{"id":20709,"date":"2018-11-12T21:27:45","date_gmt":"2018-11-12T21:27:45","guid":{"rendered":"http:\/\/newsroom247.com.ng\/?p=20709"},"modified":"2018-11-12T21:27:45","modified_gmt":"2018-11-12T21:27:45","slug":"money-money-everywhere-yet-more-debt-by-henry-boyo","status":"publish","type":"post","link":"http:\/\/newsroom247.com.ng\/?p=20709","title":{"rendered":"Money, Money Everywhere &#038; Yet More Debt, By Henry Boyo"},"content":{"rendered":"<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- www.newsroom247.com.ng --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block;\" data-ad-client=\"ca-pub-2163942495525027\" data-ad-slot=\"1411897411\" data-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p align=\"JUSTIFY\">The IMF Country Chief, Amine Mati, who spoke last Thursday (November 8, in Abuja, at the presentation of the Regional Outlook for Sub-Saharan Africa, 2018), was clearly concerned that, despite Nigeria\u2019s very precarious 1.9 percent projected growth rate for 2018, and a debt to GDP ratio between 20-25 percent, Nigeria however, is unfortunately, already also allocating more than 50 percent of its revenue to service debt annually.<\/p>\n<p align=\"JUSTIFY\">Consequently, according to IMF, Nigeria\u2019s public debt is, oppressively, diverting more resources towards debt servicing. Furthermore, Mati also observed that interest rates have, regrettably, also \u201cgone up to where they used to be\u201d before the \u2018celebrated\u2019 debt relief to several African Countries, including Nigeria, just over 10 years ago.<\/p>\n<p align=\"JUSTIFY\">Conversely, Nigeria\u2019s Debt Management Office D.G, Patience Oniha, however, countered, at the above event in Abuja, that, without sufficient revenue and the impact of the \u201crecession that the country found itself in between 2016-17, the government had no option than to borrow to increase forex availability\u201d and also \u201cspend our way out of recession.\u201d Oniha, also, disclosed that despite the allegedly poisonous, present, debt burden, decried by IMF, government will still borrow N1.5tn in 2019, even when, the considerable sums of N2.5tn and N1.64tn, that government borrowed in 2016 and 2017, respectively, have failed to make meaningful impact on our huge infrastructural deficit.<\/p>\n<p align=\"JUSTIFY\">Conversely, however, Vivian Bellonwu Okafor, Chairperson of The National Advocacy Centre, however, noted in a statement published in the Punch edition of November 9 2018, that the Federal Government\u2019s zeal to borrow was not only unfortunate but also a glaring admission of cluelessness.<\/p>\n<p align=\"JUSTIFY\">It is arguable nonetheless, that with due diligence, in procurement contracts, for infrastructure and other expenditure estimates, government\u2019s annual budgets would be spared the \u201cexcessive\u201d level of borrowing that does not translate to meaningful social impact. <strong>Indeed, 10 Civil Society Organisations, for example, have lately, jointly signed a petition, in pursuit of accountability in public procurement, for EFCC to probe why #GE, the US Giant Corporation, supplied 18XGE Frame 126MW turbines for $404m, while the same Company also supplied 9XGE Frame of same 126MW turbines, through Nigeria\u2019s #RocksonEngineering at \u201ca whopping sum of $1.55bn\u201d; in this event, GE and Rockson may have defrauded Nigeria of about $1.348b.<\/strong><\/p>\n<p align=\"JUSTIFY\">Incidentally, according to another report in the Punch edition of November 7, 2018, the National Assembly is also investigating the allegation against GE\/Rockson Engineering, \u201cbecause of the fear that, should Nigeria do nothing, the United States Government may invoke the \u201cForeign Corrupt Practices Act\u201d (which forbids US Companies from Acts of corruption anywhere in the world) to prosecute GE if found wanting.\u201d \u201cIf this happens, according to NASS, Nigeria will again suffer great embarrassment, similar to the notorious \u2018Halliburton case\u2019.\u201d<\/p>\n<p align=\"JUSTIFY\">Similarly, earlier this month, the Senate, also began an investigation of the diversion of \u201c$1.05bn from the Nigerian Liquefied Natural Gas \u2018Dividend Account\u2019 by NNPC.\u201d The Group Managing Director, Maikanti Baru, has readily admitted, that NNPC utilized the $1.05bn to augment \u201cunder-recoveries from petrol importation,\u201d at the height of the December 2017-January 2018 nationwide fuel scarcity. Maikanti Baru insisted that \u201cNNPC acted in line with a National Assembly directive to do everything necessary to end that fuel scarcity;\u201d besides, according to Baru, NNPC\u2019s action \u201cwas also in line with Section 7(4) (b) of the NNPC Act which mandated it to fund its operations from its revenue.\u201d<\/p>\n<p align=\"JUSTIFY\">However, Senate President, Bukola Saraki, has declared that \u201cit was illegal for NNPC to unilaterally draw from, the NLNG dividend funds, without prior appropriation by National Assembly.\u201d Saraki insisted that \u201cdividends paid to the Federal Government from LNG business were supposed to be kept in the Federation Account and shared among the three tiers of government.\u201d Furthermore, Chairman of the Senate Committee on Gas, Senator Bassey Akpan, also noted that \u201cutilizing the funds without appropriation, and without the knowledge of State and Local Governments was an illegal act that should not be overlooked.\u201d<\/p>\n<p align=\"JUSTIFY\">The related question therefore, clearly relates to whether the diversion of $1.05bn from the LNG dividends account was a one off event, or the usual practice; in which case, there would be a clear need for full disclosure of how much of the bountiful LNG dividends, have been diverted by NNPC for whatever purpose, since the commencement of the LNG trains. Incidentally, in addition to the unappropriated, LNG dividend of $1.05bn, the Senate Majority Leader, Senator Ahmed Lawan, is reportedly, also, already leading an Adhoc Committee, set up in October 16 2018, to look into the \u201calleged secret spending of $3.5bn by the NNPC on fuel subsidy.\u201d<\/p>\n<p align=\"JUSTIFY\">Instructively, however, in April, this year (2018), Dr. Waziri Adio, the Executive Secretary of Nigeria\u2019s \u201cExtractive Industries Transparency Initiative,\u201d revealed, at a meeting with Civil Society and Media Organisations, that NNPC has confirmed that \u201cNLNG\u2019s $16.8bn \u2018accrued\u2019 dividends between 2000-2015 was not remitted to the Federation Account.\u201d However, in defence of the non-remittance, the NNPC reportedly alleged that it got a letter from the Presidency, \u201cthat it should hold the money in trust, and it should spend as directed.\u201d<\/p>\n<p><code><iframe loading=\"lazy\" src=\"https:\/\/www.alternativeadvert.com\/show.php?z=30&amp;pl=17194&amp;ad_type=64&amp;rl=180\" width=\"300\" height=\"600\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/code><\/p>\n<p align=\"JUSTIFY\">Conversely, however, NNPC is yet to furnish NEITI with a copy of the alleged letter of instruction from the Presidency. Alarmingly, also, according to NEITI Secretary, \u201cthe Department of Petroleum Resources (DPR) does not yet have metering infrastructure;\u201d consequently, \u201cwe cannot independently say this is how much oil we produce even though we may know how much we actually sell officially.\u201d Furthermore, NEITI also questioned \u201cthe proprietary of NNPC\u2019s retention of 450,000 barrel\/day allocation to domestic refineries, when in fact, they refine little or nothing!\u201d<\/p>\n<p align=\"JUSTIFY\">Incidentally, Femi Falana, a distinguished Civil Rights and Legal activist, also noted at the NEITI briefing that, a team of Lawyers including himself, discovered that \u201cbetween January 2011-December 2014, the export of 60.2 million barrels of oil valued at $12.7bn was not recorded here in Nigeria, but was captured, for the purpose of taxation, at the point of discharge in Philadelphia USA.\u201d According to Falana, \u201cif you take all the ports, in the US alone, where our oil was discharged, at that period, I am sure Nigeria will make about $200bn, even when other destinations such as China, India, etc, were not captured. Regrettably, the EFCC and Finance Minister, are yet to respond to Falana\u2019s petitions for investigation.<\/p>\n<p align=\"JUSTIFY\">Similarly, a \u2018ThisDay\u2019 publication of May 17<sup>th<\/sup>\u00a02018, also reported that Abdulaziz Yari, Zamfara State Governor and the Chairman of the Governors\u2019 Forum, dismissed NNPC\u2019s claims of petrol consumption of 60million litres\/day, since the commencement of the new regime of cost recovery (i.e. direct deduction of petrol subsidy from NNPC sales revenue). According to Yari \u201cmany of our international partners are saying that even if we are \u2018feeding\u2019 Nigeria, Cameroon, Ghana and Niger, we cannot consume more than 35million litres\/day, so we are wondering where the 60million litres is coming from,\u201d especially after the decision was taken that all filling stations\/tank farms within 10km from Nigeria\u2019s borders should be closed by DPR.\u201d<\/p>\n<p align=\"JUSTIFY\">It is surprising, nonetheless, that rather than plug the huge serial leakages of unaccounted government revenue, government conversely, seems inexplicably more focused, on gleefully increasing the National debt burden, despite the IMF\u2019s warning that Nigeria is already applying over 50 percent of aggregate revenue to service, clearly, oppressive sovereign debts which will invariably mortgage the future of millions of Nigerians yet unborn.<\/p>\n<p align=\"JUSTIFY\">It is inexplicable nonetheless, and possibly also reckless to have almost doubled our debt burden in the last 3 years and, yet still, seek foreign loans with upto 7 percent interest rate, while the CBN also, ironically, continues to freely auction its relatively bountiful foreign reserves for free, while Government, borrows unceasingly, domestically, at double-digit interest rates, even when CBN sits unperturbed on hundreds of billions of idle \u2018sterilized Naira\u2019 loans which attract very high interest rates for sovereign loans!!!<\/p>\n<p><code><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- www.newsroom247.com.ng --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block;\" data-ad-client=\"ca-pub-2163942495525027\" data-ad-slot=\"1411897411\" data-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/code><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IMF Country Chief, Amine Mati, who spoke last Thursday (November 8, in Abuja, at the presentation of the Regional Outlook for Sub-Saharan Africa, 2018), was clearly concerned that, despite Nigeria\u2019s very precarious 1.9 percent projected growth rate for 2018, and a debt to GDP ratio between 20-25 percent, Nigeria however, is unfortunately, already also [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":20710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"ngg_post_thumbnail":0,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1],"tags":[245,5104,241,2293,5105],"class_list":["post-20709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bukola-saraki","tag-ge","tag-halliburton","tag-maikanti-baru","tag-rockson-engineering"],"jetpack_featured_media_url":"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/11\/nigerias-external-debt.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4oswh-5o1","_links":{"self":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/20709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20709"}],"version-history":[{"count":1,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/20709\/revisions"}],"predecessor-version":[{"id":20711,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/20709\/revisions\/20711"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/media\/20710"}],"wp:attachment":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20709"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}