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Instablog9ja
19 m
13
President Bola Tinubu has written to the National Assembly, seeking approval of a fresh N1.767tn as a new external borrowing plan in the 2024 appropriation act.
If approved, the loan will be used to part-finance the budget deficit of N9.7tn for the 2024 budget. The president’s request was read by the speaker during plenary on Tuesday. The president has also forwarded the MTEF/ FSP 2025- 2027 to parliament and the National Social Investment Programme establishment amendment bill, to make the social register the primary tool for the implementation of the federal government’s social welfare programmes.
This is as the Central Bank of Nigeria recently said the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024. Data sourced from the Central Bank of Nigeria (CBN) report on international payment statistics showed that the amount represents a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
According to the report, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July. The trend in international debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.
Further breakdown of international debt figures showed that in January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.
March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023. The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.
July 2024 recorded a 15.48 per cent reduction, with payments dropping to $542.50m from $641.70m in July 2023. In August, there was another decline of 9.69 per cent, as $279.95m was paid compared to $309.96m in 2023. However, September 2024 saw a 17.49 per cent increase, with payments rising to $515.81m from $439.06m in the same month last year. Given rising exchange rates, the data raises concerns about the growing pressure of Nigeria’s foreign debt obligations.
On Monday, Channels Television reported a rise in debts of the 36 states of the federation. The total debts of the 36 states in Nigeria rose to N11.47tn as of June 30, 2024, despite allocations by the Federal Accounts Allocation Committee (FAAC), and their respective internally generated revenues (IGR). An analysis of data from the public debt reports released by the Debt Management Office (DMO) said the rise was 14.57 per cent higher than the N10.01tn recorded in December 2023. External debt for the states and the Federal Capital Territory also climbed from $4.61bn to $4.89bn within the period under review.
In naira terms, the debts increased by 73.46 per cent, from N4.15tn to N7.2tn, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024. However, domestic debt for states and the FCT declined from N5.86tn to N4.27tn. In total, states and the FCT accounted for Nigeria’s public debt of N134.3tn in June 2024, a decrease from their 10.29 per cent share in December 2023, even as their nominal debt levels increased.
Channels Television had earlier reported that the sub-national governments continued to grapple with a persistent reliance on borrowing to finance their budgets in 2023, as the total debt stock of the 36 states surged by 38.1%, from N7.25tn in 2022 to N10.01tn. According to BudgIT’s 2024 State of States report released on Tuesday, the debt growth was partly driven by a N606.12bn increase in domestic debt, resulting in an average year-on-year growth rate of 11.4%. By 31st December 2023. The total domestic debt stood at N5.86tn.
The situation was further complicated by rising foreign debt, which increased by 4.1%, from $4.43b in 2022 to $4.61bn in 2023. According to the report, the liberalisation of the exchange rate exacerbated the financial strain on states, significantly raising their foreign loan repayment obligations in naira terms. Lagos State remained the most indebted in foreign currency, accounting for 26.9% of the total foreign debt, equivalent to $1.24bn.
The DMO’s report comes after budget’s report said that the 32 states of the federation relied on FAAC for at least 55 per cent of their total revenue in 2023. According to the 2024 report released last week, the development paints the over-reliance of state governments on federally distributable revenue and accentuates the vulnerability of the state governments to crude oil-induced shocks and other external shocks.
The report further said that 14 states relied on FAAC receipts for at least 70 per cent of their total revenue. Furthermore, transfers to states from the federation account comprised at least 62 per cent of the recurrent revenue of 34 states, except Lagos and Ogun, while 21 states relied on federal transfers for at least 80 per cent of their recurrent revenue.
In the 2023 fiscal year, the combined revenue of all 36 states in Nigeria increased significantly by 31.2 per cent from N6.6tn in 2022 to N8.66tn. This growth rate exceeded the previous year’s increase of 28.95 per cent, indicating a notable improvement in fiscal performance.
Of the total revenue generated in 2023, Lagos State contributed N1.24t, representing 14.32 per cent of the cumulative revenue of the 36 States. Gross FAAC, which grew by 33.19 per cent trom N4.05tn in 2022 to N5.4tn in 2023, contributed to 65 per cent of the year-on-year growth of the combined revenue of the 36 states.
“32 states relied on FAAC receipts for at least 55 per cent of their total revenue, while 14 states relied on FAAC receipts for at least 70 per cent of their total revenue. Furthermore, transfers to states from the federation account comprised at least 62 per cent of the recurrent revenue of 34 states, except Lagos and Ogun, while 21 states relied on federal transfers for at least 80 per cent of their recurrent revenue. The picture painted above buttresses the over-reliance of the state governments on federally distributable revenue and accentuates their vulnerability to crude oil-induced shocks and other external shocks.” The report provides a detailed analysis of states’ fiscal sustainability, examining how well they balance internally generated revenue against federal allocations.
Instablog9ja
1 h
14
A popular cleric and General Overseer of The God’s Anointed And Blessed Church International, Pastor Toye Ebijomore, has urged that for Nigeria to be redeemed from the series of challenges facing it, President Bola Tinubu must convene a national prayer.
According to the cleric based in Akure, the Ondo State capital, the national prayer is crucial for the survival of the country as it will enable Nigerians to seek divine guidance.
Speaking to newsmen, he revealed that there are sinister plans by some persons to cause disasters across the country, hence the federal government should empower security forces to forestall any breach. While appealing to Tinubu to urgently do the needful, he said: “As I reflect on our nation’s challenges, I firmly believe that this National Prayer is crucial for our collective well-being because it will enable us to come together, seek divine guidance, and work towards a brighter future. “I envision a Nigeria where unity, peace, and prosperity thrive, and I believe this prayer is a vital step towards achieving that vision. I am very confident in the Lord that by working together and following the Lord’s guidance, we would overcome our challenges and build a brighter future for Nigeria.
Towards this end, we only need sincerity, humility, and courage to defeat every force against this godly mission for a lasting solution to our numerous problems. Since we desire Nigeria to be in the comity of great nations and we are learning democracy from the great nations such as America and Great Britain, we should also emulate their art of yearly national prayer, such as America’s National Prayer Day, or US National Prayer Breakfast, or Australian National Prayer Breakfast, which is a secret of the Lord with them.”
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Instablog9ja
3 hrs
14
Evangelist Mike Bamiloye has shared his insights on marriage dynamics.
He said there is only one Head in a marriage and that is the husband. If there is another Head, there is M%nster in that marriage.
Instablog9ja
6 hrs
12
A lady has shared the unique version of a popular gospel song her mother has been singing.
She said her mother has been singing Yahweh Gba wa o” instead of “Yahweh sabaoth”. She cannot believe her ears.
Instablog9ja
8 hrs
15
Nigeria rounded off their 2025 Africa Cup of Nations qualifying series with a shock 2-1 defeat to Rwanda.
The game was played at the Godswill Akpabio International Stadium in Uyo. The Super Eagles came into the game already qualified for next year’s tournament as Group D winners.
And it was the three-time African champions who took the lead in the 59th minute through a fine solo goal from Samuel Chukwueze. But the Rwandans replied with two quick goals from Ange Mutsinzi and Innocent Nshuti to claim their first ever win over Nigeria.
This is the first defeat under interim manager, Augustine Eguavoen, who might be stepping down from the role.
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Instablog9ja
9 hrs
9
Igbo Etiti LGA Chairman, Hon. Dr. Eric Ogbonna Odo, has reportedly appointed Senior Special Assistants (SSA) on ‘Garden Egg and Pepper’ and ‘Yam and Pepper’ in Enugu State.
The offer letter reads thus;
I am pleased to inform you that the executive chairman Igbo Etiti LGA has approved your appointment as SENIOR SPECIAL ASSITANT to the Local Government chairman on AGRICULTURE (GARDEN EGG & PEPPER)
You should report to the office of the executive chairman Igbo Etiti LGA Ogbede for briefing and deployment.
It is pertinent to note that this is not a career civil service appointment but a temporary appointment which you hold at the pleasure of the Executive Chairman of Igbo Etiti.
