FG borrows N3.8trn from CBN in 6 months, says new report

In the last six months of 2023, the Federal Government of Nigeria received an additional N3.8 trillion in what appeared to be a fresh Ways and Means borrowing, according to a provisional data published in the latest statistics bulletin for the fourth quarter of the year recently released by the Central Bank of Nigeria (CBN).

This is despite claims by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, that the President Bola Tinubu government had not borrowed money from the CBN.

The CBN’s provisional data showed that the total figure rose from N4.4 trillion at the end of June 2023, meaning that the cumulative Ways and Means balances due by the government grew to N8.2 trillion as at December 2023.

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Total Ways and Means balances as at May 2023 when the Tinubu administration took over was N26.95 trillion. However, the balances were securitised as included as part of the federal government’s domestic debt profile.

A breakdown of the data shows that the balance at the end of June 2023 was N4.36 trillion, indicating that the prior month balances may have been moved to the Debt Management Office.

However, from July 2023, the balances increase every month, first to N4.5 trillion in July, then N5.1 trillion in August, crossing the N5.1 trillion mark for the first time.

By September, the total was N6.4 trillion, representing the single largest additional borrowing for a month with about N1.3 trillion. It then climbed to N7.2 trillion in October before rising marginally to N7.6 trillion in November.

At the end of the year, in December, the total hit N8.21 trillion, suggesting that Ways and Means increased by 88 per cent in six months.

FG borrows N3.8trn from CBN in 6 months, says new report

GRA regeneration scheme: Alake endorses housing projects

The Alake and Paramount Ruler of Egbaland, Oba Adedotun Aremu Gbadebo has declared his support for the initiative of the Ogun State government to holistically transform the Government Reservation Areas (GRAs) across the state to bring back the faded glory.

Oba Gbadebo made this declaration when the management team of the Ogun State Ministry of Housing led by the Commissioner, Jamiu Akande Omoniyi, paid a courtesy visit to the Alake’s Palace, to intimate the Egba Traditional Council on GRA Regeneration Programme.

Alake, who expressed his delight about the project promised to rally Egba indigenes both home and in the diaspora to buy into the new scheme.

“I am very excited today because of the project you brought to me; you can count on my support. I just don’t support, but I realised the development that the project will bring to Egbaland. I’m sure with the location of the project, the housing units to be built will be over-subscribed”, the traditional ruler stated.

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The monarch, however, implored the Ogun State government to allocate the Third Phase of the Prince Court Estates in Kobape and Kemta Idi -Aba, Abeokuta, to the remaining successful applicants.

Addressing members of the Traditional Council members earlier, the Commissioner for Housing, Jamiu Akande Omoniyi, reeled out the successes recorded by the incumbent administration in the provision of affordable housing to the people of the state, saying the positive response received from people prompted the government to continue to build more for various categories.

He emphasised that the new GRA Regeneration Scheme is meant to create a modern, vibrant smart city.

“The programme is not merely about demolishing and reconstructing, it will bring a total transformation geared towards enhancing economic value of the state. Save for unforeseen circumstances, the project should be completed within 18 months.

“The project when commenced will also create employment benefits with the engagement of artisans within the host communities”, Omoniyi stated.

Responding respectively on behalf of the Egba Traditional Council, the duo of Asiwaju Onimoro and Onimoro of Egbaland, Chiefs Tokunbo Odebunmi and Adeniyi Akanni, appreciated the state government under the leadership of Governor Dapo Abiodun for taking the bull by the horn with the GRA Regeneration Scheme, advising the government to be transparent about the project.

GRA regeneration scheme: Alake endorses housing projects

Naira fall: Senator warns CBN against artificial measures

Senator Ned Nwoko, has advised the Federal Government and the Central Bank of Nigeria (CBN) against any measures that are capable of artificially forcing the Naira to gain value against dollar and other currencies.

Nwoko, who represents Delta North, gave the advice in a statement he personally signed and made available to the News Agency of Nigeria (NAN), in Abuja on Saturday.
He advised them to concentrate on tackling the main issues responsible for the Naira depreciation, saying there was no short-cut to success.

He said the quest for economic freedom and the strength of the nation’s currency was an ongoing journey.
Nwoko also said the continuous revisit of previously implemented policies and consideration of new ones were imperative.

He also said the value of a sovereign nation’s currency was the cornerstone of respect and collaboration among nations, while reiterating that Nigeria must stimulate Naira demand.

According to him, as a nation that exports crude oil and other commodities globally, it is imperative that all transactions on these items be conducted exclusively in Naira.

“This will incentivise buyers to seek out Naira, thereby driving its appreciation due to increased demand and scarcity.

“Moreover, the foreign reserve policy warrants reassessment. The practice of maintaining reserves in foreign jurisdictions, termed “foreign reserves,” is not only objectionable but also counterproductive to Nigeria’s economic sovereignty.

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“Unlike other nations like the United States, Britain, France, and Japan, which hold their reserves domestically, Nigeria’s adherence to this practice raises questions about its colonial legacy.

“If our early indigenous leaders acquiesced to this approach due to colonial influence, why should we perpetuate it? The primary rationale often cited to justify foreign reserves is trade balance maintenance“, Nwoko said.

According to him, this argument lacks merit when considering the limited number of traders involved in importing goods into Nigeria, which constitutes a negligible fraction of the nation’s population.

“Therefore, the notion that foreign reserves are indispensable for trade balance equilibrium falls short upon scrutiny”, he said.

The lawmaker who is a Solicitor, Supreme Court of England and Wales, there was the need to acknowledge that the recent appreciation of the Naira was not solely attributable to the CBN’s new measures.

“Rather, it can be attributed to the decline in refined oil imports following the production and distribution of refined petroleum from the local refinery – the Dangote refinery.

“Now envisage if other heavily consumed products were locally produced instead of imported. The success would be monumental and conspicuous,” he added.

In January, in a statement, he had preferred crucial measures to be adopted by the federal government CBN to combat dollarisation and stabilise the Naira.

Nwoko said that since the dissemination of that statement, various measures have been implemented to bolster the value of the Naira.

“However, the efficacy of these measures is yet to manifest fully, as the root cause of Naira devaluation remains unaddressed.

“Until we confront the underlying issues head-on, our efforts against dollarisation will be in vain,” he said.

Naira fall: Senator warns CBN against artificial measures