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Nigeria’s public debt stock hits N42trn; NBS says Price of cooking gas increases 101%

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The Debt Management Office (DMO) said Nigeria’s total public debt stock, which was N41.60 trillion (100.07 billion dollars) in March rose to N42.84 trillion (103.31 billion dollars) by June.

According to a statement obtained from DMO’s website o Tuesday, the total debt represents the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 State Governments and the Federal Capital Territory (FCT).

Also read: DMO reviews issuance bond calendar, announces N720bn borrowing plan

It, however, said that while the foreign component of the debt remained at the same level of N16.61 trillion (39.96 billion dollars), the local component increased to N26.23 trillion (63.24 billion dollars).

The newsmen report that the local component of the country’s borrowings was N24,98 trillion (60.1billion dollars) as at March 30.

The DMO said that a larger percentage of the external debts were concessional and semi-concessional loans.

“Over 58 per cent of the external debt stock are concessional and semi-concessional loans.

“They were obtained from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank, and bilateral lenders including Germany, China, Japan, India and France.

“The total domestic debt stock increased from N24,98 trillion (60.1billion dollars) in March to N26.23 trillion (63.24 billion dollars) in June.

“This is due to new borrowings by the FGN to part-finance the deficit in the 2022 Appropriation (Repeal and Enactment) Act, as well as new borrowings by state governments and the FCT,” the DMO said.

It said that the total public Debt-to-GDP ratio remained within limits, at 23.06 per cent, while Debt-Service-to-Revenue was still high.

It added that the federal government was committed to increasing revenue so as to reduce the amount that went into debt servicing.

“The Debt-to-GDP as at June 30, was 23.06 per cent compared to the ratio of 23.27 as at March 30.

It remains within Nigeria’s self-imposed limit of 40 per cent.

“While the Federal Government continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, Debt Service-to-Revenue ratio remains high,” it said.

Meanwhile, the DMO is set to take its FGN Securities Awareness Programme to Yola on Wednesday and Umuahia on Sept. 29.

According to Patience Oniha, DMO’s Director-General, the programme is designed to sensitise Nigerians on the huge investment benefits in FGN securities, thereby boosting financial inclusion.

In the meantime, the average price of 5kg of cooking gas increased from N4,397.68 in July to N4,456.56 in August.

The assertion was made by the National Bureau of Statistics (NBS), in its Cooking Gas Price Watch issued on Tuesday in Abuja.

It noted that the price in August indicated a 1.34 per cent increase on a month-on-month basis from what was obtained in July.

“On a year-on-year basis, the August 2022 price was a 101.17 per cent increase over the price of N2,215.33 paid for the same volume of gas in August 2021,’’ it stated.

The report added that Taraba recorded the highest average price of N4,925.44, for 5kg cooking gas, followed by Adamawa where it cost N4,920 and Lagos State where it sold for N4,782.50.

It stated also that Katsina State recorded the lowest price of N4,020 in August, followed by Ogun and Yobe at N4,057.14 and N4,078.46, respectively.

Analysis by geo-political zones showed that the North-Central recorded the highest average retail price of N4,615.95 for 5kg cooking gas, followed by the North-East at N4,548.03.

The North-West recorded the lowest retail price at N4,285.51.

The NBS reported also that the average retail price of 12.5kg cooking gas increased to 9,899.34 in August 2022 from N9,824.07 in July, representing a 0.77 per cent month-on-month increase.

“On a year-on-year basis, the price rose by 119.26 per cent from N4,514.82 in August 2021,’’ it stated.

The report added that the highest retail price was recorded in Ebonyi at N11,225 for 12.5kg, followed by Cross River at N10,982.14 and Delta at N10,965.42.

The lowest average price was recorded in Katsina State at N8,150, followed by Yobe and Taraba at N8,212.63 and N8,886.30, respectively.

Similarly, kerosene price rose to N809.52 per litre in August, showing a 2.5 per cent increase over the N789.75 for which it was sold in July.

The report noted that on a year-on-year basis, the average retail price per litre of kerosene rose by 102.38 per cent from N400.01 recorded in August 2021

Further analysis showed that the highest average price per litre of kerosene in August 2022 was recorded in Imo at N1083.33, followed by Ekiti at N1,026.92 and Enugu State at N1,017.74.

The report showed that the lowest price was recorded in Nasarawa State at N625, followed by Rivers at N627.45 and Adamawa at N633.33.

Analysis by geo-political zones showed that the Southeast recorded the highest average retail price per litre at N953.88, followed by the Southwest with N910.85.

“The South-South recorded the lowest average price at N749.51,’’ it stated.

It added that the average retail price per gallon of kerosene in August was N2,947.65, showing an increase of 2.12 per cent from N2,886.41 in July 2022.

According to the report, the August 2022 price was a 122.4 per cent increase over the price of N1,325.39 paid in August 2021.

Analysis by states showed that Abuja paid the highest price of N4,050 per gallon of kerosene in August, followed by Abia where it sold at N3,825 and Enugu State at N3,574.52.

Zamfara recorded the lowest price at N2,280 for a gallon of kerosene followed by Lagos State and Benue where it sold at N2,526.32 and N2,566.67, respectively.

The NBS stated that analysis by geopolitical zones showed that the Southeast recorded the highest average retail price per gallon of kerosene at N3,276.78, followed by the Southwest at N3,073.27.

It added that the Northeast recorded the lowest average retail price at N2,687.63 per gallon.

 

 

Economy

Fuel Scarcity Will Soon Disappear, NMDPRA Tells Unbelieving Nigerians; Depot Managers Disagree 

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…Insist there is still serious supply gap***

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has assured Nigerians that the prevailing fuel crisis ravaging various parts of the country would soon disappear. His audience largely disbelieved him.

NMDPRA Coordinator in Delta, Mr Victor Ohwodiasa, gave the assurance when he led a team of the regulatory authority on an unscheduled inspection visit to some petroleum depots at Ifiekporo, on Thursday evening and Friday in Delta.

The Ifiekporo Community is in Warri South Local Government area of Delta.

Ohwodiasa said that a lot of vessels laden with Premium Motor Spirit (PMS) known as Petrol were already coming into the state.

He said the regulatory authority would ensure that the vessels discharge products as quickly as possible.

“We will ensure that the depots receiving these products lift them out to the end users.

“By the time we have all the depots wet with PMS and they are lifting regularly, the looming scarcity we are experiencing will disappear,” Ohwodiasa said.

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President-Muhammadu-Buhari

The agency’s coordinator said the essence of the visit was to ensure that depots with the products dispensed to licenced retail outlets, eliminate middlemen and also avoid diversion.

“Once we get our daily manifest, we send our men out to make sure that those trucks get to their actual locations.

“There might be one or two infractions; we have apprehended about two persons for product diversion and they were made to face the full wrath of the law.

“As a regulatory authority, saddled with the responsibility of regulating the Midstream and Downstream of the Oil and Gas sector in Nigeria, we will continue to do what we need to do.

“This is to ensure that the products are available and adequately and fairly distributed within Delta and neighbouring states,” he said.

Ohwodiasa said the NMDPRA would carry out intense routine surveillance, adding that it would sustain the tempo to ensure that the right things were done in the Midstream and Downstream sectors of the oil and gas industry.

He, however, urged people to stop panic buying, assuring that the Federal Government was doing everything possible to ensure the availability of petroleum products in the country, particularly during the Yuletide season and beyond.

Ohwodiasa added that NMDPRA would ensure that the products get to the consumers at the right price, quality and quantity.

Among the depots visited were: Matrix Energy Group, Pinnacle Oil and Gas Ltd. and AYM Shafa Ltd.

Speaking on behalf of Matrix Energy, Mr Francis Ibe, the Terminal Manager, Matrix Energy, said that the PMS stock level at the Warri Depot was 14 million litres on Thursday.

Ibe said as of the evening of Thursday, it had trucked out over four million litres.

“With what I am pushing out, I know it will not be enough. Before now on weekly basis, we were receiving 40 million litres of PMS, but at the moment, we barely received 40 million in two weeks. So you can see the difference.

“Forty million litres in one week as against receiving one vessel in two weeks cannot solve the problem. There is a serious supply gap,” Ibe said.

Also, Mr Luke Nnajieze, the Depot Manager, Pinnacle Oil and Gas, Warri Depot, said that the current stock level of the company in Warri as of Thursday morning was 3.1 million litres of Premium Motor Spirit (PMS).

Nnajieze added that the Automated Gasoline Oil (AGO) was 2.9 million litres. At the moment, we are out of stock of Dual Purpose Kerosene (DPK).

“On daily basis, we trucked 2.5 million litres to 3 million litres of PMS,” he said.

Nnajieze identified heavy vehicular gridlock as a major challenge confronting their business in the area, calling on the government to assist in expanding or fixing the bad access road.

He also called for the dredging of the Escravos Bar to allow bigger vessels to navigate and bring in petroleum products.

A respondent who spoke on condition of anonymity however said: “What I hate is telling innocent people deliberate lies. We all know supply is grossly inadequate; and yet, we keep hyping lame duck assurances!”, he said, adding that it was like the government, knowing that it was now on its last lap, has seemingly relaxed…!

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Economy

Oyo Govt efforts in agribusiness already yielding positive results- OYSADA DG

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Oyo Govt efforts in agribusiness already yielding positive results- OYSADA DG

…Fails to indicate how OYSADA positively tinkers with availability of agricultural products*** 

 The Director-General, Oyo State Agribusiness Development Agency (OYSADA), Dr. Debo Akande, on Friday stated that the state government efforts in agribusiness were already yielding positive results.

Akande made this known at Fasola Farm in Oyo while welcoming Mr. Ben Langat, the Managing Director, Friesland Campina WAMCO Nigeria PLC, who led other members of the company on a facility tour of the farm.

The Maritime First learned that Ben Langat’s visit may be connected to his company’s readiness to set up a milk collection centre through dairy livestock farming within the facility.

Akande, who is also the Executive Adviser to Gov. Seyi Makinde on Agribusiness, said that the state agribusiness venture had been thriving evidently through increment of internally generated revenue and jobs creation opportunities.

Addressing journalists shortly after the facility tour, Akande said: “We have ensured that our agricultural hubs are going to be completely private sector driven.

“One of the things that created problems for all of those farm settlements we had in the past was that they are public sector driven.

“And in so doing, we are attracting the investors that can run the hub.

“Fasola Farm was known for livestock farming for many years and the work we’ve been doing in terms of livestock has created impacts across the state.

“What we are doing now is to bring back the glory of the past, but in a different way, because our milk collection partner investors are known for our dairy and livestock.

“So, we will see a manifestation of a modern approach in livestock and dairy production within this particular facility that we have and to me, I think that is quite significant.”

Oyo State Logo

According to him, the state government is already generating revenue, because this farm is not given free to our milk investor company.

“They are paying leases on the land they are using; they have already paid and they will be paying annually for the next 20 years,” he said.

Akande said this was not limited only to the milk collection partner, but also to other investors in the hub.

“All of them are here on a lease, the government is going to generate a chunk of their lease at the first year.

“And also be generating lease payment for the next 20 years from all these private companies, that is part one of the revenue, ” he said.

The Director-General said the hub would generate taxes and employ people within the state, especially youths.

During the tour, beneficiaries of the Oyo State Youth Entrepreneurship In Agribusiness Project (YEAP), which had already cultivated up to 45 percent of the hundred hectares of land allocated to them, were also on ground.

Offering an insight, the Managing Director of Friesland Campina WAMCO Nigeria PLC, Ben Langat

said the company is in partnership with the Oyo State Government in developing an Agribusiness hub, which is very important to all the parties concerned.

“We are a dairy company that is ready to ensure that we produce quality dairy for Nigerians to consume every day.

“We are developing 300 hectares of land now, that was part of the land allocated to us.

“We have developed pasture, which is part of the process before we bring cows in; we built sheds where they will feed, also bunkers and boreholes as well as other things,” Langat said.

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Economy

IMPRUDENCE: Oyetola Left N76bn Salary, Pension Debts- Official

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IMPRUDENCE: Oyetola Left N76bn Salary, Pension Debts- Official

…Salary: N29,875,191,128.64; Pension Arrears: N45,375,237,693.40; Life Assurance Scheme: N554,644,028.97***

 Mrs. Bimpe Ogunlumade, Permanent Secretary, Ministry of Finance in Osun, says the state government has discovered salary and pension-related debts, amounting to over N76 billion, left by the immediate past Gov. Adegboyega Oyetola’s administration.

A statement by Malam Olawale Rasheed, the Spokesperson of Gov. Ademola Adeleke of Osun, calling attention to the former Governor’s imprudence on Thursday in Osogbo, highlighted that Ogunlumade made the revelations while briefing officials of the new administration on the state’s financial status.

According to Rasheed, the Osun Government has uncovered a monumental debt in salaries, pensions and insurance commitments incurred by the administration of Mr. Gboyega Oyetola, amounting to N76 billion.

“This revelation was made by the Permanent Secretary, Ministry of Finance, Mrs. Bimpe Ogunlumade, while briefing officials of the new administration on the financial status of the state on Thursday.

“The disclosure was contrary to the claim by the former governor that he left N14 billion in cash for the new government, among other bogus claims that have now been found to be an outright falsehood.

“The breakdown of the salaries and pension-related liabilities as disclosed by the Permanent Secretary are as follows:

“Salary: N29,875,191,128.64; Pension Arrears: N45,375,237,693.40; Group Life Assurance Scheme: N554,644,028.97, Total: N75,805,072,851.01.

“The public is hereby advised that this is not the total debt left by the past administration as briefings on other sources of liabilities continue tomorrow,” he said.

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