The report that the Federal Government of Nigeria borrowed N1.46tn from the Central Bank of Nigeria through Ways and Means Advances in August 2022 is one of the trending stories in Nigerian newspapers on Monday.
The Punch reports that the Federal Government borrowed N1.46tn from the Central Bank of Nigeria through Ways and Means Advances in August 2022.
The total FG’s borrowing from CBN rose from N20.61tn in July 2022 to N22.07tn in August 2022.
According to data from the CBN, the Federal Government borrowed a total N4.61tn from the apex bank between January and August.
The N22.07tn owed the apex bank by the Federal Government is not part of the country’s total public debt stock, which stood at N42.84tn as of June 2022, according to the Debt Management Office.
The public debt stock only includes the debts of the Federal Government of Nigeria, the 36 state governments, and the Federal Capital Territory.
Ways and Means Advances is a loan facility through which the CBN finances the shortfalls in the government’s budget.
However, the CBN has said on its website that the Federal Government’s borrowing from it through the Ways and Means Advances could have adverse effects on the bank’s monetary policy to the detriment of domestic prices and exchange rates.
The newspaper says that Nigerians spent $609.5m on foreign education between January and August 2022.
According to the report, the figure is contained in the data obtained from the Central Bank of Nigeria, calculated based on the information provided on the amount spent on educational services under the sectoral utilisation for transactions valid for foreign exchange.
In January 2022, the apex bank noted that a total of $60,202,730.84 was spent on foreign education, while noting that $69.9m was spent in February 2022.
In March 2022, there was a significant increase as the bank stated that $87.26m was spent.
In April, there was a little reduction as a total of $78.62m was recorded by the apex bank.
The figure for May 2022 was stated as $82.70m.
Further analysis revealed that in June 2022, the apex bank released $84.90m, while a total of $61.99m was released in July 2022.
A slight increase was recorded in August 2022 when a total of $84.01 million was released.
The PUNCH reports that Nigerians have continued to troop out in their numbers in pursuit of foreign academic qualifications.
The Punch also reports that there indications that gas prices will further rise and Nigerians may pay more as marketers have hinted that the high exchange rate of dollar to naira is having a negative impact on importation.
The National Operations Controller, the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, in a chat with The PUNCH on Sunday, said independent marketers sourced dollars for importation from the black market, hence, gas price would continue to increase until naira strengthened at the exchange market.
“Our members, who still sell gas, bought 20, 000 metric tonnes at around N11 million last month, but now, the price has jumped to N12.3 million per 20, 000 metric tones,” he said.
He noted that gas consumers stood the risk of further price hike as long as dollar continued to strengthen.
Apart from low gas supplies at the international market majorly due to the Russian/Ukraine war, The PUNCH also learnt that gas production from the Nigerian Liquefied Natural Gas Ltd, NLNG has plummeted.
According to sources close to the matter, the drop in output was majorly due to the high-leveled theft as well as oil and gas pipeline vandalism which had left NLNG operating at 60 per cent capacity.
The source also cited “feed gas constraint and high maintenance activities” as part of the causes.
Output and export from NLNG’s six-train Bonny plant had dropped to 16.8 million tonnes in 2021, from 20.7 million tonnes in 2020 and 2019.
The NLNG was said to have lost almost $7bn revenue so far in 2022 due to gas supply constraints, according to the company’s General Manager, Production, Adeleye Falade, who spoke at the 45th Nigeria International Conference and Exhibition 2022.
The Guardian says that the British government has emphasised the need for the Federal Government to fix fundamental political and economic issues affecting businesses in the country to retain foreign investments and attract more.
The British High Commissioner to Nigeria, Catriona Laing, disclosed this during the British Business Group (BBG) Nigeria’s 5th Decade Heritage Night Celebration.
The event was held at the British Deputy High Commissioner’s residence, Ikoyi, Lagos, at the weekend.
Laing identified multiple exchange rates and lack of public infrastructure, among others, as major challenges bedeviling businesses in the country.
Noting that complex customs issues at the borders are major problems that need to be fixed, Laing said Nigeria possesses three advantages: large market; amazing set of natural resources; and talented, dynamic and creative people.
These, according to her, are essential for a strong and vibrant economy.
The Deputy High Commissioner, Ben Llewellyn-Jones, who mentioned non-tariff barriers as another of Nigeria’s challenges, said the British government would, from 2023, commence a tariff-free scheme for the country. According to him, this will greatly solidify bilateral relationship between the two countries.
Llewellyn-Jones said: “From next year, we’ll introduce the tariff-free scheme, which will reduce significantly the number of tariffs that exists for products that are being exported from Nigeria.
“And so, we’re talking to necessary ministries about the opportunity. What it will mean is that there will be fewer barriers to exporting to the United Kingdom.
“And what it will also hopefully do, I think, is stimulate some changes in terms of the speed with which goods can leave Nigeria.”
The Chair of BBG, Nigeria, Dr. Onyerinma Ama, revealed that the group was formed five decades ago by the then High Commissioner as a way of bringing British business leaders together.
She said the group was set up to promote British businesses to the highest standards.
The newspaper reports that the Niger Delta oil and gas host communities have called on the Group Managing Director of Nigerian National Petroleum Company (NNPC) Limited, Mr. Melee Kyari, to stop oil theft, name and prosecute those behind the menace or resign.
The communities lamented that increasing oil theft had again thrown the nation into a pitiable condition, reflecting high corruption index.
A statement signed, yesterday, by the Chairman, Board of Trustees of Community Development Communities of Niger Delta Oil and Gas Producing Areas, Joseph Ambakederimo, said the exposition of the four-kilometre-long oil pipe theft was enough for Kyari to have resigned his position or be sacked by the NNPC Board.
He said: “We need more and compelling disclosures from these persons, who have, overnight, discovered this illegal pipeline because mobilising resources and equipment and materials to execute this project is not achieved in one day. People in the environs and officials of the IOCs and Security services that are scattered all over the rivers and creeks want to now absolve themselves”.
Ambakaderimo said in the statement that the promise of the attainment of three million barrels of crude oil per day by Mele Kyari had become a mirage, adding that what Nigeria presently produces is less than one million barrels per day, which is far less than what it produced when Kyari assumed office.
“The Direct Sale-Direct Purchase (DSDP) scheme initiated by him has become a cesspit of corruption. We do not know how many barrels of crude oil is shipped out for refining and what volume of refined products are brought back into the country, who monitors and checks if the country is getting the commensurate amount of products and how many refined products are shipped back, and what other by-products is derivable from the refining process of the crude being shipped out and at what cost to the NNPC,” he said.
GIK/APA