DMO Cautions Tinubu Not To Take More Loans, Says Already Nigeria Heavily Weigh Down

June 23, 2023

The Debt Management Office (DMO) has cautioned President Bola Ahmed Tinubu against additional borrowing, saying that the country is already weigh down with loan burden to the extent that 73.5% of this year’s revenue will be used to service debt.

According to the DMO, this high Debt Service-to-Revenue ratio is unsustainable and poses a threat to debt sustainability.

Nigeria services debt with N896.7bn in Q1, 2022.

The DMO recommended to President Tinubu to focus on increasing revenue generation to achieve a sustainable Debt Service-to-Revenue ratio. It suggested raising the projected FGN revenue from N10.49 trillion to about N15.5 trillion.

These recommendations were made after analyzing the nation’s debt profile in 2022.

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DMO’s analysis revealed that the Total Public Debt-to-GDP ratio is projected to increase to 37.1% in 2023, mainly due to new borrowings, FGN Ways and Means at the CBN, and estimated Promissory Notes issuance.

While the baseline scenario indicates that the debt stock remains sustainable, the borrowing space has been reduced compared to the self-imposed debt limit of 40%.

The projected FGN Debt Service-to-Revenue ratio of 73.5% for 2023 exceeds the recommended threshold of 50% due to low revenue. This highlights the urgent need to significantly increase government revenue.

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The DMO emphasized the importance of adhering to existing legislation on government borrowing, such as the Fiscal Responsibility Act 2007 and the Central Bank of Nigeria Act 2007, to moderate the growth rate of public debt.

The DMO called for a focus on revenue mobilization initiatives and reforms to increase the country’s tax revenue to GDP ratio.

It also suggested encouraging private sector involvement in funding infrastructure projects through Public-Private Partnerships (PPP) and reducing borrowing by privatization or sale of government assets.

Experts have supported the DMO’s caution against further borrowing, highlighting the precarious nature of the debt service-to-revenue ratio. They emphasized the need for fiscal discipline, adherence to borrowing limits, and implementation of measures to improve revenue generation.

The DMO’s warning serves as a reminder of the challenges posed by Nigeria’s high debt burden.

It underscores the importance of pursuing sustainable revenue generation strategies and prudent fiscal management to ensure long-term debt sustainability and economic stability.

Results of 2022 MAC-DSA shows that the Total Public Debt-to GDP ratio is projected to increase to 37.1 percent in 2023 relative to 23.4 percent as at September 2022, due to the inclusion of the N8.80 trillion (New Borrowings) for the year 2023, the FGN Ways and Means at the CBN of over N23 trillion and

estimated Promissory Notes issuance of N2.87 trillion in the Debt stock under the Baseline Scenario.

The Country’s Debt stock remains sustainable under these criteria, but the borrowing space has been reduced when compared to the Nigeria’s self-imposed debt limit of 40 percent set in the MTDS, 2020-2023. On the other hand, FGN Debt Service-to-Revenue ratio at 73.5 percent in 2023 which exceeds the recommended threshold of 50 percent due to low revenue, which means that there is need to significantly increase Government revenue.

Under the Alternative Scenario, the Total Public Debt-to-GDP ratio at 45.4 percent in 2023 exceeds the Nigeria’s self-imposed debt limit of 40 percent, while the FGN Debt Service-to-Revenue also exceeds the recommended threshold of 50 percent.

Based on the analysis of the results of the 2022 MAC-DSA, the DMO recommends that:

1. Although the Baseline analysis projects Total Public Debt-to-GDP ratio at 37.1 percent for 2023 indicating a borrowing space of 2.9 percent (equivalent of about N14.66 trillion) when compared to the self-imposed limit of 40 percent, it is recommended that this should not be used as a basis for higher level of borrowing as was the case in the 2023 Budget.

This is because the outcome of the Shock Scenario, which is more realistic in the circumstances, exceeded the self-imposed limit.

2. The projected FGN Debt Service-to-Revenue ratio at 73.5 percent for 2023 is high and a threat to debt sustainability. It means that the revenue profile cannot support higher levels of borrowing. Attaining a sustainable FGN Debt Service-to-Revenue ratio would require an increase of FGN Revenue from N10.49 trillion projected in 2023 Budget to about N15.5 trillion.

3. With respect to expansion in fiscal deficit, there is need to strictly adhere to the provision of extant legislations on Government borrowing, especially the Fiscal Responsibility Act 2007 and Central Bank of Nigeria Act, 2007 as it relates to Ways and Means Advances, in order to moderate the growth rate of public debt.

4. There is urgent need to pay more attention to revenue generation by implementing far reaching revenue mobilization initiatives and reforms including the Strategic Revenue Growth Initiatives and all its pillars with a view to raising the country’s tax revenue to GDP ratio from about 7 percent (one of the lowest in the world) to that of its peer.

5. Government should encourage the private sector fund infrastructure projects through the Public-Private Partnership schemes and take out capital projects in the Budget that are being funded from borrowing, thereby reduce budget deficit and borrowing.

6. Government can reduce borrowing through privatization and/or sale of Government assets.

Nigerian Hajj Commission Boss Thumbs Up For Saudi Authorities Over Smooth Hajj, Umrah Management

Editorial staff

June 23, 2023

Chairman of the National Hajj Commission of Nigeria (NAHCON), Alhaji Zikrullah Hassan has commended the Saudi authorities for displaying what he called “uncommon energy and unmatched resources” in the management of Hajj and Umrah affairs.

Hassan spoke today, June 22, at the 47 Grand Symposium on Hajj, organised by Saudi Ministry of Hajj and Umrah in the Port City of Jeddah.

Represented by the commission’s Deputy Coordinator, Makkah, Alhaji Alidu Shutti, the chairman advised that the symposium be made an annual event in view of its importance and richness of its contents.

The symposium was declared open by the Saudi Minister of Hajj and Umrah, Dr Tawfiq Al-Rabiah, with the theme: “The Jurisprudence of Ease in Hajj.”

It was organised among others, for capacity building in understanding, collaborating and unifying pilgrims in particular and the Muslim world in general.

It also provided avenue to fashion out ways pilgrims would perform all pilgrimage rites with ease and relative comfort.

Th event would also harness knowledge, technological know-how, practicable actions, developments and new approach to a stress-free performance of Hajj rituals.

Side attractions at the symposium included an exhibition by different bodies of experts in the Hajj industry, technology and innovations.

Those in attendance included the President of the Commission for the two Holy Mosques and the Chief Imam of Ka’aba, Shaykh Abdur Rahman Al-Sudais, Muftis from Tunisia, Uzbekistan and Indonesia.

Others were: Heads of Security, Defence and Mashã’ir Provinces and Nigeria was represented by the Nigeria’s Consul-General in Jeddah, Amb. Bello Kazaure, while NAHCON’s delegates to the symposium were led by Shutti.

Source: NAN.

FAAC Shares N786.161 To Federal, States, Local Governments For May

Editorial staff

June 23, 2023

The Federation Account Allocation Committee (FAAC) has shared a total sum of N786.161 billion May 2023 Federation Account Revenue to Federal Government, States and Local Government Councils (LGCs).

This is contained in a communiqué issued at the end of the FAAC meeting for June, chaired by the Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein.

The communiqué said that the N786.161 billion total distributable revenue comprised statutory revenue of N519.545 billion and Value Added Tax (VAT) revenue of N251.607 billion.

It also contained Electronic Money Transfer Levy (EMTL) of N14.370 billion, and Exchange Difference revenue of N639 million.

“In May 2023, the total deductions for cost of collection was N38.238 billion and total deductions for transfers and refunds was N163.193 billion.

“The balance in the Excess Crude Account (ECA) was 473,754.57 dollars.”

The communiqué said that from the total distributable revenue of N786.161 billion; the Federal Government received N301.889 billion, State Governments, N265.875 billion and LGCs, N195.541 billion.

“A total sum of N22.855 billion was shared to the relevant States as 13 per cent derivation revenue,” it stated.

It added that the revenue received in May surpassed that of April by N204.324 billion.

“Gross statutory revenue of N701.787 billion was received for the month of May 2023.

“This was higher than the sum of N497.463 billion received in the previous month by N204.324 billion.

“From the N519.545 billion distributable statutory revenue, the Federal Government received N261.686 billion, the State Governments received N132.731 billion and the LGCs received N102.330 billion.

“The sum of N22.798 billion was shared to the relevant States as 13 per cent derivation revenue,” the communiqué said.

It said that the in month of May, the gross revenue available from the Value Added Tax (VAT) was N270.197 billion.

“This was higher than the N217.743 billion available in the month of April by N52.454 billion.

“The Federal Government received N37.741 billion, the State Governments received N125.804 billion and the LGCs received N88.062 billion from the N251.607 billion distributable VAT revenue.

“The N14.370 billion EMTL was shared as follows:

“The Federal Government received N2.155 billion, the State Governments received N7.185 billion and the LGCs received N5.030 billion,” it said.

It further clarified that from the N639 million Exchange Difference revenue, the Federal Government received N307 million, State Governments, N156 million, and the LGCs received N119 million.

“The sum of N57 million was shared to the relevant states as 13 per cent mineral revenue,” it said.

According to the communiqué, in the month of May, Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties, Value Added Tax (VAT), Import and Excise Duties increased significantly, while EMTL decreased marginally.

Source: NAN.

Kaduna Inland Revenue Shuts Down Access Bank, 7 Others, Over N419.3 Million Tax Liabilities

Editorial staff

June 23, 2023

The Kaduna State Internal Revenue Service (KADIRS) has closed down the office premises of eight private companies in the state over N419.3 million tax liabilities.

KADIR’s Head of Corporate Communications, Zakari Muhammad, told the News Agency of Nigeria (NAN) that the action was backed by a Court Order.

Muhammad identified the companies as Access Bank, N249.9 million; Transmission Company of Nigeria, Regional Officer, N56.3 million; Transmission Company of Nigeria Sub-regional Office, N67.7 million and Sky Express Airways Ltd., N5.4 million.

Others are Azman Air Services, N15.2 million; China Zhonghao Nigeria Ltd., N8.6 million; Indomie Noodle Northern Region, Kaduna, N9.3 million; and Premier Feed Mills, seven million Naira.

He explained that the revenue service obtained Court Orders to close the offices of the corporate entities for failing to file and remit the huge tax liabilities.

He said that KADIRS is empowered by law to seal the premises of any organisation that operates in the state but fail to remit relevant taxes due to the state.

He cited some of the provisions of the law as Section 104 sub-section 3 and 4 of the Personal Income Tax (Amendment) Act, 2011 and Section 37 sub-section 3 and 4 of the Kaduna State Tax Codification and Consolidation Law, 2020. Source: NAN.

Repositioning Nigeria’s Economy Requires Courage, Tinubu Tells Foreign Investors

Editorial staff

June 23, 2023

President Bola Ahmed Tinubu has confessed that repositioning Nigeria’s economy towards attracting investors from both within and outside the country requires Courage and determination on the part of the leader.

He said that the ongoing reforms, starting with removal of fuel subsidy and streamlining of exchange rate are some of the measures he had so far taken to bring about economic rejuvenation and that they will be sustained for a more competitiveness.

President Tinubu spoke today, June 22, while hosting the President and Chairman of the Board of Directors of African Export-Import Bank (Afrexim), Professor Benedict Oramah and President of European Bank for Reconstruction and Development (EBRD), Odile Renaud–Basso, in separate meetings, on the sidelines of the Summit for New Global Financing Pact ongoing in Paris, France

He insisted that his government will build an economy that attracts Foreign Direct Investment (FDI), and asked investors to take advantage of the emerging opportunities in Nigeria.

“We are ready for business. We are prepared to welcome investments.”

The President assured the delegation of AfreximBank Executives, led by Dr. Oramah that his will continue to stimulate the economy with policies that support investments in areas of Nigeria’s competitive advantage, particularly agriculture.

The Nigerian leader emphasized that the country needs reforms for national survival and that it would take boldness and courage to reposition the economy.

He called for more collaboration to solidify the economy.

“We must stimulate recovery for the growth and prosperity of our people, which will not be far away. Nigeria is ready for global business and our reform is total.

“Nigeria is blessed with human and material resources,’’ President Tinubu told the delegation, who had earlier listed areas of interventions to buoy the economy, like infrastructure, health, energy and agriculture.

The President of AfreximBank commended President Tinubu for the bold steps in removing the fuel subsidy and unification of the exchange rate.

He assured the Nigerian leader of the full support of the financial and development institution on the ongoing reforms.

Dr. Oramah said that the bank is already building the first African Specialist Hospital in Abuja, and Energy Bank.

He pledged to inject more money into the economy to further build confidence of investors.

In the meeting with the EBRD, President Tinubu said: “We are challenged in terms of reforms, and we have taken the largest elephant out of the room with removal of fuel subsidy, and multiple exchange rates are equally gone.

“We are determined to open up the economy for business. Consider us a stakeholder in the Bank.’’

He told the EBRD President that Nigeria’s economy is too large and potent to be ignored, adding: “Ignoring Nigeria will be a peril to the universe.’’

Renaud-Basso said that it would be a mistake for the development bank not to invest in Nigeria, after considering six potential economies for investment.

She explained that focus would be on the private sector, especially Small and Medium Scale Enterprises (SMEs).

Economic Direction Of Tinubu’s Govt In Next 4 Years Will Make Or Mar Nigeria – Aliko Dangote

Editorial staff

June 22, 2023

President of the Dangote Foundation, Alhaji Aliko Dangote has said that the economic direction to which the presidency of Bola Ahmed Tinubu put Nigeria in the next four years, will either make or mar the country’s fortune.

He said: “we genuinely believe that the National Economic Council and the decisions that you will make over the next four years will determine whether Nigeria has sound economic growth.”

Dangote, today, June 22, at a parley with some Governors under the auspices of the Nigeria Governors’ Forum and Bill Gates, at the Presidential Villa, Abuja, said the economic direction would also show whether the citizens are happy eventually and whether the sustainable development goals are achieved.

He said that for a long time, he had been in partnership with Bill Gates as well as with both the Federal and State Governments, supporting the efforts in eradicating polio and improving routine immunization, nutrition and primary healthcare in the country.

This was even as Bill Gates said that his foundation had recently announced the intention to commit $7 billion to Africa in the next four years.

He said that the intervention is meant to support routine immunization in Nigeria, and the Global Polio Eradication Initiative in Northern Nigeria.

Meanwhile, Vice President Kashim Shettima has given assurance that the federal government is determined to address the concerns that surround the financing of the nation’s primary healthcare system.

Describing polio as one of the major primary healthcare challenges in the country, the Vice President said: “the proposal is to provide timely domestic financing for the procurement of vaccines, which couldn’t have come sooner, to boosting our industrial capacity to produce vaccines.”

He acknowledged the threats facing Nigeria in the area of polio, but that Nigeria’s three dose pentavalent vaccine coverage has improved from 33% in 2016 to 57% in 2021.

“The variant polio virus has declined in Nigeria by 84% from 2021, falling to fewer than 200 cases in 2022. He therefore commended the states that have achieved high category immunization coverage, which is between 60% and 80% of the target demographic and the number of states has expanded from 12 to 21 states in five years.

“The Federal Government and our respective state governments are going to set in place a transparent process and structure to undo the reality of the country as one with one of the highest proportions of non-immunized infants in the world over the last decade.”

Vice President Shettima said that the Federal Government is committed to eradicating variant poliovirus by the end of the year, ensuring that every Nigerian child is covered in the routine immunization campaigns.

On the issue of production of vaccines for immunization of children, he assured: “we are going to work together to ensure that these vaccines are made available even to zero-dose children, of which ours, at 2 million, are the highest in the world after India.”

The Vice President expressed the appreciation of the Federal Government to partners such as Alhaji Aliko Dangote’s Foundation and that of Bill Gates Foundation, whose empathy shone through that uncertain period in history.

The Chairman of Nigeria Governors’ Forum, Alhaji Abdulraman Abdulrasaq and some Governors who spoke at the parley, lauded the philanthropic interventions of the Dangote and Bill & Melinda Gates Foundations in critical areas, including healthcare, education, agriculture and human capital development. The Governors expressed the readiness to further collaborate with the Dangote and Gates Foundation in the coming years.

Owner Of AIT, Raypower, Dokpesi Goes Home

Editorial staff

June 22, 2023

Dokepsi was buried today, June 22, in the presence of his family, friends, political associates and well-wishers.

A requiem mass was held before the interment at Sacred Heart Catholic Church, Agenebode.

Among those who witnessed the interment were Osun State Governor, Ademola Adeleke and media entrepreneur, Dele Momodu.

Dokpesi’s body arrived Edo State for burial on Wednesday.

His body was driven around his Abuja residence for the last time on Tuesday night after a requiem mass at The Church of Assumption, Asokoro, Abuja.

A service of songs was held at the deceased’s residence in Edo State on Wednesday.

The funeral commenced with a “day of tributes” on Monday at The Ballroom International Conference Centre in Abuja.

Among the dignitaries who attended it were former Vice President Atiku Abubakar, the Peoples Democratic Party’s governorship candidate in Kogi State, Dino Melaye; Momodu; and Edo State Governor, Godwin Obaseki.

The late Dokpesi was a member of the defunct Atiku Abubakar presidential campaign council for the 2023 poll.

As at press time, guests were being hosted after the interment at St. Peter’s Grammar School compound in Agenebode.

Dokpesi who was chairman of DAAR Communications which owns Africa Independent Television (AIT) and RayPower FM, died on May 29 at the age of 71, weeks after reportedly suffered a stroke.

Prof. Danbatta Bags Nigerian Academy Of Engineering Award

Greenbarge Reporters

June 22, 2023

The Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Professor Umar Danbatta, received an Appreciation Award in the Platinum category from the Nigerian Academy of Engineering (NAE) for the NCCs continuous support to the Academy and for the Commission’s overall contribution to the development of the Engineering profession in Nigeria.

Salary Increment For Tinubu, Govs, Others Still In Process, RMAFC Spokesperson Says

Greenbarge Reporters

June 22, 2023

The Public Relations Officer of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Christian Nwachukwu has said that President Bola Tinubu has not given approval for the increment of salaries of public servants.
Reacting to the news emanating from a Federal Commissioner in the Commission, Rakiya Tanko-Ayuba the spokesperson said that he was not aware that the Commission has approved the increment of salaries of political office-holders, judicial and public office holders by 114 per cent.
Rakiya Tanko-Ayuba had spoken about the increment in the salaries of the President, his Vice, State governors and other public servants when she represented RMAFC Chairman, Mohammad Shehu, at the presentation of the reports of the reviewed remuneration package to Kebbi State Governor, Nasir Idris, in Birnin Kebbi, yesterday, June 21.
She said that implementation of the reviewed remuneration packages was effective from January 1, 2023, a claim that has been strongly denied by the Commission’s spokesman.
Reacting, the Commission’s spokesperson said: “not my chairman. Not my chairman. My chairman has never made any statement on it. And I have not made any statement on it. No statement from chairman, no statement from me. So, I don’t know. I heard one of the Commissioners said it. I don’t want to be quoted.”
Speaking in a telephone chat with Leadership newspaper reporter, the spokesperson said: “no approval yet. There is no approval yet. I don’t know the source of that story. Everything is under the process. It has to come as a Bill for Mr. President to assent.
“The President has not given assent. Until the President gives assent, you cannot take it as if it has taken effect. You know that. You are a journalist.
“I don’t want to be quoted wrongly. The President has not given assent to it. It is still under the process.”
Asked if the National Assembly has begun work on the proposal, Nwachukwu said: “it will be sent to National Assembly. Whichever way, whether it has been sent or not, the President has not assented to it. All those legislative process has to be completed; finally, it will land on Mr. President’s table for assent. That has not been completed.”
When he was asked if that means that the story making the rounds on salary increment was not true, he said: “just take it the way you understand it so that you don’t quote me anyhow.”
Asked whether the RMAFC has sent the executive bill through FEC to the National Assembly for deliberation, Nwachukwu simply said: “everything is under the process.”
Source: The Leadership.

Bode George, PDP Top Shot, Hails Tinubu’s 22 Days As President

Greenbarge Reporters

June 22, 2023

A chieftain of the Peoples Democratic Party (PDP), Chief Bode George has commended President Bola Tinubu on his first three weeks as the President, saying it is a good start to his administration.

He said President Tinubu’s good start was better than his time as Lagos State Governor between May 1999 and May 2007.

Chief George, who is a former Deputy Chairman of the PDP gave the commendations while speaking on Channels Television’s Politics Today programme on Tuesday.

When asked about his assessment of Tinubu’s administration’s first three weeks George said it is early to give a rating.

When further asked to describe the performance of Tinubu in the last 22 days as Nigeria’s President, the Lagos-based PDP stalwart said: “It’s not perfect but reasonable.

“At least, it is better than what we had known before when he was in Lagos. Maybe he was much younger at that time and had no experience but now, Lagos is not Abuja.”

Asked if he is willing to work with Tinubu, George said he would take permission from the PDP should the President approach him to work together for the good of the country.

He also reiterated his membership of the PDP, saying that he is not an enemy of the President despite their agelong political rivalry.

“The major difference between Bola and I is his methodology, his managerial style, is unlike mine. I have a background in the military and I am a logistician in the military. You don’t carry your men to war without adequately doing your serious planning, intelligence gathering,” he said.

The PDP Chieftain, however, expressed confidence that his party and its candidate in the 25 February poll, Atiku Abubakar would emerge victorious at the Presidential Election Petitions Tribunal in Abuja.

“Let’s wait for the outcome of the judiciary. The process is not over. The day the process is over and the court pronounces him as the President, we have no way to fight but to pray for Nigeria,” he said.

Source: VoiceofNigeria.ng

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