Connect with us

News

Presidency replies New York Times’ jaundiced report on Nigeria’s economic situation

The Presidency has reacted to a report published in the New York Times criticising the Nigerian economy as facing the worst trajectory in a generation.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday reacted to the report credited to Ruth Maclean and Ismail Auwal’s.

According to the Presidency, the feature story with the title, ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’, published on June 11, reflected the typical predetermined, reductionist, derogatory and denigrating way foreign media establishments reported African countries for several decades.

The Special Adviser on Information and Strategy said because of the ‘misleading’ slant of the report, the government needed to clear up some misconceptions conveyed by the reporters as regards the economic policies of the President Bola Tinubu administration that came into power at the end of May 2023.

He said one significant aspect of the report was that it painted the dire experiences of some Nigerians amid the inflationary spiral of the last year and blamed it all on the policies of the new administration.

He also said the report, based on several interviews, is at best jaundiced, all gloom and doom, as it never mentioned the positive aspects in the same economy as well as the ameliorative policies being implemented by the central and state governments.

Onanuga went on to say that Tinubu did not create the economic problems Nigeria faces today.

According to the presidential aide, Tinubu inherited them.

“As a respected economist in our country once put it, Tinubu inherited a dead economy. The economy was bleeding and needed quick surgery to avoid being plunged into the abyss, as happened in Zimbabwe and Venezuela,” he noted.

Onanuga said this was the background to the policy direction taken by the government in May/June 2023: the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.

According to the presidential aide, for decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens.

Onanuga also alleged that the state oil firm, NNPCL, the sole importer, had amassed trillions of Naira in debts for absorbing the unsustainable subsidy payments in its books.

He said by the time Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023.

“The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure. The previous government had resorted to massive borrowing to cover such costs. Like oil, the exchange rate was also being subsidized by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy.

“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up, and notably Emirate Airlines cut off the Nigerian route,” he said.

Onanuga said to deal with the cancer of public finance, Tinubu on his first day rolled back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.

He said, “After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year.

“The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.

“The inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April. Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production.

“The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price.

“The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.

“With all the plans being executed, inflation, especially food inflation, will soon be tamed.

“Nigeria is not the only country in the world facing a rising cost of living crisis. The USA, too, is contending with a similar crisis, with families finding it hard to make ends meet. US Treasury Secretary Janet Yellen raised this concern recently. Europe is similarly in the throes of a cost-of-living crisis. As those countries are trying to confront the problem, the Tinubu administration is also working hard to overturn the economic problems in Nigeria.

“Our country faced economic difficulties in the past, an experience that has been captured in folk songs. Just like we overcame then, we shall overcome our present difficulties very soon.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

EFCC arraigns forex broker for alleged N2b investment scam in Uyo

The Enugu Zonal Directorate of the Economic and Financial Crimes Commission, EFCC on Friday, July 19, 2024 arraigned one Rufus John Isip, a self-acclaimed forex broker before Justice C. S. Onah of the Federal High Court sitting in Uyo, Akwa Ibom State.

Isip was arraigned alongside his company, ITM-IT Resources Limited on an eight-count charge bordering on fraudulent conversion, money laundering and obtaining by false pretence to the tune of N2, 022, 081, 172 (Two Billion, Twenty-two Million, Eighty-one Thousand, One Hundred and Seventy-two Naira).

Count one of the charge reads: “That you, Rufus John Isip while being the Director of ITM-IT Resources Limited and ITM-IT Resources Limited sometime in December 2020 and May 2021 in Uyo, Akwa Ibom State, within the jurisdiction of the Federal High Court of Nigeria, with intent to defraud, obtained the sum of (431, 331, 172. 00) Four Hundred and Thirty-one Million, Three Hundred and Thirty-one Thousand, One Hundred and Seventy-two kobo from one Michael Okon, the Director of N-Rex Resources Limited under the false pretence that it is an investment in Vandera, an online investment platform, on his behalf, which pretence you knew to be false and thereby committed an offence contrary to Section 1 (1) (a) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 and punishable under Section 1 (3) of the same Act”.

Count eight of the charge reads: “That you, Rufus John Isip while being the Director of ITM-IT Resources Limited and ITM-IT Resources Limited sometime between December 2020 and May 2021 in Uyo, Akwa Ibom State, within the jurisdiction of the Federal High Court of Nigeria, converted the total sum of (N730, 870, 000. 00) Seven Hundred and Thirty Million, Eight Hundred and Seventy Thousand Naira to crypto currency (Bitcoin) and transferred same into your Binance Wallet knowing that the said money formed part of your unlawful act and you thereby committed an offence contrary to Section 15 (2) (d) of the Money Laundering (Prevention and Prohibition) Act, 2011 and punishable under Section 15 (3) (4) of the same Act”.

He pleaded not guilty when the charges were read to him.

In view of his plea, Khamis Mahmud, counsel to the EFCC prayed the court to remand him in EFCC custody on the grounds that “we are still investigating him on other cases”.

The defence counsel, Samson Ewuje however, did not pose any objection.
Justice Onah adjourned the matter to October 14, 2024 for trial and the defendant was remanded at the Uyo Zonal Directorate of the EFCC.

Isip was arrested based on a petition from one Michael George, alleging that he lured him to invest in his online trading platform called Vandora.io. According to the petitioner, the defendant told him that it was more profitable to trade on his platform with a minimum trading capital of $100, 000. 00 (One Hundred Thousand Dollars) and that he would earn more profit if he involved more investors.

The petitioner thereafter invested, reached out to other investors and companies who also invested in the defendant’s phony online trading platform and after 60 days (as agreed) for the investors to start earning their profits, the defendant disappeared into thin air.

Continue Reading

News

EFCC presents more witness against Fayose in alleged N6.9bn fraud trial

The Economic and Financial Crimes Commission, EFCC, on Friday, July 19, 2024, presented its 14th prosecution witness, PW14, Sahibu Salisu, a former Director of Administration and Finance, Office of the National Security Adviser, NSA, in the trial of alleged N6.9bn fraud involving a former governor of Ekiti State, Ayodele Fayose, and his company, Spotless Investment Limited, before Justice Chukujekwu Aneke of the Federal High Court sitting in Ikoyi, Lagos.

The Lagos Zonal Command of the EFCC had, on Tuesday, July 2, 2019, re-arraigned Fayose and Spotless Investment Limited on an 11-count charge bordering on money laundering and stealing to the tune of N6.9bn ( Six Billion Nine Hundred Naira).

The defendants had first been arraigned on October 22, 2018 before Justice Mojisola Olatoregun.

At the resumed sitting on Friday, Salisu told the court how he paid the sum of N200m and another N2billion to a firm, Sylvan MacNamara, for security purposes on the instruction of a former National Security Adviser, Col. Sambo Dasuki (rtd).

Led in evidence by the prosecution counsel, Rotimi Jacobs, SAN, the PW14 , who disclosed that he served as the Director of Administration and Finance between 2011 and 2015, explained the process of payment, saying, “ Once the NSA gave approval for payment, we processed it accordingly. The payments we made were mainly for operational activities.”

When asked to state the roles of the NSA Office , he said: “The roles of the NSA Office are purely about the security of the entire country. And any money expended on security was expected to be retired.”

When shown a document tagged Exhibit S, which was the payment voucher raised for the fund, he said: “It is the payment mandate raised by me as the Director of Administration and Finance on the NSA’s instruction. The first figure was N200 million in favour of Sylvan McNamara and it was paid to the company’s Diamond Bank account. It was the NSA who gave me the account details.”

He said though the NSA did not tell him the purpose for which it was meant, the memo raised and the mandate payment showed it was for physical security infrastructure. “All the payments made from the Office of NSA were supposed to be for security activities and security structures,” he said.

When asked who signed the payment mandate, he said: “I will sign my own part as signatory B. “Thereafter, I would take it to the NSA for final signature, which was approval. Then, I would take the mandate to the Central Bank of Nigeria for payment.”

Giving further testimony on the exhibit S, he said the former NSA and him appended their signatures on it. According to him, the payment was made and there should be retirement, after the purpose for which money was paid for had been completed. He, however, stated that “ Up till I left the office, I could not say whether or not the money was retired.”

When asked about the exhibit S1, which was payment to Sylvan McNamara to the tune of N2 billion dated June 13, 2014, he said: “We paid the amount of N2 billion to Sylvan McNamara on the instruction of the NSA. I was not a signatory to this account, so I am not in a position to know whether it was retired after payment. The NSA and former Permanent Secretary, Mr. Ibrahim Mahe, would be able to know whether it was retired or not”.

Salisu, under cross-examination by the counsel to the first defendant, Ola Olanipekun, SAN, testified that all payments made by the NSA office were made through the bank and they had to raise the mandate before it was done.

When asked if the former NSA told him that the N200m and N2bn were for security purposes, he said: “No. The NSA never informed me that the money was for security purposes and the NSA never complained about this payment.”

During cross-examination by the counsel to the second defendant, Olalekan Ojo, SAN, Salisu testified that he was familiar with financial regulations, adding that “In relation to retirement, once money is given to a recipient, you are supposed to bring the receipt of what you have been asked to supply with a memo attached to it. That is the retirement of such a fund-the financial regulations only apply to public servants.”
According to him, the schedules of his duties did not extend to security matters.

When asked if he knew what made the former NSA to first approve the payment of N200million and subsequently N2 billion for Sylvan McNamara, he said: “As I said earlier, all payments in the office of the NSA are for security purposes”. Also, when asked if he made a statement to the EFCC when he was invited during investigation, he said, “Yes”.

Thereafter, Ojo tendered the statement of the witness and was admitted by the court as exhibit A19. The witness also confirmed to the court that no one ever queried the instructions of the NSA.

Counsel to the first defendant, Ola Olanipekun, SAN, made an application before the court, seeking the permission of the court to allow his client travel abroad on health grounds. There was no objection from the prosecution counsel.

In his ruling, Justice Aneke granted Olanipekun’s request to enable his client travel abroad for medical check.

The case was adjourned to October 18, 2024 for continuation of trial.

Continue Reading

News

NSUK 300-Level student killed in foiled robbery attempt in Akwanga

A 300-level student of Nasarawa State University, Keffi (NSUK), Mustapha Osama, was reportedly killed in a foiled robbery attempt in Akwanga Local Government Area of Nasarawa State.

The incident occurred on Friday night around 8 PM along the Gudi-Akwanga road, according to sources.

Osama, who has been buried in Doma on Saturday morning according to Islamic rites, was said to have been hit by a bullet fired by the gunmen.

A family source confirmed that the deceased was driving when he was struck by the bullet.

The robbery attempt was thwarted by operatives of the Nigeria Police who responded immediately to a distress call, according to the state’s Police Public Relations Officer, DSP Ramhan Nansel.

Continue Reading
Advertisement

Trending