Budget deficits, low revenue responsible for rising debt – DMO

The Debt Management Office (DMO) says decades of operating budget deficits by successive governments is responsible for Nigeria’s high debt profile.

The Director-General of the DMO, Patience Oniha, said this to the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to Oniha, a review of Nigeria’s fiscal data shows that not only has the government operated budget deficits which have been growing, but most of the deficits have been funded through local and external borrowing.

“The records show that deficits in the annual budgets, including supplementary budgets rose to N10.78 trillion in 2023 from N1.62 trillion in 2015.

“Between 82 per cent and 99 per cent of these were funded by new borrowing which ranged from N1.46 trillion in 2015 to N8.80 trillion in 2023.

“These facts confirm that these budget deficits, funded by new borrowings, have been responsible for the rapid growth in the debt stock and the resultant increases in debt service,” she said.

According to Oniha, this trend could have been avoided or at least moderated if revenues had been higher or expenditures lower.

She tasked the incoming government of Sen. Bola Tinubu to take cognisance of the situation and prioritise increased revenue generation.

“The budget deficits would have been much smaller, or Nigeria would have operated on a balanced budget.

“It is therefore imperative that the incoming government takes into account the perennial budget deficits in the preparation of the Medium-Term Expenditure

Framework (2024 – 2026) and the 2024 budget.

“The government should also accelerate the growth in revenues to ensure debt sustainability,” she said.

Nigeria’s debt profile stood at N46.25 trillion in Dec. 2022, recording an increase of about seven trillion Naira from the 2021 debt figures.

Total Public debt stock, however, consists of the domestic and external debt stocks of the Federal Government, the 36 state governments and the Federal Capital Territory.

In terms of composition, total domestic debt stock is N27.55 trillion ($61.42 billion) while total external debt stock is N18.7 trillion (41.6 billion dollars)

The public debt figures, however, exclude the N22.7 trillion Federal Government’s indebtedness to the Central Bank of Nigeria (CBN), through Ways and Means advances.

The Ways and Means advances, which has been securitised by the Senate, and presently awaiting concurrent securitisation by the House of Representatives before it is included in the country’s public debt stock. (NAN)

Group scores Okowa high, tasks GovElect Oborevwori on continuity

The Mid-Westerners, a Political Pressure Group, has scored Gov. Ifeanyi Okowa led administration high in governance and effective delivers of dividends of democracy to the people of Delta in the last eight years.

The group, representing the old Bendel (Edo and Delta States) gave the commendation at a news conference on Thursday in Asaba, while setting agenda for the Governor -Elelct, Chief Sheriff Oborevwori, as he steps in come May 29.

The Mid-Westerners in an address signed by its Chairman, Mr Iwendi Nwaham; Executive Vice Chairman, Prof. David Ejenobo; Secretary, Fidelis Chimokwu and Mr Kenneth Okwuenu, was read by Prof. Ejenobo.

According to them, the Okowa’s achievement in the state was rather under reported by the media.

They commended Okowa’s achievement in infrastructure, education, health, human capital development, airport transport infrastructure, flood control measures, among others

They said that the achievements were massive and worth sustaining by the incoming administration.

“On assumption of office in 2015, Okowa met a state battling with multifarious economic challenges, least of which was the drastic drop in revenue accruing from crude oil export at the national level.

“To take the state out of of its dilemma, he came up with his SMART Agenda and for eight years, Okowa pursued and delivered a “Stronger Delta” agenda.

“In the field of education, he stands tall, he touched the whole gamut of the educational sphere from basic and primary education to tertiary institutions.

“He ensured welfare of teachers, established model technical colleges in all the senatorial districts and has topped it with the establishment of three new/state universities,” they said.

The group added that Okowa was nicknamed “the Road Master” by the people for connecting the rural communities to the urban by constructing over 2,000km of roads and 1,400km of drainage channels across the state.

“Okowa’s achievements in terms of infrastructural development are simply amazing.

”He built the state of the art N18 billion state secretariat, blocked financial leakages, flushed out ghost workers, and repositioned the civil service for effective service delivery,” the group said.

They noted that Okowa’s administration tackled the erosion and massive flooding which before now had wreak havoc in Asaba and environs by investing billion of naira on storm water drains and underground tunnels to empty into the River Niger.

“As we bid farewell to a worthy achiever, we take this opportunity to congratulate the Governor-Elect, Chief Sheriff Oborevwori on his success at the 2023 governorship elections on March 18.

“Gov. Okowa has set the standard, we encourage you to follow. Your M.O.R.E Agenda which has been properly documented and articulated during your campaigns should be your covenant with the people of Delta.

“We encourage our incoming governor to sustain the roads infrastructure, human capital development and to extend the retirement age to 65 years and 40 years in service to all civil servants in the state as effected for the teachers by the federal and Delta government.(NAN)