Month: March 2023

Debt Management Office (DMO) and African Centre for Leadership, Strategy and Development (Centre LSD) have tasked the incoming government on revenue generation to tackle Nigeria’s debt deficit.

The stakeholders made the call on Wednesday, in Abuja at a one-Day Leadership and Development Policy Dialogue Series (LDPDS) with the theme “Nigerian Debt Sustainability Threat: Issues, implications, Lessons and Solutions for the Next Administration”.

Director, Portfolio Management Department of the DMO, Mr Dele Afolabi, said that Nigeria had to be deliberate with revenue generation to harness a balanced economy because currently, the revenue did not match the high debt servicing burden of the country.

According to Afolabi, this is imperative since revenue pays debt because the more revenue you have ,the less you have to borrow going forward .

He said although Nigeria had the highest Gross Domestic Product(GDP) in Africa but its government generated revenue to GDP ratio is lower than that of most African countries and this can be tackled through taxes among others.

“The people are not paying the right taxes ,we don’t have the right culture of taxation and revenue for government. So, I think ,looking at the next government ,the key focus should be on how to grow government revenue.

“Most people really don’t pay taxes ,apart from people that receive salaries in the formal sector a lot of people are either not paying tax at all or not paying as they should ;so there a lot of leakages in terms of government revenue.

“If we have the highest GDP in Africa, then we should also have the highest revenue but that is not the situation.’’

Afolabi, therefore, recommended that government should reduce its over dependence on crude oil and harness other resources and solid minerals and block all leakages and grow revenue to reduce accumulating debt.

He also called for stringent action against tax defaulters adding that in other climes ,evading tax payment was criminal and people go to jail for it.

The Executive Director of Centre LSD, Mr Monday Osasah, said that the dialogue was imperative following the Federal Government outcry that Nigeria’s debt sustainability had become threatened following the recent rise in its revenue shortfalls.

Osasah said that according to the Minister of Finance, Nigeria is expected to spend 60 per cent of its total revenue on debt servicing in 2023 and this portended a grave threat to the economy.

“According to Nigerian Bureau of Statistics (NBS) in its Nigerian domestic and foreign debt Q3 2022.

“Nigeria’s debt stock which includes external and domestic debt rose from N42.84trillion or 103.31 billion dollars in the second quarter of the 2022 to N44.06 trillion or 101.91 billion dollars in the third quarter same year.

“The debt figure comprised the debt stock of the Federal Government, the 36 states and FCT.

“The burgeoning trend of our debt is worrisome especially when it is now being used for debt servicing rather than for growing and developing our infrastructure .’’

Osasah said that Nigeria’s debt service-to-revenue ratio is put at 83 per cent of quarter 3,2022 and the ratio had been on the rise as Nigeria faced a dwindling government revenue while government expenditures have increased.

He said that considering the grim reality, the need for begin to think and commence advocacy for budgetary reforms, fiscal prudence and revenue innovation for the next government was paramount.

He said without these, it would difficult for the incoming administration to rescue the country from the weakening debt sustainability trend.

Prof. Isah Mohammed ,a Professor of Transport and Financial Economics ,Department of Economics ,University of Abuja, a key speaker at the event, said public debt was a crucial tool for government to finance public spending .

Mohammed said that this was, especially when it is challenging to increase taxes and cut spending and the procedure has resulted in government having enormous unpaid debts overtime.

“Another way to accelerate economic growth is contracting reasonable debt to pay for infrastructure and public projects

“In order to encourage long-term development ,the government should also ensure that borrowing is done on conditions that are consistent with entrenching debt sustainability and that borrowed funds are wisely invested in the economy’s value added sectors.’’

Mohammed said that Nigeria should accomplish this to resolve its debt problems, improve its credit standing and achieve sustainable growth.

He also called for effective tax administration to tackle revenue challenges and the need to ensure compliance to remittances devoid of all form of evasion in the system.(NAN)(www.nannews.ng)

Source: News Agency of Nigeria

Access Bank in partnership with AfriGOpay, has launched the first national domestic card designed to meet the needs of the Nigerian payment industry.

Mr Victor Etuokwu, Deputy Managing Director, Retail Banking, Access Bank, said this in a statement on Thursday in Lagos.

Etuokwu said that the scheme, championed by the Central Bank of Nigeria and the Nigerian Interbank Settlement System (NIBSS), would provide innovative solutions to users of financial services in Nigeria, Africa, and across the global markets.

“It is with excitement that we announce that Access Bank, Nigeria’s largest retail bank with over 60 million customers, is the first financial institution in Nigeria to successfully issue the first live card of the Nigeria’s National card scheme- AfriGO.

“The launch of AfriGO is another milestone in the development of a vibrant and rapidly expanding payments industry.

“Consumers demand value in real time, not just transactions. With AfriGO, we can provide valuable card benefits, robust loyalty rewards, and a compelling incentive to utilize electronic payments rather than cash,” he said.

Etuokwu also said the AfriGO Card had additional benefits designed to facilitate the growth of Nigeria’s payment ecosystem, thereby supporting more tailored payment services.

He said it would strengthen payment security, expand financial participation, guarantee data sovereignty, eliminate FX dependency, and provide Nigerians with several other benefits.

This, he said, would allow cardholders to enjoy increased affordability and more flexible payment options.

The statement quoted Mr Robert Giles, Senior Retail Advisor, Access Bank as saying, “the national card scheme will operate locally as it is tailored to the specific needs of the country.

“We have also recorded successful purchases on POS and ATMs which began on March 14, 2023.

“Domestic ownership of a local card scheme eliminates demand on foreign exchange and reduces cost of transacting.

” It will also help us partner with local fintechs and payment companies to build solutions on the AfriGO scheme that solve customers’ pain points,” he said.

He also noted that the national card scheme came a crucial time for the national payments’ infrastructure where demand for convenient alternatives to cash was at a peak.

He said the bank believed that the AfriGO scheme was a new building block that would support continued progress in the payments system, building on Nigeria’s position as the sixth most developed real-time payments market in the world.

It also quoted the Chief Executive Officer of NIBSS, Premier Oiwoh, as saying that the payments landscape in Nigeria has continued to evolve via seamless and convenient real-time electronic payment solutions driven by innovation and advancement in technology.

“The launch of our national domestic card scheme AfriGO is very timely; AfriGO will drive our financial inclusion goals amongst many benefits, and we are thrilled that Access Bank is the first bank in Nigeria to issue AfriGO cards to its customers.

“Access Bank has demonstrated the much-needed commitment to enhancing financial inclusion, and we urge other financial institutions to commence issuing AfriGO for more accessible and convenient payments for all Nigerians, regardless of their location or financial status,” Oiwoh said.

The statement also quoted Aminu Maida, the Executive Director, NIBSS, as saying, ” with technological advancements, there are more options for payments and the recently launched national domestic card scheme, AfriGO gives us assured comfort on all financial transactions.

“We are excited that Access Bank is the first to key into our belief of AfriGO’s immense value to the Nigerian financial ecosystem.”

AfriGOpay is a financial services business affiliated with the Nigeria Inter-Bank Settlement System. (NAN)(www.nannews.ng)

Source: News Agency of Nigeria

Nigeria Union of Pensioners (NUP) has called on the President-elect, Sen. Bola Tinubu, to create a ministry with the responsibility of addressing the plights of retirees in the country.

The South-West zone of NUP made the call after its quarterly meeting in Abeokuta on Thursday.

The News Agency of Nigeria (NAN) reports that the meeting was attended by chairmen and secretaries of NUP from Ogun, Oyo, Ondo, Osun, Lagos and Ekiti states.

Speaking with newsmen after the meeting, the Zonal Public Relations Officer of NUP, Olusegun Abatan, said that the creation of the ministry would turn the fortunes of pensioners around in the country.

“President Muhammadu Buhari has done quite a lot for pensioners. He really helped them and so we are appealing to Tinubu to please give the matter of pensioners serious attention.

“We want a separate ministry that will be solely addressing matters that have to do with pensioners under the administration of Tinubu,” he said.

Abatan alleged that governors of South-West states were owing pensioners in the zone huge sums as gratuities and pensions.

He urged all the governors in the zone to implement the consequential adjustment and the 35 per cent increment in pensions without further delay.

Abatan particularly cited Ogun, Ekiti and Osun states where he claimed that the gratuities of pensioners were paid last in 2012.

“They are owing arrears of pensions, gratuities and other entitlements, including gratuities and entitlements to the next of kin of some deceased pensioners.

“We want to appeal to our governors to step up their interests in the affairs of pensioners,” he said. (NAN) (www.nannews.ng)

Source: News Agency of Nigeria

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will partner Oil Trading and Logistics (OTL) Africa Downstream to sanitise and drive the country’s oil and gas industry.

The Authority Chief Executive (ACE) of NMDPRA, Mr Farouk Ahmed, said this when a team of the Advisory Board of OTL visited him on Thursday in Abuja.

“We align with your ideas on why we need to collaborate and have assured our willingness and interest to work with OTL.

“We want to collaborate and partner in all industry matters as we need to clean the mess in the industry created over the years.

“We need to work together and sanitise the industry; to do that, we need a capable, willing and bold regulator to make decisions.

“ And, for you industry players, to be humble enough to accept the decisions for the improvement and progress of the industry, and it is a win-win situation for us all,” Ahmed said.

On support to OTL, the NMDPRA boss said it was a support to the industry and would be looked into.

He said: “we will participate because we want to be part of those driving it so that we can get better seat. Otherwise, we will be left behind.

“ By that, we are seen, our work is seen and felt our suggestions, input, and ideas can also be incorporated from the beginning, so we welcome that.”

Ahmed assured that the authority would work with the OTL team in its future events, adding that there would be an internal commitment by the workers of NMDPRA to drive the sector.

Earlier, the chairman of OTL Advisory Board, Mr Tunji Oyebanji, appreciated the authority’s support, while pledging the commitment of OTL to take the industry to the next level.

Oyebanji, represented by the group’s Executive Vice Chairman, Dr Emeka Akabogu, however, called for increased participation of the authority in the activities of the OTL.

“We will keep working to ensure that we facilitate an environment that corresponds to best practices for sustainable growth and development of the Nigerian Downstream petroleum industry.

“We are, therefore, working towards a truly ‘Big-tent’ event for 2023, which incorporates all major sub-sector groups, most of which are regulated by the Authority.

“We look forward to the full participation of the Authority yet again in 2023 and use this opportunity to request that it designates an official to join the Planning Committee.

“This will ensure that the Authority’s perspectives and focus for the event are more realistically incorporated into the event schedule and thematic focus,” he said.

Oyenbaji said the group in 2022 focused on the theme, Regulating Downstream Energy Transition in Dynamic Times, to highlight the importance of regulation and compliance in achieving downstream operational efficiency.

He said: “We witnessed six sessions on various issues including fuels, gas, refining, lubricants.

“Over the course of three days, more than 1200 persons across industry sectors interacted, gaining knowledge, doing business, closing deals and expanding the frontiers of the sector, among other things.”

The chairman said it was evident that operators were concerned about getting certainty in policy direction and would be ready to unlock value once common interests were addressed.

“That is why 2023 is a crucial year for the industry in Nigeria.”(NAN)(www.nannews.ng)

Source: News Agency of Nigeria

The Bola Ahmed Tinubu (BAT) Ambassadors, a political pressure group, on Thursday revealed how it campaigned for the victory of Sen. Bola Tinubu for the Feb. 25 presidential election.

The National Coordinator of the group, Chief Jamiu Ekungba, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja.

Ekungba described the election that produced Tinubu as president-elect as one of the most freest and fairest polls in the history of the country.

Ekungba said that during the pre-election period, the group embarked on house-to-house campaign and social interactions in some of the strategic states of the country.

“BAT Ambassadors was conceived by a group of technocrats, professionals and elite in the South West.

“These are people in the past that don’t vote; they are always apolitical.

“These are people that came together to say that past event that had happened in Nigeria should not repeat itself.

“We have our team in 12 states; the six western states, including Edo, Delta, Rivers, Kwara, Kogi and Abuja.

“What we did was to concentrate on the six South West states because we knew quite well that elections are fought and won at the unit level.

‘So, we therefore, built that structure at the unit level in all the states in the south west.

“While in the other states, we allowed them to operate at the state and local government levels.

“So, the system we adopted was we did what is called, ‘house-to-house campaign,’ and we also did what is called ‘social interactions.’

“We worked within the party and sometimes, we worked solemnly without going through the party where we thought it was necessary,” he said.

He said the group also organised a lot of town hall meetings, one of which was to bring Tinubu to Ibadan to interact with the people.

“We were also very strong on social media, where we won the hearts of many young people; the ‘Soro Soke,’

”Because we knew quite alright that the election was going to be tough, particularly for the president-elect in the south west.

“Unlike past elections, there was no election that religious and tribal bigotry was so introduced more than this election,” he said.

Ekungba said this was coupled with the effect of the #ENDSARS protest saga.

According to him, we built a formidable strategy to meet the young people on social media.

He said since the election had been fought and won, it was time for everybody to come together to build the country. (NAN)(www.nannews.ng)

Source: News Agency of Nigeria