Connect with us

News

Debt Servicing May Gulp 100% Of FG’s Revenue By 2026, IMF Warns

Published

on

The International Monetary Fund (IMF) has warned that debt servicing may gulp 100per cent of the Federal Government’s revenue by 2026, if the government fails to implement adequate measures to improve revenue generation.
The IMF’s Resident Representative for Nigeria, Ari Aisen, disclosed this while presenting the Sub-Saharan Africa Regional Economic Outlook report in Abuja.
According to him, based on a macro-fiscal stress test that was conducted on Nigeria, interest payments on debts may wipe up the country’s entire earnings in the next four years.
Early this year, it was disclosed that the Federal Government spent N4.2trillion on debt servicing between January and November, 2021, which represents 76.2per cent of the N5.51trillion revenue generated during the period.
The Federal Government plans to spend N3.61trillion on servicing Nigeria’s debt burden in the 2022 fiscal period, which represents about 34per cent of the 2022 projected revenue of the Federal Government.
Nigeria’s debt stock, which is about N39.56trillion as of December, 2021, is likely to reach N45.95trillion following plans by the Debt Management Office (DMO) to borrow an additional N6.39trillion to finance the 2022 budget deficit.
Speaking in Abuja, Aisen expressed worry that many African countries, including Nigeria, risk sliding into a critical debt servicing problem unless urgent actions were explored to significantly raise revenue.
Aisen said, “The biggest critical aspect for Nigeria is that we have done a macro-fiscal stress test, and what you observe is the interest payments as a share of revenue and as you see us in terms of the baseline from the Federal Government of Nigeria, the revenue almost 100per cent is projected by 2026 to be taken by debt service.
“So, the fiscal space or the amount of revenues that will be needed and this without considering any shock is that most of the revenues of the Federal Government are now, in fact, 89per cent and it will continue if nothing is done to be taken by debt service.
“It is a reflection of the low revenue of the country. The country needs to mobilise more revenue to be able to have macroeconomic stability. It has become an existential issue for Nigeria.”
He further lamented that being an oil exporter, Nigeria was not only unable to take advantage of the current global high oil prices to build reserves due to the subsidy on petroleum products.
According to him, Nigeria’s subsidy bill would likely hit N6trillion by the end of this year at the current monthly subsidy bill of N500billion.
Aisen, however, expressed optimism that the Dangote Refinery would reduce fuel importation when completed, in order to reduce the subsidy burden.
He further warned that soaring food prices and next year’s general election are threats to the country’s economy.
Aisen said “persisting insecurity – particularly banditry and kidnapping – and the forthcoming 2023 elections that may affect the performance of the economy”.
The IMF Rep explained that Nigeria received $3.4billion in Special Drawing Rights and an equal amount in addition to a loan from the Fund, bringing the total loan since 2020 to $6.8billion.
In his remarks, the Director-General of the Budget Office, Ben Akabueze, disagreed with Aisen on his debt service-to-revenue figures but agreed that Nigeria is spending a significantly high amount on debt servicing.

Continue Reading

News

We’ll Drive Tinubu’s Vision in Rivers With Vigour – Fubara  …Inaugurates Dualized Ahoada/Omoku Road ….Debunks Rift With RSHA

Published

on

Rivers State Governor, Sir Siminalayi Fubara, has stated that he will lead Rivers people to galvanize support for President Bola Tinubu to drive the vision and objectives of the Renewed Hope Agenda in the State with vigour.

The governor, who joined the ruling All Progressives Congress (APC), on Tuesday, explained that his decision to join the APC was not for personal interest but for the overall benefit of Rivers State.

Fubara disclosed these while inaugurating the extension of the dualized Ahoada/ Omoku Express road in Ahoada East and Ogba Egbema Ndoni Local Government Areas of Rivers State.

He commended the contracting firm, Julius Berger, for timely delivery of the project, saying the project is a campaign promise fulfilled which will bring economic benefits to the people and tackle issues of insecurity associated with the route.

He said his administration has remained focused in delivering democratic dividends in the state despite facing glaring challenges.

The governor thanked the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas for their continuous support, and urged his supporters to remain steadfast and also support President Tinubu who he said, has demonstrated love to Rivers State as a father.

Fubara denied having rift with the Rivers State House of Assembly, stating that his meeting with the lawmakers was stalled as a result of delay in the agreed meeting to be convened by former Governor Nyesom Wike and other stakeholders for him to meet with the state lawmakers.

“I have made every effort to meet with the Assembly members, but it is not within my leadership to initiate the meeting process.

“The arrangement was for my leader, Wike, and the elders led by Anabraba to call for a meeting with the the lawmakers.

“I’m a gentleman and principled. I can’t go behind to call them when we’ve already agreed. Whoever that tell them that I don’t want to meet with them, or I rejected proposal meant for them isn’t saying the truth,” Fubara said.

The Permanent Secretary of the Rivers State Ministry Works, Mr  Austin Ezekiel-Hart, who gave the project description, said the delivery of the project was a fulfillment of long time dream by the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas.

He said the road was previously a single lane and has now been dualised to 14.6 meters wide, complete with solar-powered streetlights with drainages.

He said the road significantly would reduce travel time between Ahoada and Omoku while improving economic activity in the region.

In his welcome address, Chairman of Ogba-Egbema-Ndoni Local Government Area, Hon. Chuku Shedrack Ogbogu, described the road as a symbol of unity, oneness, and development, thanking the governor for fulfilling his campaign promises.

On his part, the Managing Director of Julius Berger, Engr. Peer Lusbash, said the project was awarded to his company in 2023 with a completion period of 18 months which was achieved in best quality.

He added that Julius Berger enjoyed a good support from the Fubara administration, and assured to complete all ongoing projects being handled by Julius Berger on specification, especially the Ring Road project which is a legacy project.

Continue Reading

News

Fubara Expresses Commitment To Healthcare …As UNICEF Lauds RSG On Health Programmes

Published

on

Rivers State, Sir Siminialayi Fubara, has reaffirmed his commitment to ensuring good healthcare for the people of Rivers State.

?

?Governor Fubara stated  this when he played host to the Country Director of UNICEF, Wafaa Saeed Abdelatef and her management team in Port Harcourt, last Tuesday.

?

?The governor who was represented by the Secretary to the State Government, Dr. Benibo Anabraba, said he would continue to provide the necessary facilities in order to ensure accessible and good health care for all Rivers people.

?

?”We are constructing new zonal hospitals across the State. The Ahoada Zonal hospital will be commissioned in December and others are near completion.

?

?”We are grateful to UNICEF for all they have done and believe we can always work together to care for the vulnerable in the society. We appreciate your physical presence, and believe that your staff working remotely, can also do more virtually. We have a capable Commissioner of Health, Dr. Adaeze Oreh, to help foster our relationship, communication and greater collaboration,” he said.

?

?The Country Director for UNICEF Nigeria, Ms. Wafaa Saeed Abdelatef, assured Governor Fubara of UNICEF’s support to the programmes of the State Government. She appealed that health facilities such as the Oxygen Plant at Eleme Local Government Ares and the New Born Care Units be solarized.

?

?”Be assured that UNICEF will continue to work and support the programmes here in Rivers State. We have seen the Oxygen  Plant at Eleme LGA which has been effective because of the Public Private Partnership. We appeal that the plant be solarized.

?

?”I commend your leadership of the State and  assure that we are here to support your effort and assure you that you can count on our support and partnership. Rivers State is one of the states we can showcase how things are working so others can learn,” she added.

?

 

Continue Reading

News

Dangote Unveils N100bn Education Fund For Nigerian Students

Published

on

Chairman of the Dangote Group, Alhaji Aliko Dangote, has announced a N100 billion annual education support programme aimed at keeping financially vulnerable Nigerian students in school.

Speaking at the launch of the national scholarship scheme in Lagos, yesterday, Dangote said too many brilliant young people were being forced out of classrooms because of poverty.

He described education as the “strongest engine of social mobility” and a critical foundation for national development.

The initiative, funded by the Aliko Dangote Foundation, will run for ten years beginning in 2026, costing over N1 trillion in total.

Dangote said the scheme would support 45,000 scholars each year at inception, expanding to 155,000 beneficiaries annually by its fourth year, and maintaining that level for the rest of the decade.

By 2036, he said, the programme is expected to have reached at least 1,325,000 students.

“We cannot allow financial hardship to silence the dreams of our young people, not when the future of our nation depends on their skills, resilience and leadership,” he added.

A major component of the fund is the Aliko Dangote STEM Scholars programme, which will provide annual scholarships for 30,000 undergraduate students pursuing science, technology, engineering and mathematics in public universities and polytechnics.

Each beneficiary will receive tuition support aligned with the fees of their institution and course of study. Dangote said the goal is to expand access to higher education, empower innovation, and give young Nigerians the tools to compete globally.

“STEM drives development. If Nigeria must compete globally, our young minds must have the tools to learn, imagine and innovate,” he said.

Continue Reading

Trending