Former President Olusegun Obasanjo says Nigeria risks impending bankruptcy over the accumulation of debt by the government.
Obasanjo, who was keynote speaker at an event tagged: “The Nigerian Story, Why I am Alive Campaign”, which held in Lagos on Friday, said rising debt makes him worried about the future generations who would have to pay such loans.
Obasanjo said as of 2015, Nigeria’s total external debt was about $10.32 billion but by March 2019, it had risen to $81.274 billion.
“Our political leaders have suddenly developed not just a taste for, but a voracious appetite for debt. As usual, most of such debts procured are hardly thought through. Predictably, ability to repay such debts is lacking,” he said.
“Unfortunately for us and unlike in the past, the new creditors are less tolerant of our limitations and inadequacies and are now demanding to manage institutions and agencies with a view to recouping their loans.
“It has recently been pointed out that in 2018 that total debt servicing took over 60 per cent of government revenue. What’s more, we are not doing enough to address the fundamental, deep-seated and structural challenges that inhibit the expansion of our economy.
“Such a situation talks about an impending bankruptcy. No entity can survive while devoting 50 per cent of its revenue to debt servicing.”
Obasanjo, who served as a democratic president between 1999 and 2007, said to worsen matters, the present government is currently seeking to add another $29.6 billion loan to the already “overburdened debt portfolio.”
Atiku Abubakar, who was Obasanjo’s deputy between 1999 and 2007, had earlier spoken against the $29.6 billion loan request of President Muhammadu Buhari, describing it as an attempt to enslave unborn children.
Atiku said he and Obasanjo worked to get debt relief for Nigeria, accusing Buhari of frittering away their good work.
During his keynote address on Friday, Obasanjo toed the same line, saying: “My agony in getting rid of our external debts and developing a sustainable approach to address our domestic debts… it was a painstaking exercise that involved not just a national strategy but a continental and international one which eventually yielded significant gains.
“To now see all those efforts, go to waste barely less than 15 years after that watershed moment is more than disturbing. It is painful and retrogressive.
“Nigeria’s leadership was key in the campaign for debt relief in the late 90s/early 2000s. Our relapse into debt will be wrong, signalling to the rest of the continent and could be tantamount to backing the entire continent into another era of ‘highly-indebted poor countries.’
“For once, all Nigerians need to rise up and shout in one voice and call on the National Assembly to rise up to its core duty and responsibility and save our children and our grandchildren and great-grandchildren from being mired in debt.
“Let us use other options. Saudi Arabia, I understand, will be raising over $20bn to finance projects through private equity. We can do likewise.
“We have several national assets that could be used to raise some of the funds that we need in this respect for infrastructural development to give assurance to private sector investors and PPP (Public-Private Partnership) investors, if necessary.”
- THECABLE
The Code of Conduct Tribunal (CCT) has ordered Azuka Azinge to step aside as acting registrar-general of the Corporate Affairs Commission (CAC).
Azinge was arraigned before the tribunal on December 23 on an 11-count charge bordering false declaration of assets.
She was also accused of receiving allowances she was not entitled to as an acting registrar-general of the agency.
In its ruling, the CCT granted the motion ex parte filed by the federal government through Code of Conduct Bureau (CCB), ordering Azinge to step aside pending hearing and determination of motion before the tribunal.
In a statement, Ibraheem Al-Hassan, CCT’s head of press and public relations, said the order was issued in Abuja under the seal of the tribunal.
“That defendant / respondent step aside as the Acting Registrar General of Corporate Affairs Commission over allegation of contravening provision of Code of Conduct Bureau and Tribunal Act CAP C1 LFN 2004 pending the hearing and determination of Motion on notice dated on the 17th day of December, 2019,” the order read.
“That the Hon. Minister of Trade and Industry and the Chairman of the Board of Corporate Affairs Commissions pending the hearing and the determination of the motion on notice, dated and filed on the 17th day of December, 2019.”
The tribunal adjourned the hearing till January 6.
- THE CABLE
The standoff between the police and some bandits who attempted to rob a First Bank branch in Mpape Abuja is over.
The robbers finally surrendered to policemen from the FCT Police Command, after one of them had been killed.
More startling is that among the four suspects arrested was a banker, a staff of the bank.
The spokesperson of the command, ASP Mariam Yusuf told reporters that normalcy has been restored.
The CP, Bala Ciroma, confirmed the arrest of the bank staff , who was acted as an insider for the four suspects.
- PM NEWS
The UN General Assembly on Friday adopted a resolution to draft a new international convention to fight cybercrime.
The resolution, adopted by a vote of 79-60 with 33 abstentions, decides to establish an open-ended ad hoc intergovernmental committee of experts to elaborate a comprehensive international convention on countering the use of information and communications technologies for criminal purposes.
It also decides that the ad hoc committee shall convene a three-day organisational session in August 2020 in New York, in order to agree on an outline and modalities for its further activities, to be submitted to the General Assembly for its consideration and approval.
The resolution requests the UN secretary-general Antonio Guterres to allocate the necessary resources in order to organise and support the work of the ad hoc committee within the UN regular budget.
Before the vote, Finland, on behalf of the European Union, and the United States spoke against the idea and called for negative votes.
Russia and China asked for support of the draft. (dpa/NAN)
The Kwara State Government has taken over a piece of land owned by the Saraki Family in Ilorin. It will be used for a new secretariat for civil servants.
Chief Press Secretary to Kwara Governor, Rafiu Ajakaiye announced the decision Friday.
Ajakaiye said the land was originally meant for Government Secretariat and parking space of the Civil Service Clinic but was unlawfully allocated to a private firm, Asa Investments Limited, without any record of payment to the state government.
Part of the land, situated beside the Civil Service Clinic, is also right in front of late Dr Olusola Saraki’s residence.
The senior Saraki built a house and named it ‘Ile Arugbo’ (elderly peoples’ home).
According to the statement, no certificate of occupancy was issued in favour of Asa Investments Limited.
The statement explained that the government has now made provisions for the secretariat in the 2020 budget, although its construction will spill over to 2021.
“Hundreds of civil servants still operate from rented apartments at a huge cost to the government.
“The new secretariat, once completed in 2021, will definitely go a long way to end this unhealthy trend as well as provide a more conducive and decent working environment for government workers,” the statement added.
Ajakaiye added that Gov. AbdulRahman AbdulRazaq has signed an instrument withdrawing the allocation of plots of land 1, 3 and 5 to the firm.
He said that the said land was unlawfully appropriated contrary to the purpose for which it was meant.
The spokesman added that the governor’s decision followed a resolution of the State House of Assembly urging him to reclaim the land because it was arbitrarily taken over in the 1990s without any evidence of payment by the company, even though the land was meant for public use.
The governor noted in the revocation order that the land was originally meant for the construction of another phase of the Kwara State Civil Service Secretariat and a parking space for both the civil service clinic and the secretariat.
The revocation order read: “In exercise of the powers conferred by Section 5 of the Constitution of the Federal Republic of Nigeria (as amended) 1999 and Section 1 and 28 of the Land Use Act Cap. L.5 of 2004 and all other powers enabling me in that behalf, I, Mallam Abdulrahman AbdulRazaq, Governor of Kwara State of Nigeria, give the following notice:
“The Notice may be cited as the Land Use (Revocation of Right of Occupancy and withdrawal of allocation) Notice, 2019.
“Allocation of plots of land 1, 3 and 5 TPS/MISC 129 to Asa Investment (Nig) Ltd. which is meant for the Kwara State Secretariat.
“The land, specifically and more described in survey No. KwSH 927 and Land/G1071 situated and lying beside Civil Service Clinic on Ilofa Road Ilorin, Kwara State, is hereby revoked and withdrawn for overriding public interest for use of the purpose it is originally meant for:
“The construction of Kwara State Secretariat; parking space for civil service clinic and the Kwara State Secretariat and annexe to the Civil Service when upgraded to a hospital.
“That the plots allocated are hereby declared void. Notice is therefore given to you, Asa Investments Nigeria Limited, that the plots of land 1, 3 and 5 TPS/MISC 129 allocated to you and any title on the land whatsoever are hereby revoked and the allocation is withdrawn for overriding public interest,” it read in part.
- PM NEWS
