A group of opposition parties – the Coalition of United Political Party (CUPP), has sued the Federal Government, President Muhammadu Buhari and others over move by the government to borrow $22.7billion.
The CUPP, in a suit filed before the Federal High Court, Abuja, through one of its members, Action People’s Party (APP), is praying the court to among others; restrain the Federal Government from further engaging in any form of borrowing.
In the suit filed, yesterday by APP’s lawyer, Chibuzor Ezike, the party particularly wants the court to set aside or nullify any approval for external loan granted the Federal Government by the National Assembly.
Other defendants in the suit, marked: FHC/ABJ/CS/2020 include that Attorney-General of the Federation (AGF), the Minister of Finance and the National Assembly.
Part of the reliefs are: A declaration that it is unlawful and unconstitutional for the National Assembly to offer to undertake any guarantee for the requested external loan made by the President when the terms and conditions of the said loan has not been duly laid before, considered and approved by the NASS as mandatorily stipulated by the law.
The party is equally praying the court to declare as unconstitutional, unlawful and ultra vires the executive powers of the President to borrow external loan and participate in the negotiation and acquisition of any external loan without proper legislative framework by the NASS.
No date has been fixed for the hearing of the suit.
In a statement, yesterday, CUPP’s spokesman, Imo Ugochinyere, said his group has also written to all the lenders to halt the loan request in view of the pending legal action.
He said “The loan request is riddled with project lopsidedness, lack of financial prudence, secrecy, plan to use loan for frivolous projects, over costing of projects, corruption, misapplication and incompetence.
“The Senate leadership has clearly and unambiguously shown it is not on the side of the people and it is not representing the Nigerian people but their selfish interest.
“There unpatriotic stand on national issues and lack of vision has become all the more apparent and have turned the Senate into a chamber filled by political Allelluya boys.
“Fellow Nigerians, the exchange rate of the Dollars due to certain vagaries, including gross mismanagement of our economy is now chasing N400 to a Dollar.
“This means that at this rate, the $22.7billion foreign loan will be the equivalent N9.8trillion.
“This is more than the entire 2019 budget and just a little less than the entire 2020 budget.
“How can a government borrow its entire budget yet citizens are in doubt as to the contents of the loan package,” he said.
However, the Minister of Finance, Mrs. Zainab Ahmed, yesterday, disclosed that the Federal Government has suspended its $22.7billion external borrowing plans due to current realities in the global economic landscape.
Speaking in Abuja, at the 2020 International Conference on the Nigerian Commodities Market, organized by the Securities and Exchange Commission (SEC), Ahmed stated that the government would not go ahead with the borrowing programme even if it secures the approval of the National Assembly.
The finance minister explained that the decision of the government to suspend the borrowing was due to the fact that market indices do not support external borrowings at the moment.
She said, “The parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.
“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approvals we will defer it and watch the market and go out only when the timing is right.”
She explained that the Federal Government was not relenting on its plans to diversify the country’s economy, noting that unfolding events of the past few months, the Coronavirus pandemic and the oil price war, had further reinforced the resolve to diversify the national economy.
She disclosed that the current challenges in the global economy had brought to the fore the need for the country to develop a non-oil attitude to everything.
According to her, the Federal Government planned to prioritize expenditure in favour of major capital expenditures that would have greater impact, and which would create job and visibility and also enhance the ease of doing business in the country.
She noted that expenditures that are not critical must be deferred to a later date when things become more normal.
The minister said, “Several national plans, programmes and projects have been directed at diversifying the production and revenue structures of our economy.
PDP Inaugurates 15 Convention Sub-Committees –
Wike Chairs Special Duties Committee
6,000 Delegates Expected To Attend
The Peoples’ Democratic Party (PDP) National Convention Committee, yesterday, in Abuja inaugurated 15 sub-committees for its national convention scheduled for October 30.
The sub-committees as read by the Bayelsa State Governor, Senator Duoye Diri, include the National Convention Organizing Committee, chaired by Adamawa State Governor, Hon Ahmadu Fintiri.
Others are Constitutional Amendment Committee, chaired by Akwa lbom Governor, Udom Emmanuel; Zoning Committee chaired by Enugu State Governor, Ifeanyi Ugwuanyi; Screening Committee, chaired by former Minister of Justice, Mohammed Adoke.
Sub-committees and their chairmen also inaugurated were Screening Appeal Committee chaired by Senator Ike Ekweremadu; Special Duties Committee chaired by Rivers State Governor, Chief Nyesom Wike; Accreditation Committee chaired by Delta State Governor, Dr Ifeanyi Okowa; and Security Committee chaired by former Inspector General of Police, Solomon Arase.
The Electoral (Statutory) Committee, with Adamawa Governor, Hon Ahmadu Fintiri as the chairman; Publicity Committee chaired by Edo State Governor, Godwin Obaseki; and Venue Committee, chaired by Bauchi State Governor, Senator Bala Mohammed are also among them.
Others include: Welfare and Entertainment Committee with Mariya Waziri as chairperson; Transportation Committee, with Ibrahim Dankwambo as chairman; and Contact and Mobilization Committee with Taraba Governor, Darius Ishaku as chairman.
The rest are, Protocol Committee with Sen. Biodun Olujimi as chairperson; Medical Committee — Nuhu Zagbayi; and Secretariat Committee — Umaru Ibrahim Tsauri.
Inaugurating the sub-committees, Fintiri expressed belief that the October convention would be successful and lead PDP to victory in 2023.
Fintiri said that the leaders and members of the sub-committees were carefully selected to organize a credible convention for the party.
The Adamawa governor urged them to make the necessary sacrifices to deliver the best convention to the party.
Fintiri, fielding questions from newsmen after the inauguration, said that by PDP’s new constitution, over 6,000 delegates were expected at the convention.
“We are fully prepared for that. We are expecting everybody in every ward that is a delegate to attend the convention.”
He said that the sub-committees had been given directions and they were expected to go back, adequately prepare and submit their report to the main committee for approval.
On which part of the party’s Constitution would be amended, Fintiri said he could not pre-empt the Constitution Sub-Committee, but allow them do their job.
On how far the zoning committee had gone after the one-week appeal he gave them, last week, Fintiri said the committee was in a meeting in Enugu carrying out its responsibilities.
“You can see the party is working, and it is a turning point for all of us,” Fintiri said.
According to him, the leadership tussle in the party has largely been addressed even as he came short of saying the PDP has moved on from the crisis.
He said, “We are moving on. I am the chairman of the convention committee and you can see that we are doing our work. Everybody is happy and participating. I don’t see any crisis in this party.”
The party’s national elective convention is slated for October 30 and 31 this year in Abuja.
RSG Recommits To Building Agric Sector
The Rivers State Government has said that it was committed to building the agricultural sector and utilise the huge potentials the state has for the benefit of Rivers people.
The state Governor, Chief Nyesom Wike, stated this while speaking at a seminar of the Norwegian Seafood Council at Hotel Presidential in Port Harcourt, yesterday.
Represented by his Deputy, Dr. Ipalibo Harry Banigo, Wike said, “In the face of dwindling oil prices, and the need to diversify the economy, we see a lot of potentials in the seafood industry especially post Covid-19. This is an important industry for creating employment opportunities, generate revenue and boost economic activities in our area”.
Wike, who said that Rivers State was one of the coastal states in the Niger Delta endowed with valuable seafood resources, revealed that Norway and Nigeria have had a long history of relationship and trade.
According to the governor, “Rivers State, known as the oil and gas hub of Nigeria, is open to do business in all sectors including maritime and welcome more partnerships and investments from stakeholders who wish to do business in the state”.
Wike further said, “In the effort to grow our economy, the Government of Rivers State supports making laws that work for us all, by putting laws in place to improve society’s efficiency. Hence, the assent and signing of the VAT law”.
The Rivers State chief executive, who commended the Norwegian Seafood Council for conducting the seminar in the state, stressed that stock fish was enjoyed across Rivers State by all groups, including low and high earners, while both men and women are involved in the sales in our markets.
“I believe this seminar will examine the many advantages and gains of seafood as well as anticipated support from the Norwegian Embassy in the areas of encouraging deep sea fishing, trawlers, good storage for sea products, training to grow and nurture fish production standard, fish ponds and open fish farms, use of technology and encouragement, support to artisan farmers.
“We believe that the gains for removing stock fish and stock fish heads from the list of items not valid for the FX windows far outweigh the losses if any.
“For all the reasons stated above and many more, we anticipate Federal Government and the CBN’s removal of stock fish and stock fish heads from the list of items not valid for the Central Bank of Nigeria FX window”, Wike further stressed.
In his remarks, the Ambassador Royal Norwegian Embassy, Knut Lein, who described the history of stock fish in Nigeria and Norway as fascinating, said it creates a bond between both countries, and expressed the desire to foster increased cooperation, build on bilateral relations and inform the government of Norway about the opportunities in the country.
He said, “together we could create lots of jobs”, insisting that “doing what we can to promote stock fish trade was a win-win for all of us”.
Highlights of the occasion were the presentation of papers by the Director Africa, Norwegian Seafood Council, Mr. Trond Kostveit, and other stakeholders.
The Norwegian Ambassador, Mr. Knut Lein, had earlier paid a courtesy call on Governor Nyesom Wike, at the Government House in Port Harcourt, where the state chief executive expressed the state government’s desire to continue to partner with the Norwegian Embassy to facilitate economy growth and development of both countries, and the state in particular.
Encourage States To Harness Own Resources For Dev, Wike Tasks FG
The Rivers State Governor, Chief Nyesom Wike, has said Nigeria must encourage federating states to harness their resources and generate revenues, including Value Added Tax (VAT) to advance their development.
He also stressed that it was baffling to note that Rivers State was not included among states to benefit from any of the projects to be executed with the fresh loan that the Federal Government was seeking to obtain from the World Bank.
Wike made the observation when the Managing Director and Editor-in-Chief of the SUN (Newspaper) Publishing Limited, Mr Onuoha Ukeh, led a delegation to present letter of nomination to him as the SUN Man of the Year 2020 Award at Government House, Port Harcourt, last Monday.
The Rivers State governor observed that there were mounted attempts to frustrate federating states like Rivers, to actualise the constitutional provisions that empower them to harness their resources and revenues, particularly VAT.
The governor decried the situation where the legality of states collecting VAT was not considered on the merit of the law by some public commentators, including state executives, rather, they were politicising it and looking at it from prism of ethnicity and religion.
According to Wike, what the FIRS was doing was illegal, and could be likened to robbing some states to pay others.
“You don’t even need to be a lawyer to know that VAT is not in Items 58 and 59 of the Second Schedule of the 1999 Constitution as amended. Everybody knows that. It is not even in the Concurrent List. Therefore, it falls under the Residual List. It is not arguable. That yesterday, nothing happened, does not mean that today, nothing will happen or tomorrow, something will not happen.
“Nigeria should encourage states to be strong enough to have resources to develop themselves. We are in a federal system where we are practicing unitary system. Everybody at the end of the month will run to Abuja to share money. Nobody comes back to the state to think, how do I develop my state.”
He explained that the contest against the collection of Valued Added Tax (VAT) was started by Lagos State, which had sued the Federal Government at the Supreme Court.
According to him, Rivers State only avoided their pitfall by suing the Federal Inland Revenue Service (FIRS), which is an agency of the Federal Government that was illegally collecting the tax in the state.
“The issue of VAT did not start from Rivers State. It started in Lagos State when Lagos State challenged it in Supreme Court. Unfortunately, the Supreme Court said you (Lagos) shouldn’t have sued the Federal Government. All you would have done was to sue the agency.”
The governor observed that rather than commend Rivers State Government for seeking to entrench fiscal federalism and constitutionalism, a particular state governor had threatened that the judgement of the court that declared that states, and not FIRS, are entitled to collect VAT within their jurisdiction, will not stand.
He urged those demanding for a brothers’ keeper consideration to first, appreciate the position of the law and situate it rightly.
“Some people say, ‘be your brother’s keeper’. I have no problem in being my brother’s keeper, but why not come out and say, let us tell ourselves the simple truth: as it is provided in the law, who is the person responsible to collect the VAT?
“When you agree to that, that it is the state, then, we can sit down to look at the different problems of states. And not to say ‘be your brother’s keeper’ while you’re doing an illegal thing, in disobeying what the law says you should not do.”
Wike stated that it was sheer act of discrimination for the Federal Government not to include Rivers State as one of the states that will benefit from projects for which it was seeking fresh foreign loans to execute.
“Look at the money that Federal Government has gone to borrow from the World Bank. Of all the projects, in all the states, Federal Government did not include Rivers State.
“Look at the list of projects that states will benefit from this money they’re borrowing from the World Bank that they have sent to National Assembly for approval, the only state that is not benefitting is Rivers State”.
He further noted, “It is the prerogative of Mr President; if he says he does not like Rivers State, if the ruling party says they don’t like Rivers State, I won’t kill myself. But leave the one that the law says I should be the one to collect so that I will be able to develop my own state.”
Speaking further, Wike explained that beyond the provision of infrastructure, his administration was seeking a law that would provide comfortable accommodation for judicial officers on retirement.
The reason, he said, was to ensure that, while in service, the judicial officers can concentrate on their jobs without cutting corners, and avoid corrupt practices.
In his remarks, the Managing Director and Editor-in-Chief of the SUN (Newspaper) Publishing Limited, Mr Onuoha Ukeh, said the SUN Man of the Year 2020 Award was the flagship of award the company.
According to him, Wike was unanimously selected for his remarkable contributions to the socio-economic development of Nigeria and promotion of fiscal federalism with his position on VAT, which would help in the restructuring of Nigeria.
“Today, His Excellency has guided Nigeria to true federalism with the issue of VAT. Knowing what fiscal federalism should be, His Excellency went to court to challenge the collection of VAT, and the court stated that actually the states should collect VAT. And that is laying the foundation for true federalism and fiscal federalism”, he said.
Ukeh commended Wike for his sterling performance in office and infrastructural revolution taking place in Rivers State.
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