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Buhari ‘Withdraws $462 Million from Excess Crude Account Without NASS Approval’

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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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Economy

My Policy on Fuel Subsidy Removal Yielding Results, Says Tinubu

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President Bola Tinubu has declared that his fuel subsidy removal policy is yielding the desired results, pointing out that prices are gradually declining.

The President also asserted that investors are increasingly showing interest in the Nigerian economy, a development he attributed to the removal of fuel subsidies, a policy introduced on 29th May 2023.

Tinubu made these remarks on Monday while inaugurating the National Youth Council at the Presidential Villa, Abuja.

Addressing the youths, Tinubu emphasised that while politicians will always be politicians, true leadership is about fostering development that benefits future generations.

He urged Nigerian youths to take advantage of the opportunities being created by the government, particularly in the ICT sector, to contribute to national development.

Tinubu said: “I have listened to you. Today is not for long speeches. I just want to reassure you that you are the hope of this country. Everything rests on your shoulders. Every decision I have taken is about you and the future.

“When we removed the fuel subsidy, we were securing a future for generations yet unborn. Where is the investment? Where is the infrastructure? When you hear many professionals say they want to ‘JAPA’, it is because prosperity is not widespread at home. If we create opportunities and empower our people, they will have no reason to leave.

“This is your country to develop, build, and prosper in. The government is fully committed to you. Take this seriously. You can criticise politicians all you want, but ultimately, politics is about development and securing a future for the next generation.

“At the beginning, it seemed uncertain, difficult, and even hopeless. It felt like drawing water from a dry well. But today, the economy is turning a corner. Prices are falling, confidence in our economy is improving, and investors are showing interest. Technology is advancing, and you have opportunities before you.”

The President reminded the youths that they have a crucial role in advancing the nation’s development.

“It is all in your hands. My role is to help navigate, push, and implement key programmes to clear the path for you. But it is up to you to seize the moment. Look me in the eye and tell me what you think—whether it is right or wrong—and offer suggestions. We will consider them as long as they contribute to the prosperity of this country.

“I assure you that we will do everything possible to make Nigeria a better place for you, but we cannot do it alone. You represent over 60 per cent of our population. You are the heartbeat of our nation, and I hope you take this opportunity very seriously,” he said.

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Economy

Naira Gains over Dollar for Three Straight Days in Parallel FX Market

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The Naira recorded three consecutive days of appreciation against the dollar in the parallel foreign exchange market, ending the week on a high note on Friday.

According to Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, Abuja, the Naira strengthened to N1,565 per dollar on Friday, up from N1,570 on Thursday.

On a day-to-day basis, the Naira gained N5 against the dollar compared to the N1,570 traded on Thursday.

In the last three days, the Naira has gained N15 against the dollar in the black market.

In contrast, in the official market, the Naira continued to depreciate as of Thursday, according to data from the Central Bank of Nigeria.

The apex bank’s exchange rate data showed that the Naira fell to N1,507.88 per dollar on Thursday from N1,504.30 on Wednesday.

Overall, exchange rate movements across FX markets showed that the Naira ended the week with mixed sentiments of losses and gains against other foreign currencies.

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Economy

NASS Passes Tinubu’s N54.99tr 2025 Budget Proposal

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The National Assembly, on Thursday passed, the N54.99trillion 2025 Appropriation Bill.

The bill was passed separately by the Senate and the House of Representatives.

A breakdown of the budget showed N3.645trillion for statutory transfers, N14.317trillion for debt servicing, N13.64trillion for recurrent expenditure and N23.963trillion capital expenditure (development fund), with fiscal deficit put at N13.08trn.

The Deficit-to-Gross domestic product (GDP) Ratio was put at 1.52%.

Last Week, President Bola Tinubu increased the 2025 fiscal year budget from an initial N49.7trillion to N54.2trillion, seeking approval from the Senate and the House of Representatives.

Chairman of the House Committee on Appropriations, Abubakar Bichi, while presenting the bill for consideration, stated that the committee met with the Presidential Economic Planning team to further discuss revenue projections and expenditure for the 2025 Appropriation Bill.

According to him, the 2025 Appropriation Bill was presented late, compared to that of 2024.

He urged the executive to present subsequent budgets to the National Assembly not later than three months before the next financial year, to maintain the January to December budget cycle.

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