[PRESS RELEASE] NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability
Admin![[PRESS RELEASE] NNPC Ltd Faces Financial Strain Due to PMS Supply Costs, Impacting Supply Sustainability](/media/k2/items/cache/d4d9e0ac6b9b3b6aa5b622321bed571f_L.jpg)
NNPC Ltd has acknowledged recent reports in national newspapers regarding the company's significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.
Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
A high-level tripartite committee of the three major regulators of the financial services sector has been formed to scrutinise new funds being raised by banks under the ongoing recapitalisation in the banking sector.
Members of the committee are drawn from Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC).
Three banks – Fidelity Bank Plc, Guaranty Trust Holding Company (GTCO) Plc and Access Holdings Plc – have already concluded their offer periods.
They are expected to submit the key details of funds raised and subscribers to the committee for verification.
Under the guidelines for the recapitalisation exercise, capital verification is a major requirement before the clearance of the allotment proposal and release of the funds to the bank for onward completion of the offer process and addition of the new capital to its capital base.
Multiple sources yesterday confirmed that the three banks that had concluded their offer periods might have raised more than N1 trillion in new capital from existing shareholders and new investors, the first cluster of funds that will go through the tripartite committee’s capital verification.
Investment banking sources said the banking sector’s recapitalisation got off to a good start as investors showed strong appetite for banking shares.
Fidelity Bank started its hybrid offer with a N127.1 billion rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share and a public offer of 10 billion ordinary shares of 50 kobo each at N9.75 per share. It subsequently secured approvals to issue additional 8.2 billion ordinary shares to absorb potential oversubscription.
The rights issue size was doubled with additional 3.2 billion shares while 5.0 billion shares were added to the public offer, bringing the bank’s offer size to N205.45 billion.
GTCO floated a N400.5 billion public offer of 9.0 billion ordinary shares of 50 kobo each at N44.50 per share.
Access Holdings sought to raise N351 billion through a rights issue of 17.773 billion ordinary shares of 50 kobo each to existing shareholders at N19.75 per share.
Sources said the three-party committee would be scrutinising the newly raised funds on five key parameters of basic Know-Your-Customer (KYC) requirements, anti-money laundering and illicit financial flows protocols, anti-terrorism rules, fit-and-proper assessment of a major investor in bank and general compliance with extant rules, including fairness and spread of allotment and inclusivity among others.
Under the KYC requirements, the committee will seek to pinpoint sources of funds by matching names and other personal details such as bank account details, telephone number and address to valid national identity, Bank Verification Number (BVN) and other databank, including the Nigerian Interbank Settlement Systems Limited (NIBSS) BVN validation portal. Corporate applicants are also expected to provide relevant details of incorporation, signatories and funding source.
The committee is expected to “lift the veils” on the sources of funds, by both individual and corporate subscribers, to forestall money laundering, illicit financial flows and proceeds of criminal activities such as kidnapping and banditry.
The funds will be screened against the provisions of the Capital Market Operators Anti-Money Laundering, Combating Terrorism Financing and Proliferation Financing Regulations, 2022, and the Money Laundering-Prevention and Prohibition Act 2022.
A source said the government was determined to ensure that criminal groups and individuals do not use the channel of banking recapitalisation to legitimize proceeds of their criminal activities.
In January 2022 officially declared bandit groups operating in any parts of the country as terrorists with the release of the Federal Government’s Gazette proscribing their existence and restraining any person or group of persons from participating in activities of any of the groups.
The directive also ordered verification of accounts, funds and other assets and confiscation of anything traceable to bandits and terrorists.
The CBN specifically conducts a fit-and-proper assessment for any major investor in the banking industry, in addition to proper notification required by extant capital market rules. CBN’s Rule 4.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria stipulates that where shares amounting to five per cent of a holding company are acquired, there must be a disclosure and specific request for approval of such an investment.
The Nigerian capital market rules set a threshold of five per cent for “material” or significant shareholding, which must be disclosed to the regulatory authorities and the board of the affected company.
The committee will seek to ensure that investors do not bypass “material shareholding” disclosure by splitting their subscriptions or using insiders and related parties, whose shareholdings ultimately belong to the same portfolio of influence.
The Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, assured that the apex capital market regulator has undertaken necessary initiatives to ensure shorter time-to-market, which enables offers to be completed without delay.
Time-to-market refers to the length of time it takes for a company to complete the capital raising process and list its shares on a stock exchange.
In an interview at the weekend, Agama noted that SEC had in June 2024 issued a framework on banking sector recapitalisation programme, which outlines the guidelines and procedures banks are required to follow to raise capital during the recapitalisation period.
He said the guidelines provide a framework for a smooth, transparent, and efficient capital raising process.
According to him, the framework serves as a comprehensive guide for banks and holding companies and market participants on the requirements for capital raising and mergers and acquisitions, while assisting participants to navigate the recapitalisation programme effectively to ensure proper and timely review and approval of the transactions.
“The major highlight of the framework is the requirement for an e-offering platform to be provided by a securities exchange for the capital raising plan, which allows for end-to-end offering, subscription and payment process.
“This is based on our resolution to enhance time-to-market, efficiency, transparency and integrity of the recapitalisation programme. The use of e-offering platform eliminates multiple identities and reduce potential for unclaimed dividends among other benefits.”
Agama outlined that SEC has implemented various initiatives to reduce time to market with the aim of improving the efficiency and attractiveness of the Nigerian capital market, promote economic growth and development.
He said the initiatives include streamlined registration processes, introduction of an electronic filing system and enhanced regulatory frameworks among others.
He noted that shorter time to market can benefit capital market development in several ways like increased liquidity which will lead to faster listing allowing companies to access capital more quickly, increased liquidity in the market and enable companies to allocate resources more efficiently, thereby driving economic growth.
“Shorter time to market will also improve investor confidence because when the listing processes are Efficient, it can enhance investor trust and confidence in the market.
A shorter time to market can make a jurisdiction more attractive to companies and investors, promoting competition and growth,” Agama said.
He pointed out that SEC had in 2019 issued a new rule on electronic public offering (e-PO) system which streamlines the process of issuing new securities.
This he said, allows for faster processing of applications by automating various steps, reducing manual paperwork, and facilitating broader participation adding that the implementation of e-PO is part of a broader effort to make the market more efficient and reduce time to market.
“The Commission has been actively digitizing its operations, including the submission and processing of applications for securities registration, to reduce delays caused by manual processes. This involved the use of electronic platforms for document submissions and approvals, which not only speeds up the process but also improves transparency.
“We have undertaken regulatory reforms aimed at simplifying and streamlining the approval processes. These reforms include updating rules and regulations to reflect current market realities and adopting international best practices that enhance efficiency. For instance, the commission introduced checklist review for registration of fixed income securities, thereby shortening the review and approval timelines.”
Oil giant Nigeria National Petroleum Company Limited (NNPCL) yesterday admitted that its financial strain may affect the sustainability of petrol supply.
Its admittance came on the heels of reports that it is indebted to suppliers to the tune of about $6 billion.
According to the reports, supply agents have been reluctant to make the product available.
The development has forced the oil giant to resort to stock rationing and to prevail on major suppliers not to cut off supply.
No fewer than five vessels meant for Nigeria have refused to discharge fuel to NNPCL due to fear of non-payment, one of the major suppliers said at the weekend.
It was learnt that the $300 million bailout by the Federal Government was not enough for the company to sustain petrol supply nationwide.
Only a few filling stations had the product to dispense to end-users yesterday, forcing desperate motorists to queue for hours in Lagos, Abuja and other cities.
Independent marketers took advantage of the situation to sell a litre of petrol for as high as N950 in some parts of Lagos. It sold for more in other states.
There were indications that the Federal Government was weighing options.
The NNPCL admitted the financial strain in a statement by its Chief Corporate Communications Officer, Olufemi Soneye.
“NNPC Ltd has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers.
“This financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd remains dedicated to its role as the supplier of last resort, ensuring national energy security.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” Soneye said.
A source told The Nation that the government had shown concern.
“The Federal Government is already weighing options because of the security implications of acute shortage of petrol in the country.”
On Saturday, Soneye said in the oil trading business, transactions often operate on credit with intermittent outstanding balances, saying there was nothing extraordinary in the outstanding financial liabilities.
He was reacting to reports by Reuters that the uncertainty over the payment of the $6 billion has made most suppliers “hesitant” in bringing in products.
The international news agency had indicated that Afreximbank disbursed $925 million to NNPCL as part of a syndicated $3.3 billion crude oil-backed prepayment facility.
The NNPCL, using supply agents, has been the sole importer of petrol.
The NNPCL is “struggling to supply dealers due to shortage of product at its tanks”, a source confirmed at the weekend.
The source said: “Bulk sales of ships and trucks to depot owners have slowed down in the last five days due to a shortage of supply.
“No bulk sales had happened since Tuesday, which heightened the scarcity in the downstream sector.”
An oil chief who is in the know of the goings-on in the industry linked the fuel queues being experienced in the last eight weeks “largely to the reduction in the supply of products by suppliers who were being owed.”
“I was aware that at some point in mid-August, the Federal Government had to come in by giving money to NNPC to defray some of the outstanding liabilities and boost the confidence of the suppliers to continue.
“However, what was paid was about $300 million which only helped in getting a reprieve for about a week before the queues fully returned,” he said.
Another source said: “Suppliers of petrol are hesitant about supplying new products to the Nigeria National Petroleum Company Limited (NNPCL) due to piling debts.
“At present at least five vessels originally intended for supply to Nigeria have refused to discharge fuel to NNPCL due to fear of payment.
“The situation has increased pressure on the petroleum company which has now resorted to rationing the stock it has while appealing to its long-term suppliers not to halt supplies.”
Reuters said: “Nigeria’s debt to gasoline suppliers has surpassed $6billion – doubling since early April – as state oil firm NNPCL struggles to cover the gap between fixed pump prices and international fuel costs, under rising cost of living.”
The agency said the company had still not paid for some January imports, and the late payments amount to $4 billion to $5 billion.
Under contract terms, NNPCL is meant to pay within 90 days of delivery.
“The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,” one industry source said.
The news agency said: “At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.
“Nigeria’s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical one million tonnes in previous months.”
Price not sustainable
On August 19, the oil giant claimed the government has been moderating the average retail price of petrol, with a view to ensuring that Nigerians have access to it at a stable price.
The NNPCL said it has been making PMS available for retail distribution at about half of the landing cost under an agreement with the government to safeguard Nigerians from the global fluctuation in oil prices.
Its Chief Financial Officer Umar Ajiya explained that the company has been offsetting the shortfall in landing price and sale price through a reconciliation arrangement between the government and the company.
He said the company has not paid any money to any marketer in the name of petrol subsidy in the last eight to nine years.
While the official pump price of petrol is about N600 per litre, the average landing cost is about N1,200.
The Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, said the NNPC Limited needed to adjust its pricing strategy for imported fuel to curb smuggling.
He also admitted that NNPCL had financial constraints in maintaining and rebuilding Nigeria’s ageing pipelines.
Lokpobiri said the weak pipelines are susceptible to vandalism.
Lokpobiri, who spoke at the 2024 Energy and Labour Summit in Abuja, said selling imported fuel below the landing cost is a key factor fueling smuggling activities.
He said: “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop.
“When smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer.
“These pipelines, some dating back to the 1960s and 1970s, are highly susceptible to vandalism and crude oil theft, which significantly impacts the nation’s oil revenue.
“The old, corroded pipelines, some of which date back to the 1960s and 1970s, are easily vandalised,” Lokpobiri explained.
Atiku: List NNPCL shares on Stock Exchange now
Former Vice President Atiku Abubakar yesterday urged the Federal Government to ensure the immediate listing of NNPCL shares on the stock exchange in line with the Petroleum Industry Act.
He was reacting in a statement yesterday by his media office on the decision of the NNPCL to hand over the Warri and Kaduna refineries to private operators who are expected to manage and operate them.
Atiku emphasised that such previous efforts under government supervision never worked.
The statement reads: “The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act.
“This would make the company more profitable and enhance transparency and corporate governance.”
The Socio-Economic Rights and Accountability Project (SERAP) has sued the leadership of the National Assembly members for fixing what it described as the running cost of lawmakers.
Joined in the suit were the Senate President, Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas.
The group claimed the duo failed to end “the unlawful practice by the National Assembly of fixing its allowances and running costs, and the failure to account for the monthly running costs paid to members.”
Disclosing this in a statement on Friday, SERAP’s Deputy Director, Kolawole Oluwadare, said the suit was filed last Friday at the Federal High Court, Abuja.
He said it followed a recent allegation by former President Olusegun Obasanjo that the lawmakers fix their salaries and allowances, contrary to the recommendation of the Revenue Mobilisation Fiscal Allocation Commission (RMAFC).
In the suit, the group seeks “an order of mandamus to direct and compel Mr Akpabio and Mr Abbas to end the unlawful practice of the National Assembly fixing its remuneration and allowances termed as ‘running cost’.”
It also wants “an order of mandamus to direct and compel Mr Akpabio and Mr Abbas to disclose the exact amount of the monthly running costs being paid to and received by the lawmakers, and the spending details of any such running costs.”
According to the statement, SERAP seeks “an order of mandamus to direct and compel Mr Akpabio and Mr Abbas to end the alleged practice of paying remuneration and allowances termed as ‘running costs’ into the personal accounts of lawmakers.”
“The provisions of paragraph N, section 32(d) of the Third Schedule to the Nigerian Constitution 1999 [as amended] clearly make it unlawful for the National Assembly to fix its salaries, allowances and running costs,” Oluwadare said.
“The alleged practice of paying running costs into the personal accounts of lawmakers is a fundamental breach of Rule 713 of the Federal Government Financial Regulations, which provides that ‘public money shall not be paid into a private bank account.’”
Former lawmaker, Senator Shehu Sani has suggested that the removal of the customs duties on imported drugs has not reflected in the prices of medical supplies.
Sani said even with the policy, there has not been a drop in prices of drugs at the pharmaceutical shops despite President Bola Tinubu signing an executive order to suspend import duties.
“The removal of the customs duties on imported drugs has not resulted to a drop in prices of drugs at the pharmaceutical shops,” the ex-lawmaker posted on X on Sunday.
DAILY POST reported that Tinubu in June signed an executive order to suspend import duties and value-added tax on essential medical supplies imported into the country.
This was aimed at easing the high cost of locally producing pharmaceuticals, diagnostics, and medical devices such as needles and syringes, among others.
Minister of Health and Social Welfare, Muhammad Ali Pate, who announced the development said: “The order is pivotal to the success of the Initiative for Unlocking the Health Care Value Chain which was approved in October 2023 by the President.
“The order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.”
A Federal High Court in Abuja has summoned the Governor of the Central Bank of Nigeria and the Head of the Legal Services Department of the apex bank to appear before it with specific documents on Monday, September 2, the new date fixed for the continuation of the trial in the money laundering case brought against Binance Holdings Limited and its executives.
At the previous court sitting, the presiding judge, Justice Emeka Nwite, had adjourned the matter to October 11, but the defence counsel had approached the court for a date change, which the court granted by bringing the trial forward a month early.
Binance USA’s Head of Financial Crime Compliance, Tigan Gambaryan, and the exchange’s British-Kenyan regional manager for Africa, Nadeem Anjarwalla, are facing money laundering charges to the tune of $35m brought against them by the Economic and Financial Crimes Commission.
Gambaryan and Anjarwalla were initially both detained in the custody of the Office of the National Security Adviser.
Anjarwalla, however, fled lawful custody on March 22, 2024, while his counterpart, Gambaryan, was moved from ONSA custody to EFCC custody and afterwards to Kuje Correctional Facility, where he is currently detained.
In the document titled Subpoena Duces Tecum, with charge number: FHC/ABCR/138/2024, between the Federal Republic of Nigeria versus Binance Holdings Limited and Tigran Gambaryan, the court asked the apex bank’s heads to appear before it or delegate someone to do so.
It read, “The Governor, Central Bank of Nigeria Plot 33, Abubakar Tafawa Balewa Way, Central Business District, Abuja – FCT.
“You or any other officer you may delegate are commanded in the name of the President of the Federal Republic of Nigeria to attend before the Federal High Court, Abuja Judicial Division, presided over by the Honourable Justice E. Nwite, on the 2nd day of September 2024 at 9 o’clock in the forenoon, and from day to day until the above cause is tried, to bring with you and produce at the time and place mentioned the following documents.
“Certified True Copy of the excel spreadsheet captioned ‘Export Exchange Rate Results’ published on the Central Bank of Nigeria’s website for the period from 1 June 2024 to 16 August 2024.”
In a separate document but with similar wording, the court summons, “The Head, Legal Services Department, Central Bank of Nigeria, Plot 33, Abubakar Tafawa Balewa Way, Central Business District, Abuja – FCT.
“You or any other officer you may delegate are commanded in the name of the President of the Federal Republic of Nigeria to attend before the Federal High Court, Abuja Judicial Division, presided over by the Honourable Justice E. Nwite, on the 2nd day of September 2024 at the hour of 9 o’clock in the forenoon, and from day to day until the above cause is tried, to bring with you and produce at the time and place mentioned the following documents,” part of the subpoena read.
As the people of Sokoto State, especially those in Sabon Birni Local Government Area, continue to battle insecurity, a group of professionals within the local government, Gobir Development Association, has revealed that the people of the community paid over N160bn in levies and ransom payments to bandits in the area.
According to a press statement signed by the chairman of the group, Idris Alhassan Gatawa, and its secretary, Professor Aliyu Gobir, and made available to newsmen in the state on Saturday, it was said that more than two billion naira was also lost to armed bandits.
The group, while reacting to the recent killing of their District Head, Muhammad Bawa, who was killed by bandits following his abduction along Sabon Birni – Sokoto Road after his official engagement in the state capital, condemned the rising case of insecurity in the area.
The group said, “Over sixty billion naira has been paid as ransom, over a hundred billion naira paid as imposed levies by the bandits, and more than two billion naira lost to armed bandits.
“Likewise, about six hundred thousand heads of cattle and five million sheep and goats were rustled within the last five years.
“About two-thirds of the arable farmlands are inaccessible due to the fear of being killed or kidnapped by bandits, causing severe economic losses, hardship in terms of food and nutrition security, and psychological and social imbalances.”
They, however, appealed to the government at all levels to act swiftly to stop the killings, kidnappings, displacement of people, and livestock rustling to restore peace and stability in all areas affected by banditry.
Ebonyi State governor, Francis Nwifuru, has approved the payment of N70,000 minimum wage to civil servants under the employ of the state.
Nwifuru, who made the announcement on Saturday at the grand finale of the Ojiji Izhi New Yam Festival 2024, said he has directed relevant government authorities to draft out modalities for the payment of the new minimum wage commencing in September.
The governor, however, frowned at the lackadaisical manner by which government projects awarded as contract to prominent leaders of the state were handled, especially the housing estates at Izo Autonomous Community in Ishielu Local Government Area.
He gave a marching order to the Commissioner for Housing to ensure the painting of the houses immediately.
He further called on the people of Ebonyi State not to hesitate to report government projects being delayed by contractors.
Pan-Yoruba group, Afenifere, has called on the Federal Government to save Nigeria, expressing concern over what it described as the near collapse of the nation since the administration of President Bola Tinubu took over.
In a communique by its Deputy Leader, Oladipo Olaitan and the Deputy Secretary General, Alade Rotimi-John after a regular quarterly meeting held in Ogun State, Afenifere maintained that the state of the nation has left the people perplexed.
According to the group, the Nigerian people are sorely troubled by the pervasive hardship, crippling hunger, unremitting insecurity in the land, runaway inflation, and massive unemployment all of which have left the people worse off than they were at the beginning.
It also observed the reckless, obstinate and indifferent attitude of the government to the long-term effects of the lack of forethought or purpose regarding the handling of the public revenue.
Afenifere, therefore, rued some of the Tinubu administration’s profligate predilection or inclination to waste resources, stating that $100m or N 240 billion as the purchase price for an Airbus A330 jet for the President and a further $50m to retrofit it was uncalled for.
In addition, Afenifere noted that N950m each as purchase price of a new set of armoured Cadillac Escalade Limousine SUVs as befitting vehicles for the President, N21 billion for renovating a new mansion for the Vice President, N90 billion as subsidy for religious pilgrimage and N10 billion to renovate the Presidential Lodge at Ribadu Road, Lagos, among others, gave an insight of a wasteful nature of the administration.
“Afenifere is scandalised or shamed by the odium and poor international or global image which have attended these profligate or prodigal expenditures.
“We are puzzled that a government can be so masterful at diversionary tactics just to lull the people to sleep and confuse them as they wake amid grave national circumstances and of a strident or sustained debate of its desultory or unmethodical handling of governance,” the group stated.
The Senior Staff Association of Nigerian Universities (SSANU) has urged the Federal Government to suspend the recent policy by the federal ministry of education to peg the minimum age requirement for enrollment for senior secondary school examination at 18 years.
The association described the policy as limiting, backward and said it is capable of short-changing students and their parents.
Addressing journalists at the end of a meeting of principal officers of the association in Abuja, the SSANU President Mr. Mohammed Ibrahim, urged federal government to step the decision down and make further consultations on the matter in order to avoid a crisis in the education sector.
The condemnation of the policy by SSANU adds to the concerns earlier raised by some stakeholders since the policy was made public by the Minister of Education, Prof. Tahir Mamman, last week.
The Minister, who was a guest on Channels Television’s Sunday Politics, had said that individuals under 18 years would no longer be allowed to take part in National Examinations Council and West African Examinations Council exams.
According to Mamman, the Federal Government has directed WAEC and NECO to enforce the 18-year age requirements for candidates seeking to take their exams.
More...
The presidency has given more details about Nigeria’s debt condition under the administration of President Bola Tinubu.
The presidency explained that contrary to some reports that Nigeria’s debt stock increased, the nation’s debt stock decreased by 15% in dollar terms in Q1 2024.
It added that the government is able and committed to repaying its debt.
The explanation was given on Saturday, 31st August, by the Special Assistant to President Tinubu on Social Media, Dada Olusegun, in response to a report by StatiSense, which quoted the debt profile of Nigeria under the nation’s presidents starting from the time of Shehu Shagari to the current administration of President Tinubu.
The presidential media aide explained that the increase in public debt under the current administration is largely due to economic factors, not increased borrowing.
He argued that the Tinubu government is reducing the nation’s debt profile.
Olusegun said President Tinubu’s administration is committed to transparency and responsible economic management.
The bullet points in the post by Olusegun via his X account, titled, ‘Debunking the Myth: Nigeria’s External Debt Under President Bola Tinubu’ are highlighted below.
– Nigeria’s total debt stock decreased by 15% in dollar terms in Q1 2024, contrary to claims of rising debt.
– The increase in public debt is largely due to economic factors, not borrowing:
– Depreciation of the naira exchange rate (from N899.39/$ to N1,330.26/$)
– Interest rate changes
– Securitization of Ways and Means
– The current administration inherited a legacy of N22.7 trillion in outstanding Ways and Means, now being audited and securitized.
– The current Ways and Means deficit stands at N3.4 trillion, offset by operating surpluses from revenue-generating agencies.
– Nigeria’s (FG only) external debt stands at $42 billion.
– Multilateral creditors are owed $20.82bn, while China is owed $5bn.
– The federal government’s economic reforms have impacted foreign exchange and interest rates, contributing to the public debt spike.
– The government’s capacity to pay its debts is intact, with a revamped financial system.
The presidency noted that the addition of Nigeria’s external debt figure provides further context to the discussion, highlighting the country’s overall debt situation while emphasizing the factors contributing to the public debt increase.
‘Envy Is Among Nigeria’s Political Class’ - El-Rufai Laments Amidst Alleged ₦432bn Corruption Prosecution
AFOLABI
Former Kaduna State governor Nasir El-Rufai took to his official X handle over the weekend to share his personal thoughts on what he termed ‘envy’ among Nigeria’s political class.
His lamentation follows allegations of corruption and misappropriation of government funds during his eight years as governor of Kaduna State.
The Kaduna State House of Assembly had claimed that his eight-year administration allegedly siphoned ₦432bn, leaving the state with huge debt liabilities.
Earlier in June, the ad hoc committee set up by the state Assembly to investigate all finances, loans and contracts awarded under the El-Rufai administration submitted its report to the House.
The chairman of the ad hoc committee, Henry Zacharia, said most of the loans obtained under El-Rufai’s administration were not used for the purpose for which they were obtained, while in some cases, due process was not followed in securing the loans.
The Speaker of the Assembly, Yusuf Liman, also said that a total ₦423bn was allegedly siphoned by El-Rufai’s administration leaving the state with huge liabilities.
The committee, therefore, recommended the investigation and prosecution of El-Rufai, and some members of his cabinet by security and anti-corruption agencies for alleged abuse of office, diversion of public funds and money laundering.
The committee also recommended the immediate suspension of the Commissioner of Finance, Shizer Badda, who also served in the same capacity under El-Rufai’s administration.
‘Scandalous Claims’
Responding, El-Rufai’s spokesman, Muyiwa Adekeye, affirmed the integrity of the El-Rufai government and dismissed as “scandalous”, the claims by the committee.
He said, “Malam Nasir El-Rufai is immensely proud of his record of governance and the legacy he left in Kaduna State. This record of consistently high performance in public and private office cannot be altered by any malicious effort to use the auspices of a state legislature for defamation and undeserved smears.
“Many of the officials who served in the El-Rufai government appeared before the ad-hoc committee because of their confidence in the quality of their service and the rectitude which they served Kaduna State. They were under no illusion that they were participating in a fair process. It was obvious that the ad hoc committee was merely going through the motions of an inquiry just to give some gloss to predetermined conclusions.
“It is sad to see such a shameful departure from any notion of decency and fairness by a state legislature. We dismiss with contempt the claims being peddled in connection with the report.
“Malam El-Rufai wishes to assure discerning Nigerians that he has served Kaduna State with integrity and to the best of his capacity, assisted by a hardworking and patriotic team. He complied with all extant laws in all his activities while he was the governor. This jaundiced probe should be disregarded as the politically motivated hatchet job it is.”
He has since filed a fundamental rights suit at the Federal High Court in Kaduna against the state House of Assembly.
‘Envy Leads To Hatred’, Says El-Rufai On A Weekend Reflection
However, in a long post on his on X handle on Saturday, El-Rufai who described envy as an ‘incurable disease’ said he doubted if it could be cured among the political class.
He said, “WEEKEND REFLECTION: “NONE of us has to fail for ALL of us to succeed. And in unity there is strength.” – @VP Kamala Harris, US Vice President (2021-2024) and Democratic Presidential Candidate at the Democratic National Convention,
“The quote above led me to reflect on the meaning and implications for our situation in Nigeria. Feelings of envy require that EVERYONE fails for ONE to succeed.
“Envy is quite prevalent amongst the key actors in our political system. Competence, capacity, and commitment are some personal leadership qualities that attract the envy of those lacking or deficient in these indices.
“Instead of striving to attain, the envious seeks to hate and destroy those that are better. Envy leads to hatred.
“Hatred leads to destructive thoughts and actions, including unspeakable crimes like perjury, malicious prosecution, persecution, unlawful imprisonment, torture and even murder for the target(s) of the envy.
“Can the incurable disease of envy amongst Nigerians, particularly within the members of the political class be cured? Personally, I doubt it.
“The emerging problem of Nigeria is the outcome of the continuously deteriorating competence, capacity and commitment of the political leadership.
“Societies succeed or fail depending on these personal and institutional qualities.
“No matter what, the incurable virus of ENVY has to be confronted and degraded, if not cured, if Nigeria is to achieve its manifest destiny of greatness and leadership of the Black Race. I pray this can be realized. Amen.”
The Ogun State Government said it has revoked the provisional licences granted to 20 private orphanage owners operating in the state, due to non-compliance with regulations and laws prioritising the well-being and safety of vulnerable children in their care.
The state Commissioner for Women Affairs and Social Development, Adijat Adeleye, disclosed on Friday during a meeting with members of private orphanage homes at the ministry’s conference room, Oke-Mosan, Abeokuta, in the state capital.
The commissioner expressed displeasure over some private orphanage owners’ activities, stating that the state would not tolerate shady practices involving illegal adoption, child trafficking or maltreatment of children in their custody.
She emphasised that orphanages should operate with empathy by empowering and caring for vulnerable children and not doing anything to compromise their safety.
She said the present administration was committed to safeguarding children’s welfare and preventing exploitation, urging them to adhere to laid down guidelines.
The commissioner explained that the essence of operating an orphanage is to give back to society through humanitarian services and as such, anyone found wanting in the discharge of their duties would be prosecuted,
She added that the ministry had taken steps to improve its data collation, to ensure that the number of children brought to the orphanages was recorded and properly documented.
“The state government’s actions aim to protect vulnerable children and maintain the integrity of orphanage services,” she said.
“About 20 orphanages with provisional licences were affected but not all of them were involved in various sharp practices like not following due guidelines on child adoption among other contraventions”
“But we have withdrawn the provisional licences of these 20 orphanages. We want to take our time to dig deeper and ensure that they are all doing the right things”
“We have told the affected orphanages to reapply after a month and we have given additional guidelines to those with permanent licences to ensure that the standard is not compromised”.
The Permanent Secretary, Ministry of Women Affairs and Social Development, Adejumoke Adewole, said the ministry would not relent in embarking on unscheduled visitation to all orphanage homes in the state, to monitor and evaluate the activities of the owners, and ensure proper compliance with directives.
A representative of the private orphanage owners, Adeyemo Anthony, commended the state for ensuring that orphanage homes were monitored, pledging their support to work together with the government to ensure the welfare and well-being of the children in their care.
The Police Service Commission (PSC) has promoted 684 senior police officers.
Ikechukwu Ani Head, Press and Public Relations, in a statement, said the decision to approve the promotion of senior officers took place during the first preliminary meeting with the new chairman of PSC in Abuja.
According to him, the meeting presided over by the Chairman of the Commission, DIG Hashimu Argungu (rtd), had in attendance, DIG Taiwo Lakanu, (rtd), Honourable Commissioner and Chief Onyemuche Nnamani, Secretary to the Commission.
It said eight Commissioners of Police were elevated to the rank of Assistant Inspectors General of Police, while 15 Deputy Commissioners of Police were promoted to the next rank of full Commissioners of Police.
“52 Chief Superintendents of Police were also promoted to Assistant Commissioners of Police, 525 Superintendents of Police promoted to the rank of Chief Superintendents of Police and 84 Deputy Superintendents promoted to Superintendents of Police. ASP Patrick Ebhodahe was also promoted to the next rank of Deputy Superintendent of Police,” it said.
It said the eight Commissioners of Police and 15 Deputy Commissioners were subjected to some form of assessment/examination,a condition now precedent for their promotion to the new ranks.
The PSC Chairman said the Commission must also ensure that promotions in the Police will be merit based and predictable, just as he assured that the Commission will not for any reason delay the promotion of deserving officers but insisted that it must be earned.
The eight Commissioners of Police promoted to the next rank of Assistant Inspectors General of Police are CP Benneth Igwe; Commissioner of Police, Federal Capital Territory, FCT, Command; Suleiman Mohammed Abdul, acting Assistant Inspector General of Police, PAB, Force Headquarters Abuja; CP Augustina Nwuka Ogbodo, CP Ebonyi State Command; CP Stephen Olanrewaju, CP Admin, Works, Force Headquarters Abuja; CP Kenechukwu Onwuemelie, CP Abia State Command; CP Fayoade Adegoke Mustapha, CP Lagos State Command; CP Adegboyega Funsho Adegboye, CP Admin, FID, Abuja and CP Mohammed Bala Labbo, CP Communication DICT Force Headquarters, Abuja.
The 15 Deputy Commissioners of Police elevated to substantive Commissioners of Police are; DCP Innocent Ifeanyi Emenari, DCP State CID Taraba State Command; DCP Betty Enekpen Otimenyin, DCP DFA, Zone 5 Benin; DCP James Iroegbunam Nwokolo, DC DFA, Edo State Command; DCP Felix Nka Oben, DC Federal Operations, Force Headquarters, Annex Lagos; DCP Olusegun Eyitayo Omosayin DC Armament, Directorate of Operations, Force Headquarters Abuja; DCP Ugobueze Ogbodo, Deputy Commandant, Police Detective College Enugu; DCP Ohagwu Felix Ndukwe, DC Department of Operations, Zone 11 Osogbo and DCP Taylor Lennox Olarewaju, DC, CCR, Lagos State.
Others are: DCP Sa’adatu Ismaila, DC Anti Human Trafficking Annex Lagos; DCP Olabode Adeleye Akinbamilowo, Deputy Force Secretary (DFS11), DCP Regina Cosmas Udoette, DC Department of Finance and Admin, Akwa Ibom State Command; DCP Francis Omatimeyin Gbiwen, DC, State CID Edo State Command; DCP Afolabi Wilfred Olatokunbo, DC Department of Finance and Admin, Delta State Command; DCP Ohiozoba Oyakhire Ehiede Acting CP Legal, FCID Force Headquarters Abuja and DCP Anthonia Adaku Uche-Anya, DC, Department of Finance and Admin FID.
The Commission has conveyed its approval to the Inspector General of Police for Implementation and further necessary action.