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Endless borrowing: Experts worry, Okonjo-Iweala, Ahmed differ on Nigeria’s debts

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• We will borrow more to build infrastructure, Federal Govt insists

• Nigeria’s debt-to-GDP ratio rose from 29% to 35% – WTO boss

• Funds spent on debt servicing by govt worrisome, say experts

The Minister of Finance, Budget and National Planning, Zainab Ahmed, and the Director General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, on Wednesday, differed on the nation’s debt-to-Gross Domestic Product ratio.

Experts who spoke to our correspondents also  expressed worry over the nation’s rising debt profile.

While Ahmed put the debt-to-GDP ratio at 29 per cent, Okojo-Iweala said it had risen to 35 per cent.

Both the minister and the WTO boss spoke at the African Development African Development Bank High Level Knowledge Event with the theme: ‘From Debt Resolution to Growth: The Road Ahead for Africa’ which held virtually on Wednesday.

Ahmed also disclosed that Nigeria planned to borrow more money to fund its infrastructure capacity.

This is in spite of voices calling on the government to halt borrowing and concentrate on other means of raising funds for the infrastructure needs of the country.

According to the Debt Management Office, Nigeria’s total public debt portfolio rose from N12.12tn in June 2015 to N33.11tn as of March 31.

Ahmed said the government was enforcing fiscal discipline to expand its fiscal space so that it could continue to service its debts and borrow more to build the nation’s infrastructure capacity.

She said, “As of Q1 2021, we have about a 29 per cent debt-to-Gross Domestic Product ratio. In terms of level of debt, we are still very healthy, and sustainable.

“We are struggling with revenues, which is what we need to pay our debts. We have put in place a number of measures to enhance domestic revenue.

“We are cutting costs, we are improving the ease of doing business, trying to leverage private sector resource capacity to invest in infrastructure to reduce government spending.

“We are working on increased transparency in public financial management; we are enforcing fiscal discipline to expand our fiscal space so that we can continue to service our debt and borrow more to build our infrastructure capacity.”

Ahmed also said that the total debt profile did not include that of some states, and that the federal government was making moves to correct that.

“In Nigeria we’ve been making a lot of effort on a quarterly basis to disclose all the debts that we have and to also indicate what the debt service is.

“Currently, we are working on including other state-owned debts that have not been included in public debt for the purpose of transparency. It is important and will help us going forward.”

However, Ngozi Okonjo-Iweala, who also attended the AfDB’s event, differed with Ahmed on the nation’s debt-to-GDP ratio.

The WTO boss who had been Nigeria’s Minister of Finance in the past said the nation’s debt to GDP ratio had risen from 29 per cent to 35 per cent.

She said, “Middle-income African countries have also seen their debt burdens increase sharply. Amid falling prices and demand for oil worldwide, Nigeria’s debt to GDP ratio rose from 29 to 35 per cent; Algeria from 46 to 53 per cent, and Egypt from 84 to 90 per cent, Angola from 107 to 127 per cent.

“Debt to GDP ratios also increased for non-oil exporters including South Africa from 62 to 77 per cent. Morocco from 65 to 76 per cent.”

Okonjo-Iweala also said that scarce foreign exchange in certain African countries was creating scenarios where the governments were using scarce forex to fund the fund debt repayment rather than on capital investment.

“Even where debt to GDP or where debt to export ratios were not very high, tighter access to dollar financing because of the COVID-19 crisis means we are already seeing places where scarce foreign exchange is going to fund debt repayment instead of capital investment,” she added.

A professor of economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Sheriffdeen Tella, described as a cause for worry the amount being spent by the government on debt servicing.

He said, “What is important is not even the debt-to-GDP ratio but the ability to pay, and we are presently in serious problem with payments.

“If they want to borrow money from internal sources, that could be understood. But if they are going international again, I think it is not proper because presently the level of international borrowing is what is giving them problem now.

“We are selling oil and making money but we are using that money to service the debts that we owe, and that is unfortunate.

Culled from the Punch News Nigeria 

Houston

Membership Surge Continues as Dr. Nkem Ugwu Joins People’s Club

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Following a successful induction ceremony, the First International Branch continues to attract new members drawn to its tradition of friendship, service, culture, and community

SUGAR LAND, TEXAS — The Sugar Land People’s Club of Nigeria International (SLPCNI) is continuing its membership expansion following its recently concluded induction ceremony, with Dr. Nkem Ugwu becoming one of the latest community members to join the organization.

Ugwu, a Sugar Land resident originally from Nsukka, Enugu State, Nigeria, is an entrepreneur and mother of three sons, a mother-in-law, and a grandmother. She describes service to others, family, and community engagement as important parts of her personal and professional life.

Grand Patron Ide Obinna Nnanyelugo Mbachu addressing the September Conference of the Sugar Land PCNI

Her membership comes on the heels of the branch’s successful bi-annual induction ceremony, during which 16 new members were formally sworn in by PCNI National President Atty. Fidelis Onyebueke. The celebration attracted national leaders, patrons, and members representing branches from across the People’s Club network.

Photo from left: Hon. Chief Sir Michael Okeke; Hon. Anaeto Okakpu “Oranwezuluaku”; Grand Patron Ide Obinna Nnanyelugo Mbachu; Hon. Dr. Nkem Ugwu ; Hon. Prof. Chris Ulasi, Group Chairman; Hon. Chief, Sir Basil Mbuba; Hon. Chief Sir Dr. Uche Egbuchuam “Akudo World Wide.”

Ugwu said joining the organization provides an opportunity to develop meaningful relationships while contributing to its mission.

“I am truly excited and honored to join the prestigious People’s Club of Nigeria International, Sugar Land Branch. I look forward to getting to know fellow members, building lasting friendships, and becoming actively involved in this vibrant and welcoming community. I am especially drawn to the Club’s tradition of fellowship, service, and mutual support, and I hope to contribute my experience, energy, and passion for serving others to its continued growth.”

Grand Patron Ide Obinna Nnanyelugo Mbachu welcomed Ugwu, describing continued interest in membership as encouraging for the historic First International Branch.

Membership Chairperson Hon. Chief Udoji Achebe and Hon. Ndidi Chidume

“When people of accomplishment and community spirit continue to identify with our organization, it tells us that the values upon which People’s Club was built remain relevant. We welcome Dr. Ugwu and look forward to the experience and fellowship she brings to our family.”

Hon. Prof. Chris Ulasi, Group Chairman, said the branch’s recent induction helped showcase an organization that continues to combine Nigerian cultural heritage with community engagement in Houston.

“Our successful induction created tremendous enthusiasm, but our focus goes beyond ceremonies. We are building a stronger organization rooted in friendship, responsibility and service. Dr. Ugwu’s decision to join reflects that continuing momentum.”

One of the meeting hosts, Hon. Professor Keih George, introduces the co-meeting hosts.

Membership Chairperson Hon. Chief Udoji Achebe said the branch remains interested in individuals prepared to participate actively in its programs and fellowship.

“Membership is about belonging, but it is equally about participation and contribution. We are delighted to welcome Dr. Ugwu and other prospective members who share the principles and aspirations of People’s Club.”

For SLPCNI, the growing interest following its induction represents another chapter in the evolution of a branch with a special place in the organization’s history.

And for Ugwu, it marks the beginning of a new journey—one centered on friendship, community, and service.

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Houston

Membership Interest Soars After Sugar Land People’s Club’s Successful Induction

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Branch considers annual induction as August celebration of prestige, culture and comradeship inspires growing community interest

HOUSTON, TEXAS — Membership requests to the Sugar Land Branch of People’s Club of Nigeria International (PCNI) have risen significantly following its successful August induction ceremony, prompting the organization to consider making the event an annual affair.

Group Chairman, Hon. Prof. Chris Ulasi, confirmed the surge in interest, saying the branch has received numerous inquiries from prospective members since the ceremony that formally admitted 16 new members to the organization.

“The response since the induction has been remarkable. We have seen a significant increase in people asking about membership and how they can become part of the People’s Club family,” Ulasi said. “Many of them attended the event or heard about it afterward and were impressed by the fellowship, dignity, cultural pride, and genuine comradeship they witnessed.”

Ulasi said the development, including a possible change from the current bi-annual induction arrangement to an annual ceremony, would be discussed at the branch’s September general meeting.

The renewed interest in membership comes on the heels of an elaborate induction that attracted national officers, patrons, branch chairmen, members, and guests from across the People’s Club family.

National President, Atty. Fidelis Onyebueke, who presided over the swearing-in of the 16 inductees, described the event as a total success and commended the Sugar Land Branch, PCNI’s First International Branch, for what he called an exceptional celebration of fellowship, culture, service, and unity.

During the formal ceremony, each inductee was invited to the podium to take the membership oath and receive a certificate from the national president, who was assisted by PCNI Attorney Chukwuka John Ukadike.

Beyond the admission of new members, however, the event offered guests a public display of the traditions that have historically defined the People’s Club: prestige, love, service, and comradeship. Those characteristics were reflected throughout the ceremony, from the reception of national officers and interaction among members to the formal induction, cultural presentation, and extended social celebration that followed.

Grand Patron, Ide Obinna Nnanyelugo Mbachu, said the growing interest in membership was an indication that the organization’s values resonated with guests who experienced the event.

“What people witnessed was the character of People’s Club—the love among members, respect for one another, willingness to serve, and the comradeship that brings us together,” Mbachu said. “Prestige is not simply about appearance; it is about how we conduct ourselves and how we treat people. When the community sees those values demonstrated, it is understandable that others would want to become part of the organization.”

The cultural presentation was among the most visible features of the evening. Women members and associates appeared in coordinated traditional attire featuring red-pinkish blouses with matching head ties and white wrappers bearing the PCNI logo. The men wore all-white outfits complemented by customized PCNI cap pins and distinctive PCNI sashes worn as neckpieces.

The coordinated appearance created a colorful expression of Nigerian cultural identity while reinforcing the sense of unity that characterized the gathering.

As the formal program concluded, the ceremony transitioned into an extended social celebration. Members, inductees, and guests shared food and drinks before taking to the dance floor, with music and festivities continuing into the early hours of Sunday.

The presence of members and officials from different branches also gave the ceremony broader significance for Sugar Land, whose status as the First International Branch places it prominently in PCNI’s history outside Nigeria.

For Ulasi, however, the strongest indication of the event’s impact came afterward, as inquiries from prospective members continued to reach the branch.

He said that while the organization welcomes the increased interest, prospective members would be expected to understand the responsibilities and traditions associated with belonging to the People’s Club. “Membership is about much more than attending social events,” Ulasi said. “It is about service, friendship, responsibility, and commitment to one another. Those are the values we intend to preserve as the branch continues to grow.”

The September meeting is expected to consider how the branch will respond to increased membership interest and whether the success of the August ceremony provides sufficient grounds to move to an annual induction schedule. For the Sugar Land Branch, the aftermath of the August induction may prove as significant as the ceremony itself: 16 members entered the People’s Club that evening, but the celebration appears to have inspired many more to seek a place within its ranks.

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Houston

People’s Club Sugar Land Celebrates Landmark Induction of 16 New Members

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National President Atty. Fidelis Onyebueke hails First International Branch for a spectacular celebration of culture, fellowship and service

HOUSTON, TEXAS — The Sugar Land People’s Club of Nigeria International (PCNI), the organization’s First International Branch, has been declared a total success following a spectacular bi-annual induction ceremony that brought together national leaders, branch chairmen, patrons, members, and guests from across the People’s Club family.

National President Atty. Fidelis Onyebueke, who presided over the swearing-in ceremony, commended the Houston branch for delivering an outstanding event that reflected the organization’s enduring traditions of friendship, fellowship, service, and community.

Hon. Prof. Chris Ulasi, SLPCNI Chairman, leads the grand entrance of the national leadership during the induction ceremony, followed by National President Atty. Fidelis Onyebueke and his wife.

“The Houston branch has once again demonstrated what People’s Club represents at its very best. This was a beautifully organized and highly successful event, rich in culture, fellowship, dignity, and unity. I commend the leadership, members, and entire Houston family for an exceptional celebration worthy of the First International Branch.”

The ceremony witnessed the formal swearing-in of 16 new members, each of whom was individually invited forward to receive a certificate of membership from the national president. Onyebueke was assisted in administering the oath by PCNI Attorney Chukwuka John Ukadike.

Group Photo: Women Members and Associates of SLPCNI

The inductees joined an impressive gathering that reflected the diversity and strength of the People’s Club community. Members and guests traveled from various branches across the United States and beyond, transforming the Houston ceremony into a truly international gathering.

The cultural elegance of the occasion was equally striking. Women appeared in colorful, coordinated traditional attire, featuring red-pinkish blouses and matching head ties paired with white wrappers prominently designed with the PCNI logo. The ensemble created a distinctive and dignified traditional look. Men complemented the occasion with elegant all-white outfits, customized PCNI cap pins, and special PCNI sashes worn as neckpieces.

Among those in attendance were Grand Patron Ide Obinna Nnanyelugo Mbachu; Hon. Prof. Chris Ulasi, Group Chairman; patrons and chairmen from various branches, and People’s Club members representing chapters across the globe.

The formal proceedings eventually gave way to an extended celebration of friendship and camaraderie. Food, drinks, music, and dancing carried the festivities well beyond the scheduled program, continuing for hours into the early morning of Sunday.

For the Houston branch, the celebration represented more than the admission of new members. It reaffirmed the historic importance of the First International Branch and demonstrated the continuing strength of People’s Club as a transnational fellowship rooted in Nigerian identity, friendship, service, and mutual support.

The successful ceremony also underscored the organization’s ability to bring generations and branches together while preserving the cultural traditions that have sustained its membership across continents.

By the end of the celebration, Houston had delivered more than an induction. It had delivered a memorable demonstration of unity, culture, friendship, and organizational excellence—an event that fully embodied the People’s Club spirit.

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