PDP blasts Buhari over declining gains of democracy

The Peoples Democratic Party (PDP) has hits hard on President Muhammadu Buhari, accusing the president of reducing the gains of democracy in the country. PDP Board of Trustees (BoT) complained that there has been systematic decline in the gains of democracy recorded during the 16 years of the PDP government in developing the electoral process to ensure transparency and credibility.

The PDP BoT in a communique after its 65th meeting, expressed sadness over the manner all the gains of democracy in Nigeria were subverted and eroded by the President Muhammadu Buhari administration.

PDP BoT Chairman, Senator Walid Jibrin, Waziri Nasarawa, reading the communiqué, commended the PDP and the candidates in the 2019 general elections for bracing the odds and strengthening democratic rules and culture in spite of what he considered the unprecedented level of militarisation.

Walid Jibrin protested that the level of militarisation ran clearly against the letters and spirit of the judgment of the Supreme Court which said that the military had no business in the conduct of elections. He maintained that the PDP BoT is in support of efforts by the party’s candidates who had challenged or were going to challenge the outcome of their elections at the tribunal.

Jibrin declared: “The BoT also wishes to assure Nigerians and all members of our great party, especially those whose mandates were openly stolen, that the BoT stands by them at all times in the quest to reclaim the mandates freely given to them by the good people of Nigeria.

“The BoT notes with dismay, the systematic erosion of the gains made under the PDP administration in enhancing the credibility of the electoral process over the years, and frowns at the way all those gains are being distorted and eroded by the present administration.

“The BoT calls on all Nigerians, especially our teeming supporters, to stay calm and be law-abiding, as we believe justice will take its proper place despite the traumatisation of the judicial arm of government by the present administration.”

PDP BoT members in attendance at the meeting included a former President of the Senate, Senator Adolphus Wabara; PDP National Secretary, Senator Ibrahim Tsauri; Senator Stella Omu; a former Minister of Women Affairs, Hajia Zainab Maina; Tanimu Turaki (SAN); a former PDP Secretary, Prof Wale Oladapo, and a former Deputy Governor of Lagos State, Kofoworola Bucknor-Akerele.

Nigeria’s debt hits N24.38tn

Nigeria’s total public debt rose to N24.38 trillion as at December 31, 2018.

Ms Patience Oniha, Director-General of the Debt Management Office (DMO), at a media conference on Thursday in Abuja, noted that the figure comprised of debt owed by the Federal Government, States and Federal Capital Territory (FCT).

The DG narrated that the figure was N2.66 trillion higher than the N21.7 trillion recorded as at Dec. 31, 2017, and represents a year-on-year growth of 12.25 per cent.

According to her, “Further details provided in the report showed that more progress was made towards achieving the target Debt Stock mix of 60 per cent (Domestic) and 40 per cent (External).

“The share of domestic debt dropped to 68.18 per cent from 73.36 per cent as at Dec. 31, 2017 thereby achieving a mix of 68.18 per cent and 31.82 per cent in the debt stock.”

Oniha explained that the federal government loans accounted for 78 per cent of the figure, while states and the FCT accounted for 22 per cent.

The Federal Government, she noted, has an external debt stock of N6.4 trillion and Domestic at N17.11 trillion, culminating in N19.23 trillion, while the states and the FCT have external debt of N1.25 trillion and N3.85 trillion domestic debts, culminating in N5.15 trillion.

She highlighted that the Federal Government’s domestic debt stock includes N331.12 billion Promissory Notes issued to Oil Marketing Companies and State Governments in December 2018.

She observed that the strategy of using relatively cheaper and longer tenor external funds was achieving the expected objectives, some of which were to create more space for other borrowers in the domestic market.

“Other objectives are to extend the average tenor of the debt stock in order to reduce refinancing risk and increase external reserves,” she added.

The DG further noted that the implementation of the strategy led to an injection of N855 billion through the redemption of Nigerian Treasury Bills (NTBs) in 2018.

Oniha maintained that it also affected a general drop in the Federal Government’s borrowing rate in the domestic market from over 18 per cent per annum in 2017 to between 14 and 15 per cent per annum in 2018.

She stated that some of the major plans of the DMO in 2019 were to undertake more of project-tied borrowing and access more external borrowing from concessional sources.

The DG revealed that there are plans to issue 30-year Federal Government Bonds for the first time.

According to her, “The issuance of the bond will meet the needs of annuity funds and other long term investors while also developing the domestic capital market and reducing the re-financing risk of the Federal Government.

“Another area of focus will be the management of risks associated with the debt stock to mitigate debt service costs.”

Oniha maintained that the Federal Government would borrow N1.6 trillion to finance the 2019 budget deficit.

She said N824 billion of the amount would be borrowed domestically through Federal Government Bonds, Sukuk, Green Bonds and Savings Bonds.

The other N824 billion is expected to be financed externally from concessional sources as they are cheaper and are longer-termed funds for infrastructure, she added.

Oniha said that the planned N15 billion Green Bonds and the infrastructure bonds would be issued in the second quarter of 2019.