocese of Gokana, in Mogho Circuit, has commended the Rivers State Governor, Sir Siminialayi Fubara, for his peaceful disposition and creation of harmonious environment for co-existence of various ethnic groups in the State.
This was contained a communique issued at the end of their 12th synod in Mogho, and signed by Very Rev. Baridam N. C. Jason and Rt. Rev. Joseph P. Bel- Aanen, Synod secretary and Diocesan Bishop respectively.
The Synod which was attended by a large number of delegates had the theme, “ARISE AND BUILD” which was taken from the book of Nehemiah 2:18.
The church noted with pain the unbearable and excruciating suffering of people across Nigeria, mainly caused by the sudden and unplanned removal of fuel subsidy coupled with the steady decline in the value of the naira against the dollar which has triggered unprecedented rise in the cost of living generally.
“The Federal Government of Nigeria should rather focus on long-term sustainable measures in addressing the numerous challenges facing the country instead of its short-term plans of using palliatives to stop hunger and suffering in the land.
“As Church we decried the incessant callous invasion and continuous destruction of lives and properties by Boko Haram, armed bandits and Fulani herdsmen in different parts of the country.
“We equally condemn in strong terms the recent invasion of Agbeta Community in Eleme Local Government Area of Rivers State by Fulani herdsmen who not only abducted children and raped women, also destroyed farm produce worth millions of naira with their cattle, thereby causing hunger and hardship in the area,” they said.
They further used the forum to condemn in strong terms the institution of same sex marriage and transgender practices by some religious organizations in some parts of the world and called on religious and non-governmental organizations to brace up and be united in the fight against the twin sexual perversions of same sex marriage and transgender practices in Nigeria.

Tonye Orabere

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