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Nigeria named among nations with high debt risk

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The World Bank has listed Nigeria, among nine other countries as nations with high-debt risk exposure.

In a financial statement for the International Development Association (IDA) released on Monday, the World Bank pegged Nigeria at number five with a $11.7b IDA debt stock.

“As of June 30, 2021, the ten countries with the highest exposures accounted for 66% of IDA’s total exposure.

“IDA’s largest exposure to a single borrowing country, India, was $22 billion as of June 30, 2021. Monitoring these exposures relative to the SBL, requires consideration of the repayment profiles of existing loans, as well as disbursement profiles and projected new loans and guarantees”, the document revealed.

India tops the list with an IDA debt stock of $22b. Bangladesh – with $18.1b – is second and followed by Pakistan ($16.4b), and Vietnam with $14.1b.

Ethiopia, Kenya, Tanzania, Ghana and Uganda complete the top 10 list in that order.

“IDA faces two types of credit risk: country credit risk and counterparty credit risk,” the World Bank further explained.

“Country credit risk is the risk of loss due to a country not meeting its contractual obligations, and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations. IDA is exposed to commercial as well as noncommercial counterparty credit risk.”

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As of September 2020, Nigeria had taken a $31.98b worth of loans from the World Bank Group, International Monetary Fund (IMF), African Development Bank (AfDB), according to the Debt Management Office (DMO).

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National Issues

Senate Urges Tinubu to Champion LG Autonomy

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In a bid to address mounting challenges including insecurity, rural-urban migration, decaying infrastructure, and widespread unemployment, the Senate has called upon President Bola Tinubu to spearhead advocacy efforts for the full autonomy of local governments across Nigeria.

The upper chamber emphasised the urgency of the matter, highlighting the need for concerted efforts to mitigate the prevailing issues.

It urged the president to initiate a comprehensive national dialogue involving key stakeholders such as governors, state legislators, local government officials, civil society organisations, and community leaders.

The aim is to devise a strategic roadmap towards achieving full autonomy for local governments.

Lawmakers, echoing widespread sentiments, underscored the critical nature of reforming the local government system, which they described as the most abused.

They emphasised the necessity of amending the 1999 constitution to facilitate the desired independence.

Senate Minority Leader, Senator Abba Moro, lamented the prevalence of caretaker committees in over 17 states, which, he argued, has led to administrative gridlock within the local government setup.

Moro stressed the imperative of launching thorough investigations into systemic abuses to ensure accountability.

Adding his voice to the discourse, Senator Ifeanyi Ubah of Anambra South revealed alarming statistics regarding local government elections in his state.

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He disclosed that Anambra has not conducted such elections in the past 18 years, citing the non-implementation of the 1999 framework as a major hindrance to local government autonomy.

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National Issues

Senate approves death sentence for drug traffickers

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The Nigerian Senate has approved the death sentence as a penalty for drug traffickers in the country.

The historic decision came as the Senate passed the 2024 NDLEA Act (Amendment) Bill through its third reading.

The proposal gained traction on Thursday as the Senate delved into a meticulous clause-by-clause examination of the report presented by Senator Tahir Munguno, Chairman of the Committees on Judiciary, Human Rights & Legal Matters, and Drugs & Narcotics National Drug Law Enforcement Agency (NDLEA) Act (Amendment) Bill, 2024.

During the review of the penalty provisions aimed at bolstering the agency’s operations, Senator Peter Nwebonyi, the Senate Chief Whip, proposed an amendment to elevate the punishment for drug traffickers from a life sentence to death under clause 11.

Initially met with dissenting voices, the proposal faced a moment of contention during the voting process. Despite an initial indication of disapproval, a subsequent vote favoured the adoption of the amendment, prompting a heated reaction from some lawmakers.

Senator Adams Oshiomhole was among those who voiced dissatisfaction with what he deemed a rushed consideration and passage of the amended clause.

However, the Deputy Senate President rebuffed attempts to reverse the ruling, citing procedural grounds.

In a parallel effort, the Senate also embarked on a comprehensive review of the salaries, allowances, and fringe benefits of judicial office holders in Nigeria.

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The move, aimed at combating bribery and corruption while safeguarding the judiciary’s independence, saw the executive bill seeking to prescribe remuneration levels for judicial office holders at both federal and state levels advance to the second reading.

While the bill garnered unanimous support, calls were made for a broader review of salaries and remuneration across various sectors in light of prevailing economic challenges.

Consequently, the bill was referred to the Committee on Judiciary, Human Rights, and Legal Matters for further scrutiny, with a mandate to report back within four weeks.

 

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16 Governors Back State Police Amid Security Concerns

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In response to the escalating security challenges plaguing Nigeria, no fewer than 16 state governors have thrown their weight behind the establishment of state police forces.

This development was disclosed by the National Economic Council (NEC) during its 140th meeting, chaired by Vice President Kashim Shettima, which took place virtually on Thursday.

Minister of Budget and Economic Planning, Atiku Bagudu, who briefed State House Correspondents after the meeting, revealed that out of the 36 states, 20 governors and the Federal Capital Territory (FCT) were yet to submit their positions on the matter, though he did not specify which states were among them.

The governors advocating for state police also pushed for a comprehensive review of the Nigerian Constitution to accommodate this crucial reform. Their move underscores the urgency and gravity of the security situation across the nation.

Similarly, the NEC received an abridged report from the ad-hoc committee on Crude Oil Theft Prevention and Control. This committee, headed by Governor Hope Uzodinma of Imo State, highlighted the areas of oil leakages within the industry and identified instances of infractions.

Governor Uzodinma’s committee stressed the imperative of political will to drive the necessary changes and reforms needed to combat crude oil theft effectively.

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