Finance
Nigeria to commence probe treasury looters in weeks-Buhari
ABUJA-PRESIDENT Muhammadu Buhari said Tuesday in Abuja that the prosecution of persons who have stolen national resources will begin in a matter of weeks.
Speaking at a meeting with members of the National Peace Committee led by Gen. Abdulsalami Abubakar in the Presidential Villa, President Buhari declared that his administration was irrevocably committed to doing all within its powers to break the vicious cycle of corruption, unemployment and insecurity in Nigeria.
“Nigeria has to break this vicious cycle before we can make progress,” the President said, adding that his administration was diligently getting facts and figures pertaining to the nation’s stolen funds, before proceeding to the prosecution of identified culprits.
President Buhari told General Abdulsalami and members of his committee that the Federal Government, under his leadership, will not only ask for the return of stolen funds that have been stashed in foreign banks, but will also ensure that those who stole the funds are put on trial in Nigeria.
The President also said that as part of its actions to address the national problems it inherited, his administration was reorganising Nigeria’s revenue generating institutions.
The President explained that a single treasury account had been established for all Federal revenue to ensure greater probity, transparency and accountability in the collection, disbursement and utilisation of national funds.
“We have really degenerated as a country. Our national institutions, including the military, which did wonderfully on foreign missions in the past, have been compromised. But we are doing something about it. The military is now retraining and morale has been resuscitated.
“As Petroleum Minister under Gen. Olusegun Obasanjo in the 1970s, I could not travel abroad until I had taken a memo to the Federal Executive Council asking for estacode. Now, everybody does what he wants.
“That is why security-wise and economically, we’re in trouble,” President Buhari told his guests, adding that those who have stolen the national wealth “will be in court in a matter of weeks and Nigerians will know those who have short-changed them.”
Gen. Abubakar and members of his committee urged the Federal Government to be guided by the rule of law in its fight against corruption.
Members of the National Peace Committee who accompanied Gen Abubakar on the visit were Bishop Matthew Hassan Kukah, His Eminence, Alhaji Sa’ad Abubakar, the Sultan of Sokoto, Cardinal John Onaiyekan, Pastor Ayo Oritsejafor, President of the Christian Association of Nigeria (CAN) and Archbishop Nicholas Okoh, Primate of the Anglican Church of Nigeria.
Others were Justice Rose Ukeje (rtd), Prof Ameze Guobadia, Vanguard Newspaper Publisher, Sam Amuka, Dame Priscilla Kuye, Senator Ben Obi, Dr. Yunusa Tanko, and Dr Arthur-Martin Aginam.
The National Peace Committee, formed before the 2015 general elections, was granted permission by the President to transform to a National Peace Council.
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.