Latest News
The crisis of confidence and the battle for the control of the PDP both nationally and in Rivers State is gaining momentum and the 18th of April is the date fixed at the Wadata Plaza battleground being the date the PDP NWC had scheduled to hold its National Executive Committee (NEC) meeting which promises to make or mar the party’s future. Except coordinated control is Deployed, the April 18th NEC may be ambushed legally. Events leading to such coordinated attacks have begun to manifest in many folds.
At a recent public event in Port Harcourt, the Gov of Rivers state Siminilaye Fubara comforted party faithful that the list of party caretaker committee members that emanated from the party is fake and should be discountenanced and that anyone caught parading himself as an EXCO on that fake list will be dealt with mercilessly. Faced with this existential threat Wike in swift action had already gotten Amb Damagun to Authenticate His List of Excos For Rivers as a matter of finality. The stage is therefore set for a tripartite clash between Wike, Fubara, and Damagun at the NEC meeting.
There are discordant tunes emanating within the Aso Rock Presidential Villa of the gradual loss of relevance of Wike within the PDP and the likelihood of him losing effective control of the Party to Atiku Abubakar. Should that be the case his significance to Tinubu’s 2027 aspiration will have paled into insignificance making him less relevant in the scheme of things.
As a strategic move to bolster his political confidence and prove relevance, Wike is selling a new narrative that the battle for the soul of the party is between himself and Atiku Abubakar. To shore up his credibility, significance, and relevance, Wike characteristically decided to stir the hornet's nest.
At a recent media parley with some media executives in Abuja Wike had lambasted Rivers state PDP elders as expired politicians and with a speed of lightning Uche Secondus, Austin Opara, and Celestine Omehia all responded by referring to him as a chronic, self-serving, and pathological liar in their separate press statements. He had claimed in that media chat that Secondus was not a member of the party by the court of appeal and Supreme Court judgment recently delivered. He promised to take up the matter soon.
Perhaps that explains why one Titus Jones filed a lawsuit in the federal high court before Justice I E Ekwo seeking to restrain Uche Secondus and Austin Opara from attending and or participating in the April 18th NEC meeting. Why was this suit necessary since a judgment according to Wike had barred Secondus from being a member of the PDP? The truth of the matter is there is no such judgment and Wike is scared that the presence of Uche Secondus and Austin Opara will add value and assist the governor in overwhelming him at the meeting. As the clock continues to tick towards the NEC meeting the outcome could rather be conceived rather than imagined.
About 60 members of the Peoples Democratic Party (PDP) in the House of Representatives have threatened to quit the party over the ongoing crises in Rivers State and ten other chapters.
Ikenga Ugochinyere, a member of the House from Imo State, and five other members issued the threat at a press conference at the National Assembly complex in Abuja on Monday.
Some of the other lawmakers at the conference are Abdulmaleek Danga (PDP, Kogi); Midala Balami (PDP, Borno); Aliyu Mustapha Abdullahi (PDP, Kaduna) and Awaji-inombek D. Abiante (PDP, Rivers).
The lawmakers also demanded the removal of Acting National Chairman of the party, Umar Damagum, before its rescheduled National Executive Council (NEC) meeting.
They said they were speaking on behalf of 60 members of the PDP in the House. There are a little over 100 PDP lawmakers in the lower chamber.
“PDP can’t be handed over to the APC. APC officers can’t emerge from our party officials in Rivers or any of the ten states with the alleged imposition of APC interest. Let the world know that why they are hell-bent on imposing APC officials as our party caretaker members is to fulfil a planned bigger plot,” Mr Ugochinyere said.
Background
The PDP has been grappling with strife since the presidential convention in 2022. The blowback led to the suspension of former National Chairman, Iyorchia Ayu, who Mr Damagum replaced in an acting capacity.
Many have speculated that the acting chairman is an ally of FCT minister, Nyesom Wike.
More so, the recent fight between Mr Wike and the Rivers State Governor, Siminalayi Fubara, has further escalated the crisis in the party. Despite President Bola Tinubu’s intervention, the situation in the state has not abated.
Last week, the National Working Committee (NWC) of the party released a list of Peoples Democratic Party (PDP) Caretaker Committee. However, Mr Fubara rejected the list, stating that there was an agreement for a three-month extension of the tenure of the local and ward executive.
“I know that a lot of you saw something flying in the social media dailies. Let me brief you, we had a meeting, and we agreed that, not just in Rivers State, but in all the States affected, the Executive Councils (of PDP) should be extended for three months,” Mr Fubara had told journalists recently.
Damagum must go
Speaking on behalf of the lawmakers, Mr Ugochinyere rejected the NWC’s list, stating that it is part of a plot by the ruling APC to undermine the PDP.
“Despite the decision to retain everybody, Mr Damagun went ahead and received a list of APC agents and announced them as members and leaders of the PDP Local Government Caretaker Committees wholly in Rivers State and partially in at least ten other states. This is a direct attempt to kill the PDP and ensure it goes into extinction,” he said.
He stated that Mr Damagum ought to have exited his acting role but continue to serve in an acting capacity while working against the interest of the party.
“The Umar Damagum-led NWC is assiduously working to hand over the party to the ruling APC and their agents. Serious leadership would have looked into the acts of open anti-party activities, established why they happened and set up measures to ensure that it never happened again in the party.
“He was only constitutionally allowed to step in, hold the fort and midwife the process through which the North-central Zone where the chairmanship of the party was originally zoned to present another person who would complete the slot of the North-central.
“Not only did Damagun hold tight to the seat for well over a year now, he has abdicated every responsibility of the office of the chairman of PDP and is very comfortable serving APC interests,” he said.
Resolutions
The lawmakers gave six conditions to address the crisis in the party. The conditions are:
Top of which is the resignation of Mr Damagum and the investigation of some members of the party over alleged anti-party activities.
“Immediate resignation of Umar Iliya Damagun as Ag. National Chairman of PDP for anti-party activities and allow North-central to produce the acting chairman as clearly stated in the PDP Constitution or watch us reconsider our membership of the party in the months ahead if the right thing is not done.
“Or removal of Umar Iliya Damagun by the NEC of the party with further sanctions against him for his anti-party activities.
“That the NEC of the party should ensure that the list of party caretaker committees in Rivers State and all other 10 states tampered with by Damagun and his APC friends are reversed and announced as originally agreed, that is, by extension of the tenures of the outgoing leadership. The move to use serving APC members in Rivers State and 10 other states to lead our party caretaker at the state, LGA and ward level is the highest act of political provocation and impunity that we are going to fight with everything in us.
“That NEC of PDP should review the sources of generating finance for the party to pay its national secretariat staff and to discharge all other responsibilities of the party and to investigate the allegation that pro-APC supporters are funding the present PDP of today. This is the height of political treason.
“That PDP NEC sets up a Committee to investigate all continuing acts of anti-party activities from 2023 and mete out appropriate sanctions which will serve as a deterrent and also encourage cleansing of the party. Ward executives of our party where people were involved in anti-party activities or still involved like Cross River, Rivers, Benue, Abia, Ondo, Kano, Kogi, Edo etc should immediately announce the expulsion of all those involved without fear or favour. This must be done immediately. Any executive that cannot do this should be removed by members in those wards, and new officers who have the courage to enforce the provisions of our party constitution constituted to do the needful.
“That a credible party leader from the North-central be confirmed chairman of the party in line with the zoning formula as enshrined in the constitution,” the resolution reads.
Mr Ugochinyere said the failure of the party to comply with the resolutions could prompt the lawmakers to sever ties with their party.
“Where these demands are not met, we, the opposition lawmakers coalition from PDP in the National Assembly, will be left with no other options but to suspend participating in the party activities and seek a new political relationship where decisions in that party will not be taken in the secretariats of another political party,” he said.
The Central Bank of Nigeria, CBN, has prohibited the use of Foreign Currency-denominated collaterals for Naira loans by all Nigerian banks.
The apex bank disclosed this on Monday in a letter to all commercial banks signed by its Director Banking Supervision Department, Adetona Adedeji.
However, the new guidelines gave exception to Eurobonds issued by the Federal Government of Nigeria and Guarantees of foreign banks, including Standby Letters of Credit.
“The Central Bank of Nigeria has observed the prevailing situation where bank customers use Foreign Currency (FCY) as collaterals for Naira loans.
“Consequently, the current practice of using foreign currency-denominated
collaterals for Naira loans is hereby prohibited, except, where the foreign currency collateral is: Eurobonds issued by the Federal Government of Nigeria; or Guarantees of foreign banks, including Standby Letters of Credit.
“In this regard, all loans currently secured with dollar-denominated collaterals other than as mentioned above should be wound down within 90 days, failing which such
exposures shall be risk-weighted 150 per cent for Capital Adequacy Ratio computation, in addition to other regulatory sanctions,” CBN stated.
The development comes in the wake of the recently announced minimum capital requirements for all banks.
For months, CBN’s governor, Olayemi Cardoso had continued to roll out policies to defend the Naira and Nigeria’s economy.
The House of Representatives will intervene in the recent increase in electricity tariff by the Nigerian Electricity Regulatory Commission upon its resumption on April 23, 2024, Deputy Speaker, Benjamin Kalu, has said.
Recall that the development which has culminated in consumers in Band A paying as much as a 300 per cent increment has been widely condemned by opposition parties, prominent citizens, and civil society organisations.
It will be recalled that a spontaneous outcry greeted the development upon its announcement by the electricity authorities, stimulating fears that it would escalate the economic hardship in the country.
Speaking virtually on the special edition of “Ben Kalu’s Mandate”, a call-in radio programme of FLO FM, Umuahia, Abia State, on Monday, the lawmaker noted that the parliament would find a way to resolve the issue.
A statement by the Chief Press Secretary to the Deputy Speaker, Mr Levinus Nwabughiogu, quoted Kalu as saying that the parliament would continue to conduct its affairs with the greatest interest of Nigerians in mind.
“It’s a general problem. While I was on my holidays, one of the things I was bothered with was a letter sent to me by the majority leader of the House on the need for us to intervene in a matter involving the University of Ibadan Teaching Hospital power supply. They were disconnected because of this hike, and they don’t have the money to pay. We said it’s an essential service. Something should be done about it while we look at other details.
“I can assure you that when we resume, it’s one of the things we are going to look into. We will look at both sides of the coin to know a win-win approach to it because we cannot suffocate and also the investors. We cannot allow Nigerians to suffer unduly. So, it is one of the things we will look at by the time we resume, and we will find a way to solve it,” the statement quoted Kalu as saying.
On the possibility of a new constitution for Nigerians, Kalu said the onus is on the people to participate fully in the process, while the National Assembly will help amplify their voices.
“Some schools of thought expressed the view that they want a new constitution. They want us to drop the old one and take up a new one. Some elders known as The Patriots are also asking for a new constitution. But as you know, we are the people’s parliament.
“You are our bosses. Whatever the people decide for us to do when we have our public hearings and all these engagements, when we move around because we are going to go to every zone, most local government areas or senatorial or geopolitical zones to engage, is what we will look at.
“If the people have a general consensus that this is what Nigerians want and the template of what they are asking for; what is wrong with this one that you want to change? What would the new one look like, and what do you have in mind? We will be able to factor that in.
“I am happy that you are conscious of the move for the amendment of the constitution. I like it when people call to discuss that. It shows there is an awareness which is very key. It’s only when you are aware that you can engage and make the right impact. So, I appreciate you. This is the time to lend your voice to this,” he said.
Former Edo State Deputy Governor, Philip Shaibu, has described his impeachment by the state House of Assembly as illegal.
Earlier, the state House of Assembly impeached the embattled state deputy governor following the adoption of the report of the seven-man investigative panel set up by the state Chief Judge to probe allegations of misconduct against him.
He was probed on allegations of perjury and leaking of government secrets by a panel headed by Justice S.A. Omonua (retd.) which ended its sitting on Friday after Shaibu failed to appear.
Shaibu said the impeachment was due to his ambition to become the state governor.
He, however, noted that the impeachment did not follow due process.
He made his position known in a video shared on his X handle on Monday.
He said, “My good people of Edo State, I thank you all for standing by me in these troubling circumstances as the deputy governor of Edo State.
“It is with a heavy heart, yet a resolute spirit, that I come before you to address the recent events that are unfolding in our dear state. I denounce in the strongest term the illegal impeachment by the Edo State House of Assembly over baseless charges.”
He added that his impeachment was an attack on democracy and a show of dictatorship.
“This is not just an attack on me as an individual but on the democracy that we hold dear.
“It is a dangerous descend into dictatorship and a threat to the foundation of our democracy. Let it be clear that this impeachment was hatched because of my ambition to contest the Edo State 2024 governorship election under the Peoples Democratic Party, PDP. An ambition that is a legal right to all citizens of the Federal Republic of Nigeria.
“It is a sad reality that in our political landscape, ambition is met with resistance. Those in power seek to silence opposition through illegitimate means. I have devoted my life to serving the good people of Edo state with integrity and honesty. I have worked tirelessly to improve the lives of our citizens. I have upheld the values of democracy and justice and yet in return, I am faced with baseless accusations and a blatant disregard for due process and the rule of law,” he said.
Speaking further, Shaibu described the allegations levelled against him as a move to conceal the real motive behind his impeachment.
He said, “The allegations brought against me are nothing more than a smokescreen to conceal the true motive behind this impeachment. It’s a flagrant abuse of power and a betrayal of the trust the people of Edo have placed in their elected officials.
“We refuse to stay inactive while our democratic institutions manipulate and exploit for personal gain. We will fight this injustice with every atom of strength in our veins for the sake of the people of Edo State and the future of democracy. I call upon all well-meaning citizens of Edo and indeed all Nigerians who believe in the principle of democracy and justice to stand with us in this moment of crisis.
“We cannot allow tyranny operation to take root in our society, we must resist the forces that seek to undermine our freedom and trample upon our rights.”
He, however, appealed to the judiciary to ensure justice prevails, saying, “To the members of the Edo State House of Assembly who have chosen to forsake their oath of office and partake in this charade, I say this, history will judge harshly for your betrayal of the people who elected you to represent their interests. But know this, you do not have the power to silence the voice of justice and truth.
“I call upon the judiciary and all relevant authorities to intervene and uphold the principles of justice and fairness. Let the truth prevail over lies. Let the rule of law triumph over lawlessness. I am confident that the legal system will vindicate me and expose the sham that has been orchestrated against me.”
He added that his impeachment would not deter him from fighting for the rights and freedom of Nigerians.
“I want to reaffirm my commitment to the people of Edo State to the values that bind us together as a collective. I will not be deterred or intimidated by those who seek to subvert our democracy. I will continue to fight for the rights and freedoms of Edolites by extension Nigerians that suffer oppression. I will stand firm in my resolve to seek justice.
“As we stand united in the face of tyranny and oppression, I urge all to remain calm and go about our lawful duties as good citizens and true democrats. Together, we will overcome this chapter in our history and emerge stronger and more resolute in our pursuit of freedom and justice in our society,” he added.
Media
The Central Bank of Nigeria (CBN) has continued with the disengagement of staff in furtherance of its ongoing restructuring as it sacked a fresh batch of 40 staff mostly from the development finance department (DFD).
Because the sack letters were released late Friday, details of those affected are sketchy but our reporter learnt that Musa Zgabawa Bulus, an Assistant Director of the CBN, heading the National Collateral Registry (NCR) was affected.
NCR is an initiative of CBN aimed at improving access to finance particularly for Nano Micro Small and Medium Enterprises (MSMEs) leveraging movable assets.
Deputy directors and assistant directors were mostly affected with 22 from the DFD and the remaining 18 from Medicals and Procurement Services Department.
Recall that not less than 27 members of staff, most of them directors at the Central Bank of Nigeria, were affected by the first batch of dismissals, even as more are set to be axed in the coming days.
Amongst those affected were eight directors, 10 deputy directors, five assistant directors, two principal managers and two senior managers.
With the latest number of affected staff, the total has now reached 67, in what appears to be a series by the Olayemi Cardoso-led Board of Governors.
Why DFD staff were affected
The move may not be unconnected with the refocusing of the CBN away from development finance interventions
Briefing after the last Monetary Policy Committee meeting, Cardoso said: "The intervention has two dysfunctions. One, it takes a lot of time for something you do not have an expertise to do, and two, if not carefully handled, creates a lot of distortions in your economy through inflow of money supply.
"The interventions that took place in the recent past were estimated in excess of N10 trillion. I’m not talking about ways or means. What was the budget of the federal government of Nigeria? What was the budget of the largest states in Nigeria? Do the maths and it would tell you the extent of damage too much of what may appear to be good things can do to an economy."
Ag. Director signing currency an irregularity- Staff members
Senior Management members of the CBN who spoke to our reporter on the condition of anonymity also raised concern about the perpetration of illegality which has seen the current Coordinator of the Currency Operations Department, Olayemi J. Solaja, append his signature on the Naira note.
Daily Trust findings suggest that Mr Solaja has not yet gone through the process of being confirmed a full-fledged Director and his letter of appointment indicates that he is to Coordinate the affairs of the department.
According to the source: “The process has not been followed by the CBN Governor who talks about institutional discipline. How can someone sign the national currency as Director currency when not confirmed or appointed?
“From the history of currency to when naira and kobo were printed and minted, there is a CBN policy on modalities to sign Banknotes.”
When Daily Trust sought to know who signs the currency in the absence of a substantive director, the source said: “They continue printing using the former director’s signature. Throughout the period of the acting appointment of the previous occupant, she did not sign the currency until she was given an appointment letter as a director.”
Daily Trust gathered that when the Managing Director of the Nigerian Security Printing and Minting (NSPM) drew the attention of the CBN to the irregularity, The Deputy Governor, Operations, Mrs. Emem Nnan Usoro allegedly overruled, insisting that the coordinators’ name be imprinted on the currency.
The CBN rule book( a compendium of policies and Regulations) stipulates the process of appointment in the Bank for appointment as Director is as follows: (a) Advertisement of the vacancy, indicating the requirements for a prospective candidate. (b) Screening of candidates/documentation (c) Conducting interviews for qualified candidates (d) Final results/ communications of appointment.
Efforts to get the reaction of the Ag director of Corporate Communication, Hakama Sidi Ali, was not successful as she did not pick her call or return the text messages to her line.
Emirates, UAE, has concluded plans to resume flights with Nigeria.
This followed numerous visits from President Bola Tinubu to UAE over the communication breakdown between both countries.
Featuring on Arise Television on Monday, the Minister of Aviation and Aerospace Development, Festus Keyamo, said the Emirates Airline had already indicated its readiness in a letter sent to the Nigerian Government.
Keyamo explained that what transpired during the earlier visit and resolution was not fake but was presented in a ‘hasty’ manner.
He said: “Emirates flight resumption is almost happening. I just received a letter from Emirates. The letter is on my phone now. They have gone through all the gamut and they are ready to come back. They will announce the date because to restart a route, they must get an aircraft for that route.
“I am announcing to Nigerians for the first time; that I just received a letter from Emirates now. The letter is with me. I have a hard copy thanking you for all the efforts we made. Mr President was the showman here. He was the one who pushed for it. He made my job easy because he went there, and had a diplomatic shuttle to resolve all the issues.
“That was why I said the last announcement was hasty and not fake news.
“They will announce the date for their next flight. We have received a letter confirming that all the issues have been resolved and prepared to start coming back. It may be before June.”
Apart from Emirates suspending flights to Nigeria, in 2022, the UAE Immigration Department notified its trade partners and travel agencies that it was stopping visa applications from 22 countries, 20 of which are African nations.
The Central Bank of Nigeria has begun another tranche of dollar sales to Bureau De Change Operators to further boost Naira’s appreciation at foreign exchange market.
The National President of the Association of Bureau De Change Operators, Aminu Gwadabe exclusively confirmed this to DAILY POST on Monday.
Accordingly, the apex bank has started selling $10,000 FX to each eligible BDC at N1,101 per dollar.
The apex said All BDCs are allowed to sell to end-users at a margin not more than 1.5 per cent above the purchase rate from CBN.
The implication is that BDCs are to buy at N1,101 per dollar and sell at N1,117.52.
“It is true, CBN had started selling dollars to our members at N1,101/$1, it was reviewed downward from N1,251 per Dollar”, he said.
The development came barely 48 hours after BDCs urged FX allocation below N1,251 per dollar to sustain the Naira’s appreciation in the forex market.
Recall that CBN sold $10,000 at an exchange rate of N1,251 to BDCs to defend the Naira in the foreign exchange market last month.
For a month, the Naira has continued its appreciation against the dollar, which stood at N1,251.05 per dollar last Friday.
The Federal Government on Monday arraigned Binance and one of its executives, Tigran Gambaryan, on five count charges bordering on money laundering
Gambaryan, who took the plea on behalf of the company as its representative denied committing the alleged offences.
Earlier, Justice Emeka Nwite had, in a brief ruling, dismissed the objections by Gambaryan to take plea on behalf of the company on the ground that he was not its representative and had no authority to do so.
Nwite, in dismissing the objection, held that Gambaryan had in an affidavit claimed to be a representative of the company and transacted businesses on its behalf in Nigeria.
The anti-graft agency said the offences, which were committed between January 2023 and December 2023 in Abuja, were contrary to and punishable under Section 18(3) of the Money Laundering (Prevention and Prohibition) Act, 2022.
Count one accused the defendants between January 2023 and January 2024 in Abuja of carrying on the specialised business of other financial institutions without valid licence.
The offence is said to be contrary to Section 57(1) and (2) of the Banks and Other Financial, Institutions Act, 2020 and punishable under Section 57(5) of the same Act.
Nwite turned down the foreign national’s plea to be remanded in the custody of the Economic and Financial Crimes Commission, EFCC.
The Judge subsequently ordered that the defendant be taken to Kuje Prison on remand.
Justice Nwite fixed April 18 for hearing of the defendant’s application for bail and May 2 for the trial of the charges.
Details later.
The Ikeja High Court, Lagos, has remanded former Central Bank of Nigeria, CBN, Governor, Godwin Emefiele in custody of the Economic and Financial Crimes Commission, EFCC.
Emefiele was arraigned before the court by the anti-graft agency.
The embattled former governor of the apex bank is being prosecuted for allegedly abusing his office and allocating billions of dollars to himself.
Justice Rahman Oshodi remanded him till the next adjourned date, Thursday, April 11 when the court will give its ruling on his bail application.
Oshodi also ordered the remand of Emefiele’s co-defendant Henry Omoile at the Kirikiri Prison pending the court’s ruling.
Emefiele and his co-defendant, Omole, were arraigned on 26 fresh counts.
In the charge marked ID/23787c/2024 and dated April 3, 2024, the EFCC alleged that Emefiele abused his office between 2022 and 2023.
More...
The Edo state house of assembly has impeached Philip Shaibu as deputy governor of the state.
The impeachment followed the adoption of the report of a seven-man investigative panel.
The panel was set up by Daniel Okungbowa, chief judge of Edo, and was headed by S. A. Omonuwa, a retired justice.
Shaibu was accused of “misconduct, perjury and disclosure of government secrets”.
The commencement of the panel’s sitting followed the resolution by the state house of assembly on initiating impeachment processes against Shaibu.
Shaibu had since fallen out with Godwin Obaseki, governor of the state.
At the panel’s inaugural sitting on April 3, the house of assembly was represented by Joe Ohiafi, deputy clerk, legal.
Shaibu was represented by Oladoyin Awoyale, a professor and senior advocate of Nigeria (SAN).
In July, Shaibu approached a federal high court in Abuja with a suit to prevent the impeachment plot against him.
He asked the court to restrain Obaseki, the speaker of the state assembly, and the chief judge, from “initiating impeachment proceedings or sanctioning any impeachment” against him.
Thereafter, the court restrained Obaseki, the speaker, and other defendants in the suit from initiating impeachment proceedings against Shaibu.
In September, Shaibu withdrew the suit he filed against Obaseki, paving the way for the proceedings which eventually sacked him from office.
[TheCable]
Says ‘Govt Must Withdraw From Business
Constitutional lawyer and former chairman of the Nigerian Bar Association (NBA), Dr. Olisa Agbakoba (SAN), has said the Nigerian economy is beginning to turn, showing signs of recovery.
The Senior Advocate of Nigeria, however, noted that the turning points now witnessed in the economy are due to the efforts of Aliko Dangote and Allen Onyema, CEO of Dangote Group and CEO of Air Peace Airlines, respectively.
He said the forex market reacted to Dangote Refinery commencing sales of diesel and Air Peace flying to the UK, as the Naira strengthened against the dollar, adding that the much-needed relief for Nigerians will occur if this trend continues.
He, therefore, advised the government to withdraw from business, stressing that Nigeria must move immediately from consumption to production.
Agbakoba, who said that the Nigerian economy has gone through very challenging times over the past year, noted that inflation reached 28.92 per cent in December 2023, the highest in 27 years.
In a post on his X handle on Friday, the legal expert noted that the development raises the issue of putting the private sector at the centre of economic development.
The post titled, ‘IS THE ECONOMY BEGINNING TO TURN?’, reads: “Nigeria’s economy has gone through very challenging times over the past year. Inflation reached 28.92% in December 2023, the highest in 27 years. Food inflation rose to 33.93% in December 2023.
“The naira depreciated significantly, losing 25% of value in a single day in June 2023 when the government removed pegging to the US dollar. This made imports much more expensive.
“Removal of fuel subsidies in May 2023 caused petrol prices to jump by 196% practically overnight, from ₦189 to ₦557 per litre. Prices went through the roof!
“According to the World Bank, accelerating inflation pushed an additional 24 million Nigerians into poverty in the first five months of 2023. By late 2022, 63% of Nigerians (133 million people) were considered multidimensionally poor.
“Major foreign companies like Procter & Gamble, GSK, and Bayer stopped manufacturing and scaled back operations in Nigeria, due to the tough operating environment. This resulted in massive job losses.
“However, there may be signals the economy may be turning.
“Dangote refinery commenced sales of diesel, significantly increasing supply and crashing prices significantly. Diesel prices dropped from about ₦1,700 per litre to around ₦1,350 per litre. This was just by pumping 100 million litres. Dangote plans to pump another 100 million litres. Diesel prices may dip below N1000. Dangote announced plans to begin the sale of Premium Motor Spirit (PMS) by May. This will significantly bring down prices. Experts predict petrol prices to crash by at least 25% to N400.
“Additionally, @flyairpeace with the support of Festus Keyamo, Minister of Aviation, finally broke through the reciprocity barrier in aviation. Air Peace is now flying to the UK. Ticket prices monopolised by British Airways and Virgin Atlantic crashed by at least 60%.
“The forex market reacted to all these. The Naira strengthened against the dollar. Experts suggest the price of the dollar may well fall below ₦1000 in the coming months. If this trend continues, much-needed relief for Nigerians will occur. The Central Bank of Nigeria may potentially review the Monetary Policy Rate (MPR) by Q4.
“It is notable that the turning points now witnessed in the economy are the work of just two persons (Dangote and Onyema). Imagine what 10, 20 or 50 private-sector individuals can do. This raises the issue of putting the private sector at the centre of economic development. Government must withdraw from business.
“We must move immediately from consumption to production. Q4, 2024, may look on the bright side but it is still early days.”
The Federal High Court in Abuja will today (Monday) resume sitting in the lawsuit filed by the Edo State Deputy Governor, Philip Shaibu, challenging the move by the state House of Assembly to impeach him.
Justice I. E. Ekwo had on March 28 adjourned till April 8 (today) for the defendants in the suit to appear before him to show cause why Shaibu’s prayer to halt the impeachment proceedings should not be granted.
However, the seven-man impeachment panel headed Justice Omonuwa (retd.) ended its sitting on Friday after Shaibu failed to appear before the panel that probed allegations of perjury and leaking of the government’s secrets against him.
The panel, which had its inaugural sitting last Wednesday in Benin, ended its sitting on Friday with Shaibu or his counsel failing to show up.
The panel had adjourned till Thursday for Shaibu to open his defence and when he didn’t show up, he was given Friday as the final day to come and defend the allegation against him, which he failed to do.
The Edo State House of Assembly, which is the petitioner in the case, had on Wednesday opened and closed its case, paving the way for Shaibu to defend the allegations levelled against him.
Counsel for Shaibu, Prof Oladoyin Awoyale (SAN), attended the Wednesday (the opening day) sitting but excused himself in the middle of the hearing after the panel refused his prayer to suspend the proceedings pending the outcome of a lawsuit in Abuja.
The panel chairman, Justice Omonuwa, upheld the opposition to the suspension prayer by the Assembly, represented by its Deputy Clerk, Joe Ohiafi.
After Awoyale excused himself, Ohiafi went on to state the Assembly case against Shaibu.
In his submission, the Deputy Clerk told the panel that Shaibu leaked the Edo State government’s secrets in the affidavit he filed in support of his suit in Abuja. He said Shaibu tendered documents relating to the State Executive Council’s meeting.
According to Ohiafi, Shaibu violated the Oath of Secrecy he took and acted contrary to the provisions of Schedule 7 of the 1999 Constitution.
At Friday’s sitting, the Assembly was represented by its Legal Officer, N.U. Ibrahim, who appeared with two others.
Ruling on the development, the Chairman of the panel noted that “the panel adjourned sitting for the last time for today (Friday) to allow the respondent to defend himself.
“The panel shall retire to go and write its report as required by the constitution.”
A member of the administrative staff of the panel, who pleaded anonymity, told journalists present in the courtroom that the panel would forward its report to the Edo State Chief Justice, who set up the investigative panel.
However, our currespondent gathered from a source close to the House of Assembly that the lawmakers were also waiting for the report of the impeachment panel to get to the Assembly as soon as possible.
The source said the House was not in a position to determine when the report would get to it as it was the Chief Judge, Justice Daniel Okungbowa, who set up the panel independently.
“I can only say that the House of Assembly is also waiting for the report after the panel ended its sitting on Friday. It is the Chief Judge who set up the panel and the House cannot determine when the report gets to it,” the source said.
The Association of Bureaux De Change Operators of Nigeria has appealed to the Central Bank of Nigeria to adjust and lower its applicable exchange rate below the N1,251/$ it pegged for its members.
ABCON National President, Aminu Gwadabe, stated this in a letter to the CBN Director, Trade & Exchange Department.
The appeal comes when the parallel market rate of 1,235/$ is lower than the BDCs’ applicable buying exchange rate of 1,251/$ (plus a 1.5 per cent margin) set by the CBN in its latest tranche of interventions.
Gwadabe lamented that the naira’s speedy recovery made CBN’s selling rate to BDCs very expensive and difficult to offload to retail end buyers, who were going to the undocumented forex operators for cheaper rates.
He further expressed concerns that many BDCs, who funded their accounts for dollar allocations, were yet to receive their allocation of dollars to meet the legitimate critical demand of their clients due to scrutinisation of the BDCs’ documents for collections at the various designated centres.
He noted that this had made the BDCs vulnerable to exchange rate risk and significant losses.
“We discovered a worrisome development where many of our members who paid for dollar allocations at N1,251/$ with a margin of 1.5 per cent are yet to receive their disbursement. This is happening in the face of the prevailing open market rate of N1,235/$, which is lower than the authorised applicable exchange rate by the CBN to the BDCs,” the letter said.
Despite this development, ABCON lauded the CBN leadership for the recall of BDCs into the official FX window and steps taken by the apex bank to strengthen the naira against the dollar and other global currencies.
ABCON president stated that the positive fallout of the CBN’s efforts to restore the naira’s glory came faster than expected, reiterating its commitment to working with the apex bank to realise the objectives of the government towards exchange rate stability and economic growth.
He added that ABCON’s forecasts in the ongoing market development indicated a willingness of the market to correct itself with realistic price discovery as the naira is forecast to continue to appreciate further across the market with the increasing sources of foreign exchange inflows aided by the CBN policies
“It is in view of the above market developments that we write to appeal to your good selves for readjustments and review downwards of our funding rate of the last tranche (2nd bidding) from N1,251/$ further down to reflect current market rate discovery.
“This became imperative as it is only the consideration of the readjustment downward that will enable our members to upload their holding positions,” he noted.
The association also requested that the process of payments at the various disbursement centres be reviewed in the immediate time to a medium time automation to achieve enhanced timely payments while also observing the spot nature of transactions.
According to the group, the apex bank should introduce a cut-off time for payments and collection of bids, adding that the current open-ended system for payments and collection of bids does not make for effective administration and control of the process.
“Consequently, many of our members are jittery to bid/collect their bid for fear of losing money as the current market reality has the potential to force us to sell below cost price and antithetical to recent market price discovery,” it elucidated.
ABCON insisted that the disturbing exchange rate disparity could be addressed by a quick and decisive response of the apex bank, which would go a long way in bolstering BDC operators’ confidence in the ongoing intervention by the Central Bank of Nigeria as well as enhance their participation in the bidding process.