Author: Damilola Aina
The Federal Government, through the Central Bank of Nigeria, recently raised N284.26bn in the latest Nigerian Treasury Bills auction, bringing its T-Bills debts to N10.4tn between December 2023 and March 2024, marking a 60% increase in just three months. The auction attracted significant investor interest, with total subscriptions exceeding N773.98bn, far surpassing the total offer of N228.72bn. This outcome indicates strong demand from investors seeking yield while providing funding for the government’s short-term expenditures. The government raised N297bn from the June bond auction, serving various purposes in debt management and fund-raising. The T-Bills and FGN bonds are considered risk-free investments,…
As part of efforts to combat drug abuse, the Federal Government plans to conduct a drug use survey to develop preventive measures and break the vicious cycle of illicit drug use. President Bola Tinubu made this announcement during an event in Abuja commemorating the 2024 United Nations International Day Against Drug Abuse and Illicit Drug Trafficking. The United Nations set June 26 as the International Day against Drug Abuse and Illicit Trafficking to raise awareness about the harmful effects of drug abuse on society. Drug abuse leads to addiction, with detrimental consequences on individuals and communities. Tinubu emphasized the importance…
Amidst rising inflation and economic hardships, Nigerians have turned to credit facilities to make ends meet, borrowing a total of N3.82tn from banks as of January 2024. The surge in personal loans by 14.3% to N3.028tn and retail loans by 3.6% to N794.79bn reflects the struggle Nigerians face due to inflation and dwindling purchasing power. A study by SBM Intelligence revealed that 27% of Nigerians across income categories are now resort to loan apps to cope with record inflation. While public servants seek loans and advances from state governments to alleviate the economic strain, loan companies have seen a significant…
Nigeria’s public debt has soared to N121.67tn, a 24.99% increase in three months, as reported by the Debt Management Office. This surge from N97.34tn in December 2023 includes the combined debts of the Federal Government, state governments, and the FCT. The breakdown reveals a Total Domestic Debt of N65.65tn and Total External Debt of N56.02tn. This rise is mainly attributed to naira devaluation, resulting in a reduced dollar value of the debt. Recent reports show Nigeria borrowing $4.95bn from the World Bank over the past year, with plans for an additional $4.4bn loan approval in the coming year. The funds…
The Federal Government is urging African countries to prioritize the training of Small and Medium Enterprises (SMEs) to elevate trade standardization and bolster the continent’s economy. In a recent address at the 30th General Assembly of the African Organisation for Standardization, Minister of Industry, Trade and Investment, Doris Anite emphasized the pivotal role of education and technical standards in driving intra-African trade. Anite underscored the importance of implementing standards to promote sustainable development, innovation, and export-oriented manufacturing. She highlighted the correlation between education, industrialization, and trade in the 21st century and stressed the need for policymakers to grasp the significance…
Nigeria’s inflation rate rose to 33.95% in May 2024, up from 33.69% in April, as reported by the National Bureau of Statistics. The Consumer Price Index showed a continual increase in inflation from January to May, reaching a 13.5% surge. The inflation spike was primarily driven by higher food and transport prices, with food inflation hitting 40.66% in May. The rising cost of essential items like potatoes, fish, and meat has put pressure on households, exacerbated by government policies like petrol subsidy removal. This trend has eroded the purchasing power of many citizens, making it challenging to afford daily meals.…
Transforming Infrastructure: Lagos-Calabar Coastal Highway The Federal Government has taken significant steps to upgrade the Lagos-Calabar Coastal Highway project, ensuring it aligns with modern standards while minimizing disruptions to existing infrastructure. The Minister of Works, David Umahi, announced that the highway has been rerouted to prevent damage to telecommunication cables, with the project size reduced to six lanes for cost efficiency. With over N10bn disbursed in compensation to affected property owners, the government aims to open the first 47 kilometers by May next year. The initiative, spanning nine states with spurs to northern regions, underscores the administration’s commitment to sustainable…
States Spend N251.79bn on Debt Servicing, Obtain N310.99bn Loans Within Nine Months Despite increased monetary allocations from the Federation account, twenty-two states in Nigeria have spent a total of N251.79bn to service debt borrowed by past administrations within nine months of assuming office. A total of N310.99bn in fresh loans was also obtained between July 2023 and March 2024. These findings were revealed in budget implementation reports of each state sourced from the Open Nigerian States website. The states faced challenges of unpaid salaries, mounting pension liabilities, and rising inflation amidst increasing debt burdens inherited from their predecessors. Despite this,…
The Federal Government is facing the challenge of spending approximately N5.4tn on fuel subsidies as part of an economic stabilisation plan proposed in a report obtained by PUNCH Online. The plan, presented by the Minister of Finance, Wale Edun, aims to expedite economic recovery and mitigate the impact of ongoing reforms while improving purchasing power and tackling inflation within one to six months. The report highlights the growing fuel subsidy costs, projecting a substantial increase in expenditure by the end of 2024. Despite denials from government officials, stakeholders like the International Monetary Fund anticipate the significant strain that the subsidy…