The Action Democratic Party (ADP) has mandated the National Assembly to wade into the subsidy controversy and probe it.
In a statement issued in Lagos last Saturday by its Lagos spokesman, Prince Adelaja Adeoye, the ADP said that the discrepancies in the subsidy claim have further created tensions, controversies and doubts in the minds of Nigerians.
While he explained in details some of the issues that have emerged from the process, Adeoye called on the Senate President, Dr Bukola Saraki to urgently set up a committee to look into the subsidy controversy.
According to ADP, “The current fuel scarcity that has left Nigerians in a sorry state, in this festive season, has revealed monumental fraud in the Nigerian National Petroleum Corporation (NNPC), through its involvement in secret payment of subsidy.
“This is of huge significance because, the Buhari’s government had told Nigerians that subsidy was removed in early 2016,” the party said.
The party further said that in the wake of the present fuel scarcity, the President Muhammadu Buhari-led All Progressives Congress government had blamed the problem on major oil marketers, whom it alleged were asking for an increase in the pump price of fuel.
However, the oil marketers later countered the allegation, maintaining that their problem with the government, was far from the alleged demand for pump price increase; and went on to reveal that they were being owed huge sum by the Federal Government in subsidy payment.
The revelation, immediately prompted an outcry from Nigerians who demanded to know what subsidy the marketers were talking about, taking into account that the Buhari government had told the nation, in early 2016, that fuel subsidy has been removed, a development, which led to the increase in pump price from N87 to N145.
The party said that in its explanation in May, 2016, through Vice President, Prof Yemi Osinbajo, the Federal Government said that “First, the real issue is not a removal of subsidy. At $40 a barrel, there isn’t much of a subsidy to remove.
“We realised that we were left with only one option. This was to allow independent marketers and any Nigerian entity to source their own foreign exchange and import fuel. We expect that foreign exchange will be sourced at an average of about N285 to the dollar, (current interbank rate). They would then be restricted to selling at a price between N135 and N145 per litre.
What this meant was that marketers were importing fuel and selling as dictated by the market forces, with little government regulation to avoid excessive pricing of the sales of fuel to the Nigerian masses”.
Also speaking with Nigerians in October, 2016, in an interactive session in Berlin, Buhari said, “There are things that are happening, and if such had happened before, there would have been major riot, like the removal of subsidy on fuel.”
These are the reasons ADP said it was in total disbelief to hear that there was still anything called subsidy, associated with fuel.
“In a swift reaction, and to cover this fraud or probably to silence Nigerians who kept demanding for an explanation of this sudden subsidy claim,” the party noted that “Osinbajo told the nation that NNPC and not the Federal Government is responsible for the subsidy payment.
“NNPC and not the Federal Government pays for the fuel subsidy that has emerged with the N171 landing cost as against the official retail price of N145,” the ADP quoted Osinbajo as saying.
ADP said “This new claim has further angered Nigerians who couldn’t figure how NNPC became responsible for subsidy payment and not the Federal Government, more so that as an agency of government, NNPC can only spend money within the budget. Meanwhile, there has not been any budget for subsidy for two years running.
“Now to avoid the probing questions of Nigerians, NNPC GMD, Maikanti Baru, while responding to questions at Aso Rock Villa, after the Friday prayers, said that Buhari authorized the payment of subsidy for fuel.
“The practice has been that every monies collected by all Federal Government agencies and parastatals are mandatorily paid into the Treasury Single Account (TSA), from where approval is given for withdrawal, by same agencies in line with their budget. What this means is that NNPC has either not been paying into TSA or has been short paying. We must remember that just recently, a House committee discovered the sum of N50billion in NNPC secret account, outside the TSA. The NNPC was quick to say, Buhari ordered it to put the N50billion into such secret account. This is besides the $25billion contract it awarded without due process, which it also claimed, Buhari authorised,” the ADP argued.
The ADP, therefore, called on the Senate to do the needful by investigating the NNPC’s subsidy fraud, to save Nigeria from the monumental fraud supervised by Baru and his team at NNPC.
Minister Blames Judiciary For Prisons’ Congestion
The Minister of Interior, Ogbeni Rauf Aregbesola, has blamed the congestion in Nigeria’s correctional facilities on the country’s Judiciary, explaining that the Nigerian Correctional Service (NCOS) was not allowed by law to reject inmates sentenced to correctional centres or to release them.
Aregbesola, represented by Special Adviser on Nigerian Correctional Service, Suleiman Tala, stated this while delivering a paper at a policy advocacy conference entitled, “Decongestion of Correctional Centres: Status Quo”, organised as part of the 60th-anniversary celebration of the Order of The Knights of St Mulumba, Nigeria, Lagos Metropolitan Council, which was held in Lagos, adding that the primary responsibility of NCOS is to hold offenders pending the adjudication of their cases before a law court.
“It is important for the public to be aware that the NCOS and the Ministry of Interior are trying their best to tackle the issue from different angles as the length of time the inmates stay at the custodian centre is not determined by NCOS but by the justice system. I may not be able to reiterate exactly what the challenges are with the judiciary, however, as it affects the NCOS we are doing all we can not to compromise the traditional responsibility of the NCOS,” he stated.
Representing the Inspector General of Police, Baba Usman, Lagos State Commissioner of Police, Hakeem Odumosu, accepted that the police contribute to the congestion but gave his reasons.
“Inconsistence of the appearance of police officers to give evidence at trials has been identified as one of the alleged causes of prolonging trial but the IGP has mandated officers must attend court cases as at when due. The police are being hampered by a high level of distrust between the citizens and their police institution,” he stated.
Also at the conference, Lagos State Catholic Archbishop, Alfred Adewale Martins, who was represented by Rev. Paschal Uwaezeapu, stated that decongestion of the prisons would continue to be a matter as long as the government has refused to fix the country.
“The prison would continue to be congested if we don’t fix the society. As long as our society is a place where everybody takes for himself without considering the neighbour then our prison would continue to be congested. If we need to fix the prison we need to fix the family. These prisoners come from a family. We need to fix the education system also. We need to promote justice, without all these, the prison will soon overflow,” he stated.
Meanwhile, the Lagos Metropolitan Grand Knight, KSM William Adebisi, urged the government to declare a state of emergency on the congestion of prisons.
“The government needs to take the matter seriously as it affects the health of the inmates, economy of the company and behavioural change of the inmates,” he stated.
FG Seeks $3bn With Eurobond Offer
The Federal Government has announced plans for a Eurobond issuance in the International Capital Market (ICM) to raise $3billion.
The Debt Management Office (DMO) said, yesterday, that Virtual meetings with investors have been scheduled for today, and September 20, 2021.
It said, “In order to avail local investors the opportunity to invest in the Eurobonds, meetings will also be held with local investors.
“This is the first time local investors will be included in the Roadshows, and this is one of the reasons why a Nigerian Bookrunner (Chapel Hill Denham Advisory Services Ltd) was appointed as one of the Transaction Advisers.
“Through the Eurobond issuance, Nigeria is expected to raise up to $3billion but no more than $6.2billion.”
According to the DMO, the issuance for which all statutory approvals have been received, would be to implement the New External Borrowing in the 2021 Appropriation Act and that “Proceeds are for the financing of various projects in the Act.”
The agency gave further insight, saying, “In addition to providing funding to part-finance the deficit in the 2021 Appropriation Act, the issuance of Eurobonds by Nigeria benefits the country in many other strategic ways; amongst which are: 1. It is an inflow of foreign exchange, leading to an increase in External Reserves.
“External Reserves help support the Naira Exchange Rate, and Nigeria’s sovereign rating.
“When Nigeria raises funds externally, through Eurobonds, it frees up space in the domestic market for private sector and sub-national borrowers. In effect, it helps the sovereign not to crowd out other borrowers in the domestic market.
“The issuance of Eurobonds by Nigeria has opened up opportunities for Nigeria’s corporate sector notably banks, to issue Eurobonds to raise capital in the ICM.
“By so doing, their capital base has been strengthened to provide banking services whilst also meeting regulatory requirements. Nigeria has a sovereign yield curve in the ICM, extending up to 30 years.
“The local listing of Nigeria’s Eurobonds on the Nigerian Exchange Ltd. and the FMDQ Securities Exchange Ltd., have increased the range of products on these two (2) exchanges and their respective market capitalization.
“Overall, Eurobond issuances by Nigeria and the investor meetings that precede the pricing have provided a strong global platform for Nigeria to tell its own story and opportunities available in Nigeria for investors.”
The Transaction Advisers appointed by Nigeria for the issuance were: International Bookrunners – JP Morgan, Citigroup Global Markets Limited; Joint Lead Managers -Standard Chartered Bank and Goldman Sachs; Nigerian Bookrunner – Chapel Hill Denham Advisory Services Ltd; Financial Adviser – FSDH Merchant Bank Ltd; while White & Case LLP, was appointed International Legal Adviser; and Banwo&Ighodalo would serve as Nigerian Legal Adviser.
The last time Nigeria accessed the ICM was November 2018.
Insecurity: Put Nigeria First, FG Tells Media
The Federal Government has tasked the media to put Nigeria first in the reportage of the country’s activities, particularly the fight against insecurity.
The Minister of Information and Culture, Alhaji Lai Mohammed, made the call in Abuja during the ceremony of the renaming of the News Agency of Nigeria (NAN) Headquarters Building after the former Managing Director and Board Chairman of NAN, late Wada Maida.
Mohammed said it may seem obvious and trite, but for any professional, including a journalist in Nigeria to be able to carry out his or her responsibility at all, the nation must first exist, in peace.
“In other words, if the country goes down, all professionals and everybody go down. It is that stark, and this is why I want to use this platform to appeal to our media to put Nigeria first”, Mohammed said.
Speaking further, the minister said if one picked up most newspapers, watched most television stations or listened to most radio stations in the country, one will be right to think Nigeria is a country at war.
While acknowledging that there were challenges in the country, especially in the area of security, Mohammed, however, said the Buhari administration had not only acknowledged the challenges, it is earnestly tackling the challenges.
“A good example is the decisive manner in which our gallant troops are tackling the banditry in the North-West or the way they are combating the terrorists in the North-East. Our security agencies have also successfully tackled the separatists in the South-East and South-West and the militants in the South-South. Unfortunately, these efforts have only been perfunctorily reflected in the reportage of the security challenges that we face. This is not only unfair, especially to those who are sacrificing their lives to keep us safe, it is unpatriotic.
“To illustrate the damage this non-acknowledgement of the efforts of the security agencies pose to the country, let me tell you what transpired when I recently hosted some members of the Nigerians in Diaspora Organisation (NIDO) UK Chapter, who visited me in my office here in Abuja. They said some of their colleagues who would have come to Nigeria for their programme tagged,‘A Week in and For Nigeria’ during the month of July, did not come out of fear of the security situation in Nigeria. However, those who made the trip said they travelled to their hometowns across the country and returned to Abuja safely. If Nigerians in the diaspora can be afraid to come to their country, imagine how foreigners, including investors and tourists, will feel about coming to the country.
“Whatever image problem Nigeria is suffering from today is mostly due to the unflattering portrayal of the country by the country’s media.
“Even when some media organisations report fake news, they never have the decency to retract such stories and apologise. They simply move on as if nothing has happened.
“We are not saying the media should not report on the security challenges we face. All we are saying is: Be fair and report accurately the efforts being made by the state and federal governments to tackle the challenges. Even if you don’t want to encourage the men and women in uniform fighting to keep us safe, please don’t discourage them with negative reporting. The security challenges we face today will be successfully tackled and Nigeria will not cease to exist, despite the antics of naysayers”, Mohammed added.
Mohammed congratulated the family, friends and associates of the late Maida for the great and much-deserved honour done to him.
He commended the management and staff of the NAN for coming up with the idea to immortalise the late Maida.
“The Federal Government’s decision to approve the proposal was not difficult, upon realising the role played by Alhaji Wada in making NAN the respectable agency that it is today. A man who was everything from Zonal Editor to Foreign Correspondent to Editor-in-Chief to Managing Director to Board Chairman, a man who built this glistening NAN headquarters edifice deserves to be immortalised by the organisation he served so well in his lifetime”, Mohammed stated.
Mohammed prayed that God will continue to comfort and strengthen the family of Maida, even as he prayed that the soul of the departed continues to rest in peace.
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