Tinubu: Nigeria Cannot Continue Debt Servicing with 90% of Revenue
· Promises world class remuneration for judicial officers
· Senate unfolds agenda to increase Nigeria’s IGR, tackle debt profile
· Plans fresh legislation on solid minerals to generate $3bn annually from sector
Deji Elumoye, Alex Enumah, Sunday Aborisade in Abuja and Dike Onwuamaze in Lagos
President Bola Tinubu has declared that Nigeria will no longer sustain an economic philosophy that ensures the wastage of 90 per cent of its revenue on external debt service amid many development challenges facing the country. Tinubu said this yesterday in Abuja while declaring open the annual conference of the Nigerian Bar Association (NBA).
The president spoke on the same day the senate unfolded a comprehensive strategy that would enable the executive arm of government to generate the required revenue to liquidate Nigeria’s debt profile and adequately fund the annual national budget.
Speaking extempore to a gathering of about 16,190 lawyers in attendance, Tinubu asked, “Can we continue to service external debts with 90 per cent of our revenue?
According to him, “It is a path to destruction. It is not sustainable. We must make the very difficult changes that are necessary for our country to get up from slumber and be respected among the great nations of the world.”
He stressed that the prosperity Nigerians required would only occur once poverty was banished from the society with the focused cooperation of Nigeria’s private sector leaders, many of whom were present at the opening ceremony of the conference.
Speaking on the theme of the conference, “Getting it Right: Charting the Course for Nigeria’s Nation-Building,” Tinubu emphasised that hard decisions must be taken to set the country on a growth trajectory, despite the initial pains.
He said, “We cannot have the country we desire without the reforms we have initiated. It is painful at the beginning, in the short and medium term, but we must do what we have to do to take this nation to its great destiny.
“It is not about you and it is not about me. It is about our generations yet unborn, for whom we must bequeath a great and prosperous country.”
Against the backdrop of the renowned judicial reforms he undertook as Lagos State governor between1999 and 2007, Tinubu renewed his commitment to deal conclusively with the pressing issue of remuneration for judicial officers and legal practitioners. He said true justice reform must begin with world-class salaries and benefits for legal professionals in Nigeria.
He stated, “You are learned. I want to learn. Why are we so blessed and we are still lacking? We must have a change of attitude and a change of our mind-set. We accuse our nation and its previous leaders.
“We complain a lot of the past. Is that the solution? No! Let us look forward and be determined! God has given us what we need. We must work hard with determination to make our country great and it begins with you who are seated here with me.”
The president, who stated that a new Nigeria was possible with his renewed hope agenda, said the bold steps his administration was taking to find lasting solutions to the challenges confronting the country would only yield the desired results with the cooperation of all and sundry.
“I am not cynical, I am factual”, he said, adding, “The critical and bold initiatives embarked upon (requires) collaboration and cooperation of the private sector.
“We are so blessed and we are still lacking, change of mind-set is what we need. We accused our previous leaders, we complain too much about the past, it is not the solution, we must look forward, God has given us creative mind and will.”
The president charged members of his cabinet present at the occasion, to hit the ground running with the NBA’s theme, to demonstrate his administration’s resolve to operate with a change of attitude in approaching governance.
To Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike, the president said, “I want to ride on your metro-line, if I ask for free, don’t give me, but deliver for the great majority.”
While calling on Nigerians to arise and build the nation, he promised to do his best to turn around the situation in the country.
Referring to the keynote address delivered by Chairman of United Bank for Africa Plc and Heirs Holdings, Mr. Tony Elumelu, who he praised for setting an agenda for economic growth and development, Tinubu bemoaned the inability of the country to eradicate poverty and tackle poor electricity supply, despite having abundance of gas. He declared that his administration would ensure that Nigeria generated and distributed the electricity the economy required to thrive.
Tinubu stated, “Yes, it is a shame not to have adequate electricity for the majority of homes in Nigeria and to power our industries. How can we address poverty without electricity? We can take many people out of poverty with uninterrupted electricity supply. Poverty is not acceptable, and we must banish it.”
Earlier in his welcome address, NBA President, Yakubu Maikyau, expressed the confidence of the association in Tinubu’s ability to deliver good governance to Nigeria because of his pedigree and past track record of excellent performance in Lagos State, where he was governor between 1999 and 2007.
Maikyau stated, “President Tinubu got it right in Lagos, and it is our considered expectation that as President of Nigeria, you will not only replicate your achievements in Lagos, but surpass them for our country.”
In his address, Group Chairman, United Bank for Africa and Founder, Tony Elumelu Foundation, Elumelu, in a keynote address, stated that the task of, “Transforming Nigeria is a journey that demands our collective dedication, building across political affiliations, ethnic differences, and socioeconomic differences.”
While stating that building a new Nigeria was not the responsibility of government alone, Elumelu stressed that great nations started with great people and not necessarily great leaders. He pointed out that Nigerians outside the shores of the country “are doing great but unfortunately, there is a huge challenge at home.”
According to him, “We champion the successes of Nigerians globally – in international leadership positions at the WTO, at the UN, at the African Development Bank, at the Afreximbank, in technology, in music and entertainment, in business, in arts and in media, in film, in sports. Indeed, in virtually every human endeavour, Nigerians excel.
“We live in a world, where the UK Secretary of State for Business and Trade grew up in Lagos and the United States Deputy Secretary of the Treasury, was born in Ibadan.
“In business, the Nigerian private sector is showing globally our capability, our ingenuity, our institutionalisation.
“We have global businesses with Nigerian origins: let me name one – UBA, the United Bank for Africa, the only African bank that operates in the USA as a deposit taking bank.
“We are now in Dubai, Paris, and London – and just as importantly 20 other countries in Africa – who would have thought 20 years ago, that Nigeria would be home to Africa’s global bank!
“But these successes, these role models are too few, too rare.”
To remedy the situation, Elumelu called on the private sector, philanthropies, civil society, and, indeed, all citizens to come together and be empowered, “as real, valued and executing partners for this national renewal, this nation building.”
Elumelu also called for urgent support to be giving to the youth, especially, in the area of entrepreneurial development, in order to restore hope of a better tomorrow.
He explained, “When my wife and I committed $100 million to help democratise luck and empower our youth, through the Tony Elumelu Foundation, giving annual non-refundable grants of $5,000 seed capital to each beneficiary, now received by over 18,000 young Africans, it was not out of an abundance of wealth.
“Rather it was our own contribution in spreading prosperity and making the world a better and safer place for all.”
Besides the youth, Elumelu called for investment in security, women and the power sectors, which, according to him, required new regulatory structures that rewarded success, and delivered to the people, schools, hospitals and industries the sustainable, robust power supply that the country so urgently needed.
“Is it not ironic that a country with abundant gas resources cannot optimally operate its power plants due to lack of gas!” he stated.
Furthermore, the foremost entrepreneur/banker urged Nigerians to invest in brand Nigeria, adding that he owes everything he has and has become to Nigeria. He said despite the current challenges, Nigeria remained a great country with great people.
He stated, “Let us be proud of our country. In Washington, in Singapore, wherever you walk, you see homes, shops, offices proudly displaying their national flags. Do you see this even in government agencies here, even less in private homes or corporate places?
“Let us invest in Nigeria – so we are respected abroad and at peace and prosperous at home.
“When we speak, as we rightly do, of nation building, that is the Nigeria I dream of – it is the Africa I dream of.
“I know that with the audacity, courage, support, the goodwill, the resilience, and the dedication of those in this room, it is a dream that will also become our reality and in our lifetime.
“We know Nigerians can talk, we know – and I am surrounded today by advocates – that we can argue and dispute, but now we must act.
“There is an urgency, driven by our enormous younger generation, by the threat of climate change, by the clocks ticking on our natural resources, which will soon be left behind, as the world races towards green economy.
“In conclusion, let us approach the task of nation-building with unwavering determination, guided by the principles of unity, inclusivity, and progress.
“Let our pursuit of nation-building be characterised by unwavering determination, empathy, and the commitment to create a legacy of progress, unity, and hope for generations to come.”
Senate Unfolds Agenda to Increase Nigeria’s IGR, Tackle Debt Profile
The senate unfolded a comprehensive strategy that would enable the country to generate the required revenue to liquidate Nigeria’s debt profile and adequately fund the annual national budget.
Specifically, the upper chamber said the informal sector and solid mineral development would be the fulcrum of its plan to revive the country’s economy. It said it would expedite action on the Nigerian Minerals and Mining Act (Repeal & Re-enactment) Bill, 2023 (HB. 87) read by former Senate Leader, Senator Ibrahim Gobir, for the first time on May 27, 2023.
The bill is expected to replace the old legislation guiding mining in Nigeria, which the country has been operating since 2007, known as the Nigeria Mineral and Mining Law, that has become obsolete.
Chairman, Senate Committee on Finance, Senator Sani Musa, disclosed this in a statement made available to THISDAY yesterday in Abuja.
The senate panel said it was seriously looking at the informal sector, which constituted about 80 per cent of the Nigerian economy.
Musa, who represents Niger East Senatorial District, said his committee would carry out necessary legislative actions to empower the informal sector, with spotlight on mining.
He added, “The informal sector, particularly the mining industry, is a hidden gem in our revenue potential. This was corroborated by Ministry of Mines and Steel Development (MMSD) that the solid minerals have the capacity to generate about $3 billion annually.
“We will dedicate our efforts to understanding and nurturing this sector with appropriate legislation with emphasis on formalising artisanal and medium-scale mining activities.
“This strategic move will bring economic benefits while promoting safer and more responsible practices.
“We will harness and raise revenue sources from both the blue marine and the creative economies, by setting targets.
“The committee will legislate to encourage regulations of consumption and production, facilitate enabling environment through legislation for domestic industries to develop and stimulate economic growth through direct foreign investments inflow.”
The senate committee further pledged that it would uphold fiscal discipline, which it noted, was pivotal to the country’s financial health.
The statement said, “As Senate Finance Committee, we will fasten our commitment to prudent revenue sourcing.
“We will ensure that every income earned is accounted for so that our nation’s priorities and development goals can be addressed.
“The committee will ensure that the annual budget aligns with the Medium-Term Expenditure Framework and fiscal strategy paper to ensure a coherent roadmap, bridging medium-term aspirations.”
The committee noted that the Nigerian economy currently stood at a critical juncture, navigating through a complex web of economic challenges that necessitated strategic and informed policy responses.
It explained that the recent removal of fuel subsidies had added to the burden felt by many citizens, underlining the urgency for comprehensive measures that would stabilise the economy.
The measure, it added, would ensure equitable access to basic necessities and opportunities for all segments of the society.
It said the country “is faced with dual challenges of rising debt and insufficient revenue which demand our immediate attention”.
