The Socio-Economic Rights and Accountability Project (SERAP) has given President Bola Tinubu 48 hours to reverse the recent 50% telcos tariff hike.

SERAP, in a statement, said failure to do so by the Tinubu administration means they will be charged in court.

“The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours,” SERAP said.

The Nigerian Communications Commission (NCC) on Monday, January 20, approved the raising of telecoms tariff by 50 per cent in what shareholders believe was approved in a bid to improve telecom services.

The approved increase was disclosed in a statement signed by NCC Director of Public Affairs, Mr. Reuben Muoka.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.”

NCC noted that tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators, adding that the approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.”

President Donald Trump has announced his intention to end birthright citizenship, which grants automatic US citizenship to anyone born on American soil.

On Monday, he signed an executive order called “Protecting the Meaning and Value of American Citizenship” in the Oval Office after his inauguration.

The order applies to babies born after February 19. 

Experts say this decision will likely face legal challenges because it changes how the 14th Amendment has been understood for over 150 years.

What is birthright citizenship?

The 14th Amendment of the U.S. Constitution, passed in 1868, created birthright citizenship. It says that “all persons born” in the United States “are citizens of the United States.”

It was meant to give citizenship to freed slaves after the Civil War. This amendment also overturned the Dred Scott v. Sandford decision from 1857, which said African Americans could not be U.S. citizens.

In 1898, the U.S. Supreme Court confirmed the idea of birthright citizenship in the case of United States v. Wong Kim Ark. Wong Kim Ark was born in the U.S. to Chinese immigrant parents.

After traveling to China, he was not allowed to reenter the U.S. The Court decided that because he was born in the U.S., he was a citizen, no matter his parents’ immigration status.

Who Would Be Affected?

The policy seeks to exclude two groups of infants from citizenship:

• Babies born to mothers who are in the U.S. unlawfully and fathers who are not citizens or permanent residents.
• Babies born to mothers temporarily in the U.S., like on student, work, or tourist visas, and fathers who are neither citizens nor permanent residents.

The policy also defines parents as “male and female biological progenitors.” This means it excludes nonbinary and queer couples.

Impact on Families and Babies

If this order is enforced, many newborns would not be U.S. citizens. These babies might not get birth certificates, Social Security numbers, or passports. Without these, it would be harder for them to access services or travel. Families, especially those with undocumented or temporary immigration status, would face tough challenges. Mothers could be at risk of deportation shortly after giving birth.

Does This Follow the 14th Amendment?

Many legal experts think this order goes against the 14th Amendment. For over 150 years, this amendment has granted citizenship to anyone born on U.S. soil, no matter their parents’ immigration status.

Trump says people have wanted this change for a long time. He believes his administration has strong legal arguments to defend the policy. However, experts think the courts will likely block the order.

Along with this order, other policies were announced to reduce immigration and deport millions of undocumented people.

A 2016 Pew Research study said 250,000 babies were born to undocumented parents in the U.S. that year. By 2022, 1.2 million U.S. citizens were children of undocumented parents. The Migration Policy Institute predicts that ending birthright citizenship could create 4.7 million undocumented people by 2050.

In an interview with NBC’s Meet the Press, Trump said that children of undocumented immigrants, even if born in the U.S., should be deported with their families.

“I don’t want to be breaking up families,” Trump said last December. “So the only way you don’t break up the family is you keep them together and you have to send them all back.”

The Nigeria Labour Congress, NLC, has rejected the proposed use of N8 billion to sensitise consumers on how to pay electricity bill, describing it as the height of profligacy, wastefulness, corruption.

NLC also blamed perceived incompetent headship of the Ministry of Power and National Electricity Regulatory Commission, NERC, for the unending grid collapses.

The union lamented that National Grid has collapsed under this Minister more than all the previous ministers in the history of Nigeria combined.

Labour made its views known in a statement titled “BEFORE THE POWER SECTOR COLLAPSES: N8 BILLION BUDGET FOR ELECTRICITY BILL SENSITIZATION IS ASHAMEFUL TESTAMENT TO INCOMPETENCE AND WASTEFULNESS”.

NLC equally demanded for a comprehensive audit of the entire power sector budget and others to unearth other potential avenues for corruption and financial recklessness.

In the statement by its President, Joe Ajaero, NLC challenged the power minister to tell Nigerians how much dividend it has received from the DISCOs and other privatised entities since the last 12 years of privatisation in lieu of its 40 percent ownership of the privatized entities.

The NLC statement read in parts: “We will continue to monitor developments in this regard and will not hesitate to mobilise against any attempt to use the budget process as a vehicle for waste and corruption.

“Asking for N8 billion to teach us how to pay bills to DISCOs owned by private entities is entirely questionable and speaks to the deeper worries of Nigerians as to the distinction between those in government and those who bought the electricity companies.

“It is laughable to believe that what is important to Nigerians, especially as it concerns the power sector now is to be sensitised on why they should pay more for electricity in the midst of constant grid failure and overwhelming darkness.

“This is annoying and speaks to the depth of crass contempt and disdain with which some individuals occupying the nation’s corridors of power hold the citizens.

“If the leadership of the power sector are compelled to reduce the number of times they spend at the National Assembly, perhaps, they would have more time to focus on their job and reduce the embarrassing situation in the sector.

“Sensitization campaigns should not cost a fraction of this amount, especially in a country where schools are underfunded, hospitals lack basic equipment, and infrastructure is crumbling.

“This allocation is not just wasteful; it is a slap in the face of every hardworking Nigerian struggling to make ends meet.

“Unless the perceived incompetence and wastefulness in the Ministry of Power and the NERC is addressed urgently, the nation’s power sector may collapse completely.

“We urge the President of the federation to take steps to rein in the burgeoning appetites of those in the Power Ministry and NERC, to reinvigorate the sector and save it from total collapse.”

Nigeria’s total public debt rose to N142.3 trillion as of September 30, 2024, representing an increase of 5.97 per cent (N8.02tn) compared to N134.3tn in June 2024.

The debt, comprising external and domestic obligations, reflects the significant impact of exchange rate depreciation on external borrowings when converted to naira terms.

Data from the Debt Management Office showed that external debt in dollar terms increased marginally by 0.29 per cent, from $42.90bn in June to $43.03bn in September.

However, in naira terms, external debt surged by 9.22 per cent, rising from N63.07tn to N68.89tn within the quarter.

This sharp increase was attributed to the depreciation of the naira, with the exchange rate weakening from N1,470.19/$ in June to N1,601.03/$ by the end of September.

Domestic debt, on the other hand, reduced by 5.34 per cent in dollar terms, falling from $48.45bn in June to $45.87bn in September.

However, domestic debt in naira terms rose by 3.10 per cent, increasing from N71.22tn to N73.43tn during the period.

The Federal Government’s external debt accounted for $38.12bn in September, up from $38.01bn in June, while states and the Federal Capital Territory held $4.91bn in external debt, a slight increase from $4.89bn.

For domestic debt, the Federal Government’s obligations rose from N66.96tn to N69.22tn, while states and the FCT recorded a minor reduction from N4.27tn to N4.21tn.

Overall, Nigeria’s total public debt in dollar terms fell by 2.70 per cent, from $91.35bn in June to $88.89bn in September.

However, the naira-denominated debt burden remained substantial.

The rising debt profile, particularly in naira terms, raises concerns over debt sustainability, especially with the exchange rate volatility driving up the local currency cost of external obligations.

Further analysis by The PUNCH showed that the Federal Government’s domestic debt stock of N69.22tn as of September 30, 2024, was largely driven by increased issuance of Federal Government bonds and a rise in promissory notes, highlighting the government’s reliance on domestic borrowing to meet fiscal obligations.

Analysis of the debt by instruments shows that Federal Government bonds remained the largest component, rising by 4.47 per cent to N54.65tn in September from N52.32tn in June.

This represents 78.95 per cent of the total domestic debt stock, up from 78.13 per cent in the previous quarter.

The issuance of bonds in naira accounted for the majority of the increase, as the dollar-denominated bond was newly introduced to the domestic debt stock at N1.47tn.

The PUNCH earlier reported that Nigeria successfully launched its first-ever domestic dollar-denominated bond, seeing over $900m in subscriptions.

The $500m bond, coordinated by the Africa Finance Corporation, marked a pivotal moment in Nigeria’s economic development and highlights the growing confidence in the country’s capital market.

The five-year bond, which was issued at par with a 9.75 per cent annual coupon, witnessed a 180 per cent subscription.

This domestic bond added N1.47tn to Nigeria’s domestic debt.

Further analysis showed that Nigerian Treasury Bills, the second-largest component, experienced a marginal decline, falling by 0.66 per cent to N11.73tn from N11.81tn in the previous quarter.

The reduction aligns with efforts to moderate short-term debt instruments, likely in response to concerns over rollover risks and rising interest rates.

Promissory notes, issued to settle government obligations such as contractor payments, grew by 5.80 per cent to N1.77tn in September from N1.67tn in June.

This includes a significant increase in foreign-denominated promissory notes, which rose from N1.18tn to N1.19tn, reflecting adjustments due to currency fluctuations.

FGN Sukuk, a key instrument for infrastructure funding, decreased by 9.14 per cent to N992.56bn, down from N1.09tn.

Meanwhile, FGN Savings Bonds increased by 16.11 per cent, rising to N64.09bn from N55.20bn, reflecting higher participation by retail investors.

The Green Bond component remained unchanged at N15bn, maintaining its minimal contribution of 0.02 per cent to the domestic debt stock.

The overall increase in domestic debt highlights the Federal Government’s growing dependence on local markets to finance budget deficits amid constrained foreign exchange reserves and limited external borrowing options.

While the bond market continues to dominate, the expansion in promissory notes and retail-focused savings bonds indicates a broadening of the domestic debt portfolio.

Economic analysts have repeatedly raised concerns about the sustainability of the rising debt levels, particularly as interest payments consume a significant portion of government revenue.

Earlier, the Chief Executive Officer of the Centre for the Promotion of Public Enterprises, Dr Muda Yusuf, warned that Nigeria may end up in a vicious circle, noting the country may end up in a debt trap.

He said, “I think there is a need for us to be very conscious of and watch the rate of growth of our public debt. Because it could create macro-economic challenges especially if the burden of debt service continues to grow.”

Yusuf added that there is a need for the government to reduce the exposure to foreign debts because the number has grown so due to the exchange rate.

The modest decline in short-term instruments like treasury bills could mitigate refinancing risks, but the reliance on long-term bonds may increase the overall cost of debt servicing in the long term.

Analysis of Nigeria’s external debt stock of $43.03bn by the end of September 2024 shows a largely stable external debt profile, with changes driven by minor adjustments in multilateral and bilateral obligations.

According to data from the DMO, multilateral debt rose by 0.67 per cent from $21.62bn in June to $21.77bn in September, maintaining its dominance with 50.60 per cent of the total external debt.

This increase was largely influenced by additional disbursements from institutions such as the World Bank’s International Development Association, which saw its obligations increase by $513.06m to $16.84bn.

Bilateral loans decreased slightly by 1.33 per cent, dropping from $5.89bn in June to $5.81bn in September.

China, Nigeria’s largest bilateral lender, saw a reduction of $99.98m in outstanding loans, while obligations to other bilateral lenders like France and Germany remained relatively stable.

Commercial loans, consisting primarily of Eurobonds, were unchanged at $15.12bn, representing 35.14 per cent of the total external debt.

Similarly, syndicated loans and obligations to Deutsche Bank saw minimal fluctuations, with syndicated loans remaining at $270m and a small increase of $59.02m in other commercial obligations.

The marginal rise in external debt highlights the Federal Government’s cautious approach to international borrowing amid ongoing fiscal constraints and exchange rate volatility.

However, the naira’s depreciation, from N1,470.19/$ in June to N1,601.03/$ in September, has exacerbated the burden of external debt in local currency terms.

Nigeria raised $2.2bn through its Eurobond auction in December last year, marking a pivotal moment in the country’s ongoing efforts to address its growing fiscal deficit.

This auction, which saw the issuance of two bonds with varying tenors, follows the government’s return to the international capital markets for the first time since March 2022.

The funds raised would primarily be used to support Nigeria’s 2024 budget, which is under strain due to persistent revenue shortfalls and mounting public spending.

While Nigeria recorded a total subscription of over $9bn, only $2.2bn was allotted.

The allotments are $700m for the 6.5-year bond priced at 9.625 per cent and a larger $1.5bn for the 10-year bond priced at 10.375 per cent.

This means that Nigeria’s external debt is expected to rise further when the DMO releases the Q4 2024 data.

In a related development, the Federal Government has reiterated its commitment to aggressive revenue generation to fund critical infrastructure and drive economic growth.

According to a press statement, the Minister of Budget and Economic Planning, Abubakar Bagudu, stated this on Tuesday during the defence of his ministry’s 2025 financial estimates before the National Assembly Joint Committees on National Planning in Abuja.

Bagudu credited President Bola Tinubu’s leadership for steering the economy in the right direction, adding that the administration remains determined to sustain the ongoing reforms.

He noted that the Renewed Hope Agenda is yielding positive results, with the government addressing decades of underinvestment in critical sectors.

“President Bola Tinubu has steered the economy in the right direction, and we are determined to stay the course,” he told lawmakers led by Senator Yahaya Abdullahi and Hon. Isiaka Ibrahim.

He highlighted the country’s GDP growth of over 3 per cent for three consecutive quarters, contrasting it with less than 1 per cent growth in some industrialised nations.

He also noted a significant reduction in the fiscal deficit from over 6.1 per cent in 2023 to less than 4 per cent in 2024, a development acknowledged by global business leaders and rating agencies.

Bagudu pointed out that the government’s reforms, including the removal of fuel and forex subsidies, have enhanced liquidity at the sub-national level, with FAAC allocations to states and local governments increasing.

He assured legislators that the upward trend would be sustained through innovative revenue-generation strategies. According to him, the petroleum, solid minerals, and creative industries have been tasked with unlocking their full potential to boost national income.

The minister outlined plans to fund critical infrastructure such as housing, roads, and railways through initiatives like the Renewed Hope Infrastructure Fund, Consumer Credit schemes, agriculture and mortgage funds, and energy transition projects.

He was quoted in the statement as saying, “As the chief marketer of the Renewed Hope Agenda and Agenda 2050 strategies, the Federal Ministry of Budget and Economic Planning is poised to intensify its innovative financing to take forward the delivery of the Renewed Hope Infrastructure, including housing, roads and railway.

“We shall more aggressively raise funding for our creative and high-impact programmes, including Renewed Hope Infrastructure Fund, Consumer Credit, National Agriculture Development Fund, Mortgage Fund, CNG Energy transition, Student Loans Fund, and support to NANO and MSMEs.”

He also stated that crude oil production would be ramped up beyond the current estimate of 2.06 million barrels per day as the Crude Oil Theft Committee intensifies efforts to curb losses.

Bagudu urged the National Assembly to pass key tax reform bills, noting that these measures are crucial for achieving the government’s 18 per cent revenue-to-GDP target.

He assured legislators that the Tinubu administration remains focused on inclusive economic growth, promising increased revenue to support higher expenditure.

The minister said the economic reforms had earned respect from development partners, with strengthened bilateral relations between Nigeria and countries such as China, the United Kingdom, and the European Union.

He highlighted recent high-level agreements signed with these partners, which he said would support the country’s development agenda.