• Local currency loses 61% to dollar at official market
• Bank, parallel market rates converge at N755
• I & E window rate falls by 29 per cent to N664 to dollar
• Apex bank stops RT200 FX programme
• Govt transactions to be executed using I&E window
• Stakeholders describe decision as courageous
• Decision could mean free-fall of local currency, analysts fear 

The Central Bank of Nigeria (CBN) may have embraced the painful, but realistic path to foreign exchange rate convergence, adopting a clean float at the interbank market.

The option, a liberalist move that supports the interplay of demand and supply to determine the equilibrium rate, saw the apex bank pulling the trigger on the naira at the bank rate, which plunged from about N466 a dollar traded on Tuesday to about between 750/$ and 755/$ yesterday.

At the investor’s and Exporters’ (I & E) window, the naira also depreciated significantly by 29 per cent to N664.04/$, suggesting a broader adjustment of the rates.

Earlier in the week, naira traded at N765/$ band at the alternative market. Dusting off the historical volatility, the currency had traded at a narrow range around N735/$ since December 2022 until recent weeks when the dollar edged higher.

The CBN last night confirmed the collapse of all exchange rates in the Investors and Exporters’ (I &E) window directing all eligible transactions to access FX at the window.

The statement signed by the Director of Financial Markets, Angela Sere-Ejembi, also informed that the RT200 FX Programme ceases to exist effective June 30, 2023.

According to the bank, all government transactions would be executed using the average rates of the previous day’s trading at the I $E.

Most banks had earlier communicated the changes to their customers and were quoting above N700/$ for buying and selling rates.

The 61 per cent deep dive, which has not happened in recent memory, has eliminated the spread between the official and parallel markets, which hit a multi-decade high of 100 per cent in the run-up to political party nominations for the last general elections.

Then, the local currency traded against the greenback at around N450/$ while the black market, trading against heightened speculation, headed to about N900/$.

Interestingly, the usual tension at the parallel market eased at Lagos and Abuja, yesterday, with naira trading between N750 and 755 to a dollar. The Guardian also learnt that demand has dropped significantly.

There are fears, however, that de-pegging could mean a more damning depreciation if the situation is not properly managed. The suspended CBN governor, Godwin Emefiele, had taken a stand against pure float, saying the economy will not survive it at its current state.

Existing dollar-denominated instrument debt instruments would be serviced at much-higher rates, while FX-priced services is expected to adjust. Perhaps, the effect on general prices could be minimal as imported goods, as reported by The Guardian previously, are priced at the black market exchange rate.

At the close of last year, Nigeria’s total national external debt stock stood at $4.69 billion. A higher exchange rate will see the government, at both federal and state levels, requiring more volume of naira to service the debt. But the high cost of debt service could be cancelled out as the government would also get more naira revenues from its FX earnings.

With the development, however, the differential between bank and parallel market rates would narrow to zero for the first time since 2015 when both markets were trading at about N195 to a dollar.

Experts are looking up to the apex bank to kick-start the process of increasing FX supply to raise liquidity levels and enable foreign investors with trapped earnings to access dollars to repatriate their funds.

The aviation industry bookmarks everything that has gone wrong with a subtle capital control regime adopted by the CBN to survive the ravaging pressure. At the cusp of losing major foreign operators last year, the CBN released $120 million to the aggrieved airlines to repatriate the outstanding, comprising mostly of sales.

But the value has long ballooned to $818.2 million or 36 per cent of the global figure as per data provided by the International Air Transport Association (IATA).

The value of foreign investors’ capital trapped in the capital market as a result of FX illiquidity is in the realm of speculation. But David Adonri, a stockbroker, said the amount reflects the steady decline of foreign participation.

Amid the FX liquidity crisis, foreign participation in the local bourse fell from 54 per cent in 2014 to less than 17 per cent last year.

Telecommunication infrastructure investments have been hobbled by the challenge. According to a source, as of December 2022, the FX demand by the sector was in millions of dollars, “but I am not sure the CBN released up to 40 per cent of the amount needed.”

The source disclosed that a major delay affecting one of the Fifth-Generation (5G) network licensees from deploying and expanding services is lack of FX.

“I remembered the licensee requested some $35 million to procure some equipment late last year into earlier 2023, I am not sure that has been granted as of today.

This is even though the sector, earlier in the year, was added to the priority list by the CBN,” the source said.

Manufacturers, at 2021, put the outstanding FX demand at $2 billion. Over time, some requests have remained in queues for as many as 12 months, pushing most users, including multinationals, to the alternative market. The challenge, according to Dr. Muda Yusuf, the chief executive officer of the Centre for Promotion of Private Enterprise (CPPE), in a chat with The Guardian, weakens local capacity utilisation and fuel unemployment.

Yusuf, a strong advocate of rate harmonisation, estimated the total loss to FX arbitrage from 2020 to 2022 at N8 trillion. Beneficiaries of much of what many have described as unnecessary subsidy foreign students who stay back in Britain, Canada and other countries after their studies.

The CBN had restricted access to FX for the importation of a basket of items totaling 41 but later expanded to 43. Other demand-side management approaches, including the suspension of weekly funding of Bureau de Change (BDCs) were taken but the bleeding continued with naira falling from around N200/$ to also N900/$ last year.

But experts have seen yesterday’s de-pegging as the beginning of the return of sanity if the process is followed through.

President Bola Tinubu, during his inauguration, urged the CBN to work towards achieving rate harmonisation as a necessary option for growing a competitive economy. The President aligned with calls by the World Bank, International Monetary Fund (IMF) and leading local economists for pro-market reform of the market.

Historically, the wide market spread has fueled round-tripping and other manipulation with a former CBN governor revealing that some high-network Nigerians sit at home and make billions off the system.

In a statement, CPPE wrote: “The liberalisation of the foreign exchange market would unlock the huge potential for investment, jobs and capital flows.
Investors’ confidence would be positively impacted. Meanwhile, it should be clarified that this is not a devaluation policy, but a pricing mechanism that reflects the demand and supply fundamentals in the foreign exchange market.

“It is a framework that allows for flexible rate adjustments as and when necessary. It is a model that is predictable, equitable, transparent and sustainable. It is a policy regime that would reduce uncertainty and inspire the confidence of investors. It would minimize discretion and arbitrage in the foreign exchange allocation mechanism.”

The statement signed by Yusuf, argued that rate unification does not imply that rates would be the same in all segments of the market, adding that the “objective is to ensure that the differentials are very minimal, possibly between 5-10 per cent”.

A unified exchange rate regime offers the following benefits for the economy: it enhances liquidity in the foreign exchange market; it reduces uncertainty in the foreign exchange market and therefore enhances the confidence of investors; it is more transparent as mechanism for forex allocation, it minimises discretion in the allocation of forex and reduces corruption vulnerabilities”.

Also speaking, CEO of Moniepoint, a fintech company, Tosin Eniolorunda, hailed the decision, saying: “It is a clear step in the right direction for our economy, ensuring investor confidence continues to grow. Today’s decision is good for business, jobs and growth. It will help Nigeria’s brilliant entrepreneurs to do business globally and attract foreign investment. It will also help reduce inflation, leaving more money in people’s pockets.”

A fund manager at Stanbic IBTC Pension Managers Ltd, Chidi Uzo, also described the decision as a “bold step in the right direction”.

“However this should go in tandem with the lifting of capital restrictions for investors waiting on the sidelines to repatriate their funds. We expect foreign investor participation to be swayed by the extent to which capital is allowed to flow freely.

“Overall, the effective harmonisation of Nigeria’s multiple exchange rates by allowing market forces to determine the fair value of the naira should immediately reverse the multi-year widening spreads between the official exchange rate and the parallel market exchange rates,” he said.

Meanwhile, stakeholders said the floating of the foreign exchange is a good thing for the energy sector.

Admitting that immediate shocks in prices are imminent, they argued that the development would bring transparency and global competitiveness to the sector and in turn attract investors.

Economist at the University of Ibadan, Prof Adeola Adenikinju, said the development would enable investors and market players to make investment decisions based on some level of certainty.

“All these measures would have short-term adjustment costs. However, in the medium to long term, the economy would be better for it,” he said.

A leading expert/scholar in Electricity Law, Prof. Yemi Oke, lauded the decision, stressing that it would introduce a level playing field.

According to him, with the downstream sector already deregulated, the new move would enable every marketer to bring their product and compete while investors would have the confidence to come to the power sector.

Oke said the multiplier effect would boost the economy, job creation and ensure the sustainability of the energy sector, as investors would be willing to come into the sector. He noted that the development would also create clarity and certainty around investment and project funding in the sector, as multiple exchange rates won’t favour the sector.

“It will make the economy very attractive and globally competitive. So it is a good thing,” Oke stated.

Adonri described the decision as a giant stride in deregulating the economy, coming at the heels of subsidy removal. He pointed out that the structural rigidities in the economy and pressure points are gradually being eliminated

According to him, the decision would enable the true value of the Naira to be market-driven and determined at any point in time.

Adonri also added that the action would ultimately enhance the allocative efficiency of hard currency resources, eliminate rent-seeking, curb the scarcity of forex and ultimately boost federal government revenue.

Chief Executive Officer of Wyoming Capital and Partners, Tajudeen Olayinka said the government is introducing an adjustment program that will make the economy attain internal equilibrium, while at the same time putting up policies and measures that will make the economy restore external equilibrium.

“Fuel subsidy is gone. Foreign exchange subsidy is gone. Desirable capital inflow is expected. Capital Market will remain a major source of funding long term capital requirements by firms and governments, as cost of capital in the economy moderates to a much lower level and capital formation increases to a new level that could create decent jobs and drive down inflation.”

He stressed the need for the government to first and foremost eliminate the already known source(s) of exchange rate divergence, to be able to encourage a convergence of rates across markets.

However, he noted that all economic agents will initially experience short-run adjustment pains but noted that the new government is currently taking good steps in the right direction. He also expressed optimism that these policies would boost stock market liquidity and spur a resurgence of IPO in the capital market.

An industry player, who pleaded anonymity, said the decision would impact negatively on the sector and economy. The source noted that retail collections would become an issue once tariffs are changed.

“This means more misery for Nigerians. This single policy will further impoverish the masses. Inflation will skyrocket and funny enough the dollars will still not be available. This same trick was used during IBB days in 1985 when the dollar was N3 and the rest they say is history now.

“No country has ever floated her currency and benefits from such action. The list of countries that tried and failed is too big to even start naming them. The currencies of Ghana, Egypt and Turkey have all been devalued by over 50 per cent in the last year all in the name of ‘floating’. This is a one-way journey into a bottomless pit of self-destruction if you have your assets in naira,” the source said.

[Guardian]

A 23-year-old student of the Federal University, Oye-Ekiti, FUOYE, Damilola Adeparusi, popularly known as ‘Chef Dammy’, has completed her monumental 120-hour longest cook-a-thon to surpass the Guinness World Record-certified title holder, Hilda Baci.

The 300-level Mass Communications student took the internet by surprise when she embarked on the cooking journey, on Friday, and completed it yesterday, to break Hilda’s record for the longest cooking hours done by an individual.

Chef Dammy’s determination and unwavering passion for her craft were on full display as she tirelessly cooked for over five consecutive days, showcasing her culinary skills, creativity, and endurance.

Vanguard gathered that well-meaning individuals have been donating to the renowned chef to encourage her bold steps.

Ekiti First Lady, FUOYE VC, others make donations 

The First Lady of Ekiti State donated undisclosed cash to the chef, while a former Commissioner for Public Work in Osun State, Oluremi Omowaiye, gifted her a with N100, 000 cash prize.

The Vice Chancellor of FUOYE, Prof. Abayomi Fasina, has equally thrown his weight behind Chef Damilola by gifting her a sum of N200,000.

Also, a man identified as Ayodeji Arojo has offered Chef Dammy a two-week cooking tour in the United States.

Arojo, who announced this in a post shared on his Facebook account, shared pictures of the chef from the marathon cooking.

He wrote: “Chef Dammy will be invited for a 2-week cook tour in the United States. I can’t wait for her to start the process.”

[Vanguard]

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it approved the lifting of petroleum products by ExxonMobil at Bonny Terminal, Rivers State.

The NUPRC Chief Executive, Gbenga Komolafe, disclosed this in a statement on Wednesday.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had written to the Nigerian military alleging the illegal lifting of petroleum products by ExxonMobil at Bonny Terminal, Rivers State.

According to the letter dated 8 June and addressed to the Chief of Defence Staff, Lucky Irabor, the agency claimed that an illegal petroleum lifting operation was taking place at the Bonny River terminal.

The letter, signed by the agency’s Chief Executive, Farouk Ahmed, claimed that ExxonMobil was lifting Butane at the terminal with the vessel marked Barumk Gas without the authorisation or participation of the agency responsible for regulating operations at the terminal.

Necessary clearance obtained

In its reaction, Mr Komolafe said ExxonMobil applied and obtained necessary clearance from NUPRC to lift 12,600 metric tonnes of Butane aboard a vessel named Barumk Gas on May 26, 2023.

He explained that the operation was legitimate and in line with the commission’s statutory mandate as the technical and commercial regulator of the upstream petroleum sector in Nigeria, as stipulated by law.

“Our attention has been drawn to some publications in the media between June 12 and 13, 2023, alleging the illegal lifting of Butane at the Bonny River Offshore Terminal (BRT) by ExxonMobil.

“The publications quote a sister regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as the source of the allegation,” the statement said.

Mr Komolafe added that being the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria, it has become necessary for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to state the actual position regarding the transaction referred to.

“It is important to state that ExxonMobil formally applied to NUPRC for approval of its operations as an integrated operation, in line with Sections 8(d) and 318 of the Petroleum Industry Act, 2021.

“Following a careful evaluation of the request, NUPRC approved accordingly,” the statement said.

Consequently, he said ExxonMobil applied and obtained necessary clearance from NUPRC to lift 12,600 metric tonnes of Butane aboard a vessel named Barumk Gas on May 26, 2023. Barumk Gas berthed at the loading jetty at BRT on June 7, 2023.

“Loading operation commenced and ended on June 8, 2023, after which an official of NUPRC on site (at the BRT) issued a Certificate of Quantity and Quality (CoQ), as statutorily required for the fulfilment of requirements of accurate hydrocarbon accounting, reporting and ability of the vessel to sail to its delivery destination.

“This is in line with global best practice,” the statement said.

“NUPRC wishes to state categorically that the said operation was legitimate and in line with the Commission’s statutory mandate as the technical and commercial regulator of the petroleum upstream sector in Nigeria, as stipulated by law.”

The commission said it is unaware of any illegality in the said transaction, and none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of government.

“It would be recalled that the 9th senate set up an ad hoc committee to investigate oil lifting, theft and the impact on petroleum production and revenues on the heels of the growing spate of crude oil theft in the upstream petroleum sector.

“Following the conclusion of its investigation and presentation of its findings on the floor of the Senate on November 7, 2022, the committee of the Whole passed far-reaching resolutions, amongst which was the need for streamlining operations of MDAs at the crude oil export terminals in Nigeria,” it said.

Mr Komolafe said: “In line with section 7(ee) of the Petroleum Industry Act, 2021, the Senate resolved that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should assume full regulatory oversight of all existing crude oil export terminals.”

He explained that the president sought the opinion of the then Attorney General and Minister of Justice, who, after a review, concurred with the Senate resolution and reaffirmed that the said resolution was in line with the letter and spirit of the PIA, 2021, which seeks to promote ease of doing 0business and investments and enhance the transparency of hydrocarbon accounting.

Subsequently, he said the former president, Muhammadu Buhari, approved the senate resolution and explicitly directed immediate compliance with the resolution, insisting that NUPRC is the sole and only regulatory entity to regulate and monitor activities of all existing crude oil export terminals in Nigeria, in line with the relevant section of the PIA, 2021.

“The directive was sent to all relevant MDAs and stakeholders for compliance.

“Arising from the above, the NUPRC also notified industry operators and relevant stakeholders of the Presidential directive and its readiness to assume full regulatory oversight immediately.

“We wish to assure industry players of regulatory certainty and the commitment of NUPRC to discharging its responsibilities towards enhancing the ease of doing business, facilitating investments, stability and predictability in the Nigerian upstream petroleum industry,” the statement said.

Meanwhile, responding to the allegation in a message to PREMIUM TIMES Monday morning, a spokesperson for ExxonMobil said the Nigerian National Petroleum Company (NNPC)/Mobil Producing Nigeria Unlimited (MPN) Joint entire are carried out in full compliance with the law.

“My response to your inquiry is that all operations of the NNPC/MPN Joint entire are carried out in full compliance with the law,” Oge Udeagha, the media and communications manager for ExxonMobil affiliate companies in Nigeria, said.

[Premium Times]

Economic and Financial Crimes Commission (EFCC) has uncovered phantom projects in the N819 billion 2022 Supplementary Budget.

The implementation period of the supplementary budget was on May 27 by the Ninth National Assembly from June 30 to December 31.

The budget is one of the challenges inherited by the Godswill Akpabio and Tajudeen Abass-led .10th National Assembly.

But the EFCC detected many sharp practices and under-the-table deals by the immediate past lawmakers, including most principal officers of the National Assembly.

Out of the 277 projects, 258 projects with contract value of N704, 789,763,043.00, are domiciled in the Federal Ministry of Works and Housing.

Most of the projects on “phantom roads” allegedly belong to members of the 9th National Assembly.

Five ongoing projects and rehabilitation works were allocated N140.1 billion.

The 258 projects comprise 184 new ones, 23 Federal Road Maintenance Agency (FERMA) projects and 51 ongoing projects.

Also in the budget are 121 projects worth N320. 7 billion located in the states of the principal officers of the immediate past Assembly.

A principal officer secured 14 of the projects with a cost of N55, 816,232,553.90.

A minority principal officer got N16, 521,273,684.74 allocated to him.

Other irregularities highlighted in the Supplementary Budget are duplication of projects, inclusion of already completed projects to siphon funds, ongoing and rehabilitation of projects with seemingly outrageous amounts, outright padding.

Records indicated that many projects were inserted in the budget of the Federal Ministry of Agriculture, Federal Ministry of Water Resources and in the Federal Capital Territory Administration.

It was gathered that with the ongoing investigation, many senators and House of Representatives members may face trial.

Some of the documents on the alleged budget fraud revealed how Ministries, Departments and Agencies (MDAs) were held hostage by some lawmakers.

A document reads in part: “Intelligence indicates that most of the projects of phantom roads amounting to billions of naira, which were inserted into the Federal Ministry of Works estimates, belong to members of the National Assembly.

“Despite this Supplementary budget, most of these projects are still in the 2023 Budget.

“Due process was not followed in arriving at the projects majority of which are new projects that looking at the time can come under the 2023 Supplementary Budget.”

Some of the specific details were contained in another document.

It says: “Two hundred and fifty-eight projects amounting to N704, 789,762,043.00 are domiciled under the Federal Ministry of Works and Housing. The 258 projects comprise 184 new projects, 23 FERMA projects and 51 ongoing projects.

“The 258 projects are spread across all the states in Nigeria except Enugu State.

“Three projects have the sane narration in the 2022 Amended Appropriation Act and 2022 Supplementary Act. Five ongoing projects have the considerable sum of N140. 080 billion.

“The rehabilitation of the National Assembly Complex, for Thirty Billion Naira (N30,000,000,000.00), an ongoing project, is approved for the Federal Capital Territory Administration (FCTA) in the Act.

“As of 15th January, 2023, the project has 70% for procurement of materials progress, 35% for overall work progress, and payment made so far is nine billion, two hundred million naira (N9,200,000,000.00).

“One hundred and twenty-one projects out of the total 277 projects listed in the Supplementary Act, worth N320, 722,065,252.08 are in the states of the Principal Officers of the National Assembly and Heads of Committees who supervise the various ministries.

“In the Ministry of Water Resources, the Supplementary Act further budgets N500 million for the Pategi Water Supply Project in Kwara State, an already completed project.

“A seemingly outrageous amount was quoted for rehabilitating the Nasarawa Water Project, a project that the Ministry has almost completed.”

As at press time, it was gathered that only the intervention of President Bola Ahmed Tinubu could halt the plot to fleece swindle the nation of scarce resources.

A highly-placed source said: “The President needs to allow a comprehensive audit of the Supplementary Budget and some of these infractions.

“What the lawmakers did will have strong effects on the economy. How can 2022 Supplementary Budget run till December 31st 2023?

“Are we in a Banana Republic? The President must act to avoid running conflicting budgets.”

A document highlighted the implications of the extension of the tenor of 2022 Supplementary Act.

It says: “The action of the National Assembly, which extended the life of the Supplementary Budget to December 2023 and the amendment of the Central Bank of Nigeria Act, has the following negative consequences.

“The Auditor-General of the Federation cannot audit the 2022 Accounts of the Federal Government of Nigeria until the end of 2023. An act that goes against the Constitutional provision that states that the Federal Government Accounts of 2022 shall be audited before 30th June 2023.

“The Federal Government of Nigeria will run two books of accounts throughout 2023, which is unhealthy for the economy. There will be more borrowing for the Federal Government through Ways and Means.”

William Samoei Ruto, the president of Kenya, has urged African countries to stop doing intracontinental commerce in dollars. President Ruto recently emphasized the necessity to stop depending on the US currency for economic transactions between Djibouti and Kenya during his speech to the Djibouti parliament.

Currently, in order to do business between Djibouti and Kenya, traders must purchase US dollars. President Ruto questioned if using US dollars in commerce between the two countries was really necessary.

President Ruto emphasized that the African Export–Import Bank (Afreximbank) has provided a mechanism that enables traders within the continent to engage in trade using their respective local currencies. Afreximbank facilitates the settlement of payments in local currency, making it possible for traders to conduct transactions in a more seamless manner. The President expressed Kenya’s support for the Pan-African payment and settlement system, which is administered by Afreximbank.

President Ruto raised the question of why it is necessary to purchase goods from Djibouti and pay for them in US dollars. He stressed that there is no valid reason for this practice. The President clarified that the intention is not to oppose the US dollar, but rather to promote more unrestricted trade. He suggested that purchases made from the United States can still be settled in US dollars, while transactions with Djibouti can be conducted using local currencies.

It is worth noting that Afreximbank, established in 1993 under the auspices of the African Development Bank, is a pan-African supranational multilateral financial institution. Its primary objective is to promote and finance intra- and extra-African trade activities.

President Ruto’s remarks reflect Kenya’s commitment to fostering greater economic integration within Africa and reducing reliance on external currencies for regional trade. The proposal to shift away from the US dollar in intracontinental trade could potentially streamline transactions and promote economic growth among African nations.

However, journalist Simon Ateba has cautioned that implementing President Ruto’s call for a shift away from the US dollar may face challenges. In his analysis, Ateba acknowledged that while alternative currencies and regional trading blocs facilitate trade within their respective regions, such as the euro in the European Union or the Chinese yuan in East Asia, there are various reasons why many nations continue to use the US dollar for trading.

Ateba emphasized the importance of understanding these reasons, as they shed light on the current state of global trade dynamics. He highlighted the fact that countries with more stable and widely available currencies, backed by a robust economy, tend to attract more trading partners. Ateba gave an example of a small country with limited trade and influence, where its currency is rarely used outside its borders due to various factors such as a lack of trading partners or limited manufacturing capabilities. In contrast, a powerful nation with a stable currency that is widely accepted and used in numerous countries gains more prominence in international trade.

The journalist listed several reasons why the US dollar remains the preferred currency for trading on a global scale. First, the US dollar has held the status of the dominant global reserve currency since the conclusion of World War II. Central banks worldwide hold US dollars as a significant component of their foreign exchange reserves, ensuring stability and liquidity within their economies. Second, the strength and stability of the US economy, coupled with trust in the US government, instill confidence among international traders and investors.

Furthermore, the US’s position as one of the largest trading nations, with a significant portion of global trade conducted in US dollars, simplifies international transactions and reduces exchange rate risks. The depth and liquidity of the US financial markets, including the New York Stock Exchange and the US Treasury market, provide access to a wide range of financial instruments denominated in US dollars.

Ateba said, “It is true that while the US dollar is widely used, alternative currencies and regional trading blocs facilitate trade in their respective regions, such as the euro in the European Union or the Chinese yuan in East Asia.

“However, the question remains: Why do many nations use the US dollar for trading? There are numerous reasons, and it is important to understand them. While these reasons may change over time, eventually leading to the emergence of a new global currency that is stable and widely available, comprehending the existing reasons helps maintain a sense of excitement.

“Consider a small country that engages in minimal trading. Once you leave that country, their currency is hardly used by anyone. There are various reasons for this, such as limited trading relationships, lack of capital to extend beyond their borders, or a scarcity of attractive investments.

“Now, envision a more powerful nation with a stable currency that is widely available in numerous countries. This country manufactures goods and services that are in demand worldwide, and it maintains stability, fostering trust from the rest of the world that it will not default on its obligations. In such a scenario, more people will opt to trade using the currency of the more influential nation, compared to the smaller nation that has little impact. The lesson here is that when conditions change, and a country experiences civil unrest or economic turmoil, its currency may collapse, leading to the emergence of a more stable and widely accepted currency.”

While using local currencies in Africa for trading among African nations may sound great, it is clear that it would depend on many factors, including the stability of the African continent, the growth of trading volume in Africa, the volume of trade between Africa and the rest of the world, and many other reasons.

Hearing has formally commenced in the petition filed by the Lagos State governorship candidate of the Labour Party in the March 18 election, Gbadebo Rhodes-Vivour, challenging the return of Governor Babajide Sanwo-Olu.

Although the petitioner was absent on Wednesday, his lead counsel, Olumide Ayeni, SAN, called four witnesses in proof of his clients petition.

The first witness, Mr. Obinna Nwokesi, described himself as the Supervisor/Ward Chair of Ilupeju Industrial Estate (Ward 14) in Mushin Local Government.

Led in evidence in-chief by the counsel, the witness identified his statement on oath made on April 9 and urged the tribunal to accept it as his evidence in the petition. The document was subsequently tendered and admitted in evidence by the Tribunal.

Under cross-examination from counsel to INEC, Charles Edosomwan, SAN, the witness admitted that he was not a polling agent but said he supervised the polling agents in the 23 units of the ward. He also admitted that he was not a collation officer at the ward level.

He specifically said, “I personally observed disturbances in polling unit 04, 05 and 16, but I didn’t observe in the rest of the 20 because I could not have been everywhere myself.”

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The witness in his statement had also written, “Voters were beaten or intimidated from voting. The members of the APC unleashed violence and fear on the people which led to them being unable to cast their votes. Members of the APC were allowed to vote twice without going through accreditation…”

When asked if INEC was a part of the violence, the witness answered no. He also reiterated that he could not be everywhere and his testimony covered reports of agents who reported to him.

Under cross-examination by counsel to the Governor of Lagos and his deputy, Bode Olanipekun, SAN, the witness admitted that he wrote his statement himself.

In paragraph 5(e) of his statement, the witness had written, “The results were not uploaded via the Bimodal Voter Accreditation System (BVAS), which is a critical tool for ensuring the transparency and credibility of the electoral process”.

When asked by the governor’s lawyer to tell the court the full meaning of BVAS, the witness said he did not know.

Olanipekun: But you wrote your witness statement yourself?
Witness: Yes.
Olanipekun: What name did you put on your witness statement?
Witness: IIW which stands for Ilupeju Industrial Ward.
Olanipekun’: How many signatures do you have?
Witness: Two.
Olanipekun: Did you wear any tag on election date?
Witness: Yes. It’s INEC’s tag for party agents and ward supervisors. I wore a tag for supervisor which gave me the right to patrol all 23 polling units.
Olanipekun: Where did you vote?
Witness: I was to vote at Esther Osiyemi.
Olanipekun: Apart from LP agents who had official tags, did your party allow any of its members to carry any mark to show they were LP supporters on Election Day?
Witness: Not at all
Olanipekun: Did you see other political parties carry any marks?
Witness: I saw just one party, APC, carrying dresses, caps…all over the 23 polling units.

Under cross-examination from counsel to the APC, Norrison Quakers, SAN, the witness admitted that he was not accredited by INEC but insisted that his supervisor tag allowed him to go round all the polling units.

He also claimed that he was beaten by APC thugs in polling unit 04 and 05 which were close to each other.

When asked to show in his witness statement where he testified that he was beaten, the witness admitted that he did not write that down.

Quakers: “You also did not say in your statement on oath, the events that transpired in polling unit 04, 05 and 16, am I correct?
Witness: You are correct.

The witness was discharged at this point and a second witness, Adeyemi Joseph was called. Led by counsel to the petitioner, he also identified his statement on oath and urged the Tribunal to accept it as his evidence in the petition.

Attempts by the counsel to tender certified copies of the results of all 50 polling units in Kayode/Fadeyi (Ward 7) in Mushin Local Government where the witness swore that he oversaw all activities in all the 50 polling units were rejected by the respondents.

The respondents took their time to count the documents and noted that it was 49 and not 50. Among other things, they stated that the discrepancy in the figure attacks the credibility of the witness and they all objected to the admissibility of the documents and reserved further reasons for their objections till their final address.

Despite the objections, the tribunal admitted the documents in evidence as exhibits. The tribunal also admitted another set of 25 pages of pink-coloured documents said to represent Certified 
True Copies (CTCs) of collated results.

Under cross-examination from counsel to INEC, Edosomwan, the witness admitted that he was neither a polling agent or a collation officer.

Edosomwan: You oversaw 50 poling units and the LP had polling agents in all of them and you were not a polling agent?

Witness: Yes and I was not a polling agent.
Edosomwan: An INEC officer was the collation officer and not you?
Witness: Yes.

Edosomwan: Look at the registrar of the court. Is she Yoruba, Hausa or Igbo?
Witness: I don’t know.

Edosomwan: You can’t know, it’s not written on the forehead. Do you seriously allege that in all the 50 polling units, only APC members were allowed to vote twice?
Witness: Yes, I was in all the polling units and I observed same. I saw it with my physical eyes.

Edosomwan: I put it to you that it’s not possible, that you could not have been everywhere?
Witness: I know it’s not possible but I have polling agents.

Edosomwan: The uploading of results happened in polling units?
Witness: Yes and I’m not a polling agent.

Edosomwan: The only way you could have known is what the agents told you?
Witness: Yes, but I have video evidence from all polling units.

Edosomwan: Was INEC part of the people who beat up voters?
Witness: They didn’t beat up people but they collected money. I was told about some and I witnessed some with my physical eyes.

Edosomwan: Where is the report you made to the police about people being beaten up or paid?
Witness: I don’t have any report here.

When Bode Olanipekun took over the cross-examination, he asked the witness, “How many APC members voted twice?”

Witness: I can’t remember
Olanipekun: How many non-Yoruba people are in this courtroom?
Witness: I don’t know.

Olanipekun: If somebody says there were 83 polling units in Kayode/Fadeyi ward, will you say that person is a liar or not?
Witness: The person is lying.

In his statement on oath, the witness had indeed written 50 polling units in one paragraph and subsequently wrote 83 in another.

Olanipekun: In paragraph five of your statement, you said you resumed at your duty post at 6:05 am. Where was your duty post? Or did you resume at all 50 polling units?
Witness: My duty post was my polling unit but I supervised all the polling agents.
Olanipekun: Look at paragraph three, you said you have the authority of the petitioners? Who are those petitioners?
Witness: The thugs of the APC.

The response prompted an uproar in the courtroom.

Olanipekun: Let’s do a random sampling. Give him the documents from the polling unit, Forms A1, A2, A3. Give him Form A30 which is in the middle, and Form A49, which is at the end. Can you see the signatures of LP agents on all those forms?
Witness: Yes, sir.

Under cross-examination from APC counsel, Quakers, the witness was also shown some of the documents earlier admitted in evidence.

Quakers: Show him Exhibit A75 Form EC86. Did you sign it?
Witness: No.

Quakers: But is there an LP agent’s signature on it?
Witness: Yes, at the bottom.

Quakers: Show him Exhibit A50-A74. Is there any part of the document which you tendered that you signed?
Witness: No.

Under re-examination, counsel to Rhodes-Vivour reminded the witness that he had earlier been told to look at the registrar of the court and say whether she is Yoruba, Hausa or Igbo.

The counsel further asked the witness if he had seen the registrar of the court before that day. The line of questioning did not go down well with the other parties, who insisted that there was no ambiguity in the question asked which needed clarification.

The tribunal agreed with them in its ruling. The tribunal also listened to the evidence of two more witnesses, bringing to four the number of witnesses that testified on the first day of hearing.

Further hearing was adjourned till today, Thursday, June 15th

President Bola Tinubu has been urged to push for the recognition of the Lagos State 37 Local Council Development Areas (LDCAs) as full fledged Local Government Areas (LGAs).

Despite Lagos having an estimated population of about 23 million people, the state has just 20 LGAs.

In 2003, Tinubu then governor of Lagos, created the 37 LCDAs, but they are yet to be recognized by the Federal Government.

The LCDAs include Agbado/Oke-Odo, Agboyi/Ketu, Agege, Ajeromi, Alimosho, Apapa, Apapa-Iganmu, Ayobo/Ipaja, Badagry West, Badagry, Bariga, Coker Aguda, Egbe Idimu, Ejigbo, Epe, Eti-Osa East, Eti-Osa West, Iba, Odi Olowo/Ojuwoye, Ifako-Ijaiye, Ifelodun, Igando/Ikotun, Igbogbo/Bayeku, Itire Ikate, and Kosofe, among others.

Speaking with THE WHISTLER on Wednesday, the Chairman of the Centre for Anti-Corruption and Open Leadership (CACOL), Mr. Debo Adeniran, said converting the LCDAs to full fledged LGAs would bring government closer to the people.

Being the most populous state in Nigeria and also the economic nerve centre of the country, Lagos has been seeking to be given Special Status. Adeniran called on the president to convince the National Assembly to make the LCDAs constitutional, adding that it would give the people a sense of belonging.

“”What I believe that the incumbent president will do, is to ensure that the creation of Local Governments that the past government since the days of (former president Olusegun) Obasanjo described as inchoate, will make it constitutional; will do everything and convince the National Assembly to make such thing constitutional,” the CACOL boss said.

“Once those 37 LCDAS are converted to full fledged Local Governments, government will come directly to the grassroot and the grassroot will have sense of belonging,” he added.

Reacting to the inauguration of the 10th National Assembly, he expressed pessimism that the newly inaugurated Assembly could become another 9th Assembly, which he described as more or less a rubber stamp to the executive.

He, however, called on Civil Society Organisations (CSOs) and the media to be vigilant, so as to keep the legislators of the 10th Assembly on their toes.

“We’re likely going to see a legislature that is going to more or less rubber stamp whatever executive push to them, in the mode of the 9th Assembly.

“We need a legislature that will actually play their oversight functions on MDAs with all sincerity without inputting political interest in their work and the outcome of such work; who would be able to look at the executive arm eyeball to eyeball,” Adeniran said.

“Our vigilance will put our representatives on their toes. Every member of the House of Representatives and every senator would be regularly asked questions about their stewardship in the National Assembly. Once we do that, and we do it with all sincerity of purpose, then it would be difficult for them to serv as rubber stamp. If the people don’t want a policy to scale through, we will start the legislative work from our constituencies and ensure that we push it to our representatives at the National Assembly, and follow it up to ensure that they do not change the voice of the people when they get there. That’s the only way we can have a vibrant National Assembly that will represent the will and aspirations of the Nigerian people,” he noted.

Chief Edwin Clark, an elder statesman and Ijaw leader has alleged that the immediate past Delta State Governor, Ifeanyi Okowa used the State’s 13 per cent derivation proceeds to fund his Premium Trust Bank Ltd and 13 companies linked to him.

He made the allegation on Arise Tv claiming that Okowa received over N1trillion from the Federal government as the balance of the 13 per cent derivatives earmarked for oil-producing states.

Clark alleged, “I wrote a letter to Okowa, the governor to account for the money he has been collecting. He didn’t care, he said he has been spending the money, the answer they gave me was he has spent N5bn in paying pensioners in the State. How does that come under 13 per cent? Are pensioners oil-producing pensioners? He also spent the money on building a university in his own village.

“So, I decided to employ a lawyer who went to the Account General of the Federation to obtain the certified copies of all the amount they paid to Delta State from 2007 to December 2022. We got a letter from the Accountant General’s Office listing everything. All that every oil-producing state has produced and have been paid.

“The one paid to Delta State came to N1.76trn. (Emmanuel) Uduaghan alone from 2007 to June 2015, received about N700bn, the balance was paid to Okowa because oil was coming very easily and prices were very high. So, what he was paid was N1 trillion. Instead of paying 50 per cent of the 13 per cent derivation to DESUPADEC according to Section 14 of the DESUPADEC which made it mandatory, he now held the entire 13 per cent dishing out and approving every contract DESUPADEC awarded.

“Instead of paying 50 per cent of the 13 per cent derivation to Delta State Oil Producing Areas Development Commission (DESOPADEC) according to Section 14 of the DESOPADEC which made it mandatory, he now held the entire 13 per cent dishing out installments and approving every contract DESUPADEC awarded.

“I said give me an account. So, I wrote him a second letter which I have already copied to the Economic and Financial Crimes Commission (EFCC). Governors are now wealthier than their states. He has a bank, and today most of our money has been paid into that bank. A two-year-old bank, Premium Bank. The Managing Director is one (Emmanuel) Emefienim from the same village as Okowa. His brother Monday Okowa who was in Zenith Bank is there this man (Okowa) has 13 companies and I mentioned them to him. I told him ‘You have been paying the 13 per cent to this account, 13 of them, but he denied them.

“We have written to him that the companies are private. Okowa has embezzled our money and he didn’t even account for it even in our annual budget. Is it part of the security fund?

Recall that the former Delta State governor had denied any involvement in the bank.

“We state categorically that neither Dr. Ifeanyi Okowa nor any of his associates are shareholders or directors in Premium Trust Bank whether directly or indirectly.

“For the records, PremiumTrust Bank was founded by our MD/CEO, Emmanuel Emefienim (an accomplished Banker with over 30 years top level experience) alongside seasoned and well diversified entrepreneurs who have distinguished themselves in various fields and endeavors. Please note that information on ownership and directorship of our Bank is in the public domain and available on our website,” the bank also said in a statement.

But Clark said, “He is a liar. I’m sorry to say this, but why is it that when he wanted the loan of N150bn from a number of banks of which Zenith Bank was to be the leader, he later said that Premium Bank should lead? Zenith Bank withdrew. His brother who worked in Zenith Bank is now the General Manager of Premium Bank.

“I want to ask a question, Premium Bank facilitated a loan, a two-year-old bank, who are the shareholders of the bank and how much do they have?”

Attempts to reach Okowa’s former Chief Press Secretary, Charles Ehiedu Aniagwu, for comment proved abortive as calls and text sent to him have not been responded to as at the time of filing the report.

After three years and four months in office, Economic and Financial Crimes Commission (EFCC) Chairman Abdulrasheed Bawa got the boot yesterday.

He was suspended from office indefinitely by President Bola Ahmed Tinubu, who also ordered a probe into his activities in office.

Bawa was promptly arrested and detained last night by the Department of State Services (DSS), whose spokesman Dr Peter Afunanya said: “Bawa arrived a few hours ago. The invitation relates to some investigative activities concerning him.”

The presidential directive on Bawa came from the Office of the Secretary to the Government of the Federation (OSGF) Senator George Akume through a circular by Director of Information Willie Bassey.

It said the President’s action followed allegations levelled against him.

He has been directed to hand affairs of the Commission over to the Director of Operations.

He said: “President Bola Ahmed Tinubu has approved the indefinite suspension from office of Mr. AbdulRasheed Bawa, as the Chairman, Economic and Financial Crimes Commission (EFCC) to allow for proper investigation into his conduct while in office.

“This follows weighty allegations of abuse of office levelled against him.

“Mr Bawa has been directed to immediately handover the affairs of his office to the Director, Operations in the Commission, who will oversee the affairs of the Office of the Chairman of the Commission pending the conclusion of the investigation”.

Bawa’s predecessor Ibrahim Magu was controversially removed from office.

Bawa, 43, at the time of his appointment, was the youngest to lead the anti-graft agency.

He has been attending meetings at Aso Villa with President Tinubu and other officials of government since the president’s inauguration on May 29.

In the last two weeks, he has had an engagement with former Zamfara Governor Bello Matawalle, who he accused of mismanaging the state’s resources.

Matawalle fired back, describing the EFCC chair as corrupt and asking him to quit office and submit himself for investigation.

Previous chairmen of the agency are Mallam Nuhu Ribadu, Mr. Ibrahim Lamorde, Mrs Farida Waziri and Magu – all of them senior police officers.

Bawa is the first civilian to head the agency, where he worked for more than 20 years as an investigator before his appointment.

He led the team that investigated the alleged sleaze under the watch of former Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke.

Bawa until his appointment, was a Deputy Chief Superintendent.

He was nominated as substantive Chairman on February 16, 2021, and was confirmed on February 24, 2021, by the National Assembly.

Bawa holds a degree in Economics from the Usmanu Danfodio University, Sokoto, where he also obtained a Master’s in International Affairs and Diplomacy. He is said to be studying Law currently.

Bawa recently appeared at the Ikeja High Court to testify for the EFCC in a petrol subsidy scam case.