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Nigeria And Debt Burden

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Amidst conflicting claims that Nigeria external debt has blown up again after the country’s exit from Paris club, the House of Representatives summoned the Minister of Finance, Alhaji Mansur Mukhtar to appear before its ad-hoc committee on foreign loans on 16th February , 2010 to clarify issues pertaining Nigeria’s external debts .

Nigeria’s exit from the Paris club debt was in 2005/2006. of course the country’s debt dropped from what it used to be before the exit process commenced, the external debt stock stood at about United States $35.94billion by the end of December, 2004.

Murhktar urged the house committee to disregard insinuating of the increase in the country’s debt asserting emphatically that the debt stock dropped dramatically and substantially after the ccountry’s exit from Paris  Club (in 2005/2006). He said ; “By end –December 2006.  The stock was a much lower amount of USB 3.54 billion. The debt stock figure by end-december ,2007 was USD 3.65 billion, by end – December,2008 it was USD 3.72, and by end –December, 2009, it was USD 3.97 billion”.

It is worthy to note that….the constitution of the Federal Republic of Nigeria did not specifically make provision on borrowing. However, under the second schedule, section 4, item 7, of the exclusive legislative list, the National Assembly is conferred with the powers to make laws in respect of borrowing of money within or outside Nigeria for the purpose of the federation of a state. Pursuant to this power the National Assembly has enacted the debt management Act, 2003 and the fiscal  responsibility Act , 2007.

In particular , section  19 (1)and(2) of the DMO Act requires that the borrowing programme for every succeeding year be approved by the national assembly . In compliance with this requirement, the borrowing programme for fiscal 2010 has been included as part of the 2010 appropriation bill.

The Finance Minister clarify that state governments are not allowed to borrow directly from external source. And that a state government or its agency can obtain external loans only through the federal Government. (Fiscal Responsibility Act, Section 47 (3)). In accessing external loans, a government or its agency has to comply with the relevant guidelines and requirements which derives from responsibility Act  and the DMO Act .These include: the national debt management framework , the external borrowing guidelines and the sub- national borrowing guidelines. External borrowing by the federal and state governments within the borrowing programme included in the budget are still subjected to these guidelines by the debt management office under the authority of the minister of finance .In essence , there is effective control to ensure compliance with the provisions of the constitution and other external laws and guidelines.

In line with the current national borrowing guidelines, Nigeria’s external borrowing since the exit from the Paris Club and London Club debts has been limited to concessional sources. These credits, essentially from the international development association(IDA) and African development fund (ADF) windows , of the World Bank and the ADB, respectively, have a 40-year repayment period including a 10 –year grace period. (Murkhtar said although several loans were considered, negotiated and processed between 2007 and 2009, only $1,831.60 billion became effective during the period. The total amount drawn down between 2007 and 2009 was $1,318.22 billion , which was made up  of $880.89 million (disbursements on old loans contracted before 2007 ), and $437.33 million (disbursements on loans contracted between 2007 and 2009).

Part of the reason for the misunderstanding of Nigeria’s external debts , He said ,is the non- recognition that when Nigeria paid off its paris  club and London club debts, it did not pay off its multilateral debts, as this was neither necessary nor desirable. Only the problematic and the odious component the external debt was cleared off.

Much of the external debts remaining after the exit from the Paris and London club debts are loans from multilateral financial institution (word bank, African development bank, international fund for agricultural development, etc). The loans from this source constitute about 85% of the country’s external debt stock as at march 31, 2009. It is pertinent to note that about 83% of the interest charges: service charge of 0.75%p.a and long repayment periods of 40 years and above, including a grace period of 10 years.

In view of their long tenors, implying gradual installment payments, it is obvious that some of the outstanding loans were contracted more than 20 years ago and cannot be contributed to the last few years. Indeed, some of the loans were contracted in the 1960s, 1970s and 1980s for various infrastructural and social development projects. It is because their payments were scheduled to be gradual so as not to put serious burden of Fiscal resources, that part of them are still outstanding. That the loans have a long repayment period is beneficial, given the nature of the projects and services they financed – projects and services like basic education, health and rural water supply, as well as roads whose revenue-generating impact is at the best slow, small and indirect. More importantly, it should be noted that much of the loans were applied to the provision of social and infrastructural services over the years. There is no doubt that some of the infrastructure funded in the 1960s, 1970s and 1980s are still useful assets to the people.

While the Post-Paris Club external debt stock has remained sufficiently restrained, it does vary up and down within reasonable limits even if no new loans have been incurred. This is because old loans could still be disbursing while, at the same time, repayments of principal amounts due could be taking place. The direction of the swing in the outstanding debt stock, therefore, depends on the net result of disbursements and repayments.

Nevertheless, the Finance Minister assumed that government is committed to ensuring debt sustainability and avoiding a replace into the pre-Paris Club debt exit situation. In line with this posture, the Debt Management Office has developed a National Debt Management Framework (NDMF) to guide the policy and strategy for external and domestic borrowing by the federal and states governments, as well as their agencies. The NDMF contains specific guidelines for borrowing, designed not only to limit borrowings to sustainable levels but also to ensure that there is a value for money and that the use of funds leads to the growth, employment and poverty reduction. Further, the DMO working closely with the Ministry of Finance, the CBN, the National Planning Commission and other agencies conducts annually, a Debt Sustainability Analysis (DSA) to keep track of the statics and dynamics of the public debt sustainability under changing local and external scenarios.

For the same reason, the DMO he said is making significant progress in implementing the Template foe helping every of the 36 States of the Federation.

 

Justus Awaji

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Opinion

Other Sides In Junior Pope’s Death

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The tragic boat mishap of Wednesday, April 10, 2024, which claimed the lives of popular Nollywood actor, Mr John Paul Obumneme Odonwodo, popularly known as Junior Pope, and four others, has sent shock-waves across the Nigerian movie industry, and set the social media buzzing with reactions.
A contingent of 12 movie crew members had set out for a boat journey from the River Niger Cable point, a waterside jetty at Asaba in Delta State, to cross to the other side of River Niger, into Anam, a riverine community in Anambra State, for the shooting of a movie set titled ‘Another side of Life’ produced by Adanma Luke. Unfortunately, a series of avoidable events culminated the journey into an ill-fated expedition that sent fives lives to ‘the other side of life.’ The incident made the movie’s eventual ban a nullity, having played-out its symbolic meanings in real life while in the making, rather than on envisaged screens.
An avoidable incident, it exposed our society’s casual attitudes towards marine and general safety, as well as our endemic superstitions, while telling, on several flaps, other side tales of reality in the accounts of what transpired during the production, or rather, play of Adanma’s ‘Another side of Life.’
While veteran actor and Senior Adviser on Military Relations to the President of Actors’ Guild of Nigeria, Mr Steve Eboh, claimed he missed joining the ill-fated boat because he arrived too early before the crew, and had to go back, the producer, Adanma Luke, claimed she missed it because she came too late.
A journey’s jolly take-off from Asaba, Delta state, which ended tragically in its return from the other side in Anambra State, proved to be a rascally journey that showed the other side of rascality, even as T. C. Okoye claimed that pre-performing of obeisance to some marine spirits saved his life. But it was T. C. Okoye who had to hang unto a boat’s anchor in the face of death, rather than rely on the powers of the spirits he had appeased with Fanta, to await rescue from mortal men – sensible men, whose advise that one needs wear life jack during marine journeys – he had forsook, yet gave glory to his rituals after rescue.
Conversely, one may flip the flap to consider the other side of T. C. Okoye’s rituals to ruminate on other possibilities. Could the ringing of bells, spraying of money and snacks, and pouring of Fanta, have evoked the anger of the ‘marine spirits’ as rumoured, or distracted the boat driver, to the point of accident? And as reported by The Punch, what’s the significance of T. C. Okoye ‘dashing’ ritual money to innocent children whom circumstance made to be by the riverside?
Also, the argument by Mr Steve Eboh, that “If the star actors in that boat had wanted to wear life jackets, they would have been given the jackets” holds no ground, because the guild, as well as all the marine transport stakeholders, should have enforced strict safety compliance by all voyagers. It is therefore commendable that the Anambra State Commissioner of Police, Aderemi Adeoye, has ordered exhaustive investigations into the matter to determine criminal liability of all persons involved.
However, in the melee of pandemonium that accompanied rescue efforts, Nollywood celebrities, our society’s supposed role models, prioritized superstitious rescusitation over sure medical practice, rushing victims between spiritualists and hospitals, until a ‘pope’ whose work and journey had bound with the superstitious, died amidst superstition. Indeed, it’s during crises, when people care less about ‘packaging,’ that truth and the real personality of humans stand bare and naked.
While medical personnel who got their chance late had certified Jnr Pope dead, our star-persons held unto their spiritual advisers who claimed his spirit coming back to life, up until reality finally dawned that pope’s spirit has permanently crossed to the other side of life.
Regrettably, the reality has not fully dawned, otherwise three corpses shouldn’t have been buried by the riverside as dictated by spiritualists, and Jnr Pope’s family shouldn’t be worried about what would happen, as rumoured threatened of his three children, if his corpse is not buried by the riverside. However, it appears that having encountered the influence of a frontline celebrity, the spirits have turned capricious by bending divinely demands to accepting two cows, as rumoured, in exchange for Jnr Pope’s corpse being buried elsewhere.
According to the Anambra State Police Public Relations Officer, SP Tochukwu Ikenga, a team of rescuers comprising men of the Anambra State Marine Police Command, the National Inland Waterways Authority (NIWA) and the Maritime Workers Union of Nigeria, with the aid of fisher men, rescued seven persons alive to the Anambra side, while two retrieved corpses were sent across the other side, to the Delta State Marine Police Command jetty where Nollywood officials stood waiting. Of other three victims, two corpses were rescued next day, while a third was thrown out by river tides, all of whom; Abigail Fredrick (Vice Chairman of Costumer Designers Guild of Nigeria, and Akwa-Ibom State-born make-up artist), Precious Oforum (Sound engineer) and Joseph Anointing (Gaffer), have since been buried by the riverside, according to local belief.
However, what the police PRO’s statement didn’t reveal is if Jnr Pope’s corpse was sent to the other side in Delta after all the back and forth between spiritualists and medical personnel within Anambra, or if it was sent straight upon rescue to Delta state, but mysteriously found its way back to Anam, on the Anambra side.
It’s unfortunate that Nollywood which set out in its early days to expose superstitious beliefs and practices in our societies, in the hopes of enlightening the minds of the masses, and to curb the manace, has made many believe it’s rather reinforcing superstition in the ways it condicts the movie industry business.
Members of the showbiz in general, now appear to be key protagonists of superstition to the point that, being perceived as role models, so many youths have been drawn to lives of unrealistic dreams and materialism, which often get pursued through ritualism, with its attendant crimes.
Joseph Nwankwo
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Opinion

The Value Of Books And Reading

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The quality, quantity and diversity of books produced by a society are important indicators of that society’s level of development. . . .”–Valdehusa (1985).
April 23 of every year is marked around the world as ‘World Book and Copyright Day.’ Also known as ‘International Day of The Book,’ it is a Day set aside by the United Nations Educational, Scientific and Cultural Organisation (UNESCO), to promote reading, publishing and copyright. The Day aims to change lives through a love of books and shared reading.  The theme for the 2024 ‘World Book Day’ is: “Read Your Way.” This year’s theme calls on everyone to let go of pressure and expectations, giving children a choice – and a chance to enjoy reading.
According to Audrey Azoulay, Director-General of UNESCO: “Books have the unique ability to entertain and to teach. They are at once a means of exploring realms beyond our personal experience through exposure to different authors, universes and cultures, and a means of accessing the deepest recesses of our inner selves.”  Therefore, the power of books should be leveraged to combat isolation, reinforce ties between people, and expand our horizons, while stimulating our minds and creativity. It is critical to take the time to read on our own, or with our children.
Did you know that The Bible stands out as the most widely translated and distributed book worldwide? Yes, the Bible is by far the most widely translated and distributed book! Its wisdom has reached and helped more people than any other book or publication. 96.5 percent of the world’s population has access to the Bible. The Bible is available (in whole or in part) in over 3,300 languages, and the estimated number of copies of the Bible produced is 5billion, far more than any other book in history.  Which other book(s) do you enjoy or have you enjoyed reading? As for me, one book I am currently enjoying reading is a 400 – 500 page healthcare handbook titled, Where there is no doctor, authored by David Werner. It is a very valuable healthcare handbook that I have found to be very very beneficial! In fact, this healthcare handbook has been fondly described by some as “the ‘Bible’ of health education,” and I strongly recommend that every family should have a copy of this book at home. Apart from this book, I also enjoy reading for pleasure children’s books, such as those I have found on booksmart.worldreader.org and www.africanstorybook.org. What about you? What books have you enjoyed or do you enjoy reading? Do you know about the book industry? There are three major sectors of the book industry. They are: publishers, booksellers and libraries.
Book publishing is channelled towards promoting learning and expanding knowledge.  In a strict sense, book publishing starts from the point of conceptualisation of the ideas for the book by the author, and ends at the very last stage – the end-user (the reader). The history of book publishing in Nigeria can be traced to the establishment of the very first publishing press in Calabar, in 1846, by Rev. Hope Waddel of the Presbyterian Church of Scotland Mission. The press was used to print Bible lessons and later arithmetic books for schools.
In 1854, another Missionary based in Abeokuta, Rev. Henry Townsend of the Church Missionary Society (CMS), established a Press. Five years later (1859), he used it to print the very first newspaper in Nigeria – ‘Iwe Irohin.’ Thereafter, notable Nigerians like Herbert Macaulay established the first indigenous newspaper in 1926, called Lagos Daily News. Also, in the same year, Daily Times made its debut.  In 1949, Oxford University Press (OUP) floated a sales outlet in Nigeria. This action attracted many foreign-based publishing firms to Nigeria, such as Macmillan, Longman and others. The first published book in Nigeria by OUP was released in 1963, when its local branch published ‘Ijala Ere Ode’, a Yoruba poetry genre by Oladiipo Yemitan. Aside from the foreign companies, many other home-based publishing houses were architected by indigenous entrepreneurs. The book publishing industry in Nigeria has continued to enjoy drastic growth ever since.
However, in the last few decades, the Nigerian indigenous book publishing industry has experienced a downturn due to numerous challenges facing the industry, including: book piracy, proliferation of unqualified author -.publishers, lack of capital, and inability to provide adequate numbers of high-quality books.
Other challenges include: poor reading culture, infrastructural decay, dearth of expertise, incessant rancour among the major stakeholders, and so forth.
Therefore, here are some suggestions for developing our book publishing industry in Nigeria: Stakeholders such as government, publishers, authors, regulators, booksellers, libraries, and readers should cooperate among themselves and contribute their quota immensely towards the development of a virile book publishing industry.  Private investors such as banks, finance houses and influential individuals should participate, especially in terms of massive capital injection.
Ighakpe writes in from FESTAC Town, Lagos.
 Daniel Ighakpe
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Opinion

Let The Poor Breathe

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In  the history of our nation, only petroleum products have suffered more incessant increments in prices than electricity supply in all public products and services. Unfortunately, those are the two main things that impact mostly on our lives and national economy. While the increment in petroleum products’ prices is always attributed to the price of crude oil at the international market and the need to curb the scarcity by encouraging the supply, the increment in the electricity tariff has never had any justifiable reason and no service improvement afterwards. In fact, the electricity supply has gone far worse now that the tariff has gone up by over 300 percent. One of the underlying reasons for the planned electricity subsidy removal as unconsciously relayed by the Minister of Power on TVC News is the sabotage of the system by those collecting the subsidy money to maintain the assets. He said: “These are assets that we spend the country’s money on, and our brothers deliberately sabotage them. So, you can see that some people are hiding somewhere that do not want this sector to work”.
Just as the petroleum subsidy must go because the government is too impotent to handle the petroleum subsidy racketeers, the electricity subsidy has to also go at the expense of the poor masses and no one has been prosecuted for it.
When the oligarchs rob us blind, the poor masses are made to pay. The only tool that seems to be at the disposal of this government for the combat of economic challenges brought by the corruption of the political elites is to make the poor masses suffer deprivations.
No doubt, stopping the monkeys from the banana plantation is a Herculean task. But those with their thinking caps on will not need to destroy the banana plantation to ward off the monkeys. The Federal Government has taken several decisions in the last one year that are akin to milking the debilitated cow to feed the virile buffalo. The electricity tariff now has to go up to make more money for the oligarchs that sold our collective heritage to themselves and have been taking money from us for next-to-nothing service delivery.In order to win the supports of the poor masses of Nigeria, the tariff was classified and made to seem like it isn’t going to affect the poor, while the poor will invariably be the worse for it. Most of those on Band A electricity tariff, who are to be paying very exorbitantly for electricity are companies producing most of our consumables and utility items. With the high cost of electricity, the production cost will go high and consequently, the cost of the products.  By the time the effects of the new electricity tariffs take full manifestation, almost everything that can make life meaningful will be beyond the purchasing powers of most Nigerians.
I can not help but to wonder what exactly is left for us to benefit as citizens of this country. Nigeria is rapidly moving towards a capitalist nation, where everything is commercialised and profit at the expense of the citizens is the priority. Medicare and even public education are now being run for profit. The government goes about with the shenanigans of education for all, while it is making education unaffordable to most Nigerians. Even the students’ loan, as badly conceived as it is, is also with interest. Those who have been in power since our democratic dispensation belong to that generation of Nigerians that the nation had been very benevolent to. They were educated for free, got paid salaries as students and given jobs on a platter after graduation. This generation of people got everything from Nigeria and unfortunately have refused to give anything back. They have not only been ungrateful to Nigeria; they have also systematically run the country aground. What a waste of investment Nigeria has made in them! While some countries in this same Africa hardly experience power outage in a year, our own B and A category would at best experience four hours of power outage in a day. These are the ruins they have led our country to in 21st century.
The timing and manner that these anti-welfare policies were introduced are indicative of lack of concern for the citizens of this country. A lot of Nigerians have lost their lives in choking circumstances. Please, let the poor breathe! While trying to rebuild Nigeria, the poor masses should not be made to feel like the eggs in the preparation of omelette. It is very obvious that you do not care about how many eggs are broken, so long as you can have the  hen.

Abdulrasheed   Rabana

Rabana, is a public affairs analyst .

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