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$418m Paris Club Refund Deductions: Govs Objection Baseless, Malami Insists

Published

3 years ago

August 12, 2022

The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, yesterday, declared that state governors have no basis to complain about deductions from the Paris Club refund paid to consultants they hired.
The AGF said that the noise making arising from the Governors’ Forum was not only unjustified, but a clear case of absence of defense.
Speaking when he featured on the Ministerial Media Briefing organized by the Presidential Communications Team at the Presidential Villa, Abuja, the minister reminded the governors that they created the liability whose payment they have also indemnified.
Fielding question on why despite a presidential directive to suspend the deduction from the Paris Club refund, he has not deemed it fit to enforce the directive as some deductions were been said to be made, he affirmed that when the Nigeria Governors Forum (NGF) made a request for the refund, one of the component was the settlement of the consultants who were engaged by the forum.
Malami recalled that when the refund was paid to the states, the governors initially made to states, part payment was also made to the consultants..
However, he said the governors later decided to stop payment while asking for an out of court settlement.
The minister said this resulted to request to the president to make the payment, a request he said, was then passed on to the Office of the AGF for legal opinion.
Malami noted that after being subjected to necessary checks; it was found out that there was no element of fraud involved.
According to him, the indemnity of the governors was also sought and received.
He said, “On the issue of Paris Club that is raised. You mentioned that there exists a presidential directive that payments should not be made, and then, in breach of that position directive, payments were perhaps made, maybe arising from the conspiracy between the Attorney General of the Federation and Minister of Justice payments have been made.
“I think you need to be informed first, as to the antecedents, prevailing circumstances and how the liability arose but one thing I’m happy to state, which I want to reiterate having stated same earlier, is the fact that the Office of the Attorney General and the government of President Muhammadu Buhari has not indeed incurred any major judgment debt for the period of seven years it has been on.
“Now, coming to the antecedent background of the Paris Club. The liability or judgement debts related to Paris Club was indeed a liability created by the governor’s forum in their own right.”
Continuing, he explained, “The Governor’s Forum comprising of all the governors sat down commonly agreed on the engagement of consultant to provide certain services for them relating to the recovery of the Paris Club. So, it was the governor’s forum under the federal government in the first place that engaged the consultant.
“Two, when eventually, successes were recorded associated with the refund, associated with Paris Club, the governors collectively and individually presented a request to the Federal Government for the fund. And among the components of the claim presented for the consideration of the Federal Government was a component related to the payment of these consultants that are now constituting the subject of contention. So, the implication of that is that the governors in their own right recognized the consultant, recognised their claim and presented such claim to the Federal Government.
“Three, when the claims were eventually processed and paid to the governor’s forum. They indeed on their own, without the intervention of the Federal Government took steps to make part payments to the consultants, acknowledging their liability over same.
“And then four, when eventually they made such payments at a point they took a decision to stop the payment. The consultants instituted is an action in court against the governors forum. And what happened in court? They submitted to consent judgement. They asked and urged the court to allow them settle out of court.
“The court granted them an opportunity to settle. They commit terms of settlement in writing, they signed the terms of settlement, agreeing and conceding that such payments be made to the consultant.
“And then five, thereafter, the Federal Government under the administration of President Muhammadu Buhari was requested to comply with the judgement and effect payment.
“The President passed all the requests of the governors to the Office of the Attorney General for consideration. I suggested to the President on the face value of the judgement and the undertones associated with the consultancy services.
“It was my opinion, the same treatment we meted to P&ID, that let us subject this claim, the consent judgement to investigation by the agencies of the government. Mr. President approved, I directed the EFCC and DSS to look into these claims and report back to the office of the Attorney General.
“And these agencies reported and concluded that there are no problem undertone associated with it. The government may continue to sanction the payment dependent. Now, that was the background.
“Even at that, we took further steps after receiving these reports from the EFCC, among others, to demand for indemnity from the governors. You, as a forum, you incurred this liability, as a forum you submitted to consent judgement. We have subjected this claim to investigation and we have a report, but even at that, we need independent indemnity from you, establishing that it is with your consent and understanding that these payments should be made, in writing.
“And I’m happy to report to you that the governors individually and collectively provided the desired indemnity to the Office of the Attorney General, conceding, agreeing and submitting that the payment should be made.
“Yes, and that was the ground and the basis on which we eventually took a decision by advising the president that the payment should be made. And then along the line, there was a change of leadership of the governors’ forum. And all the noise making that is now being generated arising from the governors forum is not only unjustified, but indeed, a clear case of absence of defense.
“But one other point of interest you may wish to note is the fact that the new leadership of the governors’ forum instituted an action, even when the Federal Government was indeed acting on the basis of the judgement of the Supreme Court. They now embarked on a fresh legal suit, challenging the payment, challenging the previous agreement, challenging the indemnity and the court dismissed the application. Their case was dismissed by the Federal High Court.
“So, that is the foundation and I’m happy to report one, that the judgement and contention was a judgement that was obtained long before the Attorney General, Abubakar Malami came into office, long before the administration of President Muhammadu Buhari came into office.
“It was a product of their own doing and they had it is submitted to judicial proceeding, judgement was entered against them. They have committed to the payment of the money, they have on their own indeed effected part payment. I closed my case and I will not like to answer any further question on that.”

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INEC To Unveil New Party Registration Portal As Applications Hit 129

Published

2 days ago

July 11, 2025

The Tide

The Independent National Electoral Commission (INEC) has announced that it has now received a total of 129 applications from associations seeking registration as political parties.

The update was provided during the commission’s regular weekly meeting held in Abuja, yesterday.

According to a statement signed by the National Commissioner and Chairman of the Information and Voter Education Committee, Sam Olumekun, seven new applications were submitted within the past week, adding to the previous number.

“At its regular weekly meeting held today, Thursday 10th July 2025, the commission received a further update on additional requests from associations seeking registration as political parties.

“Since last week, seven more applications have been received, bringing the total number so far to 129. All the requests are being processed,” the commission stated.

The commission revealed the introduction of a new digital platform for political party registration. The platform is part of the Party Financial Reporting and Auditing System and aims to streamline the registration process.

Olumekun disclosed that final testing of the portal would be completed within the next week.

“INEC also plans to release comprehensive guidelines to help associations file their applications using the new system.

“Unlike the manual method used in previous registration, the Commission is introducing a political party registration portal, which is a module in our Party Financial Reporting and Auditing System.

“This will make the process faster and seamless. In the next week, the commission will conclude the final testing of the portal before deployment.

“Thereafter, the next step for associations that meet the requirements to proceed to the application stage will be announced. The commission will also issue guidelines to facilitate the filing of applications using the PFRAS,” the statement added.

In the meantime, the list of new associations that have submitted applications has been made available to the public on INEC’s website and other official platforms.

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Tinubu Signs Four Tax Reform Bills Into Law …Says Nigeria Open For Business

Published

2 weeks ago

June 27, 2025

The Tide

President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.

The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.

The ceremony took place at the Presidential Villa, yesterday.

The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.

The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.

“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.

Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.

Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”

Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”

He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.

“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.

According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”

He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.

The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.

However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.

At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.

They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.

After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.

By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.

In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.

“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.

“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.

He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.

The President added, “We are not just signing tax bills but rewriting the social contract.

“We are not there yet, but we are firmly on the road.”

Featured

Senate Issues 10-Day Ultimatum As NNPCL Dodges ?210trn Audit Hearing

Published

2 weeks ago

June 27, 2025

The Tide

The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.

Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.

However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.

Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.

A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.

It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.

The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.

“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.

“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”

But lawmakers rejected the request.

The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.

“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.

“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.

Other lawmakers echoed similar frustrations.

Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.

The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.

Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.

Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”

Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.

The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.

Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.

The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.