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FG Incurs N950bn New Domestic Borrowing In Q1 2022 – DMO

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The Federal Government has incurred N950bn new domestic borrowing between January 2022 and March 11, 2022, the Debt Management Office has revealed.

The fresh borrowing was disclosed on March 17 in the presentation of the Public Debt Data as of December 31, 2021, by the Director-General of the DMO, Patience Oniha.

In the document, Oniha disclosed that the Federal Government was considering all options to raise funds externally.

She said, “All options for raising funds externally are being considered. These include funding from multilateral and bilateral sources, the International Capital Markets and the $3.35bn Special Drawing Rights allocated by the International Monetary Fund to the Central Bank of Nigeria.”

According to the document, the Federal Government still plans to borrow an additional N1.6tn, while the 2022 debt target for domestic borrowing is N2.57tn.

There is also a plan to borrow N2.57tn from foreign creditors, while N1.16tn is expected from multilateral/bilateral drawdowns.

In total, the Federal Government plans to add N6.3tn new debts to the current debt stock, which would push the country’s total debt stock to N45.86tn by December 2022.

However, the Federal Government, in the National Development Plan 2021-2025, hopes to push the total debt stock to N46.63tn for 2022.

A tabular illustration in the document showed that the government targets N39.59tn debt stock for 2021, N46.63tn for 2022, N50.22tn for 2023, N50.53tn for 2024, and N45.96tn by 2025.

In March this year, Nigeria acquired $1.25bn Eurobond debt from the International Capital Market, making Nigeria the first African country to access the ICM in 2022.

This happened a few days after the Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, had told Reuters that there was no plan to enter the Eurobond market in 2022.

The DMO said the proceeds of the Eurobond would be used to finance critical capital projects in the budget to bridge the infrastructure deficit and strengthen Nigeria’s economic recovery, while the Finance minister said that proceeds from the $4bn acquired from the Eurobond market the previous year would be used to fund fuel subsidy.

The World Bank has said that Nigeria’s debt, which may be considered sustainable for now, is vulnerable and costly.

According to the Washington-based global financial institution, the country’s debt is also at risk of becoming unsustainable in the event of macro-fiscal shocks.

Experts have kicked against the Federal Government’s proclivity for debt, which they have described as unsustainable.

Speaking on the development, an economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the country is on the brink of debt distress.

He said, “Nigeria is on the brink of debt distress because our debt profile now is not sustainable. We had a debt service to revenue ratio getting to 76 percent as of November last year. The situation is likely to get worse because our deficit in the 2022 budget is N6.4tn, and we need to borrow to finance the deficit. Also, the Federal Government has submitted a supplementary budget proposal for subsidy for N2.55tn after the budget was passed. Adding that to the deficit, we will get about N9tn.

“How much is the revenue? It is just about N10.7tn, and we are not likely to get the full revenue, maybe 70 percent. So, we are getting to a point whereby the time we service our debts, which should be around N4tn, and spend another N4tn on subsidy this year, we have consumed almost all our revenue for the year. Does that now mean that we are going to be using debt for personnel costs?; for overhead?; for a capital budget? That is where we are heading to.”

He further lamented that instead of the country gaining from the increase in oil price like other oil-producing countries, the government was losing money on fuel importation and fuel subsidy

“With the increase in oil price, the subsidy price will have to increase beyond what the NNPC requested. While other oil-producing companies are ‘happy’, as their reserves are increasing and currency are getting stronger, we are lamenting because we are not getting the full benefit of the oil windfall,” he added

A professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Prof Sheriffdeen Tella, criticized the Federal Government for the rate of increasing debt.

According to him, the money spent on debt servicing is eating deep into the government’s revenue, which makes borrowing an unsustainable form of financing.

He said, “We are already in debt distress if we are spending a large proportion of our revenue on debt servicing, we are in trouble and our revenue is not growing. The Minister of Finance recently said we will borrow from Eurobonds to finance subsidies. What kind of economics is that? The Minister of Finance deserves to be given an award for patronizing the debt market. She has made Nigeria the most active debt in the world. This is not good enough.

“We are already in distress in terms of debts because we are spending our revenue, which is declining, on debt servicing and fuel importation. It is unfortunate. What is the money borrowed used for? Every time, we hear of things being underfunded. Even the NNPC said they are underfunded which is why they were unable to meet up with the OPEC quota for oil production. So, what is funded in this country?”

He further urged the Federal Government to stop borrowing and focus on how to boost revenue, especially by removing the fuel subsidy.

“The Federal Government needs to be stopped from borrowing money. They just borrow for consumption and not production. How can you borrow for subsidy on fuel when people are using more diesel? Industries, trains, and trailers use diesel. Diesel is not enjoying subsidies. So, what subsidy are they paying on petrol, which is for domestic use and not industrial use? Industries even have to use diesel steadily due to poor electric power supply. We need to get our priority right,” Tella said.

BIG STORY

Appeal Court Nullifies Rape Conviction Of Lagos Doctor Femi Olaleye

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The Lagos appeal court has overturned the “rape” conviction of Femi Olaleye, managing director of Optimal Cancer Care Foundation. On Friday, the appellate court ruled that the lower court “erred” in its judgment.

Olaleye was arraigned in November 2022 on a two-count charge of “defilement of a child” and “sexual assault by penetration.”

He was convicted in October 2023 and sentenced to life imprisonment for “rape.”

However, the appeal court held that the lower court relied on “tainted” and “unreliable” evidence.

THE VERDICT

The three-member panel of the appeal court are Jimi Olukayode Bada, Mohammad Sirajo, and Folasade Ojo.

Bada read the lead judgment which was adopted by the two other justices.

The appeal court held that the lower court erred based on the “tainted” and “unreliable” evidence of Oluremi, the defendant’s wife, and the alleged survivor.

The appeal court stated that Oluremi’s conduct showed that she was motivated by greed and the desire to take over the appellant’s assets upon his incarceration.

The appellate court described Olaleye’s wife as a “tainted witness”.

The court also ruled that the lower court relied on the “hearsay evidence” of the other witnesses on the age of the alleged survivor.

The appellate court held that since none of the witnesses witnessed the birth of the alleged survivor, it was wrong for the lower court to rely on their testimonies.

The court ruled that the prosecution’s case that the alleged survivor was a 16-year-old child was bereft of evidence.

The court described the testimonies of the child forensic specialist, that of a medical doctor from the Mirabel Centre, and the investigating officer’s, as “worthless”.

The appellate court said the trial judge “interfered” in the proceedings by bridging the “yawning gaps” in the prosecution’s case.

The court held that the prosecution failed to present material witnesses such as two family members who witnessed Olaleye’s alleged confession.

The court said a trial within trial ought to have been conducted to ascertain the voluntariness of the appellant’s confessional statements while in police custody.

The court of appeal resolved all five issues in favour of the appellant.

The appeal court thereafter discharged and acquitted Olaleye.

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US-Based Nigerian May Get 20-Year Jail Term Over Money Laundry

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A United States-based Nigerian, Samson Omoniyi, who was arrested alongside eight others for alleged money laundering and fraud, may be sentenced to 20 years in prison if found guilty by US authorities.

This was contained in a press statement signed by the Office of Public Affairs of the US Department of Justice late Wednesday.

The statement noted that Omoniyi, alongside his accomplices, was indicted on Tuesday on allegations of conspiracy to engage in money laundering following their arrest across three jurisdictions in the US.

It further indicated that the defendants, who remain innocent until proven guilty by the court, operated a money laundering organisation to launder proceeds from fraud amounting to millions of US dollars, allegedly obtained from defrauding multiple citizens.

The statement read, “An indictment was unsealed yesterday (Tuesday) in Nashville, Tennessee. It charges nine members of a multi-state money laundering organisation with laundering millions of dollars derived from internet fraud, including business email compromise schemes. The nine defendants were arrested in a coordinated takedown across three jurisdictions.

“According to court documents, Samson A. Omoniyi, 43, of Houston; Misha L. Cooper, 50, of Murfreesboro, Tennessee; Robert A. Cooper, 66, of Murfreesboro; Carlesha L. Perry, 36, of Houston; Whitney D. Bardley, 30, of Florissant, Missouri; Lauren O. Guidry, 32, of Houston; Caira Y. Osby, 44, of Houston; Dazai S. Harris, 34, of Murfreesboro; and Edward D. Peebles, 35, of Murfreesboro, were charged with conspiracy to engage in money laundering.

“As alleged in the indictment, the defendants were members of a long-running money laundering organisation operating since approximately November 2016 in and around Tennessee, Texas, and across the country.”

The statement further stressed that the defendants used the structured organisation as a guise to launder the proceeds of their fraud and to enrich members of the syndicate.

“The conspirators allegedly structured the organisation so that recruiters or ‘herders’ recruited and directed participants or ‘money mules’ to launder money obtained from Internet frauds that targeted businesses and individuals in the United States and abroad.

“The defendants allegedly used sham and front companies to conceal the fraud proceeds and enrich the conspiracy members. The conspiracy allegedly agreed to launder more than $20 million in fraud proceeds,” it stated.

According to the statement, each of the defendants could be sentenced to 20 years in prison under the US Sentencing Guidelines as the maximum penalty for their offence.

“The defendants each face a maximum penalty of 20 years in prison if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” the statement concluded.

Earlier reports had it that two Nigerians, Anthony Ibekie and Samuel Aniukwu, were sentenced by a US federal jury to 30 years combined jail time for defrauding some US citizens of $3,500,000.

According to the US Justice Department, the duo had deceived their victims by telling them that they had received substantial inheritances that required some money to claim.

The duo was said to have requested their victims send money with a promise to refund them once the inheritances were claimed.

It was also noted that the duo carried out romance scams by establishing romantic relationships with their victims and demanding that they send money after building trust with them.

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BIG STORY

Australia Bans Social Media Use For Children Under-16

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Australia’s parliament on Thursday passed a world-first law banning social media for children under 16, putting tech companies on notice to tighten security before a cut-off date that’s yet to be set.

The ban came following the passage of a groundbreaking law in parliament.

The new law was drafted in response to what the Labor Prime Minister, Anthony Albanese, described as a “clear, causal link between the rise of social media and the harm [to] the mental health of young Australians.”

“We want our kids to have a childhood and parents to know we have their backs,” Albanese told reporters afterwards.

The new law, passed by the Senate with 34 votes to 19, prohibits platforms like TikTok, Snapchat, Instagram, Facebook, X, and Reddit from allowing users under 16.

Companies found in violation could face fines of up to AU$50 million (US$32 million). YouTube has been excluded from the ban due to its educational content.

While the law has been hailed by some as a bold move to protect children, it has drawn criticism from academics, advocacy groups, and tech experts.

Concerns have been raised that the legislation could drive teenagers to unsafe spaces like the dark web or lead to increased isolation.

Questions about enforcement have also surfaced, with critics warning that rushed implementation could create privacy risks if companies require extensive personal data for age verification.

Amnesty International has recommended that the bill be reconsidered, arguing “ban that isolates young people will not meet the government’s objective of improving young people’s lives.”

The bill received over 15,000 public submissions in a single day, many opposing the measure, after tech billionaire Elon Musk drew attention to the proposal on X.

The law will take effect in 12 months, allowing time for the government to trial age-verification technologies.

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