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BIG STORY

We’ll Need To Borrow More Money To Finance N6.258trn Budget Deficit —- FG

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Amidst outcry against frequent borrowing, the Federal Government has spoken of its plan to do more borrowings to finance the N6.258 trillion deficit in the proposed 2022 budget.

This is coming as the Federal Executive Council (FEC) approved the 2022 Appropriation Bill for an aggregate expenditure of N16.39 trillion.

The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, who disclosed the council’s approval at Wednesday’s meeting presided over by President Muhammadu Buhari, maintained that government would continue to borrow to fund infrastructure projects as it does not get enough from its revenues.

She noted that Nigeria’s revenues could barely accommodate services even as she emphasized that despite the concerns, its borrowings are still acceptable limits

She said: “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% of GDP,” she said.

Responding to questions, she further justified the plan for more borrowing, arguing that “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.

“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 at July 2021, the total borrowing is 23% of GDP. 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.

“We do have a problem with revenue. Our revenues have been increasing. We just reported to Council that our revenue from non-oil has performed, like July, at the rate of 111%, 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.

“So, what we have to do is a combination of cutting down our cost, as well as increasing revenue to be able to cope with all that is required for the government to do, including salaries, pensions debt service, as well as capital expenditure,” Ahmed said.

The minister said that FEC noted the changes in the 2022-2024 fiscal projections based on the 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 – N3.15 trillion and Non-Oil Revenue – N2.13 trillion.

Others she gave are Federal Government’s Independent Revenue of N1.82 trillion; Total Projected Federal Government Revenue of N10.13 trillion; Debt Service of N3.61 trillion; Statutory Transfers of N768.28 billion (including N462.53 billion capital component) and personnel costs and Pensions of N4.69 trillion; (inclusive of N617.72 billion for the 63 GOEs).

The rest are Overhead costs of N792.39 billion (inclusive of N451.0 billion 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 N5.35 trillion(inclusive of N647.08 billion for the 63 GOEs).

“The resultant deficit of N6.258 trillion which will be financed by new borrowings of N5.012 trillion (of which domestic – N2.506 trillion and foreign – N2.506 trillion); drawdowns on Project-tied Multilateral/Bilateral loans – N1.156 trillion; and Privatization Proceeds of N90.73 billion,” she stated.

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

Other are Recurrent Expenditure (Non-Debt) of N6.83 trillion, inclusive of N350.0 billion for the recurrent component of Social Investment Programme; and Aggregate Capital Expenditure of N5.35 trillion, inclusive of GOEs’ capital expenditure, multilateral/bilateral loan funded projects, Capital Supplementation and Grants/Aid funded projects.

According to her, this represents 33% of the expenditure budget. Ahmed said President Buhari was intent on leaving improved agriculture production as just a legacy, adding: “Currently, the agriculture sector contributes 23% 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.

“The Lagos/Ibadan rail line is now put to use. We all know about the Abuja/Kaduna and also the Itakpe/Warri rail line has been completed. Work has kicked off on the Kano to Kaduna end of the Lagos/Kano/Ibadan rail line. So, Mr. President wants to leave these rail lines. Rail is very important because it is a major means of moving goods across the country. When the rail lines are completed, it will provide much-needed relief in terms of the movement of goods that our roads now suffer by the use of trucks.

“We are also investing in the deployment of major roads. Some of them are completed, some are at various levels of completion. There’s also the 2nd Niger Bridge that is also going to be completed during the tenure of this administration. The major projects that I just mentioned are fully provided for in the budget. The Federal Ministry of Works and Housing has a provision of N388 billion; the Power sector has about N377 billion; the Ministry of Agriculture has N98 billion; the Transportation Ministry has N189 billion.

“So, all the major projects are being provided for. The target is to make sure that we have some of these key projects completed and commissioned during Mr. President’s tenure,” she added.

On the difference between the price of crude oil and the $57 benchmark for the 2022 budget, the minister pointed out: “You know that 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 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. If that happens, we have not witnessed that in the past one and a half years because the revenues have been very cyclical,” the minister concluded.

 

(Nigerian Tribune)

BIG STORY

SSANU, NASU Issue Seven-Day Strike Notice Over Earned Allowances, Others

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The Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union of Educational and Associated Institutions (NASU) have given the Federal Government a seven-day ultimatum to address long-standing grievances affecting non-academic staff across universities.

In a joint letter dated September 12, 2025, the unions criticised what they described as the “unfair” sharing of earned allowances, the non-payment of outstanding entitlements, and delays in resolving other critical labour matters.

The document, signed by SSANU President Muhammed Ibrahim and NASU General Secretary Peters Adeyemi, reminded Education Minister Tunji Alausa of an earlier letter from their Joint Action Committee (JAC) on June 18, 2025. That letter, they said, had outlined pressing issues requiring government intervention.

Following the correspondence, the minister convened a meeting with NASU and SSANU leaders on July 4, 2025, to discuss the concerns raised.

According to the unions, the outstanding matters include: the “unjust disbursement” of ₦50 billion in earned allowances, non-payment of withheld salaries, failure to implement a 25/35 per cent salary increment, and the delayed renegotiation of the 2009 FGN–NASU/SSANU agreements.

They warned that if the government failed to act within the seven-day window starting Monday, September 15, 2025, their members would embark on a series of lawful industrial actions, including strikes.

The statement further noted that during the July 4 meeting, it was agreed that a Tripartite Committee—comprising the Federal Ministry of Education, the National Universities Commission, and representatives of the two unions—would be set up to address the imbalance in the ₦50 billion allowances. The unions argued that while university staff received a share, workers in Inter-University Centres were completely excluded.

On the matter of two months’ withheld salaries, the unions said there was no resolution at the July meeting. However, the minister reportedly pledged to fast-track the payment of arrears tied to the 25/35 per cent salary increment owed to members.

They added that a reminder letter was sent to the minister on August 18, 2025, due to what they described as his office’s silence—or deliberate refusal—to act on the issues.

The statement also faulted the government for dragging its feet on the renegotiation of the 2009 agreements. The committee chaired by Alhaji Yayale Ahmed, inaugurated on October 15, 2024, only met with the JAC once—on December 10, 2024. Since then, the unions claimed, the government team has stopped engaging them, even though it has reportedly concluded renegotiations with the Academic Staff Union of Universities (ASUU).

The unions recalled that they raised this concern during the July 4 meeting, where the minister promised to intervene. However, no progress has been recorded since then.

“Despite our repeated attempts to draw attention to the plight of our members in universities and Inter-University Centres, the government has failed to act,” the unions said.

They stressed that, given the continued inaction, they had no choice but to issue a final seven-day notice beginning September 15, 2025. Failure to meet their demands, they warned, would result in nationwide strikes and other industrial actions.

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BIG STORY

Nepal Protests: Two Nigerian Inmates Rearrested After Jailbreak

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Two Nigerian nationals who allegedly broke out of prison in Nepal during recent anti-government demonstrations have been captured by India’s paramilitary force, the Sashastra Seema Bal (SSB).

According to a Monday report by the Press Trust of India, the duo was apprehended on Saturday in Jainagar, Bihar State, as they attempted to cross the border back into Nepal.

The Nigerians were reported to be among dozens of detainees—both locals and foreigners—who escaped correctional facilities in Nepal amid violent protests that shook the Himalayan country in recent weeks.

Quoting a security source, the news agency said: “These individuals were intercepted at the border in the past three to four days after escaping from different jails during the massive anti-government demonstrations in Nepal.”

The SSB disclosed that more than 79 fugitives, including foreign nationals, have so far been arrested in various Indian states adjoining Nepal.

Authorities explained that the large-scale manhunt became necessary because the 1,751-kilometre-long India-Nepal border, spread across 20 districts in five states, is largely open and without fencing.

The arrest of the Nigerians has once again spotlighted the recurring involvement of some Nigerian nationals in cross-border crimes across Asia, a trend that has increasingly worried law enforcement agencies.

Earlier reports had it that police in Kozhikode City, India, arrested eight Nigerians accused of drug trafficking.

The Hindu newspaper noted that the suspects allegedly held “key roles” in a wider drug cartel said to operate across multiple Indian states.

In collaboration with a state-level task force, the Kozhikode police also discovered a synthetic drug laboratory in Gurugram, Haryana, with assistance from police units in Delhi and Haryana.

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BIG STORY

FX Inflows, Reserves Boost Naira To N1,497/$

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The Nigerian naira on Monday gained ground against the United States dollar, breaking below the ₦1,500/$ barrier for the first time in over six months. Figures from the Central Bank of Nigeria showed the currency closed at ₦1,497.46/$, an improvement on the previous rate of ₦1,501.49/$, representing a 0.27 per cent appreciation.

The last time the naira traded under ₦1,500/$ at the official market was between February 24 and March 4, 2025. The recent rebound follows a week where the local currency hovered around that mark, with intra-day trades mostly above ₦1,500/$.

The positive movement was also seen in the parallel market, where the naira rose by 0.33 per cent to close at ₦1,535/$, according to data from CardinalStone Research.

Market trackers noted that the naira advanced by 0.98 per cent week-on-week to end at ₦1,501.50/$ at the official window, while the parallel market posted a 0.33 per cent gain at ₦1,535/$.

A report by Coronation Weekly Update highlighted that the official exchange rate closed the week at a ₦35.50 or 2.23 per cent premium compared to the parallel market rate, showing the gap between both markets has continued to narrow.

The report also indicated that total foreign exchange inflows into Nigeria reached $550.90 million last week, slightly lower than the $567.20 million recorded in the preceding week.

Foreign portfolio investors accounted for the bulk of the inflows with $303.8 million, or 55.15 per cent. Exporters contributed 17.61 per cent, non-bank corporates 17.57 per cent, other corporates 4.32 per cent, foreign direct investments 3.39 per cent, the CBN 2.36 per cent, and individuals 0.60 per cent.

Analysts attributed the naira’s appreciation to strong foreign portfolio inflows, robust external reserves, and sustained interventions from the central bank.

AIICO Capital observed that abundant dollar liquidity from portfolio investors, oil exporters, and offshore flows created a stable market tone throughout the week.

“The FX market is expected to retain its stability, buoyed by CBN policy measures and government fiscal actions to maintain sufficient liquidity,” analysts at the firm stated.

Cowry Asset Management also noted that the naira’s rebound was driven by steady inflows, CBN interventions, and growing reserves, but cautioned that speculative activities could still spark volatility.

“We expect the naira to maintain its upward trend in the near term, anchored on dollar inflows, central bank interventions, and stronger reserves. Nonetheless, speculative trades may reintroduce pressure,” the company said.

Experts forecast that the naira is likely to trade within a narrow range in the short term. Coronation analysts suggested that stability could persist if inflows remain steady and reserves stay healthy but warned that pressure may return should portfolio inflows slow or FX demand rise ahead of the festive season.

Meanwhile, Nigeria’s gross external reserves climbed to $41.69 billion as of Friday, reflecting consistent daily accretions. Analysts believe this trend will enhance investor confidence and reinforce the central bank’s stabilisation efforts.

Despite recent gains, experts cautioned that the naira’s resilience depends on deeper structural reforms, diversified foreign exchange sources, and policies aimed at attracting long-term direct investment rather than relying heavily on portfolio flows.

For now, the naira’s recovery below ₦1,500/$ signals renewed market confidence, though its durability will be tested in the coming weeks against external shocks and speculative pressure.

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