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Nigeria Borrowed N6.64tn, Serviced Debt with N2.93tn in 2021 – DMO

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Author: Gift Wada, Abuja

THE Debt Management Office on Thursday said Nigeria’s total public debt stock increased to N39.56tn in 2021 from N32.92tn in 2020.
The Director-General, DMO, Patience Oniha, said this at a media briefing in Abuja.
According to her, the total debt includes new borrowings by the Federal Government and the sub-nationals.
She also said that the amount helped in financing the budget deficit, capital projects and support economic recovery.
Oniha said, “Nigeria’s total public debt as at December 31, 2021, was N39.56tn or $95.78bn. The amount represents the total external and domestic debts of the Federal Government of Nigeria, 36 state governments and the federal capital territory.
“The comparable figure for December 31, 2020, was N32.92tn or $86.39bn. The public debt stock for December 31, 2021, includes new borrowings by the FGN and the sub-nationals. For the FGN, it would be recalled that the 2021 appropriation and supplementary acts, included total new borrowings (from domestic and external sources) of N5.49tn to part-finance the deficit.
“Borrowings for this purpose and disbursements by the multilateral and bilateral creditors account for a significant portion of the increase in the debt stock. Increases were also recorded in the debt stock of the states and the FCT.”
She further said that despite the debt increase, the country is still within the total public debt stock to the Gross Domestic Product limit of 55 per cent set by the World Bank and 70 per cent set by the Economic Community of West African States.
Oniha also said that the Federal Government was “mindful of the relatively high debt-to-revenue ratio” and has established certain measures to increase revenues through the strategic revenue growth initiative and the introduction of Finance Acts since 2019.
She said, “The new borrowings were raised from diverse sources, primarily through the issuances of the Eurobonds, sovereign Sukuk, and the FGN bonds. These capital raisings were utilised to finance capital projects and support economic recovery.

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“With the total public debt stock to GDP as at December 31, 2021, of 22.47 per cent, the debt-to-GDP ratio still remains within Nigeria’s self-imposed limit of 40 per cent. This ratio is prudent when compared to the 55 per cent limit advised by the World Bank and the International Monetary Fund for countries in Nigeria’s peer group, as well as, the ECOWAS convergence ratio of 70 per cent.”
However, findings showed that Nigeria spent N2.93tn on debt servicing payments in 2021, according to the data obtained from the DMO.
Between January and March 2021, Nigeria spent N612.71bn on domestic debt servicing, while it spent $1bn (N415.92bn) on external debt servicing, giving a total of N1.03tn.
From April to June 2021, the country spent N322.7bn on domestic debt servicing and $299m (N124.36bn) on external debt servicing, showing a total of N447.06bn.
From July to September 2021, Nigeria spent N808.49bn on domestic debt servicing and $520.78m (N216.6bn) on external debt servicing, giving a total of N1.03tn.
Between October and December 2021, Nigeria spent N310.5bn on domestic debt servicing, while it spent $286.35m (N119.1bn) on external debt servicing, giving a total of N429.6bn.
The official exchange rate of the Central Bank of Nigeria, which showed $1 =N415.92 as of March 17, was used for the external debt servicing.

Read Also: Ezekwesili Speaks on China’s Loan Grant of $60 Billion to Africa

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Customs Corner

TCIP Customs Sensitizes Officers, Stakeholders on Current Trends in Management of Cargo

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Author: Lucy Nyambi.

The Nigeria Customs Service, Tin-can Island Port Command, has organised a lecture on the current trends in cargo management at the port.

The lecture, organised for releasing, staff and examination officers and stakeholders held at the Command on Tuesday, March 26, 2024.

The Customs Area Controller, Comptroller Dera Nnadi, noted that the lecture, is in compliance with the directives of the headquarters.

According to him, cargo examination is the bedrock of customs operations at the port. “The idea is to compare the physical content of the container with documentary submission by the declarant or the importer”.

And what we expect is to ensure that there is no revenue leakage within the system, ensure that national security is protected and also to build trade data.”

He further emphasized the importance of trade to the Nigeria Customs Service and to the country’s growth and development.

He said, “Trade is synonymous with the Nigeria Customs Service, and the management of trade has a correlation with the development and growth of any nation. The moment you manage trade effectively in a country, that Country will have prospects and prosperity.”

He emphasised, “We are making our own contribution as a country through the NCS to also develop our environment.”

Participants at the lecture commended the Nigeria Customs Service’s efforts to improve its performance and that of stakeholders.

Assistant Comptroller of Customs, AC Ugochukwu Nwaogugwu, said the lecture “will go a long way to impact positively on our jobs, and the little mistakes will now be a thing of the past”.

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Customs Corner

Customs Forges Partnership With FRCN to Inform Nigerians its Mandates

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Author: Muhammad Bashir.

The Nigeria Customs Service (NCS) has expressed readiness to foster collaboration with the Federal Radio Corporation of Nigeria (FRCN) to enlighten Nigerians on the core mandates of the Service and its contributions to economic development.

Comptroller-General of Customs, Bashir Adewale Adeniyi MFR, made this known on Tuesday, 26 March 2024, during a meeting with the delegation of the FRCN led by the Director-General, Muhammad Bulama, at the Service’s Headquarters in Abuja.

Addressing the delegation, the CGC stated, “Over the years, I have seen that partnership with the media is very effective. So you need the media to amplify whatever we do, and we have found very good support. We have found a very strong partnership from the media, particularly from Radio Nigeria.”

Reiterating his commitment to reshaping the narrative of trade in Nigeria, CGC Adeniyi informed DG Bulama that the Service has made arrangements to implement various initiatives aimed at enhancing the efficiency of international trade.

“We are doing a lot more than people know us for, and this is why we feel necessitated to embrace this offer of strategic partnership that you have extended to us, to reach out to Nigerians, and let them know those things that we are doing, which ordinarily, they don’t know,’’ he explained.

In his address to the CGC and the NCS Management Team, the Director-General of the FRCN congratulated CGC Adeniyi on his appointment and commended the significant progress he has made since assuming office.

“We are convinced that the wisdom of Mr. President, appointing you to this position is already bearing fruits and is amply justified. Thus, we have no doubt in our minds that you shall succeed in repositioning this very important organisation, a very critical organisation in the life of our country,” DG Bulama remarked.

He explained that his team sought partnership with the Nigeria Customs Service, noting that ‘’we are convinced that it is no longer the era of us just sitting down in our office and believing that Nigerians know what we are doing.

“We are not taking our mandate lightly. We thought that we should come so that together, we can collaborate to help our country realise its potential and greatness. It is our duty to support, publicise, and advocate for the activities of the Nigeria Customs Service,” he emphasised.

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Customs Corner

COWA Oyo/Osun Customs Area Command Visits Ibadan Orphanage, Shows Support for Children.

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Author: Vivian Daniel.

The COWA Chairperson of the Nigeria Customs Service, Oyo/Osun Area Command, Mrs Nnneamaka Oramalugo has led a delegation on a heart-warming visit to two motherless babies’ homes in Ibadan, Oyo State.

This was contained in a press release signed by the Command’s Public Relations Officer, Superintendent of Customs, Kayode Wey, on behalf of the COWA Chairperson, noted that the visit occurred on Saturday, March 23, 2024.

The visit was in a bid to carry on the legacy and policy thrust of the National President of the Customs Officers Wives Association (COWA), Mrs Kikelomo Adewale Adeniyi, to alleviate the prevailing economic hardship being faced by Nigerians across the nation.

The Oyo/Osun COWA Chairperson, Mrs Nnneamaka Oramalugo emphasised that the noble visit to Child Care Home for Abandoned, Rescued Children and Juvenile Correctional as well as Home School for Handicapped Children located in Ibadan Oyo State was to extend love, care, and support to the children residing in these homes.

She was accompanied by members of COWA and some other officials from the Oyo/Osun Customs Area Command on what was termed as “a compassionate mission to bring joy and comfort to the lives of the children at the motherless babies’ homes.” The delegation also arrived at these homes with gifts, essential supplies and provisions generously donated by members of COWA.

During the visit, Mrs. Nneamaka warmly engaged with the children in various fun activities. The atmosphere was filled with laughter, smiles, and heartfelt moments as the children embraced the love showered on them by the COWA delegation.

She expressed her deep gratitude to the staff and caregivers of the motherless babies’ homes for their relentless commitment to providing an appropriate environment where the children under their care are well-nourished while reiterating the COWA’s unwavering support for other initiatives aimed at improving the welfare and well-being of such vulnerable members of society.

The Oyo/Osun COWA Chairperson stated that the visit to the motherless babies’ homes exemplifies COWA’s core values of compassion, empathy, and community service. It also underscores the organisation’s commitment to making a positive impact in the lives of the less-privileged and empowering women in society.

Furthermore, Mrs. Nneamaka Oramalugo presented palliative like Rice, Indomie Noddles, Toiletries and Detergent to Widows of Deceased Officers, as well as Widowers whose wives were registered members of COWA.

On behalf of the children, the staff and caregivers of the motherless babies’ homes expressed their gratitude and thanked the COWA Chairperson and member of the Association for their visit to the respective homes.

They also stated that the compassionate gesture and philanthropic efforts are highly appreciated, as they look forward to receiving more of such gestures, which they believe would go a long way to aid adequate provisions, especially, during this period of untold economic hardship in the country.

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