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13 New Governors Borrowed N226.8bn In Six Months – DMO

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IN the first six months after taking office, 13 new state governors collectively borrowed N226.8bn from domestic and external financiers.

This emerged as findings by this newspaper showed that 16 state governors also increased the debt profile of their states by N509.3bn with domestic and external debt of N243.

95bn and $298.5m (N265.37bn), respectively.

The external debt was calculated based on the exchange rate of N889/$ used by the Debt Management Office in its report.

This is according to an analysis of the latest sub-national debt reports released by the DMO.

The sub-national debts are classified into domestic borrowings from local creditors and external borrowings from international creditors like the World Bank and the International Monetary Fund.

The domestic and external debts published on the DMO’s website were as of December 30 and June 30, 2023, respectively.

The states, which include Benue, Cross Rivers, Katsina, Niger, Plateau, Rivers, Zamfara, and the Federal Capital Territory, got N115.57bn from domestic creditors, while governors of Ebonyi, Kaduna, Kano, Niger, Plateau, Sokoto, Taraba and Zamfara states borrowed $125.1m (N111.24bn) from external sources.

For the sub-nationals, a further breakdown of the data showed that Cross Rivers Governor, Bassey Otu, took the highest loan, with N16.2bn from domestic and $57.95m from foreign creditors between June and December 2023.

Katsina State followed with the debt surging by N36.93bn from N62.37bn to N99.3bn by December 2023.

Third on the list is Niger State, with a domestic debt of N17.85bn, surging from N121.95bn in June 2023 to N139.8bn by December of the same year.

Plateau got N16.32bn; Rivers borrowed N7.07bn; Zamfara, N14.26bn; and the FCT under the leadership of Nyesom Wike borrowed N6.75bn from domestic creditors.

For foreign debt, Governor Francis Nwifuru of Ebonyi State accumulated external debt of $37.54m, while Governor Uba Sani of Kaduna State borrowed $17.69m from external financiers.

Similarly, the governors of Kano borrowed $6.6m; Niger, $1.27m; Plateau, $831,008; Sokoto, $499,472; Taraba, $1.51m; and Zamfara, $655,563, from external sources.

Despite declarations by the administration of President Bola Tinubu that it would not continue with the massive borrowings of the previous government to fund its expenditures, the latest developments show that the new government is sticking to the controversial policy amidst increased revenue.

In 2023, state governors got the most Federal Account Allocation Committee allocations in at least seven years. The rise in FAAC allocations to the three tiers of government, especially the states, followed the removal of subsidy on petrol and currency reforms by the Tinubu administration. The reforms have reportedly led to a 40 per cent boost in income.

An analysis of the 2023 FAAC monthly allocations revealed that the sub-national and local government councils got the highest allocation of N627.73bn in September, followed by N610.5bn in December, N555.75bn in August, N533bn in November, N514bn in July and N497.97bn in October.

NEWS

Tinubu Approves Management Unit for Health Sector Renewal Investment Initiative

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President Bola Tinubu has approved the establishment of the Sector-wide Coordinating Office-Programme Management Unit (SCO-PMU) domiciled in the Office of the Coordinating Minister of Health and Social Welfare.A statement on Friday by his spokesman, Chief Ajuri Ngelale, said the unit would ensure efficient, transparent and accountable management of external grants mobilised towards the implementation of the Nigeria Health Sector Renewal Investment Initiative (NHSRII).

Ngelale said SCO-PMU would report to a Steering Committee/Ministerial Oversight Committee chaired by the Minister, including the Minister of State, Permanent Secretary; Ministry of Finance, Ministry of Budget and Economic Planning and relevant development partners.
“The SCO-PMU will serve as the secretariat and delivery unit for the NHSRII and is to be headed by a national coordinator (NC).“The functions of the SCO-PMU include programme management, monitoring and evaluation, engagement and supervision of Independent Verification Agents (IVAs) for NHSRII programmes and fiduciary management, among others.“Consequently, the President has approved the appointment of Dr. Muntaqa Umar Sadiq as the National Coordinator of SCO-PMU,” he said.

Report says that Sadiq has over 17 years of experience in public health, impact investing, investment banking, energy, and climate financing across the health, finance, climate and energy sectors.He had served as Head of the Performance Management and Delivery Unit at the Federal Ministry of Health and Social Welfare and Chief Executive Officer of the Private Sector Health Alliance of Nigeria.He also served as Head of the Nigeria Energy Transition Office and Private Sector Engagement Adviser at the World Bank. (NAN)

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Education

FG Denies Slash in Students’ Allowances

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The Federal Government says it has no plan to slash scholarship students’ allowances as recently projected in the media.The Minister of Education, Prof. Tahir Mamman, stated this during a meeting with the leadership of the National Association of Nigerian Students (NANS) in Abuja on Friday.

Report says that there was a report that the ministry, through the Federal Scholarship Board, announced a slash in allowances of foreign scholars stranded in Russia, Morocco, and Algeria among others.

The slash in scholars’ allowances under the federal government’s Bilateral Educational Agreement Scholarship (BEA) was attributed to the economic crises.Mamman said that there was no slash in scholars` allowances but rather an adjustment due to Foreign Exchange fluctuations (FOREX).
“We want to clarify what has been in the media on allowances paid to scholars under the Bilateral Scholarship Agreement.“We want to place it on record that the ministry and the Federal Government for that matter have not slashed the allowances due to students.“What happened is some adjustments in the amount due to them because of FOREX fluctuations, and as soon as we get the balance we have applied for, we will pay them.“But for now, what is in the budget is what we can pay. So, there is no slash, we will even be happy to increase, so this is what has led to the adjustments,” he said.(NAN)

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NEWS

Planned Protests: CAN calls for calm and patience

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By Laide Akinboade, Abuja

The Christian Association of Nigeria, CAN, on Friday, has urged Nigerians to calm and patient with Federal Government and should give the the government more time to address these pressing concerns.In a statement issued by CAN and signed by Archbishop Daniel Okoh ,President, CAN and made available to journalists in Abuja.

CAN also urged all Nigerians to consider alternative means of expressing their grievances.
He however said CAN stands in solidarity with the citizens of nation during these challenging times of economic hardship and pervasive hunger. The statement reads in part, “As we navigate this period of crisis, it is imperative to uphold the constitutional rights of every Nigerian to peacefully protest and express their grievances.
The right to assemble and voice discontent is a cornerstone of our democracy and must be protected and respected by all. Peaceful protests are a powerful tool for civic engagement, allowing the populace to communicate their concerns and hold leaders accountable. However, the anxiety related to the impending protests is heightening, especially given the volatile experiences in countries like Kenya and Pakistan.”We must also draw from our recent history. The #ENDSARS and #RevolutionNow protests, though rooted in genuine grievances, were marred by tragic incidents where miscreants hijacked the process. This led to widespread looting, destruction of properties, and unfortunate loss of lives. These experiences have shown us that mass demonstrations can quickly degenerate into chaos if not properly managed and coordinated.” In light of the planned protests scheduled to commence on 1st of August, CAN urges all Nigerians to consider alternative means of expressing their grievances. We recommend giving the government more time to address these pressing concerns. This period should be used to explore other legal avenues that will not easily give hoodlums the opportunity to hijack the exercise to destroy our national assets or endanger lives and properties. Dialogue, petitions, and town hall meetings are viable options that can yield positive results without the risk of disorder.”We call on the government to cut the cost of governance and expedite its efforts to alleviate the hardships in the land. The opulent lifestyle of political office holders must be addressed to demonstrate the sincerity of those in government to improve the living conditions of the people. Likewise, it is imperative that the government implements the newly approved national minimum wage to provide immediate relief to struggling families.”Furthermore, specific measures must be taken to put an end to kidnappings, banditry, and mass killings that have plagued various parts of our country. The security and well-being of every Nigerian should be paramount, and urgent action is required to restore peace and order.”We also call on the government to expedite its efforts to alleviate the hardships in the land. There is an urgent need for more refined and effective policies that address the root causes of the economic challenges we face. The government must deepen its consultations with stakeholders, including religious leaders, to create a more inclusive and comprehensive approach to problem-solving. By working together, we can devise sustainable solutions that reflect the needs and aspirations of the people.”In these trying times, let us all remember the words of our Lord Jesus Christ: “Blessed are the peacemakers, for they shall be called the children of God” (Matthew 5:9). As we seek to bring about positive change, let us do so with a spirit of peace, love, and unity. Our strength lies in our ability to come together, support one another, and work collectively toward a better Nigeria.”We pray for wisdom and discernment for our leaders, resilience and hope for our citizens, and divine intervention to guide us through these difficult times”.

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