Despite generating $1tn in 40 years, Nigeria's debt rose to $91.46bn — Agbakoba – Newstrends
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Despite generating $1tn in 40 years, Nigeria’s debt rose to $91.46bn — Agbakoba

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6 months ago

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Dr. Olisa Agbakoba

Despite generating $1tn in 40 years, Nigeria’s debt rose to $91.46bn — Agbakoba

Human rights activist and senior lawyer, Dr. Olisa Agbakoba, SAN, yesterday, said Nigeria’s public debt rose to $91.46 billion (N121.67 trillion), despite its ability to generate $1 trillion in 40 years.

Agbakoba identified the alleged exclusion of Nigerians from key value chains, weak enforcement of local content laws, incorporation of foreign agreements, tax avoidance and corruption as possible reasons for the development.

He also called for the implementation of new measures, including the increase of Nigerians’ participation in legal services, shipping, banking, insurance, drilling, oil field services and engineering within the oil and gas industry.

In his presentation, titled ”The Paradox of Nigeria’s Oil and Gas Industry: A Policy Paper”, at an engagement with the media in Lagos, Agbakoba, said: “Over the past 40 years, the cumulative revenue from oil and gas has exceeded $1 trillion, an amount that should have been sufficient to transform the nation’s economy and infrastructure.

“Yet, Nigeria consistently resorts to borrowing, with the total public debt standing at N121.67 trillion ($91.46 billion) as of March 31, 2024, according to the Debt Management Office, DMO.

“There are 36 value chains related to crude oil exploration, with at least seven crucial ones largely excluding Nigerian participation: Legal, shipping, banking, insurance, drilling, oil field services, engineering and construction.

“Over $1 billion worth of legal work is lost to foreign firms annually due to a perception of superior expertise and international experience.

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“Nigerian shipping companies are not engaged to ship crude oil products due to the absence of a legal framework for developing a national fleet of vessels, leading to significant loss of potential revenue and employment opportunities.

“Funds from crude oil production are often domiciled in foreign banks, sometimes held for months before remittance to the Central Bank of Nigeria, depriving Nigerian banks of substantial business and the economy of potential multiplier effects.

“The Nigerian insurance industry plays a very insignificant and limited role in the oil and gas Industry.

”No major Nigerian insurance underwriters cover risks for the over 25,000 foreign vessels in Nigerian cabotage waters or the over 1,000 oil rigs in Nigerian waters, representing a massive loss of premium income for the Nigerian insurance sector.““Nigerian companies are often excluded from major drilling contracts, with these lucrative opportunities primarily going to foreign firms.

“The oil field services sector, which includes activities such as seismic surveys, well completion, and production optimization, is dominated by international companies, limiting opportunities for Nigerian businesses.

“Large-scale engineering and construction projects in the oil and gas sector are frequently awarded to foreign companies, despite the potential for local capacity building and job creation if Nigerian firms were more involved.

“Despite the existence of laws like the Coastal and Inland Shipping (Cabotage) Act 2003, Nigerian Oil and Gas Industry Content Development Act, Cabotage Act, and Merchant Shipping Act, Nigerian participation in key industries remains limited.

“Incorporation of foreign agreements often excludes Nigerian laws and designates adjudication forums outside Nigeria, contradicting local content policies.

“The complexity of these contracts often puts Nigerian entities at a disadvantage due to limited expertise in international oil and gas law.

“The use of foreign legal frameworks has sometimes resulted in unfavorable outcomes for Nigeria in international arbitrations.

“The current structure heavily favors IOCs, resulting in a significant portion of revenues leaving the country.

“IOCs often have more bargaining power in negotiations with the government due to their technical expertise and financial resources.

“The dominance of IOCs has led to a lack of technology transfer and skill development among local companies.”

He said: “Oil rig companies have formed a cartel for tax avoidance, with NIMASA confirming they do not collect tax from oil rigs. This represents a massive loss of potential government revenue.

“The revenue attributable from oil rigs is estimated at N3 trillion yearly, approximately 15% of the national budget. The loss of this revenue significantly impacts the government’s ability to fund development projects and public services. The practice of tax avoidance by these companies creates an uneven playing field and discourages compliant companies.”

Despite generating $1tn in 40 years, Nigeria’s debt rose to $91.46bn — Agbakoba

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Tinubu not telling Nigerians the truth, says Sule Lamido

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4 hours ago

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December 29, 2024

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President Bola Ahmed Tinubu

Tinubu not telling Nigerians the truth, says Sule Lamido

President Bola Tinubu has been accused of not being forthright about the true state of Nigeria under his administration.

Former Jigawa State Governor and senior Peoples Democratic Party (PDP) member, Sule Lamido, made the accusation while speaking on the BBC Hausa programme Gane Mini Hanya.

Lamido criticized both Tinubu and former President Muhammadu Buhari for what he described as a lack of transparency in governance.

“Buhari’s and Tinubu’s governments are not being transparent with Nigerians unlike during the time when PDP was in power where everything was transparent and open to all Nigerians,” Lamido said.

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He accused the two administrations of relying on propaganda rather than providing citizens with accurate information.

Lamido also expressed concerns over President Tinubu’s recent loan requests, questioning the logic behind them. “If Nigerians are being told the truth then there is nothing wrong with that, but how would you budget N30tn, generate N50tn and then request loan when you have a surplus of N20tn,” he said, referencing last year’s budget.

He described the situation as “reckless” and “selfish,” adding, “This recklessness and clear-cut selfishness is not done anywhere in the world, but yet you find (some) Nigerians supporting it. Visit social media and see how APC is being criticised, being referred to as calamity, yet you find some protecting it.”

Tinubu not telling Nigerians the truth, says Sule Lamido

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Nigeria Customs Service begins 2025 recruitment [How to apply]

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2 days ago

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December 27, 2024

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Nigeria Customs Service begins 2025 recruitment [How to apply]

The Nigeria Customs Service (NCS) has announced the commencement of its recruitment exercise, assuring Nigerians that the process is entirely free and fair.

The agency has cautioned the public to be vigilant against scammers who may attempt to exploit unsuspecting applicants during the recruitment period.

Applications are invited for positions in the Superintendent, Inspector, and Customs Assistant cadres as part of the Service’s plan to recruit 3,927 officers in 2025.

This initiative is aimed at enhancing trade facilitation and supporting Nigeria’s economic recovery efforts.

“Our recruitment is entirely free and fair. At no stage do we charge fees. Anyone requesting payment is a scammer,” the agency emphasized, urging applicants to be wary of fraudulent schemes.

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The NCS outlined eligibility criteria, stating that applicants must be Nigerian citizens by birth, possess a valid National Identification Number (NIN), and have no criminal record or ongoing investigations.

Academic qualifications for the three cadres are as follows:

Superintendent Cadre: A university degree or Higher National Diploma (HND) along with an NYSC discharge or exemption certificate.

Inspectorate Cadre: A National Diploma (ND) or Nigeria Certificate in Education (NCE) from an accredited institution.

Customs Assistant Cadre: At least an O’Level certificate (WAEC or NECO).

In addition to these qualifications, the NCS stressed that all applicants must be physically and mentally fit, providing evidence of medical fitness from a recognized government hospital.

The application process opens on 27 December 2024 and will close on 2 January 2025. Interested candidates can apply via the official recruitment portal at https://recruitment.customs.gov.ng.

The NCS reiterated its commitment to a transparent recruitment process and encouraged eligible Nigerians to take advantage of this opportunity.

 

Nigeria Customs Service begins 2025 recruitment [How to apply]

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Tinubu to critics: I won’t reduce my cabinet size

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5 days ago

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December 24, 2024

By

President Bola Ahmed Tinubu

Tinubu to critics: I won’t reduce my cabinet size

President Bola Tinubu on Monday unequivocally responded to critics who described his cabinet as “bloated” by saying he is unprepared to reduce the size of his 48-man cabinet.

“I am not ready to shrink” the size of my cabinet, Tinubu said during a media chat at his Bourdillon residence in the highbrow Ikoyi area of Lagos State.

“I am not prepared to bring down the size of my cabinet,” the former Lagos governor said, arguing that “efficiency” has been at the core of his selection of ministers.

The president also said he has no regret removing the petrol subsidy in May 2023, saying Nigeria cannot continue to be Father Christmas to neighbouring countries.

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“I don’t have any regrets whatsoever in removing petrol subsidy. We are spending our future, we were just deceiving ourselves, that reform was necessary,” he told reporters.

Tinubu appointed 48 ministers in August 2023, three months after his inauguration. The Senate immediately screened and confirmed the ministers. One of the ministers, Betta Edu, was suspended in January while another, Simon Lalong, moved to the Senate.

There were calls for the President to reshuffle his cabinet as many Nigerians have not been impressed by the performance of some of the ministers, especially in the face of unprecedented inflation, excruciating economic situation and rising insecurity.

In October 2024, Tinubu re-assigned 10 ministers to new ministerial portfolios and appointed seven new ministers for Senate confirmation. He also sacked five of his ministers but critics insist that the President’s cabinet remains large, especially with the creation of a Livestock Ministry with a minister.

 

Tinubu to critics: I won’t reduce my cabinet size

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