Good morning.
It’s a new year and we are discussing the central tension in the 2021 budget, depressing Covid projections and yeah, wait for it, Aliko Dangote’s ex-girlfriend.
The 2021 budget’s central tension
President Muhammadu Buhari signed the 2021 budget into law on Thursday, continuing a recent tradition of aligning the nation’s financial calendar with the start of a new year.
The budget, worth N13.6 trillion, pegs recurrent expenditure at N5.6 trillion (41.5%), capital expenditure at N4.1 trillion (30.4%). Other spending categories include debt servicing (N3.3 trillion) and statutory transfers (N496.5 billion).
One key aspect of the budget is how much it will be funded, not by revenues, but borrowing. The fiscal deficit is set at almost N5.2 trillion. That is, almost half of the budget will be funded by other people’s money.
“I assure you that all borrowings will be judiciously applied towards growth-enhancing critical expenditures,” President Buhari said on Thursday.
Lawan: The National Assembly appears to be on board with the President as the Senate President affirmed the Executive’s plan to borrow, although with a caveat - the borrowings must be “applied on capital projects for the development of the country.”
Explainer: Borrowing for infrastructure is not necessarily bad economics, but projects must be strategically chosen, executed efficiently and be sustainable enough to improve economic productivity.
Related: The Nigerian Stock Exchange closed the year impressively with a 50% annual increase, the highest in 17 years.
The grim reality of Covid in 2021
I’m curious. Where and how did you cross over into 2021? Despite Covid restrictions, a lot of Nigerians still attended religious services - physically and virtually - threw street parties and posted celebratory messages on social media. In my neighbourhood, somewhere in Lagos, fireworks littered the night sky.
But, no matter, Covid is still with us and health authorities expect a spike in the number of new cases amid the frenzied celebrations.
NUT: Teachers said on Thursday that they will not resume on January 18 as, mandated by the federal government, if the spike in new Covid cases continues.
NMA: President of the medical association, Professor Innocent Ujah, has suggested there is a shortage of oxygen in health facilities across the country, as Covid cases persist.
NCDC: The disease control agency reported 1,031 new cases and 11 deaths on Thursday.
Good news: The WHO has approved the Pfizer/BioNTech COVID-19 vaccine for “emergency use”. The vaccine is said to be 90% effective.
Dangote’s ex-girlfriend?
No, I can’t confirm the story but it’s too juicy a gist to pass up.
So, it appears Africa’s richest man, Aliko Dangote, is also a Yoruba demon. A woman claiming to have dated him put up an Instagram post on Thursday, narrating how he broke her heart “in 1000 pieces” but “learned more from him than any person” she had ever met.
Quote: "He changed my perspective on work ethic and patience. Once my mindset changed the universe gravitated me to people that uplifted me and increased my net worth mentally and financially.”
Significance: You mean why Dangote having an ex got us all so excited? The smartest answer I can think of right now is evolution. We are all wired to be gossips, thank you.
What else is happening?
Ireland: A Nigerian man, George Nkencho, 27, was shot by police at least three times, leading to protests calling for justice. The Nigerians in Diaspora Commission described the shooting as “wicked”.
Peter Obi: The former Anambra State Government has faulted Nigerians who celebrate criminality and praise economic looters. “We need to practice genuine democracy,” Obi said on Thursday. “It is not just the political class, but the people as well. People need to be part of this change.”
Kaduna: The State Government demolished a hotel for allegedly planning to host a sex party.
Insecurity: The military said it killed no fewer than 2,000 criminals between March and December 2020.
White House: Nigerian-American, Osaremen Okolo, has been named as a COVID-19 policy advisor by the incoming Biden administration.
Brexit: The UK has entered into a new era after its formal separation from the European Union.
Extra: President Buhari will address the nation today at 7 am, by when I hope you’ve finished reading this briefing. Watch here.
And that’s it for today. See you guys on Monday.