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Nigeria Displaces Vietnam As No. 4 On World Bank’s IDA Borrowers’ List, Becomes No.1 In Africa

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Nigeria’s rising debt has moved the country up the World Bank’s top 10 International Development Association borrowers’ list.

The World Bank Fiscal Year 2021 audited financial statements, known as the IDA financial statement, showed that Nigeria was rated fifth on the list with $11.7bn IDA debt stock as of June 30, 2021.

However, the newly released World Bank Fiscal Year 2022 audited financial statements for IDA showed that Nigeria has moved to the fourth position on the list, with $13bn IDA debt stock as of June 30, 2022.

This shows that Nigeria accumulated about $1.3bn IDA debt within a fiscal year, with the country taking over the fourth top debtor position from Vietnam.

This debt is different from the outstanding loan of $486m from World Bank’s International Bank for Reconstruction and Development.

The top five countries on the list slightly reduced their IDA debt stock except Nigeria.

India, which is still the first on the list reduced its IDA debt stock from $22bn in the previous fiscal year to $19.7bn, followed by Bangladesh from $18.1bn to $18bn.

It is followed by Pakistan which cut its debt from $16.4bn to $15.8bn, and lastly, Vietnam, which went down the list to fifth position, from $14.1bn to $12.9bn.

Nigeria has the highest IDA debt in Africa, as the top three IDA borrowers (India, Bangladesh and Pakistan) are from Asia. The World Bank disclosed recently that Nigeria’s debt, which may be considered sustainable for now, is vulnerable and costly.

The bank said, “Nigeria’s debt remains sustainable, albeit vulnerable and costly, especially due to large and growing financing from the Central Bank of Nigeria.”

However, the Washington-based global financial institution added that the country’s debt was also at risk of becoming unsustainable in the event of macro-fiscal shocks.

The bank further expressed concerns over the nation’s cost of debt servicing, which according to it, disrupted public investments and critical service delivery spending.

Economists have also raised concerns over the rising debt profile of the Federal Government.

The Fiscal Policy Partner and Africa Tax Leader of PwC, Mr Taiwo Oyedele, expressed his agreement with the World Bank on the high cost of debt servicing.

He said, “I agree with the World Bank. Although the debt to GDP ratio is not too high, if you think about the debt service cost to revenue ratio, it is already over 70 per cent. That’s when you know it’s costly.

“Nigeria borrows at double-digit, and even when we borrow in dollars, the rates are very high and then you devalue the naira and the cost of servicing the debt in naira goes up because it is dollar-dominated debt.

“Put all of that together, and you can easily say to yourself that even though our debt to GDP ratio is very low, our cost of borrowing is unsustainable because it is very high, and therefore, make it very costly.”

A former Deputy Governor of the Central Bank of Nigeria and former presidential candidate, Kingsley Moghalu, also criticised the increasing borrowing tendency of the government, urging the officials to re-consider other ways of generating revenue for the country.

According to Moghalu, it was also not reasonable to borrow for infrastructural development as the government could expand the public-private partnership options for such development.

In a document by the Director General of the Debt Management Office, Patience Oniha, recently obtained by our correspondent, the DMO stated that high debt levels would often lead to high debt services and affect investments in infrastructure.

According to the DMO DG, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”

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Project Lead Africa Announces 2022 Leadership Excellence And Dignity Awards, Tagged “Rewarding Tenacity”

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Organizers of Leadership Excellence And Dignity Awards have annouced November 13th for the 2022 maiden edition of Lead Awards. It was also revealed that the prestigious event will hold at the Dome International Conference Center, Akure, Ondo State.

Addressing a cross section of journalists over the weekend in Lagos, the Executive Director, Abiola Alaba Peters AAP, said the evening promises to be a gathering of captains of industries, government officials and prominent traditional rulers as far as Ondo State is concerned.

“It is our pleasure to announce to the general public, particularly the good people of Ondo State, that all is set for the 2022 Leadership Excellence And Dignity Awards. This announcement was necessary after several months of consultation and planning, the event will be live at the Dome International Conference Center, in Ondo State capital, Akure”

“The date is November 13th 2022, It’s going to be a cooperate night, an evening of glitz and glamour, we have put in so much into making this maiden edition a memorable one. And that is why we have also taking time to design the concept of the theme of this year ceremony, REWARDING TENACITY. We believe it’s time to celebrate the individuals and organizations who have put in their best in making our dear state what it is today”

“It’s promises to be a gathering of some of the biggest names in Ondo State, from politics, business, entertainment, among others, our traditional rulers are not going to be left out, we are also expecting guests from neighboring states. Alaba Peters concluded.

Giving further details on the event, the Media and Publicity Director, Adewoye Solomon, said although activities, such as nominations and voting has kicked off since January, the award ceremony will hold on a Sunday in the month of November 2022.

In his words, “Let me start by saying that, the process and activities for the award started in January this year, the award presentation will hold in Akure, on a Sunday, the second week of November 2022. Let me also add that, two months ago, we closed the voting process. We have about 25 categories of awards, which includes the special recognition category”.

“A total of 15 categories will be decided by general public, while the remaining 10 will be decided based on the panels’ decision. We received a good number of quality entries from across the state for this debut edition. We have our final shortlists of winners, which we are confident embody the excellence the awards stand for.”

Lastly, let me also add that, this is a strictly by Invitation event. We are introducing an electronic invites by next month. We also have some top celebrities coming in from Lagos. We will make some major announcement in the month of October, do well to follow us on all our social media pages for updates. Thank You “

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JUST IN: FG Makes U-Turn, Withdraws Order To Reopen Varsities

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The Federal Government, through the National Universities Commission, Monday afternoon, withdrew its circular which ordered vice-chancellors, pro-chancellors, and governing councils to re-open federal universities.

It was reported earlier that a circular tagged NUC/ES/138/Vol.64/135 was addressed to all vice-chancellors; pro-chancellors and chairmen of governing councils of federal universities ordering them to re-open universities.

But in another circular tagged NUC/ES/138/Vol.64/136, which the Director, Finance also signed, and Account of the NUC, Sam Onazi, the commission withdrew the order.

Though it did not explain why. The letter tagged, “withdrawal of circular NUC/ES/138/Vol.64/135 dated September 23, 2022” partly read, “I have been directed to withdraw the NUC Circular Ref: NUC/ES/138/Vol.64/135, and dated September 23, 2022, on the above
subject.

“Consequently, the said circular stands withdrawn. All pro-chancellors, chairmen of governing councils, and vice-chancellors of federal universities are to please note. Further development and information would be communicated to all relevant stakeholders.

“Please accept the assurances of the Executive Secretary’s warmest regards”

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Retired Soldiers Stage Protest In Abuja Over Pay Discrepancies [PHOTOS]

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Some retired soldiers on Monday in Abuja protested salary and pension gaps among the ranks of serving and retired military personnel.

The protesters were seen with mats and banners demanding that the federal government rectify the discrepancies.

One of the banners they carried, said, “Review the wide disparity in pay and pension across the ranks of servicing and retired personnel”

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