Finance
Ex-Finance Minister released $1bn govt funds for Jonathan’s re-election – Oshiomhole
ABUJA-THE Edo State Governor, Adams Oshiomhole, has accused the former Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, of tampering with $1bn from the Federation Account, which he claimed was used “for election purposes.”
But in a swift reaction, Okonjo-Iweala described the statement as a “ludicrously false statement that has unfortunately become a trademark of the Governor in his public campaign of falsehood.”
However, Oshiomhole, who disclosed this on Monday at a seminar organised by the state government for permanent secretaries, directors and deputy directors on enhancing internally generated revenue in the state, challenged the former minister to tell Nigerians how the Excess Crude Account was drawn down to $4.1bn from the peak of $10bn, when no approval was given by the National Economic Council for any withdrawals.
Dr. Ngozi Okonjo-Iweala
He also called for a forensic audit to determine the true amount which he said was illegally spent from the Federation Account under her watch as a minister.
The governor said, “The truth is, many things went wrong even at the federal level. As you might have read in the papers while the Federal Government, under Goodluck Jonathan, with the then Coordinating Minister of the Economy liked to blame ‘governors’ for wasteful spending; for not saving for the rainy day; for not investing properly, the truth is the real weakness in the Nigerian federal chain has been the Federal Government.
“Our hope is that with the new President, given his pedigree, we will break from the past. As I am sure you will soon begin to hear when all the numbers are published. Last week, I complained aloud that Edo State lost about N10bn over a four-year period from only one source – the NLNG remittance to the Federation Account.
“How did I arrive at the figure? I used my Four-Figure Table and I asked myself at $2.1bn remitted by NLNG, as taxes, and Shell. And by the way, Shell is not the only oil operative; we have Chevron and several others. They shared the $2.1bn based on the revenue allocation formula, Edo State got about N2.27bn. So I said, thank God this money came after the departure of Okonjo-Iweala and President Jonathan. If the PDP were still in charge in Abuja, this money would have been taken.
“That is not the only money Edo State Government has lost. You have heard of the last instalment of $4.1bn that was in the Excess Crude Account as of November, 2014, and from that time till today, we have not, when I say we– federal, states and local governments have not touched that money. We have not agreed to take anything out of it, and yet it has been drawn down to about $2bn, which means $2.1bn disappeared.
“But if you talk to those oil marketers, they will tell you that within that period, they were paid $1bn, not $2.1b. So in truth, about $1bn was taken for election purposes and Edo State’s share of that should have been about N4.6bn from that $2.1bn that Dr. Ngozi Okonjo-Iweala, the former Minister of Finance illegally took from Excess Crude account.
Oshiomhole added, “Governments have lost a lot of money and the $2.1bn, that is Edo State’s share of that, because that would have included derivation, we would have made about N2.6bn. That, we have lost now to Okonjo-Iweala. Now that she claimed she used it, between herself and the last President, they agreed to take the money to pay oil marketers.”
Meanwhile, Okonjo-Iweala on Monday night denied withdrawing the sum of $1bn from the Excess Crude Account to finance the campaign of former President Goodluck Jonathan.
In a statement issued by her Media Adviser, Mr. Paul Nwabuikwu, the former finance minister described the allegation by Governor Adams Oshiomhole of Edo State that she spent $1bn out of the ECA to fund the re-election bid of former President Jonathan as a “ludicrously false statement that has unfortunately become a trademark of the Governor in his public campaign of falsehood.”
The statement said the comment by the governor was “just another example of the numerical diarrhea that seems to have afflicted His Excellency in recent times in his effort to damage the reputation of the former Minister.”
It read in part, “He has, within the last few months, asked Okonjo-Iweala to explain all kinds of totally wild and unsubstantiated figures, ranging from $30bn, $20bn, $2.1bn, N720bn and now $1bn.
“To say the obvious, the accusations are totally lacking in credibility. Governor Oshiomhole’s published comments also contain other falsehoods.”
“Dr Okonjo-Iweala never said the Federation Accounts Allocation Committee approved spending out of the ECA. Rather as the commissioners themselves stated, the former Minister of State Finance informed them that former President Jonathan approved the expenditure to end the debilitating fuel queues across the country.”
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.
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.
In Nigeria, people have been forced to come up with creative solutions to cope with the effects of inflation and the economic crisis.
These improvised strategies have not only helped individuals save money, but also enabled them to stay afloat during difficult times.
In a concerning development, the recent trend of boycotting the high cost of cooking gas cylinders in Nigeria may pose a greater risk to lives than it does in terms of saving money.
Economy&Lifestyle investigations have revealed that the soaring prices of gas cylinders have reached a point where it has become increasingly challenging for average households to afford them, let alone refill them with gas.
The situation is further exacerbated by the fact that the pump price of kerosene, which would typically serve as an alternative, has become prohibitively expensive.
Upon investigation, it was found that the prices of gas cylinders vary depending on their sizes. A 3kg gas cylinder is priced at N14,000, while a 5kg cylinder costs N16,000. The larger cylinders are even more costly, with a 6kg cylinder priced at N17,000 and a 12.5kg cylinder costing N19,000.
Additionally, the expense continues when it comes to filling these cylinders with cooking gas, as it costs N2,600 for a 3kg cylinder, N5,200 for a 6kg cylinder, N8,950 for a 10.5kg cylinder, and N10,650 for a 12.5kg cylinder.
Consequently, an average household that needs to replace a worn-out 5kg cylinder would have to come up with N20,250 to purchase a new cylinder and fill it with gas, which can be a difficult feat to achieve.
As a result, many people have resorted to refurbishing their old cylinders and trying to use them as best as they can. However, this approach poses a significant danger.
Mrs. Rukayat Adesoji, a trader, shared her experience regarding her gas cylinder, which had become rusted and could no longer stand upright since last month. Due to the exorbitant prices of purchasing new cylinders, she resorted to seeking the assistance of a welder.
The welder patched the legs of the cylinder, repainted it, and ever since then, she has been using the refurbished cylinder for her cooking needs.
She said ““My gas cylinder which was 6kg got rusted and no longer stands erect since last month. When I asked for the price, I was told it was N17, 500. I was discussing it with a friend who advised me to take it to a welder to paint it and construct a new stand. I heeded to her advice and at the end spent just N3, 000 to turn my cooking gas to a brand new.”
Apart from refurbishing cylinders, some people don’t even know when their cylinders will expire. Mrs. Mercy Opara, a hair stylist, falls in that category as she explained: “I am taking my gas cylinder to the welder to spray it for me. It just cost N1, 500.
“The cost of buying a new cylinder is high. I have been using my cylinder for over 7 years and I don’t even know the expiry date. I just pray God blesses me so that I can buy a new one. But this one I am managing will look neat after spraying it for another two years.”
Mr. Adekanbi Joseph, a wielder, said he paints cylinder and “To paint and rebuild a cylinder stand, I charge N4, 500. Many people come here to paint as a new cylinder is now very expensive to get.”
Highlighting the potential dangers of using refurbished cylinders, Mr. Benjamin Hope, the Chief Executive Officer of FKT Cooking gas and general goods, emphasized the risks involved.
He stated that even a brand new cylinder can pose a risk of explosion if the locks are not properly secured after use or if the cylinder filled with gas is moved from one location to another.
He said “A brand new cylinder can explode if the locks are not well keyed after using and if the cylinder filled with gas was moved from one place.
“There are many reasons for the high cost of gas cylinders in Nigeria. One is the cost of importation due to the exchange rate. Another is the increased migration from the use of kerosene to cooking gas which has necessitated increased demand for gas cylinders. You know that in such a case there will be increased importation of cylinders.”he added
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