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Buhari blames state of Nigeria’s economy on massive looting under Jonathan

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By Yemie ADEOYE

ABUJA– FOLLOWING the state of Nigeria’s economy and revelations on how the national vault was plundered and monies shared amongst politicians of the ruling Peoples Democratic Party under Goodluck Jonathan’s administration, the Muhammadu Buhari led-Federal Government of Nigeria has blamed the current state of the naira and the nations economy in general on its predecessor.

 Specifically the Minister of Information and culture Alhaji Lai Mohammed said that the poor state of the country’s economy, especially the depreciation in the Naira exchange rate, is the direct consequence of the incomprehensible mismanagement of the economy and the mindless looting of the national treasury under the immediate past Administration, rather than any so-called mismanagement by the Buhari Administration

Ex-President Goodluck Jonathan

Ex-President Goodluck Jonathan

”If there was still any honour left among thieves, there is no way the leaders of a party under whose watch the
nation’s economy suffered a monumental mismanagement and the Central Bank was turned to the ATM or piggy bank of a few people will have the temerity to insult a government that is working hard to turn things around or the citizens who are bearing the brunt of such mismanagement,” the Minister of Information and Culture, Alhaji Lai Mohammed, said in a statement on Sunday.

”It is now clear to all Nigerians that if the PDP had won the last general elections, Nigeria’s economy would not have

survived one more month, considering the battering it received under the immediate past Administration. It is therefore
unconscionable that those who should show contrition and hunker down to avoid public opprobrium are the same ones
pointing an accusing finger at the Buhari Administration,” he said.

Alhaji Mohammed described the comments credited to Deputy Senate President Ike Ekweremadu, that businesses may
collapse in the next six months because the Buhari Administration has mismanaged the economy, as the clearest indication
yet that the PDP and its leaders are still in denial about the massive body blows they inflicted on the Nigerian economy.

”Senator Ekweremadu complained about the depreciation of the Naira without telling Nigerians who ‘dollarized’ the Nigerian economy by bribing many individuals and groups with dollars during the last elections, thus inflicting a knock out punch on the local currency. He also failed to tell Nigerians which government presided over the frenzied mop-up of dollars, either for ‘armsgate or for slush fund purposes, from the CBN to a point where it almost ran out of the hard currency,” he said

The Minister said even though the Buhari Administration met an economy that was in coma, it had refused to use that as
an excuse for inaction, hence has been working hard on measures that will turn the economy around and greatly offer relief to Nigerians by lifting millions, not thousands, of people out of poverty through a massive social intervention policy.

”The outcome of the months of hard work will manifest soon in the 2016 national budget that will give succour to millions of Nigerians who are reeling from fallout of the solecism of the immediate past Administration that turned the country into a cash bazaar,” the Minister said

He advised the leaders of the PDP and members of the immediate past Administration who are involved in the emerging cases of looting binge to urgently return, to government coffers, the funds they have squirreled out of the commonwealth.

”They are lucky that Nigerians are not as incautious as they are, otherwise they would not be able to walk around freely, not to talk of having the effrontery to fire darts at the government that inherited their rot or the people who are suffering the consequences.

”They looted the billions of Naira that were allocated for the fight against insurgency, causing many innocent and patriotic soldiers to die needlessly, yet they are not remorseful. They looted the treasury to influence the last elections, doling out money as if it was going out of fashion, yet they continue to grandstand.

”In the latest revelation, a Minister under the immediate past dispensation admitted to sharing 600 million Naira to six Chairmen of the Contact and Mobilization Committee of the PDP for the last general elections, 300 million Naira to an account given by a former PDP chairman, 200 million Naira to a PDP governorship candidate and 100 million Naira to a former PDP governor. This is just one case out of many, yet these revelations are but a tip of the iceberg of what Nigerians will hear in the days ahead,” Alhaji Mohammed said.

The Minister assured that despite the mind-boggling revelations about looting and the mismanagement by self-styled economic wizards, the economy will bounce back under the watch of President Muhammadu Buhari, who is bringing probity and transparency back into governance and this would reflect on aspect of our national life.

Business

Nigeria pays US$4.9 billion on petrol subsidy in 2024- NNPCL

It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies. 

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Yemie ADEOYE

INSPITE of the official position of the Nigerian government that the controversial petrol subsidy is gone for good as announced by the President on assumption of office, the state owned Nigerian National Petroleum Corporation Limited, NNPCL has disclosed that petrol subsidy is still fully operational in Nigeria, although, under a different identity.

Umar Ajiya, Chief Financial Officer at the NNPCL, disclosed that it cost the company a staggering N7.8 trillion (US$4.9) to cover this price gap in the first seven months of 2024.

Rather than simply referring to these claims as subsidies, he stated that the company is merely managing the price difference in petrol imports on behalf of the federation, stressing that this should not be misconstrued as a return to subsidy payments.

This revelation has reignited discussions on whether the NNPC is indirectly offering subsidies, a concept typically defined as selling a product below its cost price.

Documents reviewed by Biztellers.com.ng showed that the term “subsidy” was used extensively in official correspondence between the NNPCL and the presidency, particularly in reference to the “shortfall.”

Recall that President Bola Tinubu reportedly approved NNPC’s request to utilize the 2023 final dividends due to the federation to offset these costs.

However, during a media briefing on Monday about the company’s 2023 audited financial statements, Ajiya refuted claims that the NNPC is involved in any subsidy scheme.

Ajiya further disclosed that the Nigerian government owes the NNPC N7.8 trillion ($4.9 billion) in subsidy-related debts for the period from January to July 2024.

In furtherance of his clarification to the News Agency of Nigeria (NAN), Ajiya insisted that no subsidy payments have been made to any marketer in the last nine years, citing the NNPC’s role as the sole importer of petrol under supply contracts.

He said, “In the last eight to nine years, NNPC Ltd. has not paid anyone a dime as a subsidy; no kobo has been disbursed by NNPC Ltd. in the name of subsidy. No marketer has received any payment from us for subsidy.”

“What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. So the difference between the landing price and that half price is a shortfall.

“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.”

Ajiya remained silent on how much of the $4.9 billion could have been remitted to the federation account if the NNPC had not been covering the “shortfall.”

It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies.

 

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Banking

CBN Denies Currency Devaluation

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CBN Pegs Interest Rate at 14%

 

The Central Bank of Nigeria (CBN) has refuted claims of devaluing the.

 

Earlier reports suggested that the CBN had devalued the Naira, lowering its exchange rate from N631 to the dollar, compared to the previous day’s rate of N461.60 at the Importers and Exporters (I&E) window.

 

However, the Central Bank of Nigeria (CBN) released a statement on Thursday through its Acting Head of Corporate Communications, Dr. Isa Abdulmumin, categorizing the report as false information.

 

In the statement titled ‘CBN Has Not Devalued The Naira’, he said the attention of the apex bank was drawn to the news report by an Abuja based newspaper edition of June 1, 2023, titled “CB Devalues Naira To 630/51”.

 

However, the CBN stated categorically that the news report was replete with outright FALSEHOODS and destabilizing innuendos, ‘reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.’

 

“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters (I&E) window traded this morning (June 1, 2023) at N465/USS1 and has been stable around this rate for a while.

 

“The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market,” the CBN spokesman added.

 

He, therefore, advised media practitioners to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.

 

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Banking

BREAKING: CBN Increases Interest Rate By 0.5%

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CBN Pegs Interest Rate at 14%

 

The interest rate in Nigeria has been raised to 18.5 percent, up by 0.5 percent, from 18 percent where it was pegged in March 2023.

 

The Central Banks of Nigeria’s (CBN) Monetary Policy Committee (MPC) resolved to this effect at its third meeting of 2023 in Abuja, on Wednesday.

 

Governor, CBN, Godwin Emefiele, made the disclosure in the communiqué of the MPC’s meeting,  thereafter.

 

While engaging the media at the end of the two-day meeting, Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.

 

In the view of the MPC, rising inflation rate is traceable to the high energy cost and challenges around the supply chain, among others, which lie outside the corridors of the CBN.

 

Emefiele said, “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”

 

Biztellers reports that the CBN had effected six consecutive interest rate increases, which has seen the rate move from 11.5 percent in March 2022 to 18.5 percent in May 2023.

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