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‘We will continue to stand by the people, workers and the original ideology of our movement’

By Chika Onuegbu
05 January 2016   |   3:02 am
Dear comrades and friends, As we journey into the dying days of 2015 and as we march into the beginning of the brand New Year of great expectations and anxieties; 2016, the Trade Union Congress of Nigeria (TUC) Rivers State Council wishes to extend its good wishes and felicitations to all Rivers people and Nigerians…
Buhari

Buhari

Dear comrades and friends,

As we journey into the dying days of 2015 and as we march into the beginning of the brand New Year of great expectations and anxieties; 2016, the Trade Union Congress of Nigeria (TUC) Rivers State Council wishes to extend its good wishes and felicitations to all Rivers people and Nigerians especially hapless, exploited and deprived citizens and workers. Nigerian workers at this time must be deeply appreciated for their continued perseverance against all odds to continue creating the wealth which has sustained this nation despite all the odds.

We have experienced heightened manifestations of personal insecurity, unemployment, hunger, deprivations, fear, poverty, homelessness and much more overwhelming exclusion and alienation of increasing numbers of the masses from public social services and infrastructure yet; we have all remained stoical and standing. We at the Rivers Council of the Congress doff our hats for you all, worthy compatriots and workers!
REVIEW OF 2015

We are glad to inform you that despite the numerous challenges that confronted TUC Rivers State in the year 2015, we were still able to record some key successes.

Some of the challenges include the fall in Government revenues due to the continued global fall in crude oil prices; massive job losses especially in the Oil, Gas, Construction, Maritime sectors etc.; the devaluation and depreciation of the Naira; unprecedented insecurity and kidnapping in Rivers State; oil theft and pipeline vandalism; the inability of the 7th National Assembly to pass the Petroleum Industry Bill (PIB) into law etc. It was also a very difficult election year in Rivers State as the State became a signpost for electoral violence and all manner of political bickering. Even after the elections, the political landscape was overheated and charged. The year also witnessed attacks on some affiliates of our sister congress (the NLC) in the state.

A few of the successes recorded include a good number of our affiliates and branches achieved commendable improvements in the welfare of their members and in their relationship with their employers. There were also capacity building programmes aimed at enhancing the knowledge -base of the workers and promoting stable industrial relations atmosphere. Our affiliates also intensified action in organizing for new branches and members. For instance, ASCSN organized the Rivers State Internal Revenue service, Bureau of Public Procurement and the Niger Delta Development Commission. PENGASSAN and other industrial unions similarly organized new branches.

In our tradition, we continued to make progress in our relationship with the Rivers State Government, the Federal Ministry of Labour and Productivity, the Nigeria Labour Congress (NLC), the Nigeria Employers Consultative Association (NECA), the Chartered Institute of Personnel Management of Nigeria (CIPMN), Nigerian Medical Association (NMA), Institute of Safety Professionals of Nigeria (ISPON), the Media, Civil Society and other Advocacy Groups. We made appreciable progress in our relationship with TUC in other states and at the National level.

We also intensified our struggle for a fair and just society; and the campaign for credible elections and good governance in 2015 directly or in partnership with our media partners, civil society groups and other platforms for engaging governance in the state.

We must remind you that as part of the tradition of solidarity, TUC Rivers State had to step in and roll back the storm when the unwarranted attacks on the NLC Rivers State and its affiliates reached a crescendo. The NLC secretariat in Rivers State was burnt down and the Secretariat and members of its affiliate (Nigeria Civil Service Union) was also attacked and the officers manhandled. Also, the level of insecurity and kidnapping became so worrisome that workers started seeking for transfer out of Rivers state.

At this point, the TUC Rivers State was forced to issue a 14-day Ultimatum to the Rivers State Police Command to improve security of lives and properties or we will withdraw the services of our members. This led to our meeting on July 8th 2015 with the then Commissioner of Police Rivers CP Chris O. Ezike who incidentally was just assuming duties as the CP Rivers State. Both parties agreed to partner and collaborate for the improvement in the security of lives and properties in Rivers State. Consequently, TUC Rivers State withdrew the 14 days ultimatum and pledged to collaborate with CP and Rivers State Police Command towards the improvement in the security of lives and properties. Since then also, the violent attacks on labour unions secretariat and labour leaders have receded.

We thank God Almighty for all our achievements especially for keeping us safe! OUR PLANS FOR 2016
In 2016, we would continue intensifying actions to defend and advance the interest of workers and the ordinary people in Rivers State and Nigeria through social dialogue, advocacy programs and improvement in our relationship with the Rivers State Government, the INEC in Rivers State, the Federal Ministry of Labour and Productivity, Security agencies, employers of labour and other stakeholders in the production chain and civil society groups. We would take steps aimed at providing the enabling environment that will assist our affiliates organise more corporate entities as well as carry out programs and activities to re-awaken the health and safety consciousness of Nigerian workers.

As the umbrella body of the Senior Staff Associations in Nigeria we are not unmindful of the great expectations on us that we provide direction for the labour movement and accordingly, we would continue to improve on the capacity of our State council and affiliates to proactively meet rising industrial relations challenges. This we believe will foster an atmosphere of peace and industrial harmony necessary for increased productivity, wealth creation and economic development of Rivers State and Nigeria.

However, we recognise that maintaining an atmosphere of industrial peace and harmony in Rivers State or anywhere is a joint responsibility of all the parties to industrial relations. It is a function of the actions and inactions of all the parties and therefore requires the determination, commitment, collaboration and mutual understanding of all the key parties (i.e. Labour Unions, Employers, Government and her agencies).

Accordingly, we would like to use this opportunity to appeal, once more , to all stakeholders in the industrial relations landscape to give more time and attention to social dialogue, always be guided by the principles of natural justice and equity and respect for human dignity and extant labour laws in their approach to labour and industrial relations matters. This is not a time for any kind of unilateral action under whatever guise as TUC Rivers State will RESIST any such actions. We will not hesitate to shut down the Economy of Rivers State if we deem it necessary to do so.

We would also improve on our relationship with our TUC National Secretariat, other TUC State Councils and the Nigeria Labour Congress (NLC) in the larger interest of Nigerian workers as well as improve on our advocacy activities especially our campaign for a just and fair society and credible re-run elections in 2016.

It is our belief that with your support, prayers, commitment and solidarity we would also make appreciable progress in 2016.

We crave your indulgence to use this opportunity to draw your attention and the attention of Governments at all levels to some key issues that require our urgent and collective action as a people in 2016.

RIVERS STATE RE-RUN ELECTIONS IN 2016

The decision of the various Elections Tribunals and the Court of Appeal annulling most of the 2015 elections in Rivers State should be a lesson to all. The people must be allowed to make their choices in free and fair elections, and the elections must be credible. We advise the youths and the political parties to shun all Acts of violence as it diminishes our democratic culture and whittles down the remaining collective respect we have as a people and as a State. As the count down to the Rerun elections begins, we urge the security agencies to be alert at all times to ensure that adequate security is provided for all and sundry irrespective of their positions in life in order to guarantee safe environment for the re-run elections to take place peacefully.

By now, we expect the Independent National Electoral Commission (INEC) to carry out a thorough and detailed review of the 2015 elections in Rivers State. The electoral umpire has a responsibility to ensure that a level playing field is guaranteed to all the participants in the electoral process. The Judgments of the Election Tribunals and the Appeal Courts in ordering re-run of most of the 2015 elections in Rivers State is an indictment on INEC. It indeed calls into question the capacity and integrity of the INEC in Rivers state to organize free, fair and credible elections.

We therefore, call on INEC to use the opportunity of the Court Ordered re-run elections in the first quarter of 2016 to demonstrate that it has the capacity and integrity to conduct a free, fair and credible election in Rivers state. INEC must come clean by prosecuting all those that organized or supervised the annulled elections in Rivers State so as to serve as an effective deterrent.

THE LABOUR PARTY IN RIVERS STATE

We have since December 2014 informed the people of Rivers state that the labour movement in Rivers State has no relationship with the Labour Party in Rivers state. We feel compelled to restate that fact as we continue to distance ourselves from the labour party and its activities in Rivers state pending when the NLC and TUC reclaim the labour party for the good of the Nigerian people. THE STATE OF THE NATION’S ECONOMY

An analysis of the recent macro and micro economic situation of Nigeria leaves a bitter taste in our mouth and every Nigerian worker has reason to be worried on its prognosis for 2016. The nation has lost much of its revenue from Oil as a result of the accelerated decline in the global prices of Oil from over U$120/barrel in December 2013 to around U$60/barrel in December 2014 and about $32/barrel in December 2015. Already oil revenue is projected to fall by 50% in the 2016 budget.

The implications of this for our fiscal space and Monetary health is dire when we realise that Oil receipts account for nearly 80% of our national revenue and over 90% of our nation’s foreign exchange receipts. Given this situation, as we step into 2016, Governments and Employers at all levels are expectedly going to threaten the operational environment of Nigerian workers exacerbating the already oppressive work environment with serious Decent work deficits as Terms and Conditions of employment come under severe pressures across both public and private sectors of the economy.

We, therefore, urge Nigerian workers to be prepared for a robust and vigorous engagement of our social partners in 2016 to ensure that Nigerian workers and indeed all Nigerians are not negatively affected by the situation. We must all be prepared to engage the government for a new and an enhanced Minimum wage package across board for all Nigerian workers to cushion them from its negative impacts.

The Congress in Rivers State urges the government at all levels and other employers to, instead of seeking to embark on reducing the workforce in their employment, cut down on some of the wasteful spending on political hangers on and other Executive perks both in the public and private sectors. They should be courageous enough to eliminate corruption and inefficiency to the barest minimum. When these are implemented, public and private organisations become trimmer and more nimble thus fitter to conduct its affairs profitably and efficiently and avoid the crisis that may be generated if they decide to embark on negative policies that will be deleterious to Nigerian workers.

CORRUPTION, POVERTY AND INSECURITY

Our decision to comment on these three issues within the same space is deliberate because we see a causal relationship between them especially as it concerns our dear country Nigeria. And that since the advent of democracy in 1999, the federal government has budgeted and spent well over N65trn while the State Governments and their local government counterparts have budgeted around N45trn naira; a combined total of about N110trn Naira; without any commensurate impact on the lives of ordinary citizens in Nigeria. This huge gap between government spending and direct effect on the lives of the citizenry can only be explained by the horrendous systemic corruption that currently holds the nation in its thrall. It is widely believed that some 40% of the budget is frittered away through corruption and inefficiency. The continued haemorrhaging of our national resources as a result of blow-outs through corruption has undermined the capacity of Governments at all levels to deliver on the various promises of democracy to the citizenry.

The implications of these are diverse and varied especially in the capacity of the government at all levels for providing social and physical infrastructure and meeting other governance obligations to the citizenry. It means that the capacity to empower the people and lift them out of poverty becomes diminished and access to social services and public infrastructure for the masses becomes hampered. For instance, the recent revelations of the Armsgate show clearly how corruption has negatively impacted the fight against Boko Haram insurgency.

As a result, about 75% of Nigerians are living below the poverty line and more and more people are being pushed into this bracket with increasing cases of unemployment and rising precarious jobs. The hopelessness amongst the youth as a result of rising unemployment has since reached unacceptable heights. Life and living in Nigeria has increasingly become a grind and deeply frustrating as all the dimensions of poverty keeps exacerbating daily.

As poverty becomes more entrenched, lives become insecure and as more and more people become impoverished, desperation increases as people seek diverse means of escape from this morass and to express their discontent with the situation. It is therefore not surprising that as a result of corruption and the refusal of the leadership at all levels to govern effectively, insecurity of diverse degrees and manifestations have become the order of the day in Nigeria. The carnage and bloodletting especially in Northern fringes of the country including the rising violent armed robberies and kidnappings in the South have all become present realities in our dear nation.

We, therefore, urge President Muhammadu Buhari to be dogged in the fight against corruption and the elimination of waste in governance through strengthening the institutions that fight corruption, adopting a truly zero tolerance approach to corruption and waste of public funds and more importantly, pass into law the offence of unexplained wealth in Nigeria and ensure that offenders are properly dealt with. The offence of unexplained wealth (also called possession of unexplained wealth) will penalize people for possessing wealth disproportionate to their known lawful sources of income if they cannot provide a satisfactory explanation for this.

This has been recognized by the Organization for Security and Co-operation in Europe as one of the best practices for combating corruption .Also in Hong Kong, where the offence has existed for nearly 40 years, the Court of Appeal in Attorney General v. Hui Kin-hong, 1995 found that it has “proved its effectiveness in the fight against corruption”. Moreover, the United Nations Convention against Corruption (UNCAC) also encourages the establishment of such an offence.

The truth is that corruption is the greatest problem of the Nigerian nation and those who perpetuate it must be treated as enemies of the state and they do not deserve any mercy whatsoever. We, therefore, recommend that the offence of unexplained wealth in Nigeria should be punished with imprisonment of at least 20 years plus forfeiture of the unexplained wealth to serve as an effective deterrent.

We want to assure President Muhammadu Buhari that our congress and indeed the Nigerian Labour Movement will stand by him in this divine fight against corruption in Nigeria. This we have demonstrated on September 10th 2015 during the march against corruption in the FCT and 36 states of the federation.

FALLING CRUDE OIL PRICE, OPPORTUNITY FOR A BETTER NIGERIA AND GOVERNMENT AUSTERITY MEASURES

We are of the considered view that the falling crude oil price provides a good opportunity for government at all levels to block all leakages in the system such as corruption, inefficiency, Oil theft and the huge cost of governance in Nigeria. The volume of money lost to corruption and inefficiency in Nigeria may be more than 40% of the annual budget. Also the amount of money lost to Oil theft and pipeline vandalism is humongous. By government’s own admission (which is very conservative) about 10% of Nigeria’s total crude oil production of about 2.5million barrels per day (2.5mbpd) i.e. about 250kbpd is stolen, this is almost two and a half times the total production of our neighbour, Ghana. This is a serious drain of our national resources.

The falling oil price should therefore be an opportunity for government at all levels to truly fight corruption, reduce the inefficiencies in its operations, pass the PIB into law and stop the brazen stealing of Nigeria’s crude oil. If these are done, then Nigeria will be better off and would have taken advantage of the fall in oil revenue to lay a solid foundation for the country.

THE NEW PETROLEUM INDUSTRY BILLS(PIBs)

We expect the government at this point to ensure the quick passage of Petroleum Industry Bills(PIBs) that would address the challenges in our Oil and gas sector having due regard to the concerns of key stakeholders. Only recently the Minister of State for Petroleum revealed that Nigeria loses about US$15 billion annually as a result of failure to pass PIB into law. If you recall that the PIB has been in the National Assembly for some 8 years that translates into a loss of some $120 billion in investment! This is humongous and should spur the government to take immediate action, not just in presenting another PIB or PIBs but in ensuring its passage into law.

Already we understand that the 223-page Petroleum Industry Bill PIB will be broken into at least two Bills. The first of those two bills which is the Petroleum Industry Governance and Institutional Framework Bill 2015 is already in public domain. The Petroleum Industry Governance and Institutional Framework Bill 2015 is a 45-page bill which will provide for the Governance and Institutional Framework for the Petroleum Industry and for other related matters.

Section 1 of the bill states that the objectives of the bill are to : (a) create efficient and effective governing institutions with clear and separate roles for the petroleum industry; (b)establish a framework for the creation of commercially oriented and profit driven petroleum entities that ensures value addition and internationalisation of the petroleum industry; (c) promote transparency and accountability in the administration of the petroleum resources of Nigeria; and (d) create a conducive business environment for petroleum industry operations.

These are very laudable objectives. However it is important that the concerns of the stakeholders are adequately addressed. Already, one of our affiliates –the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised some concerns about the new bill. We expect the government to sit with the oil and gas workers unions to harmonise their positions so as to facilitate its quick passage.

We also look forward to seeing the remaining aspects of the split PIB. Specifically the aspects that will deal with Petroleum Fiscal regimes, Frontier exploration and Petroleum host community concerns. However Nigeria having lost some $120 billion in Oil and Gas investments due to the non-passage of the PIB, must show seriousness in ensuring that it is passed into law and quickly too, this time.

THE UNENDING MINIMUM WAGE DEBATE

It is unfortunate and shameful to hear the Nigerian State Governors continue their war against payment of the minimum wage to Nigerian workers. Historically, the Nigerian Governors have always complained bitterly about the minimum wage right from the Cost of Living Allowance (COLA) era in 1945 to date. In the post –independence Nigeria, the story is not different. And since the advent of this democracy, Nigerian Governors have always fought vehemently against the payment of minimum wage to the workers. And will do so under whatever guise!

The truth is that the Nigerian Governors’

Forum (NGF) lacks the power and morality to slash the minimum wage as it is an Act of National Assembly. Slashing it means disobeying the law which as Governors they swore to protect. Also, the implementation of the minimum wage was the outcome of a communiqué reached between the Federal Government and the State Governors on July 19th 2011 even after the minimum wage was passed into law and signed by the then President. Moreover, the current minimum wage at N270/1$ only amounts to less than $67 per month as against $120 when it was agreed in 2010. It is important to remind the Governors that the N18, 000 minimum wage is less than 35% of theN52000 demanded by organized labour and just some 80% of the US$ equivalent of the 1981 National Minimum Wage when it was agreed in 2010.

The US$ equivalent of the 1981 minimum wage which is US$150. Third is that the minimum wage is now due for upward review having suffered greatly from inflation and exchange rate depreciation. When the minimum wage was signed, the N18000 minimum wage was equal to $120. Today, it’s less than $67, a loss of some 45% just due to exchange rate! By the time you apply inflation over the period, you will see that the N18, 000 minimum wages has lost some 75% of its value since it was agreed in 2010. Moreover part of the tripartite agreement was an understanding that the minimum wage will be reviewed every five years.

We thank the national leadership of TUC and NLC for their commitment to forward a proposal for the upward review of the minimum wage in line with the tripartite agreement on the five-yearly reviews of the National Minimum Wage.

FUEL SUBSIDY AND LOCAL REFINNING CAPACITY

The position of the TUC NEC of 11th December 2015 on fuel subsidy is very clear and that remains our stand. We are against the removal of fuel subsidy and we are against import driven deregulation.

The truth is that every country in the world has one form of subsidy or the other. So the issue is not about subsidy but how it is managed, the costs and benefits of the subsidy to the country. In the case of Nigeria, it is estimated that fuel subsidy costs between 20% to 30% of the budget. This figure is actually huge especially considering the infrastructural deficit in the country.

However, a good percentage of this figure is perceived as cost of corruption in the fuel subsidy management process. And this is partly the reason why it is difficult to convince the unions and the ordinary people that the solution to the fuel subsidy conundrum is removal of subsidy. For instance, the fuel consumption pattern for subsidy computation and payment of subsidy is flat, same figure is allocated throughout the year, without recourse to changes in consumption pattern at certain periods in time.

The PPPRA template that is used for the computation is a good example of legalised fraud as it is made up of every known and conceivable cost item. Corruption and not fuel subsidy is the single most important factor militating against the development of Nigeria. Furthermore, there appears to be an inverse relationship between the removal of fuel subsidy and state of public infrastructure over the years, such that the more government removes subsidy the worse our public infrastructure becomes. Government, therefore, has a serious credibility deficit and any argument to increase the pain of the ordinary Nigerian by subsidy removal is bound to attract negative reaction from the populace. Moreover, the legal framework for the deregulation of the petroleum industry is nowhere as the Petroleum Industry Bill (PIB) was not passed by the 6th and 7th National Assemblies.

Government must therefore engage key stakeholders such as the labour movement with credible solutions to the current crises which must be anchored on growing the local refining capacity such that within the next five (5) years Nigeria would meet locally all her domestic demand for refined petroleum products in Nigeria and such that within the next seven (7) years Nigeria will be exporting refined petroleum products.

2016 FEDERAL GOVERNMENT BUDGET: Laudable, Ambitious but seems Unachievable

On December 22nd 2016 President Mohammadu Buhari presented the 2016 Budget and appropriation bill to the Joint Session of National Assembly. The budget christened “The Budget of Change” is an attempt to bring hope to Nigerians at a time of despair. From the budget speech and appropriation bill, the Federal Government plans to spend “N6.08 trillion with a revenue projection of N3.86 trillion, resulting in a deficit of N2.22 trillion”. Of the total projected spend; capital expenditure is N1.8 trillion, which is 30% of the 2016 budget.

The 2016 Federal budget “seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians”. It also seeks to “address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians”. It is indeed a budget with good and laudable intentions and should be supported by all Nigerians.

However we have serious concerns about the budget proposal and we appeal to the government to pay serious attention to these concerns if they intend to implement the budget as planned, and realise its laudable objectives. Key amongst these concerns are:

1. History of Budget Implementation in Nigeria: The major challenge with budgets in Nigeria is poor implementation. The budget performance history shows that while the recurrent expenditure aspect of the budget usually witness over performance, the capital expenditure aspect is usually as is often the case under achieved. This calls for careful plans to ensure that the targeted N1.8trillion capital expenditure is indeed achieved in 2016. If this is done, then this will be the first time in a long while that capital expenditure budget will be fully achieved in Nigeria!

2. Bench Mark Oil price: The bench mark crude oil price for the budget is $38 per barrel. Already the OPEC basket oil price as at 24th December 2015 was $32.14 per barrel which is lower than the budget bench mark crude oil price. More worrisome is that some analysts including the International Monetary Fund (IMF) have projected that crude oil will fall to $20 per barrel in 2016.Also Goldman Sachs insists that the fall in crude oil price will be sustained and oil price will fall to $20 per barrel. Anyone who is a keen observer of the events that are shaping the crude oil price will recognise that we are in for a sustained low crude oil price regime. Accordingly, it is doubtful if the budgeted oil revenue of N820billion will be realized in 2016. If the budgeted oil revenue is not realized, this will negatively impact on the 2016 budget performance.

It is, therefore, important that the government begins to make contingency arrangements should the crude oil price fall below the bench mark price or better still, review the benchmark oil price downwards.

3. Non-Oil Revenue (Non-Oil Taxes): The Budgeted figure in 2016 is N1.455 trillion made up of the following:
Description 2015 Budget (in Billions) 2015 Actual (In Billions) 2016 Budget (In Billions) 2015 Actual Receipt as a Percentage of 2015 Budgeted Receipt. % Increase Between 2015 Budget & 2016 Budget % Increase Between 2015 Actual & 2016 Budget
FG Share of CIT 651.19 343 867.46 53% 33% 153%
FG Share of VAT 172.53 80.77 198.24 47% 15% 145%
FG Share of Customs Rev 323.97 173.05 326.44 53% 1% 89%
FG Share of Fed Acct Levies 67 9.3 62.56 14% -7% 573%
Total 1,214.69 606.12 1,454.70 50% 20% 140%

As the table above shows, in 2015 actual amount received by the Federal government as Non-Oil Revenue (Non-Oil taxes) was N606.12 billion which is just 50% of the 2015 budgeted amount of N1.214 trillion.

However, the Federal government in the 2016 budget is expecting to receive N1.455 trillion which represents a 20% increase over the 2015 budgeted figure, and a whopping 140% increase over the actual amount received in 2015. This is very ambitious. It remains to be seen how the Federal government will be able to achieve this target especially considering that much of that revenue will come from company’s income tax (CIT). CIT is based on preceding year basis and we all know that 2015 was a very difficult year for Nigerian companies.

The federal government should provide a believable plan on how it intends to achieve the budgeted amount for Non-Oil Revenue (Non-Oil taxes). Otherwise, it should put in place credible contingency plans to avoid severe budget underperformance.

4. Independent Revenue Sources: The Federal Government plans to raise the sum of N1.5trillion from Independent Revenue sources. We need to know where these independent revenue sources will come from as the 2016 budgeted figure represent 208% of the 2015 budgeted figure of N489 billion.

5. Ambitious Revenue Projections: As shown above, the Federal Government revenue projections for Oil revenue, Non-Oil Revenue (Non-Oil taxes) and Independent revenue sources are very ambitious. They come with the risk that they may most likely be unachievable. If they become unachievable, then the planned expenditure, especially the planned N1.8 trillion capital expenditure, will become a mirage!

6. Unprecedented Budget Deficit and Huge Borrowing:
The Federal government proposed a budget of N6.08 trillion with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion for 2016. Already, the projected revenue of N3.86 trillion is very ambitious and as shown above in two to five of this section on budget, there are serious doubts that they will be realised.

The projected deficit of N2.22trillion is planned to be financed as follows: (a) N900 billion from foreign borrowing; (b) N984 billion from domestic borrowing and (c) N380 billion from Misappropriated funds recovery and others. The budget deficit is the highest ever budget deficit in Nigeria and it is coming at a time when the economy is in severe crises and when the total indebtedness of Nigeria is high. According to the government, the additional borrowing to finance the 2016 budget will increase Nigeria’s debt profile to 14% of our GDP. The fact is that Nigeria’s debt profile is huge and presents a burden to the economy. The table below shows the debt profile of Nigeria as at June 2015.

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