News
Abia, Enugu, Ebonyi lead in S’East as Govs leave huge debts behind
Out of the 28 states, 11 governors will be seeking re-election in March.
They include Governors Mohammed Yahaya of Gombe; Babagana Zulum (Borno); Abdullahi Sule (Nasarawa); Seyi Makinde (Oyo); Mai Buni (Yobe); Bello Matawalle (Zamfara); Babajide Sanwo-Olu (Lagos); Ahmadu Fintiri (Adamawa); Dapo Abiodun (Ogun); Bala Mohammed (Bauchi) and Abdulrahman Abdulrazak of Kwara state.
Those that will not be seeking re-elections are Emannuel Udom (Akwa Ibom); Samuel Ortom (Benue) Ifeanyi Okowa (Delta); David Umahi (Ebonyi); Mohammed Abubakar (Gombe) Aminu Masari (Katsina); Bello Bagudu (Kebbi); Abubakar Bello (Niger); Aminu Tambuwal (Sokoto); Simon Lalong (Plateau) and Darius Ishaku of Taraba.
Other governors that are not seeking re-election include the Kaduna State Governor, Nasiru El-rufai; Abdulahi Ganduje (Kano); Victor Ikpeazu (Abia); Ifeanyi Ugwuanyi (Enugu); Ben Ayade( Cross Rivers) and Nyesome Wike of Rivers.
The sub-national debts are classified into domestic-borrowings from local creditors and external-borrowings from foreign or international creditors like the World Bank.
The domestic and external debts published on the DMO’s website were as of September 30 and June 30, 2022, respectively.
According to the reports, sub-national domestic debts were about N4.38tn while their external debts were about $3.15bn or N1.42tn based on the exchange rate of the Central Bank of Nigeria of N449.53 to a dollar as of Thursday.
The data further shows that Lagos has the highest debt, with N877.04bn domestic debt and $1.27bn foreign debt.
It is followed by Kaduna, with a domestic debt of N86.86bn and external debt of $586.78m.
The third highest debt is Rivers, with a domestic debt of N225.51bn and foreign debt of $140.18m.
In the fourth highest debtor position is Cross Rivers, with N175.2bn domestic debt and $215.75m external debt.
It is followed by Ogun with N241.78bn domestic debt and $122.73m foreign debt.
Others include Bauchi (N144.28bn domestic debt and $172.76m external debt); Enugu (N89.89bn and $123.02m); Kano (N125.19bn and $109.42m); Abia (N104.57bn and $95.63m) and Adamawa (N122.48bn and $77.01m).
Other debtor states are Akwa Ibom (N219.62bn and $46.567m), Benue (N143.37bn and $30.47m), Borno (N96.33bn and $18.7m), Delta (N272.61bn and $60.05m), Ebonyi (N67.06bn and $59.84m), Gombe (N139.1bn and $46.93m), Jigawa (N44.41bn and $27.61m), Katsina (N62.37bn and $55.82m), Kebbi (N60.13bn and $42.40m), Kwara (N109.55bn and $45.94m), and Nasarawa (N72.63bn and $53.73m).
Also on the list are Niger (N98.26bn and $69.27m), Oyo (N160.07bn and $76.97m), Plateau (N151.90bn and $33.74m), Sokoto (N85.58bn and $37.13m), Taraba (N90.81bn and $22.28m), Yobe (N92.86bn and $23.09m) and Zamfara (N109.69bn and $29.33m).
The FCT had a domestic debt of N112.49bn and external debt of $25.38m.
These hese states and the FCT owed up to 81.72 per cent of the N5.36tn sub-national domestic debts and 69.08 per cent of $4.56bn external debts.
Speaking with our correspondent on Thursday over the phone, the Director, Portfolio Management Department of the DMO, Dele Afolabi, noted that each state was expected to send in quarterly information on their domestic debts.
He added that by being transparent with their debt profiles, states would be able to access more funding.
The debt servicing is done by the Federal Government but it is deducted from the federal allocation to the states.
States’ debts
In its December 2022 edition of the Nigeria Development Update, the World Bank noted that states’ debts would rise above 200 per cent of the revenue generated in 2022 and 2023.
The report read, “Debt levels for an average state are estimated to increase from 154.6 per cent of revenues in 2021 to above 200 per cent of revenues in both 2022 and 2023.”
According to the Washington-based bank, the increase in debts will be due to low allocation from the Federation Account, which will likely weaken the fiscal condition of the states.
The report added, “The fiscal condition of sub-national governments is expected to weaken in 2022, as Federation Account transfers for the average state are estimated to decline due to weak net oil revenue collection.
“For an average state, statutory transfers—the main source of state revenue—are estimated to decline by 5.5 per cent and internally generated revenue is estimated to remain at broadly the same levels as in 2021 (declining slightly by 0.8 percent).
‘’Nevertheless, total revenues for an average state are estimated to remain broadly unchanged in nominal terms as gains in VAT revenues are estimated to offset the declines in statutory transfers. However, expenditure is expected to increase by almost 4 per cent for an average state in nominal terms, especially capital expenditure, which is estimated to increase by 17.3 per cent in nominal terms in the run-up to the 2023 general election.
‘’Recurrent expenditure between 2021 and 2022 is estimated to have contracted by almost 5.4 per cent for an average state, raising concerns about accumulation of arrears. These trends are estimated to continue in 2023 with the fiscal position of the states weakening.”
The global lender had earlier said that Nigerian states will likely lose N18.8bn in oil and gas revenues in 2022, as worsening revenue collection at the federation level increases budgetary pressures for the states.
According to the bank, the declining revenue from the federation level has put many states in a precarious fiscal position.
It warned that many states would be unable to meet up with their expenditures, adding that there was an increase in debt servicing expenditures of states.
But the special Adviser Media and Publicity to the Cross River Governor, Christian Ita blamed the state’s debt burden on previous administrations.
He stated, “The debt burden on the state is something that was inherited by this administration. Indeed, as at May 29, 2015 when the current administration came on board, the state had attained the threshold of borrowing, a situation that made it impossible for the current administration to borrow.
“The disconcerting part is that while the administration was prevented from borrowing by the Debt Management Office, the federal government has been deducting between N1.6bn to N2bn monthly from the state’s allocation, thus leaving the state in dire straits.”
Speaking on its huge debt profile, the Lagos State government explained that its domestic and foreign debts were necessary because there was no other way the government could fund the projects executed in the state.
According to the estimate made by The PUNCH, Lagos state has the highest domestic debt of N876bn and a foreign debt of $1.27 bn.
Lagos defends debts
But the state Commissioner of Information, Mr Gbenga Omotoso, insisted that the debts were sustainable and would not hinder any development after May 29, adding that what the debts were used for was what mattered.
He said, “The debts are more than sustainable. Recently, Lagos State got a Fitch AA+ rating and what it means is that we are running our finances very well and we are super creditworthy. I think we are the only state in Nigeria to have had such a rating.
“Apart from that, people say Lagos State debt is high but the problem is not the high domestic or foreign debts but what they are used for. The United States of America has the highest debt profile in the world, yet many are flocking there. To borrow money to pay salaries is bad but to borrow it to fund projects that will generate revenue and provide jobs is good.
“Lagos has a high debt profile because it has embarked on and executed a lot of infrastructural and transport projects, among many that will in turn generate income. We have not expended up to 50 per cent of our Gross Domestic Product so we still have enough room to borrow money and that is why you see that people are turning over to Lagos because they know that the state is creditworthy.
“There is no way you can embark on the big projects that the Lagos State Government has executed without borrowing money. Where will the cash come from? Look at the Blue Rail, can you imagine the number of people it will be conveying daily and the jobs it has created? So there is no way you can fund that kind of project without borrowing money at all.
“This will never affect any development after May 29. In fact, if anything, it will bring more developments. By the time you say you save billions of naira to build a railway, even the people who should ride on it would have died, so one needs to find a way of funding it, and the better way is to borrow money, and local financial institutions are coming to Lagos to lend money to the government because they know the economy has a bright future.”
When contacted about the debts Governor Wike would be leaving for the incoming administration, the Rivers State Commissioner for Finance, Isaac Kamalu said he was in a meeting and could not comment.
Kaduna government
Similarly, there was no reaction from the Kaduna State Government when asked about its plans to address the huge debts on Thursday.
The Special Adviser on Media and Communication to the governor, Mr. Muyiwa Adekeye could not be reached on the phone and he did not respond to the query sent to him on the Whatsapp platform.
Officials of Ogun State Government kept mum as both the state Commissioner for Information and Strategy, Waheed Odusile and Chief Press Secretary to the state governor, Kunle Somorin did not respond to calls or messages sent to their phones.
Meanwhile, the All Progressives Congress in Delta State has kicked against alleged plan by Governor Okowa to borrow N40b.
The party in a statement on Thursday warned all commercial banks and lending institutions in the country to be wary of the outgoing PDP government in the state.
The party said, ‘’It has come to the notice of the public and to the knowledge of the All Progressive Congress that the government of Delta state is yet again negotiating a loan facility for N40b.’’
In the statement endorsed by the APC governorship candidate in Delta State, Senator Ovie Omo-Agege, the party noted with concern that “the need for such a facility has not been made public, neither has the purpose for which the credit is being sought.”
“It is also our knowledge that a bill seeking the approval for such a facility has not been presented before the House of Assembly and neither has approval been obtained”, it further stated.
Consequently, the party warned all commercial banks and lending institutions in the country to be wary of such borrowings.
The statement read partly, “Now therefore, be it known to all banks, lending institutions, credit agencies etc that any facility, loan, credit, advancement or borrowing by any other name known made or advanced to the government of Delta state in the course of the remaining tenure of the present administration will not be acceptable to the people of Delta state.
“The next administration and the citizens of Delta state will not be further encumbered by the rascality and profligacy of the present government.
“We state unequivocally that the state is over-borrowed and the citizens will not accept the encumbrance and obligations of further borrowing.’’
A political analyst, Dr. Kenneth Anozie, has described Dr. Anyichuks Odii as a potential solution to what he characterised as the challenges of governance in Ebonyi State, ahead of the 2027 elections.
In a statement titled “Ebonyi 2027; Don’t Cry Anymore,” Anozie declared that the state’s “time of freedom has finally come,” while presenting Odii as a leader with the competence and capacity to transform the state.
According to the analyst, Ebonyi residents have endured what he described as “incompetence and maladministration” under the current APC-led administration, alleging that the situation has caused widespread hardship among the people.
He argued that the 2027 election presents an opportunity for Ebonyi residents to demand a change in leadership, describing Odii as “Godsent” and an answer to the prayers of the people.
Anozie also highlighted areas where he believes Odii could make an impact if elected, including tackling insecurity, improving the education sector, promoting industrialisation and investment, advancing mechanised agriculture, and strengthening healthcare delivery.
“Ebonyi time of freedom has finally come,” Anozie said, adding that Odii represents the redemption he believes the people of the state are waiting for.
The analyst urged Ebonyi residents not to miss what he described as an opportunity for the state’s transformation, declaring: “Ebonyi: Anyichuks Odii got your back.”
Former Vice President Atiku Abubakar has dragged President Bola Tinubu before the Federal High Court, Abuja, seeking to disqualify him from contesting the 2027 presidential election over an alleged forged National Youth Service Corps certificate.Atiku personally appeared at the court registry on Friday to depose to an affidavit supporting the suit instituted against Tinubu, the All Progressives Congress and the Independent National Electoral Commission .The suit invokes Sections 137(1)(j), 139(1)(a)(i) and 285(14)(c) of the 1999 Constitution, as amended, as well as relevant provisions of the Electoral Act 2026.At the centre of the case is Section 137(1)(j), which provides that a person shall not be qualified for election as President if he has presented a forged certificate to INEC.Atiku, the presidential candididate of the African Democratic Congress and the party are asking the court to determine whether Tinubu should be disqualified from the 2027 presidential election over the allegation that he submitted a forged NYSC certificate in connection with his presidential candidacy.According to Atiku’s affidavit, the NYSC discharge certificate allegedly submitted to INEC bears the name “Tinubu Bola Adekunle”, rather than the President’s name, “Bola Ahmed Tinubu.”The plaintiffs further allege that the certificate was not obtained by Tinubu and that the same document was submitted in connection with the 2027 presidential election.The allegations have not been judicially established, and the court is now being asked to determine the authenticity and legal implications of the disputed document.Atiku also wants INEC compelled to produce Tinubu’s Form CF001 submitted in connection with the 2023 and 2027 presidential elections.The former vice president said he had previously sought certified true copies of the relevant documents from INEC but had not received them before commencing the action.Explaining his decision to personally appear at the court registry, Atiku said the case was too important to be handled casually.“I came here personally because the issues before the court go to the heart of our Constitution and the integrity of the Office of President.“I have therefore put my name, my signature and my oath behind the facts we are presenting to the court. Now it is President Tinubu’s turn to answer them,” he said.Atiku said the case was not intended to be determined through political arguments or social media exchanges, but through evidence presented before the judiciary.“We are not asking Nigerians to decide this matter on social media, and we are not asking INEC to become a court.“We are asking the institution holding the records to produce them and the judiciary to examine the evidence and pronounce on it,” the statement read in part.The ADC presidential candidate also questioned whether the names appearing on the disputed certificate could legitimately be attributed to Tinubu.“If the certificate belongs to Bola Ahmed Tinubu, let that be established before the court. If ‘Tinubu Bola Adekunle’ and ‘Bola Ahmed Tinubu’ are one and the same person for the purpose of that certificate, let the evidence establish it,” he added.The suit also challenges provisions of the Electoral Act 2026 which Atiku and the ADC contend restrict the ability of candidates or political parties to challenge the qualification of presidential candidates at the pre-election stage.
They further argue that the legislation cannot prevent the enforcement of constitutional provisions concerning presidential qualification.Their position is that where an Act of the National Assembly conflicts with the Constitution, the Constitution must prevail.“This case therefore raises a fundamental question for our democracy.“Can an Act of the National Assembly be used as a shield against an express provision of the Constitution? Can we write into ordinary legislation an escape route from a constitutional standard applicable to everyone seeking the presidency? Our position is that the Constitution remains supreme,” he argued.The plaintiffs are consequently asking the Federal High Court to determine whether the statutory restrictions complained of can prevent them from invoking Section 137(1)(j) of the Constitution.Among the reliefs sought is an order disqualifying Tinubu and the APC from participating in the 2027 presidential election if the allegations against them are established.Atiku argued that the issue of certificate authenticity should be subject to the same standard applicable to ordinary Nigerians.“The presidency is not an immunity certificate against constitutional scrutiny,” he said.He also called on INEC to demonstrate its neutrality by producing the relevant electoral records.“INEC is holding the documents. The court has the jurisdiction to examine the issues. President Tinubu has the opportunity to defend himself. That is the constitutional process, and nobody should be afraid of it,” Atiku said.He added that Nigerians should know the eligibility of presidential candidates before voting.“The 2027 election must begin with clarity about the qualification of those seeking the presidency. Nigerians should not be asked to vote first and investigate later,” he further saidCounsel to the plaintiffs, Edwin Inegedu, SAN, and Joseph Onu Silas, expressed confidence in the case.Silas said the legal team had reviewed the relevant law and presented its arguments before the court, adding that they were prepared to respond to the defendants’ case once they were served.“We are confident that justice will prevail. This case presents an important opportunity to further develop Nigeria’s electoral jurisprudence,” he said.The legal challenge adds another potentially significant dispute to the political contest ahead of the 2027 presidential election, with Atiku seeking to place Tinubu’s qualification and the handling of his electoral records directly before the judiciary.The case will now put the spotlight on the disputed NYSC document, INEC’s custody of the relevant nomination records, and the constitutional limits of legislation governing pre-election challenges.Atiku said the case was ultimately about equal application of the law.“Nobody is above the Constitution, not Atiku Abubakar, not Bola Tinubu, and certainly not the President of the Federal Republic of Nigeria,” the statement added.
Headline
A chieftain of the African Democratic Congress (ADC) and lawyer, Kalu Kalu, has petitioned the European Union Commission against President Bola Tinubu over alleged certificate forgery and violation of Nigeria’s constitutional order.
Submitting the petition in Brussels on Friday, Kalu accused Tinubu of presenting forged academic credentials to the Independent National Electoral Commission (INEC) ahead of the 2027 general elections.
He further alleged that the president failed to disclose his primary and secondary school history, in breach of Section 137 of the 1999 Constitution.
Kalu stated:
“President Bola Tinubu has suspended the constitutional order in Nigeria because of his forged academic credentials submitted to INEC for the 2027 general elections. Section 137 clearly says that if you present a false certificate to INEC, you are not qualified to run.”
He argued that Tinubu’s alleged actions amounted to subversion of Nigeria’s constitutional provisions, claiming the president had imposed himself on the country by capturing political power.
The petition comes amid growing controversy over Tinubu’s academic records, with opposition figures insisting that the matter undermines Nigeria’s democratic process.
The MainPower Electricity Distribution Limited (MEDL) has called for sustained partnership and support of customers and residents to improve electricity service delivery.
The Managing Director of MainPower, Dr Ernest Mupwaya, made the appeal on Friday in an opening address at a two-day Customers’ Engagement and On-the-Spot Complaint Resolutions Exercise in Nsukka, Enugu State.
Represented by the the Chief Commercial Officer, Mr Ikenna Akabogu, the managing director said that the engagement was part of the
company’s strategy to regularly interface with customers.
Mupwaya said that the engagement was meant to keep customers abreast of developments in its operations, listen to their concerns and obtain feedback on its service delivery.
According to him, electricity distribution is ultimately about the people and businesses the company serves.
He said, “As part of our Business Transformation Plan (BTP), MainPower has made a deliberate decision to engage our customers every quarter, either physically or through online platforms.
“We do not want to engage customers only when there is a complaint or crisis. Regular dialogue must become part of the way we do business.
“The objective of the engagement is to hear first-hand your concerns and expectations, provide an onsite one-stop shop for resolving lingering issues, and update you on our plans for improving electricity supply and service delivery.”
The MainPower boss said that the engagement would build a stronger relationship between the company and its customers through communication, mutual accountability, trust and measurable improvements in service delivery
He said the company had a responsibility to provide reliable electricity supply, accurate billing and responsive customer service, while customers also had a responsibility to pay their electricity bills promptly.
Mupwaya explained that revenue generated from electricity consumption enables the company to maintain transformers, replace damaged equipment and invest in improving power supply.
“The company’s ambition is to build a customer-focused, professionally managed and technology-driven organisation, with strategic priorities that include improving supply reliability, accelerating metering, strengthening the distribution network, improving customer service, reducing losses and deploying technology.”
On metering, Mupwaya said MainPower was targeting 100 per cent metering of its customers by 2027, stressing the company’s desired to ensure that every customer had an appropriate meter and pays only for electricity actually consumed.
In his remarks, the Chief Technical Officer, Mr Chimezie Chukwu, highlighted some of the company’s initiatives aimed at improving the quality and reliability of electricity supply to customers.
Chukwu disclosed plans for the installation of an additional 15MVA power transformer to boost supply and support the industrialisation of Nsukka and its general area.
He stressed on the Quick Response Team (QRT), introduced by the company to facilitate the prompt resolution of faults.
He urged customers to take advantage of the initiative by contacting the dedicated line or the company’s call centre whenever they experience supply-related challenges so they can be tracked and monitored.
The Head of Health, Safety and Environment, Dr. Francis Iwu, sensitised customers on unsafe acts and conditions prevalent within the electricity network, emphasising the need for residents to prioritise safety.
Iwu expressed concern over what he described as the increasing violation of power-line rights of way in Nsukka, warning that the practice posed serious risks to residents.
The Abia State University, Uturu, has placed an Economics lecturer, Prof. Nnamdi Nwaeze, on immediate suspension over comments he made about the earnings of university professors.
Nwaeze, a lecturer in the Department of Economics, Faculty of Economics and Management Sciences, reportedly made the remarks in posts published on his Facebook account.
In the posts, he alleged that some professors at the university take home less than N400,000 monthly.
He also compared the earnings of the academics with those of commercial tricycle operators, popularly known as Keke riders, claiming that some riders could earn more cumulatively than university professors.
The university authorities described the lecturer’s social media comments as damaging to the interests of the institution.
The suspension was announced in a statement issued by the university’s Public Relations Officer and Deputy Registrar, Chijioke Nwogu.
Management also disclosed that it had constituted a panel to investigate the allegations and examine the circumstances surrounding the lecturer’s statements.
The outcome of the investigation is expected to determine the university’s next course of action.
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