Connect with us


BIG STORY

Don’t Harm Our Future, Experts Warn As FG Plans More Loans

Published

on

The Manufacturers’ Association of Nigeria and economic experts on Wednesday expressed concern about the high deficit in the 2022 budget.

MAN and experts including Prof. Pat Utomi in separate interviews with The PUNCH, warned both the executive and the National Assembly against endangering the future of the country.

Federal Government had on Wednesday said it planned to borrow more funds to finance the N16.45tn 2022 budget.

According to the government, the total money borrowed as of July 22 was ‘only 23 percent’ of the Gross Domestic Product.

The Minister of Finance, Budget, and National Planning, Zainab Ahmed, disclosed these to State House Correspondents after the Federal Executive Council at its meeting on Wednesday approved N16.39tn for the 2022 Appropriation Bill.

The meeting was presided over by the President, Major General Muhammadu Buhari (retd.), at the Presidential Villa, Abuja.

The minister said it was necessary that the government would continue to borrow to in order to fund developmental and infrastructure projects as it does not get enough from its revenues.

She noted that Nigeria’s revenues could barely accommodate services even as she emphasised that despite the concerns, its borrowings were still within acceptable limits.

The minister stated, “If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue.

“So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.

“Nigeria’s borrowing has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing, it is still within healthy and sustainable limits. As of July 2021, the total borrowing is 23 percent of GDP.”

Fielding questions, Ahmed justified the plan for more borrowing, arguing, “Government has been borrowing before this administration and continues to borrow and it is important that we borrow to provide developmental projects in the form of roads, rails, bridges, power and water for sustainable development in this country.

“If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue.

“So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.

“When you compare our borrowing to other countries, we’re the lowest within the region, lowest compared to Egypt, South Africa, Brazil, Mexico, the very lowest, and Angola.

‘Increasing staff emoluments difficult to cope with govt funding’

“We do have a problem of revenue. Our revenues have been increasing. We just reported to the council that our revenues from non-oil have performed, as of July, at the rate of 111 per cent, which means outperforming the prorated budget.

“But our expenditure, especially staff emoluments have been increasing at a very fast rate making it difficult to cope with funding of government.”

She said government was doing a combination of cutting cost and increasing revenue to be able to cope with all salaries, pensions debt service, as well as capital expenditure.”

The minister said that council noted the changes in the 2022-2024 fiscal projections based on implementation of the Petroleum Industry Act 2021 and other necessary expenditures that should be accommodated in the 2022 budget.

She also disclosed the key assumptions and targets underlying the budget provisions including oil price – $57 per barrel; oil production – 1.88 mbpd; exchange rate – N410.15/US$; oil revenue – N3.15tn and non-oil revenue – N2.13tn.

Others include Federal Government’s Independent Revenue of N1.82tn; Total Projected Federal Government Revenue of N10.13tn; Debt Service of N3.61tn; Statutory Transfers of N768.28bn (including N462.53bn capital component) and Personnel Costs and Pensions of N4.69tn; (inclusive of N617.72bn for the 63 GOEs).

The rest are overhead costs of N792.39bn (inclusive of N451.0bn for the 63 GOEs); and Capital Expenditure (inclusive of capital component of Social Investment Programme, Capital in Statutory Transfers, capital of 63 GOEs, Capital Supplementation as well as Grants and Donor funding) of N5.35tn (inclusive of N647.08bn for the 63 GOEs).

“The resultant deficit of N6.26tn which will be financed by new borrowings of N5.01tn (of which domestic – N2.51tn and foreign – N2.51tn); drawdowns on project-tied Multilateral/Bilateral loans – N1.16tn; and Privatisation Proceeds of N90.73bn,” she stated.

On the approved 2022 Appropriation Bill for an aggregate expenditure of N16.39tn for 2022, she gave the components as the adjustments to the Medium-Term Fiscal Framework 2022-2024; Statutory Transfers of N768.28bn and Debt Service of N3.61tn and Sinking Fund for Maturing Debts of N292.71bn.

Others are Recurrent Expenditure (Non-Debt) of N6.83tn, inclusive of N350bn for the recurrent component of Social Investment Programme; and Aggregate Capital Expenditure of N5.35tn, inclusive of GOEs’ capital expenditure, multilateral/bilateral loan funded projects, Capital Supplementation, and Grants/Aid funded projects.

According to her, this represents 33 percent of the expenditure budget.

Ahmed said Buhari was intent on leaving improved agriculture production as a legacy, adding, “Currently, the agriculture sector contributes 23 percent of the GDP. We have a record of expanding the agricultural value chain; we’ve had very little or no processing in agriculture until this administration.”

“We now have a very large number of fertilizer blending plants, about 42, that are operating at full capacity. We also have a large number of rice mills that didn’t exist before.

“We have a lot of Nigerians that have taken up agriculture as a business, but apart from agriculture, the President is also rolling out rail lines, some of which had been started several years ago, have been completed.”

She added the Federal Ministry of Works and Housing had a provision of N388bn; the Power sector, N377bn billion; the Ministry of Agriculture, N98bn and the Transportation Ministry N189bn.

On the difference between the price of crude oil and the $57 benchmark for the 2022 budget, the minister said, “The crude oil price in the international capital market is not stable, it goes up and it comes down.

“Our assessment is that $57 per barrel is a safe zone to be in and we did this after extensive consultations with CBN, we checked the research work of the World Bank and other institutions, whose concern is investigating and researching on crude oil prices. But you know, the revenue in the budget for oil and gas is a function of the level of production as well as the price.

“We had suffered some setbacks in terms of the level of production, occasioned by the limits that the OPEC set. But thankfully, OPEC has changed our quota and that will also soon ramp up.

“In the event that revenues from oil and gas outperform the budget, there is always the safeguard that the excess goes into the Excess Crude Account.”

Commenting on the budget, a senior lecturer of economics at the Pan Atlantic University, Dr Olalekan Aworinde, said the government would continue to borrow, thus worsening poverty.

 

 

BIG STORY

Otunba Gbenga Daniel, Prominent Nigerians Mourn With Otunba Femi Davies Over Mother’s Passing

Published

on

Former Governor of Ogun State and the Senator representing Ogun East Senatorial District, Otunba Gbenga Daniel, has extended his heartfelt condolences to veteran journalist and media icon, Otunba Femi Davies, following the death of his beloved mother, Deaconess Bolajoko Idowu (née Showemimo), who passed on Friday, July 4, 2025, at the age of 78.

In a moving tribute, Senator Daniel described the late Deaconess as a virtuous matriarch and a woman of profound grace, faith, and character whose nurturing presence and moral uprightness shaped many lives beyond her immediate family.

“Your mother was more than a vessel of life; she was a beacon of strength, faith, and dignity. Her grace illuminated every path she walked, and her character left lasting impressions on all privileged to encounter her,” he stated.

Senator Daniel urged Otunba Davies to take solace in the impactful life his mother lived and the enduring legacy she left behind. “May you find true consolation in the fact that hers was a life well spent, and that she now rests peacefully, embraced by divine light,” he added.

Beyond Senator Daniel, a host of prominent personalities from across various sectors have also sympathized with Otunba Davies. They include former Lagos West Senator, Senator Ganiu Olanrewaju Solomon; Fuji music legends, K1 De Ultimate and Pasuma Wonder; Afro-Juju maestro, Sir Shina Peters; and respected engineer and philanthropist, Engr. Toyin Omotosho.

Others who paid tributes include Alhaji Olanrewaju Mohammed Masika, popularly known as Lamex; Alhaji Lukman Hamzat, the Babalaje of Yewaland; Chief Adewale Adeshina, Otunba Bestman Nze-Jumbo, media colleagues among several others who described the late Deaconess as a woman of virtue and rare influence.

The final journey of Deaconess Bolajoko Idowu will commence on Thursday, July 24, with a Service of Songs at Christ Baptist Church, located at 46 Akiwowo Street, off Jimoh Akinremi Street, Akowonjo, Dopemu, Lagos, starting at 5:00 p.m.

The burial service will be held the next day, Friday, July 25, at the same church, followed by interment at a private cemetery. A grand reception will take place afterward at the Conference Hotel, Presidential Boulevard, 1 Golf Resort Drive, Oke Mosan, Abeokuta.

The late Deaconess Bolajoko Idowu is remembered for her unwavering Christian faith, her commitment to family values, and the positive impact she made within her community.

Continue Reading

BIG STORY

FRSC Boss Shehu Mohammed Decries Rising Indiscipline, Bribery Among Personnel

Published

on

The Corps Marshal of the Federal Road Safety Corps, Shehu Mohammed, has expressed deep concern over increasing incidents of misconduct, bribery, drug use, and other unethical behavior among staff, warning that such issues could damage public confidence and harm the credibility of the agency.

While addressing officers during the 2025 Half-Year Strategy Session in Abuja on Wednesday, Mohammed issued a strong call to action, urging leaders within the agency to tackle emerging behavioral problems and enforce discipline at all levels.

The theme of this year’s meeting was “Driving Change from Within: Reinforcing Integrity, Accountability, and Performance.”

He noted that recent reports have shown problems in enforcement activities due to unprofessional behavior during patrols, growing cases of misconduct, corruption, weak oversight from commanders, truancy, drug-related issues, and disrespectful treatment of road users.

These challenges, he explained, are hindering internal control and negatively impacting how well the corps performs. He added that they have also raised major concerns among citizens who expect the corps to fulfill its responsibilities effectively.

Mohammed stressed that leaders must be accountable for how their personnel behave and cautioned that failing to act could damage the agency’s integrity.

He directed that commanding officers should identify troubling behaviors, uncover the causes, and apply appropriate disciplinary measures to maintain order and public trust.

Pushing for a shift in culture within the corps, he said there is a need to reinforce leadership responsibilities and ensure proper command structures to restore order and discipline.

He emphasized the need to deal with the tendency for compromise and tackle the moral decline within the corps, which he said is damaging both its integrity and public image.

He encouraged officers to recommit themselves to ethics and responsibility, and emphasized that recognizing good performance and penalizing poor conduct must become a standard practice in the corps.

Mohammed said it was important to take firm steps against truancy, lack of enthusiasm, and abandoning duties, while rewarding productivity and accountability as a way to boost staff motivation.

Due to reduced financial support, he urged operational leaders to think creatively about how to keep their work effective despite limited resources.

He also called on commanders to build strategic partnerships, particularly with state governments, to support vital FRSC operations.

Despite internal struggles, he said the agency has earned international recognition. Nigeria recently received the Kofi Annan Road Safety Award for Best in Road Safety Management in Africa and was selected to host the permanent office of the African Association of Road Safety Lead Agencies.

Mohammed attributed this progress to the hard work of FRSC personnel and the support of the federal government, adding that the achievements have positioned FRSC as a leading road safety agency on the continent.

To boost the agency’s legal authority, he said the FRSC Amendment Bill, which recently passed in the House of Representatives, is now waiting for Senate approval. The proposed law includes changing the agency’s name and expanding its responsibilities.

He explained that the current FRSC law from 2007 will be updated to become the Nigeria Road Safety Commission Act 2024.

He added that under the new law, the Federal Road Safety Corps will become the Nigeria Road Safety Commission, its authority will cover all public roads, senior officers’ salaries will be consolidated, and a special armed unit will be created within the commission.

He mentioned that the corps recently completed a round of promotions, raising three Assistant Corps Marshals to Deputy Corps Marshals, 18 Corps Commanders to ACMs, and promoting more than 1,200 other officers.

He said management is working hard to motivate staff and create conditions that encourage better performance.

He expressed hope that both officers and rank-and-file members would commit themselves to providing quality service.

To strengthen partnerships between agencies, he said the FRSC signed a Memorandum of Understanding with the Nigerian Safety Investigation Bureau to broaden safety efforts across all transportation sectors.

Mohammed noted that the agreement with NSIB aims to improve safety beyond aviation, extending to roads and railways, with both agencies working together to make transportation safer for the public.

NSIB’s Director General, Captain Alex Badeh Jr., described the collaboration as important in helping to ensure safety in transportation.

He said their role was to provide recommendations that would enable the FRSC to carry out its responsibilities more effectively and protect lives.

He also commended the FRSC for recent improvements in its enforcement and response strategies.

Senator George Akume, Secretary to the Government of the Federation, who officially opened the session, praised the FRSC for its continued efforts despite budget and resource challenges.

Referring to accident figures between January and May 2025, which showed 2,406 deaths and more than 33,000 injuries, Akume (represented by Sanusi Danjuma) called for stronger enforcement, education, and inter-agency collaboration.

He said reviewing past performance helps highlight strengths and weaknesses, and assured the corps that government will keep supporting its programmes to achieve the goal of zero road traffic deaths.

He concluded by applauding the corps’ use of digital solutions such as the FRSC mobile app and the National Crash Information System, which he said have helped improve real-time tracking and policy development.

Continue Reading

BIG STORY

I’m Vindicated, Says Onasanya As Court Throws Out Loan Controversy Case

Published

on

Former Group Managing Director of FirstBank Nigeria, Dr Olabisi Onasanya, has said he is now vindicated after the Federal High Court in Lagos struck out the controversial loan-related case involving his name.

Justice Chukwujekwu Aneke of the Federal High Court, Lagos on Wednesday, July 23, 2025 struck out the case after the anti-graft agency, the Economic and Financial Crimes Commission, EFCC, withdrew the suit following an out-of-court settlement among the parties involved including the nominal complainant (First bank of Nigeria PLC), the erstwhile Chairman of the Bank, Oba Otudeko, who is the first defendant, and his Anchorage Leisure Limited standing as the fourth defendant as well as the intervention of the office of the Attorney General of the federation.

Rotimi Oyedepo (SAN), the counsel to the prosecution, the EFCC, said the withdrawal of the suit was consequent on the confirmation of the repayment of the controversial loan by the defence and the intervention by the office of the Attorney General of the Federation.

Mr. Rotimi Oyedepo, SAN, appearing for the prosecution, further informed the Court that the Honourable Attorney-General of the Federation (AGF) received a formal request to discontinue the matter. He noted that on 16th July 2025, First Bank of Nigeria (FBN), the nominal complainant, wrote to the AGF confirming that a settlement had been reached with the 1st Defendant (Oba Otudeko) and that the Counsel to the 1st Defendant similarly wrote to the AGF, confirming the settlement.

‘’Subsequently, by a letter dated 21st July 2025, FBN formally communicated its decision to no longer pursue the allegations against the Defendants. Following a thorough review of the representations by both the nominal complainant and the First defendant, and since the funds in question had been fully recovered and returned to the Bank’s treasury, the Honourable AGF considered it appropriate on grounds of justice, public policy, and to prevent abuse of legal process to withdraw the charge subject to Section 108 of the Administration of Criminal Justice Act (ACJA) 2015, we hereby move a motion to withdraw the case,” Oyedepo told the court.

Bode Olanipekun (SAN), the counsel to the first defendant, did not object to the withdrawal, confirming the settlement between the nominal complainant (First Bank) and his client, the first defendant (Oba Otudeko).

Adeyinka Olumide-Fusika (SAN), the counsel for Onasanya, told the court, “My lord, I have no objection to the withdrawal. I attended the first meeting of the parties with the AGF (Attorney General of the Federation) and I affirmed that the matter was strictly between the nominal complainant, which is the First Bank and the first defendant (Otudeko). I am happy that the matter has now been resolved among them, and I thank all the parties for resolving it.”

With no objection to the withdrawal of the suit by any of the parties, Justice Aneke declared the suit ‘struck out’.

Speaking to journalists after the case was dismissed, Michael Osunnuyi, Media Advisor to the retired banker, strongly affirmed Onasanya’s innocence and said he had always been determined to clear his name.

“He’s completely vindicated. From the beginning, we have maintained that he did nothing wrong. He was not actively involved in the approval process for the transaction, as investigated by the EFCC about eight years ago. Dr Onasanya has never taken part in any form of fraud in his over three decades of service in the Nigerian financial sector,” Osunnuyi said.

Osunnuyi said his principal demonstrated his innocence by voluntarily presenting himself to the court at each sitting to prove that he had nothing to hide.

Onasanya, who retired voluntarily as FirstBank Group managing Director in 2015 after years of meritorious service, said the case had been particularly painful because of the attempted damage to his legacy.

“Dr Onasanya’s reputation is everything to him. He built a name in banking and corporate governance through dedication, discipline, professionalism and integrity. That’s why he didn’t run. That’s why he always came to court to defend his name and to uphold the values he has always believed in. Let it be known that Dr Onasanya will continue to defend himself where necessary and will not succumb to the antics of mischief makers who target him in the advancement of their aggrandisement,” Osunnuyi said.

Continue Reading



 

Join Us On Facebook

Most Popular