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World Bank Chief Warns About Dangers In Petrol Subsidies, Multiple Exchange Rates

David Malpass speaks in front of the World Bank (Photo by Andrew CABALLERO-REYNOLDS / AFP)ANDREW CABALLERO-REYNOLDS/AFP/Getty Images

The World Bank President Group Chief, David Malpass, has warned Nigeria on the dangers in keeping petroleum subsidies amid global economic shocks and maintaining multiple exchange rate.

Speaking today, April 21 at the ongoing International Monetary Fund (IMF) spring meetings in Washington DC, the Worl Bank boss said that keeping subsidies and multiple exchange rates have a huge cost deficit to the economy, adding that subsidies benefit the rich more.

Malpass expressed concern that Nigeria would starve itself of funds for infrastructural development if it keeps up with unsustainable subsidies, saying: “we have encouraged the Nigerian government to re-think subsidies and multiple exchange rate systems in its foreign exchange management. Multiple exchange rate system is complicated and not as effective as it would be on a stable exchange rate.”

He encouraged Nigerian authorities to work towards having a stable exchange rate, which he stressed, would encourage fiscal discipline and increase investment inflows into the country.

“Nigeria trade inflows are distorted with multiple exchange rates, but a stable exchange rate will improve it. Businesses and investment inflows will grow Nigerian economy alongside a stable exchange rate,” he said.

This is not the first time the Washington-based lender has warned Nigeria’s economic managers of the complications associated with keeping subsidies and multiple exchange rates.

Just last week, the World Bank, in its bi-annual report known as African Pulse, stated that increasing fuel subsidy was putting the Nigerian economy at a high risk as subsidy payments could significantly impact public finance and pose debt sustainability concerns.

Apart from the World Bank, many analysts had warned the government over dangers of keeping the “unsustainable” subsidy.

A former chairman of the Major Oil Marketers Association of Nigeria, (MOMAN), Adetunji Oyebanji, said that subsidy is a misplaced priority by the government.

Oyebanji said: “There is no argument to justify subsidy payment, because we are spending away the funds for our infrastructural development. Labour does not have any justifiable reason to cow government to keep subsidies.”

Subsidy payments for the fiscal year of 2022 have seen the Nigerian government pass a supplementary budget of N4 trillion to that effect.

Analysts knowledgeable about the economy say the government must do away with subsidy.

“This is the part that led to the collapse of the Venezuelan economy. It is this subsidy that brought down that economy. Go and check the Venezuela economy, and it is an oil-producing country,” an economist and chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, told The ICIR.

“Labour leaders and all of that, I am appealing to them to be a bit more realistic to their position and engage a lot more. We have to think about sustaining this economy. I mean, look at the fiscal position of the economy. Look at the amount of debt that we are accumulating and look at the amount of debt service.

“We can have engagement about the cost of governance generally, but that should not allow the continuous bleeding of the economy. The Nigeria Labour Congress said last week that it had listed key issues that should be addressed before the Nigerian National Petroleum Corporation (NNPC) will adjust the pump price of premium motor spirit (petrol),” Yusuf added.

The immediate past chairman of the Society of Petroleum Engineers, Joe Nwakwue, said that the petrol subsidy had become a tumour on the Nigerian economy, arguing that it must be removed for the economy to survive.

Also, the International Monetary Fund (IMF) has expressed a deep worry about subsidy impact on the economy.

The subsidy, IMF said, serves as “a fiscal drain.”

The Fund, in a recent report, described the petrol subsidy as a major incentive to petrol smuggling. “The PMS subsidy is seen as one of the incentives for petrol smuggling to neighbouring countries as smugglers take advantage of arbitrage,” it stated.

An energy economist, Adeola Adenikinju, said, “The maintenance of subsidy has brought us to a level where we have completely mismanaged the downstream sector.

“It has had a negative impact on our foreign reserves, exchange rate, government revenue, and the capacity of the Federal Government to perform its responsibilities.”

Notably, labour unions have been at daggers drawn with the Federal Government, with many meetings between the two parties over removal of subsidies suffering a deadlock.

The union officials insisted that before the subsidy removal, the NNPC must fix the country’s refineries in order to cut down on the importation of refined petroleum products.

The NNPC currently has four idle refineries, two in Port Harcourt (PHRC), and one each in Kaduna (KRPC) and Warri (WRPC).

Since 2019, none of the refineries has been able to refine a drop of fuel, hence the country relies entirely on imports to satisfy demands.

Source: ICIR.

Insecurity: Gov El-Rufai Talks Too Much, National Security Adviser Laments

NSA, Babagana Monguno

The National Security Adviser (NSA), retired Major General Babagana Munguno has lamented that Kaduna State Governor, Nasir El-Rufai talks too much about the insecurity, thereby giving out secret information about the whereabouts of terrorists to terrorist, especially those who kidnapped train passengers recently.

Munguno, who spoke to news men today, April 21, shortly after the security council meeting at the Presidential villa, Abuja, said that the governor’s claim that the military failed to act despite intelligence reports made available to them early enough on the hideout of bandits and planned attacks could compromise the security situation as the bandits could relocate to other destinations if they knew that their current hideout was known.

“When you start talking too much, you give away a lot. Now, even if they say we know where they are, that in itself is already a problem.”

Munguno said that once such comment was made, whether true or not, the bandits might relocate to another location.

He said that it was better sometimes to just keep silence instead of talking and giving out vital information like El-Rufai did, adding that for Governor El-Rufai to say: “we know who they are, where they are” was in itself dangerous.

Corruption: Presidency Explains Why Ex Govs Dariye, Nyame, Others Were Pardoned

Joshua Dariye
The Presidency has explained why the former governors of Plateau State, Joshua Dariye; Taraba State, Jolly Nyame and others were pardoned after they were convicted of corruption by court of competent jurisdiction.
A statement today, April 20, by a Presidential spokesman, Malam Garba Shehu said that the two ex governors were pardoned on the ground of life threatening health challenges.
The statement said that in pardoning the ex convicts by the Council of State, many legal and administrative processes were followed.
The statement said that the whole processes followed the report of the Presidential Advisory Committee on the Prerogative of Mercy (PACPM), culminating in a process begun by the convicts and others concerned in line with the Constitution.
“Section 175 (1) of the Constitution of the Federal Republic of Nigeria 1999(as amended) enjoins the President to exercise his constitutional powers “to grant any person concerned with or convicted of any offence created by an Act of the National Assembly a pardon, either free or subject to lawful conditions; to grant respite, either for an indefinite or a specified period of the execution of any punishment imposed on that person for such an offence; substitute a less severe form of punishment imposed on that person for such an offence or remit the whole or any part of any punishment imposed on the person for such an offence or of penalty or forfeiture otherwise due to the state on account of such an offence.”
“The Federal Government constituted the PACPM on August 28th, 2018 with the mandate of assisting the President in the discharge of his constitutional responsibility of granting pardon/clemency to convicts or ex-convicts in deserving cases.
“The Committee filed its first report in March 2020 and reconvened on Thursday, 28 September 2021 to attend to the myriad of pending applications for presidential pardon and clemency from Nigerians across the country.
“These accrued cases followed the established process of applying for pardon or clemency first to the Correctional Service (formerly Nigerian Prison Service), which must certify claims made, be they of life-threatening ill-health, (as in the cases of Governors Dariye, Nyame; John Joshua Uloh, Engr Umar Bamalli, Sa’adu Ayinla Alanamu, Charles Ihenatu, Akinwumi Ajayi and tens of others making the approved list of 159; or such cases arising from remorse and good conduct or plainly on the basis of compassion among other stated criteria.
“The PACPM members, under the Attorney General and Minister of Justice, followed up the recommendations with a visit to selected Correctional Centers in several states of the Federation to “critically appraise and identify potential cases of convicts and ex-convicts before recommending them for presidential pardon/clemency and reduced sentences.
“In this round of the exercise, 412 inmates were interviewed and 162 were recommended to the Council of State by the President in the exercise of his powers, pursuant to Section 175 (2) which requires that he should carry out this function after being “advised by the Council.”
The statement said that the presentation to the Council of States meeting last week, attended by former Presidents, a former Chief Justice and 36 States and the FCT along the lines of its statutory membership, was a culmination of a rigorous process, regulated and guided by the law which was not, in any way designed to achieve a political purpose.
The Presidency agreed however, that it is natural that the cases of the ex-governors-two among many- would excite political analysts, coming at a time when elections are in the air, but stressed that the President would at the same time have been seen as insensitive and cruel by most people if  he had ignored very compelling cases recommended for pardon made to him, because someone is a former Governor.
Saying that even Governors have the right to be treated fairly under the law, the Presidency assured Nigerians that the exercise was not intended to achieve a political end or to send a revisionist message on the relentless war against corruption which President Buhari has been leading by personal examples.

APC Choses Indirect Primary To Pick Candidates


The ruling All Progressives Congress (APC) has decided to pick its presidential and gubernatorial candidates ahead of the 2023 general elections through indirect primary elections.
The National Executive Council (NEC) of the party, at an emergency meeting today, April 20 in Abuja, ruled out the consensus method in the selection of candidates.
The emergency meeting was presided over by the National chairman, Senator Abdullahi Adamu with President Muhammadu Buhari in attendance.
Details later.

PDP Heads To Destruction By Abandoning Article 72  (c) On Zoning –Presidential Aspirant

A Presidential aspirant on the platform of the Peoples Democratic Party (PDP), Orefo Nnamdi Onochie, has said that the party is heading to self destruction by abandoning article 72 (c) of the party’s constitution which has to do with zoning.

In a statement today, April 19, Onochie said that the abandonment of the artcle of PDP constitution by the national leadership, which provided zoning and rotation of positions and offices in the party, especially the presidential ticket among the geopolitical zones of the country, will kill the party.

According to him, a few elites within the PDP have hijacked and dominated the party and are determined to destroy it and mangle the destiny of Nigeria if their personal political ambitions and interests are not accepted.

He regretted that despite several statements issued to the national leadership of the PDP and also stringent efforts made by his co-aspirants to forestall the jettisoning of the Article 7.2(c) as contained in the party’s constitution, the party defiled owned rules.

“This situation imperils the party and Nigeria. It is in the light of that situation that I have withdrawn my membership of the party.”

The presidential hopeful said that he will at a later date inform Nigerians of the political party he chooses to sustain his presidential ambition, after dumping the PDP.

Onochie assured all Nigerians and his ardent supporters that his overriding interest is the preservation of Nigeria’s national ethos, unity and territorial integrity.

Buhari Wonders Why People Allow Themselves To Be Used To Destabilize Own Country

President Muhammadu Buhari has wondered why people would allow themselves to be used by others to destabilize their own country.

He made it clear that his government would not allow any individual or group no matter how powerful, to bring the country down, even as he advised the citizens to resist agents bent on causing breakdown of law and order.

President Buhari, who hosted Governors, Ministers and Heads of Government Agencies to an Iftar (breaking of Fasting) dinner at the Presidential villa, Abuja today, April 19, said: “we have the land, we have the resources, and we have the people.

“But I do not know why people will allow themselves to be successfully subverted to destabilize their own country.”

The President thanked the Governors and Ministers for honouring his invitation to break the Ramadan fast, and expressed confidence that in spite of the current security challenges, the country will succeed.

He said being beneficiary of free, fair and credible elections, the introduction of technology and the Permanent Voters Card (PVCs) will make the forthcoming general elections in the country impossible for anyone to claim millions of votes again in the country.

This was even as the Chairman the Nigeria Governors Forum and Governor of Ekiti State, Dr. Kayode Fayemi, commended President Buhari for demonstrating resilience and determination at a crucial period in Nigeria’s history.

“We have a leader who is not distracted by momentary challenges but has continued to commit to the renewal of our nation and we, governors, ministers and heads of government agencies are equally dedicated to building a better Nigeria, on your watch.”

Governor Fayemi said that this year’s Holy month of Ramadan coincided with the just concluded Christian Lenten period, saying the it holds enormous spiritual value on the benefits of renewal, sacrifice, almsgiving, forgiveness and healing for the individual as well as the nation.

 

Presidency Challenges Bishop Kukah To Join Politics To Show His Expertise In Governance

The Presidency has challenged the Bishop of Sokoto Province, the Most Rev Mathew Hassan Kukah to put away his clerical garb, join partisan politics and see how far he can go in righting the wrongs he has always accused those in government of.
In a statement today, April 18, reacting to the Bishop’s accusation against the government of President Muhammadu Buhari, a presidential spokesman, Malam Garba Shehu reminded him of his responsibility as a cleric, “as it is expressed in James 1:27: “Religion that is pure and undefiled before God, the Father, is this: to visit orphans and widows in their affliction, and to keep oneself unstained from the world.”
Garba Shehu insisted that if Bishop Kukah is expert in the way Nigeria should be run for a better result, he should come out, contest for the Presidency and proceed to do his wonders.
The spokesman who described Bishop Kukah’s Easter sermon as ” Kukah’s virus of hate,” said the Bishop has added his voice to the political campaign activities now ongoing from his pulpit.
“As the nomination congress approaches, rumblings within the party rise to an acrimonious crescendo and the troubleshooting market blossoming in the opposition Peoples Democratic Party PDP, which is in desperate yearning for his tested skills, we are surprised, so too, are many others.”
He said that the presidency is not surprised that Bishop Kukah could still find the time for a lengthy homily on his usual target, Muhammadu Buhari, the President of Nigeria.
“For a man who has been spreading hate for decades, nothing new in the homily, except for the fact that while millions of Christians were remembering the Lord’s crucifixion on Friday, His descent on Saturday, His resurrection on Sunday, and subsequent appearance to his disciples, Bishop Matthew Kukah was playing politics.
“From his pulpit, he devoted his Easter message not to Christ’s death and rebirth so Man might be saved – but to damning the government in the most un-Christian terms.
“Bishop Kukah neglects the Bible’s teachings in James 1:26: “If anyone thinks he is religious and does not bridle his tongue but deceives his heart, this person’s religion is worthless”.
“Easter should be a time for renewal, and for hope. For those in authority – both temporal and spiritual – to come together in word and deed so those who look to them for example can be inspired by their grace.
“This is not a time for religious leaders to play politics, or politicians to play religion. It is a time, as in Titus 3:9 to “avoid foolish controversies, genealogies, dissensions, and quarrels about the law, for they are unprofitable and worthless”.
“Yet Bishop Kukah used his sermon purposefully to make dissensions and quarrels about the law. “His accusatory list against the government revealed only his hatred for them.
“Still, when he accused them of division, he gave no examples: merely assertions emanating from his own mouth. His allegation of ethnic and regional divide was innuendo without proof, and he gave none.
“His list of things he claims as broken – from churches to mosques to schools and motorways – belie all those that have been built, and others built anew during this government’s time in office.
“Should he feel compelled for whatever reason to criticize the government for what he views as their mistakes, the Bible makes clear how it should be done: “Brothers, if anyone is caught in any transgression, you who are spiritual should restore him in a spirit of gentleness”, Galatians 6:1-2.
“If Bishops or religious leaders believe they have a willing audience for tales of government error or fragility, they do an injustice to their flock by filling their ears with talk of division and hateful thoughts.
“Nigeria knows too well Bishop Kukah’s views of the government. He has made quite clear how much he dislikes them from the day they were elected.
“Whether expressing his political views is a good use or an abuse of religious office is for others to decide. But the people of Nigeria have spoken – twice: They support this government at the ballot box. They have not been swayed by hateful talk from any bully-pulpit.
“We respectfully ask Bishop Kukah to leave government to the voters and the politicians they elect, while he concentrates on his job.”

Igbos Can’t Be President Of Nigeria Because Of Their Approach – Yoruba Monarch

Oba Abdulrosheed Akanbi

A Yoruba monarch, the Oluwo of Iwo, in Osun State,Oba Abdulrosheed Adewale Akanbi, has made it clear that Igbos from Southeast cannot become the President of Nigeria because of their approach to the nation’s cohesion.
In a statement through Alli Ibraheem, his Chief Press Secretary, the Oluwo said that the failure of the South Easterners to change their approach will amount to chasing shadow on their political journey of producing Nigeria’s President.
He acknowledged the damage done to Igbos as a result of the Nigerian civil war, but advised the south easterners to rescind their attitude “of barring people from other parts of the country from owning properties in their domain.”
“I have people from across Nigeria in Iwo, including the South Easterners. They do not only have their businesses but also built their houses and own farm lands. Such is not only peculiar to Iwo but to other parts of the country, except the South-East. A Nigerian in Nigeria should be able to own land anywhere.
“The style by the South easterners is barbaric. Such is not only detrimental to their economic viability but also to their political recognition. As a traditional ruler, I can’t trust any South easterner as my President.
“You can’t be a leader on sectional interest. With such unsophisticated, primitive and uncivilized thinking, no Nigerian from other zones will vote a south easterner as their President.”
According to the monarch the sit-at-home order issued by the members of the Eastern Security Network (ESN) is not only inimical to their survival but also to the growth of the nation, asking them to have a rethink in their approach.
He stressed that until they return to the way of other regions that welcome visitors from other parts of the country with love and concern for national cohesion, no Nigerian will feel secured in the hands of a leader whose ethnic attachment deprived other Nigerians their rights.
“The civil war wounds meted on south easterners is a weak factor to institutionalize policies capable of tearing the nation apart.”

Abuja Govt. Moves To Shut Down Offices, Hotels, Others, Over N10 Billion Waste Collection Debts

The Abuja Environmental Protection Board (AEPB) is set to shut down government offices, hotels, plazas and other business premises for their refusal to settle their N10 billion waste collection debts.
This is coming on the heels of the Task Force Team, set up by the FCTA Permanent Secretary, Olusade Adesola to recover the money owed by several government agencies, business premises and residential apartments in the nation’s capital.
The Director of AEPB, Engineer Osilama Briamah who made the move known to newsmen at the weekend, said that the Task Team has been mandated to apply all legal means to recover the money from the debtors, adding that the debts accrued over time due to the failure of those concerned to pay for services rendered to them by the AEPB.
“All of us desire to live and work in a world-class city compared to other beautiful cities around the world. But we can only do that successfully if we behave as responsible citizens by paying our utility bills especially for solid and liquid waste collection”.
“Unfortunately, many agencies, residential apartments, hotels, plazas and so on, are not paying their bills as expected. That makes it difficult to raise the money needed to manage a mega-city like Abuja.”
He said that, beginning from 5:30 am tomorrow April 19, based on a court order already obtained by the AEPB, the Task Team will embark on mass seal-up of these facilities with the aim of recovering the huge money being owed.
According to him, AEPB had made moves to provide soft-landing for the debtors through negotiated settlement but to no avail, adding that the only option left is to apply the legal means by enforcing the court order to seal-up the affected premises.
The Director said that the affected debtors can avoid the impending embarrassment by ensuring prompt payment of their liabilities.
He explained that the payments can be made conveniently through the Remita portal.

Soldiers Eliminate Key ISWAP Leaders: Ibn Usman, Hani Abdullahi, Abakar Shuwa, Abu Jibrillah, Others

Nigerian soldiers have made a big breakthrough in the war with terrorists, especially the Islamic State of West African Province (ISWAP).
Information had it that the Air Components of the Multinational Joint Task Force (MNJTF) rained multiple missiles at the abodes of ISWAP Commanders and their training camps in the Lake Chad axis.
A military intelligence source said that the coordinated attacks spearheaded by the Nigerien air taskforce were conducted on April 14, at Tumbun Rego
“The Intelligence, Surveillance and Reconnaissance (ISR) of the joint air taskforce on April 13, specifically sighted a large number of terrorists, a logistics and training camp, about 29 motorcycles and 4 vehicles concealed under trees at Tumbun Rego
“With the credible intelligence, that indicated that the location also served as an abode for some top ISWAP commanders.
“Using a mix of NAF and Nigerien Air Force aircraft, the aircraft attacked the adjoining locations that serve as havens of their fighters, followers and families.
“On April 15, 2022, the mop-up operations were conducted by the Nigerian Army under Operation Lake Sanity who have already captured most of the terrorists’ enclaves in Sambisa Forest and with their ongoing onslaught in the Tumbuns.
“The airstrikes and the operations of the ground troops have led to the death of scores of terrorists where many others were seriously injured.”
Source: PRNigeria.
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