Wednesday brief: Buhari to borrow another $4bn. Is that a good thing?
+ Secessionists protest and Covid vaccine goes to church.
Good morning,
One of the company news that got me excited yesterday was from Flutterwave. They are launching a product that helps entrepreneurs incorporate a business without leaving their bedrooms. I haven’t checked it out myself, but it’s such a brilliant idea. I hope it catches on.
Meanwhile, let’s get down to this morning’s business. And, as always, one thing I ask of you is to share this briefing with someone you think might benefit. Thank you.
Is President Buhari’s borrowing good for Nigeria?
President Muhammadu Buhari has asked the National Assembly to approve another $4 billion loan.
This latest tranche of borrowing also includes a €710 million loan.
The money will be borrowed from the World Bank, the French Development Agency, EXIM Bank, and IFAD.
This administration is already infamous for almost tripling Nigeria’s debt burden. In June 2015, the country’s total debt stood at N12.12 trillion. As of March 2021, it was N33.10 trillion.
But borrowing isn’t necessarily a bad thing. Everybody borrows, including the almighty United States. The more pertinent question is, what are we borrowing for?
The latest borrowing is expected to finance “critical projects” that “will stimulate the economy and create job employment,” according to the President.
But are these critical projects economically viable? Will they actually stimulate and create job employment? Or, before we even get ahead of us, will the borrowed money be allocated appropriately to these critical projects?
The answers to these questions will determine whether Buhari’s borrowing is a good thing or not.
Secessionists storm UN HQ to demand breakup of Nigeria
Members of a coalition of secessionist groups on Tuesday held placards at the United Nations headquarters in New York demanding the split of Nigeria through a referendum.
The group’s argument is basically that an invading Fulani militia, backed by President Muhammadu Buhari, is carrying out ethnic cleansing “against the Indigenous Peoples of Nigeria”.
In a letter sent to the UN, the group asked the global body to act fast to avert “catastrophe and large refugee crisis.”
The group’s claims are, of course, an oversimplification of the herder-farmers crisis that has plunged Nigeria into an insecurity nightmare.
Orji Kalu: Meanwhile, the Senate chief whip has asked the federal government to grant amnesty to detained members of the secessionist group, IPOB, and associates of Yoruba Nation activist, Sunday Igboho.
Covid vaccines to be administered in Churches
The federal government says it has partnered with the Christian Association of Nigeria to provide Covid vaccines in churches across the country.
The move is expected to boost vaccination rates.
Religious leaders played a significant role in the success of polio vaccination in Nigeria and the government is hoping they can do the same for Covid.
Edo State: The government says it will begin restricting entry into government offices for unvaccinated civil servants from today.
Quote: “If you have to enter the state secretariat and other government offices, you must have your vaccination cards,” an official at the state’s ministry of health, Osamwonyi Irowa, said. “Those that cannot provide their COVID-19 vaccination cards may have to excuse us and be working from home, pending when a decision will be reached. As a state, we are doing everything possible to make sure that people don’t get infected.”
Related: Meanwhile, social distancing guidelines were binned as University of Benin students blocked a major highway in protest of a N20,000 increase in registration fees.
What else is happening?
VAT Dispute: The Rivers State Government has approached the Supreme Court to appeal a decision of the Court of Appeal that could delay its collection of value-added taxes instead of the Federal Inland Revenue Service (FIRS). Meanwhile, a VAT bill has scaled second reading in Ogun State. Lagos and Rivers States have already signed similar bills into law.
CBN: The apex bank says Infracorp Plc, its N15trn Infrastructure Fund, will be launched in October. The fund is expected to deploy private capital in building much-needed infrastructure across the country. The bank also plans to establish the Nigerian International Financial Centre in 2022.
Insecurity: President Buhari has asked the Senate to consider two bills designed to check the proliferation of arms and regulate the importation and exportation of explosives.
Border control: The Nigerian Customs says it is working on a mobile app that will help tackle smuggling and ensure that the right import duty is paid to the government.
Scam alert: Contrary to some reports, the Federal Fire Service says it is not currently recruiting.
Terrorism: The United Arab Emirates has reportedly designated six Nigerians as financiers of Boko Haram and other criminal activities.
Femi Gbajabiamila: The Speaker of the House of Representatives says he has no immediate plan to become the Governor of Lagos State.
And that’s it for today. Join me again tomorrow? And don’t forget to share this brief.