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FG Will No Longer Get “Ways And Means” Until Payment Of Outstanding Debt — CBN Governor Cardoso

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Olayemi Cardoso, governor of the Central Bank of Nigeria, has said that the apex bank will no longer give Ways and Means to the Federal Government until the previous loans are repaid.

Olayemi noted that it was one of the measures taken by the apex bank to curtail the economic country currently plaguing the country.

Ways and means is the money that the CBN lends to the Federal Government in the meantime to augment spending based on the time the revenue is generated.

Cardoso on Friday alongside the economic team met with the Senate Committees on Finance, Appropriations, Banking, Insurance, and Other Financial Institutions.

The Senate had summoned the economic team including the CBN governor, Minister of Finance, Wale Edun; the Minister of Budget and Economic Planning, Atiku Bagudu, the Minister of Agriculture, Abubakar Kyari to address the current economic situation and more importantly, the free fall of the Naira and hike in prices of food.

The CBN governor said, “On our side at the CBN, we have responded with significant monetary policy tightening to reign in inflationary pressure.

“Empirical analysis has established that money supply is one of the factors fueling the current inflationary pressure. For instance, an analysis of the trend of the money supply spanning over nine months shows that M3 increased from N52.01tn in January 2023 to N68.25tn in November 2023 representing N16.24tn or 31.22 percent increase over the period.

“Increase in Net Foreign Asset following the harmonisation of exchange rates and the N3.22tn ways and means advances were the major factors driving the increase in the money supply.”

He further explained, “I am pleased to note the Fiscal Authorities efforts in discontinuing Ways and Means advances. This is also in compliance with Section (38) of the CBN Act (2007), the Bank is no longer at liberty to grant further Ways and Means advances to the Federal Government until the outstanding balance as of December 31, 2023, is fully settled.

“The bank must strictly adhere to the law limiting advances under ways and means to five percent of the previous year’s revenue.

“We have also halted quasi-fiscal measures of over N10tn by the Central Bank of Nigeria under the guise of development finance interventions which hitherto contributed to flooding excess Naira and raising prices to the levels of Inflation we are grappling with today.”

He reiterated, “The CBN’s adoption of the inflation-targeting framework involves clear communication and collaboration with fiscal authorities to achieve price stability, potentially leading to lowered policy rates, stimulating investment, and creating job opportunities.”

Cardoso further stated that its efforts were beginning to yield results to ease the economic situation in the country.

He said, “Our MPC meeting on the 26th and 27th of February is also expected to review the situation and take further decisions on these important issues.

“Distinguished Senators, Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, aiming to rein in inflation to 21.4 percent in the medium term, aided by improved agricultural productivity and easing global supply chain pressures.”

Cardoso while addressing the issues said, “Distinguished Senators, these measures, aimed at ensuring a more market-oriented mechanism for exchange rate determination, will boost foreign exchange inflows, stabilize the exchange rate, and minimize its pass-through to domestic inflation.

“Indeed, they have already started yielding early results with significant interest from Foreign Portfolio Investors that have already begun to supply the much-needed foreign exchange to the economy.

“For example, upwards of $1bn in the last few days came in to subscribe to the Nigeria Treasury Bill auction of N1tn  which saw an oversubscription earlier this week.”

Cardoso added, “Our measures aimed at improving USD supply into the Nigerian economy, have significant potential in taming the volatility of the exchange rates. However, for these measures to be sustainable, we must as a country, moderate our demand for FX.”

Meanwhile, on addressing the issue of the free fall of the Naira in exchange for the US dollar and other hard foreign currencies, the CBN governor has advised Nigerians to reduce their quest for dollars, consumption, and usage of foreign goods .

He emphasized that without moderation of demands on USD, the CBN has no magic wand to hurriedly get Naira stabilized.

He, however, informed members of the committee that a series of measures put in place by the apex bank recently are yielding results with an inflow of about $ 1 billion into the economy.

He said, “The Nigerian foreign exchange market is currently facing increased demand pressures, causing a continuous decline in the value of the naira. Factors contributing to this situation include speculative forex demand, inadequate forex supply increased capital outflows, and excess liquidity.

“To address exchange rate volatility, a comprehensive strategy has been initiated to enhance liquidity in the FX markets. This includes unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for BDCs and IMTOs, enforcing the Net Open Position limit, Open Market Operations and adjusting the remunerable Standing Deposit Facility cap among others.”

He added, “Our measures aimed at improving USD supply into the Nigerian economy, have significant potential in taming the volatility of the exchange rates. However, for these measures to be sustainable, we must as a country, moderate our demand for FX.

“It is also clear that the task of stabilizing the exchange rate, while an official mandate of the CBN, would necessitate efforts beyond the Bank itself. It will also include actions by corporates and individuals to reduce our frequent demand for the dollar for business and personal needs”.

On the Inflation rate, the apex bank governor assured Nigerians that it will reduce to 21.4% in 2024.

“Distinguished Senators, Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, aiming to rein in inflation to 21.4 percent in the medium term, aided by improved agricultural productivity and easing global supply chain pressures”, he said.

Aside from the CBN Governor, the economic team like the Ministers of Finance, Wale Edun; Budget and National Planning, Senator Atiku Bagudu, Agriculture and Food Security, Senator Abubakar Kyari, also made presentations based on questions asked by the Senators on the State of Economy.

Senator Sani Musa who chairs the Senate Committee on Finance, in a series of posers fired at the Ministers and CBN Governor, queried the $3.3bn collected as a loan to rescue Naira since expected positive effects are not being felt, months after.

Meanwhile, the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East) underscored the need for a forensic investigation of past transactions and the issue of compliance of the bank.

He said, “We have serious economic challenges, they are largely macroeconomic challenges.

“We have inflation in several countries including developing countries but in Nigeria, we have inflation at almost 20%. What special measures do we have to address this?

“Do we have the place to assist the government to boost food supply in a view to also kind of reduce the weight of food inflation in the consumer price index? That’s my second question.

“How does CBN plan to support the productive sectors of the economy, the agriculture and manufacturing sectors? Because there are the two critical sectors already experiencing heavy growth rates.

“Today the money supply is estimated at close to about 75 trillion and thereabouts. I don’t know what is impeded in that 75 trillion, we have 30 trillion ways and means that ordinarily should have been impeded, but we have structured this into a 40-year instrument at a subdued interest rate of 9%. These are part of what is creating the distortions in the economy.”

He specifically, urged the CBN governor to make available to the committee, an audited account of the apex bank and its budget.

On his part, Senator Orji Uzor Kalu (APC, Abia North) called for the ban of dollar use in Nigeria, stressing that the government must go back to abolish the use of dollars in business transactions.

“What plans are you putting in place to strengthen the Naira? We must go back to abolish the use of dollars unless to those who are authorized.

“In South Africa, nobody buys anything with dollars. I can see the shops in Abuja putting their goods to be bought in dollars. So what have you done? Where we are now, there is no foreign direct investment that will come to Nigeria, I’m really worried. People are leaving.”

Kalu added, “And what else have you made to bring to book those 2.7 billion dollars that you say that they have been in default of the documents? Who are the Nigerians that have defaulted these documents?

“You must bring them the book and you must make it public because people are attacking us. I can’t go to my constituency. If I go to my constituency, people are hungry, people are shouting at us, and people think we the senators are the cause of the economic problem. We are just making laws. It’s left for you people to execute it.

“So for me, what plans are you making right away to reconcile with NLC and TUC? They have given a 14-day ultimatum. What are we doing to stop that movement? Because I don’t want to see people say this is politics, this is not politics. These people are legitimately doing what they are doing,” he added.

BIG STORY

Philip Shaibu Moves To Reunite With Oshiomhole, Vows Not To Support Ighodalo

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Philip Shaibu, the impeached deputy Governor of Edo State, has moved to reunite with Oshiomhole and vowed not to support Ighodalo in the forthcoming governorship poll in the state.

Shaibu made this known in an interview (with The Punch), stating that he is not ready to support the Peoples Democratic Party (PDP) gubernatorial candidate, Asue Ighodalo.

The former deputy governor said he would not support Ighodalo because, despite several attempts to know his plans, the latter failed to open up to him about his governorship ambition.

Shaibu noted that he has consistently apologised to Oshiomhole. However, he does not regret his past actions because the former Governor led them to fight against godfathers.

He said, “First, I am not ready to support the governorship candidate of the party, Asue Ighodalo, and until the PDP does the needful, I may not be able to answer the question. I cannot support him because he didn’t open up to me about his ambition despite asking him several times, including at my house. The last time I asked was in November. So, I was taken aback when he spoke on TV that he was being pushed to run.

“I called him and asked who was pushing him to run, but he told me to ignore the report and that it was a social media thing. But his younger brother, Pastor Ituah Ighodalo, said that the move to make his elder brother the governor of Edo State started two years ago. Edo State needs a “homeboy” to govern them, not people who will rent houses during their tenure and leave as soon as it ends. We need people who we can relate to and understand the challenges of the people. The PDP governorship candidate is more of an Ibadan man than an Edo man.

“I am ready. I have also consistently apologised to Comrade, and I am using this avenue to do so again over what happened in 2020, especially the language I used during that period. I look at some of the videos and the only thing I can do is apologise. However, I don’t regret the action I took because Oshiomhole is the one who led us to fight against godfathers. I felt what he was trying to do at that time was wrong. Reuniting with him will be interesting. Even amid the fight, I have maintained that he is my father. I will reunite with him sooner or later. He is also my mentor. So, a lot of things that I do, I learnt from him.”

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Mende Demolitions: Developers Served Contravention Notices Since 2021, But Ignored — Tokunbo Wahab

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Lagos State commissioner for Environment and Water Resources, Tokunbo Wahab, has shed more light on the demolition of buildings in the Mende area of the state, stating that the developers were served contravention notices since 2021.

Tokunbo, during a press briefing on the development, said “when we took our oath of office in September las year and were subsequently given the Ministry of the Environment and Water Resources portfolio, we realized that we were faced with a Lagos environment that has largely been degraded due to brazen acts of the minority which has however festered because concerted efforts were not made to right the wrongs while ensuring that there were consequences for infractions. Right from the word go, we were very equivocal that we must take back the Lagos environment from all forms of abuses, infractions.

A careful review of the various briefings and reviews showed that with the coastal nature of the state, past and present administrations have done a lot to ensure that Lagos does not experience loss of lives and properties to the vagaries of flooding that comes with torrential rainfalls while committing humongous resources. This has always come in terms of clearing and cleaning of all major primary and secondary drainage channels on a year round basis. It was however discovered that because of the selfishness of some people who considered themselves affluent and could have their ways irrespective of whose ox is gored, many of our major drainage channels setbacks have been built upon. This is after they have been served statutory contravention notices. Some even have their structures marked but they go ahead to remove the markings and continue with the erection of such structures.

What is however ironic is that the same people who have used physical structures to block our drainage and do not allow the storm water to drain into the proper channels that will take it into the river or lagoon are the same people with the loudest voices in lampooning the state for not doing enough to prevent flash flooding and resultant damage to properties and avoidable dislocations and loss of lives.

Right from the system 44 Ikota II Mobil Ologolo channel from where the ministry received an SOS message from many residents including residential estates about the unwholesome acts of a few individual property owners who have constructed structures on the drainage setbacks and also went ahead to fill up major drains leading to the IKota. The management of the team led by the Hon. Commissioner has been very decisive about the open display of brazenness by some property owners in the area. The top shots in the ministry had to contend with campaign of calumny and falsehoods peddled to portray them as highhanded, wicked and callous state officials. But because the ministry was on the side of truth, it has ensured that the law took its effect. Today, the contract for the expansion and lining of the Ikota II Mobil channel has been awarded and is ongoing, giving a permanent peace of mind to property owners and residents.

The same has applied in Apapa where illegal extension of fences by property owners have prevented the ministry from having access to its drainage channels for many years. A similar scenario played out at the System 156 and 157 which has witnessed total obliteration of major drainage channels with buildings and the list goes on and on.

The ministry has strengthened its Drainage Enforcement and Compliance department to be very firm but polite in ensuring due diligence concerning all drainage channels and restoring Right of Ways on all channels.

In the drainage sector, while the ministry is ramping up to ensure law and order, it is also constructing new drainage channels while intensifying work on those ongoing. Presently, over 200km of secondary collector drains and 50km of primary channels and concrete lining of drainage channels has been achieved.

For the drainage maintenance, a total of 34 Nos. Primary Channels totaling approximately 115km length were approved and executed under maintenance Dredging of Primary Channels Programme spanning all the original 20 Local Government Areas and effectively draining several catchment areas simultaneously while 144 Nos of Secondary Collectors covering 125.7km spread were also cleaned. Thirty – Nine (39) Nos. Primary Channels with a total length of approx. 117.76 km length has been approved for execution this year 2024.

While for the Maintenance of Secondary Collectors, about 281 Nos. Collector Drains totaling approximately 242.5 km in length, spread across the Twenty (20) Local Government Areas of the State has been approved for Cleaning.

The ministry has also ramped up its activities on the state of the environment leading to improved and timely waste clearing efforts all over the state. The state of the two main dumpsite of Olusosun and Soulous has also experienced some form rehabilitation leading to increased capacity. Lagos State Government also signed an MOU with JOSPONG Group from Ghana on solid and liquid waste treatment solutions in the state. This MOU will ensure the Identification of existing dumpsites/TLSs as potential candidates for conversion/upgrading to Material Recovery Facilities (MRFs) and compost facilities. The collaboration between LASG and JOSPONG technical teams will re-engineer the solid waste management system in Lagos State and ensure creation of job opportunities in the Waste to Wealth value chain.

Following my announcement of a ban of use, sale and distribution of Styrofoam food containers on January 22, 2024, due to grave health concerns and the dangers to our eco system and drainage channels, the Ministry through the Sanitation Services Department facilitated meetings with stakeholders concerned and followed up the 3 weeks’ moratorium to mop-up Styrofoam products from distributors and Lagos markets. After the expiration, enforcement activities were commenced by joint effort of Scientific Officers in the Ministry, Environmental Health Officers as well as KAI personnel in the State. A total of over 900 kg of Styrofoam food containers have so far been confiscated and deposited at the TLS Marini in Oshodi for destruction. More efforts are however being intensified on public awareness and sensitization of residents on the dangers inherent in the continued usage of the Styrofoam food containers.

One of our agencies, LAWMA during the period under review identified 103 illegal blackspots across the metropolis and made efforts to ensure its dislodging just as a total number of 1,081 environmental offenders were arrested for various environmental offences with 1016 being prosecuted by the Mobile Magistrate’s court and sentenced to community service at various locations in the state, with an option of fine. Monitoring gangs were also deployed across 20 Local Governments to capture evidence of illegal dumping activities and possible prosecution.

The Ministry during the period under review through its State Environmental Protection Agency (LASEPA) undertook 367 enforcement activities in households, markets, hotels, warehouses, service centers, eateries, stores, church, mosques as well as 140 hospitality facilities including; Supermarket, Nightclubs, Bake houses with a view to ensuring compliance with the state environmental laws. 76 abatement notices were served to individuals and organizations violating laws on indiscriminate discharge of raw sewerage in to the lagoon or other forms of water and land pollution. A 25% compliance rate with environmental laws was recorded compared to the previous year.

The Agency successfully collaborated with the Air Quality Monitoring Research Group(AQMRG) UNILAG/AIRQo (University of Makarere) on Air Quality study of Lagos and deployed 24 low-cost Air Sensors across Lagos metropolis which has helped to record a reliable data on particulate matter PM2.5 as related to health and the environment of the entire State.

In a renewed step to ensure safety of lives and property of residents, the Operatives of KAI/LAGESC in line with the provisions of the Lagos State Environmental Protection Management law renewed the enforcement of the use of pedestrian bridges. At the count, a total number of 1,032 persons were arrested for crossing the highway and failure to use pedestrian bridges. 165 miscreants and squatters on the pedestrian bridges across the state were also dislodged and the bridges cleaned up.

The Agency arrested a total of 1,886 people comprising illegal traders, street Traders, environmental polluters and cart pushers. All these individuals were prosecuted according to the 2017 Lagos State Environmental Protection Management Law. The agency also ensured that perishable food items and goods confiscated during its several enforcement raids were donated to orphanages, motherless homes and the needies as prescribed by the law.

In terms of beautification and restoring the aesthetics of the Lagos environment, the Lagos Signage and Advertising Company (LASAA) has embarked on a comprehensive project to replace dilapidated street directional signs across Lagos State, enhancing navigability, safety, and aesthetics within urban areas.

Distinguished guests, gentlemen of the press, what I have just done is to give you a brief snap shot of some of the strides we have recorded across the environment and water resources sector in the last one year and beyond and will now go ahead to give a detailed account across the two offices that make up the Environment and Water Resources ministry and all its agencies before taking your questions and comments.”

 

 

 

 

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List Of Former Governors Under Investigation For Alleged Corruption Not From Us — EFCC

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The Economic and Financial Crimes Commission (EFCC) has disassociated itself from an allegedly circulated list of former governors who are being investigated for possible wrongdoing.

A number of allegations surfaced in the media on Saturday (not from PorscheClassy) claiming that the anti-graft agency was keeping an eye on 58 former governors. They were charged with embezzling N2.187 trillion within a quarter of a century.

The 58 former governors, who were chosen from the six regions of the nation, reportedly faced investigations, while other former governors had already faced investigations and prosecutions.

But in a statement on Sunday, the EFCC spokesman, Dele Oyewale, described the reports as false and misleading.

He said the “so-called list is a disingenuous fabrication designed to achieve motives known only to the authors.”

“The Economic and Financial Crimes Commission, EFCC, feels obliged to dissociate itself from a phantom report circulating in sections of the media claiming it has released a full list of ex- governors being investigated for alleged corruption,” the statement read.

“The report headlined:  “EFCC Releases  Full List of 58 Ex- Governors  that Embezzled N2 .187 Trillion”, in one of the news outlets, is false and mischievous as the Commission neither issued the said list nor entertained discussions on investigation of ex-governors with any news medium.”

The anti-graft agency urged the public to disregard the report, saying “it is false and misleading.”

It also urged media practitioners to crosscheck facts about matters under investigation with the Commission to avoid misleading the public with false and inaccurate reports.

Recently, the EFCC has been probing some former governors over allegations of corruption and misappropriation of public funds.

Among them is the former Kogi State Governor, Yahaya Bello, who is being arraigned on 19 counts bordering on alleged money laundering, breach of trust, and misappropriation of funds to the tune of N80.2 billion.

According to the EFCC, the embattled ex-governor withdrew $720,000 from the state’s accounts to pay his child’s school fees in advance just before he left office on January 27, 2024.

Briefing journalists at the Commission’s headquarters in the Jabi area of Abuja, on April 23, the EFCC Chairman, Ola Olukoyede alleged that Bello moved the money from the state coffers to a Bureau de Change operator, and used the money for his child’s school fee in advance.

He said, “A sitting governor, because he knew he was leaving office, moved money directly from the government to Bureau de Change (and) used it to pay his child’s school fee in advance.

“Over $720,000 or thereabout, in anticipation that he was going to leave the Government House. In a poor state like Kogi? And you want me to close my eyes under the guise of ‘I’m being used’. Used by who? At this stage of my life? Used by who?

“I didn’t initiate the case; I inherited the case. I called for the case file and I said there are issues here.”

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