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Just in: Tinubu’s govt exceeds borrowing target as new debt jumps to N12.62tn

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The Federal Government exceeded its 2024 borrowing limit by N4.79 trillion after a wider-than-projected budget deficit forced it to raise significantly more financing than originally planned, according to the Budget Office of the Federation.

According to the latest Fourth Quarter and Consolidated Budget Implementation Report for 2024, the Federal Government’s new borrowings rose to N12.62 trillion, exceeding the budgeted N7.83 trillion by N4.79 trillion, or 61.2 percent.

The higher borrowing requirement followed a substantial revenue shortfall, which pushed the fiscal deficit to N13.51tn, well above the approved deficit of N9.18tn.

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The report showed that aggregate federal government revenue stood at N20.98 trillion, compared with the budget estimate of N25.88 trillion, representing a shortfall of N4.90 trillion.

Total expenditure, however, amounted to N34.49tn, only N561.29bn below the approved estimate of N35.06tn, indicating that the wider fiscal gap was driven primarily by weaker revenue rather than higher spending.

The report read, “The revenue and expenditure outturn of the federal government resulted in a fiscal deficit of N13.51 trillion in the 2024 fiscal year. This was N4.34 tn (47.33 percent) above the projected budget deficit estimate for the year.”

It added that the deficit also exceeded the N10.55tn recorded in 2023, showing the increasing pressure on the country’s public finances.

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An analysis of the government’s financing profile showed that domestic borrowing remained exactly on target at N6.06tn, but higher foreign borrowing and budget support significantly increased overall borrowings.

Foreign borrowing rose from the budgeted N1.77tn to N3.37tn, representing an increase of N1.60tn above target.

Also, the federal government received N3.19 trillion in budget support, despite making no provision for such financing in the 2024 budget. The source of the budget support, which was classified as new borrowing, was not disclosed.

Together, domestic borrowing, foreign borrowing, and budget support brought total new borrowings to N12.62 trillion, exceeding the approved borrowing program by N4.79 trillion.

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An analysis of the Budget Office report showed that new borrowings financed about 36 percent of the Federal Government’s 2024 budget, highlighting the country’s continued dependence on debt to fund public expenditure.

 

Separate from the new borrowings, the report showed that multilateral and bilateral project-tied loans amounted to N1.98tn, compared with the budget estimate of N1.05tn, representing a positive variance of N929.45bn.

The report also showed that expected privatization proceeds of N298.49 billion did not materialize, as no revenue was realized from that source during the fiscal year.

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According to the report, the fiscal deficit “was financed through multilateral/bilateral project-tied loans of N1.98 trillion, domestic borrowing of N6.06 trillion, foreign borrowing of N3.37 trillion, and budget support of N3.19 trillion in the period under review.”

 

The report attributed the wider financing gap largely to revenue underperformance.

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It stated that total federal government revenue stood at N20.98 trillion, representing an increase of N8.50 trillion, or 68.11 percent, over the N12.48 trillion generated in 2023. However, revenue remained N4.89 trillion, or 18.92 percent, below the annual budget target.

It stated, “Total revenue inflow of the federal government stood at N20.98 trillion at the end of December 2024. This represents an N8.50 tn (68.11 percent) increase when compared to N12.48 tn that was reported at the end of 2023, but N4.89 tn (18.92 percent) lower than the 2024 annual budget estimate.”

Oil revenue remained the biggest source of weakness. Gross oil revenue amounted to N15.07tn, falling N4.93tn below the budget estimate of N19.99tn.

The report explained that international crude oil prices averaged $74.65 per barrel during the fourth quarter, below the budget benchmark of $77.96 per barrel. Average daily crude oil production also stood at 1.54 million barrels per day, well below the budget assumption of 1.78 million barrels per day.

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Despite the weak oil performance, non-oil revenue exceeded expectations. The report showed that gross non-oil revenue reached N16.09 trillion, surpassing the annual estimate of N10.81 trillion by N5.29 trillion, or 48.91 percent.

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Many feared killed as Boko Haram insurgents crush ISWAP in fierce Lake Chad battle

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A fresh clash between rival terrorist groups, Jama’atu Ahlis Sunna Lidda’awati wal-Jihad, JAS, and the Islamic State West Africa Province, ISWAP, has reportedly left dozens of fighters dead in parts of the Lake Chad Islands, raising renewed security concerns across Nigeria’s North-East.

The development was reported by security analyst Zagazola Makama.

According to the report, the fighting erupted around Mangari and Tumbun Allura after both factions engaged in a fierce battle over control of strategic locations within the Lake Chad basin.

Makama reported that JAS fighters gained the upper hand during the confrontation, allegedly killing dozens of ISWAP fighters before seizing two boats belonging to the rival group and retreating to their stronghold at Kurnawa.

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The report noted that the boats are considered critical assets because they are used to transport fighters, weapons, food supplies and other logistics across the Lake Chad waterways.

“The reported seizure of the boats is considered significant, as watercraft remain a critical means of transportation for fighters, weapons, food supplies and other logistics across the difficult terrain of the Lake Chad waterways,” the report stated.

According to intelligence sources quoted in the report, troops deployed in Mallam Fatori, Baga, Cross Kauwa, Kukawa and other communities around the Lake Chad axis have been placed on heightened alert amid fears that fleeing ISWAP fighters could disperse into nearby areas.

Makama added that security assessments warned the confrontation could increase the risk of isolated attacks, improvised explosive device, IED, ambushes and retaliatory assaults as surviving fighters attempt to regroup.

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The report further stated that military authorities are considering intensified offensive operations, including increased patrols and enhanced intelligence, surveillance and reconnaissance activities, to prevent fleeing insurgents from reorganising.

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PFIPC Probe: Head of Civil Service finally admits due diligence failed, accepts responsibility

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The Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, has confirmed that due diligence was not thoroughly carried out in the process that led to the recognition of the purported Presidential Foreign Intervention Promotion Council.

She accepted responsibility for the lapse, saying her office relied on documents that appeared authentic without subjecting them to sufficient verification.
Walson-Jack made the admission while appearing before the House of Representatives ad hoc committee investigating the alleged operation of the purported council.

She told lawmakers that her office had no reason to doubt the documents at the time because they bore the State House logo and what appeared to be a familiar signature.
However, the HoSF said subsequent comparisons with genuine State House correspondence, backed by police forensic findings, confirmed that the signatures were different.

She, however, assured the committee that her office would review its internal verification procedures to make them more robust and fraud-proof.

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Meanwhile, the Inspector-General of Police, Tunji Disu, has told the committee that the self-acclaimed Director-General of the purported council, Mr. Adeniyi Adeyemi, could not appear before the lawmakers due to a subsisting court order.

Disu, who was represented by Deputy Commissioner of Police Olufemi Akinola, said Adeyemi could only appear upon an order of a court of competent jurisdiction.

Following the submission, the committee adjourned further sitting on the matter until next week.

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Police nab father-in-law of widow being harassed 8 days after her husband’s d*ath

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The Lagos State Domestic and Sexu@l V!olence Agency (DSVA) has reacted to the viral report of a 28-year-old widow simply identified as Tosin who is allegedly being harassed and intimidated by her in-laws eight days after her husband passed away.

In a statement released on Wednesday, July 29, the agency said it successfully established contact with the lady, who alleged that she had been subjected to threats to her life, physical ass@ult, and intimidation following the recent death of her husband. She further informed the Agency that the matter had already been reported to the Owutu Police Division.

The statement added that preliminary feedback from the Police confirms that the alleged perpetrator who, according to Harrison Gwamnishu, is the father-in-law, has been arrested and is currently in custody, while investigations continue.

The agency says the Lagos State Government remains committed to ensuring the safety and protection of the survivor and her children, while working closely with relevant stakeholders to ensure that justice is served in accordance with the law.

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To report cases of Domestic and Sexual Violence in Lagos State, please call 0-8000-333-333 or send a DM via our official social media platforms @lagosdsva.

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