•Details poor allocations to capital projects, worsening infrastructure deficit
•Seven ways to stem tide

As the controversy over the cost of governance in Nigeria rages, findings of a study show how states squander funds on overhead costs to the detriment of capital projects.

 

Case study is the 2019 fiscal year and study carried out by BudgIT. A statement on BudgIT website describes it as a civic organisation driven to make the Nigerian budget and public data more understandable and accessible across every literacy span. The statement adds: “BudgIT’s innovation within the public circle comes with a creative use of government data by either presenting these in simple tweets, interactive formats or infographic displays. Our primary goal is to use creative technology to intersect civic engagement and institutional reform”.

 

Findings of study:

Executive Summary

The cumulative actual expenditure for all 36 states grew by 2.73% from N5.12 trillion to N5.26 trillion between 2018 and 2019 fiscal years.

Actual recurrent expenditure and loan repayments grew by 4.75% from N3.17 trillion to N3.33 trillion within the period.

The rising nature of Nigeria’s sub-national government expenditure is expected to yield economic growth, but over the years, analysis of states’ fiscal data has shown that growth in public spending has not translated meaningfully into economic performance as there’s still a high rate of unemployment, decaying infrastructure, and worsening poverty rate.

State governments’ recurrent costs have increased significantly over the years with only a small portion of collected revenue and loans dedicated to meet capital expenditure; 36.73% or N1.93trillion of the N5.26trillion total expenditure in 2019 was dedicated to capital expenditure while 63.27% or N3.33trillion went to recurrent expenditure and loan repayments.

Year on year, between 2018 and 2019, actual expenditure on capital projects for all 36 states reduced by – 0.57%, from N1.94 trillion to N1.93 trillion.

 

This is a worrying sign as Moody’s Investors Service estimates that Nigeria’s infrastructure, which is significantly behind those of emerging market peers, needs an estimated $3trillion over the next 30 years to close the gap; this is the equivalent of spending N38 trillion per year for the next 30 years at today’s Naira-Dollar exchange rate.

Of course, not all the funding to close Nigeria’s infrastructure gap will come from the state government; the Federal Government and even the private sector have roles to play, but clearly, state governments need to do better.

They need to restructure their spending, increase spending on capital projects, comparatively reduce recurrent expenditure to a sustainable level, and ensure the effectiveness of all expenditures.

It is not to say that spending on recurrent expenditure is unimportant because workers’ salaries and retirees’ pensions need to be paid but over time bloated overhead components of many states’ recurrent expenditure crowd out much-needed spending on infrastructure.

In 2019, 11 states spent more on overhead costs than on capital expenditure, worsening the infrastructure deficit in those states.

 

Nigeria’s desired economic growth can be achieved if the recurrent expenditure component is optimised while the spending component going to capital infrastructure especially in the economic and social sectors is prioritised.

According to 2019 state fiscal data, only 11 states actually spent over 50% of their budgeted capital expenditure in the fiscal year. Further analysis also shows that 8 states could not meet their recurrent expenditure with their available revenues which include IGR and Gross FAAC, thereby building up their public debt.

Furthermore, 31 states gave more attention to their recurrent expenditure than capital expenditure. This spending pattern is not sustainable as this has opened gaps in providing quality healthcare services and educational systems, thus slowing down social development as well as growth in other key areas of the economy.

CAPITAL EXPENDITURE

Introduction

 

It is a no-brainer that the government’s capital expenditure, whether national or in this case, sub-national, plays a key role in how effective its economy functions. In simpler terms, the more the government spends on infrastructure, the better the performance output of its economy, thereby impacting economic growth.

Whereas, recurrent expenditure focuses on the running cost of government, such as payment of salaries, and pensions and overheads, capital expenditure on the other hand, deals with investing in infrastructure and assets that have short and long-term benefits in stimulating economic growth, as well as improving the lives and living conditions of the general public.

Inasmuch as capital expenditure is important for the economic growth of sub-national states, understanding the peculiarities of the state, as well as the realities and needs of the public will be important to assess the kind of infrastructure the state government should implement.

Nigerian state governments have a simple task: understanding that not all capital obligations are viable economically. This will go a long way to determine how useful state proposed capital investment will impact citizens’ living standards. This knowledge will prove whether states’ capital investments will augment economic growth, or be another needless “white elephant project”, a colossal waste of public funds.

Capital Expenditure Performance

There is a huge disparity between state governments’ budgeted capital expenditure amounts and the actual.

Although, it is a common point to note that budgeting of an amount does not automatically translate into disbursing of allocated funds, the salient reasons why state governments fail to meet their capital expenditure obligations is majorly attributable to a general inadequate lack of planning.

Sadly, these fundamental issues or gaps are not just limited to poor funding/revenue generation, but can also be linked to other underlying factors like inadequate budget planning process, a lack of informed knowledge of the current realities of the macroeconomic environment, and a huge politicisation of project implementation.

There is a huge disparity between state governments’ budgeted capital expenditure amounts and the actual performance of its capital expenditure in the 2019 fiscal year.

Out of the 36 states of the federation, only 11 states performed over the 50% average with Kaduna topping the list with 97.53%; followed by Rivers state with 74.53%; others are Lagos, 69.81%; Jigawa, 67.99%; Abia, 65%; Delta, 59.01%; Enugu, 57.28%, Anambra, 53.92%; Kwara, 52.31% and Gombe state with 50.41%.

It is also sad to see that 15 states have a capital budget performance less than 30%. A major reason is also the lack of budget realism across states in Nigeria. For example, Cross River had 2.78% performance due to its bloated projections of N1.04tn.

As seen also in the Federal Government, most states project high budget numbers only to meet the recurrent expenditure component due to its “compulsory” payments to staff and running of government, while strafing opportunities to expand capital projects.

Over the years, the sub-national governments’ actual capital expenditure spending has consistently fallen lower than their budget targets. This has particularly become a common trend, whereby state governments fail to meet their capital expenditure obligations, usually by a huge percentage.

Recurrent/Capital Performance Ratio: An expanding gulf

Based on the 2019 states’ financials, most states are prioritising recurrent expenditure over capital expenditure. At the end of the 2019 fiscal year, out of the total actual expenditure of N5.24tn of all the 36 states in 2019, N3.31tn was spent on recurrent bills. As such, states received a prominent percentage of 63.20% while capital expenditure only accounted for 36.80% or N1.93tn.

Recurrent/Capital Performance Ratio

An expanding gulf In Appendix 2, it is obvious that recurrent expenditure performance can be as high as 118.58% in Kogi, 114% in Kano, 105% in Lagos 104% in Edo and 101% in Gombe. 27 states have recurrent expenditure higher than 80% while capital expenditure showed that 20 states posting performance less than 40%.

Capital Expenditure: Reviewing Cost VS Value

Sub-national governments need to reevaluate their various approaches to funding and executing capital projects within their respective states.

State governments’ budgets are filled with a large number of unnecessary projects that have no developmental or economic impact or benefit, and can largely be viewed as an irresponsible waste of resources.

Some of these “administrative projects” have huge price tags attached to them, amounts which could be diverted elsewhere based on the needs and realities of the populace.

The COVID-19 pandemic continues to threaten our way of life in Nigeria, and around the world, with state and national governments forced to adapt to new realities.

Based on the Nigeria Centre for Disease Control’s numbers, some of the worst hit states include Lagos, Oyo, Kano, Rivers and Edo. As such, more attention has turned to bolstering the health infrastructure within the states, so as to cope with the effects of the pandemic.

N1.93tn

At the end of the 2019 fiscal year, out of the total actual expenditure of N5.24tn of all the 36 states in 2019, N3.31tn was spent on recurrent bills.

RECURRENT EXPENDITURE

Introduction

Based on the sub-national fiscal sustainability ranking in BudgIT’s 2020 State of States Report, about 8 states namely, Osun, Bauchi, Plateau, Gombe, Adamawa, Ekiti, Kogi and Oyo, could not adequately cover their recurrent expenditure obligations with their total revenue.

This is also coupled with the fact that most states are still struggling to pay the federal government’s newly approved minimum wage. With the high cost of overheads, bloated wage bill and the cost of servicing political appointees, nothing will be left for the provision of infrastructure such as construction of roads, provision of quality healthcare and education.

This has further led to indiscriminate borrowings from domestic and foreign sources for meeting recurrent obligations, this development, which is fiscally unsustainable, is also contrary to government’s pledge to deploy all borrowed funds to the development of critical infrastructure.

Sustainability of Over-bloated Recurrent Bill

State governments’ recurrent expenditure continues to increase astronomically over the years due to factors such as the expansion in the size of the state’s workforce and the cost of running the government among others.

This has reduced the public revenue available to implement projects that will have an impact on the social and economic well being of the people. The total recurrent expenditure for all the 36 states witnessed an increase of 4.75% or N139.9bn from N3.17tn recorded in 2018 to N3.33tn in 2019, with over 19 states responsible for this increase.

Kogi state was topping this list with over 78.9% increment from the 2018 figure of N57.07bn to N102.13bn in 2019.

Sustainability of Over-bloated Recurrent Bill

At the end of 2019, the financials showed that Lagos state reported a total recurrent expenditure and loan repayments of N555.65bn, the highest figure in the country.

The state’s personnel expenditure increased by 43.5% from what was witnessed in 2017. Lagos still maintains a sustainable threshold compared to other states in the region as a result of its huge Internally Generated Revenue (IGR). States such as Delta, Bayelsa, and Akwa Ibom are running high recurrent expenditure of N231bn, N137bn, and N130bn respectively despite their size and population compared with states like Edo, and Kebbi with higher populations, with far lesser recurrent expenditure.

Recurrent Expenditure Growths Profile

23 states increased their total actual recurrent expenditure and loan repayments between 2018 and 2019. The biggest increases were observed in Kogi, Cross River and Imo states with increases of 78.96%, 46.77% and 38.58% respectively.

A total of 13 states saw a cut in their total actual recurrent expenditure and loan repayments. The biggest drops were observed in Sokoto, Ondo and Osun states which had cuts of 28.03%, 27.75% and 22.39%.

Recurrent/Capital Ratio

A total of thirty-one states had higher recurrent/capital expenditure ratio indicating that recurrent expenditure (including loan repayments) in those states crowded out capital spending. Leading the pack in this category are Taraba, Benue and Oyo which spent 89%, 86% and 81% of their total expenditure on recurrent expenditure and loan repayments.

South-South States’ High Recurrent Bill & Other Trends

Based on the figures available from the states in their 2019 audited statement, it was observed that most states in the South-South region such as Delta, Bayelsa, Akwa-Ibom and Cross-River, are running high recurrent bills. An evidence of this is what these states spend on overhead cost. Delta state and Cross-River state spend 37.87% and 36.26% of their total recurrent on overhead.

Delta state also spent N33bn on miscellaneous under Overhead component of its Recurrent expenditure. This N33bn miscellaneous spending is more than actual Expenditure on Personnel in the same year by 21 non-oil producing states which ranged from N7bn to N31bn per state.

While recurrent expenditure per capita stood at N6,845 in Kano, it was as high as N59,220 in Bayelsa and N34,608 in Delta state. Delta state spending over N215bn on recurrent expenditure or Bayelsa spending more on recurrent expenditure than Kano State does not look good for fiscal sustainability considering the volatility of oil prices.

Further breakdown also revealed that states with a high proportion of their recurrent expenditure dedicated to overhead costs include Kwara, Zamfara, Kaduna, Anambra and Benue. 46.5% or N33.47bn of Kwara state’s total recurrent expenditure of N71.59bn was spent on overhead costs.

With consistent borrowing to service the budget deficit in order to balance revenue and the expenditure, the states are borrowing heavily to maintain government bureaucracy. This has dealt a blow on the capital component that has led to abandoned projects.

Also, no new projects are being implemented as a result of lack of funds which has in turn contributed immensely to the slowing down of the economic activities of states. It is evident that the huge cost of running the government has a higher chance of contributing to wasteful spending and embezzlement of public funds.

SEVEN RECOMMENDATIONS

Favouring Developmental Capital Projects over Administrative Capital Projects
State governments need to prioritise projects that will have a direct impact on the standard of living as well as aid economic development of the state. Capital expenditure should only be allocated appropriately and based Developmental capital expenditure projects should take precedence over administrative capital projects within the budget of sub-national governments.

Administrative capital projects are projects that in every sense do not affect the lives and livelihoods of citizens within a state. These projects have no direct impact on economic growth, and can only be seen as a waste of resources.

Development capital projects on the other hand are projects that have both economic growth and standard of living value to the state and its indigenes. Development capital projects stimulate economic activities within the state, and directly impact citizens’ lives.

State governments need to prioritise projects that will have a direct impact on the standard of living as well as aid economic development of the state. Capital expenditure should only be allocated appropriately and based on the needs of the state.

Understanding the Needs of the States

It would be wise for sub-national governments in Nigeria to shun being sub-national governments can solve the lapses in their execution of capital expenditure obligations within their various jurisdictions through a purposeful and informed budget formulation process that takes the people’s realities and needs into account.

This approach should be participatory where citizens will be involved in policy planning, policy development and budget implementation. This will bring government closer to the people, foster the spirit of cooperation, thereby enhancing community service and infrastructural development.

This will also enable the execution of only viable projects that will both impact citizens’ lives, communities and also stimulate economic activity.

Capital expenditure should only be appropriately allocated based on the needs of the state. Determination of capital expenditure allocation should constitute a long and stringent financial planning process, which should not only just cover the implementation of the capital project, but also monitoring, management and future maintenance of the project.

Elimination of ‘White Elephant’ Projects that Yield No Economic Benefits

It would be wise for sub-national governments in Nigeria to shun being wasteful in their spending towards capital projects and infrastructure that has no direct impact on the lives and livelihoods of its citizens as well as have an economic impact.

Therefore, resourceful spending has to be encouraged when implementing capital expenditures within the states. Priority should be given to sectors that yield the best value in stimulating economic growth and improving standards of living.

Productivity Concern for Recurrent Expenditure

Sub-national government spending on recurrent expenditure continues to be on an upward trajectory, and if not checked will reach a state of unsustainability which could spell disaster for the states. There have been several calls for state governments to restructure their labour force, putting into context the realities of the state, which include most importantly, its ability to generate enough revenue to keep its government afloat.

The high cost of states’ recurrent expenditure has raised several concerns if this matches the expected productivity level of the public sector.

The problem involved has been likened to the lack of a well-trained workforce including inadequate checks in the political and the budget formulation process. Expenditure on bogus overhead costs that do not serve useful economic and social objectives has further increased the size of recurrent expenditure with low productivity in the face of dwindling revenues.

The state governments need to allocate resources optimally for developmental goals and adequately finance public investment projects and also initiate public sector reform programmes that will increase demand for quality and responsive public services that will deliver result-oriented outputs. It is not enough for the state government to lament the current shortfalls in revenue target without dealing with the inefficiency in the usage of the available resources or block the unnecessary cost the government incurs that siphon public revenue.

Overhead costs optimisation should be implemented. This would help in reducing general and administrative costs for proper management of available resources.

Sub-national governments, as a matter of urgency, need to reduce recurrent expenditure to a sustainable level by cutting wasteful spending, eradicating corruption as well as blocking loopholes by eliminating ghost workers in its monthly payroll.

There should also be a reduction in the number of political officeholders serving in state cabinets. Each state government should also consider the merger of Ministries, Departments, and Agencies that perform duplicating functions to reduce the cost of governance. By doing these, state governments will be able to block leakages, reduce waste and be able to use saved funds for social development.

Rationalise Overhead Costs by Centralising Expenditure

It is not enough for the state government to lament the current shortfalls in revenue target without dealing with the inefficiency in the usage of the available resources or block the unnecessary cost the government incurs that siphon public revenue. Overhead costs optimisation should be implemented, this would help in reducing general and administrative costs for proper management of available resources.

Public Debt for Public Investment Increase Public Revenues

Incurring public debts domestically and externally to fund self-liquidating capital expenditure and carry out development projects will enhance economic activities that will increase economic growth. The government should initiate and implement appropriate policies that will ensure that these borrowings are put into appropriate use that will stimulate public investments and also ensure that borrowing is not diverted for personal aggrandizement.

Increase Public Revenues

State governments should, as a matter of urgency, search for new ways to generate more revenue and increase their capacity to generate proportionately what they are spending on recurrent expenditure. This can be done sustainably by each state tapping into the state’s natural resources.

States need to reduce their overreliance on federal allocation and grow their IGR. This requires a drive for investments in states and strengthening the capacity of the revenue-generating agencies. States should also try as much as possible to depend less on federal allocations and more on their IGR, proper usage of such revenue to create an impact on the economy is also paramount.

  • Source: States’ 2019 Financial Statements, BudgIT Research

[Vanguard]

In continuation of financial reforms introduced since the inauguration of President Bola Ahmed Tinubu, the Central Bank of Nigeria (CBN) has said it would sanction and blacklist bank directors with loans that remain non-performing for more than one year.

The CBN had earlier abolished the multiple exchange rate regime  In a circular it released last month, it said all segments of the forex market had been collapsed into the Investors and Exporters (I&E) window.

In the recent reforms, the apex bank also revised the Cash Reserve Ratio (CRR) of merchant banks to 10 per cent from 32.5 per cent.

CBN director, banking supervision,  Haruna Mustafa disclosed this in a letter to all Merchant banks dated July 14, 2023.

The CRR is the share of a bank’s total customer deposit that must be deposited with the central bank.

The new fresh cut reverses significantly, the increase in the CRR by the Monetary Policy Committee (MPC) last September from 27.5 percent to 32.5 per cent to tame inflationary pressure.

Meanwhile, a new corporate governance guideline for commercial banks, financial holding Companies (FHCs), merchant banks, non-interest and payment service banks was released on Friday by the CBN.

“Any director whose credit facility or that of his/her related interests remains non-performing in the banking subsidiary of an FHC, for more than one year, shall cease to be on the Board of the Financial Holding Company (FHC) shall be blacklisted from sitting on the Board of such banking subsidiary or that of any other financial institution under the purview of the CBN,” the guidelines stated.

The CBN said no loan/advance and interest thereon to a director of an FHC by the banking subsidiary shall be written-off without its prior approval.

A subsidiary of the FHC, which renders services to the FHC may extend similar services to other entities within the Group that so desire, on the same terms and conditions, the guidelines stated.

It says all intra-group transactions shall be conducted at arm’s length and in compliance with the extant laws and regulations guiding the operations of the entities

The apex bank’s guideline also prescribed that all services between an FHC and its subsidiaries will be guided by Service Level Agreements (SLAs) and/or shared services arrangements in line with the CBN Guidelines for Shared Services Arrangements for Banks and Other Financial Institutions.

Under protection of shareholders right, the guidelines stated that except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one FHC.

It says except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in: a change in the control of the FHC, the transfer of shareholding of 5 per cent and above in the FHC; and/or an increase in shareholding to 5 per per cent or more in the FHC.

The CBN said its prior approval and no objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent (5%) and above.

In a circular signed by Chibuzo Efobi, CBN’s director, financial policy and regulation, the apex bank said the guidelines take effect August 1, 2023.

The circular said the new guidelines supersedes all previous codes, circulars, and related directive on corporate governance issued by the CBN.

“Banks and financial holding companies are invited to note the responsibilities imposed on their boards by these guidelines and especially on the executive compliance officers (where applicable)”, the circular stated.

The Financial Reporting Council (FRC) of Nigeria in 2019 issued the Nigerian Code of Corporate Governance (hereinafter referred to as “NCCG 2018”) as the single Corporate Governance Code for the country.

The NCCG 2018 replaced all sectoral codes in Nigeria including the extant Code of Corporate Governance for Banks and Discount Houses in Nigeria issued by the Central Bank of Nigeria (CBN) in May 2014.

Following the pronouncement of the FRC, for sector regulators to issue sector-specific guidelines on corporate governance for institutions under their regulatory purview, the CBN said it has adapted the Principles and Recommended Practices of NCCG 2018 in developing this Guidelines for Commercial, Merchant, Non-Interest and Payment Service

Banks (hereinafter referred to as “bank(s)”), taking into account, the peculiarities of the sub-sectors.

“The CBN, pursuant to the provisions of Section 2(d) of the CBN Act 2007, and Sections 56(2) and 67(1) of the Banks and Other Financial Institutions Act (BOFIA 2020), hereby issues this regulation to be cited as the “Corporate Governance Guidelines for Commercial, Merchant, Non-Interest and Payment Service Banks in Nigeria”, the CBN said.

The guidelines stated that the government’s direct and indirect equity holding in a bank shall not be more than ten per cent (10%), which shall be divested to private investors within a maximum period of five years from the date of investment.”

[Leadership]

 

The Lagos State Government has announced that Eko Bridge inwards the newly re-opened Apongbon Bridge will close for 24 hours on Sunday 16th July, 2023 for immediate remedial palliative works by the Lagos State Public Works in conjunction with Federal Ministry of Works and Housing.

The Permanent Secretary, Ministry of Transportation, Engr. Abdulhafiz Toriola made this statement known today, that the 24 hour closure will allow uninterrupted palliative adjustment of the bridge.

While confirming that the Lagos State Traffic Management Authority (LASTMA) Personnel have been deployed to control and manage traffic around C.M.S, Marina, Ijora, and other alternative routes on the Lagos Island and Mainland, he explained that the palliative work was necessary to complement the newly re-opened Apongbon Bridge.

The alternative routes made available during the period of repair are highlighted as follows;

1. For Motorists from Mainland/Surulere going to Lagos Island are advised to make use of Ijora-Olopa/Causeway to Carter Bridge (Idumota) to connect their desired destinations;

Or

b. Connect Costain to Iganmu through Ijora-Oloye via Ijora Causeway to Carter Bridge (Idumota), for their desired destinations.

2. For Motorists from Lagos Island going to Surulere/Mainland are advised to connect Carter Bridge (Idumota) through Iddo/Oyingbo to Herbert Macaulay for their desired destinations;

Or

Connect Carter Bridge(Idumota) through Ijora Olopa by LAWMA Headquarters to Eko Bridge inwards Costain/Alaka for their desired destinations.

3. Motorists can equally make use of the Third Mainland Bridge through Adekunle to connect Herbert Macaulay to link their desired destinations.

The Transport Permanent Secretary further urged road users to cooperate with the Traffic Managers during the palliative works to enhance seamless movement.

E-Signed;

Engr. Abdulhafiz Toriola

Permanent Secretary,

Lagos State Ministry of Transportation.

15th July, 2023.

 

 

The Federal Government has filed a two-count charge of illegal possession of firearms and ammunition against suspended Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, before the Federal High Court in Lagos.


According to Channel Television report, FG accused Emefiele of possessing a single-barrel shotgun (JOJEFF MAGNUM 8371) without a licence.


The government maintained that the offence is contrary to Section 4 of the Firearms Act, Cap F28 Laws of the Federation 2004, and punishable under Section 27 (1b) of the same Act.


In the second count, the suspended CBN Governor was accused of having in his possession 123 rounds of live ammunition (Cartridges) without a licence, which is contrary to Section 8 of the Firearms Act Cap F28 Laws of the Federation 2004 and punishable under Section 27 (1)(b)(il) of the same Act.

The case is yet to be assigned to a judge, but there are indications that this will be done next week.

Emefiele has been in the custody of the DSS since June 10. The spokesman for the DSS, Dr. Peter Afunanya, had said it was for “investigative reasons”.

Afunanya, in a statement on Thursday, also disclosed that the agency had charged Emefiele to court following an Abuja High Court ruling.

Count one of the charges reads; That you, Godwin Emefiele, Male, of No. 8 Colorado Street Maitama Abuja, on or about the 15th of June 2023, at No. 3b Iru Close, Ikoyi, Eti Osa Local Government, Lagos State, within the jurisdiction of this Honourable Court, had in your possession one (1) Single Barrel shotgun (JOJEFF MAGNUM 8371) without a licence. You thereby committed an offence contrary to Section 4 of the Firearms Act, Cap. F28 Laws of the Federation 2004, and punishable under Section 27 (1b) of the same Act.

Count two: That you, Godwin Emefiele, Male, of No. 8 Colorado Street Maitama Abuja, on or about June 15, 2023, at No. 3b Iru Close, Ikoyi, Eti Osa Local Government, Lagos State, within the jurisdiction of this Honourable Court, had in your possession One Hundred and Twenty-Three (123) Rounds of live ammunition (Cartridges) without a licence You thereby committed an offence contrary to Section 8 of the Firearms Act Cap F28 Laws of the Federation 2004 and punishable under Section 27 (1)(b)(il) of the same Act.

Meanwhile, Another FCT High Court in Abuja voided the arrest and detention of Emefiele by the DSS on Friday.

Delivering judgement, Justice Bello Kawu held that the arrest, detention, and interrogation of Mister Emefiele are in violation of the subsisting judgement and orders of Justice M. A. Hassan.

Mr Emefiele, through his Counsel, Peter Abang, had asked the court to set aside and nullify the arrest and detention of the Applicant for being illegal and a nullity in view of the subsisting judgment by another court delivered on 29th December 2022.

Justice Kawu also made an order setting aside any warrant of arrest obtained or procured by the Respondents, especially the DSS for the arrest of Emefiele in connection with the allegations of terrorism financing, fraudulent practices, money laundering, threat to national security before any court.

The court further granted an injunction restraining the respondents, particularly the DSS from arresting, detaining, or interfering with Mr. Emefiele’s personal liberty and freedom of movement.

The court finally granted an order of injunction directing and mandating the Respondents, particularly the DSS to forthwith release Mr. Emefiele from any arrest or detention.

Justice Rabiu Gwandu of the National Industrial Court in Lagos has fixed September 30 for further hearing in a $4.2 million suit instituted against a multinational oil company, ExxonMobil Corporation and its parent body, Mobil Producing Nigeria Limited by its ex-staff, James Nwagbogwu Ebede, over alleged forceful retirement.


When the matter was mentioned for continuation of trial, counsel for ExxonMobil, Paul Usoro, SAN, was in court to cross examine the claimant who has given evidence and closed his case since last year.


But, Ituah Imhanze leading two other lawyers for Mobil Producing Nigeria Unlimited told the court that he filed an amended statement of defence against the consequential amendment statement of claim of the claimant.


However, claimant’s lawyer, Chucks Uguru told the court that he will not be opposing the amendment but urged the court to impose a cost of N750,0,000 on the Mobil Producing company, contending that the claimant filed his amended statement of claim since 18th of March,2022.

Uguru stated that the only reason the defendants have not filed their statement of defence was for the purpose of delaying the case which was filed about five years ago.

He told the court that the case had suffered series of adjournments at the instance of the defendants.

Uguru further told the court that the business of the day was for the claimant to be cross-examined by the defence counsels but this is another dilatory.

Consequently, he urged the court to grant them two hearing days if the case is to be adjourned after the application must have been heard.

In her ruling, the trial judge, Justice H Gwandu, after Mr. Imhanze granted the application for amended statement of defence, and ordered Mobil Producing Nigeria company to pay the cost of N500,000, which must be paid before the next adjourned date.

Thereafter, Justice Gwandu adjourned the matter till 30th and 31st of September 2023 for continuation of hearing.

In a statement of fact filed before the National Industrial Court on behalf of the claimant, stated that he worked with the company from December, 2001 to 2018 as an engineer and that because of his consistent excellent performance, he was at various times given important responsibilities.

He averred that in 2015 he was deployed to Dubai with the posting to last till December 2017 but that he was forcefully redeployed back to Nigeria and retired because he refused to carry out alleged dishonest actions that he was being compelled to do by the manager of ExxonMobil while on assignment in the United Arab Emirates and Iran.

According to him, on his return to Nigeria, further punitive actions were taken against him leading to his forceful retirement.

He alleged that the company attempted to compel him to employ unqualified engineer and that on several occasions, attempts were made to compel him to sign off uncompleted and poorly executed project as completed, among others.

The claimant alleged that upon return from Iraq, he provided the defendants details of the unethical and immoral acts he was being coerced to do for which he was being unjustly treated.

He said the defendants constituted a team and got further details from the claimant, and promised more documents upon the receipt of the claimant’s personal belongings shipped by the defendants for the claimant.

The claimant further alleged that when his shipment arrived Nigeria, he was shocked that the defendants were unwilling to either clear the shipment from the ports or handover the original Bill of Lading to the claimant such that the claimant can go and clear the container containing his personal belongings.

The claimant alleged that since 6th September 2017, the defendants have continued to hold on to the shipment containing his personal belongings and he believes it is in the defendants bid to subvert the course of justice.

Consequently, Mr. Ebede is claiming $4.2 million as general damages for the emotional stress he had suffered;

N114,992,096 being the equivalent of 32 months salary which the defendant ought to pay him for his forceful retirement and also demanding published public apology in two daily newspapers and two international newspapers.

However, the defendants in their preliminary objection urged the court to decline jurisdiction to entertain the suit on the ground that the ExxonMobil company is an entity incorporated under the laws of the United States of America, saying that the Nigerian court lacked jurisdiction to entertain the matter.


In her ruling, the presiding judge, Justice R. H. Gwandu, while adjourning for hearing held “I hold that this court has the jurisdiction to adjudicate on issues contained in the claimant’s suits both by subject matter and territory, the claimant having shown sufficient cause of action against the defendant.”

Last modified on Sunday, 16 July 2023 02:44

Meshach Siunuphro, a well built 25-year old man claims to be into various endeavours, but his physique and age might give him out as a Yahoo Boy.


However, he claims to be an Abuja big boy who is into forex trade, and at the same time, a 300-level student of Business Administration at the University of Istanbul, Turkey.


Meanwhile, Siunuphro has landed himself in serious mess. By now, he would be facing interrogation in the nation’s capital as police investigators attempt to unravel the real motive for allegedly stealing and absconding with an exotic Mercedes Benz Sport Utility Vehicle (SUV).

The unregistered automobile, a 2021 model of Benz GLB 250 4MATIC, is said to be worth the princely, eye-popping sum of N58 million only.

Siunuphro, who hails from Ughelli area of Delta State, allegedly disappeared with the car on June 30 while test driving it after commencing negotiations with the Abuja-based dealer.

He drove down to his home state, changed the four alloyed rims, and later left the car in the bush in Oteri community, Ughelli where it was recovered by police operatives on July 3. The suspect was subsequently arrested four days later on July 6 in Benin City, Edo State.

Parading the suspect, Public Relations Officer of Delta State Police Command, DSP Bright Edafe, said the suspect would be transferred to Abuja for further investigation.

Edafe said the suspect saw the car advert online, indicated interest and made contact with the dealer. He said during the physical meeting with the dealer, the suspect negotiated to pay N30 million, and actually pretended that he was going to make payment but requested to test drive it which the dealer obliged, ostensibly for the prospective buyer to know the true worth of the SUV.

According to him, the dealer was with Siunuphro during the test drive, adding that they decided to pull over to refill the tank, as the car was running low on fuel.

They pulled into a fuel station, but discovered that only cash payment was accepted in the particular station.

“So because they were not accepting transfer at the particular station, the dealer stepped out to get cash from a POS stand, only for the suspect to disappear afterwards.

“When it was discovered that the car was in Delta, the complainant who is the Abuja-based car dealer was advised to come to the command to formally lodge the report,” he sai, lied, adding that on July 3, the vehicle was recovered.

“But investigation did not stop there. We later got another intelligence report that the suspect was in Benin. We swung into action and arrested him on Thursday morning, July 6. I moved him to Asaba for onward transfer to Abuja,” he said. Edafe seized the opportunity to advise card dealers and car owners to be wary of the new scheme by criminals to snatch cars from people. He particularly cautioned those who take their cars to car wash centres never to hand over the ignition keys to the attendants.

And suspect speaks

Speaking with our correspondent, the smooth-talking suspect narrated how he drove the car to Delta, even as he regretted his action.

Hear him: “I saw the advert online and chatted with the dealer to set up an appointment. But when I saw the car, I told him it was not worth what he actually mentioned to me initially.

“He asked me to make an offer, and I offered to pay N30 million. He told me to just hold on a minute that I should shut my mouth and wait for us to test drive it. He said then I would hear the sound of the car, and that the car was actually worth the price it was listed.

“He told me that the car is a 2021 model. I volunteered to go for the test drive. On our way, we passed through a long roundabout. Then he said I should quickly pull over for us to get some gas for the car for us to continue the test drive.

“So I pulled over to the gas station and he told me to wait for him, that he was going to get some cash from POS across.

“I waited for over 30 minutes, and he was not showing up. And there was a queue of vehicles behind me at the petrol station. So I had to pull over a bit for other cars to come in and buy.

“I waited over two hours, he was not showing up and it was already close to 6pm. He was already calling me and I tried to call him back but his number was switched off.

“I didn’t know the exact point I was at that moment, so I had to use the nearest filling station to put some gas in the car. He didn’t come after he left. That was when I drove off the car,” he said.

Asked why he did not go back to the car stand after waiting for hours, he claimed that there were lots of car stands, and that it would have been difficult to locate the exact one. Siunuphro said he drove the car to Delta, without stopping at police checkpoints on the way.

He also stated that he ran into a ditch which damaged one of the rims in front, a development that prompted him to change the four rims at N350,000.00.

According to him, his only intention was to buy the car and drive. I was just going to buy and drive. But I have not paid at that point. I was hypnotised, can’t say exactly what happened,” he stated.

He noted that his forex trade business is like a daily business. “It comes and I make my claim and use my profit to do what I want. I was actually expecting some money that same day.

“Stealing of cars is not my business; this is actually my first. I am a 300 level student of Business Administration at the University of Istanbul. I just came back from Turkey.


“Now, I feel nervous, I feel overwhelmed, I wish I didn’t do it. I regret my action. It didn’t go down well. I never expected it will end up like this sort of situation.”

Some politicians, who think that their closeness to President Bola Tinubu, will fetch them ministerial positions are in for a shock, an investigation by Sunday PUNCH has revealed.

It was gathered that the President might rely on security reports on individuals whose names were already sent to security agencies for screening ahead of the submission of the ministerial list to the Senate before Thursday, July 27.

Lawmakers in the Red Chamber were scheduled to proceed on a long recess on July 27, but the non-submission of the ministerial nominees may delay their vacation. Tinubu was sworn in on May 29, and the new law says he must present the ministerial list to the Senate for confirmation before 60 days. Today (Sunday) makes it 48 days since he assumed office.

It was gathered that the President had forwarded the names of some individuals to security agencies for clearance, but top sources said their clearance might not be an indication that they would make the list when the nominees are eventually presented to the Senate for screening.

The President was said to have been inundated with the names of politicians, associates, party bigwigs, professionals, and others, who showed interest to be part of his government.

One of the sources said, “While the President is keeping his cards to his chest, there are former governors, especially those that finished their tenure on May 29, who are showing interest in becoming ministers.

“Also, as expected, there are political bigwigs, traditional rulers, captains of industries, and those in the Diaspora. But instead of waiting to compile the list, the President was sending them to the security agencies piecemeal for clearance.


“That was why the Presidency was correct when it said there was no ministerial list anywhere.”

Recall that the presidential spokesman, Mr Dele Alake, recently said Tinubu’s ministerial list was not ready.

“There is no iota of truth in all of those things. When the President is good and ready, you will be the first to know his intentions,” Alake said.

The source said that rather than reject nominations of individuals and some politicians, Tinubu might rely on the outcome of the security screening, which he explained had reached an advanced stage.

The source added, “Corrupt politicians, indicted individuals and others who are showing eagerness to be part of this government will be shocked when they see the security reports on them.

“So, the President, instead of outright rejection, will use the reports to check them. And if they are adamant on serving, I think there are senators from such individuals’ states that will raise objections to their clearance on the floor of the Senate.”

Another source specifically mentioned two former governors accused of corruption as among those that might be shocked that they would not make the list despite their perceived contribution to the electoral victory of the President.


“Just wait. Some will be shocked, others will want to constitute themselves into opposition because neither them nor their nominees will be on the list,” the source added.

It was also gathered that the President was also considering rehabilitating a former governor of Lagos State, Akinwumi Ambode, to return him to political relevance in the state.

Ambode, who succeeded Babatunde Fashola as the governor of Lagos State, was denied a second term by political leaders in the state.

He was replaced by Babatunde Sanwo-Olu. Since he left office, Ambode had remained silent until the emergence of Tinubu, who recently met with him, Fashola, and Sanwo-Olu recently in Lagos.

 

The body of a 28-year-old lady has been discovered in a room in a hotel located at 102 Yale Okeowo Street, off Community Road, Ago Palace Way, Lagos.

The incident took place on Wednesday when a young man checked into the hotel with the lady. After some minutes, he reportedly left the lady in the room. The young man, identified as Kelvin in the receipt provided by the hotel receptionist, is now the prime suspect in the crime.


According to sources, the grim discovery was made on Thursday morning when the body of the young lady was found. A staff member of the hotel, speaking on condition of anonymity, recounted the sequence of events to Sunday Vanguard. She said: “A young man arrived at the hotel around 11 p.m. on Wednesday with his girlfriend, who appeared to be around 28 years old. He made a transfer payment of N9,000 for the lodging and entered the room with her. Shortly after, he came downstairs, inquiring about the closing time of the hotel gate as he planned to visit a club.

“He assured us that he would return soon because his girlfriend was still inside the room. The following morning, despite numerous attempts to gain access by knocking on the door, there was no response.

“Peering through the window, we were alarmed to see a leg on the floor. We immediately alerted the manager, who subsequently contacted the Ago Palace Division of the police. Upon breaking open the door, a horrifying sight awaited us: a lifeless, unclothed body of a lady lying on the floor.”

Governor Hope Uzodimma at the weekend rose to the challenge of hardship recently made worse by the removal of fuel subsidy in the country, raising the minimum wage of workers in Imo State to N40,000.

The multiple palliatives include but not limited to enhanced free transportation, feeding and medical care for workers, generous loans to genuine farmers, the establishment of marketing and commodity boards, payment of gratuities to retirees, mass housing, recruitment of more teachers for primary, secondary and tertiary institutions, bursary and scholarship for Imo State students, among others.


Uzodimma unveiled the package at a special meeting of critical stakeholders comprising religious leaders, politicians, farmers, traders, and labour leaders, among others, which he convened at the Rockview Hotel, Owerri.

The governor said he knows that “because we are buying petrol now at the rate of N530 per litre as against the previous rate of N189, you may hardly believe it. But I know that faith and hope are recurring words in our everyday lives.”

“Because you have hope and I know you also have faith in what we are doing, you will ultimately triumph. And I want you to be rest assured that this promise will come through. My dear brothers and sisters, you must believe me, when I tell you that I am truly touched by the reality on the ground. Yes, I am personally affected because whenever the nose weeps, the eyes join.”

Governor Uzodimma said he had “watched with keen interest how our people have been faring since the removal of the subsidy on fuel was announced,” noting, “I can tell you that I have been deeply worried by my observations.”

“It is clear to me that our people are suffering, particularly the low-income earners and those in paid employment. I have therefore convened this special meeting with the leadership of Organised Labour, Traders, Farmers and Artisans, to announce the comprehensive palliative measures we are putting in place, which I am sure will ease these sufferings, in addition to the measures expected from the federal government. I want you to know that I am with you in your travails. I share in your worries.”

He said he shared in their pains and anxieties, “but most importantly, I am here to tell you to worry less, to give you HOPE and to assure you that help is on the way. I want to let you into my plans for you. The plans that will alleviate the impact of the subsidy removal, stimulate the economy, create additional jobs and enhance the wages of workers.”

Legal practitioners under the aegis of Lawyers in Defence of Democracy have slammed the State Security Services SSS for arresting and detaining the suspended Governor of the Central Bank of Nigeria CBN, Mr Godwin Emefiele while leaving out his principal and approving authority, former President Muhammadu Buhari.


The SSS had in December last year made attempts to arrest Emefiele but was stopped by the Courts.

Emefiele had in the lead up to the 2023 general elections came under intense scrutiny following the apex bank’s Naira Redesign Policy which many partisans saw as targeting Asiwaju Bola Tinubu, then presidential candidate of the ruling All Progressives Congress APC.


Speaking on Arise Television breakfast show monitored Friday in Abuja, Convener, Lawyers in Defence of Democracy, Kingdom Okere, also accused the SSS of framing up Emefiele. He described the arrest as illegal, saying it was in violation of a subsisting order of the Federal Capital Territory FCT High Court.

He consequently called for the sack of the Director General State Services DGSS, Yusuf Bichi, saying there was no reason to have retained him when President Tinubu sacked the Service Chiefs.

Okere who recalled how the SSS had tried to arrest Emefiele in December last year but only succeeded in June 2023, said it was deeply concerning that the security agency would still detain Emefiele for more than one month, instead of having gathered its evidences within the period from December 2022 to June 2023.

He said; “We just heard from the statement by the DSS that they have charged him to court. Charging him to court is different from arraigning him.

“We have not seen a copy of the charge. Of course, the accused has been in illegal detention of the DSS, and his lawyers should be privy to whatever charges that may have preferred against him.

“The point is that Lawyers in the Defence of Democracy have been on this issue since 7th December 2022 when the DSS sought to obtain a black market exparte application from the Federal High Court. It is black market because the honourable judge of the Federal High Court said the DSS could not use that honourable court to commence an irregular proceeding.

“Thereafter, on 29th December 2022, Justice MA Hassan of the FCT High Court made an order of perpetual injunction restraining the DSS from preferring any trump up charge of terrorism financing against the suspended CBN Governor, Godwin Emefiele and DSS participated in that proceeding and they have not appealed that decision and if they purport to have done that, there is no proper record of appeal at the Appeal Court to that effect.

“The rule of law does not empower the DSS to disregard an order of a court of competent jurisdiction. The only thing they can do within their constitutional right is to go to a higher court to set it aside. Insofar as that order remains, whatever they are purporting to do, to file any charges against Emefiele remains illegal ab initio.

“Between 7th of December 2022 when they first went to court and 8th June 2023 when they eventually arrested him, they didn’t have any evidence against him. What they have done is to prove us right that they had plans to frame him up. It has now taken them more than one month and just Thursday’s court order that directed them to either release him or charge him to court to now go and file whatever charge they purport to have filed.”


Arrest Buhari

Okere also said Emefiele was only following orders, that the man who gave him the order, former President Muhammadu Buhari ought to also have been arrested by the SSS.

He said; “Whatever Emefiele did as CBN Governor had presidential approval. So, if they have anything against him, they should also know that it is traceable to former President Muhammadu Buhari and they should also being him to book so that they can defend themselves.

“Be that as it may, DSS upon searching Emefiele’s house found only N300,000. Does it mean that Emefiele from his legitimate earnings cannot have N300,000 in his house? They also found a licence for pump action. Any other thing they come out with tomorrow that they found in Emefiele’s house is pure falsehood. Those were the only two things they found in his house and it took them more than one month and the order of a court to go and file charges against him just yesterday.


Track record of flouting rule of law

“The DSS has a history of disobeying court orders. It is their stock in trade. They also gave a track record of invading people’s homes in the wee hours of the day or night just as they did to justices of the supreme court and of course you know how the matter ended.

“DSS has always proven itself as an agency that flouts the rule of law. They see themselves as above the law, whereas they were established by just a piece of legislation, the Security Agencies Act that was signed by the president and they now see themselves to be over and above the constitution of Nigeria that established the federation where all arms of government must operate within the ambit of the constitution.

“Tinubu, the new president has a track record of believing in the rule of law. One example is that he fought former President Olusegun Obasanjo when he withheld the local government allocation due to Lagos state because Tinubu found that it was within the powers of the state Assembly to create local governments or development centres as they are called today”, he added.

Sack Bichi

Mr Okere also advocated the sack of the DGSS, Yusuf Bichi, saying President Tinubu could be sending the wrong signals to Nigerians by retaining him.

“We are calling on President Tinubu to not allow the overzealousness of the DSS to tarnish his hard-earned reputation of believing in the rule of law, of believing in opposition politics and in his inaugural address, he promised Nigerians that he was going to obey the rule of law.

“We now asked him, why are you still leaving this man in office? All other Service Chiefs have been removed. Why did you leave him? Probably because he participated in the whole politics of old and new Naira notes and attempted to initially frame Emefiele up by going to the Federal High Court to seek exparte application. And of course, it is widely believed that he belongs to Tinubu’s camp and that is why the president is still leaving him in office.

“So, we are telling the president that this is not the right way to begin. Nobody is above the entire Federal Republic if Nigeria. Look for more competent hands and replace this person because ab initio, his appointment was a subject of controversy.

“We learned in the public domain that he had retired and former President Muhammadu Buhari in his characteristic manner of not following the law in making certain appointments like he appointed former CG of Customs, a retired Army colonel, also brought Bichi back to serve as DSS, an institution from which he had long retired as we learned in the media.

“So, we are telling the incumbent president to do things right,” Okere added.