News

Nigerian states pay N21.62 billion as external debt deductions in Q1 2022

Published

1 year ago

July 15, 2022

The thirty-six (36) states of the federation parted with a sum of N21.62 billion as external debt deductions in the first quarter of 2022, an increase of 31.5% from N16.44 billion deducted in the corresponding period of 2021.

This is according to data extracted from the Federal Account Allocation Committee (FAAC) report, released by the National Bureau of Statistics (NBS).

Lagos, Kaduna, and Cross River recorded the highest deductions in the review period, with N7.27 billion, N2.26 billion, and N1.36 billion deducted respectively in Q1 2022. A total of N2.18 trillion was shared amongst the different levels of government and various revenue-generating units between January and March 2022.

Notably, the state governments received N590.45 billion as gross allocation in the period under review, while the federal government received a sum of N720.21 billion in the same period. Also, the local governments shared N436.37 billion, while N145.4 billion was allocated to oil-producing states as part of the 13% oil derivation fund.

Below are the top states with the highest external debt deductions in Q1 2022.

Lagos State – N7.27 billion

A sum of N7.27 billion was deducted from the gross allocation to Lagos State in Q1 2022, representing 33.6% of the total amount for the 36 six states. Lagos State’s external debt deductions increased by 27.93% compared to N5.69 billion deducted in the comparable period of 2021.

A look at the debt profile of Lagos State shows that the economic hub owes a total of $1.33 billion in foreign debt as of December 2021, the highest compared to other states.

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Kaduna State – N2.26 billion

Kaduna State had a sum of N2.26 billion deducted as external debt payment in the review period, accounting for 10.5% of the total states’ deductions, increasing by 47.22% year-on-year compared to N1.54 billion deducted in Q1 2021. As of December 2021, its external debt stood at $595.12 million.

Cross River – N1.36 billion

Cross River’s external debt deduction in Q1 2022 accounted for 6.3% of the total 21.62 billion that was deducted from the entire states in the review period. Meanwhile, its deductions increased by 80.6% from N754.97 million recorded in Q1 2021 to N1.36 billion in the period under review. According to the Debt Management Office, Cross River’s external debt as of the end of 2021 stood at $279.71 million.

Oyo State – N1.24 billion

A total of N1.24 billion was deducted from the quarterly allocations of Oyo State in Q1 2022 as payment obligation for its external debts, a 12.4% increase compared to N1.09 billion deducted in the previous year. A cursory look at the state’s external debt breakdown shows that Oyo State’s external debt profile stood at $85.27 million as of December 2021.

Rivers State – N800.58 million

Rivers State saw its allocation from the federal purse reduced by N800.58 million as a result of external debt deductions in Q1 2022, an increase of 14.71% compared to N697.92 million deducted in the corresponding period of 2021. As of December 2021, its external debt profile stood at $147.78 million.

Others include

Bauchi – N576.41 million
Osun – N567.77 million
Ogun – N547.23 million
Ekiti – N491.88 million
Katsina – N481.48 million

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News

Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown

Published

2 days ago

September 23, 2023

Seun Okerayi

LAGOS- With the goal of achieving “100% universal energy access” and maybe exporting electricity to its neighbor, Nigeria, Ghana has steadily been developing its power sector.

During his presentation in Lagos on the second day of the Nigeria Energy Leadership Summit, Mr. Hanson Monney, the Head of the Generation and Transmission Unit at the Ghanaian Ministry of Energy, made this point, emphasizing that via effective policy development and implementation, Ghana has already attained an impressive 80% to 85% universal energy access inside its boundaries.

“So, we are working on all these things to make sure that the power system of Ghana continues to be as good as it is or even better, and then, maybe, we can be exporting more to our big brothers in Nigeria when the grid is finally settled,” Mr. Hanson Monney said

This declaration follows the second national power grid breakdown in Africa’s most populous country and the continent’s top oil producer, Nigeria which resulted in a total blackout of homes and businesses.

In contrast, Ghana is aggressively pursuing a variety of energy sources, including grid electricity, mini-grids, and solar-dominated renewable energy, to attain “Universal access to energy by 2024” as instructed by the country’s President.

Monney agreed that the geographic limitations make it difficult to provide everyone in Ghana with access to electricity, particularly on isolated islands, riverbanks, or lakeside villages. In response to this, he stated,

“So, now, we are trying to scale our renewable energy access, and that is how we have planned in 2022 to scale up our renewable energy program,” he said.

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Financial sustainability is one of the biggest problems facing Ghana’s power sector, as the country struggles with growing debts and the purchase of surplus capacity.

“There is so much debt that the government has to shore up to make sure that the system is afloat because we have procured a lot of excess capacity, which comes with attendant costs. So, these financial challenges require some policy actions to eliminate legacy debts,” Mooney stated.

Monney stressed the significance of lowering electricity prices, particularly for enterprises, since high electricity bills are a major issue in Ghana. “We saw that in Ghana historically. These industries have been subsidizing the residential sector, and it should be the other way around. Industries should remain viable so that businesses can thrive,” Mooney stated.

Crime

EFCC declares Delta brothers wanted over alleged N330m fraud

Published

3 days ago

September 22, 2023

Seun Okerayi

The Economic and Financial Crimes Commission has declared two siblings from Delta State wanted for alleged fraud of N330 million.

This was contained in a statement issued by the EFCC spokesperson, Wilson Uwujaren, copies of which were made available to journalists in Warri, Delta State on Friday.

The anti-graft agency named 55-year-old Faith Onoja and 44-year-old Emmanuel Onoja, both from Ughelli South Local Government Area of Delta State, as being declared wanted by the EFCC.

According to the commission, Faith’s last known address is “Close to Celestial Church, Ekrovie new layout, old Egini road, Orhuehorun, Delta State” while Emmanuel’s last known address is “No 6. Jasmison Street, NPDC/ND Western Estate, Warri, Delta State”.

The statement urged that “anybody with useful information as to their whereabouts should contact the commission” in its offices nationwide.

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Education

Gov. Kefas Grants 50% Tuition Cut for Final Year Nursing Students

Published

4 days ago

September 21, 2023

Seun Okerayi

In a move that underscores the commitment of the Taraba State Government to prioritize education and make it more accessible, the Taraba state Governor, Dr. Agbu Kefas has approved a significant reduction in tuition fees for final year students at the College of Nursing and Midwifery Jalingo.

Effective immediately, all final year students pursuing their nursing and midwifery diplomas will benefit from a 50% reduction in tuition fees. This decision aims at alleviating the financial burden on students and their families, ensuring that quality education remains affordable and accessible to all.

Dr.Agbu Kefas stated, “Education is the bedrock of our society, and we are dedicated to providing opportunities for our students to excel without the undue burden of high tuition costs. We believe that this reduction will not only support our students but also contribute to the development of the healthcare sector in our state.”

The Taraba State Government remains committed to enhancing the quality of education and healthcare services in the state. This reduction in tuition fees is a significant step towards achieving these goals.