The 36 states of the federation and the Federal Capital Territory grew their external debts by $1.37bn (N270bn at the current interbank exchange rate of N197 to a dollar) in five years, investigation has shown.
Statistics obtained from the Debt Management Office on Sunday showed that the external indebtedness of the subnational governments as of December 31, 2010 stood at $2bn.
However, by December 31, 2015, the indebtedness of the states and the FCT to external creditors had grown to $3.37bn. This shows that the subnational governments’ external debts rose by 68.44 per cent in the five-year period.
The Punch had exclusively reported last week that the debt profile of the entire nation rose by N1.2tn in one year.
Some states, over the period, maintained their positions on top of the borrowers’ club, while others jumped on the list.
Lagos State maintained the top position within the period. In 2010, it owed external creditors $400.59m. However, by December 2015, the debt had climbed to $1.207bn.
This means that within the period, the Lagos State Government grew its external debt by $807.31m. This reflects a growth rate of 201.53 per cent. The state holds 35.84 per cent of the country’s subnational external debts.
The external debt of Kaduna State stood at $157.36m by December 31, 2010; making it to occupy the second position on the list of the most externally indebted states of the federation.
By the end of December 2015, the state still maintained the second position with a total of $226.37m. This means that within the period, the state’s external debt rose by $69.01m, reflecting 43.86 per cent increase.
With an external debt of $41.19m in 2010, Edo State was not among the most indebted in the country. However, by the end of December 2015, the state’s external debt profile had leapt to $168.19m, showing a difference of $127m. This means that the state’s external debt rose by 308.34 per cent within the five-year period.
Cross River State owed external creditors $110.91m as of December 31, 2010. By the end of 2015, the figure had risen to $136.4m. This shows an increase of $25.5m, or 22.99 per cent.
Ogun State had an external debt of $81.64m as of December 31, 2010. By the end of last year, it had risen to $103.33m. This reflects an increase of $21.68m or 26.56 per cent.
Katsina and Oyo states were among the most externally indebted states in the country in 2010, but by the end of December 2015, they had reduced their exposure to foreign debts although they remained among the most exposed states.
While Katsina State’s external debt went down from $81.14m to $72.15m; Oyo State’s was reduced from $87.43m to $66.75m.
Among the states least exposed to foreign debts by the end of December 2015 are Taraba, $22.93m; Borno, $23.19m; Plateau, $30.46m; Kogi, $33.63m; and Jigawa, $34.08m.
Remittance to Nigeria, Other African Countries Hits $53bn in 2022
Remittance to Sub-Sahara Africa rose to $53 billion in this year
The World Bank report has indicated that remittance to Nigeria and other countries in Sub-Sahara Africa has reached $53 billion in 2022. This represents an increase of 5.2 percent when compared with 2021.
Investors King understands that remittances into Nigeria and Kenya constitute a significant percentage of all the remittances into the African Sub-Sahara region.
“Remittances to Sub-Saharan Africa, the region most highly exposed to the effects of the global crisis, grew an estimated 5.2 percent to $53 billion in 2022, compared with 16.4 percent last year (due mainly to strong flows to Nigeria and Kenya),” the report stated.
According to the World Bank report on Migration and Development, prepared by the bank’s Migration and Remittances Unit and Development Economy, remittance has constituted an important part of the Gross Domestic Product (GDP) for a number of African countries.
For example, Remittances as a share of GDP in the Gambia is 28 percent while it stood at 21 percent in Lesotho, the report noted.
The report added that remittances are an important source of household income for most Low and Middle-Income Countries (LMICs). Through remittances, most of the households in the LMICSs have been able to survive harsh economic conditions such as the Covid-19 pandemic.
“Remittances are a vital source of household income for LMICs. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households”.
The World Bank noted that although the rising price of goods has adversely affected migrant incomes, the reopening of the economy and international borders has led to the increase of remittance inflow into Sub Sahara Africa.
Meanwhile, the global bank acknowledges that countries that witnessed scarcity of foreign exchange rates or multiple exchange rates officially recorded a decline in remittances inflow as migrants shift to alternative channels which promise better rates.
The report noted that sending funds back home from some countries in Europe and America could attract a transaction fee that is as high as 7.8 percent on average.
Insider Dealing: Hafiz Mohammed Bashir Acquires 37 Million Shares in Unity Bank
Alhaji Bashir carried out the acquisition in 32 different transactions at an average price of N0.51 a unit between November 8th and 11th 2022
The management of Unity Bank Plc has announced that a non-Executive Director, Hafiz Mohammed Bashir scooped 37,681,947 shares of the bank.
The transaction was disclosed in a statement signed by the bank’s secretary, Alaba Williams.
Alhaji Bashir carried out the acquisition in 32 different transactions at an average price of N0.51 a unit between November 8th and 11th 2022, according to the disclosure available on the Nigerian Exchange Limited (NGX).
Insider dealing is the buying or selling of a company’s shares by someone with a piece of insider information not available to the public. Insider dealing is illegal in the U.S. but not in Nigeria as long as it’s disclosed.
The Nigerian Security and Exchange Commission (SEC) mandated all listed companies to disclose insider trading to enforce transparency across the nation’s Exchange market.
Also, insider dealings can help stakeholders and retail investors assess the confidence of top company executives in a listed company. While Alhaji Bashir’s acquisition could demonstrate his trust in the future of the company, it could also mean positioning ahead of a major company’s event given his position.
Hafiz Mohammed Bashir Profile
In 2017, Hafiz Mohammed Bashir was appointed as a Non-executive Director following the Central Bank of Nigeria’s approval.
Hafiz Mohammed Bashir is an accomplished professional with vast experience in the public and private sectors. He retired at the apex of Local Government Administration in Katsina State in 1992 and has chaired the Board of many companies – including Fiztom International Ltd, HafadGlobal Resources limited and Fiziks Nigeria limited.
Alh. Hafiz who is currently in private business holds a Post Graduate Diploma in Management from Abubakar Tafawa BalewaUniversity, Bauchi, and an Advance Diploma in Public Administration from the University of Jos, a higher Diploma in Local Government Administration- AhmaduBello University. Zaria and Diploma in Insurance from ABU, Zaria He is also currently undergoing a Master’s programme in Business Administration at the Business School of the Netherlands.
See the details of the transactions below.
Lagos Chamber of Commerce Advised FG on Borrowing, Proffer Solutions to Foreign Exchange Crises
LCCI lamented that additional borrowings will further increase Nigeria’s debt-servicing bill
The Lagos Chamber of Commerce and Industry ( LCCI) has advised the Federal Government to explore alternative ways to finance the deficit in the 2023 budget proposal. LCCI lamented that additional borrowings will further increase Nigeria’s debt-servicing bill.
Investors King understands that the 2023 budget proposal as submitted to the National Assembly by the president has a deficit of N10.78 trillion.
Speaking at the organisation’s 134th Annual General Meeting (AGM) held in Lagos, LCCI President, Dr Olawale Cole, stated that although the chamber does not totally frown at the budget deficits, the chamber, however, is not disposed to issuing new commercial loans as well as bilateral and multilateral loans to finance the deficit.
Dr. Olawale added that while President Buhari alongside other African presidents is seeking debt cancelation from international creditors, the presidents across the African continent keep piling up debts.
“The world is a bit confused at our president’s well-publicized call for debt cancellation at the last United Nations General Assembly,” he noted.
Speaking further on the danger of the country’s incessant borrowing, Olawale said “the borrowings are significantly increasing, and Nigeria is struggling to service these debts due to revenue mobilisation challenges and an increased fuel subsidy burden”.
“The International Monetary Fund (IMF) has warned that debt servicing may gulp 100 percent of the federal government’s revenue by 2026 if the government fails to implement adequate measures to improve revenue generation,” he lamented.
Similarly, the LCCI president also spoke on the foreign exchange challenges in Nigeria. He noted that the major cause of the fall in naira is a result of the drop in oil output and weak production amid increased demand for foreign currency.
“The real solution to our forex scarcity crises is to boost production and expand exports. We must also resolve the crises around oil production, as 80 percent of forex earnings come from oil and gas exports,” he said.
FirstBank, Others Partner With Junior Achievement on Africa’s Largest High School Entrepreneurship Competition
Property Tech Company, VENCO Secures $670,000 Pre-Seed Funding
ASUU Strike: FG Moves to End Incessant University Strikes, to Review University Autonomy
News4 weeks ago
Npower News: What You Need to Know Before Taking ‘Work Nation’ Eligibility Test
News3 weeks ago
Npower News: NASIMS Announced “Work Nation’s” Minimum Cut-Off Mark
Travel2 weeks ago
Nigerians Eligible For Residence Permit in Norway
News4 weeks ago
Npower News: NASIM Provides Requirements Resolution For Failed August Stipend
News2 weeks ago
Npower News: Latest Update On Npower Payment for Beneficiaries
Blockchain4 weeks ago
FG to Train 30,000 Nigerians on Blockchain Technology; Released Link For Registration
Travel1 week ago
Passengers Groan as Air Tickets Increase by More than 100%
News3 weeks ago
Npower Clarifies “Work Nation” Programme, State It is Optional