Credit to the government surged by over N11 trillion in the month of August 2024, as high interest rates make government securities more attractive to investors.

This is according to the latest money and credit stats data of the Central Bank of Nigeria (CBN).

The CBN data also shows that credit to the government accounts for 29.4% of N105.88 trillion net domestic credit in August as the government continues to rely more on local borrowing to fund its expenditures.

This was as the private sector experienced a slight decline in credit as debt repayment intensified, buttressing the impact of rising interest rates, which have made borrowing more expensive for businesses while driving greater interest in government securities.

What the data shows 

• In August 2024, credit to the government reached N31.15 trillion, a sharp increase from the N19.83 trillion recorded in July 2024.

• This marks a significant growth of N11.33 trillion or 57.1% in just one month. The surge in government borrowing reflects the increasing attractiveness of government securities, driven by higher yields resulting from persistent interest rate hikes by the CBN.

• By comparison, in August 2023, government borrowing stood at N22.51 trillion, meaning that in the space of one year, government credit has risen by 38.5%, affirming the growing reliance on debt to finance public expenditure.

Declining private sector debt 

• While the government is increasingly tapping into credit markets, the private sector appears to be retreating. Credit to the private sector in August 2024 stood at N74.73 trillion, a slight decrease from N75.51 trillion in July 2024. This marks a reduction of about N780 billion, or 1.03%. Though the decline is relatively modest, it reflects the broader trend of businesses struggling to cope with rising borrowing costs as the CBN continues its monetary tightening.

• In August 2023, private sector credit was significantly lower at N56.95 trillion, highlighting that while there has been an overall increase in private sector borrowing over the past year, the rising cost of debt is starting to weigh on businesses’ willingness to expand credit further.

The hike in Interest Rates 

The CBN, under Yemi Cardoso, increased the monetary policy rate (MPR) five times to combat inflation and foster economic stability.

The first hike increased the rate from 18.75% to 22.75%, the second to 24.75%, the third to 26.25%, the fourth to 26.75%, and most recently in September 2024, the Monetary Policy Committee (MPC) raised the rate by 50 basis points to 27.25%.

These increases, totalling 850 basis points since Cardoso’s appointment, have been driven by efforts to tackle the country’s persistent inflation challenges, which include high core and food inflation.

The CBN’s tightening monetary policy has reshaped the dynamics of credit allocation in Nigeria. Rising interest rates have made government securities more attractive to investors, as higher yields offer better returns with relatively lower risk compared to private sector lending. This has led to a surge in government borrowing, while businesses, facing higher borrowing costs, are more cautious.

However, there are concerns that prolonged tight monetary policy could stifle economic growth, especially if businesses are unable to access affordable credit to finance expansion and investment.

Also, although government securities have become more attractive due to higher yields resulting from persistent interest rate hikes by the CBN, the government is not exempt from the pressures of increased borrowing costs.

As interest rates continue to rise, the government will have to pay more to service its debt, particularly on new issuances of bonds and treasury bills. This could strain public finances further, as the cost of servicing debt could consume a larger portion of government revenue, leaving less room for critical expenditures such as infrastructure projects, social services, and other development initiatives.

What you should know 

The Bola Tinubu administration has relied mostly on the domestic debt market, especially treasury bills, to fund short-term obligations, a huge departure from the Muhammadu Buhari administration, which relied mostly on the CBN’s Ways and Means Advances.

Nairametrics earlier noted that Nigeria has a total Treasury Bills (T-Bills) debt of N10.4 trillion, a 60% rise in just three months, according to data from the Debt Management Office (DMO).

The CBN also incurred an estimated N1.55 trillion in interest payments for the 12 successful T-Bills auctions conduced in the first six months of 2024.

The interest costs in 2024 were approximately 654.7% higher than the N205.63 billion recorded the same period of the previous year.

Data from the apex bank reveals that the apex bank has sold Treasury Bills worth N8.4 trillion in the first half of the year for tenors ranging from 91-days, 182-days and 364-day bills. The stop rate, which is the interest rates accepted from the bids on offer, ranged from as low as 2.44% for some 91-day bills to as high as 21.49% for 364-day bills.

The Lagos Chamber of Commerce and Industry (LCCI) recently lamented the effect of high interest rate of CBN’s Treasury bill noting that it is drying up funds from the private sector into government’s treasuries.

The Director-General of the Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, called on the CBN to expedite the window of development finance for businesses to mitigate the effect of the high monetary policy rate in the country. He noted that businesses need the single-digit interest rate to drive the Nigerian economy.

Also, the President of the Dangote Group Industries Ltd, Alhaji Aliko Dangote stated that no economic growth will happen unless the bank interest rate at 30% decline. He further called for the protection of local industries, especially in manufacturing, across the country.

However, Yemi Cardoso, the Governor of the CBN earlier emphasized the necessity of maintaining higher interest rates to address the persistent inflation issues plaguing the Nigerian economy. Cardoso stated that tighter monetary policy accompanied by higher interest rates was at their disposal to solve the challenges of high inflation.

[Nairametrics]

A Federal High Court in Abuja on Monday once again stopped the Independent National Electoral Commission (INEC) from providing the voters’ register to the Rivers State Independent Electoral Commission (RSIEC) for the upcoming local government elections scheduled for October 5, 2024.

In addition, the court prohibited the Inspector General of Police and the Department of State Services (DSS) from offering security for the poll.

Justice Peter Lifu delivered the ruling following a lawsuit filed by the All Progressives Congress (APC).

The APC’s legal team, led by Senior Advocates of Nigeria Joseph Daudu, Sebastine Hon, and Ogwu James Onoja, argued the case.

Justice Lifu ruled that the RSIEC acted prematurely in setting the October 5 election date, stating that it did so without adhering to the necessary legal requirements.

Specifically, the court found that the Rivers State electoral body had failed to comply with provisions of the local government election law, particularly the requirement to publish a 90-day notice prior to the election.

Additionally, Justice Lifu emphasized that the updating and revision of the voters’ register must be completed before a legally valid election date could be set.

As a result, the court ordered INEC not to provide the certified voters’ register to RSIEC until all legal stipulations were met.

RSIEC was similarly instructed not to accept or use any voters’ register from INEC for the October 5 local government elections.

[NaijaNews]

Governor Abba Kabir Yusuf of Kano State has identified weak institutions, corruption, poor governance and the quality of leadership at the national, state and local government levels as some of the challenges hindering Nigeria’s development.

In a speech at a lecture to mark the country’s 64th independence, Governor Yusuf gave an assessment of the progress made in its democratic journey.

The governor commended the two speakers at the lecture, Prof. Kamilu Fagge and Sheikh Ibrahim Khalil, for their contribution while they “incisively engaged us on topics that are of paramount importance to both Kano State and our country as a whole.”

He described the topics addressed as apt and reflecting the realities of national life, especially in the areas of governance, leadership, and the relentless pursuit of development.

In his assessment, Governor Yusuf raised questions on whether the democratic ideals of freedom, justice, and equality have been fulfilled.

He said: “As it is everywhere globally, the success of Nigeria’s democracy is tied closely to the quality of leadership.

“As a developing nation with a complex political landscape, leadership challenges, such as corruption, weak institutions and lack of accountability, have hindered national progress.

“A lecture focusing on leadership challenges will certainly allow for a deeper analysis of the role leaders at both state and national levels play in the country’s successes and shortcomings.

“Although the topics address national issues, its specific focus on Kano State is highly relevant. States are the building blocks of Nigeria’s federal structure, and the progress of individual states contributes to the overall success of the nation.”

Turning his attention on his own government and state, Governor Yusuf said that by repositioning Kano State to address leadership and governance challenges, it sets an example for other states on how to create a model of good governance that can be replicated nationwide.

He said, “Allow me to also remind you that the future of Nigeria is deeply linked to the development of its states. A brighter future for Kano State can serve as a small-scale version of the broader national aspiration for a prosperous Nigeria.

“By addressing state-level challenges in leadership, education, health, and infrastructure, these topics emphasise the importance of localized governance as a stepping stone to national success.

“We must recognise that democracy is a journey, and the success of that journey is largely dependent on the quality of leadership at every level — national, state, and local government.

“We in Kano State are fully committed to playing our part in strengthening the democratic process and building institutions that foster good governance.”

Governor Abba, who used the opportunity to highlight some of his achievements in education, health, security, agriculture, and public service reforms among others, said as Kano State looks to the future, his administration will continue to build on those achievements.

He called for the active participation of all citizens and unity in the spirit of patriotism, hard work, and dedication to the values that define Nigerians as a people.

“Let me therefore urge all of us to use this anniversary as a time for reflection, and renew our commitment to building a prosperous, secure, and inclusive Kano State and Nigeria at large,” he said.

[DailyTrust]

There is tension at the Edo State Government House in Benin City over alleged plans by Philip Shaibu to resume in his office as Deputy Governor.

DAILY POST reports that security has been beefed up within the premises of Government House located at Dennis Osadabey Avenue, Benin City.

It was gathered that the security beef up is aimed at stopping Shaibu from resuming office.

As part of security measures, the state government has banned vehicles including those of Government House staff from entering Osadebe Avenue.

During a visit to the area on Monday, DAILY POST observed that visitors and civil servants parked their vehicles by the roadside and walked long distances to their offices.

Men of the Nigeria Police and the state-owned Police Constabulary mounted a roadblock at the entrance gate.

DAILY POST recalls that on July 17, a Federal High Court in Abuja, presided over by Justice J. K. Omotosho, reinstated Shaibu as the Edo State Deputy Governor.

The court had also last week, rejected a motion filed by the Edo State Government and the House of Assembly for a stay of execution of the reinstatement order.

The State House of Assembly had on March 18, 2024, impeached Shaibu as the deputy governor of the state, and in his stead, Governor Godwin Obaseki appointed and swore-in Engineer Godwins Marvellous Omobayo as the deputy governor.

Speaking to DAILY POST on Monday, some civil servants who spoke on condition of anonymity described the security beef up at the Government House as surprising.

“We were surprised to see heavy security in and around the Government House on resumption at the office.

“Election has ended and we expected to see a very more peaceful state,” they said.

The Edo State Government had on Sunday, in a statement, alleged that Shaibu had perfected plans to invade the Government House on Monday, September 30, to enforce his purported reinstatement despite the fact that a stay of execution appeal has been filed challenging Justice J. K. Omotosho’s ruling.

The statement by Mr Crusoe Osagie, the Special Adviser to the Edo State Government on Media Projects, called on the Inspector General of Police and all well-meaning Nigerians to prevail on Shaibu to refrain from his alleged plot.

Osagie opined that the plot was a clear recipe for chaos, given the fact that a policeman was killed the last time Shaibu attempted such action.

“We want to draw the attention of the Inspector General of Police to the intelligence we have gathered regarding a planned move by Shaibu to forcefully enter the Edo State Government House to purportedly enforce the ruling of Justice J. K. Omotosho.

“The stay of execution is still pending at the court of appeal and we appeal to the Inspector General of Police to ensure that the state does not descend to anarchy because of the ambition of one man.

“The last time Shaibu attempted to do this, it led to the death of a police officer. We believe that is one death too many and it is only wise for us to prevent a repeat of such,” he stated.

Reacting to the statement, Shaibu denied the allegation, saying the reality was yet to dawn on Obaseki that he and his followers have been rejected by Edo people.

Shaibu, who reacted through his media aide, Mr Ebomhiana Musa, noted that unlike Obaseki, he (Shaibu) is a peace-loving man who firmly believes in the rule of law and would not want to shed innocent blood for whatever reason.

“We want to put it clearly here that, unlike Governor Godwin Obaseki, Philip Shaibu is a peace-loving, who firmly believes in the rule of law and would not want to shed innocent blood for whatever reason.

“In the eyes of the law and in the eyes of the good people of Edo State and Nigerians, Philip Shaibu is the de jure and de facto Deputy Governor of Edo State.”

He called on the public to ignore the allegation, describing it as fake news spread by Obaseki’s spokesperson.

[DailyPost]

Popular actress Biola Adebayo recently opened up about the challenges she faced at the beginning of her career during an appearance on “Nollywood on Radio.” 

Adebayo shared that she lost acting roles because she refused to date certain influential people in the industry. 

She also recalled being pressured to lighten her skin, with someone suggesting she “tone it up a little” to advance her career.

Adebayo also discussed her podcast, “Talk To B,” which she started because of her natural ability to connect with people. 

She explained: “For some reason, people are drawn to me and trust me with their secrets—even those I am not close to. I began to think about how I could impact people’s lives beyond just presenting and decided to create a platform where I could connect with and support ordinary people.” 

The impact of her podcast has been significant, transforming many lives in a short time. 

Adebayo revealed that over N10 million has been raised for various causes, including over 35 million naira for individuals needing accommodations. 

The podcast has also helped people facing marital challenges, provided urgent assistance, and supported those in need of therapy or counseling. 

Adebayo emphasised: “Talk To B” has become a source of hope for those without other places to turn, especially victims of abuse and those facing life’s most challenging situations.

[TheNation]

The Federal Capital Territory Police Command said it has commenced deployment of personnel and equipment ahead of the Independence celebration slated for October 1.

The command, which is without a Commissioner of Police, however, was silent over its preparation for the protest scheduled for the same day.

In a statement on Monday, the Police command spokesperson, Josephine Adeh, said the deployment included Explosive Ordnance Disposal personnel, anti-riot equipment, and visibility policing, among others.

She added that this was to ensure FCT residents have a peaceful Independence Day celebration.

She said,” The FCT Police Command, in anticipation of the upcoming October 1st Independence Day celebration, has strategically deployed adequate personnel and equipment throughout the FCT.

“These proactive deployments aim to ensure that residents of the FCT enjoy a hitch-free Independence Day celebration. The deployment will include Explosive Ordnance Disposal personnel, anti-riot equipment, and visibility policing, among others.”

She also said there would be traffic diversion in areas likely to witness large crowds, especially Eagles Square.

Adeh said, “Traffic diversions will be implemented in areas expected to experience large crowds, including Central Area and Eagle Square.

“While celebrating Independence Day, residents of the FCT are encouraged to remain vigilant and report any suspicious movements or activities to the FCT Police emergency lines: 08032003913, 08028940883, 08061581938, 07057337653, PCB: 09022222352, CRU: 08107314192.”

[Punch]

Events of monumental proportions are happening in the world. The assassination of Hezbollah leader, Hassan Nasarallah, may signal the commencement of all-out war in the Middle East.

Those who love conquest would celebrate his elimination. Those who seek peace would recognise that his death drives humanity closer to an avoidable war.

Since we all agree that we now live in a global village, we should be concerned about such events in the world. But Nigerians are not prepared for such a fall-out.

Surely we have Nigerians living in Lebanon who would need protection. But we have no ambassador there who can protect out interest or keep us well informed. We also have no ambassador in Israel who can advance our interest.

Definitely, this is a proxy war in which the United States and its allies like France and Britain are providing Israel with logistics and timely intelligence which has always given it an advantage in armed conflicts with its neigbours. But we do not have ambassadors in any of those countries who can advance our views and interests. Nor do we have in Iran which is providing logistics and support for Hezbollah.

In fact, we have no ambassador anywhere in the world except in the United Nations system and Niger Republic.

Tragically, our best diplomats are at home, rotting away behind bare office desks, waiting to be posted. After one year of waiting, some of them may never make it to the pinnacle of their career as retirement may catch up with them.

Yes, the Tinubu administration has a Four-D foreign policy of Development, Demography, Democracy and Diaspora, but without ambassadors in a competitive world to make our case in various countries? We are concerned about Diaspora, but leave our citizens in all countries like sheep without shepherd. Then we stroll to the UN General Assembly podium to say we want to be a Permanent Member of the Security Council. Who will take us serious?

What is quite painful in this is that it was quite avoidable. We had ambassadors across the world when President Bola Tinubu was sworn in on May 29, 2023. After about four months, he recalled all of them with the perceived intention of replacing them. Now over one year later, he has either been incapable of doing so, or has not had the time. Why such self-inflicted injury by the so-called Giant of Africa?

It is also unlikely that this wound can be well treated this year because currently, the focus of the world is on UNGA, then our 64th Independence Anniversary and, we are approaching Christmas season or end-of-year activities. Again, even if new ambassadors are appointed today, they will need to undergo screening by the Senate, training and a period of acceptance by the receiving countries.

So, effectively, Nigerians are orphaned on the international stage.

We are also dispossessed in the country. Nigerians are a mass of alienated, hungry and angry people in a country so richly endowed with resources, including oil and gas and, unarguably, some of the best brains in the world.

We do not add value to our products like oil, are incapable of repairing existing refineries, yet go about destroying what are called ‘illegal’ refineries. In the last one year, the cost of petrol has gone up at least 400 per cent, yet we have to queue for hours to buy the product. We find ourselves being played like football between the new Dangote Refinery and the Federal Government. Talking about the latter, we live a lie that we have a federal system when what we run is a unitary system. A political system in which no group or nationality is happy or at ease.

Another lie is that we run a democracy when we are incapable of even conducting a state election successfully. We just had an election in Edo State where victory went to the highest bidder with ‘federal might’.

We know that the monthly allowances distributed in the National Assembly are illegal, that the constituency projects cannot stand the most rudimentary scrutiny and that our annual budgets are padded, yet we expect the same body to carry out oversight functions. Can a compromised National Assembly check the Executive or call public officials to order?

What, for me, is the most worrying is the growing insecurity in the land with terrorists, bandits and separatists over- running vast swathes of the country. But rather than concentrate on this serious challenge to life and property and the very existence of the country, the military is bogged down with diversions such as stopping public protests on the state of the country. Worse still, the generals bog themselves down with the conduct of elections. What was the business of the Chief of Defence Staff with the state election in Edo? What threat existed there that the police or Civil Defence could not handle? The misuse of the military for civil matters is a danger to the country’s democratic process.

The state of insecurity has become even more frightening after various accusations were made against the Minister of State for Defence, Bello Matawalle. Those making the accusations include the Governor of Zamfara State, Dauda Lawal, who accused his predecessor of keeping bandits in the Government House and receiving ransom on their behalf. Yet, all Matawalle could do was to swear by the Quoran.

Every aspect of our national life is down. The education sector is virtually in comatose and the cries of the Academic Staff Union of Universities, ASUU, about the sorry state of education in the country does not appear to have receptive ears in government.

As for the people, all they experience are astronomical increases in the prices of goods and services, more taxes and higher tariff for poorer services like electricity.

The country is in a mess and the government must know that people are no longer listening to the trite that things will get worse before they get better. That has been the sing-song of virtually every government since the overthrow of the Shagari administration on December 31, 1983.

Nigerians are a dispossessed people both abroad and at home. We need to review our policies, programmes and governance system. Africans say when a child trips and falls, he looks forward to see if there is anybody coming to help him, but when an elder trips and falls, he looks back to see what tripped him. After 64 years, we should look back to see why we are down. The Tinubu government should reassess its programmes and policies. To do this effectively, he needs to put together intellectually-endowed patriots who do not need his patronage. This advisory body can bridge the yawning gap between the government and the people.

Real Madrid goalkeeper Thibaut Courtois is set to miss a couple of weeks after his club diagnosed him with a hip muscle injury.

Spanish media estimate he will return in mid-October after the impending international break, missing the Champions League visit to Lille on Wednesday and next weekend’s home La Liga match against Villarreal.

“After tests carried out today on our player Thibaut Courtois by the Real Madrid medical services, he has been diagnosed with an abductor injury,” the club said in a statement.

Courtois sustained the injury during Madrid’s derby 1-1 draw at rivals Atletico in La Liga on Sunday, a match in which he was also targeted by home fans of his former club who threw objects including lighters at him.

The Belgian goalkeeper spent most of last season out with a severe knee injury but returned in time to start in Madrid’s Champions League final triumph.

Ukrainian goalkeeper Andriy Lunin is poised to fill in for Courtois as he did last season.

Vanguard News

Adebayo Adelabu, minister of power, says more than 40 percent of Nigerian electricity consumers now enjoy over 20 hours of regular supply daily.

The milestone was revealed during a review of the ministry’s achievements over the past year as part of the country’s Independence Day celebrations.

In a statement on Sunday, Adelabu attributed the progress to several “revolutionary measures” implemented with the support of President Bola Tinubu’s administration.

He said the ministry’s initiatives are aligned with the president’s renewed hope agenda, which aims to enhance industrialisation through consistent power supply.

“The major achievement is the fact that today we generate over 5,500 megawatts of power, we transmit and distribute it, and over 40% of customers today enjoy over 20 hours of regular power supply across the nation,” Adelabu said.

“You can see that there is a significant improvement between when we came in and now, which we intend to improve further.”

Adelabu said the ministry is striving to enhance this achievement by the end of the year, as reliable power supply is one of the key campaign promises of the president.

He stressed the critical role of stable electricity in developed nations, linking it to economic success.

“This is why you see great economies like Korea, China, Europe, and North America industrialised today. Their stability in electricity supply has been instrumental to their economic growth and industrial development,” he said.

“That is why we say that we must achieve this for Nigeria as a country. We need to achieve the requisite economic growth and industrial development.”

‘RELIABLE ELECTRICITY SUPPLY WILL ENHANCE ECONOMIC GROWTH’

Adelabu said the ministry’s vision is to provide reliable and affordable electricity to households, businesses, and institutions.

This, he said, will enable the country achieve the desired economic growth and industrial development.

Reflecting on the ministry’s progress since the inception of the administration, the minister said the installed generation capacity has increased from 13,000 megawatts to over 14,000 megawatts.

He said this was made possible by the addition of new hydroelectric power plants and improvements in existing facilities.

Adelabu outlined several key reforms, including the signing of the new Electricity Act 2023, which decentralises power generation, allowing subnational governments to participate in the electricity market.

He said the liberalisation of the sector has paved the way for private sector to also participate in the electricity supply industry.

In the infrastructure space, the minister highlighted the successful commissioning of 10 power transformers and mobile substations under the presidential power initiative.

He also acknowledged ongoing efforts to close the metering gap, noting that over 7 million Nigerian households are still without meters.

“Within a year, we completed the pilot phase of this project, which involved importing 10 power transformers and 10 power mobile substations. They have arrived; we have installed them, and we have commissioned them,” the minister said.

“Therefore, the electricity stability that we enjoy today is not by accident. It’s because of all these transformers and mobile substations that we commissioned and installed.

“There is the issue of the meter gap that we have. We all know that out of almost 13 million customers that we have in the industry, over 7 million customers are still without meters and are on estimated billing.

“We said this is not the way to go. We must correct this, which is why President Bola Ahmed Tinubu set up the Presidential Metering Initiative, which has the mandate of installing over 10 million meters within the next five years, at least 2 million meters on a yearly basis.

“We are making progress on this. The funds are being provided, and we will soon go into the acquisition of these meters. This would reduce the meter gap.”

‘WORLD BANK SUPPORTING EFFORTS TO REDUCE METER GAP’

Adelabu also said the World Bank is supporting these efforts through the distribution recovery programme by procuring and installing 1.8 million meters.

He said the contract of about 1.5 million meters has already been awarded and within the next two months, these meters will start arriving.

The minister also announced a special electricity supply initiative for the nation’s universities and other institutions aimed at preventing frequent power outages and ensuring they continue to benefit from lower tariffs.

“We have a program which we call the Nigerian electrification program, whereby we have about 34 universities to be energized through solar energy sources. I think we have completed about 13 now, and they are almost due for commissioning,” he said.

“We have plans to do this for some of the teaching hospitals and some of our military formations.

“We have electrified over three million people through these mini-grids across the rural areas nationwide.

“We also have what we call the solar home systems that we give to each household, providing them with some point of light, some point to charge their phones, and some points for farming.”

[TheCable]