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President Buhari to probe Jonathan, Diezani over $6.9m campaign stages

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ABUJA-THE ongoing probe of the immediate past administration by President Muhammadu Buhari is to beam its searchlight on the alleged purchase of three mobile stages, costing $6.9m, by former President Goodluck Jonathan and two of his officials, a Presidency source has said.

According to a document, which was obtained from the Presidency on Saturday, the deal, which is now a subject of investigation, was allegedly carried out by Jonathan; his Chief Security Officer, Mr. Gordon Obuah; and former Minister of Petroleum, Mrs. Diezani Alison-Madueke.

Diezani Alison-Madueke

Diezani Alison-Madueke and Goodluck Jonathan

The fund was said to have been withdrawn from one of the numerous accounts of the Nigerian National Petroleum Corporation.

The $6.9m (about N1.37bn) was said to have been withdrawn for the purpose of buying three pieces of 40-feet mobile stages for use by Jonathan during mass public speaking events.

According to the document, apart from the fact that the sum for the stages was “incredibly inflated”, there is currently no evidence that the stages were bought since the money was withdrawn.

The document read, “While the cost of mobile stages ranges in sizes and designs, only outlandish rock star musicians in Europe and the US spend hundreds of thousands on their huge stages way bigger than the 40-feet stages.

“Even then, those musicians and superstars would not pay over $2m per stage, according to industry sources.

“The process of procurement of the three mobile stages was neither known to extant Nigerian laws and due process regulations nor were the offices of the Auditor-General and the Accountant-General in the know, according to the investigators.”

It added that the phony purchase was carried out late 2011, a few months after Jonathan won the presidential election for a full term after having completed the term of the late President Umaru Yar’Adua.

Jonathan’s CSO was said to have initiated a memo to the former President on October 17, 2011, asking for the purchase of three mobile stages.

He was reported to have written in that memo to Jonathan that memo referred to “my earlier discussion with Your Excellency on the security implication of your public appearances and your subsequent directive on the need to procure a secured presidential platform.”

The Presidency source said on the same day, without any financial advice or purchase order reviews, the former President approved the request to buy the three stages and minuted the memo to the then Minister for Petroleum Resources.

In his minute, Jonathan was said to have written, “We have discussed this, please deal.”

According to the document, on the same October 17, the Senior Special Assistant to the President on Administrative Matters, Mr. Matt Aikhionbere, did another letter on the strength of the President’s approval requesting the minister to take action on the request to purchase the stages for $6.9m.

It added, “By the next month, an NNPC payment voucher, number 3840336, was already in place, revealing that the money was released.

“NNPC directed that the money be taken from one of its accounts in New York CITIBANK with sort code CITIUS 33, and Routing number 021000089.

“It was first routed from the US bank to an NNPC account in Zenith Bank account number 5000026593, Maitama branch in Abuja, from where the money was sent to a private account.

“The sum of $6.9m was then credited to a Sterling Bank account of one J. Marine Logistics Limited, Abuja, a company investigators said was registered by Obuah.

“The CSO himself, according to investigators, has not been able to show proof of the purchase and his memo irked his bosses at the SSS that he took the initiative to write requesting for the stages, an action which officials said was way above his pay grade.”

The document added that it was not the duty or responsibility of the CSO to make the determination on that purchase as he was meant to have informed the service, which will then review the situation and act accordingly.

It added that the $6.9miilion in question was promptly paid on Nov. 29, 2011 into a private account belonging to the former CSO.

“The former President approved the procurement of the mobile platforms without due process and bypassing the Procurement Act; neither was there an appropriation in the 2011 budget for such facility,” the document quoted investigators as saying.

It added that neither the then Minister of Finance nor the Director-General of the Budget Office was aware of the deal.

“Investigators say this is just one of the several instances, where the Jonathan administration used secret NNPC accounts to fund many questionable projects and for alleged personal financial aggrandisement.

“Already, the CSO has been questioned over his role and activities in the Jonathan Presidency. It will be recalled that he was arrested, detained, questioned and later released.

Attempts to get the National Publicity Secretary of the Peoples Democratic Party, Chief Olisa Metuh, to react to the allegation against the former President did not succeed as calls to his mobile telephone did not go through.

He had yet to respond to an SMS sent to his mobile phone as of the time of filing this report.

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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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