₦airaland Forum

Armed bandits have attacked Magarya community in Zurmi Local Government Area of Zamfara State.

DAILY POST gathered that eleven people, including seven mobile police officers and four civilians, were killed.

Three cars, including one belonging to the district head of Magarya, who is also the brother of the former speaker of the Zamfara State House of Assembly, Nasir Magarya, were also destroyed.

It was also gathered that chairs in the parlour of the former speaker’s house were set ablaze.

According to a resident of the area, Ahmad Umar, Magarya Model Primary School was set ablaze, and many people sustained various degrees of injuries.

The State Police Command’s spokesman, ASP Yazid Abubakar, could not be reached at the time of filing this report.

*Borrowing rises 117% YoY

*Analysts list impact on inflation, businesses, interest rate

The Federal Government borrowed N20.1 trillion from domestic investors in the first year of President Tinubu’s administration, representing year-on-year YoY increase of 117 per cent from the previous year, prompting concerns over impact on the economy including likely additional pressure on inflation, increased debt service cost and higher borrowing cost from businesses.

Analysts noted that the sharp increase in Federal Government’s borrowing has the potential to compound the historic high inflationary trend in the country which may lead to further interest rate hikes by the Central Bank of Nigeria, CBN and by extension increased cost of borrowing for businesses and individuals.

The Federal Government borrows from the domestic investors through issuance of FGN Bonds, FGN Savings Bonds, and Sukuk Bonds by the Debt Management Office, DMO. In addition to these are the Nigeria Treasury Bills, NTBs, issued by the CBN on behalf of the FG.

Financial Vanguard analysis of data from the DMO and CBN showed that in the 12 months ending May 31st (June 2023 to May 2024), also the first year of President Bola Tinubu, the FG borrowed N20.09 trillion through these instruments, representing YoY increase of 117 per cent from the N9.275 trillion borrowed in the previous 12 months, namely June 2022 to May 2023.

Most of the increase in borrowing was through the NTBs auctions conducted by the CBN, which also constituted 66 per cent of FG’s domestic borrowing during the period.

Borrowing details

According to data from CBN, FG’s borrowing through NTBs rose YoY by 188 per cent to N13.235 trillion in the 12 months ending May 2024 from N4.592 trillion in the 12 months ending May 2023.

FG’s borrowing through the monthly FGN Bond auctions, which constituted 32.8 per cent of total domestic borrowing during the period, rose, YoY by 42 per cent to N6.476 trillion in the 12 months ending May 2024 from N4.537 trillion in 12 months ending May 2023.

FG’s borrowing through Sukuk Bonds, which accounted for 1.7 per cent of total domestic borrowing during the period, rose, YoY by 169 per cent to N350 billion in the 12 months ending May 2024 from N130 billion in the 12 months ending May 2023.

FG’s domestic borrowing through FGN Savings Bonds accounted for 1.5 per cent of total borrowing during the period, also spiked, rising YoY by 116 per cent to N29.17 billion in the 12 months ending May 2024 from N16.07 billion in the preceding 12 months ending May 2023.

Interest rate hike

Among other things, the 117 per cent YoY increase in FG’s domestic borrowing in the 12 months ending May 2024 was driven by investors’ response to the high interest rate regime during the period following hike in the Monetary Policy Rate, MPR by the CBN.

Analysis showed that the average MPR rose to 20.32 per cent in the 12 months ending May 2024, representing 4.11 percentage points increase from 16.21 per cent in the preceding 12 months ending May 2023.

As a result, the average interest rate on NTBs rose to 9.1 per cent in 12 months ending May 2024, representing 5.1 percentage points from 4.0 per cent in the preceding 12 months ending May 2023.

In the same vein, the average interest rate on FGN Savings Bond rose to 17.91 per cent at the May 2024 auction from 10.89 per cent at the May 2023 auction.

Analysts’ comments

Notwithstanding the influence of the high interest rate regime, analysts expressed concern that the sharp rise in FG’s borrowing from domestic investors is harmful to the private sector as it makes it more costly for businesses to borrow.

The analysts were however divided on the impact of the borrowings on inflation.

Commenting, Co-Founding Partner, Comercio Partners, a Lagos based investment bank, Nnamdi Nwizu, said: “The increase in borrowing by the government means that there will be more spending by the government, which will have a huge impact on inflation as it will drive demand for goods. Governments are always the largest spender in the world, so the more money they spend, the higher the attendant inflationary pressure. Note also that since they are borrowing at record levels, it means that when they are servicing the debt, they will put a lot more funds in the hands of the public.

“Lending to the Private Sector has been impacted with corporates issuing bonds and Commercial Papers at record levels.

“Whilst we continue to see a lot of issuances by the private sector (above 25% yields), we also see that the smaller corporates are struggling as the government is crowding them out. If an investor can invest in one year risk free NTBs at 25% yields, they would naturally ask for a premium when lending to the private sector. How many companies can afford to borrow at these steep levels and still be profitable? Also, the higher lending rates will lead to inflationary pressures as the corporates have to increase prices to cover for the higher borrowing rates.

“With respect to fiscal policy, we are yet to see the borrowing by the government have an impact on fiscal policy. Yes, we have the Coastal roads being built, but we would like to see more with regards to policies to help increase production output in the economy. Also, we expect to see a significant increase in debt servicing costs, factoring in the higher rates and increase in domestic borrowing.

“With respect to monetary policy, whilst the Central Bank continues on its hawkish trend, we expect pressure from the government on the Central Bank as its debt service costs rise. The government cannot afford to borrow at these levels for an extended period of time. Government spending can also lead to more pressure on the currency as it means more Naira available to chase the greenback.”

Similarly, Head of Equity Research, FBN Securities Limited, Tunde Abidoye, said: “Government borrowing could potentially fuel inflationary pressures. In addition there’s an indirect effect on exchange rates. Also, there’s the crowding out effect for private sector lending. As it is, not many businesses can afford to borrow at the elevated interest rate. Finally, the monetary policy response to all this may be to continue to raise interest rates in a bid to tame the spiraling inflation.”

However, Chinazom Izuorah, Senior Associate, Investment Brokerage, differed on the impact of the FG’s domestic borrowing on inflation, though she also noted it will make it costly for businesses to borrow.

She said: “The Federal Government’s domestic borrowing program has not changed in the last year. The government’s calendar for offering FGN bonds, savings bonds and Treasury bills remains consistent and in line with historical practice.

“The reason for the increase in value is due to the increase in MPR and the knock-on effect on interest rates for the FGN securities.

“At interest rates of 17% and above, the government’s instruments are more attractive than in the previous year and consequently there is increased interest and participation. This is also consistent with the CBN’s objective of reducing inflation by mopping up liquidity. In simple terms, higher interest rates create an incentive to save.”

She stated the impact of this in terms of inflationary pressure is that with the greater incentive to save, there will be less money in circulation which is crucial to limiting inflation.

“In terms of lending to the private sector: Higher interest rates on government securities, which are considered the safest instruments, is a disincentive to lending to the private sector, which is considered riskier.

“Money tends to fly to safety. Banks, other financial institutions and fund managers have little incentive to take-on riskier assets when they can get attractive returns lending the funds to the government.

“On the fiscal policy front the government uses the funds raised through the issuance of securities to fund the national budget. The present administration has earmarked a significant portion of the budget to capital expenditures, portions will also be used to fund recurring expenditures and debt service.

“The higher interest rates mean that the government is paying a higher rate to investors.

“However domestic borrowing is more sustainable than external borrowing as the monies are borrowed in the local currency. Governments look to external borrowing due to lack of capacity to meet funding needs from the domestic market.

“There is a lot of benefit to having a financially literate citizenry and high domestic savings rates. The most critical issue for Nigeria and Nigerians is that monies are judiciously employed for the purposes they are raised and projects executed efficiently.

“The increase in domestic borrowing values is indicative of the success of the administration’s monetary policy positioning.

“It can be assumed that the sustained rise in the MPR has been favorably received by the market and has stimulated increased participation in the domestic bond market.”

Moderation needed to avoid economic overheating — Muda Yusuf

Also commenting, Dr Muda Yusuf, CEO of Centre for the Promotion of Private Enterprise (CPPE), said there is a general need to moderate borrowing so that it doesn’t overheat the economy.

His words: “With respect to the implication for inflation, the deficit if financed properly may not be inflationary.

“Inflationary component of deficit financing often arises when CBN prints money to finance the deficit. That is when you have serious issues with inflation, because the money is now what you call high-powered money. But if it’s funded using bonds, treasury bills and other firms of borrowing, either from the public or from within the financial system, it is less inflationary.

“If the debt level continues to increase, of course it has a crowding out effect on the private sector. That means more of the credit in the economy will be going to the government as against the private sector, which is not a particularly good thing. So we need to worry about a trend of increasing domestic debt because of the risk of crowding out the private sector in the credit market.

“For fiscal policy, it’s a fiscal policy instrument. Borrowing is a fiscal policy issue, it’s used to fill the gap. Again, what is important is to maintain a sustainable ratio as far as borrowing is concerned, ratio of debt service to revenue, ratio of debt to GDP, which generally under the present administration have improved.

“For monetary policy, not much implications for as long as the deficit is not financed by CBN. That for me does not pose too many issues.

“Again generally, we need to moderate borrowing so that it doesn’t overheat the economy, and it doesn’t trigger the desire of the financial authorities to begin to tighten monetary policies.

“But for monetary policies, the significance of these borrowings is not so profound. It’s essentially a fiscal policy issue.”

The Commissioner of Police, Lagos State, Mr Adegoke Fayoade, says that it is time urgent measures are taken to halt cultism and drug abuse in the society.

He said this on Saturday at Ikeja, during an event organised by the Police Campaign Against Cultism and Other Vices tagged: “Teenagers Stay Informed: Know the Dangers of Cultism and Drugs”

According to Fayoade, cultism, and drug abuse have become a big security threat that needs to be attended to.

He urged the public to support its drive to eradicate the menaces from the society.

THE ROUND TABLE: Appraising President Tinubu's One Year In Office0.00 / 0.00

“Today, cultism is not only in higher institutions, it has taken over every fabric of the society; mechanics, barbers, drivers, and others are now members of cults.

“Cultists don’t do anything meaningful but disturb the peace of the community, fighting, claiming superiority, and destroying lives and property.

“The law enforcement agencies, government, family, stakeholders, and individuals, must join hands to tame this menace that has eaten deep into our society,” he said.


According to him, cultism and drug abuse lead to other criminal activities such as armed robbery, murder, rape, and other vices.

“When you engage in cult activity and drug abuse, you will be prone to committing other crimes.

“We are losing the precious lives of our youths that would have contributed to the economy and social development of our country, ” he said.

The police boss said that the aftermath of drug abuse was a serious medical condition.

“When you are mentally derailed, you cannot do anything meaningful with your life; your family and society will also be affected,” he said.

The police boss advocated for good parenting for the youth to be properly guided not to stray out of the right way by joining destructive groups such as cults and other criminal groups.

“Parents, pay special attention to your children, teach them to do the right thing, and always advise them against peer pressure,” he said.


In the same vein, the National Coordinator of POCACOV, CSP Olabisi Okuwobi, warned students to away from anyone or activity that encouraged the use of drugs, cultism, and all other vices capable of derailing their journey in life.

“Reject cultism and drug abuse to face your education so you can become better students with a brighter future,” she said

According to her, one of the consequences of joining a cult is death.

She called for concerted efforts to fight the vices to save Nigerian children from destruction.

According to her, POCACOV is a community policing initiative and public relations tool within the Force Public Relations Department of the Nigeria Police Force.

The Central Bank of Nigeria on Friday, announced that international oil companies can sell their retained 50 per cent of repatriated export proceeds in the Nigerian Foreign Exchange Market.

This decision comes after the CBN placed limits on the transfer of crude export proceeds by IOCs to offshore parent company accounts on February 14.

The apex bank noted that these transfers affected domestic foreign exchange market liquidity and sought to reverse the trend through ongoing reforms.

According to a circular signed by the Director of Trade and Exchange Department, W.J. Kanya, banks can only transfer 50 per cent of repatriated export proceeds to IOCs’ offshore parent company accounts, with the remaining 50 per cent repatriated after 90 days.

However, on May 6, the CBN reviewed this directive, allowing IOCs to repatriate 50 per cent of their export proceeds immediately or as needed, while the remaining 50 per cent can be used to settle financial obligations in Nigeria.

This move aims to balance the needs of IOCs with the need to maintain liquidity in the domestic foreign exchange market.


By allowing IOCs to sell their retained proceeds in the Nigerian market, the CBN seeks to boost liquidity and promote economic growth.


However, in a new development, CBN said following the release of the circular “dated May 06, 2024, referenced TED/FEM/PUB/FPC/001/008, in respect of Cash Pooling by banks on behalf of IOCs, we received several requests for clarification on item No 3 ( on forex sales at the Nigeria Foreign Exchange Market”.

Providing more clarifications, the apex bank said the “50% balance of the repatriated export proceeds may be sold to Authorized Dealers or eligible users of foreign exchange with eligible transactions”.

“If the IOC does not have any financial obligation to settle with the funds during or after the 90-day retention period, the 50% balance may also be sold wholly as stated in (1) above,” CBN said.

Some of the financial obligations mentioned by the CBN are the balance for cash calls, domestic loan principal and interest payments, transaction taxes (including the Nigerian Content Development Levy) and education tax

The Naira recorded its first massive depreciation against the dollar at the foreign exchange market 24 hours after President Bola Ahmed Tinubu’s first anniversary.

FMDQ data showed that the Naira depreciated to N1484.75 against the Dollar on Thursday from N1329.65 on Wednesday.

This represents an N155.1 loss against the dollar compared to N1329.65 traded on Wednesday.

Similarly, at the parallel market section the depreciated to N1490 per dollar on Thursday from N1480 the previous day.

The development comes as the turnover of foreign exchange transactions dropped to $235.41 million on Thursday from $328 million on Tuesday.

Accordingly, the last time the Nadepreciatedated at both official and parallel foreign exchange markets was on May 23, 2024, when the Central Bank of Nigeria announced fresh guidelines to Bureau De Change operators.

Since mid-April, the Naira has continued to fluctuate against the dollar at the forex market despite CBN interventions.

Olayemi Cardoso, the governor of CBN at the last 295th Monetary Policy Committee blamed the volatility on seasonal fluctuations.

The governor of the Central Bank of Nigeria, Olayemi Cardoso, said that the apex bank has not revoked the licenses of Moniepoint, Opay, and other fintech.

fergie001:
Ngelale's statement counters an earlier one issued by the President's Special Adviser on Information & Strategy, Bayo Onanuga
APC is full of confusion, they cant even get anything right!

Ahead of the first anniversary of President Bola Tinubu’s administration, a group of 84 local and international Civil Society Organisations says at least 4,416 persons were killed.

In contrast, 4,334 others were abducted in incidents of mass atrocities across the country, in the last year, the CSOs said.

The groups said the numbers did not account for the regular crimes like armed robbery and other forms of crime committed in the period, adding that the situation had reduced the citizens’ right to life and dignity guaranteed under Sections 33 and 34 of the 1999 Constitution of Nigeria (as amended), to a mere inscription.

Addressing journalists at a press conference held in Abuja on Tuesday, to mark the 2024 National Day of Mourning, said the insecurity in the country had earned Nigeria a place as one of the most insecure countries in the world, ranking 144th out of 163 countries on the Global Peace Index in 2024.

“Since the commemoration of the last National Day of Mourning #NDOM2023 on May 28th, 2023, and President Tinubu’s first year in office, our records show that at least 4416 people were killed and at least 4334 were abducted in incidents of mass atrocities across the country.

“These numbers do not account for the regular crimes of armed robbery and other forms of crimes within that range.

These incidents of violence have reduced the citizens’ right to life and dignity guaranteed under Sections 33 and 34 of the 1999 Constitution of Nigeria (as amended) to a mere inscription.

“The frequency of these atrocities has kept Nigerians in a state of perpetual fear and uncertainty and is impacting social cohesion, the economy, public health, and education across the country,” the CSOs said.

The press conference was addressed by Lois Auta, Founder of Cedar Seed Foundation; Martins Obono, Executive Director of TAP Initiative; and Frank Tietie, the Executive Director of Citizens Advocacy for Social and Economic Rights, who said the frequency of the atrocities had kept Nigerians in a state of perpetual fear and uncertainty, and impacting social cohesion, the economy, public health, and education across the country.

They further stated that the Northern Central region had accounted for the highest number of fatalities, with at least 1600 lost, the North West came in second place with at least 1,136 fatalities, with Maradun Local Government, a community in Zamfara state, being the most hard-hit after enduring at least five separate incidents of terror in 2023, with at least 118 lives lost.

“While no region of the country has been spared in the past year, the North Central region has accounted for the highest number of fatalities from mass atrocities, with at least 1600 lives claimed in terror pillages, communal clashes, and herdsmen attacks.

“With at least 1,136 deaths, mostly from terror-pillage attacks(banditry), the Northwest came in second.

Particularly hard-hit were communities like Maradun Local Government Area in Zamfara State, which endured at least five separate incidents of terror pillages in 2023 in a series of attacks that claimed at least 118 lives.

“At least 904 people were killed in the Northeast in the past year. Boko Haram/ISWAP activities still account for the highest number of atrocious killings in the Northeast, particularly in Borno State, with pockets of incidents in Yobe and Adamawa states.

“We also noted an upsurge in insurgent group clashes. For example, at least 82 Boko Haram insurgents were killed in an inter-insurgent group clash in Kukawa Local Government Area of Borno State,” the CSOs asserted.

The Southeast recorded the highest number of killings in the Southern part of the country with at least 344 killed, with most of the massacres occurring in Imo and Anambra states.

The groups also noted that the state security personnel also fell victim to violence, with at least 262 personnel killed on active duty, with the number including 110 military and 126 police officers.

They, however, warned President Bola Tinubu, the security service chiefs, and the representatives at the National Assembly that their continued failure to fulfill their constitutional duty would result in our passing a loud and consequential vote of no confidence in them.

The CSOs urged the government to fulfil its constitutional obligations under Section 14(2)(b) of the Constitution of the Federal Republic of Nigeria as amended and ensure the security of Nigerians’ lives and property.

Residents of Gaya in Kano State on Sunday took to the streets to protest against the dissolution of the Gaya Emirate by the state government.


Gaya Emirate is among the emirate councils recently dissolved by the Kano State Government after the Kano Emirates Council Law of 2019 was amended.

The new law, enacted by the New Nigeria Peoples Party (NNPP)-controlled House of Assembly, undid the law that former Governor Abdullahi Ganduje used in 2020 to create the additional emirates and dethrone the 14th Emir of Kano, Muhammadu Sanusi II.

The dissolution of the emirate councils was finalised when Governor Abba Yusuf signed the amendment bill into law on Thursday and ordered the emirs of the affected emirates, including Aliyu Ibrahim Abdulkadir, Emir of Gaya, to hand over to Deputy Governor Abdulsalam Gwarzo. Gwarzo oversees the Ministry of Local Government and Chieftaincy Affairs.

Residents reported that the dethroned emir vacated the palace at midnight on Thursday, with no immediate signs of violence or resistance. Armed security personnel were present in the town, maintaining order.

Protesters expressing their dissatisfaction with the dissolution of the Gaya Emirates


However, the situation took a turn on Sunday morning when residents took to the streets, wielding placards and chanting anti-government songs. They accused the government of political motives behind the dissolution and demanded the reinstatement of their emirate and the removed emir.

“Some people are not happy with this development. It feels like an injustice to our community,” said Abubakar Shuaibu, a resident of Gaya.


Another protester, Aminu Abdullahi, stated, “We see this as a political move to undermine our traditional institutions. The government should reconsider its decision and respect our cultural heritage.”

The protesters pledged their allegiance to the traditional leadership and called for the reinstatement of the Gaya Emirate.

Governor Abba Yusuf has yet to respond to the protests. However, the government’s initial stance suggests that the dissolution is part of a broader strategy to centralise control and streamline the traditional leadership structure in Kano State.

The developments continue to unfold as the affected communities await further clarification and possible resolutions from the state authorities.

President Bola Ahmed Tinubu has approved the appointment of ACM Shehu Mohammed as the new Corp Marshal and Chief Executive Officer of the Federal Road Safety Commission (FRSC).

This was contained in a letter of appointment signed by the Secretary to the Government of the Federation (SGF), Senator George Akume dated May 20th, 2024.


The letter said the appointment is in accordance with Section 7 (1) of the Federal Road Safety Commission Act, 2007 and takes effect from May 20th, 2024.

Shehu Mohammed takes over from Dauda Ali Biu as Corps Marshal of the corps.

Mohammed’s appointment is for an initial period of four years with effect from 20th May, 2024 in accordance with the relevant provisions of the Act establishing the commission.

Mr. Sunday Adeyemi, a school owner in Ibadan, has reportedly disappeared with funds earmarked for students’ WAEC and NECO exam fees, leaving their educational prospects in jeopardy.

The shocking revelation came to light through Adejoke Lasisi, the founder of Planet 3R, who took to Facebook to share the distressing news.

According to her post, many parents had gone to great lengths, even borrowing money, to ensure their children could take these crucial exams.

However, their hopes were shattered when they discovered that the school had not registered their children for the exams despite collecting the fees.


Adejoke’s post was fueled by both anger and personal experience, as her younger brother had once been a victim of a similar incident. Fortunately, her family managed to rally support and funds to re-register him for the exams.


The school owner’s actions were described as a betrayal of trust, especially considering he had operated “The Lord’s Favour” school for more than two decades.

It was revealed that Mr. Adeyemi had allegedly sold off his properties, including his home and the school itself, to finance his escape abroad, leaving the students and parents in a state of disbelief and hardship.

Adejoke concluded her post by emphasizing that while everyone has the right to seek opportunities abroad, it should not be at the expense of others, especially when it involves breaching trust and jeopardizing the futures of innocent students.