Leading Reporters

Numerous things happened last week that warranted news notice. We laboriously compiled a list of some of the most noteworthy national tales from all throughout Nigeria.

DSS arrests ousted CBN Governor, Emefiele

On Friday, officials of the Department of State Security (DSS) arrested the suspended governor of Central Bank of Nigeria, Godwin Emefiele.

He was arrested shortly after President Bola Tinubu directed the office of the Secretary General of the Federation to issue his suspension letter.

According to the president, Emefiele was suspended due to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.

Prior to Emefiele’s suspension, the DSS, on December 7, 2022, in an exparte application with reference no: FHC/ABJ/CS/2255/2022, sought an order to arrest the CBN Governor.

The security agency accused Emefiele of financing terrorism, fraudulent activities and economic crimes of national security dimension.

NLC, TUC suspend planned strike, set date to reconvene

On Monday, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) decided to suspend the strike that was supposed to take place on Wednesday.

The choice was made after a meeting between federal government and organized labor officials on Monday night at the presidential villa to discuss the withdrawal of fuel subsidies.

Thugs attack, flog PDP members at Ogun tribunal premises as security agents watch

On Monday, the Ogun State Election Petition Tribunal sitting in Isabo, Abeokuta commenced hearing of the petition filed by the Peoples Democratic Party (PDP) governorship candidate, Ladi Adebutu, against Dapo Abiodun of the All Progressives Congress (APC).

According to report, both the APC and the PDP mobilised their members to be at the tribunal for solidarity.

However, political thugs stormed the venue of the tribunal with canes, otherwise known as pankere, attacking percieved opponents while police officers and other security agents watched.

Suspected assassins kill UI professor in Ibadan

On Tuesday, a professor at the University of Ibadan identified as Opeyemi Isaac Ajewole was assassinated.

WITHIN NIGERIA gathered that the don was killed while returning to his home in Ibadan’s Moniya area on Monday evening.

It was also learned that his body has been deposited at UI Anatomy.

Tinubu receives Wike, Umahi, Akpabio at Presidential Villa

On Monday, President Bola Tinubu met with ex-governors Nyesom Wike of Rivers State and Dave Umahi of Ebonyi State.

Tinubu also met with Godswill Akpabio, the All Progressives Congress (APC) candidate for the Senate presidency.

The meeting took place at Abuja’s Presidential Villa.

The agenda for the visit was unclear as of press time, but it could be related to the leadership of the 10th Assembly, which will be inaugurated this month.

Tinubu holds first meeting with governors

On Wednesday, President Bola Tinubu met with the state governors at the presidential villa, Abuja.

Despite having a meeting with the governors of his party on Friday, Tinubu’s meeting on Wednesday will be his first with state governors from all political parties.

All governors were present for the meeting, which got underway at 12:36 p.m., with the exception of those from Kaduna, Katsina, Akwa Ibom, Cross River, Ekiti, Sokoto, Borno, Yobe, Gombe, and Katsina states.

Tinubu signs historic electricity bill

On Friday, President Bola Tinubu signed the electricity bill which was passed in July 2022 with the aim of repealing the Electricity and Power Sector Reform Act of 2005. As a result, the new law is now known as the Electricity Act, according to reliable sources.

The Electricity Act serves as a comprehensive legal and institutional framework for guiding the Nigerian Electricity Supply Industry (NESI) during the post-privatization phase. It consolidates all existing legislation related to the electricity supply sector and encourages private sector investments.

G5: Why I will not stop going to Tinubu – Makinde

On Friday, Governor Seyi Makinde of Oyo state said he will not stop going to visit President Bola Tinubu at the Presidential Villa, Aso Rock, regardless of what anyone says.

Makinde stated this at the flag-off of the dualisation of 8.3km Akobo, Ojurin/Odogbo Barracks, Olorunda Abas Junction on Friday.

Makinde said, “As I go to Abuja to see the President, I know some people have been saying that since the inauguration of the new President, I have gone to Aso Rock about four times within a week.

Osun APC: Aregbesola begs for forgiveness, blames devil for quarrel

On Wednesday, ex-Osun governor Rauf Aregbesola has sought forgiveness from members of the All Progressives Congress (APC) Osun Chapter and others who may be offended by his actions in the last four years.

Aregbesola, who was Osun Governor between 2010 to 2018, handed over to Oyetola who served under him as Chief of Staff after winning the 2018 governorship election.

He was opposed to Oyetola’s re-election and faulted the elders of the party for not chastising him (Oyetola) for reversing his policies. News By Withinigeria.com

Nigeria’s NNPC limited led by the former president Muhammadu Buhari spent 4.39 trillion naira ($9.7 billion) on a petrol subsidy last year, latest data from the state-owned firm showed on Friday, a cost the government has blamed for dwindling public finances.

NNPC did not remit funds to federal accounts last year, its data showed, leaving a hole in public finances at a time when the government has been warning that low revenues and large deficits left it unable to stimulate the economy.

The NNPC and the Minister of finance said to borrow to and pay interest on the loan for fuel subsidy, Affirming the President’s stance, Kyari argued that the subsidy payment is no longer tenable as it makes it difficult for the company to fund its core businesses.

He said “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not have not received any payment whatsoever from the Federation.

“That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. That is, when we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cash flow. And that has become very, very difficult and affecting our other operations.

Successive governments in Nigeria have tried and failed to remove or cut the subsidy, a politically sensitive issue in the country of 200 million people.

Nigeria imports nearly all its refined fuels because local refineries were shut due to years of neglect.

Oil production, which has started to recover, has been throttled by crude theft and pipeline vandalism, which means Nigeria is spending more on fuel imports than it is getting from crude oil production.

Finance minister Zainab Ahmed has said the country will keep its costly but popular petrol subsidy until mid-2023 and set aside 3.36 trillion naira ($7.5 bln) to spend on it.

($1 = 453.09 naira) Reuters

In Nigeria, politics has become synonymous with sycophancy and that just played at Transcorp Hilton, as the Kwara Central senator-elect Salihu Mustapha was sighted serving Senator Akpabio meals and water during a Pro-Akpabio committee meeting in Transcorp.

The Kwara-born senator-elect was seen providing unsolicited errands for Senator Akpabio throughout the duration of their meeting to the irritation of others in the meeting.

An eagle eye witness who doesn’t want his name in prints said that Mr. Saliyu Mustapha threw caution to the winds and reduced himself to become Senator Akpabio’s unsolicited errand

‘It was so full of shame watching the senator-elect acting as Akpabio’s personal assistant and personal male servant. Serving him meals and behaving like a tout was quite disgusting. That to me is the height of stupidity, sycophancy and mediocrity. The 10th Assembly will be an interesting one and we’re all out to school this sycophants that you do not get leadership position by acting a tout. Intelligence, creativity and diligence are virtues that would be looked out for in the 10th Senate. People like Mustapha won’t fit in through sycophancy.

It could be recalled that Salihu Mustapha succeeded Senator Dr Yahaya Oloriegbe, the Senate Committee Chairman on Health.

The emergence of Mr Salisu Mustapha was a product of backstabbing and political maneuvers.

However, the jostle for the Senate Presidency has exposed the weakness of the like of Senator-elect Salihu Mustapha who doesn’t seem to understand that decency and intelligence are still part of politics.

” From the look of things, Senator Salisu Mustapha leadership style might reflect a lowered bar when compared with the qualities of leaders Kwara has produced in the National Assembly, hitherto”.

“There’s no gainsaying Kwara Central will lose quality and intelligent representation in the next four years as an arrogant and unequipped Salihu Mustapha would rather continue to run errands for his colleagues than give Kwara Central a quality representation.

Tinubu suspended Emefiele late Friday and directed him to immediately hand over the bank’s Deputy Governor (Operations Directorate) Folashodun Shonubi.

A former Governor of Rivers State Nyesom Wike has applauded President Bola Tinubu’s suspension of Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN).

Tinubu suspended Emefiele late Friday and directed him to immediately hand over the bank’s Deputy Governor (Operations Directorate) Folashodun Shonubi.

While reacting to the development, Wike who was one of the critics of Emefiele’s policies, especially the Naira redesign, described the President’s decision as bold and timely.

The former Rivers State Governor also commanded President Tinubu for approving uniformity in the retirement age and pension of judicial officers in the country, according to a statement by his media team.

He said the President’s action will introduce a new lease of life to the nation’s judiciary.

Wike noted that he and other G5 members are impressed that the President is showing focused and exemplary leadership that will lead the county to prosperity.

President Bola Ahmed Tinubu has suspended the Governor of Central Bank of Nigeria (CBN), Mr Godwin Emefiele, from office with immediate effect.

Willie Bassey, a Director in the Office of the Secretary to the Government of the Federation, announced this in a statement on Friday night.

“This is sequel to the ongoing investigation of his office and the planned reforms in the financial sector of the economy.

“Mr Emefiele has been directed to immediately hand over the affairs of his office to the Deputy Governor (Operations Directorate), who will act as the Central Bank Governor pending the conclusion of investigation and the reforms.”

Tinunu had hinted during the presidential campaign that the CBN naira redesign policy which led to the widespread cash crunch was an attempt to frustrate the general elections.

He, however, boasted that he would win the poll against all odds.

Following Tinubu’s emergence as President, there have been insinuations from several quarters that Emefiele might eventually lose his position under the current administration.

Nigeria spends N11. 35tr on refinery rehabilitation, N13.7tr on subsidy

A report of the Ad-hoc Committee on the State of Refineries in the Country set up by the House of Representatives has revealed that the nation spent about N11. 35 trillion on the rehabilitation of the three refineries from 2010 till date.

The Nigeria Extractive Industries Transparency Initiative (NEITI) also yesterday insisted that the country spent N13.697 trillion on Premium Motor Spirit (PMS) subsidy between 2005 and 2021.

Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, yesterday said the federal government owes the company N2.8 trillion in subsidy payment deficit.

Kyari, who spoke with reporters at the Presidential Villa, Abuja, after a meeting with President Bola Tinubu, said the heavy subsidy burden has starved NNPCL of funds for its core businesses.

The House of Representatives’ report indicated that the nation spent over N4.8 trillion in running the refineries between 2010 to 2020.

The House differed consideration of the report to Thursday, June 1, 2023 to allow the committee make more far reaching recommendations which the House will adopt.

Deputy Speaker, Ahmed Idris Wase who presided over consideration of reports said even though the findings of the committee was far, the recommendations contained in it did not capture the essence for which it was set up.

Wase said the Committee was take a day to take another look at its findings and make far reaching recommendations that will help the new government in fashioning out ways of addressing the challenge identified.

The report said that the nation’s three refineries became unproductive from year 2010.

It also said “that from year 2010 to 2019, the nation’s refineries were performing sub-optimally with an annual combined capacity of less than 30 per cent. In the year 2019, the NNPC obtained an executive approval and shutdown the refineries for comprehensive rehabilitation to restore the plants to a maximum of 90 per cent nameplate company utilization”.

The total losses from the non-functional refineries since year 2010 is put at N366.52 billion.

The total cost of operations and running the refineries from 2010 to 2020 is put at N4.8 trillion. The Port Harcourt Refinery Company (PHRC) carried out rehabilitation projects over a period of seven years ranging from 2013 to 2019 valued at about N12.16 billion. The Warri Refinery and Petrochemical Company (WRPC) carried out rehabilitation projects over a period of six years ranging from 2014 to 2019 valued at about N28.22 billion. The Kaduna Refinery and Petrochemical Company (KRPC) also carried out rehabilitation works over the period under review valued at about N2.27 billion.

According to the report, the total cost of rehabilitation for the three refineries based on the submissions of the NNPC from year 2013 to 2019 is put at N42.65 billion.

The Committee recommended continuous legislative oversight of the ongoing rehabilitation works at the Port Harcourt and Warri refineries to ensure that the desired results is achieved.

It also recommend that the NNPC should ensure the immediate award of contract for the rehabilitation of the Kaduna Refinery and also take full advantage of the Petroleum Industry Act to fast track the rehabilitation of the refineries and ensure that the refineries are restored to a maximum 90% nameplate utilization.

NEITI yesterday commended President Bola Tinubu for taking the bold political step to phase out the subsidy regime.

A press statement which Deputy Director/Head Communications & Stakeholders Management, Mrs. Obiageli Onuorah issued in Abuja said, “From the NEITI reports, between 2005 to 2021, the country spent $74.3862 billion which translates to N13.697 trillion”.

She said the NEITI report breakdown of these figures showed that in 2005, the government paid $2.6Billion (N351Billion) as subsidy. In 2006 & 2007, it paid $1.99Billion & $2.176Billion (N257Billion & N272Billion) respectively.

Commending Tinubu, NEITI said, it has “welcomed with high expectations the political will, courage and sincerity of purpose demonstrated by President Bola Ahmed Tinubu to remove fuel subsidy right from his inaugural speech.

“A statement from NEITI House, Abuja described the move as a positive statement by the administration to decisively implement the findings and recommendations contained in the NEITI reports.

“This bold step is required to block leakages, grow revenues and advance the ongoing reforms in the oil, gas and mining industries.”

NEITI recalled that its recommendations for the removal of fuel subsidies have remained a persistent request since 2006 given the agency’s concerns about the huge financial burden that the subsidy regime imposed on the growth of the Nigerian economy over the years.

The report further pointed out that subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52billion (N2.11Trillion).

NEITI noted that a sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.336billion (N654Billion) in 2012. The decline in subsidy expenditure continued in 2016 and 2017 to as low as $473million (N154billion) in 2017.

According to the statement, the reduction was short-lived as the payments skyrocketed to over $3.88billion (N1.190trillion) in 2018 and 2021 to $3.575Billion (N1.43trillion).

By these figures, the organization said, Nigeria expended an average of 805.7billion Naira annually, 67.1billion monthly or N2.2billion daily.

The NEITI data, in addition, showed that the amount expended on subsidies from 2005 to 2021 is equivalent to the entire budget for health, education, agriculture and defence in the last 5 years. The sum also equals the capital expenditure for 10 years between 2011-2020. Subsidy payment reached its peak in 2011 ($ 13.52 Billion or N2.11 Trillion). NEITI explained that it was during this time (2011) that fuel subsidies dwarfed allocations to all critical areas of the economy.

NEITI ‘s persistent calls for the removal of petroleum subsidies were informed by the fact that the ways and means of funding the expenditure over these years relied more on federation accounts funds, the federal government and sometimes from external borrowing with negative consequences on government overall revenue profiles.

NEITI was also concerned that the consequences of funding subsidies have resulted in poor development of the downstream sector, declining GDP growth, rise in product theft, pipeline vandalism, environmental pollution and undue pressure on foreign exchange. Other challenges imposed on the economy were naira depreciation, low employment generation, the declining balance of payments and worsening national debt.

In a policy advisory released by the NEITI House in late 2022 to drive home the urgency to remove subsidy and re-submitted earlier in the year 2023, NEITI recommended eight steps to manage subsidy removal when and if the decision is made. These include the urgency to strengthen the implementation of the Petroleum Industry Act (PIA) as a whole and not in parts.

NEITI also underlined the importance of unveiling the implementation of people-oriented welfare programs to provide relief for the poor and vulnerable; advised on priority attention to be paid to the rehabilitation of the nation’s four refineries currently ongoing while encouraging private investments in establishing new refineries. Other policy considerations are that government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the oil and gas sector and conduct appropriate stakeholders’ consultations, engagements and enlightenment.

While the details of the implementation of the policy are being awaited, NEITI is set to commission a special research on the actual consumption of PMS in Nigeria. The study is to establish precisely what the nation is consuming. NEITI’s view remains that the data on the country’s actual consumption is unknown resulting in huge revenue losses to the nation through subsidy payments based on estimates.

NEITI particularly welcomed President Bola Tinubu’s position that the revenues saved from subsidy should be channeled to education, health, roads and other critical infrastructure,

The policy advisory also conducted a survey of the pump price of petrol across the country outside the major cities of Lagos & Abuja during the era of petroleum subsidy.

In the North West, North East and North Central states a litre of petrol averages N270.00, N265.80 and N 269.00 respectively. The southern states pay slightly lower with the South-South paying N232.50, South East N235.20k while the South West states pay an average of N250.00. Major marketers and prices at the state capitals stood largely between N169.90 to N190.00.

NEITI’s study on the petroleum subsidy also established the prices of Petroleum products across Nigeria’s borders and within the West and East African region. In Senegal, a litre of fuel sells for 635.91k, while in Guinea, Sierra-Leone, Togo, Cameroun and the Republic of Benin it costs N609.30k, N506.96K, N 497.78K, N449.24 and N462.23k respectively. It is on record that the supply to some of these Nigerian neighbours is largely the smuggled subsidized petroleum products from Nigeria.

NEITI’s position which is based on the data in its reports has also been strengthened by similar empirical studies and recommendations by reputable international organisations such as the World Bank and our global body, the Extractive Industries Transparency Initiative (NEITI).

NEITI, therefore, calls on the regulatory institutions to stand firm and tackle artificial scarcity, hoarding and other man-made obstacles being created at the moment to frustrate the implementation of subsidy removal.

With its removal, subsidy payments for petroleum products with its attendant insecurity in the country, due to smuggling etc will be reduced.

Kyari said: “Since the provision of the N6 trillion in 2022, and N3.7 trillion in 2023, we have not received any payment whatsoever from the federation.

“That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC.

“When we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cash flow and that has become very difficult and affecting our other operations.

“We’re not able to keep some of this cash to invest in our core businesses and the result is that it can be a huge challenge for the company.

“We have highlighted this severally to the government that they must compensate NNPC; they must pay back the NNPC for the money that we have spent on the subsidy.

“Today, the country doesn’t have the money to pay for subsidy. We can’t afford it and they are not able to pay our bill. That comes to how much the federation owes NNPC now.

“We are waiting for them to settle up to N2.8 trillion of NNPC’s cashflow from the subsidy regime and we can’t continue to build this.

“Fortunately also, by virtue of the provisions of the law and the Appropriation Act 2023, it is no longer available for that funding and we are very convinced today that the country can no longer fund this subsidy bill and they will not be able to pay NNPC.

“Therefore, we are happy and pleased to hear Mr. President’s commitment to the elimination of this subsidy because they can’t afford it anymore.”

With petrol already selling far above the official pump price in parts of the country, Kyari said steps will be taken to ensure customers are not exploited.

“We will take necessary steps to ensure that we recover our costs from the market and also be mindful of the fact that a situation like this can lead to the exploitation of customers.

“We’re also working with the regulator, whose head is here with me to see how we can cut any such excessive management of greed.

“This will be contained by the virtue of provisions of the law, the Authority or the Nigerian Petroleum Midstream and Downstream Regulatory Authority. And then the competition agency – they’ll play their part.

“We think this is a very commendable step taken by Mr. President to bring it to effect – the provisions of the law.”

Kyari explained that petrol was to be priced at its commercial value six months after the enactment of the Petroleum Industry Act.

That meant that by February 17, 2022, there should have been no subsidy on petrol.

He recalled that the Federal Government extended the terminal date till June this year.

“But the provision (of subsidy) in 2022 and 2023 (budgets) has not been funded by the government. A greater part of it is supported by the cash flow from NNPC’s other businesses.

“Therefore, even though there is provision to the end of June, there is no financing even from the start.

“Therefore, since you can’t pay, you cannot expect NNPC to continue to carry it.

“This has been the position that the NNPC has taken and what the President simply said is obeying the law and acknowledging the realities that the federation can no longer pay NNPC for the burden of subsidy that we are carrying,” Kyari said.

He noted that the queues were caused by panic buying.

The NNPCL GMD said: “Typically, consumers will rush to the fuel station to fill their tanks and that is why you’re seeing these queues.

“Also, marketers would like to see what exactly this means. ‘How are we going to sell the product if the subsidy on PMS is removed?’

“The combination of the two is what you are seeing – the obvious dislocation of distribution. And we believe that this will go away very, very quickly as you’re aware also.

“The PIA made it very clear that the price of petroleum must be at the market value. But, our country decided to provide for subsidy in the 2022 Appropriation Act and also half year in 2023.

“Therefore, we as a commercial company established under the Petroleum Act, are doing this simply as business, delivering value to a supplier of last resort by the law, but at the cost to the federation. And that cost includes the cost of subsidy,” he said.

Ahmed said there will be no price cap on petroleum products.

He said the government would ensure no marketer takes advantage of Nigerians.

“With the removal of subsidy as pronounced by Mr President, this has opened the floodgate for any market or company that wants to import PMS. And we are ready to issue licenses for them. At least that will open the competition that will reduce the burden.

“And let me assure Nigerians that the NMDRA and the Federal Competition and Consumer Protection Commission will make sure that consumers are not taken advantage of. We intend to work together on this.”

Ahmed, who said the Federal Government will not cap the oil price, called on marketers to open their petrol stations and depots to the public.

He said they will soon get the government’s directive from the NNPCL.

“I cannot tell you the exact price because the market is deregulated. Therefore, it is going to be based on delivery.

“The NNPCL will tell all the companies their transfer price, which will translate into what the pump price will be,” the CEO explained.

To lighten the burden on NNPCL, being the sole petrol importer, import licenses will be issued to interested persons.

Ahmed said the criteria for importing fuel will be similar to importing kerosene and diesel.

The phrase “ways and means” started before anyone using it today. It originated from the 17th century British Parliament and referred to “the provision of revenue to meet national expenditure requirements.”

The phrase was always used by Nigerian economists and finance experts to explain debt and inflation, but it became popular when former President Muhammadu Buhari’s administration began to see it as the last resort.

For starters, “ways and means” in the Nigerian context occurs when the Federal Government obtains loans from the Central Bank of Nigeria (CBN). Yes, the Federal Government is allowed to borrow from the apex bank through “ways and means” to meet short-term needs or emergencies. This explains why the CBN is known as “lender of last resort.”

However, such borrowing is different from going to the World Bank, the International Monetary Fund (IMF) or China for loans. Borrowing via ways and means must be temporary and should only occur “in respect of temporary deficiency of budget revenue,” according to Section 38 (1) of the CBN Act. This means that the CBN can only lend to the Federal Government when the latter has a temporary revenue shortfall.

Abuse of ways and means

However, outgone President Muhammadu Buhari abused the ways and means advances. In fact, he violated the CBN Act.

Section 38 (2) of the CBN Act makes it clear that “the total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government.” However, Buhari overshot the five percent ceiling and grew ways and means from N856 billion to N23.8 trillion, representing 2,635 percent in seven years.

In 2017, actual revenue was N2.7 trillion but ways and means stood at N1,1 trillion, representing 37.2 percent of the previous year’s revenue (N2.95 trillion). This is against the spirit of Section 38(2) of the CBN Act.

In the following year, 2018, actual revenue stood at N3.87 trillion whereas ways and means was estimated at N2.1 trillion,

Ordinarily, Buhari’s administration should not have taken more than N135 billion ways and means, which was five percent of N2.7 trillion revenue realised in 2017. However, Buhari took ways and means which was 77.8 percent of the previous year’s revenue.

In 2019, actual revenue was N4.12 trillion while ways and means stood at N3.3 trillion, indicating 85.27 percent of the 2018 revenue.

In 2020, actual revenue was N4.04 trillion, with ways and means standing at N4.4 trillion, representing 107 percent of the previous year’s revenue, meaning that Buhari borrowed 7 percent more than the revenue realised in 2019 from the CBN.

In 2021, actual revenue was N 4.64 trillion while ways and means was N4.3 trillion, representing 106.4 percent of the 2020 revenue. In 2022, actual revenue was N6,49 trillion whereas ways and means advances stood at N6.4 trillion, representing 138 percent of the 2021 revenue.

Are “ways and means” loans?

There have been several arguments as to whether ways and means should be described as loan or something else. Many have contended that it should not be considered as part of Nigeria’s loan profile.

But, let us examine the meaning of loan? Investopedia, a business and investment dictionary, defines a loan as “a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount.”

Hence, ways and means are clearly loans that should be repaid. In fact, Section 38 (2) says “all advances made pursuant to this section shall be repaid as soon as possible…” The section also says that it should be repaid with interest.

However, outgone President Buhari smartly got the approval of the Senate and securitised the ways and means. These loans will thus be converted into long-term bonds and be sold to the investors, including you. How smart can that be?

Implications

There are several implications of this. First, it is a violation of the Nigerian laws, which must not be condoned. It means the Federal Government or any president in power can violate the laws and get away with it.

Two, ways and means increases inflation by raising liquidity in money or capital market. Money market is a market where short-term instruments are traded. Examples of such instruments are treasury bills and mutual funds. On the other hand, the capital market is a market dealing with long-term instruments such as bonds. It also means a market where bonds and stocks are traded.

By securitising ways and means, rather than pay back to the CBN, the Federal Government simply puts too much money in the money or capital market. For instance, when you advertise a bond of N11 trillion value, investors will trade them -pay for them. This naturally increases liquidity in the economy.

It makes more money available in the economy, thereby fuelling inflation. The World Bank has also accentuated this position, stressing that “between 2020 and 2021, inflation left about eight million more Nigerians below the poverty line by increasing the total number of poor people to about 90 million.”

In other words, the CBN is part of the party that has worsened inflation in Nigeria in the last six years. The ordinary man in the street feels the pains of rising inflation rates in the form of high cost of living.

More so, it increases Nigeria’s debt servicing burden because each loan taken must be repaid with interest – however low. This leaves little resources for infrastructure and development programmes that will benefit the common man.

Also, it leaves Nigeria with little capacity to innovate. If the president can easily run to the CBN for loans without repaying, the capacity to leverage revenue avenues will reduce. This makes it hard for any government in power to fund programmes that can improve livelihoods.

So, what should the new sheriff in town, President Bola Tinubu, do with ways and means? Simple, devise more proactive ways of raising revenue and give the CBN some space. Source: Dataphyte

A new Comptroller General in Acting Capacity will be taking over the affairs of Immigration on Tuesday, LeadingReporters can authoritatively report. This is following the official exit of Mr Isa Jere who has reached the mandatory age of retirement.

In a letter exclusively obtained by this medium, Mrs Adepoju Carol Wura-Ola who is the most senior Deputy Comptroller General has been mandated to take charge, following the board approval which was signed by Ja’afaru Ahmed, the Secretary to the board.

Mrs Carol will be the first Yoruba woman in the history of the paramilitary agency to attain such height. We gathered that a Yoruba man who was supposed to have headed the place few years ago died in mysterious circumstances, which positioned another Northerner to take over.

Sources within the agency disclose that the new Acting CG has just few months to also retire but will likely get an extension of office from President Bola Ahmed Tinubu in sentiments to the Yoruba not heading the position since its creation.