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Dwindling revenue: Buhari government to embark on another borrowing spree

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From Monday to Thursday, the House of Representatives Committee on Finance had an interactive session with revenue-generating agencies on the Medium Term Expenditure Framework (MTEF).

President Muhammadu Buhari had forwarded the 2022-2024 MTEF to the National Assembly for approval. However, what is alarming is that the government is proposing a deficit of N5.2trillion, which will be financed through borrowing.

The MTEF is a rolling plan of three years, which contains macroeconomics projections for the three years under review. The MTEF projection is crude oil benchmark price of $57 per barrel for 2022, crude oil production of 1.88 million barrels per day, and a dollar exchange rate of N410.15 to one US dollar.

At the public hearing, the Chairman of the Committee, James Faleke, appeared to be on the quest to search for money to reduce the proposed deficit and cut the borrowing down.

On Thursday, while speaking to the Nigerian Ports Authority (NPA), he warned that the committee will cut any capital projects by any agency to free more revenue for the government.

Most revenue-generating agencies increase their capital expenditure to reduce their operating surplus which they are supposed to remit to the government.

“The major problem we have is revenue. The MTEF we have now is to borrow N5.2trillion. If we discover that any of your capital projects is not necessary, we will push it to revenue,” Faleke had said.

Agencies like the NPA, Nigerian Communications Commission (NCC), and others have been asked to increase their revenue collection, while the Federal Inland Revenue Services (FIRS) Chairman, Mohammed Nami, told the committee that social media companies like Twitter, Facebook and others will be included in the tax bracket and also planned to introduce road tax.

As revenue continues to dwindled and expenditure continues to rise, Buhari administration continues to resort to borrowing, which is increasing the debt profile of the state and increasing money spent on debt servicing.

For the ongoing 2021 budget, according to the Minister of Finance, Zainab Ahmed, N5.81trillion has been released so far for the 2021 budget, but N2.02trillion was to service debt.

In the proposed 2022 budget estimate of N13.09trillion expenditure, N3.60trillion will go into debt servicing, while the government will be borrowing another N5.22 trillion.

Borrowing 800 billion to fund supplementary budget

In July, the National Assembly passed the supplementary budget, however, out of the N982.7billion approved, the government is planning to borrow N802.1 billion from the Nigerian financial market.

The implication is that the government will be borrowing 80% of the said supplementary budget.

Buhari’s borrowing

As of June 2015 when President Buhari came in, the debt profile of Nigeria, according to the Debt Management Office, was N12.18trillion (Federal, states and FCT)

As of March 31st, the DMO pegged the borrowing at N33.1 trillion. The federal government alone has about N26 trillion of the profile of the entire loan.

This was before the country embarked on the N802.2 billion supplementary budget borrowing.

It would be recalled that in July, the National Assembly approved the borrowing of $6.1 billion loan request by the administration.

Lekan Olaleye, an Economist who spoke with DAILY POST, said the problem is not the debt, but the poor revenue generation and expenditure that has been increasing exponentially.

“Borrowing can help to bridge the gap in infrastructure as the government is claiming, of course, that is true. What is the economic viability of the projects? Can they refund the loans? Will future generations partake in the project. The point is, loans are like a future burden, it will be shifted to generation unborn. If you are giving them a liability, are you bequeathing assets?

“On the revenue aspect, the government’s revenue is struggling to keep up with the expenditure. In the 2022 MTEF, which is a rolling plan, the government is proposing N6.2trillion as recurrent expenditure and N3.60 as debt servicing. Mind you, there is a deficit of over N5 trillion. The implication is that the government is only projecting to generate about N8 trillion for the 2022 fiscal year. In fact, projected revenue is about an estimate, which the government may end up not meeting.

“If you look at the parameters in the MTEF, the oil benchmark is $57 per barrel. The government cannot control the price of oil, it could crash at any point in time. COVID-19 is on the rise, what happens in case of another lockdown? Will FIRS be able to meet up with its target?”

Despite the alarming rate of the increase in the debt profile, the National Assembly continues to approve the loans request of the government.

Also, the government is yet to implement the Steve Oransanye’s report despite promising to implement the report which will help to reduce the cost of governance.

Culled from the Daily Post News Nigeria

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Houston and Owerri Community Mourn the Passing of Beloved Icon, Lawrence Mike Obinna Anozie

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Houston was thrown into mourning on September 19, 2025, following the sudden passing of businessman and community advocate Lawrence Mike Obinna Anozie, who peacefully joined his ancestors. Immediate family member in Houston, Nick Anozie, confirmed his untimely death and expressed gratitude for the outpouring of love and condolences from both the Houston and Owerri communities.

Lawrence was born to Chief Alexander and Lolo Ether Anozie of Owerri in Imo State, Nigeria, and will be dearly remembered by family members, friends, and the entire Houston community.

An accomplished accountant, the late Lawrence incorporated and successfully managed three major companies: Universal Insurance Company, LLC, Universal Mortgage LLC, and Universal Financial Services. Through these enterprises, he not only built a thriving business career but also created opportunities for countless individuals to achieve financial stability. His contributions to entrepreneurship and community development will remain a lasting legacy.

According to the family, arrangements for his final funeral rites are in progress and will be announced in due course.

Lawrence will forever be remembered as a loving and compassionate man who dedicated much of his life to uplifting others. He helped countless young Nigerians and African Americans overcome economic challenges by providing mentorship, financial guidance, and career opportunities. His generosity touched the lives of many who otherwise might not have found their footing. A devout Catholic, he was unwavering in his faith and never missed Mass, drawing strength and inspiration from his church community. To those who knew him, Lawrence was not only a successful businessman but also a pillar of kindness, humility, and faith whose legacy of service and compassion will continue to inspire generations.

For more information, please contact Nick Anozie – 832-891-2213

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Enugu Revenue Leader Details Tax Plans, Commits to Responsible Fund Management

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In a bid to address rising public concerns and social media speculations about taxation in Enugu State, the Executive Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has provided clarifications on the government’s tax policies. During a press briefing in Enugu, Nnamani dismissed what he described as “false and misleading claims” and reassured residents that the government’s fiscal operations are firmly rooted in law, transparency, and public good.

Clarifying Misinformation and Affirming Legality

Nnamani opened the session by stressing that no taxes or levies in Enugu State are imposed outside the provisions of the law. “Taxes and revenues in Enugu State remain within the limits of the law. We do not impose any levies outside what the law permits,” he stated, pointing to the Personal Income Tax Act (as amended) as the guiding legal framework.

He explained that the ESIRS collects personal income tax through two lawful means: Pay-As-You-Earn (PAYE) for those in formal employment, and Direct Assessment for informal sector workers. While compliance among salaried workers has been largely smooth, the agency sometimes employs legal enforcement mechanisms to ensure compliance among self-employed individuals.

Formalising the Informal Sector

A key challenge, he noted, has been bringing the informal sector—especially market traders and transport operators—into the formal tax net. Upon assuming office, his administration discovered that an overwhelming 99% of informal sector actors were not remitting taxes to the state, largely due to the disruptive influence of non-state actors engaged in illegal collections.

In response, the government introduced a consolidated ₦36,000 annual levy for market traders. This amount, payable between January and March, covers all relevant state-level charges, including those by the Enugu State Waste Management Agency (ESWAMA), Enugu State Structures for Signage and Advertisement Agency (ENSSAA), storage fees, and business premises levies. “Once this amount is paid between January and March, the trader owes nothing else for that year,” Nnamani clarified. Traders who fail to pay by March 31 are subject to enforcement.

For street vendors operating outside structured markets, an annual levy of ₦30,000 applies, with ESWAMA charges handled separately. Transport operators such as Okada riders, Keke drivers, minibuses, tankers, and trucks pay via a daily ticketing system.

A Human-Faced Approach to Enforcement

Although the law allows for a 10% penalty on unpaid tax and an interest charge tied to the Central Bank’s Monetary Policy Rate of 27.5%, Nnamani disclosed that the state has adopted a softer, pro-business approach. Instead of the full punitive charges, a flat ₦3,000 penalty is applied in most informal sector cases to promote ease of doing business and encourage voluntary compliance.

Taxation and the Cost of Rent

Addressing growing concerns over rising rent, Nnamani rejected claims linking the trend to state tax policies. He described the issue as a national challenge influenced by supply and demand, rather than fiscal policy.

Citing personal experiences dating back to 2015, he observed that a shift in private development preference – from rental apartments to gated residential estates – has contributed to the housing squeeze. “If we had more high-rise buildings, rent would drop,” he noted. The state government, he added, is taking proactive steps through the Ministry of Housing and Housing Development Corporation to build mass housing and student hostels near institutions like ESUT and IMT, freeing up central city housing and helping moderate rents.

Technology, Transparency, and Trust

In line with its commitment to transparency and digital innovation, the ESIRS has launched a tax calculator on its official portal – www.irs.en.gov.ng – allowing residents to compute their taxes with ease and clarity. “This is about transparency and giving our people confidence,” he said, inviting residents to compare Enugu’s tools with those in more advanced states like Lagos.

Understanding the Cost of Development

Responding to concerns that Enugu has become one of Nigeria’s most expensive states, Nnamani acknowledged the perception but clarified that the temporary inflation is largely demand-driven. With Enugu undertaking widespread infrastructural renewal – including smart schools, primary health centres, and hospitality infrastructure – the surge in construction activity has led to increased demand for building materials like granite and rods, which are sourced from other states.

“Once these projects are completed, demand will drop, and prices will stabilise,” he assured. He emphasised that the projects are visible testaments to what taxpayers’ money can achieve when properly managed.

A Call for Mutual Understanding and Civic Partnership

More than a tax clarification, Nnamani’s address served as a reminder of the symbiotic relationship between citizens and government. He appealed for public understanding, noting that when citizens fulfil their tax obligations, the government can, in turn, provide essential services and infrastructure that uplift everyone.

His message was clear: responsible taxation, managed transparently and invested wisely, is the bedrock of sustainable development. From roads to schools and healthcare to housing, Enugu State is demonstrating how taxpayers’ money, when efficiently deployed, can improve lives and build the future.

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The Leadership Deficit: Why African Governance Lacks Philosophical Grounding

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Leadership across nations is shaped not only by policies but by the quality of the individuals at the helm. History has shown that the most transformative leaders often draw from deep wells of ethical, philosophical, and strategic thought. Yet, in many African countries—and Nigeria in particular—there appears to be a crisis in the kind of men elevated to govern. This deficit is not merely political; it is intellectual, philosophical, and deeply structural.

There is a compelling correlation between the absence of foundational wisdom and the type of leaders Nigeria consistently produces. Compared to their counterparts in other parts of the world, Nigerian leaders often appear fundamentally unprepared to govern societies in ways that foster justice, progress, or stability.

Consider the Middle East—nations like the UAE and Qatar—where governance is often rooted in Islamic principles. While these societies are not without flaws, their leaders have harnessed religious teachings as frameworks for nation-building, modern infrastructure, and citizen welfare. Ironically, many of Nigeria’s military and political leaders also profess Islam, yet the application of its ethical standards in public governance is nearly non-existent. This raises a troubling question: is the practice of religion in African politics largely symbolic, devoid of actionable moral guidance?

Take China as another case study. In the last four decades, China’s leadership has lifted over 800 million people out of poverty—an unprecedented feat in human history. While authoritarian in structure, China’s model demonstrates a deep philosophical commitment to collective progress, discipline, and strategic long-term planning. In Western democracies, especially post-World War II, leaders often emerged with strong academic backgrounds in philosophy, economics, or history—disciplines that sharpen the mind and cultivate vision.

In stark contrast, African leaders—particularly in Nigeria—are more often preoccupied with short-term political survival than long-term national transformation. Their legacy is frequently one of mismanagement, unsustainable debt, and structural decay. Nigeria, for example, has accumulated foreign loans that could take generations to repay, yet there is little visible infrastructure or social development to justify such liabilities. Inflation erodes wages, and basic public services remain in collapse. This cycle repeats because those in power often lack not just technical competence, but the moral and intellectual depth to lead a modern nation.

At the heart of the crisis is a lack of philosophical inquiry. Philosophy teaches reasoning, ethics, and the nature of justice—skills that are essential for public leadership. Nigerian leaders, by and large, are disconnected from such traditions. Many have never seriously engaged with political theory, ethical discourse, or economic philosophy. Without this grounding, leadership becomes a matter of brute power, not enlightened governance.

The crisis of leadership in Africa is not solely one of corruption or bad policy—it is one of intellectual emptiness. Until African nations, especially Nigeria, begin to value and cultivate leaders who are intellectually rigorous and philosophically grounded, the continent will remain caught in cycles of poverty and poor governance. True leadership requires more than charisma or military rank—it demands the wisdom to govern a society with justice, vision, and moral clarity. Without this, the future remains perilously fragile.

♦ Dominic Ikeogu is a social and political commentator based in Minneapolis, USA.

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