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Cashing in on Fiscal Responsibility: FRC Warns Against Misapplication of Borrowing Proceeds
Cashing in on Fiscal Responsibility: FRC Warns Against Misapplication of Borrowing Proceeds....KINDLY READ THE FULL STORY HERE▶
The Fiscal Responsibility Commission (FRC) has issued a stern warning regarding the misapplication of borrowing proceeds, highlighting the urgent need for greater fiscal discipline among government entities. This crucial message was conveyed by Victor Muruako, the Executive Chairman of the FRC, during the National Summit of Fiscal Responsibility Agencies in Nigeria, held on Thursday at the NAF Conference Center in Abuja.
Muruako underscored the importance of utilizing borrowing proceeds solely for long-term capital expenditures, as stipulated in Section 44(2)(b) of the Fiscal Responsibility Act. He stated, “The proceeds of public sector borrowing shall solely be applied towards long-term capital expenditures.” This directive aims to prevent the frequent violations observed across various levels of government, which undermine fiscal integrity.
The FRC chairman expressed particular concern over the lack of adherence to the borrowing conditions outlined in the Fiscal Responsibility Act, especially by subnational governments. He remarked, “We do not see sufficient adherence by subnational governments to the conditions for borrowing.” Muruako emphasized that both state governments and lending institutions must operate within these guidelines to maintain fiscal discipline and ensure that national debt remains manageable.
In his address, Muruako also addressed issues of inadequate fiscal coordination, particularly in the areas of debt management and procurement practices, which significantly affect Nigeria’s overall debt profile. He cited a recent failed partnership between a Chinese firm and a subnational government, highlighting the critical lessons regarding the link between subnational debt and national economic stability. “A state government’s judgment debts constitute part of the debts of that state government and, by extension, part of the total stock of national debt,” he explained.
Another pressing concern raised by Muruako was the lack of proper documentation and cost-benefit analysis by governments seeking to borrow funds. He pointed out that Section 44(1) of the Fiscal Responsibility Act mandates that any government or its agencies wishing to borrow must specify the purpose of the borrowing and present a detailed cost-benefit analysis. “This is generally observed in the breach. And it shouldn’t be so,” he lamented.
Muruako criticized certain state governments and financial institutions for circumventing the provisions of the Fiscal Responsibility Act through false declarations of compliance. He stated, “We have seen unacceptable variances, such as a State’s Fiscal Responsibility Commission overreaching itself to declare a loan application by its state government as fulfilling the requirements of the Fiscal Responsibility Act.” Such actions, he noted, are avoidable usurpations of the powers and responsibilities of the FRC.
Muruako urged state governments to align their borrowing practices with the conditions set out in the Fiscal Responsibility Act. He also emphasized the importance of professionalism in managing public-private partnerships (PPPs), warning that these can carry fiscal risks. “Though PPPs are not public borrowings per se, they can morph into contingent liabilities and public debts,” he cautioned.
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‘Kwankwaso Is More Experienced Than Peter Obi’ – Buhari’s Ex-Aide Declares.
Ahmad made the assertion in a post on his X handle, maintaining that Kwankwaso’s decision to accept the position of running mate should be seen as an act of political modesty rather than an indication that he is less qualified than Obi.....KINDLY READ THE FULL STORY HERE▶
According to the former presidential aide, the relationship between the two politicians should be viewed as one of equals rather than that of a superior and a subordinate.
“To be entirely candid, the political dynamic between Rabiu Kwankwaso and Peter Obi ought to be characterised as one of collegiality between peers, rather than a hierarchy of principal and subordinate,” he wrote.
He added, “The choice to assume a deputy role beneath Obi ought to be interpreted as a testament to political modesty.”
Making a case for Kwankwaso’s political experience, Ahmad recalled that the former Kano State governor served as Deputy Speaker of the House of Representatives before Obi became a prominent figure in national politics.
He also noted that Kwankwaso governed Kano State, which he described as Nigeria’s most populous and politically influential state, for two terms and served as a federal minister.
“If we are assessing political experience, Sen. Kwankwaso probably has a longer and more impressive political background than Peter Obi,” Ahmad stated.
In contrast, the former presidential aide argued that Obi’s major public office experience was limited to his tenure as governor of Anambra State.
“Unlike other candidates, Peter Obi was just a former governor of Anambra State,” he wrote.
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‘I Have Stopped Impregnating Women’ – 2Baba Makes Shocking Revelation.
Nigerian music star Innocent Idibia, popularly known as 2Baba, has declared that he no longer impregnates women.....KINDLY READ THE FULL STORY HERE▶
The singer made the statement on Saturday during a live performance at Rehab Lounge in Calgary, Canada.
While performing his hit song True Love, 2Baba paused to interact with the audience and playfully asked the women present to identify where his true love was.
He jokingly wondered whether she was standing at the back of the venue or somewhere in front of him before making a remark about his experiences with women.
The award-winning musician told the audience that he had stopped getting women pregnant, adding that he had been making the same confession wherever he performed recently.
He said, “For the purpose of this show, I will pretend like I’ve never seen anything before. Where’s my true love? Is she back there? Is she right here? Is she somewhere here? Where’s my true love? You people shouldn’t put out me for trouble.
“As I said, some ladies they fear to shout. See, everywhere I go these days, I make this confession. As I say, some ladies they fear to shout. I say, I don’t fear to shout. Because I don’t stop to dey give woman belle. Ask anyone, they’ll tell you, I don’t do such thing things again.”
The singer’s comment comes amid public interest in his personal life and relationships.
2Baba was previously married to Nollywood actress Annie Macaulay-Idibia. The couple announced their separation in January 2025 after having two children together.
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NPFL Cracks Down! Abia Warriors, Katsina United, Warri Wolves Hit With Sanctions.
Abia Warriors were fined ₦3.2 million for failing to provide adequate security as agreed during the pre-match technical meeting ahead of their encounter with Niger Tornadoes.....KINDLY READ THE FULL STORY HERE▶
Abia Warriors were fined ₦3.2 million for failing to provide adequate security as agreed during the pre-match technical meeting ahead of their encounter with Niger Tornadoes.
The Umuahia-based club was also found guilty of an attempt by one of its officials to disrupt the live broadcast of the match by harassing a crew member of the league’s broadcast partner.
As part of the disciplinary measures, Abia Warriors’ multimedia officer, Chidera Favour Igwe, has been suspended from all NPFL match activities for five matches.
Katsina United, meanwhile, were fined ₦2 million for failing to provide adequate and effective security during their home fixture against Plateau United.
The club was also sanctioned for allowing supporters to encroach onto the field of play during the encounter.
Warri Wolves Receive Heaviest Punishment
Warri Wolves have been handed the most severe sanctions following the unruly behaviour of their supporters during Sunday’s Matchday 10 clash against Kano Pillars in Ozoro.
The Seasiders were fined ₦4.2 million and docked three points and three goals from their accumulated tally. The club was also ordered to play its next three home matches behind closed doors.
According to the NPFL, Warri Wolves failed to provide adequate security at the stadium, resulting in an assault on match officials after the final whistle.
The league further disclosed that the second assistant referee sustained a nose injury and was left bleeding during the incident.
The NPFL stated that all three clubs have 48 hours from the date of notification to appeal their respective sanctions in accordance with the league’s disciplinary procedures.
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