The Federal Government spent a total of N2.95tn to service domestic debts for a period of five years from 2010 to 2014, investigation has shown.
Statistics obtained from the Debt Management Office in Abuja on Thursday showed that the actual amount spent on servicing the domestic component of the country’s total debt rose from N334.66bn in 2010 to N846.64bn by the end of December 2014. The amount spent on domestic debt in 2015 is not yet available.
Each year, the Federal Government sets apart funds in the budget for the servicing of both foreign and domestic debts. The actual amount paid, however, may differ from what is budgeted.
The debt service obligation of the Federal Government showed an increase of N511.98bn within the period of five years. This means that in the period, the country’s domestic debt service obligation rose by 152.99 per cent.
The increase also reflected the rise in the size of the country’s domestic debt portfolio from N4.55tn in December 2010 to N7.9tn on December 31, 2014, a difference of 73.63 per cent.
This means that while the domestic debt component rose by 73.63 per cent within the period, the cost of servicing it also increased by 152.99 per cent. However, some of the debts that had fallen due within the period might have been liquidated.
As of December 31, 2010, the domestic debt of the Federal Government was classified as FGN Bonds, N2.9tn; Nigerian Treasury bills, N1.28tn; treasury bonds, N372.9bn; and development stocks, N220m.
However, by December 31, 2014; the FGN Bonds accounted for N4.79tn; Nigeria Treasury bills, N2.82tn; and treasury bonds, N296.22bn. The development stock had been phased out by then.
In terms of interest payment in 2014, the government paid N511.78bn on FGN Bonds; Nigeria Treasury bills, N300.27bn; and treasury bonds, N34.59bn.
The previous year, FGN Bonds accounted for N464.67bn of the total interest payment; Nigeria Treasury bills, N293.88bn; while treasury bonds accounted for N35.55bn. The total interest paid on domestic debt for the year was N794.1bn.
In 2012, with a total domestic debt service obligation of N701.38bn, FGN Bonds accounted for N354.08bn; Nigeria Treasury bills, N310.79bn; and treasury bonds, N36.5bn.
For 2011, the interest paid on domestic debt amounted to N518bn, with the FGN Bonds accounting for N293.79bn; Nigeria Treasury bills, N186.72bn; and treasury bonds, N37.47bn.
The interest payment for 2010 showed that FGN Bonds gulped N231.11bn; Nigeria Treasury bills, N65.07bn; while N38.43bn was paid as interest on treasury bonds.
Within the period, some domestic debts that were due for payment were either redeemed or refinanced. For instance, in 2014, treasury bonds amounting to N865.81bn were redeemed, while in 2013, N94.17bn of domestic debt was redeemed.
In the previous year (2012), a total of N456bn of domestic debt was refinanced. In 2011, N223.67bn of the domestic debt was refinanced, just as N317.76bn was refinanced in 2010. Debt redemption means that the principal sum of a debt that is due is paid off, while refinancing means that a fresh loan is taken to pay off a debt that is due.
The interest payment in 2014 as a percentage of the total domestic debt showed that the average cost or interest on the domestic debt for the year stood at 10.71 per cent. In 2010, the rate stood at 7.35 per cent.
Generally, the nation’s domestic debt market has been very active and the rates are regarded as attractive. For this reason and because of the safety of the government’s debt instruments, a number of investors, including Pension Fund Administrators, have been very active in the market.
The PUNCH had exclusively reported on July 27, 2015 that the country’s total debt stock stood at N12.12tn as of June 30, 2015, with the domestic debt of the Federal Government accounting for N8.39tn.
For 2016, the Federal Government expects to borrow N984bn from domestic sources and N900bn from foreign sources to finance the capital component of the budget.
It has also set aside the sum of N113bn as a sinking fund for the retirement of maturing loans, while N1.36tn has been proposed for foreign and domestic debt service obligations.
In The Fight Against Corruption, No Individual is Bigger Than The State – Buhari
In response to the suspended acting EFCC Chairman, Ibrahim Magu, President Muhammed Buhari, lamented that the anti-corruption war becomes endangered “when persons entrusted with the responsibility of that magnitude become suspects themselves.”
Buhari, whose vision is to put an end to corruption in Nigeria, believed that every aspect of the nation’s life is enshrined in corruption and it’s of major concern when leaders of institutions saddled with the mandate to fight the menace are found in the waves of the corruption they claimed to be fighting.
This act is a great abomination not only because it strikes at the root but it also trivialises and undermines the anti-corruption crusade itself, the President explained.
He further said that in a bid to put an end to this great abomination, he had set up Ayo Salami Panel to unravel the mystery behind the mystique of Magu’s alleged involvement in corruption that his administration is fighting.
Buhari said that his administration is ready and willing to go all out in the fight against corruption, and no one is too big nor above the law to become a victim of anti-graft’s sledgehammer.
The president said, “However, the stark reality of widespread corruption becomes poignant when allegations of corruption touch on the leadership of an institution set up by law to coordinate and enforce all economic and financial crimes.
“It is an abomination that strikes at the root and undermines the government’s anti-corruption programme.
“It was in response to the serious allegations against the Economic and Financial Crimes Commission that I set up a panel headed by the Honourable Justice Isa Ayo Salami, retired President of the Court of Appeal, via an Instrument dated 3rd July 2020 pursuant to the Tribunals of Inquiry Act (Cap T21, LFN, 2004).
“We recognise that there are more grounds to cover in the war against corruption, and we are prepared to go out to possess those lands by cutting off any stream that nourishes the seed of corruption and supports its growth.
“Let it be known that in the fight against corruption, no one is too big to tackle, as no individual is bigger than the Nigerian State!”
In Search For The New EFCC Chairman, Justice Ayo Salami Panel Advises Buhari to Look Outside The Police Force
Justice Ayo Salami’s panel advised President Muhammadu Buhari to look outside the Nigerian Police Force for the new Chairman of the Economic and Financial Crimes Commission (EFCC).
A credible source confirmed that President Muhammadu Buhari may have decided to follow the panel recommendation to avoid a similar fate to that of Magu, the former chairman.
The source also confirmed that the panel recommendation was a result of sleaze allegations against suspended acting Chairman, Ibrahim Magu. Also, that search team would be constituted in the next few days to slim down the possibilities of finding the right candidate to bring into reality the President’s vision of a corrupt-free anti-graft agency.
The source further confirmed that “the sleaze and abuse of office allegations against Magu, a commissioner of police, were overwhelming,” and that he may be put on trial.
As advised by the panel, the new EFCC chairman should be in interim position for two years.
It was suggested that the recommendation from the Justice Ayo Salami panel might have pinned Magu, according to Femi Adesina, the presidential spokesman, he advised president Buhari to consider looking into other law enforcement or security agencies, as well as considering important and diligent staff of EFCC in his plans to appoint the next EFCC chairman, as s provided in the EFCC Establishment Act of 2004.
Following the Justice Ayo Salami panel recommendation, Salami said “Your Excellency, permit me to say that four successive chairmen of the EFCC from inception have been drawn from the police. Therefore, in appointing a new chairman of EFCC, consideration should be given to candidates from other law enforcement or security agencies and qualified core staff of EFCC as provided in the Economic and Financial Crimes Commission (Establishment Act 2004).
“It is also important to point out that at the moment, 970 policemen (114 drivers, 641 mobile policemen and 215 operations), are on secondment in the EFCC.
“Therefore, an exit plan for the disengagement of the police and other personnel within two years from now should be considered. This will address the issue of non-promotion of core staff for over nine years.
“Your Excellency, our thinking here is that whoever you are appointing other than a core EFCC staff, should be in transitional capacity of two years during which period, the arrangement would be made for the appointment of any of the core staff who has been commended by National Crime Agency, UK and other international law enforcement for their professionalism”.
Justice Ayo Salami appreciated the president for giving members of the panel an avenue to serve the country.
Ezekwesili Presents Research Findings on Fixing Nigeria’s Politics
She stated this at the public launch of #FixPolitics, where she presented findings from her fellowship research on how to fix politics in Nigeria and Africa more broadly.
Ezekwesili invited 124 Nigerians from diverse fields of endeavour and geopolitical zones to collaborate on designing the research findings over the last one year as a Work Study Group. The group is the co-leadership organ responsible for an integrated citizens-led actions to fix the broken political system.
She pointed out that politics in Nigeria was not fulfilling the core requirement of a democratic system, which was to provide good governance for the common wellbeing of citizens.
“My research findings primarily reinforce that the poor state of affairs in Nigeria is the consequence of the quality of politics at play. Politics is at the heart of everything any society can or will become. The essential process of democracy is not complete without politics,” the 2019 Nigerian Presidential candidate said.
In her study, she established primarily that in a democratic system, “there are three triangular pillars which determine the kind of outcomes that politics will produce for the people.
Explaining the concept, the former World Bank vice president said, “On the right angle or demand side of the triangle is the electorate; on the left or supply side is the politicians, political class and parties; and at the top is the regulatory – constitutional, legal, electoral and institutional context within which the politics happen.”
According to her, these tripod pillars create an interconnecting network of actions that determine the outcomes of every political system.
“Every pillar or angle of the triangle must function effectively and concurrently with the other two to enable the right quality of politics that will deliver strong economic performance for a people.
“In evaluating the outcome of politics in Nigeria and Africa, my study established that the quality of the electorate, quality of political class and quality and lack of independence and capacity of political institutions constitute a structural and systemic problem for democracy and must therefore be fixed by citizens,” Ezekwesili said.
She also said, “The research found that Nigeria is ridden with politicians without competing ideas of how to solve the problems of citizens, who lack a culture of public service and subordinate the common good to their personal and narrow interests.
“The constitutional, legal, institutional and regulatory environment is compromised by the political class to more frequently act without independence, fairness and adherence to the rule of law. The political space is thus completely monopolised by the supply side of governance, that is the political class, thereby causing political, economic and social stagnation for the nation and people.
“Currently in our politics, voters generally lack the level of influence necessary to compel the right political processes and good outcomes that serve the good of all in society.
“The bright prospect is that evidence from the #FixPolitics research shows that citizens are the only angle of the triangle that can act and propel systemic change by collectively and decisively acting for their common good.”
To alter the status quo, Ezekwesili said only the electorate “have the incentive to correct the abnormality in a political system.”
She added, “It is the collective effort of citizens that can change the quality of political class and compel the kind of constitutional and electoral changes required to achieve good governance.”
Delivering a keynote address, former President Felipe Calderon of Mexico said there was an enormous gap between the interests of the citizens and that of the politicians, which he saw as a major problem to a democratic setting.
“To fix politics in Nigeria, the citizens and the politicians must work together and represent the same in practical life,” he said.
Calderon further said that “citizens must change their perception of politics and political participation rather than holding to a view that politics is for corrupt and dishonest people.”
According to him, corrupt people are quite the opposite of what politics stands. “To fix politics is what happens when the people participate and take responsibility to provide political participation with ethical sense and ethical parameters,” Calderon added.
In a goodwill message, former President of Malawi, Dr. Joyce Banda, said politics should be seen as an inclusive love affair and if institutionally implemented, “Africa will witness a great change in its democratic system.”
While dissecting the dynamics of democracy, three intergenerational panels with discussants like Prof. Atahiru Jega, Prof. Chukwuma Soludo, Pastor Tunde Bakare, Aisha Yesufu, Iyinoluwa Aboyeji, Jude Abaga(also known as M.I Abaga), Cynthia Mbamalu, Yemi Adamolekun, Samson Itodo, among others, agreed that there was an emerging consensus to fix politics in Nigeria as the status quo was untenable and unsustainable.
Speakers like Dr. Hakeem Baba-Ahmed, Ayo Sogunro, Ndi Kato, Adewunmi Emoruwa, and Dr. Usman Bugaje highlighted that “there is a need for young people and women to fully engage in partisan politics, create platforms for political engagement, use politics as a tool for framing a shared vision based on a new dominant value orientation of public service, connect the elite with the grassroots and mobilise the Nigerian public to mount pressure on the legislature for the right constitutional and electoral changes.”
Business2 months ago
Npower News on Permanency for Batch A, B
Forex2 months ago
Naira Improves Against Global Counterparts on Black Market
Business1 month ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Forex3 months ago
Zenith Bank Joins Other Banks to Cap International Spend Limit at $100/Month
Cryptocurrency2 months ago
Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue
Business3 months ago
Again, UBA Reduces International Spending Limit on Naira Card as Forex Scarcity Persists
Business3 months ago
FG Approves Stipends for Exited N-Power Beneficiaries
Stock Market3 months ago
Zenith Bank Declares 30 Kobo Interim Dividend for H1 2020