Deputy Governor of Edo State, Philip Shaibu, has been accused by the State House of Assembly of leaking government secrets and committing perjury.

The Assembly noted that the allegations against Shaibu were impeachable offences.

The lawmakers, represented by its Deputy Clerk, Joe Ohaifa, made the claim at the inaugurating sitting of the seven-man panel probing Shaibu.

The panel, headed by retired Justice S.A. Omonuwa, was raised by the Edo State Chief Judge, Justice Daniel Okungbowa, at the instance of the state Assembly, which on March 5 commenced impeachment proceedings against the deputy government.

The Assembly said the impeachment proceedings were based on a petition accusing Shaibu of perjury and leaking the government’s secrets.

The impeachment move is believed to be the latest development in the rift between Shaibu and his principal, Governor Godwin Obaseki.

Stating the Assembly case, the Deputy Clerk said Shaibu leaked the state’s secrets in his affidavit supporting an Abuja lawsuit.

He said Shaibu rendered documents relating to the State Executive Council’s meeting.

According to Ohaifa, Shaibu violated the Oath of Secrecy, which he took and acted contrary to the provisions of Schedule 7 of the 1999 Constitution.

After hearing the Assembly’s case, the panel adjourned until today (Thursday) for Shaibu to enter his defence.

Earlier at the proceedings, Shaibu’s lawyer, Prof. Oladoyin Awoyale (SAN), had excused himself from the hearing after the panel declined his application to suspend the proceedings.

The Cross River Government has said Governor Bassey Otu inherited an empty treasury from his predecessor, Benedict Ayade.

The Commissioner for Works and Infrastructure, Ankpo Edet, made this known on Wednesday during a press briefing in Calabar, the state capital.

He also revealed that the present government inherited poor infrastructure, adding that it has commenced some road rehabilitation across the state.

Edet said the Otu administration will not abandon any task started by the previous governments and has achieved significant progress in urban development.

He said: “The level of infrastructure decay we met on the ground was such that I was confused as a commissioner when I went around Calabar upon resumption.

“I am happy to announce that we have done a lot in rehabilitating most of these roads in spite of the Sen. Bassey Otu-led administration meeting empty treasury.

“Just like we had in Calabar municipality and Calabar south, so were there several unmotorable roads in Cross River north and Cross River central.

“These projects are being carried out with taxpayers’ money and so, we will work on them and also not abandon any of those we are working on now.

“You will see the serious work on the parliamentary extension road. We are using this road to be our super highway since the one embarked upon by the immediate past administration didn’t see the light of the day.”

[NaijaNews]

According to data from the Debt Management Office (DMO), the total public debt in Nigeria is an estimated N97.34 trillion ($108.23 billion) as of December 2023.

This figure was an increase of 146% from N39.56 trillion ($95.77 billion) at the end of the previous year.  

The major reason for the significant increase is the addition of CBN’s N20 trillion ($48 billion) in Ways and Means lending to the government and about 60% devaluation of naira.   

The federal and state governments owe a combination of domestic and foreign debts. Domestic debt is made up of FGN securities, treasury bills, and more recently, CBN’s Ways and Means. On the foreign scene,

Nigeria owes countries like China, France, Germany and Japan (bilateral debts) and multilateral institutions like the World Bank, International Monetary Fund (IMF), Islamic Development Bank (IsDB) and the African Development bank (AfDB).  

 Domestic Debt 

The federal and state government mostly borrows money by issuing bonds to the domestic market in the local currency, the naira. According to the data from the DMO, Nigeria’s total domestic debt is about N59.12 trillion out of which the states owe N5.86 trillion.  The biggest sources of domestic debt as of December 2023 are FGN securities, making a total of N59.12 trillion, which make up 40% of Nigeria’s total debt.  

FGN Bonds N42.2 trillion (+169.5% YoY)  

• These are long term bonds issues by the federal government and mostly used to finance the country’s budget deficit.  
• Nigeria’s FGN Bonds increased 169.5% YoY mostly due to the addition of Ways and Means into the FGN Bonds.   
• FGN Bonds are traded on the FMDQ, Nigeria’s official market for trading government securities. It is also traded on the NGX, Nigeria premier markets for stocks and bonds.  
• Among the holders of Nigeria’s FGN Bonds include institutional investors, retail investors, foreign portfolio investors and domestic investors in general.  

Nigeria Treasury Bills N6.5 trillion (+47.5% YoY)  

• These are short term securities issued by the government via the central bank. 
• Treasury bills tenors are either 91 days, 182 days or 364 days attracting respective interest rates.  
• The data reveals Nigeria has a total of N6.5 trillion in Treasury Bills as of December 2023 up from N4.4 trillion recorded same period 2022.  
• Among the buyers of Nigeria’s Treasury bills are institutional investors, foreign portfolio investors and high net worth individuals.   

Promissory Notes N1.33 trillion (+150.8% YoY) 

• Nigeria’s issuance of Promissory Notes increased by 150.8% year-over-year, reaching N1.33 trillion, indicating a robust utilization of this financial instrument. 
• Nigerian government offer issue promissory notes to settle arrears, fund infrastructural projects and settle judgement debts. 
• This year-over-year jump also underscores the government’s reliance on these instruments to potentially ease liquidity constraints, implying that there may be an increasing number of contractors, pensioners, or other entities to whom the government owes money. 

FGN Sukuk Fund N1.09 trillion (+47.1% YoY) 

• FGN Sukuk Fund in Nigeria grows to N1.09 trillion, an increase of 47.1% compared to the previous year’s N742.56 billion.  
• Sukuk bonds are usually used to funding for infrastructure projects like roads and bridges in the country.  
• Funds raised by the DMO through the different Sukuks have been used to facilitate the construction and rehabilitation of over 4000 kilometers of roads and bridges in Nigeria. 

FGN Saving Bonds N39.18 billion (+42.4% YoY) 

• Nigeria’s FGN Saving Bonds rise to N39.18 billion, an increase of 42.4% increase year-over-year. 
• It reflects greater public investment in government-backed savings, and indicates confidence in federal savings instruments. 
• The DMO offers savings bonds monthly to interested investors. 

 Foreign Debt 

The latest data as of December 2024, confirms Nigeria’s total external debt balance is $42.5 billion (N38.22 trillion), with states owing $4.61 billion (N4.15 trillion)  

Islamic Development Bank $238.17 million (+70.01% YoY) 

• The Islamic Development Bank (IsDB) is a multilateral creditor. 
• It has significantly increased its lending to $238.17 million as of December 23, marking a substantial year-over-year surge of 70.10% from the previous $140 million. 
• This notable rise reflects the bank’s growing engagement and support for developmental projects within its member countries. 

Africa Growing Together Fund $23.35 million (+28.50% YoY) 

• Under the multilateral category, the Africa Growing Together Fund is managed by the African Development Bank (AfDB) 
• It saw a positive change as the fund’s contribution grew from $18.17 million to $23.35 million, an encouraging 28.50% increase year-over-year. 
• This uptick signals an expanded commitment to fostering sustainable growth on the continent.   

Exim Bank of China $5.17 billion (+20.30% YoY) 

• In the bilateral category, the Exim Bank of China continues to play a crucial role in financing development, with its loans rising to $5.17 billion, up by 20.30% from the previous year’s $4,293.63 million. 
• This increase underscores the strengthening financial relationship between China and its partner nations, with a focus on long-term investments in infrastructure and development. 
• Chinese loans have been used for critical infrastructures, especially in the transportation sectors. For instance, the loans have been used to fund a number of railway projects in Nigeria. 
• China is owed the highest with about about 86.7% of the total owed to countries.  

International Development Association $14.96 billion (+11.30% YoY) 

• The International Development Association (IDA) is a part of the World Bank Group. 
• Classified under multilateral debt, it has increased its financial support to $14.96 billion, marking an 11.30% increase from $13.45 billion the previous year. 
• The IDA’s consistent lending growth indicates sustained support for poverty reduction strategies and economic development programs. 

International Fund For Agricultural Development $277.4 million (+9.80% YoY) 

• The International Fund For Agricultural Development (IFAD), also a multilateral entity, has a lending increase to $277.4 million, a 9.80% rise from $252.74 million. 
• This increment demonstrates the IFAD’s ongoing commitment to agricultural development and rural poverty reduction, emphasizing the importance of the agricultural sector in driving economic progress and food security. 

What this means: Nigeria’s total public debt of about N97.34 trillion is about 42% of the country’s gross domestic product (GDP), which according to international standards is well within limits but above Nigeria’ self-imposed limit of 40%.  

• More importantly, Nigeria is largely exposed to debts dominated in naira, with about 61% of the debts in local currency.  
• This effectively means the Nigerian government has a moderate grasp and control over how it manages its domestic debts. It can, for example, be in an unlikely situation where it is unable to pay down local debts and when due, print more naira to meet this obligation.  
• About 39% of the total value of debts are in foreign currency. Most of the debts are also medium to long-term Eurobonds and owed to diverse creditors. The DMO recently noted that a significant portion (63.79%) of its external debt is derived from loans from multilateral and bilateral lenders. These loans are primarily concessional or semi-concessional, indicating efforts to manage the debt burden effectively.  
• While this is a manageable figure, it is more than Nigeria’s external reserves and is becoming expensive to service.  

Nigeria is not in any favorable position to take on more foreign debts at the current rates considering the state of government revenues and the devaluation of naira. However, to meet its large budget deficits, it is likely to keep borrowing, especially by issuing more FGN securities.  

[Nairametrics]

The average ‘Band A’ customer in Nigeria will now need as much as N170,000 for electricity per month, instead of the average of N50,000 that they were paying before now.

This follows the approval of a 240 per cent increase in the tariff of ‘Band A’ power customers from N66 per kilowatt hour (KwH) to N225/KwH starting from this month.

The Nigerian Electricity Regulatory Commission (NERC) yesterday approved an increase in the rate paid per Kwh of electricity from about N66 to N225 for the various distribution companies (DisCos) in the country.

Vice chairman of NERC, Musliu Oseni, speaking at a press briefing in Abuja on Wednesday, however, said the increase in tariff will only affect customers enjoying 20-hour power supply and above across the country. Other customers in Bands B, C, D and E who consume less than 20 hours of electricity per day are not affected by the increase.

NERC also stated that only a fraction of the over 3,000 DisCos’ feeders, that is fewer than 481 feeders, will be impacted,  and this represents 15 per cent of the over 12 million electricity customers captured in the Nigerian Electricity Supply Industry (NESI).

Oseni also revealed that NERC had also ordered that the majority of the feeders which did not previously meet the 20-hour supply threshold be downgraded to lower bands.

“We currently have over 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent of the feeders now qualifies as Band A.

“The commission, using technology, discovered that many of the feeders that the Electricity Distribution Companies currently brandish as Band A are not meeting the required service and as such the feeders were ordered to be downgraded immediately as a way of protecting consumers,” he said.

According to him, as part of enforcement mechanisms  to ensure that  areas affected by the review get the 20 hours supply,  DisCos have been mandated to set up rapid response teams in locations where the feeders are located.

“This is to ensure that the customers can have access to the DisCos. They have also been mandated to publish the contact of the rapid response team where the customers are located.

“Failure to meet the commitment for seven consecutive days, the feeder will be downgraded immediately to the service level the DisCo is able to provide electricity to the feeder,” he said.

Oseni said where a DisCo  failed to meet the commitment for two days, by the third day at 10am, the company must publish an explanation also via bulk SMS contacting the affected consumers on the feeder.

“They should explain why they could not meet the service for the two days and also submit the explanation to the commission,” he said.

LEADERSHIP reports that the Labour associations and the concerned public had advised the government not to remove electricity subsidy as canvassed by the International Monetary Fund (IMF).

In its recent report entitled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria,’ the IMF reiterated the importance of eliminating the subsidies to redirect resources towards more targeted and impactful social welfare programmes.

Amidst the prevailing cost-of-living crisis, the IMF proposed targeted social transfers to provide temporary assistance to the most vulnerable segments of the Nigerian population.

LEADERSHIP reported that the government may have concluded plans to hike electricity tariff to relieve pressure on fiscal spending. The federal government had now reduced electricity subsidies for 15 per cent of consumers to reduce its N3.3 trillion ($2.6 billion) cost, part of a series of reforms to ease pressure on public finances.

With the recent price hike, LEADERSHIP analysis indicates that an average Band ‘A’ consumer with the following appliances: one deep freezer, one fridge, three fans, two air conditioners, 15 bulbs, one pressing iron, one microwave oven and one electric kettle, who needed an average of N50,000 monthly to power his or her appliances before now, will now need N170,000 on the average to power his home, due to the new 240.9 per cent increase in tariff.

Also, the N50,000 electricity expenses, which could previously provide 757.57KwH or units, will now purchase only 222.2KwH or units.

Justifying this extra charges which will put further strain on the finances of many Nigerians, the NERC explained that these premium customers can now comfortably reduce or completely do away with their expenses on diesel and petrol generators as they will be enjoying quality power supply of 20 hours or more.

Oseni also gave assurance that where the stipulated hours are not fulfilled by the DisCos, the customers will be downgraded to lower bands.

Reacting to the new tariff regime, Labour groups and electricity consumers have frowned at the decision of the federal government to hike electricity tariffs for customers in Band A across the country.

This is even as Nigeria’s manufacturing sector is considering establishing its own power generation facility to cushion the effect of the new tariff announced by the federal government.

While the leadership of Nigeria Labour Congress (NLC) has warned the federal government against plunging Nigerians into further hardship amidst the current cost of living crisis, electricity consumers, especially Small and Medium Enterprises (SMEs) have said such increase in electricity tariffs will lead to higher operational costs, coupled with the fact that so many goods and services are already on the high side at the moment.

NLC said additional hike in electricity tariff despite the poor supply at this critical time will not be a good decision.

The union noted that, with Nigerians trying to survive the current economic realities, a good government ought to think of how to address the their immediate needs rather than embarking on an over 300 per cent hike in electricity tariff.

NLC acting deputy general secretary, Comrade Ismail Bello, in a chat with LEADERSHIP, reiterated the earlier call by Labour against privatisation of the sector.

He said, “What is happening now is reconfirmation of what we told the general public and federal government during the privatisation period – that privatisation was not the solution to the problem in the sector.

“During the clamour for the privatisation, we told the government the ills of privatisation but they went ahead against the wish of Labour. We then warned the government that privatisation without good services will have effects on the population.”

Comrade Bello called on the government to have a rethink on the hike as it will add additional burden on the already suffering citizens, and push more Nigerians under the poverty bar.

‘What Nigerians need most at this period is to address the current economic realities rather than pushing them into more hardship with further hike in electricity tariff,’ he said.

Speaking with LEADERSHIP yesterday, the immediate past chairman of the Apapa branch of the Manufacturers Association of Nigeria (MAN), Frank Onyebu said that, already, manufacturers are incapacitated by irregular supply which makes in-country produced goods not competitive. He stated that the decision is ill-timed and insensitive given the prevailing economic situation in the country.

According to him, stakeholders were not properly carried along in the hurried decision, and the manufacturers’ association may have no option but to fast-track the establishment of its power generation facilities.

According to him, since the government is not considering the plight of the informal sector, they will take strategic steps to support their businesses.

He recalled that the International Monetary Fund (IMF) had been pushing for the hike which had met resistance from Nigerians but lamented the government had chosen to move along in that direction.

Onyebu, who is also the managing director of Universal Luggage Limited, said corruption is endemic in the management of electricity and petroleum industries.

Government, he said, should rather begin to think of how to boost food production and deploy infrastructure to support economic activities, noting that there is nothing to signify that money realised from petrol subsidy removal has been well utilised whereas the cost of running government is rising daily.

In his reaction, the convener of PowerUp Nigeria, Adetayo Adegbemle, said the increment is a long time coming.

“We have spoken so much about the federal government not being able to continue to carry the huge subsidy on electricity, and this is them acknowledging everything we have been telling them,” he said.

According to Adegbemle, the hike is not about helping the distribution companies, but it is about appropriate pricing for electricity.

He argued that this pricing is also along the whole value chain.

“You will recall that gas pricing also recently changed, so there’s no way the price of electricity will remain the same, especially with all macroeconomic indices having also increased.”

“We also need to understand that the power sector is mostly a private concern now, and it is no longer a government utility; so appropriate pricing is needed for us to see the growth of the industry,” he noted.

On adequate metering, he said the regulatory commission spoke about metering initiatives by the government, and at this point it is important that these metering initiatives are pushed through.

“We are also asking that institutional financing should be encouraged through regulations, maybe amending the MAP Regulations so that the huge metering gap can be closed up,” he added.

On his part, the chief executive officer (CEO) of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the power sector issue had become a major conundrum in the economy, stating that there is a major funding and liquidity crisis which is posing significant risks to investments in the electricity value chain.

“Costs across the chain have been rising as a result of the multiple macroeconomic headwinds. Meanwhile, the system is not generating the desired liquidity to match the escalating costs. Tariff review is thus an inevitability, but a 300 per cent increase in one fell swoop is difficult to justify,” he said.

He, however, expressed relief that the increase is not across board as only 15 per cent of electricity consumers are affected, targeting the segment with the highest ability to pay, which reflects some attributes of equity in pricing.

Dr Yusuf pointed out fundamental issues that need to be addressed in the electricity value chain.

“There are issues of technical and commercial losses which are yet to be addressed. These are inefficiency costs that consumers are compelled or expected to pay for as part of the cost recovery argument. And these costs are in billions of naira.

“There is also the exploitative practice of estimated billing. Millions of electricity consumers are yet to be metered,” he stated.

He noted that there is the problem of over centralisation of the power supply through the national grid model, saying there are capacity issues with some of the electricity distribution companies which contribute to the lapses in electricity delivery outcomes.

“The energy mix programme is yet to gain an impressive traction. It is important to fix these fundamental issues in the power sector. Fiscal policy measures should be immediately deployed to reduce costs across the entire electricity value chain,” he added.

A consumer, Sylvanus Okpara’ stated that for small and medium enterprises (SMEs), an increase in electricity tariffs will lead to higher operational costs coupled with the fact that prices of commodities are on the high side at the moment.

“This will have an adverse impact on their businesses, competitiveness and profitability, potentially leading to job cuts or reduced expansion opportunities,” he said.

He urged the government to ensure that vulnerable populations are not disproportionately affected, even as he decried the suddenness of government policies.

A project manager,  Adeniyi Julius, noted that the increment will affect low-income families who find themselves in the category of those that would be affected as they are already financially strained.

According to him, “Low-income families may find it challenging to cope with higher electricity bills. This could lead to decreased usage of electrical appliances, affecting their quality of life and productivity.”

He, however, said the social and political implications cannot be ruled out as Nigerians are going through a lot.

“Electricity is a basic necessity, and any perceived unfairness in tariff increases can lead to public discontent and protests,” he stressed.

Similarly, a resident of Gbagada, Lagos, Blessing Oladipo, said she was not in support of the increase in the electricity tariff.

She queried “Is it the light that is almost nonexistent they are increasing the amount per kilowatt? I don’t even know what they are trying to do.

“For hours and days, we could not see a blink of light. We use prepaid metres. Since the beginning of February, we have hardly seen light. Phones and other appliances will be off for hours without a power source. I don’t know, if you ask others their story may be different, but for me, that has been my experience, and I do not buy into it.”

Also, an Ogun State resident, Ola  Michael said increasing the electricity tariff is not a prudent decision at present.

“It would place undue strain on the populace given the current state of the economy. Furthermore, the inadequate lighting situation is unlikely to encourage compliance with any proposed price hike,” he said.

 [Leadership]