COVER
FG Earmarks N14.6trn for Debt Servicing in Three Years
By Joseph Chibueze, Abuja
The Federal Government has concluded plans to spend a total of N14.6tn on debt servicing between 2022 and 2024, an analysis of official data have shown.
Projections in the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2022 to 2024 show that the government intends to spend N3.
6tn on debt servicing in 2022, N4. 9tn in 2023 and N6.1tn in the 2024 fiscal year, amounting to N14. 7tn.The total projected expenditure for 2022 stood at N13.95tn, comprising N3.4tn for non-debt expenditure, N3.6tn for debt servicing and N3.61tn for the implementation of capital projects.
For 2023, the federal government increased its total projected spending to N15.
54tn, with N6.49tn allocated for non-debt expenditure, and N3.61 for capital expenditure.In the 2024 fiscal year, the government plans to spend N16.8tn to finance its budget, with debt servicing and recurrent expenditure constituting the largest shares, at N6.1tn and N6.4tn respectively.
Only N3.61tn was projected to be spent on capital projects in the same year.
The MTEF/FSP report said the 2022 and 2023 budgets would be prepared based on an oil production volume of 1.88 and 2.23 million barrels per day, respectively, with a benchmark oil price of $57 per barrel and an exchange rate of N410.15 to a dollar.
The parameters that would be applied in the preparation of the 2024 budget include an oil production volume of 2.2 million bpd, a benchmark oil price of $55 per barrel and an exchange rate of N410.15 per dollar.
The federal government had repeatedly defended the country’s debt level, describing it as sustainable.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, had at several occasions insisted that Nigeria does not have a debt problem.
She said what the government needed to do was to increase its revenue-generating capacity in order to boost revenue to about 50 per cent of GDP.
But several economic experts have said the government’s huge borrowings and debt servicing obligations posed a danger for the economy.
A financial expert and the Chief Executive Officer of Flame Academy Consulting, Orji Udemezue, said, “Nigeria is sliding into a serious debt trap. Looking at our debt servicing to revenue ratio, Nigeria is having it very horrible because we are not getting enough revenue from our huge economic activities.
“Therefore we spend almost everything we get from revenue in servicing our debt, and that is a major liquidity problem. And that will lead to very imminent inability to meet our debt obligations and possibly begin to live at the mercy of our creditors: multilateral, bilateral and commercial creditors.”
COVER
Suspected Herdsmen Attack Benue Community, Kill 15
From Attah Ede, Makurdi
Gunmen suspected to be Fulani armed militia, on Wednesday night, reportedly invaded Anyiin town in the Logo Local Government Area of Benue State.
Multiple reports indicated that no fewer than 15 persons were killed in the attack, leaving several others with varying degrees of injuries while yet to be ascertained number were missing.
The attack, which was said to have been launched at about 6:30pm by the well-armed Fulani herders, caught the community unawares as the invaders reportedly emerged from different locations shooting at everyone in sight.
The attackers, who were said to be numbering about 200, were reported to be wielding AK-47 rifles and other sophisticated weapons, operated for about three hours.
An eyewitness and community leader in Anyiin town, Chief Joseph Anawah, said the armed herders overwhelmed security operatives stationed in the town because of their large numbers.
He said it was a coordinated operation, stating that the alleged Fulani terrorists took residents of the town unawares, surrounded the town and shot sporadically.
Anawah said some of the villagers who ran for their dear lives were caught in an ambush laid by the invaders.
He listed some of the victims to include: Mr Orihundu Ati, a retired primary school supervisor and the son of a kindred head.
Also killed was a son to a Chief of Staff to a former Logo council chairman, Tordoo Suswam and a relation of a late District head of Ukemberagya, Zaki John Chembe.
Anawah listed Ukemberagya, Tswarev, Mbawar, Gov, Mbainange, and Tombo among neighbouring communities earlier displaced by the invaders and whose residents were taking refuge in Anyiin before the latest attack.
The community leaders appealed to the federal government and the Benue state government to revive an abandoned Mobile Police barracks project along Akwana-Anyiin-Wukari road to secure the lives and property in the communities.
They lamented that farmers in the affected communities could not harvest their crops because they were being killed and abducted on their farms by the armed invaders.
According to them, communities along the Benue-Taraba border are the worst hit by the marauders’ incessant attacks.”This is the second attack in one month by the Fulani terrorists. On Oct. 9, they attacked Ayilamo town, the headquarters of Tombo Council Ward and killed scores of people. As I speak, people are deserting Anyiin town for fear of the unknown”, Chief Anawah said.
COVER
Nigerians Among Most Malnourished in Sub-Saharan Africa – Abbas
By Ubong Ukpong, Abuja
Speaker of the House of Representatives, Tajudeen Abbas yesterday described growing malnutrition and food insecurity as great threat to Nigeria’s economic stability and public health.
Inaugurating the Local Organizing Committee for the National Assembly summit on nutrition and food security in Abuja, the Speaker reiterated the urgent need for legislative action to restore the country’s productivity and public health.
Abbas who was represented by Deputy Speaker, Benjamin Okezie Kalu noted that Nigeria’s rate of malnutrition is among the highest in sub-Saharan Africa.
He noted that malnutrition, especially among children, stunts physical and cognitive development, impacting long-term educational and economic potential and contributing to broader societal challenges.
The Speaker assured the lawmakers’ full support for the committee’s initiatives, urging collaboration with State Houses of Assembly to create a unified approach to combating food insecurity.
He said, “The need for this National Summit on Nutrition and Food Security has never been more urgent.
“This organizing committee’s mission is to foster collaboration across ministries, engage both public and private sectors, and create a platform for lawmakers, experts, and community leaders to address the root causes of food security challenges.”
The chairman of the committee, Chike Okafor said there is malnutrition across Nigeria, particularly in the north spiking by 51 percent among children.
He described the situation as a humanitarian crisis exacerbated by recent floods in Adamawa, Maiduguri, and Jigawa, which have disrupted food supplies nationwide.
According to him, the summit will help to in the formulation of policies to tackle food insecurity.
COVER
NAICOM Appoints African Alliance Insurance Interim Team
By Tony Obiechina, Abuja
In exercise of its regulatory powers, the National Insurance Commission (NAICOM) has sacked the Board and Management of African Alliance Insurance Plc, one of Nigeria’s oldest life assurance companies.
NAICOM Management said in a statement yesterday that its decision followed years of insolvency and failure of the insurance firm to meet the obligations of annuitants and policyholders.
According to the statement, “The commission, as the primary regulator of the Insurance Sector, announced that it has taken over the Board and Management of African Alliance Insurance Plc, effective today, 30th October 2024.
“This decision follows an extensive monitoring and review of the company’s financial condition, governance, and operational practices, which revealed significant concerns regarding its ability to continue operating in a safe and sound manner which has for some time now generated a lot of uncertainty over claims settlement and payment to annuitants under the company.
”The commission appointed an Interim Management Board to manage the affairs of African Alliance Insurance Plc. Members of the new Board include: Dr. Haruna Mustapha – Chairman, Jacob Erhabor – MD/CEO, Wasiu Amao – Executive Director Technical, Ms. Oremeyi Longe – Executive Director Finance, Anthony Achebe – Non-Executive and Haj. Halimatu Khabeeb – Non-Executive Director.
“The Interim Management Board will oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms,” the statement added.
It explained that commission will work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimize disruption and ensure continuity.
“The objective of this takeover is to protect the interests of African Alliance Insurance Plc’s annuitants, policyholders, other stakeholders, and the broader insurance industry, while ensuring the company’s return to stability and compliance.
“The Commission is committed to maintaining the stability and integrity of Nigerian insurance industry. Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders and public interest,” it noted.