Economy
Buhari ‘Withdraws $462 Million from Excess Crude Account Without NASS Approval’
President Muhammadu Buhari has approved the withdrawal $462 million from the Excess Crude Account (ECA) to the United States for the procurement of 12 Super Tucano aircraft, without a prior approval of the National Assembly, This Day newspaper has reported.
A new letter by the president to the National Assembly, says the U.S. government had given a payment deadline for the aircraft purchase, hence, the need for the hasty approval and payment.
Buhari transmitted the letter to the National Assembly leadership on April 13 and it was received in the Office of the Speaker of the House of Representatives on April 17.
The letter shows that Buhari had already given anticipatory approval for the withdrawal of $496,374,470 (N151 394, 421, 355) from the ECA for the purchase of the aircraft and was only seeking the inclusion of same in the 2018 Appropriation Bill that the National Assembly is currently finalising.
The date on the letter indicated that the President had given approval for the withdrawal of the cash and paid before a public announcement of the approval, ThisDay reports.
The Offices of the senate president, Bukola Saraki, and the speaker of the House of Representatives, Yakubu Dogara, did not respond to requests for comment Monday.
According to ThisDay, Buhari’s letter reads, “I wish to draw the attention of the House of Representatives to the ongoing security emergencies in the country. These challenges were discussed with the state governors and subsequently, at the meeting of the National Economic Council on 14th December, 2017, where a resolution was passed, with the Council approving that up to US$1 billion may be released and utilised from the Excess Crude Account to address the situation.
“Subsequent upon this approval, we are preparing a comprehensive schedule of all the requirements for each of the security services for presentation to the National Assembly for consideration.
“It would be recalled that, for a number of years, Nigeria had been in discussions with the United States Government for the purchase of Super Tucano Aircraft under a direct Government-to-Government arrangement. Recently, approval was finally granted by the United States Government, but with a deadline within which part payment must be made otherwise, the contract would lapse.
“In the expectation that the National Assembly would have no objection to the purchase of this highly specialised aircraft, which is critical to national security, I granted anticipatory approval for the release of US$496,374,470.00. This was paid directly to the treasury of the United States Government.
“I am therefore writing, seeking approval of this House for the sum of US$496,374,470.00 (equivalent to N151,394,421,335.00) to be included in the 2018 Appropriation Bill, which the National Assembly is currently finalising. The balance of the requirements for critical operational equipment is still being collated from the different security services and will be presented in the form of a Supplementary Appropriation Bill, in due course.
“The Honourable Minister of Defence and other appropriate officers will be available to provide further details, as may be required.
“While thanking the Honourable Members for the usual cooperation, please be assured Mr. Speaker, the assurance of my highest regards.”
The letter also proved false several claims that Mr President did not give a final approval before the announcement.
The Minister of Defence, Mansur Dan Ali, while speaking with journalists at the end of a security meeting chaired by the president on April 4, announced that Mr Buhari had approved the release of $1 billion to Nigerian Defence authorities for the purchase of security equipment to fight insecurity in the country.
“Of recent, our leader, President Muhammadu Buhari, gave approval for the purchase of more equipment for the military, worth $1 billion,” he said.
The announcement was greeted by criticism by Nigerians who questioned the federal government for earmarking such huge amount for Boko Haram it claimed has been ‘technically defeated.’
Few days later, Mr Buhari’s aide took turns to defend him, saying that the president cannot approve such fund without go ahead from the National Assembly.
First was the President’s Senior Special Assistant, Media and Publicity, Garba Shehu, who said the approval is not final as it signifies only a stage approval while the process is still ongoing.
Also, the Special Adviser to the President on Media and Publicity, Femi Adesina, said the president would soon communicate the National Assembly on the issue.
The withdrawal is a breach on the Sections 80 (3) and (4) of the 1999 Constitution which states that:
“(3) No moneys shall be withdrawn from any public fund of the Federation, other than the Consolidated Revenue Fund of the Federation, unless the issue of those moneys has been authorized by an Act of the National Assembly.
“(4) No moneys shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly.”
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Business
Budgit: Akwa Ibom Most Creditworthy State in Nigeria
Akwa Ibom State has been identified as Nigeria’s most creditworthy state. This is attributed to its strong fiscal position, allowing it to sustain its debt obligations and borrow further.
The verdict was delivered by Budgit, a Nigerian civic organisation that examines state and national budgets and applies technology for citizen engagement with a view at institutional improvement, in its State of the States Report 2024 Edition themed “Moving Healthcare Delivery from suboptimal to optimal”
According to Budgit, Akwa Ibom came tops in the States Performance on Index C, scoring 0.227. The report declared that states who score high are determined “by their debt-to-revenue ratio, and personnel cost to revenue ratio”.
“In contrast, states that rank lower on Index C need to check their appetite for the acquisition of more debt as they appear to be either above or very close to solvency for debt-to-revenue ratio, foreign debt to total debt, debt service-to-revenue ratio, and personnel cost to revenue ratio.
“The lower ranking states may need to rapidly adopt Public-Private Partnership (PPP) models in delivering public goods due to their relatively poorer credit worthiness.
“The state (Akwa Ibom) owing to its relatively low foreign debt to total debt ratio, ranked the most debt-sustainable state among the 36 states”
For Governor Umo Eno of Akwa Ibom State who has not borrowed any funds either domestic or foreign since assumption of office, this report further validates the government’s position on prudent management of state resources for the greater good of the people.
In the same report, Budgit indicated that regarding health expenditure, the state allocated funds for purchasing health and medical equipment, construction and provision of hospitals and health centres, purchasing drugs, renovating and building new primary healthcare centres and boosting health training.
It then stated “Overall, Akwa Ibom is working towards enhancing its healthcare system having spent about N1billion on primary healthcare and medical equipment. Still, there may be opportunities to increase investment in the sector to fully meet the population’s healthcare needs”
Economy
FG Spends $600m on Fuel Importation Monthly, Says Finance Minister Wale Edun
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has disclosed that the country currently spends $600m on fuel importation monthly.
The minister revealed this during an interview on AIT’s Moneyline programme on Wednesday.
He said that the high import bill is due to neighbouring countries, up to Central Africa, benefiting from the country’s fuel imports.
Edun explained that the situation was the reason President Bola Tinubu removed fuel subsidy, as the country does not know the exact amount of fuel consumed internally.
According to a report by the National Bureau of Statistics (NBS), the country’s petrol import was reduced to an average of one billion litres monthly after President Bola Tinubu removed the fuel subsidy on May 29 last year.
He said, “The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 per cent was only getting four per cent of the value, and basically, they were not benefitting at all. So it was going to be just a few.
“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600m to import fuel every month but the issue here is that all the neighbouring countries are benefitting.
The minister also clarified that the N570bn fund release to state governments was implemented last year December.
He said, “This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. They have received more money. Mr President has charged to ensure food production in the states.”
According to him, the recent decision to raise the maximum borrowing percentage in the Ways and Means from five to 10 per cent does not imply that the Federal Government tends to rely on the Central Bank of Nigeria financing.
He also said the welfare of Nigerians remained a key priority for the current administration, particularly ensuring food availability and affordability.
Edun said, “There is a concerted effort to ensure that we have homegrown food available. In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr President is to drive down those prices now and make food available now.”
He assured all that the measure would not undermine local farmers, as importation would only be permitted after exhausting local supplies.
He said, “So, one of the conditions for this importation will be that everything available locally in the markets or with the millers and so forth has been taken up. We will have auditors that will check that.”
He said these interventions seek to reduce inflation, stabilise exchange rates, and lower interest rates, thereby creating a conducive environment for investment and job creation.
Economy
FG Dismisses Dangote Petroleum As Inferior, Says Refinery Not Yet Licenced, Completed
By Eric Elezuo
A Federal Government of Nigeria petroleum regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), has dismissed petroleum products from the Dangote Refinery as inferior, in the guise of those f4om Watersmith and Aradel, making a case for superiority of imported ones.
The revelation was made by the Chief Executive Officer of NMDPRA, Mr. Farouk Ahmed, while responding to questions from a section of the press, a video of which is trending online, adding that the refinery is only 45% completed, and yet to be licenced for operation by the Nigerian government.
Earlier, the Vice President of Dangote Industries Limited, Devakumar Edwin, had alleged that most fuel products imported into Nigeria are substandard, blaming International Oil Companies (IOCs) of frustrating Dangote’s quest for production.
In the short video, which lasted a little over a minute, Mr. Ahmed debunked theories attached to the functionality of the Dangote Refinery, saying it does not have the capacity to ‘feed’ the nation of its petroleum needs, as it stands. He however, refuted arguments that some elements within the oil and gas sector were trying to scuttle the Dangote Refinery.
A transcript of the NMDPRA’s boss short response is as follows:
“It about concerns of supply of petroleum products acros the nationwide, and the claim that we are trying to scuttle Dangote. That is not so. Dangote Refinery is still in the pre-commissioning stage. It has not been licenced yet. We haven’t licenced them yet. I think they are about 45 per cent completed, or completion rather.
“We cannot rely on one refinery to feed the nation, because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery. That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly.
“Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones,” he stated.
It will be recalled that only last Sunday, the President, Dangote Industries Limited, Aliko Dangote, while hosting senior journalists from across various media concerns, revealed that the Nigeria National Petroleum Company Limited (NNPCL) owns only 7.2% of stakes in the refinery, and not 20 percent as widely circulated. He also revealed that the refinery is set to begin fuel supply in August 2024.
Many stakeholders and respondents have alleged that there’s no love lost between the government of the day and the Dangote Group, and that explains the hiccup situation surrounding the takeoff the $19 billion refinery.
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