Connect with us


BIG STORY

Economy: External Debt Rises By 288.18% To $40bn Under Buhari — DMO

Published

on

A report by the Debt Management Office has shown that Nigeria’s total external debt has risen from $10.32bn on June 30, 2015, to $40.06bn as of June 30, 2022.

This means that there has been an increase of 288.18 percent in seven years.

A breakdown shows that in 2015, 36 states had $3.27bn external debt while the Federal Government had $7.05bn.

By 2022, states’ external debt rose to $4.56bn, while the Federal Government’s external debt increased to $35.5bn.

The debts included loans from multilateral sources such as the World Bank, the African Development bank, and the International Monetary Fund.

They also included bilateral loans from China, France, Japan, Germany, and India, as well as commercial sources including Eurobonds and Diaspora bonds.

Nigeria’s external debt ballooned as the naira lost value, increasing Nigeria’s debt service burden and worsening its ability to service debt. The International Monetary Fund recently said that the long-term rate of the depreciation of the naira equated to a loss of 10.6 percent of its value annually since 1973.

According to the IMF, this rate was 1.5 times higher than the long-term rate of the currencies of other emerging markets and developing economies at 7.2 percent and sub-Saharan Africa at seven percent over the same time period.

The IMF said, “Its exchange rate underwent more persistent depreciation. Nigeria’s long-term rate of currency depreciation (on average 10.6 percent annually since 1973) was 1.5 times higher than both EMDE (7.2 percent) and SSA (seven percent). Given the limited availability of long-term data, it is difficult to estimate the exact reasons.”

The Bank of America recently said Nigeria’s local currency unit was set to weaken further next year as its current exchange rate to the dollar was well above fair value.

According to a report by Bloomberg, the bank said, “Three indicators, the widely-used black-market rate, the central bank’s real effective exchange rate, and our own currency fair value analysis shows the naira is 20 percent overvalued.

“We see scope for it to weaken by an equivalent amount over the next six-nine months, taking it to as high as 520 per USD.”

During a workshop on tax expenditure organized by the ECOWAS Commission in Abuja, financial experts advised that Nigeria and other West African Countries should move away from reliance on foreign assistance to the financing of developmental projects in the region.

According to them, over-dependence on financial aid and external loans might affect the long-term prosperity of the entire region.

The Special Advisor to the Director (Custom Union and Taxation in ECOWAS), Gbenga Falana, while emphasizing that the debt profile of most of the countries in the sub-region was mounting, stressed the need for West African countries to look inwardly and finance local projects through effective domestic resource mobilization.

Reacting, the Managing Director/Chief Executive Officer of Cowry Asset Management Limited, Mr. Johnson Chukwu, said that high external debt would impose a huge debt service on the economy.

He said, “This will impose a huge debt service on the economy, particularly at a period when we have low revenue from oil sales. If the revenue from oil sales does not improve, then the government will be struggling to meet that debt service obligation to foreign lenders.”

However, he noted that Nigeria could service its foreign debt at the current level, but a constant increase in debt without a corresponding increase in foreign currency earnings could put the country in a difficult position.

BIG STORY

Adeleke Accuses FG Of Withholding Osun LG Funds For Political Reasons

Published

on

Osun State Governor Ademola Adeleke has accused the federal government of deliberately withholding local government allocations meant for the state due to political differences.

Speaking through his deputy, Kola Adeusi, at a two-day Southwest Summit on Democracy and Federalism in Ondo State, Adeleke said Osun has been subjected to “politically-motivated marginalisation” by the federal authorities since he assumed office in 2022.

He alleged that funds designated for local government administration in the state were seized without legal justification, describing the situation as a violation of constitutional provisions on financial autonomy and inter-governmental cooperation.

“There is an ongoing wilful breach of the constitution to deprive a sub-national entity of its due rights simply because it does not belong to the same party with the ruling party at the centre,” Adeleke said.

The governor claimed that several federal programmes and projects intended for Osun have been rerouted through political party structures rather than official state institutions, adding that the development has weakened governance delivery at the grassroots level.

Adeleke further alleged that some political actors in Abuja have frustrated efforts to rehabilitate federal roads and revive abandoned federal projects within the state. He also accused federal security agencies of shielding members of the ruling party in cases of alleged misconduct, while using security institutions to intimidate officials of the state government.

“In Osun today, federal party officials boast of powers to deploy security apparatus to witch-hunt state officials,” he said.

Despite the challenges, the governor said his administration has recorded improvements across key sectors including health, education, and debt management. According to him, Osun now ranks highest in the Southwest in access to primary healthcare and has reduced its debt burden by more than 40 percent.

He called on leaders in the Southwest to prioritise regional development over partisan rivalry, advocating for a circular cargo railway, development of dry ports, and stronger support for the regional security outfit, Amotekun.

“The south-west must elevate power applications beyond partisan considerations,” he said. “We must never deploy federal power against ourselves, no matter our political differences.”

Continue Reading

BIG STORY

How DHQ Foiled Bloody Coup Targeting Nigeria’s Top Leaders

Published

on

Security sources have revealed that the Defence Headquarters (DHQ), under former Chief of Defence Staff General Christopher Musa, and its internal intelligence unit led by Chief of Defence Intelligence Major General Emmanuel Undiandeye, successfully uncovered and stopped an attempted coup aimed at overthrowing the Federal Government and attacking top national leaders.

According to PRNigeria findings, the alleged plot, considered one of the most serious coup threats in recent years, involved plans to launch coordinated assassinations of key political and military leaders.

Security insiders disclosed that the targets included senior officials in the Presidency, principal officers of the National Assembly, top military commanders and the National Security Adviser.

A source told PRNigeria that the planned coup was intended to be extremely violent, noting that the planning had been underway for a long time and was designed to cripple Nigeria’s leadership structure completely.

The information emerges amid ongoing investigations into the arrest of 16 military personnel accused of violating service regulations. While the Federal Government and DHQ had dismissed earlier reports of a coup as false, new intelligence obtained by PRNigeria confirms the existence of a sophisticated plot.

Sources added that the coup plan was detected solely through DHQ’s internal counter-intelligence system without involvement from other security agencies. The suspects allegedly acquired vehicles and tactical equipment for covert movement and had secretly accessed sensitive government locations in preparation.

Investigators are also probing possible civilian collaborators, with forensic tracking of financial and communication records underway. Billions of naira have reportedly been traced to accounts linked to suspected political financiers backing the plot.

Contrary to public speculation, security officials confirmed that none of the detained officers were connected to the Office of the National Security Adviser.

Military insiders described the arrested individuals as disgruntled officers who had failed promotion exams or remained in the same postings for long periods, adding that their frustrations were exploited by political actors.

Security analysts noted that the suspected conspirators came from different ethnic and religious backgrounds, describing the alliance as unusual and driven solely by a shared motive to disrupt the democratic system.

One analyst said the coalition behind the plot disregarded Nigeria’s traditional ethnic and religious divides and was solely united by a plan to undermine democratic institutions.

The DHQ reaffirmed its commitment to upholding Nigeria’s democracy, stressing that the Armed Forces remain loyal to the Constitution and the President.

Security experts have praised the military’s swift and covert response to the threat, warning that although the attempt has been foiled, underlying grievances within the system should be addressed to avoid future threats.

Continue Reading

BIG STORY

Lagos Begins Compensation Payment To Owners Of Demolished Buildings In Oworonshoki

Published

on

The Lagos State Government, through the Lagos State Urban Renewal Agency (LASURA), has commenced payment of compensation to verified residents in Oworonshoki, Kosofe Local Government Area, whose homes were demolished during recent clearance exercises.

The disbursement exercise, which started on October 23 at the palace of the traditional ruler of Oworonshoki, was attended by community leaders, LASURA officials, representatives of the Lagos State Building Control Agency (LASBCA), and civil society groups.

LASURA Director-General, Oladimeji Animashaun, who supervised the process, said 80 beneficiaries had been identified and paid between Thursday and Friday.

He noted that the payments began on Thursday with several residents receiving their cheques, adding that the exercise fulfilled Governor Babajide Sanwo-Olu’s promise to affected residents.

Animashaun appreciated Governor Sanwo-Olu, the Special Adviser on e-GIS and Urban Development, Dr. Abiodun Babatunde, and Permanent Secretary, Ministry of Urban Development, Gbolahan Oki, for supporting the initiative and ensuring policy execution.

Reacting to claims that residents were not informed before the demolition, Animashaun said the area had been marked as a regeneration zone more than five years ago, and due notice was given.

He maintained that government followed proper procedures and that residents had long been aware of the redevelopment plan, though some chose to deny it.

According to him, compensation amounts ranged from ₦3 million to ₦5 million for permanent structures, while makeshift buildings such as kiosks and shanties received lower amounts.

He explained that compensation varied according to property type and value, adding that beneficiaries expressed satisfaction as they received their cheques.

Animashaun said the cleared area would be redeveloped into a modern, well-planned community with improved living standards in line with the state’s urban renewal policy.

Member of the Lagos State House of Assembly representing Kosofe Constituency I, Okanlawon Sanni, who witnessed the exercise, described the payment as a demonstration of Governor Sanwo-Olu’s commitment to humane urban renewal.

Sanni said the regeneration project would transform Oworonshoki into a modern and livable community.

He stressed that the exercise was not only about demolitions but about fair treatment of affected residents as promised by the government.

Sanni commended LASURA for conducting a transparent and humane compensation process, noting that the area would benefit from improved housing, drainage, potable water, and road networks.

He urged residents to remain calm and cooperate with the government, stating that the redevelopment is in the public interest and necessary for proper urban planning.

Two beneficiaries — Chioma Idoko and Taiwo Solola — confirmed receiving ₦200,000 each, saying the payment was appreciated even though modest.

Continue Reading


 

 


 

 

 

Join Us On Facebook

Most Popular