Nigeria and other developing countries expended a record $443.5 billion in settling different external and publicly-guaranteed debts in 2022, the World Bank in its latest International Debt Report has revealed.
The report stated that debt-service payments, which comprise of principal and interest, increased by five per cent over the previous year for all developing countries.
It said the 75 countries eligible to borrow from the World Bank’s International Development Association (IDA), which supports the poorest countries, paid $88.9 billion in debt-servicing costs in 2022.
Also interest payments by these countries have quadrupled, to an all-time high of $23.6 billion in from 2012 to 2022.
The report further stated that Overall debt-servicing costs for the 24 poorest countries are expected to balloon in 2023 and 2024—by as much as 39 per cent, the report stated.
The Rivers State political crisis deepened further on Thursday as six commissioners loyal to ex-governor Nyesom Wike resigned from the cabinet of Governor Siminalayi Fubara.
This was as the two factions of the split state House of Assembly held separate sittings on Thursday.
The commissioners, who tendered their resignation were the Attorney General and Commissioner for Justice, Prof. Zacchaeus Adangor (SAN); Commissioner for Works, Dr Des George-Kelly; Commissioner for Special Duties, Emeka Woke; Commissioner for Social Welfare and Rehabilitation, Mrs Inime Aguma; the Commissioner for Finance, Isaac Kamalu; and the Commissioner for Education, Prof. Chinedu Mmom.
Of the six commissioners, five served under Wike’s administration in the same capacity, while Woke was Wike’s Chief of Staff for eight years.
All the five commissioners confirmed their resignation to The PUNCH on the telephone.
The Commissioner for Works, George-Kelly, said he resigned because “my conscience will not allow me to stay.”
The social welfare commissioner, Mrs Aguma, said, “I have other commitments.”
The AGF, Adangor, on his part, said the resignation was based on “personal principles.”
Woke and Kamalu simply asked our reporter to look out for their letters of resignation to see their reasons.
Meanwhile, the education commissioner, in his resignation letter dated December 14, 2023 addressed to the Governor through the Secretary to the State Government, said, “I hereby resign my appointment as the Honourable Commissioner for Education, Rivers State for personal reasons.
“I wish to express my sincere appreciation for the opportunity given to me to serve in your administration and wish you the best as you carry on with the governance of the state.”
Our correspondent learnt that six other commissioners had also tendered their resignations but could not confirm the claim.
Meanwhile, the two factions of the state House of Assembly held parallel sitting at different locations on Thursday.
The Speaker, Martin Amaewhule, who leads 27 pro-Wike lawmakers, sat at the Assembly quarters along Aba Road Port Harcourt.
On the other hand, the Edison Ehie-led faction, which is loyal to Fubara, reportedly held plenary at Government House, Port Harcourt.
The PUNCH reports that the state governor on Wednesday sent bulldozers to demolish the state Assembly complex, while the four pro-Fubara lawmakers declared the seats of the 27 pro-Wike lawmakers vacant following their defection to the All Progressives Congress.
Fubara, on Wednesday, presented the state’s 2024 budget to the Ehie faction.
He signed the N800bn budget into law on Thursday, pledging full implementation.
Fubara stated, “This budget shows that we have a plan for our dear state. One of the reasons why our budget is in the volume of N800bn is that we intend, not just by desiring, to ensure that one key request of our dear state is met. God being our helper, we will commence immediately, by next year, flagging off the actual and main Trans-Kalabari road project Phase 2.
“We have also, in our budget, provided to take care of the Elele-Omoku road project, a road that cuts through Ikwerre, Emohua and Ogba-Egbema-Ndoni Local Government Areas. We are also taking that project as one of our cardinal achievements of this administration. We are not going back on it.”
The governor said no efforts would be spared in implementing to the full the planned quality projects and services itemised in the 2024 budget.
“I want to assure you that this administration has the best interest of our people. It is an administration that wants everyone to have hope.
“We have keyed into the Renewed Hope Agenda of our dear President Bola Tinubu to continue to assure our people of hope. The best of us will be seen by everyone.
“We will continue to protect the interest of our people, do the best for everyone, not minding your position or class.
“Our government is a responsive and inclusive government. Our eyes and ears are open to the needs of our people. We will not disappoint you,” Fubara said.
In his speech, the factional Speaker, Ehie assured Fubara of the continued support of the lawmakers to ensure the success for the administration.
Meanwhile, the pro-Wike faction, during their sitting at the auditorium of the House of Assembly Quarters on Aba Road, Port Harcourt, “resolved to adopt and convert the Auditorium of the House of Assembly Quarters to its hallowed chamber.”
According to a statement they issued on Thursday, the lawmakers condemned “in unequivocal terms” what they described as “heartless and brazen demolition of the House of Assembly complex by Governor Siminialayi Fubara, without the approval and knowledge of the House.”
The House, in a motion sponsored by 26 members and moved by Ofiks Kabang, representing Andoni Constituency, drew the attention of the Federal Government, the Inspector-General of Police and the international community, to the constant attack by Fubara on the Rivers State legislature.
Also, the Chairman of the All Progressives Congress Caretaker Commitee in the state, Chief Tony Okocha, in an interview with journalists in Abuja on Thursday, said the demolition of the House of Assembly by Fubara would not stop pro-Wike lawmakers from sitting.
Okocha confirmed that the lawmakers who defected from the PDP to the APC on Tuesday, met on Thursday.
He said, “The House of Assembly can be moved to anywhere. It is not necessarily tied down to a building. Provided the mace is present there, members can sit anywhere. As of this morning, the 27 lawmakers met and even signed some resolutions.”
Meanwhile, the pro-Fubara Speaker, on Thursday wrote the Chairman of the Independent National Electoral Commission, informing the electoral body of the 25 vacancies in the Assembly following the defection of the pro-Wike lawmakers.
Also, some constituents from the four local government areas of Ogoni land in Ribers State said they had commenced a process to recall the four lawmakers representing the areas in the state Assembly.
They named the four lawmakers as those who joined their colleagues to sign the impeachment notice on Fubara.
The name the lawmakers as Deputy Speaker of the Assembly, Dumle Maol, Hon..Barile Nwakor, representing Khana Constituency 1, Hon. Aforji Igwe representing Eleme and Hon Bernard Ngba, representing Tai Constituency.
The Convener of Ogoni Development Drive, Solomon Lenu, said this while speaking to newsmen at the official opening of the recall register in Port Harcourt on Thursday.
Lenu said, “The errant lawmakers left the core responsibility for which they were elected to go on a political jamboree with the Minister of the Federal Capital Territory, Nyesom Wike.
“We have equally obtained the comprehensive voters’ register of all voters in the four LGAs and constituencies.
“We have also created an electronic capture form to make the petition process easier for students at various campuses.”
The ODD convener stated that the commencement of the recall process began after the expiration of the seven-day ultimatum given to the four lawmakers from Ogoni to apologise to Fubara and the Ogoni people who voted for them.
“We will follow the process of their recall to its logical conclusion no matter how long the process may take.
While insisting they will go ahead with the recall process, he added, “We don’t want to be caught in the political snare.
“We are continuing with the recall process until the highest court has declared their seat vacant that is when we will stop.”
The Central Bank of Nigeria (CBN) on Thursday said the country’s earning from oil exports is expected to shrink in 2024.
CBN governor, Olayemi Cardoso, said this was due to the oil production limit, which is pegged at 1.78 million barrels per day in the 2024 budget assumption.
Cardoso stated this in his presentation at an interactive session with the National Assembly joint committee on Banking, Insurance and other Financial Institutions at the National Assembly, Abuja.
He said the approved quota for Nigeria by the Organisation of Petroleum Exporting Countries (OPEC) was 1.8 million barrels per day but the country’s production has been below the threshold.
“We expect less revenue from oil exports due to the production limit of 1.78 Mbps in 2024,” Cardoso told the lawmakers from both chambers.
In the 2023 budget, the oil production benchmark was pegged at 1.69 million bpd but the apex bank governor said Nigeria’s highest level of production was about 1.35 mbpd in the third quarter of 2023.
He blamed the underperformance of the oil production target on crude oil theft and pipeline vandalisation, production shut-ins and divestments by major oil companies.
Cardoso, however, said the outlook for the domestic economy in Nigeria for 2024 was positive as both the inflation and exchange rates would withstand fluctuating pressures and stabilise.
“The outlook for the domestic economy remains positive and is expected to maintain a positive trajectory for 2024. Inflation pressures may persist in the short term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market,” he said.
He said the unification of the exchange rate windows in June 2023 has ushered in a new approach to the management of the exchange rate, aimed at reducing arbitrage, rent-seeking behaviour and speculation in the market.
“The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate.
“The premium has narrowed and our focus on increasing the autonomous FX supply would lead to more stability and further narrowing of the premium.
“Total Trade in the third quarter of 2023 stood at N18.804.68billion. Exports were valued at N10.346.60 billion while total imports stood at N8.457.68 billion. This represents a positive trade balance, which would lead to an increase of the external reserves,” he said.
The Federal Government has said contrary to the claim by the World Bank that government is still paying subsidy on petrol, the era of petrol subsidy is “gone for good”.
Speaking in an interview on Channels TV on Thursday morning, Minister of Information and National Orientation, Mohammed Idris, said President Bola Tinubu made it clear from his first day in office that his government would not sustain the payment of subsidy on petrol.
The minister said the subsidy removal had translated to increased revenue accruing to the federation account.
The World Bank hinted on Wednesday that current fuel prices in Nigeria were not cost-reflective and that the Federal Government might still be paying subsidy on petrol.
The bank said Nigerians should be paying about N750 per litre as against the current price of N650 in some parts of the country.
The World Bank’s lead economist for Nigeria, Alex Sienaert, during his presentation of the Nigeria Development Update (NDU), December 2023 Edition in Abuja on Wednesday, insisted that there was still subsidy on petrol.
He stated, “It does seem like petrol prices are not fully adjusting to market conditions. So, that hints at the partial return of the subsidy if we estimate what is the cost reflective of the retail PMS price of the would-be and assume that importation is done at the official FX rate.
“Of course, the liberalisation is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like.
“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians.”
But speaking on the issue, the minister stressed that government was no longer paying any subsidy on petrol.
He stated, “Subsidy is gone, and the President told Nigerians from his first day in office that there won’t be subsidy (on petrol). It is because subsidy has gone that we have so much money available for government to do so many things. Of course, it’s never enough, but fuel subsidy is gone and it’s gone for good.
“There are instances where government needs to come in to see that things don’t go so bad. That’s the responsibility of government. Every rule will also have its self-adjusting mechanism, but I can assure Nigerians that subsidy is gone.
“If you look at the monies accruing to the federation account and the kind of money the states are receiving, you would know that everybody desires that subsidy should go. What do we do with that subsidy, I think, is the next question. We need to scrutinise that, so that Nigerians would have the benefit of the subsidy that has been taken away. Subsidy is gone.”
Daily Trust had reported that petrol was already selling at around N690 in Kano and Sokoto states, and over N700 per litre in far North-Eastern states of Yobe and Borno.
With the current prices, many Nigerians have been forced to abandon their vehicles even as the cost of basic items has skyrocketed and the value of citizens’ income eroded by inflation.
Many observers have already condemned the World Bank’s prescription and advised the Federal Government to look for a home-grown solution to the prevailing economic challenges in the country.
Daily Trust had reported in September that despite the repeated assurances by President Bola Tinubu that the petrol subsidy regime was gone, the government paid N169.4bn as subsidy in August to keep the pump price at N620 per litre.
Rufus Ada-George, a former governor of Rivers State, has said that he and some elder statesmen in the state are making efforts to reconcile the feud between Governor Similanari Fubara and his predecessor, Nyesom Wike.
Ada-George stated this during an interview on Channels TV’s Politics Today.
The rift between Wike, the Minister of the Federal Capital Territory and Governor Fubara intensified recently leading to the defection of 27 members of the Assembly from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC).
But during the interview, Ado-George said the elder statesmen would speak to Wike and Fubara until they see reason why the state should be handled with care.
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He said, “When the issue came up at the end of October, we reached out to some of them. But with the intervention of President Tinubu at that time, the issue was brought under control. We were hoping that the issue would be resolved once and for all. But unfortunately the issue came up again.
“We reached out to Governor Fubara, but we were not able to establish personal contact with the FCT minister. We are still making that effort.”
[PRESS STATEMENT] Rivers' Mockery of Democracy, Slide to Anarchy and Why the President Must Intervene - Dakuku Peterside
AdminI have watched with shock, disgust, and disbelief the ongoing ugly descent into anarchy of governance and public affairs and the naked display of anti-democratic and anti-people actions by some political actors in Rivers State.
From the reported defection of 27 supposed Honourable members of Rivers State House of Assembly to the demolition of the permanent site of the Assembly complex for renovation, there is no better phrase to describe what my Rivers State has become other than a shameful state of anomie. We see there a ranked display of mockery of democracy and mindless destruction of everything democracy by the same people who should be defending it.
It is sad that in the past few weeks, the peace, stability, and development of the state have been sacrificed on the altar of selfish political agenda, ego, and narrow interests of a few.
It is clear from these political actors' utterances and body language that the only goal dictating their actions is controlling the soul of Rivers State to the detriment of the state's people. The people and their interests have been relegated to the background, whilst political jobbers hold the state on a knife-edge.
Many of our past patriotic leaders sacrificed a lot to build a peaceful, united, and prosperous Rivers State, which these handful of political actors seek to destroy. Rivers people would resist this brigandage, and I urge them to do so urgently. Posterity is going to judge all of us.
At this point, as a leader and stakeholder in the affairs of Rivers State who has personally invested a lot in the development of our dear state, I call on the President and Commander in Chief to intervene and save Rivers from going up in flames. Mr President should note that Rivers State is gradually sliding into total anarchy. As a statesman, he cannot afford to fold his hands and watch the destruction of the state and institutions of democracy.
Mr President, at this point, must place the interest of Rivers State and the people of Rivers State above every other consideration.
I appeal to all genuine elders and well-meaning youths of the state to oppose the politics of destruction and personality cults. We should be in favour of politics of good governance and inclusive development.
Signed
Dr Dakuku Peterside
13 December 2023
The African Union Advisory Board Against Corruption (AUABC) and the Pan African Lawyers Union (PALU), a continental umbrella association of and for lawyers in Africa, have described the Common African Position on Asset Recovery (CAPAR) as a vital policy instrument for the recovery and management of African assets from the foreign jurisdictions.
The Chairperson of the AUABC, Hon. Seynabou Ndiaye Diakhate and the Chief Executive Officer of PALU, Mr. Donald Deya, made this known at the Tenth Conference of States Parties (COSP) to the UNCAC held at the Georgia World Congress Centre in Atlanta, United States.
Speaking at one of the side events of the Tenth COSP, Diakhate said CAPAR provides the platform to strengthen the tracing, identification and recovery of stolen assets from the continent.
She stated that the African Union Advisory Board Against Corruption (AUABC) would continue to collaborate with every stakeholder in the fight against corruption and ensure the return of African assets in foreign jurisdiction.
The leader of PALU explained that the CAPAR was the pathway for handling identified proceeds of corruption in the interval between identification, recovery, and eventual return to source countries.
He said, “The CAPAR is a policy advocacy instrument aimed at assisting AU Member States to trace, identify, repatriate and subsequently effectively manage their assets, including items of cultural heritage, in a manner that respects their sovereignty and for the benefit of African peoples who are ultimately victims of illicit financial flows.
“This is reflected through the CAPAR’s four Pillars. Pillar 1 being the detection and identification of illicitly removed assets; Pillar 2, Recovery and Return of Assets; Pillar 3, Management of Recovered Assets, and Pillar 4 being Cooperation and Partnerships.”
Deya, who is a member of the CAPAR Working Group, disclosed that the group had developed a draft Legal Framework for Asset Recovery by African States which comprises a model framework agreement for the return of African assets.
The working group, according to him, has also developed a proposal for setting up an Escrow Account for African Union (AU) Member-States and a model Escrow Agreement with the African Development Bank or any other approved African Multilateral Bank.
The CAPAR, Illicit Financial Flows, Asset Recovery, Beneficial Ownership and Misuse of Corporate Vehicles, Civil Society’s Role in Addressing Enablers of Corruption and Reducing Gender Inequalities dominated the discussions at the breakout sessions of the 10th COSP.
Also speaking at the 10th COSP, the Immediate Past Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, OFR, canvassed stronger dissemination of the CAPAR principles and capacity building for the role players.
Prof. Owasanoye, who was a member of the United Nations High Level Panel on International Financial Accountability, Transparency and Integrity (otherwise known as the FACTI Panel), explained that stronger dissemination of the CAPAR principles and capacity building had become imperative to prevent illicit financial flows, enhance asset recovery and management capabilities, and preserve the sovereignty of the African States on the utilisation of recovered assets.
He advocated the use of more global and regional platforms such as the Conference of States Parties (COSP) to propagate the CAPAR.
A member of the Thabo Mbeki-Led-African Union High Level Panel on Illicit Financial Flows, Ambassador Segun Apata commended the Panel and the CAPAR Working Group for the strong advocacy on the policy instrument at the 10th COSP in Atlanta, United States
He urged the African Union High Level Panel and the CAPAR Working Group to keep the policy document and the issue of asset recovery on the front burner of discourse in international and regional meetings.
President Bola Tinubu has described the absence of comprehensive data as the major technology affliction affecting Nigeria’s growth and Africa at large.
Mr Tinubu represented by the Vice President, Sen. Kashim Shetima, said this at the Comptroller -General of Custom, CGC, 2023 conference on Thursday in Lagos.
The conference had the theme:” Leveraging Data Analytics for Secure and Efficient Trade Facilitation in Customs Operations.”
He noted that the inadequacy of data had impeded the ability of Nigeria to make informed decisions, perpetrating a circle of missed opportunities and sub-optimal outcomes.
He added that the country had been hindered by the fourth industrial revolution.
“Every part of the world is at the mercy of data and everyday we are reminded of the expanding volume of data upon which our divisions must be rooted.
“Data is the life guiding the ever-evolving landscape of our modern world. It is this realisation that sounds the invaluable goal of this century that prompted Tinubu’s strategic placement of tech savvy in Nigerians critical positions in the government.
“These appointments ensures not only strategic planning but also the cultivation of Nigeria as a hub of refined minds in the global knowledge economy.
“We must not only commit to deploying data to make decisions within the government, but to address the historical inadequacies of Nigeria policy making often impeded by lack of comprehensive data,” he said.
He pointed out that the current governance landscape demands a transformative intervention and the solutions was what had brought everyone here together today.
“The integration of complex data to interpret the volumes of our transitions and interactions is even more needed in international trade because the dividends transcend to determination of revenues.
“Data provides the sharpest links for us to connect the dots. Even in establishing the security of our borders, we can easily determine the traffic of people and goods around a specific border and share indisputable information with other nations with just a punch on our computers,” he said.
The Lagos State Governor, Babajide Sanwo-Olu, said the customs service performs critical roles bordering on revenue collection, participation of national and international trade as well as securing the national borders against the infiltration of the country with illegal items, among others.
Sanwo-Olu said the NCS had recognised its role at ensuring modern day technology as a strong driver and an enabler for it to innovate and develop capacity and capability that would take the service to an enviable position.
He added that the NCS would compete and compare with other services of similar likes anywhere in the world with enhanced technology.
“For the country to achieve the N1 trillion Gross Domestic Product (GDP) target of President Tinubu between now and 2030, the NCS must play a critical role by leveraging technology in data analysis.
“They should be able to form a well-thought-out decision making after analysis, which is critical and germane,” he said.
Sanwo-Olu said Lagos State would continue to provide the enabling environment for trade and as well contribute over 70 per cent revenue to the state government through the NCS.
The Ooni of Ife, Oba Adeyeye Ogunwusi, noted that without data, one could not plan, urging the NCS to utilise data in their operations.
Ogunwusi urged the controller General to give back to Lagos, where they get their 70 per cent revenue.
Earlier, the CGC of Customs, Adewale Adeniyi, noted that the choice of the conference theme, was a strategic alignment with the pressing demands of contemporaries and governance.
He added that the significance of data analytics in customs operations cannot be overstated in a time dominated by information and digital advancements.
“This theme places a spotlight on the indispensable role of technology in trade facilitation, ensuring that our discussions transcend mere theory, rooting themselves firmly in actionable insights.
“So, we therefore, welcome you to a conversation where innovation meets implementation, and worlds evolve into driving force of positive change,” he said.
He pointed out that the service was commited to using meticulous data management to improve security and trade.
“Just as Lagos will never sleep, NCS will remain sleepless until they meet their goal of integrating and streamlining their operations to international standards.
NAN
The Economic and Financial Crimes Commission, EFCC, has arrested twin brothers, Taiwo and kehinde Adio alongside five others over alleged internet fraudulent activities in Ibadan, Oyo State.
Its spokesperson, Dele Oyewale said this in a statement on Thursday in Abuja.
According to him, they were arrested on Dec. 7, at Apete and Apata areas of Ibadan, following surveillance and actionable intelligence on their suspected involvement in internet- related offences.
“The five other suspects are Jeremiah Gabi, Dennis Gomina, Adepoju Ibukun, Olabode Opeyemi and Adewumi Ayomide.
“In the same vein, the Oyo State Police Command handed over three suspected internet fraudsters to the Ibadan Zonal Command of the EFCC on Dec. 7. They were arrested by the police while on patrol.
“Investigations carried out by the EFCC revealed that one of the three suspects was not involved in internet fraud and was released immediately without any bail condition.
“The two suspects are Joseph Isaac Justice and Ayoola Oluwatosin,” he said.
He said items recovered from the nine suspected fraudsters include one Toyota Corolla car, iPhone 11, two Samsung mobile phones among others.
Mr Oyewale said that the suspects would be charged to court as soon as investigations are concluded.
NAN
Rivers state governor, Siminalayi Fubara, has signed the 2024 Appropriation Bill of N800bn into law.
Governor Fubara who presented the bill on Wednesday, December 13, to a four-member House of Assembly led by Speaker Edison Ehie, signed the budget at the Government House, Port Harcourt, on Thursday, December 14.
The ceremony was witnessed by the Deputy Governor, Prof Ngozi Odu; some metres of the State Executive Council, present and former lawmakers who support Governor Fubara, and some chairmen of the Peoples Democratic Party (PDP) at the Local Government Areas.
The governor in his address said the estimated N800bn, tagged, ‘Budget of Renewed Hope, Consolidation and Continuity’ will be well implemented to provide critical infrastructure like the second phase of the landmark Trans-Kalabari road and meet the socio-economic needs of the people.
On his part, Edison Ehie commended the governor’s foresight in expanding infrastructure and youth development through employment generation.
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The Nigerian National Petroleum Company Limited, NNPC Ltd., has announced the death of a former Group Managing Director, GMD, and Acting Alternate Chairman of the Board of the defunct Nigerian National Petroleum Corporation, NNPC, Dr. Thomas Maurice Asuquo John, at the age of 84.
In a statement obtained by Vanguard, NNPC stated: “A quintessential administrator and oil & gas industry professional, Dr. John was the 5th GMD of NNPC, succeeding the late Dr. Aret Adams from April 1990 to June 1992.
“He was also a Non-Executive Director, South Atlantic Petroleum (SAPETRO), Executive Chairman, Hydropec Engineering Services Ltd., and former Non-Executive Director, United Bank for Africa (UBA) Plc, among other positions.
“On behalf of the entire NNPC Ltd. Management and Staff, the GCEO, Mr. Mele Kyari, extends the company’s heartfelt condolences to his dear wife, family, friends, and relatives during this very trying period. May his soul rest in peace.”
Efforts by president Bola Tinubu to put an end to the feud between the Rivers state governor, Simi Fubara and the FCT Minister, Nyesom Wike have hit a stumbling block, the All Progressives Congress has disclosed.
Fubara and Wike have been at daggers drawn for weeks now over the management of the State affairs and control of its resources.
Tinubu recently held a meeting with Wike and Fubara at the presidential villa in Abuja, to reconcile the two politicians in the state.
But in the last four days, events have taken a frightening turn with the demolition of the state House of Assembly Complex and defection of 27 members of the assembly loyal to Wike, to the APC.
Addressing a press conference at the APC national secretariat on Thursday in Abuja, following the developments in the state, the caretaker committee chairman of the All Progressives Congress (APC) in Rivers State, Tony Okocha, said Tinubu’s move to end the nagging feud between Fubara and Wike has collapsed.
Okocha said, “I wasn’t part of it, but whatever that was it, has broken down, and it has been broken irreconcilably.”
He also said the four members of the state House of Assembly led by the factional Speaker, Edison Ehie, who sat and passed the budget presented to them by Governor Fubara for the 2024 fiscal year were dwelling on illegality, saying their action would not stand.
Okocha said the APC was wooing Wike to defect to the party, stressing that as soon as he becomes a member of the APC, he would become the party’s leader in the state
The Nigeria National Petroleum Corporation Limited is not transparent about the financial gains from fuel subsidy removal, the World Bank has disclosed.
This extends to subsidy arrears that are still being deducted and the impact of subsidy removal on federation revenues, the bank noted. The Washington-based made this call in its Nigeria Development Update, December 2023 edition titled, ‘Turning The Corner (from reforms and renewed hope, to results).
This is the Minister of Finance and Coordinating Minister of Economy, Wale Edun, revealed that the government was ready to scrutinise the revenue flow from the NNPCL.
According to the World Bank, while revenue gains from the exchange rate reforms are visible, more clarity is needed on oil revenues, including the fiscal benefits from the PMS subsidy reforms.
It declared, “nominal oil revenue gains have been evident since June; these are mostly categorised as “exchange rate gains”, suggesting that they are due to the naira depreciation.
“Except for the exchange rate-related increases, however, there is a lack of transparency regarding oil revenues, especially the financial gains of the Nigeria National Petroleum Corporation from the subsidy removal, the subsidy arrears that are still being deducted, and the impact of this on Federation revenues. It is also unclear why retail petrol prices have not changed much since August, despite fluctuations in the exchange rate and global oil prices.”
The Bretton Woods institution further expanded that gains in net oil revenue of the federation were lower than what they should have been considering what the removal of fuel subsidy should have added to the accounts.
It stated that fuel subsidy cost the federation about N380bn a month, and once removed, the federation account should have recorded an increase in net oil revenues.
It said, “However, most of the gains in the oil revenues in H2 2023, as reported by OAGF, can be attributed to exchange rate gains. Without exchange rate gains, net oil revenue between January and August would have declined by 0.2 of a percentage point of full-year GDP yoy, all materialising in the July–August period.
“In August, additional revenue from 40 per cent profit of Production Sharing Contracts and the interim yearly dividend were reflected in the accounts. However, these were not as high as what the gains from removing the gasoline subsidy should have been. Given that petrol pump prices have not changed in line with market fundamentals (notably exchange rate movements and global oil prices), there is a risk that the implicit fuel subsidy has reemerged, potentially keeping net oil revenues lower than expected.”
The institution further noted that the reform of fuel subsidy should help the NNPCL to settle its arrears and start paying fully for the Federation’s share of costs in joint venture operations, thereby allowing oil production to gradually increase over time.
Also speaking at the presentation of the report, the Coordinating Minister of the Economy, Edun noted that the removal of fuel subsidy saved the government’s finances.
He stated that while expectations that subsidy removal should boost the government’s revenue, it was faced with debt funding and a high fiscal deficit.
He said, “In terms of the government’s finances, you have rightly pointed out that following the removal of subsidy, there is an expectation that there would be fiscal dividends and it’s fair to say that without it, government finances will be in total disarray now. However, there is debt funding, pressure on fiscal deficit, and on government finances, and borrowings which have been inherited.
“Our levels of borrowing are being reduced and there is a plan to reduce that fiscal deficit over time. On the revenue side, the first source is oil, and I expect that there will be serious scrutiny on oil revenue and production and insistence on raising oil production and similarly that the revenues are brought into the federation account following the constitution. I think there will be added scrutiny, and I am sure NNPC is getting ready for that.”
Edun further declared that there would be a robust rollout of measures to raise tax revenue soon. He, however, highlighted that tax rates would not be increased but a lot would be done regarding efficiency, digitalisation, and improved collection.
He added that waivers and tax incentives would be scrutinised to revamp it and save leakages, particularly among ministries, departments and agencies.
Subsidy removal and controversies
On May 29, President Bola Tinubu announced the removal of fuel subsidy with, “Subsidy is gone,” to free up foreign exchange earnings.
In his August 1 national address, Tinubu disclosed that the Federal Government had saved about N1tn in two months after the removal of the petrol subsidy freeing up funds for other things in the economy.
He said, “In a little over two months, we have saved over a N1tn that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters.”
According to him, the funds saved from subsidy removal “will now be used more directly and more beneficially for you and your families.”
However, there have been concerns that the dividend of subsidy removal has not trickled down to the average Nigerian.
Recently, a former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, alleged that the NNPCL might not be remitting enough dollars to the federation account despite subsidy’s removal.
Speaking during the Bank Directors Summit organised by the Bank Directors Association of Nigeria recently, Sanusi, said, “The exchange rate needs to be stabilised and we have to address the fundamental question, why is there no money coming in?
“Why is the NNPCL not able to bring in dollars? Am sorry this is the question that cost me my job and I will continue asking this question until NNPCL fixes it up or until I die. Where are the dollars? We need to shine a light on the NNPCL. The finance minister cannot tell you because he doesn’t have a monitoring system that reports to him.
“The finance minister can’t tell you how many barrels of petrol we produce and export. It is only the NNPCL that can give those figures. The finance ministry needs to know how much oil we produce daily, how much we sell, and where the money is going. We are no longer paying subsidies so where are the dollars? It was under recovery during the subsidy era and that has been stopped, so where is the money?”
Sanusi noted that the NNPCL was opaque about its dealings, shrouding many of its dealings in secrecy.
Defending the oil company’s finances, the NNPCL’s Chief Financial Officer, Umar Ajiya, who was representing the Group Managing Director, Mele Kyari, disclosed that since the inflow of dollars into the country is tied to oil revenues, the country is facing the consequence of falling oil production, insecurity, and lack of investments in the sector.
He also said the NNPCL had been using its revenue to import refined PMS and service debt. He said, “Just to clarify and let the audience go with a well-balanced information. The inflows of dollars into the country are tied to oil revenues and the oil revenues are driven from oil production.
“The consequence of what we are facing today is a fall in oil production simply because of insecurity and lack of investments. The net dollar accruable from oil operations is what the NNPCL uses to import PMS. The PMS is sold in naira, you can’t sell it in dollars. Consequently, you would find out that the net dollar inflows into the NNPCL coffers are spent on the import of basically PMS and debt service.”
Ajiya stressed that the surplus dollars inflow to the CBN and any other bank in the country can only happen when the country starts producing PMS over its domestic requirement.
According to the CFO, adequate forex inflow can also happen if insecurity is addressed, and such development will attract partners to bring in fresh dollars in the form of investment to oil operations.
He added, “So until such a point where we have excess production over and above what we consume, then we will begin to see much dollar liquidity coming into this country. The whole consumption pattern of most Nigerians is foreign import-dependent and until we come to a position whereby, we begin to consume what we produce and also add value to our raw materials to bring further FX into the country.”
N750/litre petrol price
In its report, the global bank noted that there is a risk that Federal Government may still be paying for fuel subsidy which is why net oil revenues are lower than expected.
During his presentation at the unveiling of the report, the bank’s Lead Economist for Nigeria, Alex Sienaert, noted that fuel processes are currently not cost-reflective in the country.
He disclosed that the market price of petrol should be around N750/litre.
He said, “It does seem like petrol prices are not fully adjusting to market conditions, so that hints at the partial return of the subsidy, if we estimate what is the cost reflective of retail PMS price of the would-be and assuming that importation is done at the official FX rate.
‘’Of course, the liberalisation is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like. We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians.”
According to him, there is a need for the government to clarify how prices at the pump are fixed as opposed to market conditions.
He noted that the government must ensure that revenue gains from the removal of fuel subsidy materialises, while improving the transparency of the NNPCL with regards to profits and oil revenues to be remitted to the Federation Account.
104million Nigerians poor
While noting that important reform decisions have been taken for Nigeria to avoid a fiscal cliff, the World Bank stated that these reforms were followed by difficult economic adjustments.
Since the removal of fuel subsidy, retail fuel prices have increased by more than 163 per cent and after shifting to a unified, market-reflective foreign exchange regime, the naira has depreciated against the US dollar by about 41 per cent in the official market and 30 per cent in the parallel market.
The sharp increase in the price of fuel and other imported goods has contributed to inflation, which hit an 18-year record high of 27.3 per cent year-on-year in October.
However, the World Bank insists that the recent reforms will undo the increases in poverty seen in recent years from 2024 onward, albeit only marginally and slowly.
It stated that sluggish growth and rising inflation increased poverty from 40 per cent in 2018 to 46 per cent in 2023, pushing an additional 24 million people below the national poverty line.
It said the number of poor Nigerians rose from 79 million in 2018 to 104 million in 2023, with urban poor — more exposed to inflation — increasing from 13 to 20 million, while the number of poor people in rural areas increased from 67 to 84 million.
It argued, “In the medium term, the reforms will reverse this trend through higher growth and lower inflation, but to a limited extent, with poverty rates decreasing from 46 per cent in 2024 to 44 per cent in 2026.”
According to the World Bank, the successful implementation of the initiated reforms will be the first step toward improving Nigeria’s growth prospects.
It highlighted that the implementation of fuel subsidy removal and foreign exchange unification rate would push economic growth to 3.5 per cent between 2023–2026, adding 0.5 percentage points to the growth potential in a scenario in which the reforms had not been implemented.
The global bank further stated that in the medium term, the economy will begin to benefit from increasing fiscal space for development spending.
While noting that inflation will begin to fall in 2024, it added, “Together, such reforms would boost investment and productivity across sectors, unlocking the stronger growth that Nigeria’s economy demonstrably capable of, and allowing economic development to regain its fast pace.”
‘Presentation Of Budget To Four Lawmakers Does Not Fulfil Constitution Requirements’ – APC Faults Gov Fubara
AdminThe All Progressives Congress (APC) has berated the Rivers State Governor, Siminalayi Fubara, over the 2024 budget presentation to four out of the 32 members of the state House of Assembly.
Recall that on Wednesday, Fubara presented the N800 billion 2024 budget to the four lawmakers allegedly loyal to him at the Government House in Port Harcourt, a few minutes after the House of Assembly Complex demolition.
Reacting to the development, the Rivers State APC Caretaker Committee Chairman, Tony Okocha, in a statement in Port Harcourt on Thursday, said Fubara’s action was unconstitutional.
Okocha argued that Section 120(2) of the Constitution clearly stated that no money should be spent except if the state House of Assembly appropriated it.
The APC chieftain cautioned that expenditure made by the state government on the outcome of such a presentation was an infringement on the constitution and as such, it would be sufficient grounds to commence impeachment.
He also insisted that Martin Amaeuhle remain the Speaker as Section 92(2)C prescribed that a two-thirds majority of the House of Assembly can remove a Speaker, adding there was no evidence to show he has been removed from office.
He said, “The presentation of a bill to 4 suspended members of the House of Assembly does not fulfil the requirements of the constitution for all the reasons stated.
“Amaewhule remains the speaker of the House of Assembly, the lawmakers passed a vote of confidence on him.”