Buhari's govt incurs N36.8trn deficit in 8yrs

•Records N32trn revenue, spends N68tn  

•Incurred 77% deficit in 4yrs

THE Federal Government has incurred a deficit spending of N36.8 trillion in eight years under the administration of President Mohammadu Buhari from 2015 to 2022.

According to a data from the Central Bank of Nigeria, CBN, on Federal Government finances from 2015 to 2022 revealed that 77 per cent of the deficit spending occurred in the last four years, from 2019 to 2022.

The data revealed that total revenue for the eight years stood at N32.05 trillion, while total expenditure during the period stood at N68.8 trillion, indicating  deficit spending of N36.8 trillion.

In the first four years, 2015 to 2018, the government recorded N13.9 trillion as revenue but spent N24.3 trillion, resulting in deficit spending of N10.4 trillion.

However, the deficit spending jumped by 60 per cent in the last four years, 2019 to 2022.  

Compared to the previous four years, revenue rose by 31 percent to N18.2 trillion, while expenditure rose by 83 percent to N44.5trillion. Consequently, deficit spending rose to N26.4 trillion, translating to 60 percent increase when compared with the previous four years.

Further analysis showed that over 22 per cent of the eight year deficit spending was incurred in 2022 alone.

During the year, the Federal Government’s revenue grew by 14.7 per cent to N5.05 trillion from N4.4 trillion in 2021, while expenditure stood at N13.4 trillion in 2022, up by 14.5 percent from N11.7 trillion in 2021.

As a result, the government incurred N8.3 trillion as deficit spending, representing a 13.6 per cent increase from N7.3 trillion in 2021.        

  

Fuel subsidy

A major factor behind the spike in deficit spending is the steady and sharp increase in fuel subsidy spending which stood at N9.34 trillion in the eight years from 2015 to 2022.

Vanguard analysis revealed that annual fuel subsidy spending shot up by 571 per cent to N4.39 trillion in 2022 from N654 billion in 2015.  

  

National debt rises 267%

Given that the N36.8 trillion deficit incurred in the eight year period was financed by borrowing, total debt stock, according to data from the Debt Management Office, DMO, rose sharply by 267 per cent or N33.65 trillion to N46.25 trillion in 2022 from N12.6 trillion in 2015. This excludes the N23 trillion borrowed from CBN as Ways and Means.  

  

IMF, World Bank  

According to the World Bank, the rise in deficit spending as well as the huge debt stock will worsen except the government goes ahead with the proposed removal of fuel subsidy, even as it recommended other measures to strengthen the economy.

The World Bank stated in the Macro Poverty Outlook for Nigeria: April 2023 brief released last month: “The fiscal position deteriorated. In 2022, the cost of petrol subsidy increased from 0.7 per cent to 2.3 per cent of GDP. Low non-oil revenues and high-interest payments compounded fiscal pressures.

“The fiscal deficit was estimated at 5.0 per cent of GDP in 2022, breaching the stipulated limit for a federal fiscal deficit of 3 per cent. This has kept the public debt stock at over 38 per cent of GDP and pushed the debt service to revenue ratio from 83.2 per cent in 2021 to 96.3 per cent in 2022.

“Fiscal and debt pressures will increase if the petrol subsidy is not phased out in June 2023, as envisaged in the 2023 Budget.”

Similarly, the International Monetary Fund, IMF, in its Nigeria: 2022 Article IV Consultation, stated: “Directors highlighted the need for bold fiscal reforms to create needed policy space, put public debt on sound footing, and reduce vulnerabilities.  

“They urged the authorities to deliver on their commitment to remove fuel subsidies by mid-2023, and to increase well-targeted social spending. Strengthening revenue mobilization, including through tax administration reforms, expanding the tax automation system and strengthening taxpayer segmentation, and improving tax compliance is also a priority.”

CBN drives financial inclusion with SabiMONI

 By Emma Ujah, Abuja Bureau Chief

THE Central Bank of Ni

geria (CBN), has launched its Financial Literacy e-Learning Platform, called “SabiMONI” in its efforts to upscale financial inclusion in the country.

According to the CBN Governor, Mr. Godwin Emefiele, who personally launched the platform, in Abuja, yesterday, said that the apex bank was determined to achieve the 95 percent financial inclusion target next year.

He said that the SabiMONI would significantly impact the drive especially as many members of the Nigerian public key into the platform.

According to him, “You would see that from 2014 till now, everything has been done to deepen the payment system infrastructure through various mechanisms, working with the banks and even at some point, we have to bring in the telecommunication companies.

“The National Financial Inclusion Strategy 2022 places high priority on financial and digital learning as a strategy that would enable the creation of a conducive environment for serving or ensuring the inclusion of the most excluded groups.

“There is no gain saying the fact that the SabiMONI Financial Literacy e-Learning Platform will enable us to drive financial education physically through the Certified Financial Literacy Trainers at the locations where it is most needed.

“It will enable us to drive Digital Financial Literacy thereby boosting consumer confidence in the uptake and utilization of Digital Financial Services.

“The SabiMONI portal will serve as a repository of information not only for learners but also for researchers in the most effective manner.”

  

Mortgage firm records N2bn turnover in 2022

By Fortune Eromosele, ABUJA

Infinity Trust 

Mortgage Bank, ITMB, has recorded N2.1 billion turnover in 2022 financial year, representing over 19 percent increase when compared to the N1.7 billion posted in 2021.

The Managing Director,   Mr. Sunday Olumorin, told the bank’s shareholders at the 17th Annual General Meeting in Abuja, last week that Its total operating income increased by over 14 percent from N1.5 billion to N1.7 billion in the period under review.

Furthermore, he said that the bank grew its total loan portfolio by 24 percent from N9.9 million to N12.3 million. The Bank was able to achieve this not just within FCT, Lagos and the other states in which the Bank has branches but throughout the federation with the use of technology.

Mr. Olumorin disclosed that the bank’s non-performing loans decrease was tremendous despite the various recovery challenges and bottlenecks.”

NIMASA boss bags Public 

Servant of the Year Award

The Director General, Ni

gerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has emerged the Public Servant of the year 2022, in the latest award category coming from the Champion Newspapers Nigeria Limited.

Jamoh, alongside some prominent Nigerians, which include Governors Ademola Adeleke of Osun State, Sanwo Olu of Lagos, and Audu Abdullahi Sule of Nasarawa State also received different categories of award.

Presenting the award on behalf of the organization in Lagos this weekend, the Managing Director ofFidelity Bank Plc, Nneka Onyeali-Ikpe said the award was in recognition of Jamoh’s achievements in NIMASA. The Champion Newspapers said Jamoh’s recognition was borne out of the fact that the agency under his leadership has made fresh inputs due to his leadership skills.

“We note with delight, that you are first among the leading Directors -General/CEO’s of government agencies in Nigeria that have distinguished themselves not only as very resourceful business managers, and technocrats but also shown a high degree of integrity and transparency in both private and public affairs. Your ingenious, creative, pragmatic and resilient approach to leadership has brought a lot of transformation to the NIMASA.

SKLD announces N1.5bn Commercial Paper issuance

SKLD Integrated Services 

Limited, a leading trading company in Nigeria has announced the successful issuance of Commercial Paper, CP totalling N1.51 billion.

Commercial Papers are issued by corporate organisations to borrow from the public.

The company said the series ii, iii, iv & V   CP comprised N378 million for 180 days tenor and N1.147 billion for 270 days tenor.

As of March 2023, all subscribers to the company’s commercial paper issuance debut in 2022 have been redeemed and repaid.

In the past year, SKLD drove an impressive traction of 70% turnover growth, and 50% customer growth in its humanitarian aid supply segment. It also drove 30% growth in client coverage per city in Nigeria, and 32% growth in the number of cities per school coverage. The Company leveraged its e-commerce platform, further expanded its retail footprint, and diversified its product/service offerings to cater to a more robust segment including office and lifestyle categories. Signalling its commitment to pursuing growth opportunities and creating superior value for its shareholders and customers.

Mr Adetayo Osiyemi, Deputy Managing Director of SKLD Integrated Services Limited, stated: “The successful issuance of Commercial Paper series II, III, IV & V confirms SKLD’s commitment to pursuing growth opportunities and creating superior value for its shareholders and customers. 

Culled from Vanguard