FG spends 97% of five-month revenue on debt servicing – Newstrends
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FG spends 97% of five-month revenue on debt servicing

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4 years ago

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The Federal Government has spent N1.8tn of N1.84tn revenue it generated for the five months (January-May 2021), on debt servicing.
This has thus indicated that the nation’s debt-to-revenue ratio is 97.8 per cent for the period under review.
This means that for every N100 revenue generated, N97 was expended on debt servicing, leaving the government with a meagre amount to spend on infrastructure — a pointer to gaps in revenue generation and high government spending.
Minister of Finance, Budget and National Planning, Zainab Ahmed, stated this while giving a presentation on the 2021 budget implementation, on Thursday.
She said the FG’s share of oil revenues for the five months was N289.61bn, representing a 50 per cent performance.
Giving the breakdown, non-oil tax revenues totalled N618.76tn, company income tax (CIT) and value added tax collections were ahead of the budget targets with N290.90bn and N123.85bn respectively.
“Customs collections was N204.0 billion (86% of target). Other revenues amounted to N762.70 billion, of which Independent revenues was N487.01 billion,” she said.
On the expenditure side, Ahmed said a total of N4.86 trillion was spent in the five months down to May — this excludes government owned enterprises and project-tied expenditures.
“Of the expenditure, N1.80 trillion was for debt service (37% of FGN expenditures), N1.50 trillion for personnel cost, including Pensions (31% of FGN revenues),” she added.
Ahmed noted that as of May, N973.13 billion had been released for capital expenditure.
She said the gross oil and gas revenue for 2021 was projected at N5.19 trillion and as of May, N1.49 trillion was realised out of the prorated sum of N2.16 trillion — this represents 69 percent performance.
“Oil and gas deductions were N194.31 billion (or 45.8%) more than the budget. This is mainly attributable to petroleum subsidy costs which was not provided for in the 2021 budget,” she said.
The minister also said, “After netting out deductions (including 13% derivation), net oil and gas revenue inflows to the Federation Account amounted to N872.16 billion. This is N864.20 billion or 49.8% less than the projection as of May.”
Ahmed said the amount available for distribution from the Federation Account during the period was N2.78 trillion
“The Federal Government received N998.57 billion, while the States and Local Governments received N506.59 billion and N390.48 billion respectively from the Main Pool Account.
“Federal, state and local governments received N132.70 billion, N442.33 billion and N309.63 billion respectively from the VAT Pool Account.”
She also announced that key parameters as well as other macroeconomic projections driving the medium-term revenue and expenditure framework had been revised in line with the emergent realities.
Inflation projection for 2021 was raised to 15 per cent from 11.95 in the 2021 budget.

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Aviation workers threaten nationwide airports shutdown over Customs officer assault

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14 hours ago

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March 25, 2025

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Aviation workers threaten nationwide airports shutdown over Customs officer assault

Aviation unions have announced plans to shut down airports across Nigeria starting March 31 in protest against the failure to remove a customs officer who allegedly assaulted the Director of Aviation Security at the Federal Airports Authority of Nigeria (FAAN).

In a joint statement signed by Ocheme Aba (NUATE), Frances Akinjole (ATSSSAN), and Abdul Rasaq Saidu (ANAP), the unions condemned the repeated physical assaults on FAAN staff, vowing not to tolerate such incidents any longer.

The unions also called on the government to urgently reduce the number of customs officers operating within the aviation sector, aligning with global best practices. They warned that if their demands are not met, they will proceed with the nationwide shutdown, potentially disrupting air travel and operations.

The statement reads: “Considering the enormity and frequency of physical and psychological assault on the staff and management personnel of FAAN, of which there is no end in sight, we are compelled to inform the management of the unwavering determination of our unions to cause the establishment of a clear framework of mutual respect among FAAN staff and the security agencies operating at the airports.

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“Consequential sanctions are in place which guarantee the safety and human rights of FAAN staff. We shall direct all the workers to withdraw from the airports with effect from March 31, 2025, pending when such protocols are established.

“The recent assault on no less a personality than the Director of Aviation Security of FAAN is one too many, which leaves a taste too bitter to swallow. It is our sincere hope that our demand in the above respect is well met to avoid the industrial conflagration that will ensue in the absence of acceptable remedial actions.”

In response, Abdullahi Maiwada, the spokesperson for Customs, stated in a recent release that the disagreement between FAAN officials and officers of the Nigeria Customs Service (NCS) stemmed from a miscommunication over equipment movement and seating arrangements.

 

Aviation workers threaten nationwide airports shutdown over Customs officer assault

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SEC announces stricter measures to protect investors

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2 days ago

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March 24, 2025

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Director-General of SEC, Dr. Emomotimi Agama

SEC announces stricter measures to protect investors

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to protecting investors in Nigeria’s capital market by cracking down on fraudulent activities.

According to the Director-General of SEC, Dr. Emomotimi Agama, operators engaging in unscrupulous practices will face strict penalties as the Commission prioritizes safeguarding investor interests.

“So, clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has the intention to defraud Nigerians and to defraud anybody that is investing in this market,” Dr. Agama stated, emphasizing the Commission’s zero-tolerance policy. 

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Dr. Agama highlighted that the Investments and Securities Act (ISA) 2007 serves as the framework for securities regulation in Nigeria, ensuring that market operators adhere to high ethical standards.

He emphasized the importance of the “fit and proper person’s test,” which requires operators to meet specific regulatory criteria to maintain their licenses.

“This is because the very ethics of regulating or registering a securities market operator is in the principle of the fit and proper person’s test,” he explained.

“What you have been seeing most recently by the revocation of licenses, the suspension of operators and our follow-up to operators that are not registered with the SEC is only a tip of the iceberg as to what we intend to do this year.” 

Dr. Agama assured stakeholders that the SEC will leverage its regulatory powers under Nigerian law to deter fraudulent activities, noting, “We believe strongly that a protected investor is a powerful investor.”

 

SEC announces stricter measures to protect investors

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Bitcoin rises above $86,000 as crypto market gains momentum

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2 days ago

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March 24, 2025

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Bitcoin rises above $86,000 as crypto market gains momentum

Bitcoin and other leading cryptocurrencies extended their gains on Monday, buoyed by positive investor sentiment despite concerns over upcoming U.S. tariffs and key economic data releases later this week.

As of 7am WAT, Bitcoin rose 3.2% to $86,590, while Ethereum gained 2.3%, trading at $2,047.

The global cryptocurrency market capitalization increased by 2.94% in the past 24 hours, reaching $2.84 trillion.

Other notable performers included XRP, Cardano, and Dogecoin, which posted gains of 3%, 2%, and 3.8%, respectively. Chainlink, Avalanche, Hedera, and Stellar recorded growth ranging from 3% to 10%.

“Bitcoin is holding above $86,000, registering a 3% gain today. The key resistance level to watch is $86,700; a breakout could pave the way for $90,000,” said Vikram Subburaj, CEO of Giottus. 

Bitcoin’s market capitalization surged to $1.727 trillion, with dominance rising to 60.73%. Its 24-hour trading volume soared by 93% to $18.2 billion, while stablecoin transactions accounted for 94.74% of total crypto trading, reaching $57.58 billion, according to CoinMarketCap.

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Solana Outperforms Peers Amid Positive Market Sentiment 

Solana (SOL) emerged as a standout performer, surging over 7% in the past 24 hours to trade above $139.

The rally was fueled by reports suggesting that President Trump’s April 2 tariffs may be more targeted than initially feared, easing market concerns.

Weekend rumors indicated that the tariffs might include country exemptions and non-cumulative charges on metals, contributing to improved sentiment across global markets.

The Federal Reserve’s projections for two rate cuts this year further supported risk assets, with the central bank describing potential tariff-induced inflation as “transitory.”

BitMEX co-founder Arthur Hayes expressed optimism about Bitcoin’s trajectory, stating, “The Fed’s policy orientation could help Bitcoin achieve $110k before it retests $76.5k.” 

Solana’s momentum aligns with unprecedented acceptance rates. DeFiLlama reported that Solana’s total value locked (TVL) reached 54.87 million SOL, its highest level since June 2022. Ali Charts revealed that a record 11.09 million addresses now hold SOL, underscoring growing adoption.

 

Bitcoin rises above $86,000 as crypto market gains momentum

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