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Tinubu govt tackling economic crisis, Presidency replies New York Times

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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, responded on Sunday to the report by Ruth Maclean and Ismail Auwal.

 

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

 

Onanuga stated that due to the ‘misleading’ slant of the report, the government needed to clear up some misconceptions conveyed by the reporters regarding the economic policies of President Bola Tinubu’s administration, which took office at the end of May 2023.

 

He noted that the report painted a dire picture of some Nigerians’ experiences amid the inflationary spiral of the last year and unfairly blamed it all on the new administration’s policies.

 

He argued that the report, based on several interviews, is at best jaundiced, portraying all gloom and doom without mentioning the positive aspects of the economy or the amelioration policies being implemented by the central and state governments.

READ  Tinubu’s government inherited dead economy — Soludo

 

Onanuga emphasized that Tinubu did not create the economic problems Nigeria faces today but 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.

 

He explained that this context led to the policy direction taken by the government in May/June 2023, including the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.

 

Onanuga highlighted that Nigeria had maintained a fuel subsidy regime for decades, which consumed $84.39 billion between 2005 and 2022 from the public treasury, in a country with significant infrastructural deficits and a high need for better social services.

 

He also alleged that the state oil firm, NNPCL, had accumulated trillions of Naira in debts due to unsustainable subsidy payments.

 

He noted that when Tinubu took office, no provision was made for fuel subsidy payments in the national budget beyond June 2023.

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“The budget itself had a striking feature: it planned to spend 97 per cent of revenue servicing debt, with little left for recurrent or capital expenditure. The previous government had resorted to massive borrowing to cover such costs.”

 

Onanuga further explained that like oil, the exchange rate was also 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.

 

“This low rate led to arbitrage and failures to fulfil remittance obligations to airlines and other foreign businesses, drying up foreign direct investment and investments in the oil sector.

 

“To address these issues, Tinubu rolled back the subsidy regime and floated the naira on his first day”, Onanuga said.

 

Despite initial challenges, Onanuga noted that some stability is being restored, with the exchange rate now below N1500 to the dollar and prospects for further appreciation.

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He cited a trade surplus of N6.52 trillion in Q1, as opposed to a deficit of N1.4 trillion in Q4 of 2023, and renewed interest from portfolio investors as indicators of improving economic confidence. Loans from the World Bank, AfDB, and Afreximbank are also contributing to Nigeria’s renewed bankability.

 

Onanuga highlighted efforts to control inflation, especially food inflation, through increased agricultural production and state-led initiatives to sell food at lower prices.

 

“The Tinubu administration has invested heavily in dry-season farming and provided incentives to farmers.”

 

He concluded by comparing Nigeria’s economic challenges with those faced by the USA and Europe, emphasizing that the Tinubu administration is working hard to overcome these difficulties.

 

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

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Rivers Crisis: Police declare ex-militant leader ‘General Asabuja’ wanted

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The Rivers state Police authorities have declared a former Niger Delta militant leader Gabriel ‘General’ Asabuja wanted.

 

The Rivers State Commissioner for Police Tunji Disu said this on Monday when he appeared on Channels Television’s Politics Today.

 

Asabuja was seen in a viral video making some strong comments amid the local government council crisis rocking Rivers State.

 

But Disu has condemned the action, saying, “That video caused a lot of panic in the state. It gives a lot of concern to everybody even out of the state. I want to assure you that we are not going to take kindly to that. We have put actions in motion. We would get him at the appropriate time. We have gotten a lot of people of his kind.

 

“You cannot prepare a video and start firing and threatening people not to move around and do what they are expected to do in town and expect the police will fold their hands. We are working towards it. We have invited him and he does not want to come but we will do what we want to do. We are looking out for him.”

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“He is wanted. That is correct,” the Rivers State Commissioner said on the current affairs show.

 

Crisis Rocks Rivers
River State has been embroiled in crisis since late last year following a fallout between Governor Sim Fubara and his predecessor Nyesom Wike.

 

The latest in the trend is the crisis over the leadership of local government councils. The tenure of the chairpersons, their deputies, and councilors ended earlier in the month, prompting Governor Fubara to swear in a caretaker committee.

 

That move did not go well with Wike’s loyalists who claim the governor’s action was wrong. There have been protests, claims, and counter-claims since then.

 

But police authorities in the state have warned against violence, saying they are ready to deal with anyone who foments trouble in the state.

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FEC approves N1.99bn to boost NDLEA’s operations

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The federal executive council (FEC) has approved N1.99 billion for the purchase of 33 vehicles powered by compressed natural gas (CNG) to boost the operations of the National Drug Law Enforcement Agency (NDLEA).

 

The council gave the approval on Tuesday at its meeting presided over by President Bola Tinubu in Abuja.

 

Speaking with State House correspondents after the meeting, Lateef Fagbemi, the attorney-general of the federation (AGF) and minister of justice, said the council also approved the procurement of firearms and ammunition worth $1.442 billion to strengthen the NDLEA’s fight against drug trafficking.

 

Fagbemi said the FEC approved N985 million to purchase body scanners at all the country’s international airports.

 

“We submitted three items to the council on NDLEA,” he said.

 

“FEC approved the procurement of 33 Mikano motor vehicles CNG to boost the operation of NDLEA.

 

“Approval for NDLEA for procurement of firearms, ammunition, and counter-narcotics for the sum of $1.442 billion

“The procurement of two units of body scanners for use both at Abuja and International Airports at N985 million.”

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Court orders final forfeiture of fresh $1.4m linked to Emefiele

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The Federal High Court, sitting in Lagos has ordered the final forfeiture to the Federal Government, of the sum of $1.4 million, linked to a former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

 

Justice Ayokunle Faji gave the order after hearing an application filed and argued by the Economic and Financial Crimes Commission (EFCC).

 

This order is coming a few days after another judge of the same court, Justice Chukwujekwu Aneke, ordered the final forfeiture of over N12.18bn in money and properties linked to the same Emefiele.

 

At Tuesday’s proceedings, counsel to the EFCC, Bilkisu Buhari-Bala, urged Justice Faji to grant the final forfeiture order of the money, domiciled in an account number in Titan Trust Limited, to the Nigeria government.

 

The EFCC counsel told the court that the application is pursuant to Section 17 of the Advance Fee Fraud and Other Fraud-related Offences Act No. 14 2006, and section 44 (2)(B) of the 1999 Constitution of the Federal Republic of Nigeria.

 

Buhari also told the court that the application for the final forfeiture of the said sum has been established to be proceeds of unlawful activities.

 

The applicant was supported by an affidavit deposed to by one David Jayeoba, an Investigating Officer with the EFCC, alongside a written address.

 

In the affidavit, the deponent stated that his Commission received credible and direct intelligence which led to the tracing of funds reasonably suspected to be proceeds of unlawful activities, warehoused in the Donatone Limited (DL) Titan Trust Bank account, which funds are reasonably suspected to be part of proceeds of unlawful activities.

READ  I won’t tolerate non-performance, Tinubu tells new NNPCL board

 

He said that the Commission, whilst investigating the monumental fraud carried out by the erstwhile CBN governor and his cronies, discovered a huge amount of money warehoused and concealed in the account of (DL) domiciled in Titan Trust Bank. According to him, some of the brains behind the fraudulent concealment of funds reasonably suspected to have been proceeds of unlawful activities of Emefiele are the natural persons behind DL: Uzeobo Anthony and Adebanjo Olurotimi who are directors of DL.

 

The deponent also stated “that part of the said funds, which represent the proceeds of Godwin Emefiele and his cronies’ unlawful activities, are retained in the accounts now sought to be forfeited.

 

“That Uzeobo Anthony and Adebanjo Olurotimi were procured by Godwin Emefiele to conceal, retain, and disguise funds reasonably suspected to be proceeds of unlawful activities.

 

“Between 2021 and 2022, when accessibility to Forex in Nigeria was difficult, several international entities operating in Nigeria had to resort to different means to source Forex.

 

“That both Uzeobo Anthony and Adebanjo Olurotimi used to collect bribes and gratification on behalf of (GE) to get approval for accessing Forex. And that one of the entities paid a total sum of twenty-six million five hundred and fifty-give thousand million Dollars ($26,552,000.00) into the account of (DL) domiciled in Titan Trust account number 2000000500.

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“The said credits came into the account on the 9th of November 2021: $6,450,000; 15th of November 2021: $6,050,000.00; 16th of December 2021: $5,400,000.00; 23rd of December 2021: $652,000, 31th January 2022: $3,000,000.00 and on the 21st September 2022: $5,000,000.00. Find attached and marked EFCC 1 the Titan Trust bank account of Donatus Limited evidencing the inflows.

 

“The investigation traced the funds to having been fixed into interest-yielding accounts, dissipated and laundered through a foreign account in Mauritius, and transported back to Nigeria under disguise.

 

“That of the total sum of $26, 555, 000.00 US dollars received by Donatus Limited, the balance standing in the said account as of today is the sum of one million four hundred and twenty-six Thousand one hundred and seventy-five (US $1,426, 175. 14).

 

“That it is the balance in the account that the applicant (EFCC) seeks to forfeit to the Federal Government of Nigeria which has been traced to be the proceeds of unlawful activities of (GE) and his cronies.

 

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“That investigation further revealed that the international entities sourcing for forex were pressured into parting with huge funds to access forex during the period. And that the signatories to the account warehousing the sum of ($1,426, 175.14) sought to be forfeited are at large and are making frantic efforts to dissipate the funds electronically.

 

“Based on our investigation findings, the funds sought to be forfeited are proceeds of unlawful activities of Godwin Emefiele and his cronies. And that the applicant secured an interim forfeiture order of the Honourable Court on the 29th day of May 2024 to forfeit the sum of $1, 426, 175.14 warehoused in Titan Trust Bank to the Federal Government of Nigeria in the interim. Attached and marked EFCC 3 is the Honorable Court’s order dated 29th May 2024.

 

“The Honorable Court ordered that the order be published in a national daily. The said order was carried out and the applicant published the order in the Punch Newspaper on the 6th of June 2024. Attached and marked EFCC 4 is the said order.”

 

In ordering the final forfeiture of the money after listening to the submission of the EFCC lawyer, the court held that: “having been satisfied with the application and submission of Counsel, I hereby granted the prayer finally forfeiting the said funds in question.”

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