National Issues
Agu meets another money doubler.
THE above personification might leave many guessing that I intend waxing poetic about the famous prose which we were so conversant with during our salad days. While the Agu described in the popular Mastering English series might have been a fictitious character, his dream of an instantaneous accumulation of wealth is completely symptomatic of how desperate the average Nigerian could be.
When the famous Mavrodi Mondial Scheme popularly enthused as MMM burst its seams last month, I was sincerely yours, among the pessimists who saw its anticipated renaissance as nothing but a tall dream.
I wrote in a piece way back then that if opinions had been sought from a cross-section of participants probably moments before it ceded to the alleged heavy workload, many would have still described the money doubling scheme as God’s special manna in these hard times. The economy is in dire straits to say the least and the common man on the street could care less about hard lessons learnt from similar ponzi schemes in the past.
A former colleague of mine related how his hopes were salvaged through the ponzi scheme. According to his saccharine-filled narrative, his investments in MMM helped in offsetting his burgeoning debt profile. In a similar vein, a neighbour of mine revelled me with his new lease of life, courtesy of the fortunes accrued from MMM.
The more tantalising carrot was extended to members of the scheme at the beginning of December. The tagged ‘Christmas bonus’ ditched the thirty percent bonus by moving a notch higher to fifty percent. Did members feel the slightest foreboding at that juncture? I sincerely can’t tell. Enthusiasts kept defending that the scheme had remained resilient in the heat of so much bad-mouthing by the House of Assembly, the Central Bank of Nigeria and the Nigerian Deposit Insurance Corporation.
When the death knell was eventually tolled, it was stated that the number of those who wanted to get help were more than those who wanted to provide help. If this is anything to go by, one is then bound to wonder where the returns were actually sourced from in the first place? Was the scheme truly sustained by some cryptocurrencies or the same naira which members deposited into one another’s account? Guess your hunch is just as good as mine.
Nigerians of course, were privy to the fate that befell naïve South-Africans and Zimbabweans who swallowed the MMM bait, hook, line and sinker. It was a gamble many thought they could enjoy and go scot free. A few many who were supposed to know better sentimentally gave in to the point that it came as a relief in harsh times. As such, they equally rebuked Nigerian Legislators for witch-hunting those who kept the scheme afloat.
MMM members were still hesitant in admitting that the deed has been done. Accounts have only been temporarily frozen, they say. MMM promises to bounce back stronger and better come January 14. The site still allows people to provide help, etc. Now that operators of the scheme seem to be ready to live up to their billing, I am left with no other option than to have a hunk of my humble pie. Need I still express deep condolences to aggrieved members who licked their wounds silently sequel to the impromptu hiatus last month? MMM promises to come back stronger than it was before. An avid participant intimated me earlier today that he was received a verification code to activate his mavro account before the d-day. Good news you say uh!
Drifting away from this deja-vu, it is equally apposite to ask if the typical Nigerian would still be willing to stake a lump sum following the unexpected black-out witnessed last month. Has the last four weeks or thereabout suddenly turned the table in such a way now that the number of people wanting to provide help dwarfs the overwhelming horde in need of help? Will this money-churning scheme blaze through the odds which similar schemes of the past had fallen victim to? It is better I rest my case before the teeming audience sees me as an overnight Prophet of doom.
On a lighter note nonetheless, the anticipated defreezing of accounts is reminiscent of the moonlight tale involving Agu; the wretched washerman and the Money Doubler who claimed to have been sent by the Marine Goddess. Agu’s joy knew no bounds when the few pennies in his pocket were doubled.
Spurred by this windfall, Agu added his nest egg to the lump sum which a friend lent him and gave it to the Money Doubler. Following the rituals, the money was kept in a can and Agu was instructed to guard it jealously for the next two days before opening the lid. Agu did as instructed and when he eventually opened it, he was left dumbstruck, to behold white papers neatly cut into the size of currency notes. Agu ran back to the river bank where he had first met the Money Doubler but as they say, the rest is history.
By Kadiri Tolani
The Nigerian government spent a staggering $3.58 billion on servicing foreign debt within the first nine months of 2024, marking a significant 39.77% increase compared to the $2.56 billion expended over the same period in 2023.
This data, drawn from a recent report on international payment statistics by the Central Bank of Nigeria (CBN), reflects a concerning rise in the country’s foreign debt obligations amid depreciating currency values.
According to the report, the most substantial monthly debt servicing payment occurred in May 2024, totaling $854.37 million. This is a substantial 286.52% increase from May 2023’s $221.05 million.
Meanwhile, the highest monthly payment for 2023 was $641.7 million in July, underscoring the trend of Nigeria’s escalating debt costs.
Detailed analysis of monthly payments further illuminates the trend.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million, a significant rise from $112.35 million in January 2023. However, February saw a modest reduction of 1.84%, with costs decreasing from $288.54 million in 2023 to $283.22 million in 2024. March also recorded a decline of 31.04%, down to $276.17 million from $400.47 million the previous year.
Additional fluctuations in debt payments continued throughout the year, with June witnessing a slight decrease of 6.51% to $50.82 million from $54.36 million in 2023. July 2024 payments dropped by 15.48%, while August showed a 9.69% decline compared to 2023. September, however, reversed the trend with a 17.49% increase, highlighting persistent pressure on foreign debt obligations.
With the rise in exchange rates exacerbating these financial strains, Nigeria’s foreign debt servicing costs are projected to remain elevated.
The central bank’s data highlights how these obligations are stretching national resources as the naira’s devaluation continues to impact debt repayment in dollar terms.
Rising State Debt Levels Add Pressure
The federal government’s debt challenges are mirrored by state governments, whose collective debt rose to N11.47 trillion by June 30, 2024.
Despite allocations from the Federal Accounts Allocation Committee (FAAC) and internally generated revenue (IGR), states remain heavily reliant on federal transfers to meet budgetary demands.
According to the Debt Management Office (DMO), the debt burden for Nigeria’s 36 states and the Federal Capital Territory (FCT) rose by 14.57% from N10.01 trillion in December 2023.
In naira terms, debt rose by 73.46%, from N4.15 trillion to N7.2 trillion, primarily due to the naira’s depreciation from N899.39 to N1,470.19 per dollar within six months. External debt for states and the FCT also increased from $4.61 billion to $4.89 billion during this period.
Further data from BudgIT’s 2024 State of States report illustrates how reliant states are on federal support. The report revealed that 32 states depended on FAAC allocations for at least 55% of their revenue in 2023.
In fact, 14 states relied on FAAC for 70% or more of their revenue. This heavy dependence on federal transfers underscores the vulnerability of states to fluctuations in federal revenue, particularly those tied to oil prices.
The economic challenges facing both the federal and state governments are stark. The combination of mounting foreign debt, fluctuating exchange rates, and high reliance on federally distributed revenue suggests a need for fiscal reforms to bolster revenue generation and reduce vulnerability to external shocks.
With foreign debt obligations continuing to grow, the report emphasizes the urgency for Nigeria to address its debt sustainability to foster long-term economic stability.
Engr. Aderemi Oseni, representing Ibarapa East/Ido Federal Constituency of Oyo State in the House of Representatives, has called for a prompt investigation into the increasing occurrences of building collapses in major cities across Nigeria.
In a motion presented to the House on Wednesday, Oseni expressed deep concern over the alarming frequency of building collapses, emphasising the threat they pose to the lives and property of Nigerians.
The APC lawmaker, through a statement by his media aide, Idowu Ayodele, cited the recent collapse of a two-storey school building at Saint Academy in Busa Buji, Jos, Plateau State, on July 12, 2024. The tragic incident, which trapped 154 people and claimed 22 lives, is the latest in a series of similar disasters, raising serious concerns nationwide.
Oseni also referenced a report from The Punch newspaper, which revealed that Nigeria had recorded 135 building collapse incidents between 2022 and July 2024.
“This figure is alarming and unacceptable,” he stated, stressing the urgency of preventing further occurrences.
The Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), Oseni reminded the House that the Council for the Regulation of Engineering in Nigeria (COREN) and other relevant professional bodies are responsible for ensuring compliance with building standards and practices.
“Despite these regulatory frameworks, the recurring collapses suggest that enforcement is lacking. The loss of lives, properties, and resources is staggering, and this disturbing trend must be addressed immediately,” he remarked.
He proposed the formation of an Adhoc Committee to investigate the underlying causes of these collapses and recommend both immediate and long-term solutions.
Also, he urged the House Committee on Legislative Compliance to ensure swift implementation of any recommendations.
The House agreed to deliberate on the motion and is expected to present its findings and proposed actions within eight weeks.
The Vice-chairman of the Oyo Council of Obas and Chiefs, Oba Francis Olusola Alao, has expressed deep concern over the increasing involvement of religious leaders in material pursuits, accusing them of abandoning their spiritual duties in favour of wealth and influence.
Oba Alao, who is also the Olugbon of Orile Igbon, made this statement during a visit from the leadership of the Cherubim and Seraphim Church Movement “Ayo Ni O,” led by Baba Aladura Prophet Emmanuel Abiodun Alogbo, at his palace in Surulere Local Government on Thursday.
The monarch accused some religious leaders of sharing part of the blame for the moral and political crises that have engulfed the nation. According to him, spiritual leaders, once seen as the moral compass of society, have become compromised by corruption, aligning themselves with the very forces they should condemn.
Oba Alao was unapologetic in his criticism, stating, “Ninety-five percent of Nigerian leaders, both political and religious, are spiritually compromised.”
He argued that this moral decay among clerics has made it impossible for them to hold political leaders accountable or speak the truth to those in power, as their integrity has been eroded by their pursuit of material wealth.
“Carnality has taken over spirituality. Our religious leaders can no longer speak the truth to those in authority because their minds have been corrupted. Most of the so-called General Overseers (G.O.) are corrupt and perverted,” Oba Alao added.
He stressed that this shift towards wealth accumulation at the expense of spiritual values has greatly contributed to the country’s stagnation in development and social justice.
Olugbon urged both religious leaders and traditional rulers to reflect on their actions, reminding them that they would be held accountable for their stewardship, both in this world and the next.
“The prayers of sinners are an abomination before God, hence the need for our leaders to rethink,” he warned.
The monarch concluded by reiterating the transient nature of power and the importance of staying true to sacred duties, regardless of the temptation to indulge in worldly gains. “I am a traditional ruler. I don’t belong, and will never belong, to any occultic groups,” he emphasised, drawing a clear line between his position and the corrupt practices of some leaders.
In response to the Cherubim and Seraphim Church Movement’s request for collaboration on community development projects, Oba Alao assured them of his support.
“Your requests are aimed at the development of the Orile Igbon community. I am assuring you that necessary assistance will be provided in this regard.”
Earlier, Prophet Alogbo requested the monarch’s collaboration on a range of community development projects. These initiatives include the establishment of a women and youth empowerment center, clean drinking water initiatives, a bakery, animal production facilities, and farm produce processing.
Other proposals included a diagnostic and medical center, a full-size recreational sports facility, and a home care facility for the elderly.
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