Business
FG Eyes $4.4Billion New Loans As Debt Hits N101Trillion
The Federal Government of Nigeria is seeking to acquire new loans worth $4.4 billion from the World Bank and the African Development Bank
This move comes as the country’s total debt stock has risen to N101 trillion
Here are some key points about Nigeria’s debt crisis:
Rising Debt Stock:
Nigeria’s total debt stock has risen to N101 trillion, with a significant portion of it being external debt
New Loans: The Federal Government is seeking to acquire new loans worth $4.4 billion from the World Bank and the African Development Bank
Debt Servicing: The cost of debt servicing has been rising, with a significant portion of the country’s revenue being spent on debt servicing
Concerns: There are concerns about the sustainability of Nigeria’s debt, with some experts warning that the country may be heading towards a debt crisis
-Economic Implications: The rising debt stock and debt servicing costs could have significant implications for Nigeria’s economy, including reduced spending on essential services and infrastructure
Key Statistics
– Total debt stock: N101 trillion
– External debt: $41.59 billion
– Domestic debt: N55.93 trillion
– Debt servicing cost: 75.92% of aggregate revenue (January-July 2023)
The National Industrial Court has granted an interim injunction restraining the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) from blocking Nigerian roads, or frustrating and shutting down the operations of Dangote refinery, MRS Oil Nigeria Limited, and MRS Oil and Gas Company Limited.
The court also restrained NUPENG and other drivers’ associations from embarking on an industrial action or compelling other truck drivers to join in its industrial action.
Emmanuel Subilim, the presiding judge, delivered the ruling on Wednesday following an ex parte motion filed by George Ibrahim, the refinery’s lawyer.
Ibrahim approached the court with an ex parte motion filed alongside the originating processes and a motion on notice, dated and filed September 15.
The lawyer prayed the court to direct NUPENG and its members to continue petroleum trucking services to the refinery, MRS, and the Nigerian public pending the determination of the motion on notice.
In an affidavit deposed by Ahmed Hashem, the group’s general manager, government and strategic relations of the refinery, the applicants provided an undertaking of damages to the organisation if the court ultimately rules against the restraining request.
After hearing Ibrahim, the judge held that “this court, having satisfied itself that there is a serious issue to be tried, that the balance of convenience tilts in favour of the Applicants (Dangote Refinery), that irreparable damage may be occasioned if the necessary orders are not granted, and that the Applicants have given an undertaking as to damages”.
He ruled that NUPENG ought to be restrained, granting interim injunction on the refinery’s request.
‘RESTRAINING ORDER TO LAST FOR SEVEN DAYS’
The judge noted that the restraining orders would remain in effect for seven days.
He further directed the applicants to serve the respondents with the motion on notice and all accompanying processes in the suit within seven days from the date of the order.
The judge also noted that the court’s authority to sit during the ongoing vacation would expire on September 23.
Consequently, he ordered that the case file be forwarded to the president of the National Industrial Court of Nigeria for reassignment to another judge, who will hear and determine the motion on notice as well as the substantive case on its merits.
On September 11, NUPENG placed its members on red alert for the resumption of its nationwide industrial action — two days after it suspended its strike action, in protest against Dangote refinery’s “anti-union practices”.
The union said it made the decision after Sayyu Dantata, the owner of Mrs Oil, allegedly instructed his truck drivers, who had been NUPENG-Petroleum Tanker Drivers (PTD) members for several years, to remove union stickers from their trucks.
NUPENG said the action led to an altercation between the truck drivers and its officials.
Former Labour Party presidential candidate, Mr Peter Obi, has criticised President Bola Tinubu over the non-payment of pensions and gratuities despite government’s claims of meeting its revenue target.
In a post on his X handle on Wednesday, Obi said it was unjust for the government to celebrate revenue growth while pensioners who had served the country were left to contemplate a nationwide protest over unpaid arrears.
He said senior citizens who gave their most productive years in service to the nation deserved to be paid their entitlements promptly.
Obi added that any excess revenue realised by the government should be channelled to settle obligations to pensioners in order to restore their dignity and assure workers that their labour was valued.
He said: “I read with deep concern that our pensioners, men and women who gave the most productive years of their lives in service to our country, have been pushed to contemplate a nationwide protest over unpaid arrears.
“Just last month, Mr. President announced that Nigeria had reached its revenue target. If that is true, then the moral question is simple: why are our senior citizens, who worked, served, and sacrificed, still owed their rightful pensions and gratuities? Revenue growth should first reflect in the lives of the people, especially those in difficult times.
“The excess revenue we celebrate today must not remain on paper. It must be directed to settle our obligations to pensioners, to restore their dignity, and to assure the working population that Nigeria values their labour and service. Anything less is unjust and unacceptable. Good Leadership and compassion are inseparable.”
Nigerian Senator and former Senate leader Ali Ndume has warned the Union of Petroleum and Natural Gas Workers, the Depot Petroleum Product Marketers Association of Nigeria and other stakeholders in the country’s downstream oil sector to stop demonising Aliko Dangote, President of Dangote Refinery.
Ndume made this statement on Wednesday amid the cold war between Dangote Refinery, NUPENG, DAPPMAN and other stakeholders.
The Nigerian senator described the NUPENG, DAPPMAN and Dangote face-off as “a poisonous media narrative to paint Dangote in a bad light in the eyes of Nigerians and the international community.”
He said, “Before Dangote took the risk to build his refinery, previous administrations had granted licences to many Nigerians. What did they do with it? Some of them only cashed in on the incentives of crude oil allocation.
“If my memory serves me right, licences were granted to 12 private operators as far back as 2002 to build refineries and reduce dependence on imported fuel.
“The second round of licences was done in 2007 by the then Department of Petroleum Resources, DPR, after revoking the first batch and granted nine new licences to private investors.
“Those parading themselves as fuel importers today didn’t seize the initiative to come together to build refineries.
“Again, during the Muhammadu Buhari administration, licences were granted to private investors to build modular refineries.
“How many of them actually scratched the surface, but they are ganging up to falsely accuse Dangote of monopolising the market?”
“It is wrong to talk about monopoly in a deregulated industry. There are no deliberate bottlenecks against anyone, and no player has been accorded special concession to the detriment of others.
“I urge NUPENG, PENGASSAN, and all concerned stakeholders to engage in constructive dialogue with Dangote rather than inciting division and undue sensationalism in the media. Our common goal should be to balance labour rights with the imperatives of national development and not put ordinary citizens at the receiving end of a needless power tussle”, he added.
Recall that NUPENG recently embarked on an industrial strike against Dangote Refinery’s anti-labour activities before it was suspended following the intervention of the Federal Government and the Department of State Security.
DAPPMAN also accused the Dangote Refinery of a plot to stifle competition.
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