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Bankrupcy eminent as Nigeria’s debt repayment exceeds revenue

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Nigeria’s fiscal position has nose dived in the first four months of this year as the cost of repaying debt surpassed the government’s revenue in the first quarter of 2022.

According to details of the 2022 fiscal performance report for January through April, Nigeria’s total revenue stood at N1.63 trillion while debt servicing stood at N1.94 trillion, showing a variance of over N300 billion.

Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, on Thursday warned that urgent action is needed to address the nation’s revenue challenge and expenditure efficiency at both the national and sub-national levels.

The report showed that gross oil and gas federation revenue for the first four months of the year was projected at N3.12 trillion but as at April 30, only N1.23 trillion was realised, representing a mere 39% performance.

Despite higher oil prices, the report showed that oil revenue underperformed due to significant oil production shortfalls such as shut-ins resulting from pipeline vandalism and crude oil theft as well as high petrol subsidy cost due to higher landing costs of imported products.

However, non-oil taxes trailed targets marginally, with average performance of 92.6%.

“Revenue performance is expected to improve in the second half of 2022 as a result of concerted efforts to address the oil theft and pipeline vandalism, the report said. It added that there is also seasonality to some of the non-oil taxes, which means that the nation expects to collect significantly more in the second half of the year.

“The improved revenue collection should also moderate the Debt Service to Revenue ratio, which is currently above our target level,” the report said.

Overview

In the first quarter of 2020, Nigeria’s debt service as a percentage of revenue rose to 99%, according to the Medium-Term Expenditure Framework and Fiscal Strategy (MTEF/FSP) report released by the Federal Ministry of Finance, Budget, and National Planning.
The data showed that in Q1 2020, Nigeria incurred a total sum of N943.12 billion in debt service while the Nigerian government retained revenue at N950.56 billion. In effect, Nigeria’s debt service to revenue was estimated to be 99% during the period.
On Thursday, the new report showed that the Nigerian government’s share of oil revenues in Q1 2022 was N285.38 billion (representing 39 percent performance), while non-oil tax revenues totalled N632.56 billion, representing 84 percent. In essence, the government generated N401.8 billion from company income tax (CIT) and value-added tax (VAT) as CIT and VAT collections were N298.83 billion and N102.97 billion, respectively, representing 99 percent and 98 percent of their respective targets.
Customs collections (made up of import duties, excise and fees, as well as federation account special levies) trailed target by N76.77 billion (25.42 percent) while the other revenues amounted to N664.64 billion, of which independent revenue was N394.09 billion.

Underlying Factors

The report noted that for Nigeria, “fiscal risks are somewhat elevated”, following weaker-than-expected domestic economic performance and structural issues in the domestic economy. It warned that revenue generation remains the major fiscal constraint of the nation and the systemic resource mobilization problem has been compounded by recent economic recessions.

The underlying factors also include the Russia and Ukraine war, which the report said has assumed a new and worrisome dimension with severe implications on food and energy prices.

It listed the resurgence of COVID -19 in some major economies, which has led to slowdown in economic activities in those countries; as well as renewed elevated inflation in most economies, prompting monetary tightening in these economies with the inherent negative impact on capital inflow to emerging markets economies.

Terrorism: Nigerians knock FG over propose ban on Okada operations

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Nigerians have chided the Federal Government over the proposed plans to ban Okada operations throughout the country.

Recall that in an effort to stem the spate of insecurity in Nigeria, the federal government through the National Security Council (NSC) had proposed plans to place a ban on the operations of motorcycles, popularly known as Okada in Nigeria.

The NSC further announced that it is also considering a nationwide ban on mining activities in the country as part of the strategy to curb terrorism activities, checkmate loopholes and cut off their sources of funding.

In what many see as an ill-timed and cavalier proposition especially during this torrid economic dispensation, Nigerians on social media knocked the federal government over the proposition.

“Meaning that this group of our today’s rulers has lost every sense of humanity. Instead of tackling the jihadists that your created to conquer Nigeria with blood of the innocents being wasted daily at your watch, you want to throw every Nigerian family into penury.

Heartless individuals,” a Facebook by the name Eugene Uchnendu angrily reacted.
Another Facebook user by the name Franklin Ezenwa NNE believed the proposition could deteriorate the already volatile security architecture, saying that “I see a more scary insecurity challenge loading if this is implemented. The government should have a rethink.  What job opportunities or enabling environments that will foster businesses of the common, have they created.”

On his part, questions were raised over the constitutional rights of the Federal Government to unilaterally place a ban on means of transportation by Mr Moses Abudu, asking whether “When did transportation become an item on the federal exclusive list in our constitution? This government should leave states to regulate their transport system.”

Solomon Long Giwa said on his Facebook account, “You closed borders, the ones in the north were still effective- free flow of ammunition, things got worse. What is the gain of closing the borders? Jobs are not created, the little foreign ones are disappearing.Not everyone in the borders were involved in illegal activities.

“Banning okadas again will solve or reduce what? Large numbers are earning from okada business. FG should know the more people are out of business doing nothing the more we are doomed security wise. Most people that still earn legally one way or the other will not engage in armed robbery or kidnapping. These ills can be reduced to the nearest level. This fight can also be won this way.”

Recall that the proposition was the outcome of the meeting presided over by President Muhammadu Buhari at the State House in Abuja.

Addressing state house correspondents after the meeting chaired by the President, the Attorney General of the Federation and Minister of Justice, Abubakar Malami stated that investigations are still ongoing especially to establish the correlation between mining and motorcycles which they suspect provide funding for the supply of arms to the terrorists.

Malami who noted that terrorists had moved from the conventional ways of funding their activities to mining and ransom taking, disclosed the government was not unaware of the economic consequences of the proposed resolutions, particularly the motorcycle ban but it has become imperative in order to guarantee the nation’s security.

Meanwhile, the Minister of Interior, Aregbesola, speaking on the attack on Kuje prisons  detailed that despite the extensive intelligence gathered before the onslaught, the attacks succeeded due to “there was no will to act.”

He also revealed that President Buhari had received a report on the preliminary investigation of the Kuje attack and officers who have been found to renege on their responsibilities would be punished.

Terrorist groups, in particular in Nigeria, are increasingly interested in controlling areas of production of gold.

The opportunistic nature of these activities ties strongly to the fact that gold is often the favoured mineral of the terrorist groups as many of these groups use this to secure a source of funding for future operations.

Mane wins second CAF best player of the year award

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..As Oshoala wins CAF best female player of the year

Bayern Munich forward Sadio Mane has been crowned African Footballer of the Year for the second time.

The Senegal international, 30, received the prestigious honour at an awards ceremony on Thursday. Mane, who joined Bayern earlier this summer, won the award ahead of former Liverpool teammate Mohamed Salah and Chelsea goalkeeper Edouard Mendy.

Mane scored 23 goals for Liverpool last season to help them win the FA Cup and EFL Cup. The Reds also reached the Champions League final – losing 1-0 to Real Madrid – and finished just a point behind champions Manchester City in the Premier League title race.

This is as Super Falcon striker, Asisat Oshoala, has been crowned 2022 CAF women’s ‘Player of the Year.’

The 27-year-old was announced the winner of the gong in the gala held in Rabat, Morrocco, on Thursday.

With this win, Oshoala becomes the first player in history to win five African Player of the Year awards.

 

Admission: JAMB fixes 140 as minimum cut-off mark for Universities

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The Joint Admissions and Matriculation Board (JAMB) has set 140 and above as cut off mark for 2022/23 admissions into universities across the country.
The Registrar of the board, Prof. Is-haq Oloyede, disclosed this during a presentation at the 2022 Policy Meeting on Admissions to Tertiary Institutions and awards on Thursday in Abuja.
Oloyede said 100 has been approved as cut off mark into Polytechnics and Monotechnic while 80 for Colleges of Education.
JAMB Registrar, Prof. Ishaq Oloyede, explained that the aforementioned points are the minimum, but that does not mean that institutions must comply wholly.
“Institutions have the liberty to determine their cut-off point but must not be below the cut off agreed at the policy meeting,” he explained.
On his part, the Minister of Education, Mallam Adamu Adamu said just as in the previous admissions exercises, the admissions criteria still remain as approved and circulated.
“I admonish all and sundry to comply with the policy directives as decided at this meeting. Any infringement of any of the policy guidelines would be meted with appropriate sanctions,” he said.
He maintainsed that all applications for regular and non-regular admissions to tertiary institutions must be routed through the Joint Admissions and Matriculation Board (JAMB) in conformity with its enabling law.
The Minister, however, urged the leadership of tertiary institutions to partner with the Federal Government in its frantic efforts at restoring industrial harmony into tertiary institutions in Nigeria.
“It is clear that a stable academic calendar is required for quality education and development in Nigeria. I also seize this opportunity to appeal to the trade unions in the tertiary education sub-sector to, in the interest of the future of Nigeria, call off the perennial strike and embrace genuine dialogue as a solution to our problems,” he said.

OSGoF commences full implementation, enforcement of Survey Coordination Act

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Office of the Surveyor General of the Federation (OSGoF) has commenced full implementation and enforcement of the Survey Coordination Act of 1962 as amended.

This was contained in a statement issued on Thursday by the OSGoF head Press and Public Relations, Mr Abu Michael.

“The Head of the Survey Coordination Department of the Office, Surv. Semiu Ayinde disclosed this in a meeting with a team from Polaris Digital Tech Ltd and Google representative headed by Surv. Niyi Okuboyejo which he chaired at the Survey House in Abuja on behalf of the Surveyor General of the Federation (SGoF), Surv. Abudulganiyu Adeyemi Adebomehin.

“Surv. Ayinde further disclosed that the SGoF deemed it fit to have a meeting with Polaris Digital Tech Ltd and Google hence it has been awarded the contract for the street view mapping of the Federal Capital Territory (FCT) and states of the country.

“The meeting according to him was to avoid violations of the Survey Coordination Acts of 1962 and its subsequent amendments pointing out that OSGoF would not hesitate to ensure the arrest and prosecution of violators of the act. The act stipulates supervision of surveying and mapping activities by OSGoF.

“He stressed that surveying and mapping activities were of serious security matters and that every datum collected ought to be assessed and processed before they would be used for whatever purposes.

“Speaking in the same vein, the Head of the Photogrammetry and Remote-Sensing, Surv. Azeez Afeez said web and mobile mappings and other related forms are products of surveying and mapping and that both the raw data and processed information ought to be deposited with OSGoF, the repository of geospatial data in the country”, the statement reads.

TCN restores national power grip collapse after system disturbance

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The Transmission Company of Nigeria (TCN), has restored national power grid collapse after system disturbance on Wednesday.
This was contained in a statement released to Nigerian Newssphere on Thursday by TCN’s General Manager Public Affairs, Mrs Ndidi Mbah.
“Transmission Company of Nigeria(TCN) wishes to inform the general public that the national grid experienced system disturbance at about 11.27am today, 20th, July 2022. The incident was a result of sudden drop in system frequency from 49.94Hz to 47.36Hz, which created system instability.
“According to reports obtained from the National Control Centre (NCC), it was precipitated by the tripping of a Unit (with a load of 106 MW) in one of the generating stations due to “Exhaust over Temperature”. This unwholesome event, which pulled out other grid-connected Units in the plant, resulted in aggregated generation loss of 457MW. In its wake, a train of events ensued – culminating in the collapse of the national grid.
“As obtainable in all systems, when a component of the electric power system is defective, the entire configuration is vitiated. However, inspite of setbacks encountered at the initial stage, grid restoration had almost been completed as at 11:00pm when this report was filed.
“The Nigerian Electricity Supply Industry appreciates the kind understanding of Government and consumers of electricity within and outside the country. We are committed to leveraging the concerted interventions instituted thus far to enhance power supply reliability so that the issue of system collapse will soon become a thing of the past. Meanwhile, a full-scale investigation is being conducted to establish the cause of this failure”, the statement reads.

Buhari, NANS responsible for lingering ASUU strike says SDP presidential candidate, Adebayo

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…Plans revamping education if elected as President
Presidential candidate of the Social Democratic Party(SDP), Prince Adewale Adebayo has blamed President Muhammadu Buhari, National Association of Nigeria Students(NANS) for the lingering Academic Union of University Staff(ASUU) Strike, challenges bedevilling Nigeria’s education sector.
Adebayo made this to disclosure when the Executives of NANS paid him a courtesy visit in Abuja on Wednesday.
According to him, “The Problem of Nigeria is the Government while the problem of the Government is the people.
“It is an indictment on the government that ASUU is on strike for Five Months, it is also an indictment on the students that they can take it for this long. If you deny politicians Four Hours of their rights, they will do the needful.
“It is only yesterday President Muhammadu Buhari held a proper meeting on the matter and gave himself 14-days ultimatum after wasting Five Months of students academic time”, he stated.
He further explained that there is no government in the country, indicating that in Nigeria, government is made up of politicians who share offices among themselves as compensations.
Speaking on solution to ending the nation’s education challenges, the SDP Presidential Candidate said if elected, he will remove Territory Education Trust Fund(TETFund) from government board of trustees and employ capable hands to run and manage the fund.
He, added that, “Do not assume there are people in government thinking about you. You must be revolutionary to rescue your future”, he urged students.

NCC EVC, Danbatta elected into Council of Nigerian Academy of Engineering

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Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, has been elected to the Governing Council of the Nigerian Academy of Engineering (NAE), a step which signposts his outstanding role in the development of engineering profession in the country.

The Council of NAE is the highest decision-making body of the academy that oversees the country’s highest professional bodies in science, technology and engineering. Notice of the election,  conveyed by Honorary Secretary of the Academy, Engr. Christy Adelowo, indicated that Danbatta, and other council members will serve for two years.

Danbatta, a professor of telecommunications engineering with several decades of experience in academia and professional practice, was inducted fellow of NAE on June 21, 2018, during its Annual Lecture and Investiture of 10th President of the Academy.

Responding to the election, the nation’s chief telecom regulator, expressed appreciation to the council for considering him worthy to serve.

“The Council can count on my intellectual and moral support towards the achievement of the overall objectives of the Academy,” he said.

Danbatta’s contributions to the engineering profession has been eloquently attested to, with a number of public lectures, including one at the academy on November 9, 2016, titled ‘The National Broadband Plan as Catalyst for Social and Economic Transformation: The NCC Mandate.’

On June 23, 2021,Danbatta received a special recognition from the NAE in appreciation for his contributions through remarkable implementation of various programmes of the Commission which has seen very purposeful collaborations with the academia and other professional institutions in science and technology towards the advancement of the socio-economic development of Nigeria.

Danbatta has severally played similar roles, roles in the past, including his two terms as a member of the Council for the Regulation of Engineering in Nigeria (COREN). He is a Fellow of the Nigerian Society of Engineers (FNSE), Fellow of the Renewable and Alternative Energy Society (FRAES) and Fellow, Nigerian Institute of Electrical and Electronics Engineers (NIEEE).

FG yet to spend three years budget allocation for Primary Health sector says Senator Oloriegbe

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…laments under utilisation of allocation
Chairman Senate Committee on Health, Senator Ibrahim Oloriegbe has revealed that three years budgetary allocation of Primary Health care is yet to be released.
Oloriegbe disclosed this on Tuesday in Abuja during the launch of “The State of Primary Health Care Service Delivery in Nigeria” report organized by One Campaign in collaboration with other partners.
According to him, aside Federal Government’s capacity to provide primary health care to every Nigerians, under-utilization of budget allocation is a major setback.
“It is not only that Federal Government do not have capacity, but also the Health Ministry do not fully utilize budgetary allocation.
“Can you imagine that the health sector returned monies back that were not spent. it happened in this 2022; in 2021 it almost happened.
“We are crying that we don’t have enough yet monies allocated for health are yet to be spent despite the fact budget implementation was extended to May 31st 2022.
“For instance, the Basic Health Care Provision Fund(BHCPF), we have 2018, 2019, 2020, 2021,2022, however only 2018-2019 have been released. 2019-2022 are yet to be released. We still have Three years money lying in the account of Federal Health Ministry and Nigerians are suffering”, he stated.
He urged that advocacy should be channeled towards pushing federal government as well as the States on the need to fully implement all primary health interventions.
Senator Oloriegbe further stated that there is need for States to contribute their counterpart fundings to primary health care.
Earlier, ONE Campaign’s Nigeria Director, Stanley Achonu, disclosed that inadequate infrastructure, lack of human resources, others are major impediments to improving Nigeria’s primary health care.
According to him, “Weak governance continues to pose a major obstacle to improved healthcare delivery. It hampers efficiency and effectiveness and results in weak infrastructure, poor user experiences, and poor health outcomes. The burden of strengthening the healthcare systems and services lies heavily on governance and leadership. At all levels, the government needs to take responsibility as a building block of the health system, especially in system design, policy guidance, oversight, regulation, accountability, coalition building, monitoring, and enforcement. The success recorded with polio eradication, containment of Ebola and the COVID-19 pandemic has shown that Nigeria can deliver on critical health issues given the required political will and leadership commitment. We have to act quickly to avert primary healthcare collapse.”
Five States namely; Federal Capital Territory(FCT), Enugu, Anambra, Ekiti and Delta beat other States in primary health care service delivery.

Respite for students as Buhari gives minister two-week ultimatum to end ASUU strike

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Respite for students as Nigeria President Muhammadu Buhari has directed the Minister of Education, Malam Adamu Adamu, to resolve the ongoing strike by the Academic Staff Union of Universities (ASUU) and other university-based unions within 14-day.

ASUU had commenced strike on February 14, and other unions also joined them over the alleged inability of the federal government to meet up with their demands.

Buhari gave the directive Tuesday after receiving briefings from the relevant government Ministries, Departments, and Agencies (MDAs) involved in the ongoing efforts to end the face-off with the university unions.

The president summoned them to get more information on why the strike had persisted for too long.

After Tuesday’s briefing, the President ordered the education minister to ensure that the areas of disagreements were sorted out within two weeks and report back to him.

Buhari directed that the Minister of Labour and Employment, Senator Chris Ngige must be in any of the meetings to resolve the crisis.

The sources added that the Secretary to the Government of the Federation (SGF), Boss Mustapha, should be part of the team to interface with the striking unions.

In attendance at the meeting were the Minister of Education, Malam Adamu, the Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, the Minister of Labour and Employment, Senator Ngige, the Minister of Communications and Digital Economy, Isa Pantami, the Head of Service of the Federation, Dr. Folashade Yemi-Esan, the Chairman of National Salaries Income and Wages Commission, Ekpo Nta, the Director-General Budget Office, Ben Akabueze.

The Nigeria Labour Congress (NLC), has said that it would embark on a nationwide protest on July 26 and 27 in solidarity with the trade unions in the Nigeria public universities and others.

NLC President, Mr Ayuba Wabba said this in a circular jointly signed by Mr Emmanuel Ugboaja, General Secretary of the Congress on Sunday in Abuja.

The circular issued on July 15, was addressed to the Chairpersons and Secretaries of NLC State Councils.