Finance
EFCC arraigns ex-NIMASA DG, 9 others over alleged N1.2bn scam, remanded in Prison custody
LAGOS-THE Economic and Financial Crimes Commission on Thursday arraigned a former director-general of the Nigerian Maritime Administration and Safety Agency, NIMASA, Patrick Akpobolokemi, and seven other staff of the agency.
Those arraigned before Justice Salihu Sa’idu of the Federal High Court, Lagos on a 30-count charge bordering on conspiracy, fraudulent conversion of funds and money laundering include Eziekiel Agaba, an executive director; Ekene Nwakuche; and Felix Bob-Nabena.
Others are Warredi Enisuoh, Governor Juan, Ugo Frederick, Timi Alari, Alkenzo Limited and Penniel Engineering Services Limited.
The accused persons allegedly conspired to convert and launder several sums of money running into billions of naira under the guise of providing security intelligence around the maritime domain.
A committee on intelligence was established by the agency under the watch of Mr. Apobolokemi with the second accused person, Mr. Agaba, as chairman.
“The committee allegedly received a total sum of N1, 153,000,000 (One Billion, One Hundred and Fifty Three Million Naira Only) between December 2013 to July 2015.
“In disbursing the sum, the accused persons allegedly conspired and hired companies, which investigation revealed, were neither registered nor have requisite capacity to provide such services.
“Investigation further disclosed that most of the companies contracted were either nominated by the accused persons or are directly owned by them,” said the statement.
According to one of the charges, Mr. Akpobolokemi conspired with the rest of the accused persons to commit the offense, which is punishable under the Money Laundering (Prohibition) Act of 2012.
After listening to the charges, the accused persons pleaded not guilty.
Prosecuting counsel, Rotimi Oyedepo, prayed the court to remand the accused in prison and fix a date for trial.
But counsel representing the accused persons, however, filed for bail applications, praying the court to admit their clients to bail.
In opposing the bail application for the first accused person, Mr. Oyedepo filed a counter affidavit, praying the court not to grant the defendants’ application.
He argued that the first defendant had jumped the administrative bail granted to him by the anti-graft commission.
He further added that someone who could not honour administrative bail should not be trusted to honour bail granted by the court.
Mr. Oyedepo also told the court to refuse the bail applications of all the other accused persons based on the severity of the proof of evidence before it.
The presiding judge, however, admitted the first accused person to bail in the sum of N100, 000,000 and two sureties.
One of the sureties, the court said, must have a landed property in Lekki, Ikoyi or Victoria Island areas.
The other surety must either be on federal or state government employment not below the rank of director.
The other accused persons were granted bail in the sum of N50, 000,000 each with one surety in like sum.
According to the court, one of the sureties must be in either federal or state government employment not below level 16 and the other must have landed properties within Lagos.
Mr. Salihu therefore adjourned the case till January 29 for the commencement of trial.
He ordered that the accused persons be remanded in Ikoyi prison pending perfection of their bail terms.
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.
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.
Banking
CBN Denies Currency Devaluation
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.
Banking
BREAKING: CBN Increases Interest Rate By 0.5%
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.