Business

Domestic Debt Charges Rise By 244%

Published

3 years ago

October 16, 2022

The Federal Government has proposed to spend N4.5tn on interest charges for domestic debt by 2023, according to the proposed 2023 budget.

This is an increase of 243.51 per cent from the N1.31tn proposed allocation for interest charges on domestic debt in 2016.

While presenting the 2023 appropriation bill to a joint session of the National Assembly recently President Muhammadu Buhari noted that despite the revenue challenges in the country, the country still consistently met its debt service obligation.

“Despite our revenue challenges, we have consistently met our debt service commitments. Staff salaries and statutory transfers have also been paid as and when due,” Buhari added.

However, speaking at the launch of the World Bank’s Nigeria Development Update titled, ‘The urgency for business unusual,’ held recently in Abuja, the Finance Minister, Zainab Ahmed, had admitted that Nigeria was struggling to service its debt.

She said, “Already, we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate, so it is a very difficult situation.”

In a document by the Director General of the Debt Management Office, Patience Oniha, recently obtained by our correspondent, the DMO stated that high debt levels would often lead to high debt services and affect investments in infrastructure.

According to the DMO DG, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”

Despite this, the government plans to borrow N8.80tn and spend N6.31tn on debt service in 2023.

In its latest Africa’s Pulse report, the World Bank said that public debt in Nigeria was concerning due to the rising debt service-to-revenue ratio.

According to the bank, the debt service to revenue ratio could stand at 102.3 per cent by the end of 2022.

The President of the World Bank Group, David Malpass, recently said that the bank would work with the International Monetary Fund to assess Nigeria’s debt sustainability.

He said, “We will work with the IMF on an assessment of the debt sustainability of Nigeria but it will be up to Nigeria itself to interact with the various creditors, which include bond holders, official creditors, that are engaged in Nigeria.”

Earlier, Ahmed had disclosed that the Nigerian government was in talks with the IMF and the World Bank to restructure the country’s debts.

However, the World Bank Group President said that Nigeria was yet to request the common framework for debt restructuring.

The Chief Executive Officer of Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, recently said that the Nigerian economy had been characterised by diverse economic vulnerabilities, which included rising public debt and debt service burden.

As a result of the increasing debt service cost, he said that, “Financing of the operations of government – personnel cost, overhead cost, capital expenditure, and even part of the servicing of the debt – will have to come from additional borrowing. These portend severe vulnerabilities for the Nigerian economy.”
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Business

Dangote Refinery Reduces Fuel Price Nationwide, Provides Update On Petrol Distribution

Published

4 hours ago

September 12, 2025

Editor

Dangote Refinery has reduced its premium motor spirit retail price nationwide.

This is as it announced Monday, September 15, 2025, as the new date to begin the direct petrol distribution initiative.

The initiative, which Dangote Group had earlier announced would kick off on August 15, 2025, would see the $20 billion plant distribute petrol and diesel to consumers with its 4,000 compressed natural gas trucks at zero logistics cost.

The 650,000-barrel-per-day refinery said its new gantry price is N820 per litre, the same price announced last month.

Business

FG Gives Criteria For Opening Bank Accounts

Published

4 hours ago

September 12, 2025

Editor

From January 1, 2026, all Nigerians and non-residents will be required to obtain a Tax Identification Number, Tax ID, to open or operate bank accounts.

The development followed the enactment of the Nigeria Tax Administration Act, 2025, recently signed into law by President Bola Tinubu.

Section 8(2) of the Act makes the Tax ID compulsory for banking, insurance, stock broking, and other financial services. It also extends the requirement to contracts with federal and state governments.

For non-residents, Section 6(1) mandates registration for tax purposes, requiring them to obtain a Tax ID if they supply taxable goods and services or derive income from Nigeria.

To enforce compliance, Section 7(3) empowers tax authorities to assign a Tax ID to individuals or entities who fail to register. The Act also allows for suspension or deregistration of a Tax ID if a business ceases operations temporarily or permanently, provided tax authorities are notified within 30 days.

The legislation is aimed at expanding Nigeria’s tax net and boosting revenue collection. Analysts say the policy could significantly improve tax compliance rates nationwide.

Financial institutions are expected to adjust their systems and processes ahead of the January 2026 rollout.

Business

NUPENG Accuses Dangote Of Breaching Agreement, Says Nationwide Strike Inevitable

Published

16 hours ago

September 12, 2025

Editor

The Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has accused the management of Dangote Group of violating a peace pact brokered at the Department of State Services, DSS, headquarters on September 9, warning that a nationwide strike appears inevitable.

A statement by NUPENG President, Prince Williams Akporeha, and General Secretary, Afolabi Olawale, placed members nationwide on red alert, urging them to prepare for a possible resumption of the suspended industrial action.

The statement reads: “This is to alert the general public and the government of the Federal Republic of Nigeria that, notwithstanding the resolution reached and signed at the office of the Department of State Services (DSS) — with three Ministers of the Federal Republic of Nigeria and the Deputy Director-General of the DSS in attendance — on the right of workers to unionise, Mr. Sayyu Aliu Dantata, on Wednesday, 10th September 2025, instructed all his truck drivers, who have been members of NUPENG-PTD for several years, to remove the union stickers from their trucks.

“Today, Thursday, 11th September 2025, he further instructed them to forcefully drive into the Dangote Refinery to load products. Officials stopped them from entering the refinery because their trucks violated the loading rules and regulations.

“We strongly condemn this attitude towards the official institutions of this great country and blatant lack of respect for the laws of the land.

“We call on the Federal Government not to allow the security agents — who are being paid with the resources of this country — to be used with impunity against the laws and people of Nigeria.

“Security agents should not allow any individual to breach the law, particularly while disregarding agreements reached in meetings facilitated by them and attended by Ministers of the Federal Republic of Nigeria.

“By this statement, we are placing all our members on red alert for the possible resumption of the suspended nationwide industrial action. We also call on the Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC), all regional and global working people, and civil society organizations to rise in support and solidarity against this threat from the capitalist elite.

“His wealth cannot place him above the law.

“We assure the people and government of the Federal Republic of Nigeria that NUPENG will continue to remain a patriotic, responsible, and responsive organization committed to the progress of this great country.”