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Seven States Spend 190% Of Revenue On Loan Repayment
Published
2 months agoon
By
Editor
Seven states spent an average of 190 per cent of their Internally Generated Revenue on debt servicing in the first quarter of 2025, a development that shows the worsening fiscal strain facing subnational governments.
Data from the Q1 2025 Budget Implementation Reports of Bayelsa, Adamawa, Benue, Niger, Kogi, Taraba, and Bauchi states show that debt service expenditure in each of the states exceeded their IGR, in some cases by more than 300 per cent.
The trend, when compared with figures from the preceding quarter (Q4 2024), also reflects a sharp quarter-on-quarter surge in debt service cost, which rose by approximately 51 per cent across the states reviewed.
The PUNCH observed that seven Nigerian states spent a total of N98.71bn on debt servicing in Q1 2025, marking a sharp increase of N33.48bn or 51 per cent compared to the N65.24bn recorded in the previous quarter.
The data further revealed that the combined IGR for the seven states rose modestly from N44.05bn in Q4 2024 to N51.92bn in Q1 2025, indicating an increase of N7.87bn. However, this marginal revenue improvement was outpaced by a surge in debt repayment obligations, highlighting the widening fiscal gap at the subnational level.
Disbursements from the Federation Account Allocation Committee to the affected states increased from N360.75bn in Q4 2024 to N419.86bn in Q1 2025, representing a rise of N59.11bn within three months. The increase shows the continued dependence of states on federal transfers to meet not only operational costs but also mounting debt obligations.
In Q1 2025, the seven states required a combined total of N46.80bn from their FAAC allocations to fully cover the shortfall between IGR and debt service.
This amount represents approximately 11.15 per cent of their total FAAC inflows of N419.86bn during the period
In Benue State, debt service costs rose from N1.99bn in Q4 2024 to N21.40bn in Q1 2025, while IGR improved from N1.98bn to N5.18bn within the same period. This means that debt service in the first quarter accounted for 413 per cent of the state’s IGR and 31.6 per cent of total expenditure. The state relied on at least N16.22bn from its FAAC allocation of N58.71bn to meet the shortfall.
Kogi State reported a Q1 2025 IGR of N9.63bn but spent N23.88bn on debt servicing, equivalent to 248 per cent of its IGR. In the preceding quarter, debt service stood at N10.17bn against an IGR of N7.86bn.
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The state received N55.41bn from FAAC and recorded total expenditure of N110.13bn, of which 21.7 per cent was used for debt repayment. The Kogi State Government recently said that it has liquidated a total debt of N98.8bn since assuming office 15 months ago.
The State Commissioner for Finance and Economic Planning, Ashiru Idris, disclosed this during a briefing with journalists following the Executive Council meeting held at the Council Chambers, Government House, Lokoja.
The commissioner explained that the debts settled include liabilities dating back to the administration of Alhaji Ibrahim Idris, as well as the N50bn bailout fund granted to the administration of Idris Wada.
“So far, this administration, under the leadership of Alhaji Ahmed Usman Ododo, has cleared a total of N98.8bn inherited from previous administrations, including the N50bn salary bailout granted to Captain Idris Wada’s administration,” he stated.
Idris attributed this achievement to a significant increase in internally generated revenue. “This success was made possible through the proactive efforts of the Chief Servant of our state, Alhaji Ahmed Usman Ododo, who empowered the Kogi State Inland Revenue Generation Agency with the mandate to enhance the state’s revenue generation,” he added.
However, existing data shows that the state’s IGR cannot fully cover its debt service costs.
Adamawa State generated N4.07bn in IGR in Q1 2025 but recorded debt servicing of N8.42bn, representing 206.9 per cent of IGR and 20.7 per cent of the N40.77bn spent in the quarter. The state relied on at least N4.35bn from its FAAC allocation of N37.03bn to meet debt commitments.
While debt service declined slightly from N8.71bn in Q4 2024, the drop in IGR from N4.61bn further exposed the state’s fiscal fragility.
Bayelsa State spent N13.55bn on debt servicing in Q1 2025, exceeding its IGR of N12.55bn by 107.9 per cent. Although FAAC inflows of N120.55bn were sufficient to cover the gap, the data points to a consistent pattern of IGR insufficiency.
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Debt servicing constituted 6.1 per cent of the state’s total Q1 expenditure of N221.54bn. In Q4 2024, Bayelsa had spent N11.98bn on debt servicing, against an IGR of N10.05bn, representing 119.2 per cent.
In Niger State, debt servicing stood at N12.43bn in Q1 2025 compared to an IGR of N12.13bn, meaning 102.4 per cent of local revenue was used to repay debt.
While this was an improvement from Q4 2024, when IGR was N5.44bn and debt service was N9.27bn, the state still required N296m in FAAC support to cover its repayment obligations. Debt service accounted for 23.2 per cent of the N53.51bn spent in the period.
Taraba State generated only N3.38bn internally in Q1 2025 but spent N7.83bn on debt servicing, equating to 232 per cent of IGR. Debt repayment made up 19.3 per cent of the state’s total expenditure of N40.47bn, and it required at least N4.45bn of its N52.39bn FAAC allocation to close the gap.
In Q4 2024, the state had spent N6.43bn on debt servicing against an IGR of N5.80bn, showing a deterioration in its revenue capacity.
Bauchi State reported an IGR of N4.97bn in Q1 2025, with debt servicing at N11.20bn, amounting to 225 per cent of its locally generated revenue. The state needed N6.23bn from its N47.23bn FAAC inflow to meet the shortfall.
Debt service made up 11.6 per cent of the total expenditure of N96.84bn. In Q4 2024, Bauchi generated N8.31bn and spent N16.68bn on debt service, a slightly better performance relative to IGR but a worse financial position overall due to declining revenue.
Collectively, the seven states generated N51.91bn in IGR in Q1 2025 and spent N98.36bn on debt servicing, approximately 190 per cent of what they earned internally. This figure represents a significant rise from the N65.26bn spent on debt repayment in Q4 2024, despite the modest growth in IGR.
In most of the states reviewed, debt service costs ranged from 6 per cent to 32 per cent of total government expenditure, illustrating how rising debt burdens are crowding out developmental spending. The over-reliance on FAAC disbursements to meet debt servicing needs exposes the fiscal vulnerability of subnational governments.
The National Orientation Agency earlier stated that the Bola Tinubu administration’s twin policies of ending petrol subsidy and floating the naira were “tremendous blessings to the states”, leading to a freeing up of revenues, with states witnessing a leap in federal allocations.
According to The PUNCH, eight states were to pay a combined N424.28bn in debt service and to borrow N1.21tn over the next two years, with financial commitments slated for 2025 and 2026.
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According to the states’ medium-term fiscal frameworks, the eight states in review – Abia, Adamawa, Bauchi, Borno, Kebbi, Osun, Benue, and Kano – were projected to experience varying debt service and borrowing trends. The analysis indicates differences between 2025 and 2026, with some states facing substantial increases in debt service while others focus on reducing borrowing.
The total public debt service for the eight states is projected to be N180.95bn in 2025, with an increase to N243.33bn in 2026, bringing the total public debt service for the two years to N424.28bn.
Regarding financing (loans), the total for 2025 is expected to be N616.25bn, while it is projected to decrease slightly to N593.09bn in 2026. This results in a total financing (loans) figure of N1.21tn for the 2025 – 2026 period.
These figures highlight the significant financial commitments these states are facing in the coming years, driven by rising debt obligations and continued borrowing.
The Director and Chief Economist at Proshare Nigeria LLC, Teslim Shitta-Bey, earlier warned that the rising debt burden on Nigeria’s subnational governments is likely to challenge their fiscal stability in the coming years.
He stressed that most state governments, along with the Federal Government, have failed to effectively manage their balance sheets.
Speaking to The PUNCH, Shitta-Bey said, “The challenge here is that most of the governments, including the Federal Government, are unable to manage their balance sheets properly. While borrowing might seem like an easy way to run operations, it is not necessarily the right approach.”
According to Shitta-Bey, borrowing should not be the default solution for governments. “Governments could consider longer-term debt structures that resemble equity, which might actually be more beneficial in the long run,” he explained.
He also called for a comprehensive register of national assets to help states raise capital. He used the example of the National Stadium, which has not been used for major activities for a while.
Shitta-Bey further lamented the underuse of state revenue bonds, which were originally designed to generate revenue. “States need to focus on raising revenue bonds, instead of general obligation bonds,” he said.
(PUNCH)
News
[OPINION] Buhari: The Good, t The Bad, And The Terrible
Published
4 hours agoon
July 18, 2025By
Editor
Tunde Odesola
With tonnes of turmoil – the weight of Olumo Rock – pressing down on my soul, I sit at my desk and stare at my scroll, feather and inkwell, lost in thought. My mind is foggy and full of sorrow: the Olubadan is dead; the Awujale is dead; former President Muhammadu Buhari is dead. How are the mighty fallen!
In Nigeria, death is harvesting lilliputs and giants. The Earth sheds tears. The clouds stood still. The sun bolts its door because the land is sodden with grief. Is it not said that the ailment that afflicts the Chief Priest, Aboyade, afflicts all the initiates of Oya? Human tears fall for Olubadan Owolabi Olakulehin and Awujale Sikiru Adetona; crocodile tears fall for General Muhammadu Buhari, the biased grand patron of gun-shooting Miyetti Allah Herdsmen of Nigeria.
Twice, I put my feather to my scroll to pen tributes to the two-and-a-half departed souls. Twice, the quill of my feather broke. Now, I lift my voice to ye ancestors of our dear native land, though tribe and tongue may differ. I call on thee to stand by me in this third attempt to unmask hypocrisy, call a spade by its name, and stop professional mourners from wrapping jèbè in àkísà (rag) for Nigerians.
What is jèbè? I went to an elder who knows. Historian and Ifa priest, Professor Wande Abimbola, said, “Jèbè is menstrual flow.” Stunned, I said to him, “If I had a hundred years to decode the meaning of jèbè, I would never have been successful.” I thanked Baba Abimbola and came back to my feather and scroll.
The progenitors of this land, it is you I call unto! This is my third attempt at writing this piece; twice my quill has broken, probably broken by corrupt elements wrapping menstrual flow in rags and showing it off to Nigerians as a priceless gift, when it should have been buried in a shallow grave in Daura.
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As I launch forward again to unfurl the turmoil in my mind and mourn the departed monarchs and the herdsman, I beseech thee to stand firmly by me as the ears stand firmly by the head. Pray, let my feather not break the third time because àrò méta kìí d’obè nù: the tripod doesn’t spill the soup.
The day the elephant breathes its last, knives and swords surge into the forest. The day a man dies, he becomes a graven image of admiration, ojo a ba ku la a dere, eyan o suwon laaye. Barefaced, Death stormed Oluyole in the morning of Monday, July 7, 2025, – Ojó Ajé, the Yoruba day of profit, and heaved the Olubadan of Ibadan, Oba Owolabi Olákùléhìn, on his shoulders, en route to òrun alákeji, the afterlife. Sadly, the weevil never lets the mouth munch mature kola: kokoro buruku o je ka je obi to gbo. Oba Olákùléhìn was enthroned at 89; he joined his ancestors at 90.
Amid a torrent of tears, Death left Ibadan for Ijebu-Ode and headed straight to the palace of Ajagbalura, where, without knocking or invitation, he barged in and met the Ogbagba Agbotewole seated in splendour. Oba Adetona looked Death in the eye, unafraid and unflinching. Death nodded; it was time to go. Adetona rose and struck his sceptre on the ground, gbam! He was never a coward. He once looked into the barrel of the smoking gun held by Sani Abacha. That was the era when serving military generals peed in their pants, prostrating at the feet of a mistrained and manipulative maniac called Major HARMzat. In his autobiography, Awujale, Adetona called the Ebora Owu Judas to his face in Aso Rock – when the Ebora Owu was allegedly scheming for a third term.
Like the immediate past Oba of Lagos, Kabiyesi Adeyinka Oyekan, nicknamed Baba Kola, who smoked cigarettes and lived for 91 years, Adetona too smoked and lived for 91 years. Does their longevity mean royal lungs are immune to lung cancer, heart diseases, emphysema and other cigarette-smoking induced diseases? Or is it a case of àyànmò – destiny? I’ll advise you not to smoke if you have never started, and try to quit if you have already started. Quitting cigarettes was the biggest personal victory of self-control over self-indulgence I ever achieved.
The late Oyekan and Adetona were honourable obas on whose heads crowns sat with dignity. Oyekan was a pharmacist who studied at Edinburgh. Adetona was an accountant who studied in the UK. Neither of them was ever videoed rolling ‘igbo’ with a ‘risler’, like my ex-friend, Emir Adewale Abdulrasheed.
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The same day death knocked on the Ijebu-Ode palace door, it crept behind a door in one of the biggest and most exclusive private hospitals in London. Inside this super-expensive hospital, wired to machines, lay General Muhammadu Buhari, who left decrepit public hospitals back at home to enjoy first-class medical treatment in London.
A long time ago, while drinking from the fountain of knowledge of the Orangun of Oke-Ila, Oba Adedokun Abolarin, the monarch dropped a nugget of historical wisdom, which I have kept in my left hand ever since. “Tunde,” he said. “Kabiyesi,” I responded. “Do you know which universities the children of Nigeria’s leaders at independence went to? Go and find out.”
My findings were shocking. From the West to the East, the North and the South-South, I discovered that the children of premiers, ministers, state governors, federal parliamentarians, state legislators and top civil servants, schooled abroad when Nigeria had the University College, London, right in Ibadan. Nigeria had been prodigal since birth.
Before independence in 1960, Nigeria had, in the heart of Ibadan, the College of the University of London, established in 1948. It later became the University of Ibadan in 1962, just as the University of Nigeria was established in 1955, while the University of Ife (now Obafemi Awolowo University), the University of Lagos and the Ahmadu Bello University were all established in 1962. That was when there was a country.
Unfortunately, Nigerian leaders before and after independence felt that the country they professed to be building was inferior to the countries of their slave masters. The sense of greed, elitism, status symbol and inferiority complex later metastasised into corruption in governance as economic fortunes dwindled and the naira lost its power. But our leaders have tasted the forbidden fruit; they can’t do without the apple.
In 1962, at the age of 19, Buhari was recruited into the Nigerian Army. By January 1963, at the age of 20, he was commissioned a second lieutenant of the Nigerian Army. Today, it takes five years to become a second lieutenant in the Nigerian Army. From the outset of his adult life, Buhari lived on favour and avowed allegiance to Fulani oligarchy and Nigeria’s (dis)unity.
On December 31, 1983, Buhari toppled the democratically elected government of Alhaji Shehu Shagari and promised to turn Nigeria into heaven on earth. He bore his ethnic fangs on the night of the coup. Shagari was put under house arrest where all amenities were provided for him while Dr Alex Ekweueme, Shagari’s deputy, was clamped in prison. Shagari, a fellow Fulani, was unscathed while the Buhari junta sentenced politicians from other regions of the country to jail terms, ranging from 100 years to 200 years or more.
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That was when Nigerians should have seen Buhari as a snake in the grass, but we were swayed by his gaunt looks, and felt his flat stomach was a symbol of honesty and integrity, not realising that no matter the amount of blood the mosquito sucks, its neck, legs and proboscis will still be skinny.
With a horse tail, the duplicitous Buhari and his deputy, Tunde Idiagbon, whipped every Nigerian into the line of War Against Indiscipline, ordering public servants not to take their children to hajj, but the underage son of Idiagbon, Kunle, went to hajj with Idiagbon. The secret was let out of the bag when another terrible military leader, Ibrahim Babangida, overthrew the Buhari-Idiagbon regime in 1985 while Idiagbon was away with his son on hajj.
A certain kleptomania called Sani Abacha found his way into power in 1998 and gave the plum Petroleum Task (Fraud) Fund to Buhari to oversee. Despite foreign countries’ remittance of billions of dollars stashed away by Abacha while he ruined Nigeria, Angel Buhari opened his mouth, ‘gbagada’, to say Abacha wasn’t corrupt.
Buhari later became a civilian president, and there was COVID. In the global lockdown, however, Abba Kyari, Buhari’s Chief of Staff, died, and the stringent law against mass gathering was violated by Buhari’s government for Kyari, as government officials trooped out en masse to bury Kyari. Meanwhile, Nigerian Nollywood star Funke Akindele was prosecuted and found guilty of violating the law against mass gathering.
Talk no go ever finish for Buhari head. During a nationwide fuel scarcity, Yusuff, the son of Buhari, fed the massive tank of his multi-million naira motorbike to the brim, and zoom, he went off on a personal grand prix race on the roads of Abuja and crashed like Humpty Dumpty. That was when Nigerians knew Mr WAI could allow his son to own many motorbikes and roam Abuja without adhering to the speed limit. If Yusuff had rammed into a motorist and was clearly at fault, Buhari would most likely have personally skinned the motorist alive.
It was the same Mr Integrity who opened the presidential hangar to his daughter, Hanan, to fly presidential jets to photoshoots and do personal chores. Meanwhile, Buhari had warned Nigerians, “If we do not kill corruption, corruption will kill Nigeria”, yet failed to keep his promise of asset declaration, which he made during campaigns.
I have read syrupy tributes by various Nigerian leaders and even the opposition Peoples Democratic Party. In a statement, the PDP said Buhari dedicated his life to service, describing him as a ‘disciplined leader’. This is the same PDP that had described Buhari as brain-dead.
Goodnight, Muhammadu Buhari: Nigeria’s greatest leader.
—-//—-
Email: tundeodes2003@yahoo.com
Facebook: @Tunde Odesola
X: @Tunde_Odesola
News
One Year, Big Impact: Otuaro’s Silent Revolution in the Niger Delta
Published
5 hours agoon
July 18, 2025By
Editor
By Julius Ogunro
It is barely over a year since Dennis Otauro, PhD, was appointed as the Administrator of the Presidential Amnesty Programme. Still, in that short time, his impact as the region’s strong voice, advocate, and the president’s outreach arm, bringing hope and development to the Niger Delta, has grown significantly.
When he was appointed in March 2024 by President Bola Tinubu, his designated beat was the Presidential Amnesty Programme (PAP), which was established in 2009 to manage the disarmament, rehabilitation, and reintegration of frustrated Niger Delta activists, some of whom had taken up arms against the government to protest the region’ economic marginalization and the degradation of its environment by oil exploration.
From 2009 until March 2024, the amnesty programme was led by several administrators, who bore different titles and did their best to achieve its mandate of peace and security in the Niger Delta through the payment of stipends to ex-agitators and the provision of vocational and formal education opportunities to members of the communities impacted by the militancy.
Then enter Otuaro. His vision for the Programme is bold, transformative, and inclusive. Apart from the agitators who are on the government payroll, he has refocused the amnesty programme to capture the next generation of Niger Delta leaders, expanding its frontiers to cater to the interests of a range of stakeholders, especially women and young people.
His strategy centres around a broad range of initiatives designed by him and his team to foster enduring peace and prevent any resurgence of militancy in the Niger Delta region. One of these is the Programme’s intervention in expanding education opportunities, especially the scholarship scheme for undergraduates from the Niger Delta.
Although Otuaro did not initiate the undergraduate scholarships scheme, which had existed for many years before his appointment, he has so reinvigorated it that the award, to use a metaphor, has been given a new lease of life.
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Before Otuaro, only a few hundred Niger Delta students managed to get the annual scholarships through a cumbersome process, as it was opaque and many had criticised it for being unfair and lacking integrity. Perhaps this was because the previous administrators did not consider education a top priority and viewed the scholarships as not central to their role at Amnesty.
But Otuaro’s vision is different. In his first year as administrator, the undergraduate scholarship scheme has increased from a few hundred students to over 3000. Even more, the award process is now more open and inclusive, starting with a media announcement for interested Niger Delta youth to apply, with assurance that merit will play a significant role in the process.
And merit did play a role in the grant of the scholarships for the current session. Many prospective students applied, did the aptitude tests, and were awarded the multi-year scholarship, which covers tuition, accommodation, and living expenses, with little or no influence from the amnesty office, a far cry from what used to happen in the past, when there were complaints that money had exchanged hands.
In addition, the overseas postgraduate scholarship, suspended by the previous administrators, has been reinstated and broadened. For this current academic session, about 70 Niger Delta postgraduate students were awarded foreign scholarships to universities in the US, Canada, Britain, and other overseas countries. Otuaro made sure that the awardees are pursuing courses that are development-focused and relevant to the material needs of the Niger Delta people.
Otuaro’s footprints are also visible in vocational training. With 98 delegates deployed for maritime-related skills training, including refresher courses at Joemarine Institute for Officer of the Watch (OOW) certification; 40 Niger Delta youth trained as aircraft maintenance engineers; another 39 deployed for on-the-job training at organisations like Seven Star Global Hangar and Aero Contractors; and four cadet pilots sent to South Africa for type-rating training, with successful graduation and return to Nigeria.
The focus on human development and young people appears to be a genius move by the administrator of the amnesty programme, and a strategy to stop future militancy before it even happens. In the mid-1990s and early 2000s, the Niger Delta boiled as several groups took up arms against the government and oil companies to protest the neglect of the region, which is the goose that lays Nigeria’s golden egg, as nearly all the oil exploration and production take place there.
Pipelines were destroyed, workers kidnapped, and oil production was significantly disrupted, leading to huge economic losses for Nigeria and the oil companies operating in the region. The militancy also led to a humanitarian crisis, with many communities suffering from the effects of oil spills, environmental degradation, and violence. The dire situation drew global attention and concern, which highlighted the need for a comprehensive approach to addressing the root causes of the conflict and promoting sustainable peace and development in the Niger Delta region.
The federal government’s response was the amnesty programme in June 2009. Over three years, up to 2012, three phases of the programme were declared to reintegrate thousands of armed militants and pacify the region. It has been over a decade and a half since the first phase of the amnesty scheme began, and many of the beneficiaries are thus getting old and have probably lost the appetite for armed struggle.
Yet the conditions that gave rise to the uprising still exist, despite the government’s efforts over the years. The fear is that those challenges may breed the next generation of militants, angry over the prevalence of poverty and underdevelopment of the Niger Delta.
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That is why Otuaro’s strong intervention in human development in the Niger Delta, through various initiatives in formal and non-formal education, is brilliant and commendable. That he has implemented the schemes openly and transparently, thus giving the son of a fisherman and the daughter of a boat-maker in the creeks a chance to make something of themselves, is nothing short of transformative, providing hope and opportunities to the overlooked voices.
And he has done all this while not neglecting the original agitators on the government payroll, ensuring they are paid promptly, resolving challenges related to payment delays, offering suitable training to wean them off government handouts, and advocating for qualified beneficiaries’ placement in jobs in the public service.
Otuaro’s impact in just one year is visible and enduring. An asset to the current administration, he is proof that government in its purest form is not merely an idea or an institution on paper but a living presence, something that can be seen, heard, and felt in the everyday lives of the people.
News
More Trouble At Benin GSM Village As Igbineweka Warns Ojiezele To Stop Parading Himself As Chairman
Published
7 hours agoon
July 18, 2025By
Editor
There seems to be no solution on sight yet in the leadership crisis rocking the Great GSM Village Association, Benin, as chairman of the association, Mr. Odion Jerry Igbineweka, has warned Mr. Michael Ojiezele to stop parading himself as chairman, saying there is no faction in the association.
INFO DAILY had reported that the association held parallel elections few months ago which produced two exco respectively.
But reacting to a recent
event that took place at the GSM Village where Obinna “Obi” Iyiegbu popularly known as Obi Cubana, a Nigerian businessman, socialite, entertainer was hosted by Ojiezele who claimed to be the chairman of the village, Igbineweka described it as impersonation, saying he is the authentic chairman.
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Mr. Igbineweka said he has no business with the presence of Cubana at the village but the person who invited him to the event.
Igbineweka added that the said Ojiezele is not the authentic chairman of the Great GSM Village but himself.
According to him, an election was conducted at the Great GSM Village and he was duly elected and sworn in as the chairman of the association this year.
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He said the idea of Ojiezele introducing himself to Cubana as the chairman of the GSM Village is criminal and it must not be tolerated in any guise.
He said the current members of the Great GSM Village association are law abiding citizens and will not want to take the law into their own hands with what they witnessed yesterday.
He called on Ojiezele to stop parading and introducing himself as the chairman of the association in any fora.
He further called on the security agencies in the state to wade in and call him to order.
- [OPINION] Buhari: The Good, t The Bad, And The Terrible
- One Year, Big Impact: Otuaro’s Silent Revolution in the Niger Delta
- More Trouble At Benin GSM Village As Igbineweka Warns Ojiezele To Stop Parading Himself As Chairman
- ‘His Security Is Not Guaranteed,’ Okpehbolo Warns Obi Not To Come To Edo Without Informing Him
- US Tech CEO Caught Cheating With HR At Coldplay Concert
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