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DMO makes case for improved revenue, less borrowing

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The Debt Management Office has commended President Bola Tinubu for his economic focus on improved expenditure as a way of reducing public debt levels.

The Director-General of the DMO, Patience Oniha, said this on Friday in Abuja.

Oniha cited the removal of petrol subsidy and the unification of rates in the Foreign Exchange market, as steps capable of boosting revenue and reducing new borrowing.

She called for increased investment in infrastructure as a key to economic growth and development, adding that Public-Private Partnership was a more viable option for infrastructure development.

NAN reports that the DMO recently released the Market Access Country-Debt Sustainability Analysis (MAC-DSA) for 2022.

MAC-DSA is a template used to analyse debt levels to determine future debt sustainability.

The DMO stated that the analysis of the results of the 2022 MAC-DSA showed that the Total Public Debt-to-GDP ratio, was projected to increase to 37.1 per cent in 2023 relative to 23.4 per cent as of September 2022.

It said that the proposed increment was due to the inclusion of the N8.80 trillion in new borrowings for the year 2023, and the Ways and Means Advances at the Central Bank of Nigeria of over N23 trillion.

It also listed an estimated issuance of promissory notes of N2.87 trillion in the debt stock under the baseline scenario.

“The Country’s debt stock remains sustainable under these criteria.

“But the borrowing space has been reduced when compared to the Nigeria’s self-imposed debt limit of 40 per cent set in the Medium-Term Debt Management Strategy 2020-2023.

“On the other hand, the debt service-to-Revenue ratio at 73.5 per cent in 2023 exceeds the recommended threshold of 50 per cent due to low revenue, which means that there is a need to significantly increase government revenue.

“Under the alternative scenario, the total public Debt-to-GDP ratio at 45.4 per cent in 2023 exceeds Nigeria’s self-imposed debt limit of 40 per cent” it said.

It said that the debt service-to-revenue ratio also exceeded the recommended threshold of 50 per cent.

As part of its recommendations based on the MAC-DSA, the DMO called for moderation in new borrowings.

“The Baseline analysis projects total public Debt-to-GDP ratio at 37.1 per cent for 2023, indicating a borrowing space of 2.9 per cent (equivalent of about N14.66 trillion) when compared to the self-imposed limit of 40 per cent.

“But it is recommended that this should not be used as a basis for higher level of borrowing as was the case in the 2023 Budget.

“This is because the outcome of the Shock Scenario, which is more realistic in the circumstances, exceeded the self-imposed limit,” it said.

It added that the projected Federal Government of Nigeria (FGN) Debt Service-to-Revenue ratio at 73.5 per cent for 2023 is high and a threat to debt sustainability.

According to the DMO, it means that the revenue profile cannot support higher levels of borrowing.

“Attaining a sustainable FGN Debt Service-to-Revenue ratio would require an increase of FGN revenue from N10.49 trillion projected in 2023 budget to about N15.5 trillion,” it said.

With respect to the expansion of the fiscal deficit, the DMO said that there was a need to strictly adhere to the provisions of extant legislation on government borrowing.

It specifically called for adherence to the Fiscal Responsibility Act 2007 and the Central Bank of Nigeria Act, 2007 as it relates to Ways and Means Advances, in order to moderate the growth rate of public debt.

It also emphasised the need to prioritise revenue generation.

“There is urgent need to pay more attention to revenue generation by implementing far-reaching revenue mobilisation initiatives and reforms including the Strategic Revenue Growth Initiatives and all its pillars.

“This is with a view to raising the country’s tax revenue to GDP ratio from about seven per cent (one of the lowest in the world) to that of its peers.

“Government should encourage the private sector to fund infrastructural projects through the PPP schemes and take out capital projects in the budget that are being funded from borrowing to reduce the budget deficit and borrowing.

“Government can also reduce borrowing through privatisation and sale of government assets,” the DMO said.

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FG Clarifies Renaming of Murtala Muhammed Expressway

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Minister Of Information
– FG denies renaming Murtala Muhammed Expressway after Wole Soyinka
– New road inaugurated by President Tinubu named Arterial Road N20
– Murtala Muhammed Expressway remains unchanged

The Federal Government has dispelled rumors that the Murtala Muhammed Expressway in Abuja was renamed Wole Soyinka Way.

The government clarified that the renaming of the expressway was never considered by the current administration.

Instead, a new road was inaugurated by President Bola Tinubu on June 4, 2024, which was named Arterial Road N20.

This new road connects the Outer Northern Expressway to the Northern Parkway and was named after Prof. Wole Soyinka.

The confusion arose from a proposal by the FCT Minister, Nyesom Wike, during the inauguration, which was approved by President Tinubu. ”

The government emphasized that the Murtala Muhammed Expressway remains unchanged, honoring the legacy of the former Head of State, Gen. Murtala Ramat Muhammed.

Therefore, the Arterial Road N20 is named after Prof Soyinka.

The Murtala Muhammed Expressway remains unchanged, the government stressed.

 

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Leading with Love: Governor’s Father’s Day Message

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Lagos State Governor
– Governor highlights importance of fatherhood and leadership
– Emphasis on responsibility, love, and sacrifice for family and community
– Commitment to building a stronger, more caring community

As Father’s Day celebrations unfolded, Lagos Governor, Mr. Sanwo-Olu, shared a heartfelt message emphasizing the significance of fatherhood and leadership.

He noted that fatherhood is about responsibility, love, and sacrifice, quoting, “The same dedication I bring to my family, I bring to serving Lagos.”

The Governor’s words resonated with Lagos residents, who praised his commitment to building a stronger, more caring community.

Mr. Sanwo-Olu’s message also highlighted the importance of love and principles in guiding daily actions, both at home and in public service. He encouraged Lagos residents to uphold these values.

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