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Nigeria is Facing Serious Revenue Problem – Budget Office

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  • Nigeria is Facing Serious Revenue Problem – Budget Office

The weak revenue to GDP ratio has been highlighted as a major issue to the Nigerian economy and growth.

According to the Director-General, Budget Office of the Federation, Mr Ben Akabueze, there is an urgent need to up revenue generation.

Akabueze, who attended the Strategic Dialogue on the Morocco-Nigeria Relations in Abuja, said: “For us in Nigeria, lately, there has been a lot of talk about the government’s borrowings and those who talk about it are justified to express the concern. But the truth is that I think we are generally having the wrong discussion. I personally don’t think we have a debt problem, but we have a serious revenue problem, which, if we do not address, will snowball into a debt problem.”

The Director-General pointed out that Nigeria’s debt to GDP ratio stood at about 20 percent, while Morocco is 63 percent with over 3.4 percent deficit to the GDP. Nigeria deficit to GDP is capped at 3 percent. Meaning, Nigeria has one of the lowest debt to GDP ratio in the world.

However, debt service to revenue ratio rose above 60 percent in 2017 when national debt climbed to $73 billion.

Mrs Catherine Pattillo, Assistant Director, Fiscal Affairs Department, IMF, said Nigeria’s debt to revenue, which she put at 63 percent is “extremely high”.

According to her: “The ratio of federal government interest payment on debt to revenue is extremely high, 63 percent. So there is a need to build revenue so that you have more space to spend for infrastructure, social safety nets etc otherwise interest is eating up most of your revenue.”

Speaking on oil revenue, Akabueze said despite the surge in oil price to about $80 a barrel, Nigeria’s revenue remained weak. Partly, because of the high cost of importation of refined petroleum product.

“On oil price, for us, it is a double-edged sword, unfortunately. This ought to be a season where we should be clicking glasses with regards to the oil price. But right now, practically every drop of refined petroleum product that we consume in the country is imported.”

“And the one single factor that determines the price of the refined product is the price of crude. In essence, while we export the crude at about $80 (per barrel), we effectively import back the same crude at about $100 importation price for refined products. And that explains why despite the strong oil prices, we are not seeing a corresponding growth in government revenue.”

Therefore, unless the nation up its revenue generation, the Federal Government will struggle to finance capital projects due to high recurrent expenditure.

Meanwhile, the Federal Government has reduced its agency revenue by N223.36 billion for 2019, citing slowing economic activities and growing economic uncertainty.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Genetically Modified Foods Dangerous To Your Health, Research Organisation Warns Nigerians 

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A non-governmental organization that researches into how ugly trend of increasing incidents of chronic degenerative diseases in Nigeria could be prevented, Living Science Foundation (LSF) has warned governments and citizens about major dangers posed by consuming Genetically Modified Organsams (GMOs) foods in the country.

Describing the situation as an urgent environmental-health concern in Nigeria, the group expressed deep concern over ongoing deluge of deployment of GMOs foods in the country, citing adverse health effects such as cancers, organ damage, allergic reactions, antibiotic resistance and reductions in nutritional content for consumers of GMOs foods.

The research-driven foundation stated this at a press conference held as part of activities of the 9th National Conference on Environment and Health (NCEH), holding at the Obafemi Awolowo University, Ile-Ife on Wednesday.

On the impending take-over of Nigeria’s staple foods by GMOs, the statement issued by the Foundation and signed by LSD President, Prof. Joshua Ojo and Chairman of the NCEH Planning Committee, Dr Adeniyi Okinni, noted that “there are very good reasons to doubt the thoroughness of the approval processes for these products in Nigeria,”

They therefore urged relevant authorities in Nigeria to conduct appropriate chronic toxicity testings that transparently ascertain the safety of GM food products before their deployment for public consumption in the country.

“The Living Science Foundation is deeply concerned with the ongoing deluge of deployment of GMO foods in Nigeria.  At the beginning of the year, on January 11, approval was given for the cultivation of GMO TELA Maize in Nigeria. On the heels of this were the announcements that GMO cassava and potatoes are also on their way. Transgenic rice and sorghum are also known to be lurking somewhere in the pipeline. Since 2019, Nigerians have been officially eating the world’s first genetically modified beans (Bt Cowpeas). The frightening implication of all these, is that virtually all the basic staples in Nigeria are being bioengineered and released for commercial cultivation.  This is unprecedented anywhere in the world.

“We have earlier expressed (in May 2017) our deep concerns on the use of GMOs as food in Nigeria. These largely have to do with the obvious issues of loss of food sovereignty and the established adverse health effects. The germlines for the GMOs being released are proprietary products, designed and developed by multinational monopolies with history of aggressive and ruthless commercial operations. It is clear that in course of time, we would need to revert to them, repeatedly, to address issues that would inevitably arise with the deployment of these novel “black-box” products.

“It appears insane that we should submit our precious God-given food sovereignty into the hands of such (or any other) entities in this manner.  As for adverse health effects following chronic ingestion of GMOs, these, including cancers, organ damage, allergic reactions, antibiotic resistance and reductions in nutritional content, are very well-established. In her ongoing tussle with the North America Free Trade Zone wherein she is seeking to stop further importation of GMO foods from the United States, Mexico has cited over 150 peer-reviewed research published in top journals, documenting the incontrovertible adverse health effects associated GMO foods.

“There are very good reasons to doubt the thoroughness of the approval processes for these products in Nigeria. For instance, the Germany-based Testbiotech e.V., Institute for Independent Impact Assessment of Biotechnology, published an extensive peer-reviewed Report, documenting the utter incredible shoddiness characterizing the Risk Assessment exercise used to greenlight GM cowpea (beans) in Nigeria.  This damning Report, to all intents and purposes, has been largely ignored by concerned authorities in Nigeria. Worse, even the basic legal and reasonable requirement that GMO food products be appropriately labelled (Section 23(2) h of the NBMA Act 2015)10 is flouted with outright impunity.

“We therefore hereby call on the relevant Nigerian authorities (specifically the Nigeria Biosafety Management Agency, NBMA, and the National Agency for Foods and Drugs Administration and Control, NAFDAC) to conduct (or commission) appropriate chronic toxicity testings that transparently ascertain the safety of GM food products before their deployment for public consumption in Nigeria. Also, these Agencies are enjoined to comply with the Nigerian laws, that require that such products, if eventually licensed, are appropriately labelled to give the public informed choice in what they feed into their bodies,” they said.

The organization has commended the announced incorporation of malaria vaccine into routine childhood immunization schedule, while harping on the need to reposition medical and health records for improved environment-health outcomes.

At the programme, Dr. Agnes Yemisi Asagbra spoke on the topic: “Transgenic Solutions (GMOs) in Food, Human Health and Environment in Nigeria: Safety Considerations,” calling on Nigerians to be cautious about what they consume.

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CAN Reacts As Abia Becomes Only State In Nigeria To Tax Churches On Signpost, Demands Immediate Reversal

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St. Francis Church Shooting

The Christian Association of Nigeria (CAN) in Abia State has reacted to the newly imposed tax on church signposts in the state.

The association made its position known on Tuesday via a letter titled “Taxation of Church Signposts in Abia State”.

In the statement, signed by the State CAN chairman, Rev. Ojo Ojo Uduma, and the State CAN secretary, Rev. Dr. Francis E. Okere, CAN revealed that Abia State is the only state in the whole of Nigeria that is taxing churches on their signposts.

CAN described the move as a regrettable one especially as the state is known as a Christian state having earned the name God’s own state.

The body called for the immediate reversal of the policy by the government to save the state from having an anti-Church reputation.

The letter read: “We write to express our displeasure over the state government policy of compelling churches to be paying taxes on their signposts.

“As a Christian and God’s own state, it is regrettable that Abia State is the only state in the whole federation that is taxing churches on their signposts.

“We therefore passionately plead with your Excellency as a matter of urgency to carefully look into this matter and possibly rescind the policy to avoid compelling the body of Christ in the state from seeing the regime as anti-Church.

CAN proposed a roundtable discussion with the government to figure out the way forward on the issue.

“Furthermore, leaders of the Christian body in the state can be invited for a roundtable discussion on the way forward over this very little but delicate issue.

“While looking forward to your favourable response, accept our esteemed assurances of our unalloyed support and prayers,” the statement concluded.

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Wike Declares War on Begging in Abuja: FCT Beggars to Face Eviction by Monday

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Nyesom Wike

Beggars in the Federal Capital Territory (FCT), Abuja, may need to start looking for other means of survival as Minister Nyesom Wike has vowed to end street begging in the city.

The Minister decried the high influx of beggars in the FCT and the embarrassment it brings to the city.

The former Rivers State Governor spoke during the flag-off of the construction of an access road from Ring Road 1 by N16 to the Judges Quarters and internal roads within Judges Quarters in Katampe District on Tuesday, October 22.

Wike, who declared war against insecurity, noted that many beggars in Abuja are not genuine but criminals.

He urged Nigerians to take their relatives off the streets, as such behavior will no longer be tolerated from Monday.

He emphasized the government’s commitment to not just providing infrastructure in the FCT but also ensuring good security for residents and visitors.

He said, “In terms of security, let me say it clearly now. We have declared war. Abuja is returning to a city full of beggars. I mean, if you know you have a sister, or you have a brother who is a beggar on the roads, from next week, we will remove them. We will take them out of the city. It is embarrassing that the first thing people see when they come in are just beggars on the roads. Sometimes, they may not even be beggars. They may be criminals pretending to be beggars. We will not allow that.

“So, I am giving a public order; from now till Sunday is the grace period. From Monday, we will remove them. We want to have a city that we can truly call a city. It is very embarrassing. We are fighting insecurity, and people are carrying plates as if they are beggars; maybe they are informants.

“So please, understand that it is not only infrastructure we are providing. We want to give you good security so you can sleep well with both eyes closed.”

Wike also mentioned the role of the National Assembly in the fight against insecurity in Abuja.

According to him, swift passage of the budget will enable ministers to effectively do their jobs, which is the implementation of the budget.

“I know that some of you may not be happy. Sometimes, we don’t need to make you happy. What is important is that we must do our work. If you are not happy, there is nothing we can do. The security and well-being of the people are key. That is why I have told the National Assembly members that we will do everything required to ensure people know that the National Assembly is doing all it can to support. Their role is to pass the budget on time. Ours is to implement it. I know that by 2025, they will continue to give their full support, because I know they will always stand to approve our budget.”

Wike disclosed that the road project will be ready by May next year, adding that his administration will continue to impact other sectors and will include the Area Councils in the developments.

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