₦airaland Forum

Bolaji Ogundele, Abuja


President Bola Tinubu on Monday, April 29, disclosed that the Nigerian economy has escaped the phase of sabotage, as his administration continues to pursue its target of ending the reign of economic saboteurs working against the nation’s progress.
President Tinubu, who disclosed this at the meeting of African Heads of State and Government on the 21st Replenishment of the International Development Association (IDA21) in Nairobi, also declared that Nigeria is set to harness the potential of its youthful population to transform into a global digital economy powerhouse.

Represented by Vice President Kashim Shettima at the meeting, the President also hinted at the nation’s plans to become a global hub for outsourcing talent within the digital and creative economy.

This is just as African Heads of State and Government committed countries on the continent to strengthen implementation capacities, mobilising domestic resources, and partnering effectively with IDA to accelerate the continent’s economic transformation.

According to a statement issued by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, President Tinubu informed other African leaders of the sweeping reforms implemented by his administration to curb illicit activities and currency manipulation that had long hindered the nation’s progress.

“Since assuming office, President Tinubu has remained steadfast in fulfilling his promise to end the reign of economic saboteurs who have long exploited and hindered the progress of our nation. I am pleased to report that our economy has escaped the phase of sabotage,” the President noted.

President Tinubu also reiterated Nigeria’s plans to build a vast digital market capable of absorbing cutting-edge innovations and technologies, positioning the country as a hub for outsourcing talent in the digital and creative economy spheres.

“Being a young country with a median age of about 18, our interventions in the digital economy have been so extensive that we are no longer boasting of having the most unicorns, but preparing to serve as a global hub for outsourcing talents,” the President stated in his submission titled “The Path to Recovery: Nigeria’s Journey Beyond Sabotage”, which was delivered to the Summit by VP Shettima

Alongside the digital transformation agenda, President Tinubu said Nigeria is committed to prioritizing climate resilience and becoming an attractive destination for carbon market investments.

“The tensions resulting from climate-induced disruptions serve as a pressing call to action. The profound impact of climate change on our continent’s security underscores our dedication to transforming innovative concepts from conference discussions into tangible actions. We aim to become an investment-friendly destination for carbon market investments,” the organ was informed.

He expressed Nigeria’s belief that the summit’s communiqué would reflect the collective needs of African and IDA countries, capturing their “nuances, consensus, dreams, and projections.”

President Tinubu listed key priorities for Nigeria’s economic recovery in his administration’s Renewed Hope Agenda, anchored on poverty alleviation, to include economic expansion, job creation, enhanced access to capital, food security, and inclusivity.

He also stressed the importance of regional economic integration through instruments like the African Continental Free Trade Area (AfCFTA) Agreement to dismantle investment barriers and facilitate access to international markets.

“Our path to the future depends on nurturing strategic partnerships with other nations and development organizations. Therefore, we will utilize our absolute and comparative advantages to establish partnerships across borders,” the President said.

Earlier in his opening remarks, the President of Kenya, William Ruto, said the summit was urgent because it was “convened at a critical juncture facing a convergence of global crises which include escalating geopolitical tensions that challenge international unity, a deepening development and debt crisis that threatens our economic stability, and an urgent climate emergency that demands immediate and collective action for our planet’s survival.”

He gave instances of the devastating impact of severe flooding in the East African region which, according to him, has displaced thousands in Nairobi alone, and the vulnerability of the continent to extreme weather patterns, which points to the critical role of the IDA in financing Africa’s development and stability.

“This new normal demands our immediate and united action to safeguard our collective future. This underscores the critical role of the IDA for Africa Summit as a cornerstone for financing for Africa. IDA has directed 75% of its total commitment which is nearly $26 billion to Africa in the last fiscal year with African countries comprising 8 of IDA’s top 10 borrowers. This support is not just financial but it’s a lifeline for development and stability,” President Ruto said.

Also speaking, the World Bank President, Ajay Banga, expressed optimism about Africa’s potential, saying “it’s very easy to feel hopeful when we’re together anywhere in Africa,” adding that you feel the infectious energy of young people.”

Banga affirmed the IDA’s commitment to accelerating progress on the continent, vowing to “move with urgency and purpose,” while making the institution more efficient and impactful.

“We stand at the crossroads of a new era of growth and prosperity for Africa,” he said.

At the end of the Summit, African Heads of State and Government adopted a joint communique committing countries on the continent to accelerate the continent’s economic transformation by strengthening implementation capacities, mobilising domestic resources, and partnering effectively with IDA.

They also called for an ambitious replenishment of the International Development Association (IDA) to support the continent’s development goals.

The Nairobi Communique described IDA as Africa’s largest source of concessional financing, outlining priorities for IDA21 to include building human capital, creating jobs, boosting energy and digital access, enhancing resilience to climate change and fragility, and promoting inclusive growth policies.

A surge in demand for dollars in the parallel market driven by banks and end-users combined with slow forex disbursement to BDCs by the Central Bank of Nigeria, CBN, caused the Naira, last week, to fall by 23 per cent against the dollar, thus recording the worst weekly performance of the Naira since February.

Though the CBN came to the rescue of the Naira on Friday by intervening in the official Nigeria Foreign Exchange Market, NAFEM, hence the appreciation of the Naira in the parallel market on Friday, currency dealers and analysts were uncertain about the fortunes of the Naira this week, citing pace and speed of CBN intervention as a determining factor.

After two months of steady appreciation to N1,140 on Friday, April 19, from N1,1,820 per dollar on Wednesday, March 21, the Naira, last week, depreciated for four consecutive days by N285 (25%) to N1,405 per dollar on Thursday, April 25th.

Following the same trend in the official market, the Naira depreciated by N169.24 (9.9%) to N1,339.23 per dollar on Friday last week, April 26th, from N1,169.99 per dollar on Friday, April 19.


FX rate differential

Financial Vanguard investigations revealed that the steady reversal in the fortunes of the Naira was triggered by a combination of factors, including sharp practices encouraged by the lower exchange rate in the parallel market.

Since the CBN resumed dollar sales to Bureaux De Change, BDCs, the parallel market exchange rate had been below the official market exchange rate. For example, on Friday, April 19, the parallel market rate at N1,120 per dollar was N64.5 lower than the official rate of N1,234.49 per dollar on that day.

To exploit this gap, banks besieged the parallel market, buying dollars at the cheaper rate and reselling to their customers at the higher official exchange rate.

Following the steps of the banks, some forex end-users also bought dollars in the parallel market, deposited them in their domiciliary account and sell to the banks at a higher official rate.

This practice according to currency dealers triggered huge demand for dollars in the parallel market and hence the 25 per cent depreciation of the Naira in four days last week.

Currency dealers also cited the slow pace of dollar disbursement to BDCs by the CBN. They noted that dollar disbursement to BDCs comes in trickles, with some BDCs not getting dollars for more than two weeks after naira payment to the apex bank.

Confirming this to Vanguard, President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, said: “The depreciation of the dollar was caused by two factors. The first was that people were buying from the open (parallel) market, depositing the dollars in their domiciliary accounts and sell in the interbank market and this is because the open (parallel) market rate is always lower than the interbank market rate.

“The second factor is that we have seen the resurgence of Person-to-Person, P2P, where hedging, margin trading are taking place.

“After nipping in the bud of Binance, other platforms sprang up. And you know transactions in those platforms are purely speculative. The likes of Binance can only be profitable at the expense of naira depreciation because it is a market that you buy low and sell higher.”

Scant FX supply in the official market

Investigation also revealed the situation was aggravated by the absence of CBN intervention in the official market for some weeks while inflow from Foreign Portfolios, and FPIs also dwindled.

Explaining this development, Nnamdi Nwizu, Co-Founder of Comercio Partners, a Lagos-based investment bank, said: “Until yesterday (Friday) when they intervened, CBN had not intervened in the interbank market for weeks, and inflows were drying up.

“Also forex demand that waited for Naira to strengthen (appreciate) seems to be filtering through now, both local and FPI’s.”

On the outlook for the Naira in the coming weeks, Nnamdi said: “A lot depends on if the CBN continues to intervene in the market to ensure that they don’t lose control of the market. And also if we start to see renewed FPI flows.”

CBN intervenes

In a bid to arrest the depreciation of the Naira, CBN intervened in the official market on Friday. It also increased the speed of dollar disbursement to the BDCs, while also stepping up enforcement activities with its monitoring task force which visited some BDCs and parallel market locations in Abuja and Kano on Friday.

As a result, the Naira appreciated in the parallel market on Friday to N1300 per dollar from N1,405 per dollar on Thursday.
Confirming this development, Umoru Ahmed, a currency dealer based in Lagos Island said: “The naira was traded at N1,500 this morning which I bought. There is no inflow of dollars like before and not all the BDCs have access to dollars especially if they registered late.

“The rate later crashed today to N1,300 per dollar for selling and N1,250 for buying.

“This is because the CBN’s task force stormed the market today arresting many black market traders which led to many operators reducing their price to sell off their dollars as they don’t know what the market will be like tomorrow.”

Similarly, Isa Yahaya, a currency dealer in Ikeja said: “In Ikeja today, we bought at N1,320 and sold at N1,350. But the market opened today at N1,450 per dollar of which I bought a dollar for N1,550.

“But we received a hint that the CBN’s task force was arresting many black market traders. This led to the appreciation of the naira because we just wanted to quickly sell what we had and wait till tomorrow to see what the market holds.
“The increase in the rate is due to demand pressure. The number of people demanding for dollars is higher than those selling.

“So it is difficult to meet the demand as we do not have access to buying from BDCs talk of from the CBN.”

Also confirming this development and expressing optimism that the naira will further appreciate this week, Gwadehe said: “There is a turn of events now. Naira is appreciating as we speak, the rate has come down to N1,250 – N1,270.

“Now the rate is going down due to a combination of factors. The CBN has intervened today at the NAFEM market. Dollar sales and disbursement to BDCs have been coordinated and streamlined for efficiency and liquidity.

“The securities agencies have swooped on those illegal behaviours, arrests were made today in Abuja and Kano. So all these factors are playing a bigger role because all the behaviours that have no economic value have been checkmated and streamlined. So I believe appreciation of the Naira cannot but continue.”

Speaking further, Gwadabe called for an executive order to deposit their holding into a non-exports domiciliary with silent sources requirement of an amount below # 50k for 3 months.

He also called for the creation of investment bonds for Nigerians in the Diaspora without tax charges.

Investigations by the Nigerian Tribune have revealed that the N2.6 trillion Lagos-Calabar Coastal road may lead to the abandonment of about N16 trillion railway projects which were incorporated in the 25-year railway roadmap unveiled during the administration of former president, Olusegun Obasanjo, and which will expire next year, 2025.

The projects include the Ibadan-Kano Standard Gauge Railway ($5.3 billion); $11.17 billion Lagos-Calabar coastal railway project; the $3.02 billion rehabilitation project for the Eastern Line (Port Harcourt-Maiduguri) and the $1.9 billion Kano-Maradi Railway project.

Checks by the Nigerian Tribune revealed that approval of the N2.6 trillion Lagos-Calabar Coastal road by the Federal Government ought to have come after the completion of the $11.17 billion Lagos-Calabar Coastal railway.

Speaking with the Nigerian Tribune, a source close to the Nigerian Railway Corporation (NRC) lamented that the body language of the President Bola Tinubu administration has shown that there is no room for fresh railway project development.

According to the source, “Before now, what we keep hearing is that there is no funds, but suddenly there is a whole N2.6 trillion for a road that links Lagos to Calabar. It is shocking.

“If you look at many developed countries, their development is hinged on rail connectivity which comes cheap and very affordable. The Lagos-Calabar coastal railway needed $11.17 billion for its completion, but has been stalled due to paucity of funds. Now, we are expending N2.6 trillion on a road along same axis. Between a road and rail connection, which one is better for economic development? Of course, it’s the rail construction.

“Many of these railway projects will lapse next year because they were incorporated into the railway roadmap development in year 2000 under the Olusegun Obasanjo administration. It is only in this country that every government comes and does its own, and dumps a trajectory that ought to be followed.

“The Lagos-Ibadan is just a leg from the Lagos-Kano standard gauge rail line. The Lagos-Ibadan has been completed and works should be ongoing on the Ibadan-Kano axis. Imagine the economic benefits of rail movement of cargoes from the Apapa Port in Lagos straight to Kano?

“As we speak, every cargo that leaves the port in Lagos stops at Ibadan because that’s where the rail ends. From Ibadan up North, the cargoes find their way through the use of trucks which has allowed double handling and security concerns into the freight and logistics system. How long are we going to continue with this pattern?

“If the government can raise N2.6 trillion for a coastal road, what about the various railway projects that are lying abandoned? It seems these projects have been abandoned and we won’t see any fresh railway construction in this country in the next four years.

“The $11.17 billion Lagos-Calabar coastal railway project was in 2021 approved by the Federal Executive Council (FEC) during the Muhammadu Buhari-led administration. We expected the Federal Government to have continued with this approval, but it has been sidelined.”

Further checks by the Nigerian Tribune revealed that the Ibadan-Kano Standard Gauge Railway, Lagos-Calabar coastal railway project; Eastern Line (Port Harcourt-Maiduguri) rehabilitation have all not yet began and their time frame will expire next year.

Efforts to get the Ministry of Transport’s reaction to the current state of railways development in the country proved abortive as one of the aides of the Minister of Transportation declined comments, stating that the Minister who is in the best position to speak, is not in the country.

“I cannot speak on the issue, and the Minister who can, is not in the country,” the Ministry of Transportation official told Nigerian Tribune.

Meanwhile, affected owners of structures marked for demolition on the right-of- way of the Lagos-Calabar Coastal Road project have been calling for adequate compensation following the commencement of the exercise.

The affected property owners said that the issue of compensation should come first before embarking on demolition of their structures.

While some of them are considering legal action, others said they are not against the construction of the road, but that the Federal Government should pay them adequately and in tandem with current realities.

One of the affected owners, Mr Adewunmi Olusola, a developer, estate surveyor and valuer, called for adequate compensation of his property.

He said he was hurt that his new housing development scheme of over N100 million in Lekki-Epe axis was marked for demolition going by the alignment of the road.

“Government should come down there, take stock of what is there, pay adequate compensation. There are equity holders, those that have brought property from us, what is their fate now and who is going to pay them? Again, is that not double loss, that they are to take me to court to say you have sold us a plot of land and government has taken it? Is it me they are going to take to court or the government? Let’s be seen doing something right,” he said.

Other along Ilasa –Jakande axis also called for adequate compensation.

Flagging-off the demolition of a section of the Landmark Beach at the weekend, the Minister of Works, David Umahi, said the Federal Government will commence payment of compensation for properties that have been confirmed as from Wednesday and Thursday.

He pointed out that the demolition was necessary to clear structures on the Federal Government’s Right-of-way.

He said, “We want to start the demolition from this point. I continue to say that none of the infrastructure is affected, just the shanties, and I have directed that the beach should be shut down from Monday.

“The place is owned by people that are sand filling it, and at the end of the day, there is no more beaches, so what we are doing is to pass our coastal road within the Right-of-Way of the Federal Government. Those who are playing politics with it can go ahead; my job is simple, which is to pass the coastal road.”

“From Wednesday/Thursday, I will pay the compensation, that is why I am still here and I will be here working through the week. For anyone (all that has been confirmed and deserving) being demolished, we would direct the payment to be made.

“I know that you must pay before you demolish, but this is President Bola Tinubu’s government, we have said we would pay compensation, and we are going to pay compensation,” he added.

Umahi said that he inspected kilometres 13, 16, and 20 to ensure the demolition stays along the coastal roads without much damage.

Northern groups under the aegis of the Arewa Youth Consultative Forum (AYCF) and the Northern Awareness Network (NAN) over the weekend expressed concerns over plots by self-seeking politicians to weaken President Bola Tinubu’s support base and his re-election bid in 2027 through interference in his cabinet.

AYCF President, Yerima Shettima and NAN Chairman, Salifu Suleiman, commended President Tinubu’s administration for its achievements so far, attributing them to his dedicated team of ministers and officials.

According to the groups, while some ministers and officials have achieved remarkable success in their respective roles, it was important for President Tinubu to remain vigilant and cautious against the machinations of self-seeking politicians.

They specifically mentioned Tinubu’s Chief of Staff, Femi Gbajamiala, who they said has been instrumental in coordinating the President’s agenda and ensuring smooth communication and collaboration within the administration.

“His strategic leadership and organisational skills have streamlined decision-making processes and enhanced efficiency in governance.

“The Federal Capital Territory Minister, Nyesom Wike has been instrumental in the development and improvement of infrastructure in the Nigerian seat of power.

“His innovative projects and policies have transformed the FCT into a modern and dynamic city, attracting investments and creating opportunities for its residents.

“The Minister of Interior, Olubunmi Tunji Ojo has been leading efforts to improve security and law enforcement in the country.

“His initiatives have led to a significant decrease in crime rates and enhanced the safety and well-being of Nigerian citizens.

“The Minister of Aviation, Festus Keyamo has been driving reforms and modernization efforts in the aviation sector.

“His initiatives have enhanced safety standards, improved infrastructure, and promoted efficiency in air travel. Keyamo’s vision for a world-class aviation industry in Nigeria has positioned the country as a regional hub for air transportation.

“The Minister of Budget, Abubakar Bagudu has been instrumental in managing the nation’s finances and ensuring fiscal responsibility.

“His strategic planning and budgeting skills have helped steer the country towards economic stability and growth. Bagudu’s prudent financial management has earned him respect and admiration within the administration.

“The Minister of Defence State, Bello Matawalle has been pivotal in strengthening the nation’s security and military capabilities.

“His leadership and proactive measures have led to significant gains in the fight against terrorism and insurgency.

“The Minister of Art and Culture, Hannatu Musawa has been promoting Nigeria’s rich cultural heritage and artistic diversity on the global stage.

“Her initiatives have brought recognition and acclaim to Nigerian artists and performers, showcasing the country’s creative talents to the world”, they added.

Hamma Bello, the eighth posecution witness in the trial of a former Head of Service of the Federation, Winifred Oyo-Ita, narrated before Justice James Omotosho of the Federal High Court, Maitama, Abuja, on Thursday how the defendant and her subordinates diverted public funds into their private companies.

Oyo-Ita, the first defendant, is facing criminal prosecution by the Economic and Financial Crimes Commission alongside her special assistants, Ugbong Effiok (seventh defendant), and Garba Umar (fourth defendant).

Others are six companies: Frontline Ace Global Services Limited, Asanaya Projects Limited, Slopes International Limited, U and U Global Services Ltd, Prince Mega Logistics Ltd, and Good Deal Investments, on 18 counts bordering on misappropriation, official corruption, money laundering, and criminal diversion of funds to the tune of over N3 billion.

The witness, while being led in evidence by prosecution counsel, Faruk Abdullahi, and H.M. Mohammed, told the court that Oyo-Ita used Slopes International Limited and Good Deal Investments Limited-fifth and sixth defendants respectively, to fraudulently award government contracts to herself through the fourth defendant, Umar.

The first entry transaction of Good Deal Investment Limited. in February 2019 showed that N42,748, 201.47 was paid into its Zenith Bank account.

Umar, the witness said, incorporated the company with Oyo-Ita’s full knowledge.

“We called for the account statements of these two companies, and upon analysing them, we realised he (Umar) was paid several sums of money from the Ministry of Power, Works and Housing, where he is an employee.

“And upon interviewing the fourth defendant, he admitted that he was also a contractor. He also admitted to have paid the first defendant on several occasions from the proceeds of the transaction,” the witness said.

On April 27, 2019, the witness disclosed that a transfer of N20, 2027, 142 was made in the name of Ibrahim Madu to the Zenith Bank account of Asanaya Projects Limited.

The mandate card of the account bears the signature and photo of the seventh defendant, Effiok.

Investigation, according to the witness, also revealed that the seventh defendant incorporated Asanaya Projects Limited in his name with the knowledge of the first defendant and that approvals were granted and payments made to the seventh defendant either through his personal account or to the account of the company.

The witness said, “The seventh defendant, upon interview, confirmed he had never travelled for most of the funds he received and that the first defendant was aware of and benefitted on several occasions from the funds. The account of U and U Global Services Limited was also opened by the seventh defendant.

“In summary, from 2015 to 2018, U and U Global Limited received several payments in the form of Duty Tour Allowances and estacodes. Sometimes, payments from the federal government were made directly to the account, for instance, on March 24, 2016, he received N40, 313, 453. 58. This particular payment was from the federal government.”

Further in his testimony, the witness stated that, “Exhibit O is the Fidelity Bank account of Prince Mega Logistics Ltd. On March 27, 2018, and April 6, 2018, there were four entries, N4, 950 000; N3,946,000, N4,676,000 and N1,478,000, from Thomson Titus Okure, who used to be a colleague of the seventh defendant in the Account Department.

“There were also outward payments to Ignom, Minaro Blessing, Winifred Oyo-Ita, Olarenwaju Godman Olushola and the seventh defendant is the sole signatory of this account.”

Speaking further, he said, “I also want to add that we invited the first, second and seventh defendant at different times to our office and interviewed them. In the case of the first defendant, we printed chats from her phone and saw conversations she had with contractors, subordinates, and permanent secretaries. She also voluntarily made a statement to the EFCC.”

The matter was adjourned till April 30, 2024.

Nigerian social media entrepreneur Clara Chizoba Kronborg has broken the world record for the longest interviewing marathon with a time of 55 hours 24 seconds.

The previous record was 37 hours 44 minutes by Rob Oliver (USA) in 2022.

Clara, who hosts a talk show on YouTube, interviewed 90 people of various nationalities and occupations, including politicians, business owners, content creators, actors, real estate agents and many others, the Guinness World Records revealed on Wednesday.

According to GWR, the conversations were centred around how each guest achieved success in their respective field.

It noted that Clara grew up in relative poverty in Onitsha, Nigeria, which fuelled her fascination with the concept of success.

Clara was quoted as saying: “This record attempt was about bringing together diverse individuals, sharing their inspiring narratives, and forging meaningful connections on a global scale.

“I am committed to amplifying voices, particularly those of hardworking women, and using their stories to inspire others facing similar challenges.”

Clara’s record attempt took place on a docked yacht in the Spanish city of Marbella, where she currently lives.

In addition to the usually sunny harbour being struck by a heavy rainstorm, Clara faced several difficulties during her record attempt.

She says her voice became “very hoarse and rusty” but she avoided losing it by drinking lots of water.

A report by GWR said, “As with all ‘longest marathon’ record attempts, Clara accrued five minutes of rest time after each hour of interviewing; only during these breaks was she permitted to nap, change her clothes, or go to the bathroom.

“So, to compensate for the large volume of water she was consuming, Clara wore adult diapers throughout her record attempt.”

“Even worse, my period started the same day, and I was already having intense menstrual cramps,” she revealed.

“At some point I was literally dripping pee and period stain, but I persevered and kept my eyes on the goal. To anyone who ever reads this, once you find your purpose, go after it with everything you’ve got.”

Clara also reportedly suffered neck and back aches, which her team relieved with massages during her rest breaks.

The report said she also struggled with sleepiness at multiple points but according to her, she gained a “battery recharge” every time she began interviewing a new guest, as she was eager to hear their story.

Enduring all the hardships was worth it for Clara, who says it feels “surreal” to now hold this world record.

“Recalling everything I went through physically, mentally, financially, emotionally – it feels so unreal,” she said.

“I am extremely proud of this accomplishment because I know lives have been touched and changed.

“This achievement is dedicated to all those who dare to dream and persist, regardless of the challenges they face.”

Clara’s achievement comes a few days after fellow Nigerian, Tunde Onakoya, set a new Guinness World Record for the longest marathon chess.

Onakoya on Wednesday recounted how he cancelled his flight returning to Nigeria from the United States to embark on the chess marathon.

He also noted that he walked to the chess board with sickness, tears in his eyes, fear and uncertainty.

Onakoya said that two days before the record attempt, his health failed him, and it was so bad that he started sneezing blood and coughing violently but he was resolute to embark on the attempt to set a new record.

“After 60 hours of mental torture, we set a new record for the longest chess marathon in the world. We pushed human limitation and gave the world something new to believe in,” he said.

The challenge was held at New York City’s iconic Times Square.

A recent analysis has revealed that telecom operators lost a significant amount of money in 2023 as a result of spending N27 billion to repair broken cables.

Documents obtained by Bloomberg revealed that the majority of the expenditures were borne by MTN Nigeria, the largest cellular provider in the most populous country in Africa, and Airtel Africa Plc.

For instance, the document revealed that MTN suffered more than 6,000 cuts on its fiber cable last year. On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometres (1,553 miles) of vulnerable fibre cables between 2022 and 2023, at a cost of more than N11 billion —enough to build 870 kilometres of new fibre lines in areas without coverage.

Data from the Nigerian Communications Commission (NCC) also revealed that the telecom industry spent N14 billion to repair around 59,000 fibre cuts between 2022 and 2023. In 2022, the NCC pegged the number of fibre cuts to 40 daily.

The NCC estimated that over 50,000 cases of significant damage to telecoms infrastructure, including fibre cuts, have been reported in the past five years, ending 2023.

The foundation of today’s communication infrastructure is made up of broadband fiber optic cables, which allow for the high-speed data transfer necessary for a variety of societal, commercial, and personal endeavours, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, told LEADERSHIP, adding that telecommunications serves as an ‘enabler’ for all other critical infrastructure and infrastructure sectors vital to national productivity and security.

To function optimally, ALTON chairman said telecommunications infrastructure relies on a complex and interconnected support ecosystem consisting of fibre, satellites, towers, base stations, switches, data centres, etc., which need to function uninterrupted for delivery of optimal Quality of Service (QoS).

He regretted that there have been incidences of adverse cross-sectoral impact on QoS arising from damage to such infrastructure due to excavation during civil works such as road construction, deliberate/negligent vandalization and sabotage as well as theft of cable, equipment, and supplies such as diesel, generators and batteries, undue delay in issuance of site approvals for new towers/base stations as well as harassment of staff /site access denial by state/local agencies to enforce levy payments.

ALTON chairman however called for collaborative partnership with key stakeholders to secure executive and legislative action on the declaration of telecoms infrastructure as Critical National Infrastructure (CNI) and criminalisation of malicious site sealing, access denials, and willful/negligent destruction of telecommunications infrastructure.

“This can be done either by an executive order or relevant amendment of the Cybercrimes Act; an attempt was made by the immediate past National Security Adviser (NSA) to secure Presidential approval for an Executive Order (EO). The executive vice chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, is respectfully requested to liaise with the current NSA to bring to fruition the EO on CNI,” he appealed.

“The NCC boss should also rekindle the quest for Critical National Infrastructure Bill, a bill that will tackle the issue of vandalism of base stations, which is very rampant,” president, National Association of Telecommunications Subscribers (NATCOMS), Chief Adeolu Ogunbanjo, advocated.

In his reaction, Maida, averred that the Commission has done a lot of stakeholders’ engagement, gathering data and looking at the impact in terms of cost when it comes to damages done to fibre infrastructure and how much of service disruption it is creating for the sector.

However, with broadband penetration at 43.08 per cent as of February 2024, securing existing infrastructure is crucial for growth, Maida averred, adding that, “We need to build a reliable telecom industry with impressive quality of service indicators with quality of experience as our watchword and ultimate goal. This also requires us to address several issues such as the Right of Way challenge, ensuring the security of our telecom infrastructure, among others.”

Meanwhile, Nigeria’s works ministry is finalising a regulation that will criminalise fibre damage, Bloomberg averred, stating that the regulation will enforce stiffer penalties on offenders and focus on underground network cables, as several laws already criminalise vandalism.

Many petroleum products marketers are currently facing difficulty in getting loans needed to finance the lifting of diesel and aviation fuel in larger volumes from the Dangote Refinery due to the new 45 per cent Cash Reserve Ratio (CRR) recently introduced by the Central Bank of Nigeria (CBN).

It was gathered that the challenge from the increased CRR has allegedly hampered the ability of commercial banks to lend up to N15 billion to enable marketers purchase petroleum products from Dangote Refinery with cargoes.

This, according to industry sources, was contributing to why products from the local refinery had been slow in saturating filling stations across the country.

The Executive Director of Operations at Masters Energy Oil & Gas Limited, Mr. Felix Eribo, told THISDAY that the company had been getting offers from Dangote Refinery but that the company had not started lifting products from them in vessels due to the lack of adequate funding.

He said the banks are now handicapped to lend huge amount that would enable marketers to buy large volumes of products with vessels from the Lekki Free Trade Zone-based 650, 000 barrels per day refining facility.

The CRR is the minimum amount banks and merchant banks are expected to retain with the CBN from customer deposits and it carries no interest and is not available for use by the banks in their day-to-day operations.

It is one of the ways CBN regulates the country’s money supply, inflation level and liquidity in the country. The higher the rate, the lower the liquidity with the banks.

In early 2020, the apex bank’s Monetary Policy Committee (MPC) had increased CRR by five per cent from 22.5 per cent to 27.5 per cent and in September 2022, it moved it to 32.5 per cent in a move to tame inflationary pressure.

However, the MPC at the first meeting in 2024, increased CRR to 45.00 per cent amid double-digit inflation rate.

But Eribo observed that the increased CRR has diminished banks’ ability to lend huge amount of money that would enable marketers to flood the retail outlets with Dangote products.

”We have continued to get the offer but we have not started lifting with vessels, we are just buying with trucks. I was just discussing with them.

“The problem most of the marketers are having is this bank issue where CBN is making it difficult for banks to extend lending to buy full cargo.

“It’s because of this CRR that they introduced -the 45 per cent CRR. It’s seriously giving banks problem. So, they now have this singular obligor problem. Some of those banks are finding it difficult to cough out N14 billion to N15 billion to give to marketers”, the Masters Energy director stated.

But in the midst of the funding constraint, he said his company was working around it and would lift products with vessels in no long time.

He disclosed that Dangote Refinery allocated Masters Energy two million litres of diesel three weeks ago.

”So, right now, we are just using trucks to lift products from the refinery. They gave us two million litres last three weeks”, he said.

In terms of quality of product from the refinery, Eribo said it met Nigerian standard.

“What matters is that it meets Nigerian standard. Once it meets Nigerian standard, that’s not an issue again. We call it DPR Standard, once it meets their standard, it’s okay.

“Customers have not complained about the quality. You know when you have alternative, that’s when you have complaint. But I know they will meet up, they will keep improving,”, he added.

A former director-general of the Labour Party presidential campaign, Doyin Okupe, says the party’s presidential candidate, Peter Obi, never believed in the ideologies of the party.

The Labour Party, according to Okupe, was just a special purpose vehicle (SPV) for the presidential election.

Okupe spoke while featuring on Arise Television’s ‘The Morning Show’.

Okupe who resigned his membership of the Labour Party in January, on the grounds of ideological differences said his membership of the party ended the moment Obi lost the election.

He said: “The LP for us — for Peter Obi and I — and those in the leadership of the movement… The party was a special purpose vehicle (SPV). I have never been a labour person, I have never operated on the left before but we needed a platform and this was the only platform readily available to us.

“We thought that if we won the election, there are no fast and hard rules about ideologies. You can always find a shade between the left and the right. You can always move to the centre.

“We were hoping and praying that if we won, we would find a way to come to some consensus with the labour.

“Peter Obi is not a labour person. He is not a leftist person, he is a trader, he is a businessman just like me. I am a liberal democrat, I believe in liberal democracy, I believe in free enterprise.

“I am not a social worker. As far as I’m concerned, my membership of labour expired the moment we lost that election.”

Obi, an ex-governor of Anambra defected from the Peoples Democratic Party (PDP) to the Labour Party in the build up to the 2023 Presidential election.

Dangote Petroleum Refinery has again announced a further reduction in the prices of both diesel and aviation fuel to N940, N980 per litre respectively.

This is coming at the wake of its widely celebrated price reduction to N1,000 barely two weeks ago.

The price change of N940 is applicable to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above.

Speaking on the new development, the Head of Communication, Mr Anthony Chiejina, explained that the new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.

Chiejina said, “I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”

He further stated that the partnership will be extended to other major oil marketers.

“The essence of this is to ensure that retail buyers do not buy at exorbitant prices. The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce these new prices and hope that it would go a long way to cushion the effect of economic challenges in the country,” he added.

It would be recalled that the management of Dangote Petroleum Refinery announced a further reduction of the price of diesel from N1200 to N1,000 per litre barely two weeks ago.

This marks the third major reduction in diesel price in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre.

Nigerian President Bola Tinubu had also commended Mr Dangote for the initial price reduction, describing it as an “enterprising feat.”

Reacting to the latest development, the Director General of the Manufacturers Association of Nigeria (MAN), Mr Ajayi Kadiri, said that, “The decision of Dangote Refinery to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.”

He added that, “The trickle down effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.

“The reduction will have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture, contributing to easing the high inflation rate in the country; a lot of companies will be back in operation.”

The federal government on Monday, April 22, vowed to sell off the five electricity Distribution Companies (DisCos) now under the management of banks and Asset Management Company (AMCON) in the next three months to reputable technical power operators.

Recalled that Abuja Electricity Distribution Company (AEDC) is currently under the management of the United Bank of Africa (UBA), Fidelity Bank manages Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company while Ibadan Electricity Distribution Company is under the AMCON management.

They all found themselves under the new management arrangement owing to their inability to repay their loans.

The Minister of Power, Chief Adebayo Adelabu, who made this known yesterday to the Senate Committee on Power was in an oversight visit to the ministry in Abuja, that the energy distribution assets are technical and as such, they should be under the management of technical experts.

He informed the committee that tough decisions on the DisCos have become necessary because the entire Nigerian Electricity Supply Industry (NESI) fails when they refuse to perform.

According to him, the ministry will prevail on the Nigerian Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.

Adelabu said, “Lastly, on distribution. Very soon you will see that tough decisions will be taken on the DisCos. They are the last lap of the sector. If they don’t perform, the entire sector is not performing.

”The entire ministry is not performing. We have put pressure on NERC, which is their regulator to make sure they raise the bar on regulation activities.

” If they have to withdraw licenses for non-performance, why not? If they have to change the board of management, why not?

“And all the DisCos that are still under AMCON and Banks, within the next three months, they must be sold to technical power operators with good reputations in utility management.

“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry and it must be run by technical experts.”

The minister also noted that it has become necessary to reorganize the DisCos for efficiency.

He stressed that Ibadan DisCo is too large for one company to manage.

Responding to the decision to resell the DisCos, a member of the committee, Senator Isah Jibrin alleged that some of the operators have stripped the assets of the DisCos they took over in 2013.

He insisted that the operators of any revoked DisCo must be compelled to fix the assets as they were before handover.

Besides, Adelabu also dropped the hint that the Federal Government mobilized a company named Messr Zigglass with $ 200 million (N32 billion) to supply three million meters that were yet to be supplied to date.

“If you held N32billion for these years, where is the interest”, he asked.

According to him, President Ahmed Tinubu has directed that the contract be revoked.

He said the government will bridge the current eight million metering gap in the next four to five years.

The minister noted that the funding is coming from a seed capital of N100billion and N75billion.

He added that the Nigerian Sovereign Investment Authority (NISA) is coming to the aid of the ministry with the fund.

He described the power sector crisis as historical, stressing it has defied all solutions.

Adelabu blamed issues in the industry on uncompleted projects, urging the committee to approve funds for the completion of over 120 projects that litter across the country.

He also noted that the frequent grid collapse was due to a lack of Supervisory Control and Data Acquisition (SCADA).

Responding, the committee chairman, Senator Eyinaya Abaribe dismissed him, stressing that the ministry has been complaining about SCADA procurement in the last 12 years without addressing it.

Besides, Senator Danjuma Goje who is a member of the committee and a former Minister of Power, told Adelabu that nothing has changed in the sector.

Senator Lalong who responded to the issue of the company that abandoned a project after collecting $200million since 2021 noted that people must be punished for their crimes to serve as a deterrent to others.

Speaking Senator Osita Ozunaso called for the cancellation of the DisCos licenses, stressing “DisCos are the problem.”

Meanwhile, Senator Neda Imasuen advised that since the present Managers of the power sector have failed over the years, the government should handle them over to new ones even foreigners.

The same committee proceeded to the Transmission Company of Nigeria (TCN) on the same oversight function, where the Managing Director, Sule Abdulaziz urged the committee to assist in raising funds for the completion of over 120 projects.

He urged the committee to also help in addressing the issue of right of way. The TCN boss sought the committee to make a law that would give the right of way to the projects.

According to him, vandalization is a huge challenge hampering the projects in the North East and South East.

He revealed that the company is collaborating with a Chinese firm to build a super grid.

The N2 billion that TCN gets from the 2024 budget allocation can only pay compensation, he said, pleading for an increased budget.

He added there is a need for funding for new substations.”

In her presentation, Independent System Operator (ISO) Executive Director, Engr. Nafisat Ali revealed that gas has become a major constraint in the industry. She said, “Today there is no gas. We need gas.”

She said the DisCos were still rejecting load despite the power shortage in the country. “The DisCos don’t abide by allocation. That is the challenge,” said Ali.

Adelabu had earlier informed the committee that the federal government owes the Generation Companies over N1.3trillion and also owes the gas suppliers $1.3billion.

He said the gas suppliers have refused to supply more gas because of the debt.

The minister urged the committee to address the debt matter.

Addressing reporters at the end of the visit, Abaribe noted that the committee would interface with the federal government to settle the gas debt.

He said: “Every option for us is on the table. If the option is for us to interface with the federal government to do their part, because it is a debt, so they have to pay their debt, we will do so.”

He said he would not doubt the minister that the World Bank SCADA project will be completed in two years.

According to him, the committee will focus its oversight on the ministry and the TCN concerning the implementation of the World Bank project.

He noted that the committee has invited the NERC and other stakeholders to answer some questions concerning the recently reviewed tariff on April 29.

The chairman said the committee would review the penalties for power assets vandalization.

There are strong indications that domestic airlines operators may reduce ticket prices for passengers due to the imminent supply of aviation fuel, otherwise known as Jet A1, by Dangote Refinery.

Considering that there had been sustained increase in the price of jet fuel over the last four years, indigenous carriers were forced to enhance operations by raising ticket prices.

The 12 scheduled airlines, including Air Peace, Aero Contractors, Arik Air, Max Air, Azman, Dana Air, Ibom Air, Green Africa, Overland, Rano Air, ValueJet and United Nigeria Airlines, on February 20, 2022, jointly agreed to increase airfares by 100 per cent to meet up with operational costs.

However, with operators looking at a possible crash in the price of Jet A1, passengers might experience a drop in airfares, Vanguard has gathered.


Projections

The Managing Director of Aero Contractors, Captain Ado Sanusi, told Vanguard that although the price of Jet A1 had been steady, airlines would appreciate a price decrease.

Sanusi said: “As operators, we have no idea of the refinery where marketers buy Jet A1, but what we look at is the price. If the price drops, whether it is from Dangote refinery or refineries outside the country, we will appreciate it.

”The price has been steady and that is what we use in making our projections. The price of jet fuel has been between an average price of N1,200 and N1,400 per litre.


Price drop

On whether the imminent supply could result in a price drop, he added: “It depends on what price Dangote refinery sells Jet A1. If it sells below the market price, then, of course, it would drop price.

”However, if it is not selling below the market price, there won’t be a drop in price. Meanwhile, it is dependent on what crude oil is being sold to him and how much it costs him to refine. What we think will bring down the price of Jet A1 is the cost of freight.


Immediate impact

“If Port Harcourt, Warri and Dangote refineries could give us enough jet A1 for some time and we have steady prices, it will definitely have an impact on price. However, that won’t be possible in a few days. It has to be consistent for a few weeks and even months.”

The Naira appears to be up against a fresh threat from two crypto exchange platforms, just six weeks after the clamp down on Binance operations in Nigeria. The national currency had slumped badly in the forex market in the weeks preceding the clamp down on Binance, exchanging for as much as N1,950 in mid-February.

But soon afterwards, the Naira started to recover and was at a time N1,200 until the middle of last week when it lost some grounds to the dollar again.

Observers blamed its earlier misfortune on alleged manipulation of the market by Binance and are citing the new crypto exchange platforms BYBIT and BITGET as the cause of the latest slip.

But Vice President Kashim Shettima declared yesterday in Abuja that the Naira would continue its upward mobility against the dollar.

An investigation by The Nation also showed that many speculators who had invested in the dollar in the hope that the naira would go further down are now counting their losses.

On Monday last week, the Naira was N1,100 to a dollar at the black market. It depreciated to N1,148 by Tuesday and N1,169 on Friday. Observers believe this is on account of the operations of the peer to peer platforms and say government must step in to stop the naira slide.

Following the recent recovery of the naira, the global investment banking, securities and investment management firm Goldman Sachs Group, Inc. rated it one of the best performing currencies around the globe.

The firm had initially predicted a naira to dollar exchange rate of 1,200 by year-end 2024 but later said the Nigerian currency could exchange for 1000 to a dollar or even below provided the authorities are able to maintain the tempo of their economic reforms.

This bullish forecast, it said, followed capital inflows and interest rate adjustments, aiding the naira recovery from substantial losses incurred due to two devaluations since June, following the government’s relaxation of currency controls.

Naira’ll continue to appreciate against dollar, Shettima tells LCCI team

But Vice President Shettima is optimistic that the naira is on course to regain its status as a currency to reckon with.

“The naira went haywire and some people were celebrating. But inwardly, we were laughing at them because we knew that we have the leadership to reverse the trend,” the VP’s spokesman, Stanley Nkwocha, quoted him as telling his visitors.

He added: “Asiwaju knows the game, and truly the naira is gaining and the difference will drop further.”

Shettima said government’s decision to end fuel subsidy and unify the multiple exchange rate was necessary to address the challenges facing the country.

On efforts to boost the power sector and generate jobs for youths, he said: “We are determined to ensure that we generate jobs for our youths.

“Honestly, the President’s obsession is to live in a place of glory, to transform this country to a higher pedestal.

“He wants to leave a legacy, one of qualitative leadership, because the hope of the black man, the hope of Africa rests with Nigeria.

“I want to assure you that President Bola Ahmed Tinubu is one of you. He understands your ecosystem. In this government, you have an ally and a friend,” VP Shettima further noted.

The LCCI delegation presented recommendations to the VP, including the need for more innovations to address insecurity and promote credit access, stimulate investment and support entrepreneurship.

“This could include targeted interventions such as concessional lending facilities, loan guarantees and interest rate subsidies tailored to the needs of SMEs and key sectors of the economy like agriculture, manufacturing and power technology,” he added.

Other members of the LCCI on the delegation included Chief John Odeyemi, Chief Dr. Nike Akande, Asiwaju (Dr.) M. Olawale-Cole, Prince Funayo Okeowo, Gwueke Ajaifa, Sir Ladi Smith, Abimbola Ola, Olufemi Bakare, Ayotunde Coker, Tolulope Adeleke, Stephen Alangbo, Dr Chinyere Almona and Mrs Temitope Akintunde.

In a separate meeting, VP Shettima urged Nigerians to live peacefully among themselves and learn to accommodate each other.

He made this appeal when a delegation from the Association of National Accountants of Nigeria (ANAN) led by its President, Dr. James Neminebor, paid him a visit at the Presidential Villa, Abuja.

He emphasised the need for tolerance and togetherness, citing the example of Jos, which he described as a hospitable city with a diverse population.

He also asked the association to channel its request for land in Abuja through the Deputy Chief of Staff to the President, Office of the Vice President, to enable him to follow it up with the relevant authorities.

He said: “No matter how long the night is, it must give way to the light of the dawn. The crisis we have in Jos will soon be over.

“Jos is the most hospitable city in this country in terms of weather. If we can harness the potentials of Jos and the Plateau as a whole, I believe that we can transform this nation into a better place.

“In one way or the other, we should learn how to accommodate each other; we should learn how to embrace one another. My SSA Media, Stanley Nkwocha, is a Jos boy.

“Jos is ideal; Jos is not an ethnic identity. Some of the Hausas, the Fulanis, the Kanuris and the other ethnic groups living in Jos were born and bred in Jos. They don’t have any other place to call home.

“The beauty of the Jos experience is that we have the generality of Nigerians called Northern Igbos. He (Nkwocha) is Igbo; Owelle Rochas Anayo Okorocha is a Northern Igbo. This gentleman (Nkwocha) speaks Hausa more than I do. We also have Sir Emeka Offor and so many of them.

“I believe that we should learn to imbibe in Nigeria that culture of tolerance, of togetherness, because I will rather be a small fish in a big pawn than to be a big fish in a small pawn.

“We are a kaleidoscope of colours. The sooner we realise it, the better,” he said.

Earlier, ANAN President, Dr. Neminebor, told the VP that there was need to introduce a new value orientation where the issue of discipline will become a culture for Nigerians, even as the association recommended the setting up of Anti-corruption Recovery Investment and Management Commission to prevent the re-looting of recovered assets in the country.

Currency speculators count losses as naira rises against dollar

It was gathered that many speculators have lost money following the recent resurgence of the naira.

Such speculators had invested massively in the dollar in the hope that naira would depreciate further.

An investigation by our correspondent revealed that many of the currency hoarders who had envisaged that the value of the naira would depreciate further as low as N2,000 or more to $1 as anticipated in mid-February, have all being proven wrong as the nation’s legal tender has witnessed a rebound.

Some black market operators reportedly lured some of their patrons to dollarise their cash as the naira, in their calculation, would depreciate further.

However, the naira recorded a rebound even beyond the expectations of many, such that the gains of the naira have been the loss of many currency speculators who borrowed money to dollarise their assets.

Confirming this development, one of the BDC operators in Mushin, Lagos, who simply gave his name as Adamu, said: “Some BDC operators lured individuals to buy dollars when it was between N1700-N1800 to the dollar. But now that the naira has recorded a rebound, most of them are counting their losses, no doubt.

“It’s very painful that they had to stake a lot of their hard earned money to do currency speculation.”

Chukwudi Iwuchukwu, a financial lawyer, noted that some individuals who bought N10 million worth of dollars at the black market on February 24 suffered huge losses as the current value of their liquid asset is worth only half the sum.

“If you bought N10 million worth of dollars at the black market on February 24, it’s currently worth about N5 million,” he said.

Writing on his former X handle, A. Ayofe @abdullahayofel last Tuesday recounted the experience of one of the currency speculators who is now in debt as a result of his wrong investment decision.

“Someone I know borrowed N18 million from a money lender to buy $10,000 at N1,800 to $1 in February to pay back N19 million in May (three months) when the dollar gets to say N2,000 or more.

“Today, that N18 million is worth N11 million at N1,100 to $1. He is now looking for where to get extra N8 million to clear his debt as the three months is fast approaching.

“He used his bungalow as collateral. The problem now is that before May, the money could further reduce to N9 million at N900 to $1, making it impossible to retrieve his house.”

Dr. Aminu Gwadabe, the National President of Association of Bureaux de Change Operators of Nigeria (ABCON), said the otherwise awkward situation of the naira in the last few months has given way to optimism.

He said: “It is really exciting and interesting as we witnessed profound and significant naira rebounds faster than expected.

“It is a triumph of reality over behaviours that have no economic fundamentals.”

Gwadabe said all those who lost their investable funds during this period have to accept their fate.

“As regards the complaints of people borrowing money to speculate and make a margin, my take is that for any economic activity, there is reward and there is loss.

“So it is a gamble where you either win or lose. They should move on and next time be careful in jumping into what they cannot control.”

On the way forward, the ABCON boss appealed to the CBN and the fiscal authorities to proactively continue to induce confidence in the economy, strengthen stakeholders engagement, quick and fast responses including service delivery.

“Other hanging fruits include harnessing proceeds of diaspora remittances to inject liquidity through the BDCS. There should also be concerted efforts from all agencies of government to de-risk non-oil exports products to have a paradigm shift in our sources of foreign exchange to boost our external buffers.”

He added: “The excellent job of the security agencies in tackling corruption and money laundering should remain the cornerstone of this government. Above all, we must all as Nigerians have a change of mindset.”

Oil marketers are gearing up to load refined petroleum products from the Port Harcourt Refining Company, as workers at the facility race to get it set for production on the directives of the Nigerian National Petroleum Company Limited.

Dealers confirmed on Friday that the PHRC was almost set to start releasing products, projecting a N500/litre price for Premium Motor Spirit, popularly called petrol, from the Port Harcourt refinery in Rivers State.

They also expressed optimism that the Dangote Petroleum Refinery would crash PMS price below N500/litre when it starts releasing products. Dangote refinery is projected to start supplying petrol to the market in May, as it currently supplies diesel to dealers.

On Thursday, it was reported that operators under the aegis of the Independent Petroleum Marketers Association of Nigeria, Rivers State Branch, told our correspondent that they paid a visit to the Port Harcourt refinery and found out that the plant might start releasing refined petroleum products this month.

This, according to them, was because the plant had been largely completed, a development that was confirmed on Friday by the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu.

According to the IPMAN PRO, marketers, particularly independent dealers, have started making plans on how to purchase and load products from the refinery, adding that operators are optimistic about a price reduction from the refinery.

Asked whether the refinery has put a price on the PMS to expect from the plant, Ukadike replied, “Not yet. However, NNPC is still giving us PMS at N567.7/litre, so we want to believe that the Port Harcourt refinery should give us the product at N500/litre or less than that.”

Ukadike stated efforts were really ongoing at the plant to begin the production of petrol and other refined products, as recently announced by the NNPC.

On March 15, 2024, it was reported that the Group Chief Executive Officer, NNPC Ltd, Mele Kyari, stated that the Port Harcourt refinery would commence operations in about two weeks.

He also stated that mechanical works had been completed on the Port Harcourt, Warri, and Kaduna refineries, stressing that the Kaduna refinery would commence operations in December.

The NNPC boss had disclosed this during a press briefing after he appeared before the Senate Ad-hoc Committee investigating the various Turn Around Maintenance projects of the country’s refineries.

He said, “We did a mechanical completion of the refinery that was what we said in December. We now have crude oil already stocked in the refinery. We are doing regulatory compliance tests that must happen in every refinery before you start it, and I assure you that this Port Harcourt refinery will start in the next two weeks.

“Completing the mechanical work means that you are done with the rehabilitation work, now you have to test to see how it works. Of course, we have also completed the mechanical work on the Warri refinery. It is also undergoing regulatory compliance; processes that we are doing with our regulator and this will soon be completed and it will be ready.

“Kaduna refinery will be ready by December. We have not reached that stage in Kaduna, but we promise Kaduna will be delivered by December.”

Kyari had also told the Senate that over 450,000 barrels of oil had been stocked into the Port Harcourt refinery.

Meanwhile, Ukadike also told our correspondent on Friday that marketers were putting in place measures that would enable them to purchase products in bulk, going by the fact that the Dangote Petroleum Refinery did not sell less than one million litres when it commenced the sale of diesel.

“So when they resume at Port Harcourt refinery and they key into what Dangote has done by selling in bulk, it means that we the independent marketers particularly in the South-East should be able to have a company that can be able to buy up to four/five million litres from the refinery.

“We are also planning to reach NNPC Trading to see whether they will be able to send 20,000 metric tonnes of PMS to our depots, strictly for independent marketers.

“From every indication, the Port Harcourt refinery is almost set to start releasing products. The government has told us that the plant will start production, at least by the end of this month. So we don’t want to be caught unprepared, for instance, if they say we should pay for two million litres and we can’t be able to pay,” the IPMAN official stated.

Ukadike also stated that oil marketers were discussing with their banks, adding that the financial institutions “are ready to fund such bulk allocations so that we can be able to distribute it nationwide because we have the reach.”

The Port Harcourt Branch Chairman, IPMAN, Tekena Ikpaki, had earlier told our correspondent that the management of the Port Harcourt refinery had assured dealers that the plant would begin operations soon, as operators in Rivers State were set to take product from the facility.


Dangote may crash prices

The oil dealers are also awaiting the potential entry of PMS from the Dangote refinery into the domestic market, with hopes that the company would crash the price of petrol below N500/litre.

The anticipation stemmed from the manners in which the Dangote refinery recently crashed the price of diesel to N1,200/litre in March when the cost of the commodity was around N1,600. The refinery later crashed the price of diesel to N1,000/litre.

The National President, IPMAN, Abubakar Maigandi, said the refinery might sell petrol at N500/litre or below.

Linking this to the rebound of the naira against the dollar, Maigandi told one of our correspondents that the product might be sold at a relatively cheaper price.

While saying the refinery is yet to begin the sale of petrol, the IPMAN president noted: “We are happy the price of diesel is coming down, thanks to Dangote refinery. As for petrol, the sale has not started. We hope petrol too will come down to like N500.

“But if the dollar continues falling, it may go back to the normal rate”.

However, the Major Energies Marketers Association of Nigeria said the PMS from the Dangote refinery would be sold at the import parity rate.

The Executive Secretary of MEMAN, Clement Isong, said, “I expect the price to be at import parity. Why (will it go down to N500 or low)? Petrol pricing is at the international price. It is based on an international reference. You buy petrol based on a willing-seller, willing-buyer basis,” Isong said in a telephone conversation.

Meanwhile, the Chief Executive Officer of Dangote Group Aliko Dangote, has hinted that in few days diesel will be sold at N1000 nationwide, adding that profiteers overtime have benefitted from the astronomic rise.

Dangote made this disclosure in Gombe while fielding answers to journalists shortly after attending nuptial ceremony.

He said, “Some persons have held the business for a very long time; they were profiteering but we decided that we can afford to sell it at N1000 which is 60 per cent drop. Areas like here (Gombe), Borno, Bauchi it was selling for N1,700 – N1,800 but right now in the next few days, you will not buy diesel for more than N1000 anywhere in Nigeria.”

Automotive gas oil (AGO), also known as diesel, sold for as high as N1,500 at fuel stations in Lagos and Abuja on Saturday.

TheCable observed that Mobil and TotalEnergies fuel stations in Festac Town, sold for N1,300 per litre and N1,500 per litre, respectively.

In Abuja, the price of the product was N1,450 per litre at Eterna, Banex, and N1,500 a litre at Emadeb, Kado.

The prices have remained the same despite Dangote refinery announcing a reduction in its costs of diesel to marketers from N1,200 to N1,000 on April 16.

Speaking on the issue, Abubakar Maigandi, president, Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers still have old stocks, hence the current price of the product.

“It started recently. And there’s been an old stock. Very soon, I know the price will be normalised,” Maigandi said.

He also said the drop in price favours oil marketers buying one million litres directly from Dangote refinery, adding that some IPMAN members have to buy from third parties.

“Definitely, you know Dangote refinery is selling for N1,000. But it is only for those who are buying one million litres and above. Those who are buying one truck from those one million litres will definitely add their profit,” he said.

He said this is why independent marketers are trying to “see how we can go closer to Dangote in terms of purchase so that the association will carry the volume and share it to the individual marketers who can not be able to buy one truck so that they will be able to buy it at a lower rate”.

Maigandi said the reduction of the price by Dangote refinery is a good step in the right direction.

On April 2, it was reported that Dangote Refinery fixed the minimum volume of diesel that can be purchased by oil marketers at one million litres.

Maigandi confirmed that the refinery started selling the product to marketers on March 2.

Close allies of former President Muhammadu Buhari who served in his administration as ministers, have come under the radar of the Economic and Financial Crimes Commission (EFCC), over alleged multi-billion naira fraud allegations.

The EFCC, Saturday Sun has gathered, is zeroing in on key ones who have been on the anti-graft agency’s watch list for multiple allegations.

Some of the top ministers under the EFCC radar, are believed to have fled the country to evade arrest and possible prosecution by the EFCC.

According to top EFCC sources, former Minister of Aviation, Hadi Sirika, and his counterpart, who served as minister of Justice and Attorney-General of the Federation, Abubakar Malami, are among top former ministers being trailed by the EFCC.

The two ministers were among the most powerful during Buhari’s reign and were named in many multi-billion naira cases while they were in office.

Close allies and relatives of the former ministers have already been arrested and quizzed by operatives of the EFCC. Their assets and bank accounts linked to what the EFCC believes to be questionable sources, have also been placed under close monitoring.

According to a source, Malama’s case appears to be more severe. There have been four petitions against him since he left office in May, 2023.

According to one of the petitions, Malami is being investigated for distributing 30 car gifts worth over N1billion to his supporters in Kebbi State, ahead of the 2023 general elections.

“The car gifts included 14 Mercedes Benz, eight Prado SUVs, four Toyota Hilux and four Lexus LX. Beneficiaries of the car gifts were social media influencers, executive members of Malami’s foundation and women support groups,” one of the petitions read.

In another petition, he was accused of illegally auctioning sea vessels holding crude oil seized by the Federal Government, violating Section 31(2) and (4) of the EFCC Act 2004 and assuming the role conferred on the EFCC. Malami came into the limelight following his appointment by Buhari in 2015. He allegedly duplicated payment of $16.9 million fees to two individuals who are said to be friends as new lawyers for the recovery of the loot traced to a former Nigerian Head of State, Gen. Sani Abacha, after a Swiss lawyer, Enrico Monfrini, hired and fully paid by the previous government to help in the recovery, had completed his brief.

Another allegation was the payment of $496 million to Global Steel Holdings Ltd (GSHL) as settlement for the termination of the Ajaokuta Steel concession nine years after the Indian company had waved all.

Malami is also accused of singlehandedly selling assets worth billions of naira forfeited to the EFCC by politically-exposed persons.

The petitions noted his role in the $419 million judgment debt awarded to consultants who claimed to have facilitated the Paris Club refunds to the states.

“The strange agreement to pay Sunrise Power $200 million compensation in its dispute with the federal government over the Mambilla Power project is another issue the EFCC should look at. The duplicated legal fees in the transfer of $321 million Abacha loot from Switzerland to Nigeria is also there,” the petitioners claimed.

There are also several petitions against former Minister of Aviation, Hadi Sirika. In 2017, the minister was said to have spent $600,000 on logo design contracted to a Bahraini company before the project, then known as Air Nigeria, was suspended.

The Buhari administration later budgeted up to N800 million between 2017 and 2018 when the execution of the project resumed.

Sirika was also under scrutiny for spending N12 billion to purchase 10 fire trucks, with the cost of each of the trucks put at N1.2 billion.

Abubakar Ahmad Sirika, immediate younger brother to the former minister, was recently arrested by operatives of the EFCC. While in office as minister, Sirika was accused of conspiracy, abuse of office, diversion of public funds, contract inflation, criminal breach of trust and money laundering amounting to N8,069,176,864. According to the EFCC, the sum is for four aviation contracts from the former minister to a company known as Engirios Nigeria Limited, owned by his younger brother.

Also, Saturday Sun reliably gathered that the EFCC is concluding plans to charge the pioneer Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, upon conclusion of the ongoing investigations.

Other top directors and staff of the ministry are also expected to be charged alongside the former minister. However, EFCC spokesman, Dele Oyewale couldn’t be reached for reaction at the time of filling this report.

Residents of Okuama community, Delta state, have instituted a suit against the Nigerian Army over an alleged breach of their fundamental human rights.

In the suit marked FHC/WR/CS/41/2024 and filed before a federal high court in Warri on Thursday, the plaintiffs are seeking N200 billion as general and exemplary damages.

On March 14, a group of army personnel comprising a lieutenant colonel, two majors, one captain and 12 soldiers were killed in the community.

Since then, there have been military operations in Okuama in a bid to find the perpetrators.

In the suit, the applicants averred that they have been subjected to accusations and media trials over the incident.

They claim they have been subjected to collective punishment by the army without any police investigation or any public inquiry indicting them for the crime.

The applicants further averred that they were displaced from their homes, their properties destroyed and many killed.

They are seeking an order from the court “for the enforcement of the fundamental rights to the dignity of the human person, right to a fair hearing, right to private and family life, freedom of movement and right of choice of place of residence and right to own property of the applicants and residents of the Okuama community”.

They are also seeking an order restraining the army from further violating their fundamental rights and an order enabling the applicants and residents of Okuama community to take back possession of their land.

Those named as applicants in the suit include Victor Akemor, Madam Omotiwori Olarehor, Victor Odi, Okrika Emmanuel, Austin Eferemua, and Evelyn Edjekola.

Others are James Ubredu, David Oghenewede, Lucky Orode, Iwriogbo Best, Felix Orhiunu, Bernard Michael, Oghenekobiruo, Vero Joseph, Ebikawe Emmanuel, Francis Uphurie, and Belvis Adogbo.

The plaintiffs are suing for themselves and the public interest of the Okuama community residents.

The lawyers in the suit are Malcolm Omirhobo, Akpokona Omafuaire, Seprebofa Oyeghe, O. L. Ofuasia, and Ernest Ogbaga.

The bid by Africa’s richest man, Aliko Dangote, to merge his sugar, salt and rice companies into one for improved efficiency and robust consolidation will not proceed for now.

Integrating the entities would have enabled Dangote Sugar, Nascon Allied Industries (already listed on the Nigerian Exchange (NGX) and the billionaire’s less-known rice company to leverage economy of scale as one business to gain higher access to capital and boost value.

But the move failed to meet a key requirement for the transaction to progress, Nascon Allied Industries said in a regulatory filing on Thursday.

The suspension “centred around the current non-operational status of Dangote Rice Limited” by the Securities and Exchange Commission (SEC), it added.

Nascon Allied Industries, which manufactures salt in addition to spices and seasoning, noted that SEC’s review came with comments and recommendations. It implies the three entities will return to the drawing board to put things right to continue getting final approval.

The proposal for the business combination was first announced last July, after which the parties to the merger presented the plan to shareholders for consideration. An acceptance of the terms and conditions by the merging entities later followed.

The companies are part of the much bigger Dangote Industries Limited, and Dangote Sugar has said the transaction aims “to consolidate and solidify the Group’s market position and ultimately reposition the Group to harness future opportunities in the foods industry.”

In December 2021, BUA Group – one of Dangote Industries’ biggest rivals in the cement and consumer goods sectors – consolidated its sugar, rice, flour, pasta and edible oils units into a single firm, later listing it on the NGX as BUA Foods.

Estimated at N720 billion at listing, BUA Foods’ is now worth N6.8 trillion in market value less than four years after.

If the three Dangote companies meet the conditions for approval and the transaction is completed, Dangote Sugar and Nascon Allied Industries will be delisted from the NGX.

Both companies, which at that point will have alternated with Dangote Rice, will be relisted on the stock exchange under a single name.

By Okiki Adeduyite


https://cdn.punchng.com/wp-content/uploads/2024/04/18141627/Karl.jpgKarl-Erivan Haub

An investigation has claimed that a German-American billionaire, who disappeared under mysterious circumstances near Switzerland’s iconic Matterhorn peak six years ago, is suspected to be residing in Moscow with a Russian mistress.

In April 2018, Karl-Erivan Haub, a retail tycoon, went missing while training for a ski mountaineering race in Zermatt, Switzerland.

The billionaire was last spotted heading up the mountain in a lift one morning by himself.

His trainer said this was unusual, as he was known to be safety-conscious and well-prepared.

He never made it back to his hotel.

Despite an extensive six-day search involving multiple helicopters and alpine rescuers, his body could not be located.

In 2021, three years later, a German court declared him legally dead.

Haub is the former managing director and part owner of German supermarket and retail giant Tengelmann Group.

He left behind his wife, two children and a company of approximately 75,000 employees.

His younger brother, Christian Haub, was named the sole CEO of Tengelmann after he disappeared.

In 2021, Christian, swore in a courtroom, stating that there was no indication that the billionaire, who was believed to have a net worth of £5.2 billion, was still alive.

However, a recent investigation by German broadcaster RTL has allegedly located Haub in Moscow, accompanied by a significantly younger woman named Veronika Ermilova.

According to the report, Haub was leading a secret double life with Ermilova, who is said to have connections to a Russian event management agency.

According to the investigation by RTL and media outlet Stern, Haub, who would now be aged 64, is alleged to have made 13 phone calls to Ermilova’s phone in the three days leading up to his disappearance in 2018.

The phone conversations were significant, with one lasting over an hour, which raised suspicions that he may have been planning to stage his own death with assistance from Moscow and Ermilova.

RTL journalist Liv von Boetticher said she had obtained photos in the fall of 2022 that appeared to show Haub in Moscow in February 2021.

“To my knowledge, these photos were available to Christian Haub at the time when he gave a sworn statement to the Cologne district court in May 2021 that he had ‘no reliable evidence’ that his brother was still alive,” she said.

Boetticher said that there was “an alleged lover of Karl-Erivan Haub with whom he had intense telephone contact before his disappearance and who has connections with the Russian domestic intelligence service the FSB.”

In an interview with Die Welt, a German national daily newspaper, Boetticher raised the possibility that Haub may have been collaborating with the Russians.

“He could have been acting as a kind of influence agent for Russia in Germany… It’s not about an agent with a floppy hat and a trench coat or a James Bond, but about influence on politics and the economy.

“(His disappearance came) at a time when Tengelmann was doing pretty badly… and was expanding into Russia with the Obi DIY chain, for example.’

“I am sure it was not a skiing accident, but a staged escape.”

Boetticher stated that the businessman’s motivation is likely his strong business ties to the country.

“Our suspicion is that dealings with Russia or with Russian business partners could have got Karl-Erivan in trouble in the West,” she said.

The National Security Adviser, Malam Nuhu Ribadu, on Thursday said President Bola Tinubu deliberately appointed northerners into key offices.

Ribadu, who spoke in Sokoto, said the President picked northerners to take charge of strategic places because he wanted problems in the region squarely addressed.

Traveling across Quang Binh to stunning cinematic locations

Delivering lecture on “Navigating The Maze: Addressing Multi-Dimensional Insecurity Challenges In Northern Nigeria” as part of the activities marking the 38,39,40 and 41st combined convocation of Usmanu Danfordiyo University, Sokoto, he lamented that the North was facing myriad of challenges, ranging from insecurity and out-of-school children, among others.

He added that, the poverty index in the region was alarming.

“At the time he (Tinubu) was forming this government, he said the North was very dear to his heart that he would do everything to address its challenges.

“This is why he appointed northerners into key offices. He handed over security and Defence to the North. He gave us both ministers for Agriculture and Education. He also gave us Minister of Health and Foreign Affairs in his quest to turn around the fortune of the region.

“He gave us chance. Now the rest is on us, we northerners. Lets put our differences aside and work for the betterment of our region and Nigeria,” he said.

On the insecurity, he said the present government had achieved a lot, citing cases of some bandit commanders who were recently killed by security operatives and tens of thousands of kidnapped victims rescued without paying a dime.

“As I am talking to you, there is no known case of student abduction of students that is unresolved anywhere in the country. And where are bandits’ leaders like Ali Kawaje, Boderi, Damina and Dangote? They have all been eliminated.”

“In the past we have had cases of organised terrorism attacks by insurgents groups like what their attacks on our train, military formations, or churches. Since we got in there has not been anything like that.

“And go to Niger Delta, it is peaceful today. In the East people were been stopped and killed, there were over 40 police stations shut down but all of them are now functional. All these changes happened because we work.

“We will continue to work. We are not jokers. We are serious and in Sha Allah, Nigeria will see the difference,” he said

According to Ribadu, Tinubu’s government is adopting counterinsurgency strategies aimed at winning the hearts and minds of the local population, isolating insurgents from their support base and preventing the recruitment of new members.

“These strategies involve engaging with communities, providing humanitarian assistance and promoting reconciliation and deradicalization programme.”

“This sort of approach is a core focus of the Renewed Hope Agenda. Its initiatives include infrastructural development, job creation, education and healthcare provision as well as efforts to tackle poverty and inequality,” he said.

Two personnel of the Nigerian Army have been arrested for vandalising and stealing armoured cables at the Dangote Refinery in Lagos.

The suspects are identified as CPL Innocent Joseph and L/CPL Jacob Gani.

Dangote Refinery owned by Dangote Group was inaugurated on the 22nd of May 2023 in the Ibeju-Lekki area of Lagos State.

When in full operation, it is expected to have the capacity to process about 650,000 barrels per day of crude oil, making it the largest single-train refinery in the world. The investment is worth over $19 billion.

According to a military signal obtained by SaharaReporters, the soldiers were arrested last Sunday after they were caught moving out of the facility with 897 armoured cables cut to size.

The signal read, “On 14/04/2024 at about 1420hrs, two military personnel named CPL Innocent Joseph and L/CPL Jacob Gani, who were identified to be working with DFL/Refinery came into the facility with one Acura jeep with registration number LAGOS JJJ 594 HS.

“On the process of exiting the DFL main gate during the routine search, they were caught with eight hundred and ninety seven cut to sizes armour cable.

“During investigation, they confessed to get this cable at the refinery with the help of one Smart which is at large. The vehicle is under custody together with the exhibits.

“The OC Army have been informed and the soldiers have been taken to custody while investigation continue. The pictures of suspects and exhibits are attached for your perusal, please.”

Iran has threatened to use "weapons it has never used" in a "painful and severe" response if Israel launches airstrikes in retaliation to Tehran's weekend salvo.

Israel earlier vowed that it would respond to Iran's unprecedented drone and missile attack, amid fears that the Middle-East is teetering on the edge of an all-our war.

As the West urged for calmer heads to prevail in the Jewish state, Iranian Parliament's National Security Committee Abolfazl Amoue stated that Iran is "prepared to use a weapon that we have never used" if Israel responds further.

Speaking on Monday, he said Israel should consider its next steps and "act wisely."

Iranian President Ebrahim Raisi also warned Israel it will face a "painful response" if it takes the "slightest action" in response to his country's attack.

The threats raise fears that Iran's lacklustre drone and missile barrage - 99 percent of which was intercepted by Israel and its allies - could further push Tehran to develop nuclear weapons.

Iran has threatened to use "weapons it has never used' in a "painful and severe" response if Israel launches airstrikes in retaliation to Tehran's weekend salvo.

Iran has several nuclear research sites, two uranium mines, a research reactor and uranium processing facilities - including three uranium enrichment plants.

A UN report in 2007 found that Iran had halted an alleged nuclear weapons programme in 2003, and a report from the International Atomic Energy Agency (IAEA) in 2018 said it had found no evidence of nuclear weapons activity after 2009.

In 2015, Iran signed up to the Joint Comprehensive Plan of Action - or Iran Nuclear Deal - along with countries including the US, UK, France, Russia and China, imposing restrictions on Iran's nuclear facilities.

However, the agreement took a hit in 2018 when the US - under president Donald Trump - withdrew and imposed new sanctions on Iran under a "maximum pressure" policy, essentially cutting Iran off from the international financial system.

In November 2023, an IAEA report estimated Iran's uranium stockpile was 22 times larger than the limit agreed upon in the 2015 Iran Nuclear Deal.

In December, the UN's watchdog warned that Iran had escalated the rate at which it is enriching uranium to up to 60 per cent purity, levels close to weapons-grade.

The report said Iran has enough uranium enriched to up to 60 per cent purity for three atom bombs by the International Atomic Energy Agency's definition.

Its leaders have long maintained it 'does not need' nuclear weapons and is only enriching uranium for peaceful purposes.

However, for four decades, the Islamic Republic's rulers have pledged to destroy Israel, and Tehran's latest threat again raises the spectre of a nuclear-armed Iran.

Meanwhile, Tel Aviv has worked to stymie Iran's nuclear weapons programme - including the suspected assassinations of Iranian nuclear scientists.

United Nations nuclear watchdog chief expressed concerns on Monday about Israel potentially targeting Iranian nuclear facilities in retaliation, as he announced inspections paused on Sunday and Monday would resume nonetheless.

IAEA Director General Rafael Grossi said Iran closed its nuclear facilities temporarily over 'security considerations' and that while they reopened on Monday, he kept IAEA inspectors away 'until we see that the situation is completely calm.'

When asked about the possibility of an Israel strike on Iranian nuclear facilities, Grossi said, "We are always concerned about this possibility."

He urged "extreme restraint."

As Benjamin Netanyahu continues to debate what retaliation it will unleash, Prime Minister Rishi Sunak is expected to use a phone call with the Israeli premier today to urge him to show "restraint."

But leading voices in defence, including respected former minister Ben Wallace, have urged Western leaders to support Israel in its response to 'bullies' like Iran - and to even stand up to the regime themselves if necessary.

As Benjamin Netanyahu walks a 'tightrope' between escalation and deterrence, former defence secretary Wallace did not mince his words of warning.

"The only way to deal with a bully is to retaliate," the said.

"The only option when Iran and Russia hit, I have concluded, is to hit back twice as hard and not stop until they get the message."

Despite the unprecedented scale of Iran's weekend attack, experts have said it exposed Iran's 'lacklustre' arsenal, signalling how its outdated aircraft and defences would be no match for Israel's in the event of full-scale war.

No fewer than 15 federal government ministries, departments, and agencies (MDAs), including the Presidency, and their associated agencies have allocated a staggering N8,997,097,623 billion to welfare packages out of the over N46 billion earmarked for vague “miscellaneous” expenses across board in the 2024 national budget, investigations by this newspaper has revealed.

These MDAs exploit this ambiguous budget line to allocate funds to non-viable causes while the country and its citizens, particularly those in the private sector, grapple with economic hardships.

The Budget Office of the Federation received the largest allocation for miscellaneous expenses, with a whopping N920,301,938,040 billion earmarked, taking advantage of cozy relations with a compromised National Assembly, which often colludes to inflate budget figures for clandestine agendas.

Notably, the Presidency alone allocated a sum of N1,574,940,619 billion in the 2024 budget. A breakdown of this allocation reveals allocations such as N673.17 million for welfare packages at the State House, N39.83 million for the Vice President’s office, N1.88 million for the State House Liaison Office in Lagos, N13.9 million for the Bureau of Public Enterprises (BPE), and N104.54 million for the Economic and Financial Crimes Commission (EFCC).

Other beneficiaries include the Nigerian Financial Intelligence Unit (NFIU) with N584.88 million, the Bureau of Public Procurement (BPP) with N100.95 million, the Nigerian Extractive Industry Transparency Initiative (NEITI) with N95.84 million, the National Atomic Energy Commission with N30 million, the National Agriculture Land Development Agency with N15 million, and the National Council on Climate Change with N14.82 million.

In a disturbing trend, the Ministry of Budget and Economic Planning, which responsible for the budget preparation process and its oversight agencies, allocated N371,589,777 million for staff welfare. However, details regarding how these funds will be utilized remain vague, with no specific breakdown of beneficiaries or expenditure.

Details of the total amount show that while the ministry’s headquarters would spend N185,637,214 million on welfare package, the Nigerian Institute and Social Research under its supervision would take N50 million for the same item, with the Centre for Management Development taking another N20 million. Also the National Bureau of Statistics under the ministry is also expected to take N115,952,563 million for the same welfare package for staff.

If that sounds strange, Federal Ministry of Finance and four agencies under its supervision have concluded plans to spend N655,125,689 million on welfare package that is different from salaries/wages, allowances, and other frivolous items, including the litany of repeated items on the budget list.

While the headquarters of the ministry budgeted N180 million for welfare packages, Debt Management Office will spend N15 million on welfare package for its few staff members that would draw a total of N845,131,167 million as salaries from the national budget.

In the same vein, the Office of the Accountant-general of the Federation budgeted N228,940,407 million as welfare for the same staff that would draw N3,732,858,625 billion from the federal budget.

After a deduction of N2,048,231,918 billion salaries for its very few staff, Pension Transitional Arrangement Directorate (PTAD) has earmarked another N177,517,162 million as unexplainable welfare package.

The investigation also revealed that the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) joined the band wagon as its welfare package is worth N25,420,000 million, while National Salaries, Incomes and Wages Commission plans to spend N28,248,120 million on welfare packages. Curiously, Nigerian Bulk Electricity Trading Plc did not vote any amount for welfare.

The Ministry of Interior stands out with one of the largest allocations for miscellaneous and welfare packages, with a total of N2,290,896,818 billion approved, with an additional N561,298,825 million allocated to welfare expenses. The discretion afforded to MDA heads in spending these funds often leads to misappropriation and diversion.

A breakdown of the budgetary provisions showed that the Ministry of Interior, as the mother agency, will get N94,392, 582 for miscellaneous, while its welfare packages will gulp N35,172,505 million respectively. Under the ministry, the Nigeria Immigration Service (NIS) is apportioned N1,075, 259, 358 for miscellaneous and N390,330,443 for welfare packages.

According to the budget document, the Nigeria Security and Civil Defence Corps will spend N722,986,563 on miscellaneous, while welfare packages will gulp N60,500,000 million.

The sum of N121,060,932 million was earmarked for miscellaneous while N14,876, 290 million was apportioned to welfare for the Nigeria Correctional Service.

For the office of the Civil Defence, Correctional, Fire and Immigration Services Board (CDCFIB), N17,614,457 million was allotted to miscellaneous and N9,842, 857 was earmarked for welfare packages.
Meanwhile, N259,582,926 million was set aside for miscellaneous, while N50, 576,730 million was allotted to welfare packages for the Federal Fire Service (FFS).

The Ministry of Steel Development has budgeted a total of N62.38 million as welfare in the 2024 Appropriation Act. A breakdown of the budgeted sum indicates that the Ministry of Steel Development headquarters has N30 million; the National Steel Raw Materials Exploration Agency budgeted N4.76 million; the National Metal Development Centre, N1.416 million; Metal Training Institute, N2.518 million; National Iron Ore Mining Project, however had no specific budget for welfare but had a miscellaneous budget of N8.52 million.

The others are Ajaokuta Steel Company, N2.16 million budgeted for welfare while the National Steel Council has N13 million budgeted for welfare.

The sister Ministry of Solid Minerals Development has a total budget of N126.37 million for welfare, with the bulk of N70 million budgeted by the ministry’s headquarters.
The agencies under the ministry include Geological Survey Agency of Nigeria, N3.06 million; Mining Cadastre Office, N22.60 million; Solid Mineral Development Fund, N5.708 million; and the Nigeria Mining & Geosciences Institute, N2.5 million.

The Federal Ministry of Tourism is not left out of including suspicious and frivolous items in the budget. N491, 466, 376 million was allocated for miscellaneous and welfare packages as first line charge. The ministry has a budget of N18, 867, 308, 651 for 2024.

The ubiquitous embezzlement is also exemplified by the Ministry of Arts, Culture and Creative Economy and the agencies under its watch when they allocated N60, 886, 252 million to welfare packages out of the N590,977,343 million earmarked for miscellaneous expenses.

Similarly, the federal government further allocated a total of N251, 419, 160 for miscellaneous and welfare packages to the Ministry of Women Affairs and its agency, National Centre for Women Development.
In its latest budget allocation, the federal government allocated N355,065,055 million towards welfare packages for MDAs in education.

Details of the amount include that the mother ministry alone would get: N79,205,369 million; National Institute for Education Planning and Administration: N40,451,885 million; National Library of Nigeria, N23,500,000 million; Nomadic Education Commission, N500,000; NERDC: N36,514,584; National Business and Technical Education Board, N3,665,435 million.

Despite the current economic hardship facing Nigerians, the Federal Ministry of Sports Development has earmarked a whopping N3,156 billion in the 2024 appropriation act to take care of refreshment/meals, settlement of honorarium, welfare packages for the eggheads and other miscellaneous expenses.
That is apart from the N9,387,143 million to be spent on vague welfare packages. The amount is left for the supervising minister and permanent secretary to determine how it would be spent.

For the Federal Ministry of Labour and Employment, N2,638,634,610 billion is needed to augment welfare packages for the staff in the ministry’s headquarters and its agencies, Industrial Arbitration Panel (IAP), National Productivity Centre (NPC), Nigeria Social Insurance Trust Fund (NSITF), Michael Imoudu National Institute for Labour Studies (MINILS) and National Directorate of Employment (NDE), despite the billions of naira only voted for what is tagged miscellaneous.

On it’s part, the Ministry of Water Resources and Sanitation got N37.14 million allocated for welfare packages in the 2024 budget, while Ministry of Niger Delta allocated a substantial sum of N80,113,609 for the welfare packages that lack specifics.

The budget document that was obtained by LEADERSHIP revealed that the Office of the Head of Civil Service of the Federation allocated N398 million for welfare packages alone in the 2024 fiscal year, while the Federal Minister of Justice and the agencies under it were allocated the sum of N180,151,316 million for welfare packages in the 2024 budget.

The sister Federal Ministry of Health and Social Welfare allocated N285, 582, 708 for welfare in the 2024 budget, while the Federal Ministry of Environment budgeted a total sum of N301,068,141 million or welfare packages in 2024.

Amidst persistent acute hunger faced by many Nigerians, the Federal Ministry of Agriculture and Food Security has earmarked a substantial sum of N327,430,823 million for welfare packages in the 2024 approved budget.

According to the budget document, the ministry’s headquarters in Abuja received a notable N95.5 million from the welfare package.

A further breakdown revealed the allocation of welfare funds across various agricultural bodies. The Nigeria Agricultural Quarantine Service (NAQS) received N50 million, while the Nigerian Institute of Animal Science and the Nigeria Institute of Oceanography and Marine Research were allocated N20.149 million and N20.156 million respectively.

Other notable welfare allocations include N10.5 million for the National Agricultural Development Fund, N8.6 million for the National Root Crops Research Institute in Umudike and N5.5 million for the National Horticulture Research Institute in Ibadan.

The Lake Chad Research Institute in Maiduguri was granted N12.190 million, with smaller sums allocated to the Agricultural Research Council of Nigeria (ARCN), N2 million, and the Institute of Freshwater Fish in New Bussa, N2.45 million, amongst others.

These allocations raise serious concerns about the misuse of public funds, especially in light of the prevailing economic challenges faced by Nigerians. Despite the urgent need for fiscal prudence and accountability, budget allocations continue to be marred by opacity and inefficiency, further eroding public trust in government institutions.

Many people believe that urgent measures must be taken to enhance transparency and accountability in budgetary processes, ensuring that public funds are utilized judiciously for the benefit of all citizens.
Without decisive action to curb corruption and mismanagement, Nigeria’s development aspirations will remain elusive, perpetuating the cycle of poverty and inequality.

Over 300 drones and missiles were fired towards Israel in an attack late Saturday, injuring at least 12 people, according to an Israeli army spokesman, Daniel Hagari, in a televised statement on Sunday, AFP reports.

“Last night, Iran fired over 300 ballistic missiles, UAVs, and cruise missiles towards Israel,” Hagari said.

The attack, according to Iran’s Revolutionary Guards, was a retaliation for a deadly April 1 drone strike on its Damascus consulate, confirming early Sunday that a drone and missile attack were underway against Israel.

“In response to the numerous crimes committed by the Zionist regime, including the attack on the consular section… the Islamic Revolutionary Guard Corps fired dozens of missiles and drones at specific targets inside the occupied territories (Israel),” state television quoted a Guards statement as saying.

The Israeli military, in a statement, said that “dozens of surface-to-surface missile launches” were identified, with the majority intercepted before crossing into Israeli territory.

It noted that a seven-year-old girl from a Bedouin community near the southern town of Arad was part of the injured people, and is in intensive care, according to the medical centre that received her.

The attack has been condemned by “western powers.” including Israel’s top ally, the United States; Britain and France, amongst others.

However, AP reports on Sunday that “an incoming attack by more than 300 Iranian drones and ballistic missiles was the latest challenge to Israel’s air defence system, which already has been working overtime to cope with incoming rocket, drone and missile attacks throughout the six-month war against Hamas.”

In this piece, PUNCH Online highlights some key features of the Israeli multilayered Ballistic Missile Defence system:

Iron Dome: This system was developed in 2011 by Israel’s state-owned Rafael Advanced Defence Systems with support from the US, Sky News reports on Sunday.

The Iron Dome consists of a series of truck-towed mobile units placed strategically throughout the country and specialised in shooting down short-range rockets.

The system, which is manned 24 hours, reacts within seconds and uses radars to detect and intercept short-range rockets, missiles and drones.

The report noted that “when their radars detect a threat, the information is sent to a ‘battle management centre’ where military personnel analyse it, anticipating its path and impact point, and decide which missile launcher to use to intercept it.

“Counter missiles are then fired directly at the threat – or near it – so the shrapnel can neutralise it.”

Findings by PUNCH Online revealed that the US has provided financial assistance of $2,915.281 billion to Israel for its Iron Dome system, according to the Missile Defence Advocacy Alliance – a non-for-profit US-based organisation “advocating for the development and deployment of missile defence systems to defend the United States, its armed forces and its allies against missile threats.”

David’s Sling: This defence system, also developed with support from the US, is used to intercept medium-range missiles.

The Arrow: As part of the multilayered air defence system, this component is designed to intercept long-range missiles. The Arrow has been reportedly used to stop long-range missiles by Houthi militants in Yemen, AP reports.

The Patriot: This is the oldest component of the Israeli air defence system. This component was first used during the First Gulf War in 1991 to intercept Scud missiles fired by the late Iraqi leader, Saddam Hussein, Euronews reports Sunday.

Euronews quoted the Centre for Strategic and International Studies (CSIS) which estimated that “each Patriot battery costs about $1.1 billion (€1 billion): $400 million (€375 million) for the system, $690 million (€647 million) for the missiles – the cost of a single missile is estimated at $4.1 million (€3.8 million).”

Patriots are mainly used to shoot down aircraft, including drones.

IMOLEAYO OYEDEYI


The Federal Government has said that about 85 per cent of Nigerians still enjoy the electricity subsidy in the country, despite the over N1tn that would be saved from the fresh tariff hike.

It stated this in response to the continued reactions from Nigerians over the increment in electricity tariff recently announced for Band A customers by the Nigerian Electricity Regulatory Commission.

The NERC had on April 3 announced the tariff increment for Band A power consumers from N68 to N225 per kilowatt-hour with immediate effect.

The regulator had said the new tariff signified a removal of electricity subsidy for Band A consumers who constitute about 15 per cent of the total number of power users across the country.

However, in a statement issued by his Special Assistant (Media), Rabiu Ibrahim, on Saturday, the Minister of Information and National Orientation, Mohammed Idris, said 85 per cent of the Nigerian population who fall under different categorisations of the new electricity supply regime still enjoy the subsidy.

Positioning sports for commercial viability
According to the statement, the minister spoke as a guest of the popular Hausa audience participatory programme of Radio Nigeria Kaduna called “Hannu Da Yawa” in Kaduna on Saturday.

He said the disproportionate amount of electricity subsidy, approximately 40 per cent, was benefiting only about 15 per cent of the electricity consumer population, comprising affluent individuals and industrial clusters, who enjoy about 20 hours of electricity.

The statement read in part, “Minister of Information and National Orientation, Mohammed Idris, has said that the over N1tn that would be saved from the withdrawal of electricity subsidy will be reinvested in improving power supply and the provision of social services for the country.

“Idris emphasised that 85 per cent of the population who falls under the different categorisations of the new electricity supply regime still enjoys the subsidy.”

The minister further stated that the new Electricity Act, signed by President Tinubu, had strengthened the governance structure of the Nigerian Electricity Regulatory Commission and empowered the agency to place severe sanctions on electricity distribution companies for infractions relating to billings and supply of electricity to consumers.

Organised labour, comprising the Nigerian Labour Congress and Trade Union Congress, has demanded N615,000 as the new minimum wage for workers in the country, Sunday PUNCH has learnt.

An impeccable source, who is an executive of organised labour, who did not want to be named because he was not authorised to speak on the matter, told Sunday PUNCH that the new wage of N615,000 monthly was reached after consultations by the NLC and TUC.

The source, who was a member of one of the sub-committees set up by the government to work on getting a new minimum wage for the country, however, said the wage might still increase, following the recent hike in electricity tariff.

Speaking with one of our correspondents on Saturday, the source said, “We (NLC and TUC) have given our figures to the government (on the minimum wage), and it is N615,000. That is the position of the NLC and TUC on the matter. The government has been informed as well.”

President Bola Tinubu, through Vice President Kashim Shettima, had on January 30, set up a 37-member panel at the Council Chamber of the State House in Abuja.

With its membership cutting across federal and state governments, the private sector, and organised labour, the panel was tasked with recommending a new national minimum wage.

At the inaugural meeting of the panel, Shettima urged members to ‘speedily’ arrive at a resolution, and submit their reports early as the current N30,000 minimum wage expired at the end of March 2024.

Chairing the panel is a former Head of the Civil Service of the Federation, Bukar Aji, who, at the inauguration ceremony, affirmed that its members would come up with a ‘fair, practical, implementable and sustainable’ minimum wage.

The inauguration followed months of agitation from organised labour over the FG’s failure to inaugurate the new national minimum wage committee as promised during negotiations last October.

From the government’s side, members include the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who was represented by the ministry’s permanent secretary, Lydia Jafiya; the Minister of Budget and Economic Planning, Atiku Bagudu; Head of the Civil Service of the Federation, Dr Yemi Esan; and Permanent Secretary, GSO/OSGF, Dr Nnamdi Mbaeri, among others.

Representing the Nigeria Governors Forum are Mohammed Bago of Niger State, representing the North Central; Senator Bala Mohammed of Bauchi State, representing the North East; Umar Radda of Katsina State, representing the North West; Charles Soludo of Anambra State, representing the South East; Senator Ademola Adeleke of Osun State, for the South West; and Otu Bassey of Cross River State, on behalf of the South-South.

From the Nigeria Employers’ Consultative Association is the Director-General of the association, Adewale-Smatt Oyerinde; Chuma Nwankwo, Thompson Akpabio; as well as members from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, including Michael Olawale-Cole, Ahmed Rabiu, and Humphrey Ngonadi.

From organised labour, the Nigeria Labour Congress is represented by its president, Joe Ajaero; as well as President of the TUC, Festus Osifo; and his deputy, Tommy Etim-Okon, among others.

Ajaero had announced N1m as the new minimum wage, owing to the rising inflation in the country which, according to him, had pushed many of his members into poverty.

This led to several controversies, with some experts stating that the wage was unrealisable or sustainable.

However, in an interview with one of our correspondents, another labour leader stated that the NLC and TUC had pegged the new wage at N615,000 tentatively.

Asked if the May 1 deadline was still on course, the labour leader said, “What I want you to know is that we are doing our best. Both the TUC and NLC have harmonised, and they have sent their position to the government.

“We are in the process. Be assured that once anything happens, I will, as usual, inform you. That is all I can tell you for now, because we have not met; even though we have submitted our unified positions to the Federal Government. We will be speaking with one voice.

“But, let me also hint you that with the removal of the electricity tariff subsidy, we are going to have another round of serious conversations with the government. Mind you, the tariff increase is also very good for us, because they (the government) did it when the new minimum wage process had not been concluded. So, it is going to be a good ground for us to ask for more.

“Our position will be defended based on the new price of N225 per kWh of electricity. Although we (the government and Labour) are not in agreement, we are waiting to meet and decide on the next point of action.”

The source added, “This is because if you look at the Electricity Act, it canvassed a position that before any increase at all, there must be stakeholders’ engagement. However, the Nigerian Electricity Regulation Commission unilaterally imposed the removal of the electricity tariff on the consumers, without recourse to stakeholders. That is in total defiance to the provisions of the Act.

“These are the issues that will be in the front burner of our next negotiation with the Federal Government.

“The new tariff will also give us another strategy to press the government on the need to move the minimum wage upward. This is because the government has not announced any new minimum wage yet, as we are still negotiating.

“As I said, the NLC and TUC have harmonised positions, which we have sent to the government. It is even now that the negotiation will start properly. All that we have done so far was to try to lay the foundation, and now that we have come up with our positions, the government will also come up with their own. We will then start a fresh negotiation.”


Economists differ

Reacting, a professor of Economics at the Olabisi Onabanjo University, Ogun State, Sheriffdeen Tella, said, “If internationally, they say there is poverty in Nigeria, what they mean is that Nigerians are earning less than two dollars per day. If you want to fix the minimum wage to end poverty, what you should do is fix the minimum wage above that.

“Whatever the labour unions have presented to the Federal Government is for negotiation and to serve as a benchmark. It is left for the Federal Government to negotiate.

“There is a law that has been established to make them comply. But, they (state governments) decide to flout the law. When it is agreed as minimum wage, that is what the private and public sectors should pay. If they don’t pay, they should be taken to court.”

A professor of Microeconomics at the University of Ibadan, Oyo State, Adeola Adenikinju, noted that while the Federal Government would bear a significant burden, it was imperative to recognise the involvement of state governments and the private sector in the implementation of the new minimum wage.

Adenikinju, who is also the President of the Nigerian Economic Society, harped on the importance of acknowledging the diverse economic landscapes across states, suggesting that a uniform minimum wage might not be feasible, due to varying levels of affordability.

He said, “The proposed minimum wage by the NLC should be looked at. It is not only the Federal Government that is going to pay this. The state government and private sector are also involved.

“It must be noted that the minimum wage varies by state, as some states are richer than others.”

In a similar vein, another economist, Paul Alaje, explained that there was a high possibility of President Bola Tinubu declaring between N100,000 and N200,000 as the minimum wages for both the private and public sectors if the exchange rate of naira improved to N1,000 per dollar by May.

He added that 30 out of the 36 states would struggle and might not align with the payment of the new minimum wage if it was pegged at N615,000.

According to him, getting special assistance from the Federal Government and intervention funds from international communities should be tied to states having zero clearance of previous salaries.

He also stated while the proposed minimum wage might not be so much of a challenge for the Federal Government and six states, the other 30 states will struggle to pay that amount.”

A police inspector (name withheld) has reportedly committed suicide in Maiduguri, Borno State capital.

The late officer was attached to Gwange Divisional of Borno Police Command.

According to community sources, he was looking healthy when he was last seen three days ago.

It is unclear why the policeman took the action. His neighbors at Layin Bayan, Wulari Jerusalem area of Maiduguri raised the alarm on Saturday morning when they noticed his door was locked from behind and a strange oduor was emanating from there.

The matter was immediately reported to metro Division of Borno Police Command and some officers were deployed to the scene.

“It was early this morning that people in the compound observed strange odor emanating from his apartment; his door was shut from behind.

“The men of police from Metro and Gwange Divisions respectively came to break the door and his lifeless body was found on the floor of his bedroom. They are currently in the compound.” the source said.

As of the time of filing this report police authorities have not issued any statement on the incident.

Police Public Relations Officer in Borno, ASP Kenneth Daso, did not answer calls when Daily Trust attempted to reach him. The telephone line rang out repeatedly.

Chairman of the BUA Group of Companies, Rabiu Abdulsamad, has expressed confidence that prices in Nigeria will soon start to come down under the administration’s economic policies.

Abdulsamad, who was meeting with President Bola Tinubu to congratulate him on the successful completion of Ramadan in Lagos highlighted the significant progress that has been made in addressing the country’s longstanding foreign exchange challenges.

“At a time, the exchange rate was almost N1900/$, but today, the rate is coming down to almost N1,200/$,” Abdulsamad noted.

“We knew then that the high rate was due to many factors, including speculation and manipulation, and a lot of people were actually commercializing their dollar,” he added.

The BUA Group chairman praised the Tinubu administration and the Central Bank of Nigeria (CBN) for their efforts in stabilizing the exchange rate, stating that “this is the first time in over 30 years that I have seen one exchange rate in Nigeria, so it’s really commendable.”

Abdulsamad went on to predict that prices will start to fall in the coming months as a result of the improved forex situation. “So I expect that in a month or two, prices will definitely come down,” he said.

“For example, the price of diesel. The price a few days’ back was N1700/Litre, but today, it’s about N1,200/L.”

He revealed that his company had recently purchased diesel from Dangote Refinery at a rate below N1,200 per liter, suggesting a broader trend of falling prices in the market.

Abdulsamad attributed this positive development to the government’s reform efforts and the collaboration between the public and private sectors.

He noted that a committee has been established to facilitate this partnership, which he believes is crucial for the country’s economic recovery.

“We all need to come together and support the government, her policies. The government means well and they are trying to support Nigeria, but we need to be patient. These reforms will take time, it is not easy and it is not something that can be done in one day, so we are working together,” Abdulsamad said.

BY BUNMI ADULOJU


Festus Keyamo, minister of aviation and aerospace development, has asked Nigerians to fully patronise Air Peace and other local airlines flying international routes.

This, Keyamo said, is the only way local airlines can survive stiff competition from foreign carriers.

On March 30, Air Peace, Nigeria’s flag carrier, commenced its Lagos-London flight services — a landmark achievement celebrated by many Nigerians.

Following the milestone, Allen Onyema, chief executive officer (CEO) of Air Peace, on April 9, said some airlines are conspiring to take his company out of business by underpricing the flight tickets for the Lagos-London route.

According to the entrepreneur, the foreign airlines’ governments are supporting them to do this and take Air Peace out.

Speaking to TheCable on Thursday, Keyamo said while he cannot currently make a policy statement on what the Nigerian government will do to support Air Peace, President Bola Tinubu’s administration would continue to assist local entrepreneurs.

“The first thing is for Nigerians to fully patronise not only Air Peace but all indigenous airlines on international routes. Before the federal government does anything, let Nigerians patronise him and know that this is our indigenous airline,” he said.

“As for government, I cannot make any policy statement for the government now because I am a minister. Whatever we can do, we will discuss that behind the scenes. But it’s wrong for me to make a policy statement now.

“As I have said earlier, one of my main goals in office is to help Nigeria’s domestic airlines grow and improve, supporting President Bola Tinubu’s Renewed Hope Agenda”.

Keyamo added that the federal government would continue to protect Air Peace and other Nigerian carriers that may seek to operate international service.

By Emmanuel Egobiambu


https://www.youtube.com/watch?v=nZCVCZMe8GA

The Federal Government will charge N3,000 on average per toll gate when the Lagos-Calabar coastal road is completed.

Nigeria’s Minister of Works Dave Umahi confirmed the figure on Thursday when he was featured on Channels Television’s The Morning Brief.

“Let me leave out the infrastructure along the corridor. Let me just concentrate on the tolls and I put 50,000 vehicles as an average passage on these toll points per day,” Umahi said on the breakfast show.

“I put N3,000 as an average cost. N3,000 because the cars could be like N1,500, and the big trucks could be like N5,000,” he said. “So, we put an average”.

“In 15 years, you make back the money,” he said, dismissing calls that the cost budgeted for the road was high.

According to him, there will be security at the toll gates and also some facilities like filling stations.

“At every point of tolling, we also have toll station where we have a kind of relief activities: the restaurants, filling stations, parking lots, and so on and so forth,” Umahi said.

“So, people will now have confidence. In these sections, we intend to put CCTV all through.”

Findings by the Nigerian Tribune have revealed that indigenous ship owners were not part of the numbers of vessels that have lined up at the Dangote Refinery to load diesel and aviation fuel.

Recall that while speaking with newsmen last week, the Executive Director of the Dangote Group, Devakumar Edwin, was quoted to have said “We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel. Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations.”

When Nigerian Tribune called the Ship Owners Association of Nigeria (SOAN) and the Nigerian Ship-owners’ Association (NISA) to congratulate them on the involvement of their members in the product evacuation at the Dangote Refinery, both indigenous ship-owners group disclosed that their members were not involved in the exercise.

Speaking exclusively with the Nigerian Tribune, President of SOAN, Mr Sunny Eja, said, “My members are not involved in the product lifting currently taking place at the Dangote Refinery. We are still engaging with various stakeholders to see how we can participate.

“There is a lot involved when it comes to movement of crude oil products. Everything has to be put in place to ensure that we have all the necessary resources and capacity to lift these products when called upon.”

Also speaking with the Nigerian Tribune via WhatsApp chat, President of NISA, Mr Sola Adewunmi said no NISA members is involved in the ongoing product lifting at the Dangote Refinery.

“I am currently out of the country. To the best of my knowledge, I have not heard that any of our member’s vessel has been involved in product lifting from the Dangote Refinery,” the NISA President told Nigerian Tribune exclusively.

The entry of Nigeria’s major carrier, Air Peace into the lucrative London route, has sparked price war among foreign airlines which have severally reduced their airfares to compete effectively with the Nigerian airline.

This emerged just as the Minister of Aviation and Aerospace Development, Festus Keyamo, yesterday, thanked Gatwick Airport, London management for welcoming Air Peace, which started flight service to the airport on March 30, 2024.

Air Peace started direct flights from Lagos to London on March 30, pegging its price for a round-trip economy ticket at N1.2 million on a route that foreign airlines used to charge as much as N3 million.

This prompted the foreign airlines to cut their airfares to an average of N1.4 million for a round-trip economy ticket last week. But checks yesterday showed that some foreign airlines have further slashed their prices to an average of N841,732.

Checks by THISDAY showed that prices by most of the flights have dropped significantly.

For instance, Egyptair has dropped its Lagos-London economy ticket price further to ($470) N585,620; Air Peace London to Lagos now goes for ($655) N816, 130; British Airways goes for ($787.99) N981, 848; Virgin Atlantic ($927.99) N1.1 million and Royal Air Moroc ($456.99) N569,422.

Also, RwandAir has pegged its airfare to London at ($545.35) N679,070; Ethiopian Air ($543.84) -N677, 824; Turkish Airlines ($647.84) – N807, 408; Air France London ($915.99) -N1.1 million, while KLM pegged its price to ($927.84) – N1.1 million.

Comparing the current air fares to the cost of flight tickets last week, before the entrant of Air Peace to the London market showed that a one-way economy class ticket from Lagos to London on British Airways used to cost N3 million for Economy and N11 million for Business Class, which has since dropped to N1.7 million for economy and N6.8million for Business Class respectively.

On Lufthansa, a one-way Economy class ticket from Lagos to London which also cost about N3 million and N9 million for Business class was later put at N2 million for economy class and N7 million for Business Class respectively.

On Virgin Atlantic, the same destination which used to cost about N2 million for Economy, N5 million for Economy Premium and N12 million for Business Class now cost N1.5 million for Economy, N3 million for Premuim and N6 million for Business Class.

These indicated that since Air Peace joined the Lagos-London route, foreign airlines have reviewed their fares downwards severally and as the Chairman and CEO of Air Peace, Dr Allen Onyema said in an interview on Channels TV on Tuesday, the London-Lagos route is no more lucrative because the airlines are slashing their prices to drive the Nigerian carrier out of the market.

“The same strategy is being employed right now by some of the foreign airlines to drop the price so that people will now leave Air Peace and go to those foreign airlines.

“Of course, it is a very devilish conspiracy. All of a sudden, other airlines are underpricing; that is below the cost of operation

“One other airline was advertising $100, one $350. If you fill up the entire aircraft and carry people on the wings, it is not even enough to buy your fuel, so why are they doing that?

“Their governments are supporting them because Nigeria has been a cash cow for everybody. Their governments are supporting them to do this and take Air Peace out.

“The idea is to take Air Peace out and the moment they succeed in taking air peace out, Nigerians will pay 20 times over and it’s going to happen if, God forbid, they’re able to take Air Peace out because what is happening now is scary and of course, even at Gatwick where you are, are you given 100 per cent corporation?

“Let me tell you this, on the first day of the inaugural flight out of london, 24 hours to the time, they moved us to another checking area other than the place assigned to us. The place they gave us the carousel was not working so when you check-in people, you need to manually carry the load to some 50 meters away to go and drop it somewhere else just to delay you.

“No other airline faces that. If they take out Air Peace prematurely, this country will pay dearly for it 10 times over quote me, billions will be lost and there will be another heavy strain on the naira,” Onyema said.

Reacting to this development, former Director General of the Nigeria Civil Aviation Authority (NCAA), Benedict Adeyileka, told THISDAY that price war was on among foreign airlines on the Lagos-London route, adding that the plan was to drive out Air Peace from the market and then they increase airfares by 300 per cent.

He said before Air Peace entered into the market, foreign airlines were ripping off Nigerians with outrageous fares, making Nigeria their most profitable route because they charge very high fares that are almost double what they charge for London-Johannesburg route that is three hours longer than Lagos-London, which is about six hours.

Adeyileka, regretted that the Nigerian government allowed foreign airline to operate cabotage service, whereby they carry passengers from one Nigerian airport to another Nigerian airport, against what is in the Bilateral Air Service Agreement (BASA) and what those countries that own the airlines will never allow Nigerian carriers to do in their airports.

“Foreign airlines are crashing their prices because they want to bring Air Peace down. Nigeria has become very lucrative to these airlines because government allowed some of them, including Ethiopian, Turkish, Qatar, Lufthansa to practice cabotage, taking passengers from one of our airports to another of our airports, which is unacceptable. I can say it anywhere; they cannot do this without the connivance of Nigerians.

“They have been enjoying monopoly on the Nigerian route; but now a Nigerian carrier joined the market they want to drive it out with price war.

“If they succeed within 48 hours the airlines will more than double the prices. They will increase the fares by 300 per cent. Let then continue to bring down the prices, it is good for Nigeria,” Adeyileka said.

According to him, what would save Nigerian carriers was patriotism as well as government support, noting that when he worked in UK, the UK- owned airlines were not buying aviation fuel at the same cost as foreign airlines and they were not paying the same airport charges as foreign airlines and urged the Nigerian government to find ways to support Nigerian carriers.

He added: “If we want the naira to continue to gain value and also to reduce the demand on the dollar, government should encourage local carriers where passengers can buy their ticket in naira and the airline will not repatriate its earnings through forex out of the country.”


Keyamo Commends Gatwick Airport for Welcoming Nigerian Carrier, Air Peace

Meanwhile, Keyamo has thanked Gatwick Airport, London management for welcoming Nigeria’s major carrier, Air Peace, which started flight service to the airport on March 30, 2024.

In his verified X (twitter) handle, @fkeyamo, the Minister acknowledged the message from Gatwick Airport authority, saying the message issued one week after the airline’s inaugural flight to the airport was belated but accepted, adding that the federal government was fully in support of its airlines.

“Finally! Thank you Gatwick Airport. We expected this (welcome message) on the first day of the arrival of one of our most important local airlines, Air Peace.

“But better late than never. We look forward to working with you to ensure seamless operation by Air Peace from your airport. The government of Nigeria fully supports our local operators,” the Minister said.

London Gatwick airport, @Gatwick_Airport, had welcomed the Nigerian carrier, saying, “Excited news! We recently welcomed Nigerian carrier @flyairpeace to the London Gatwick family, flying daily to Lagos.

“Perfect for reconnecting with friends and loved ones or for business travellers, embark on your next journey from London Gatwick to Lagos with Air Peace.”

According to information from the airport’s website, Gatwick Airport is managed by Gatwick Airport Limited, but since May 2019, VINCI Airports have been the majority shareholder and the rest of the shares are owned by a group of investors.

VINCI Airports is the world’s leading private airport operator. They have welcomed 240 million passengers per year, including 46 million at London Gatwick. They also operate the world’s largest and most diversenetwork, with 65 airports in 12 countries.