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Naira Scarcity: Tinubu Writes Emefiele, Outlines 6 Things CBN Governor Should Do To Save Nigeria’s Economy

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Asiwaju Bola Ahmed Tinubu, the All Progressives Congress (APC) presidential candidate has written Godwin Emefiele, Governor of Central Bank of Nigeria, CBN, outlining how to ameliorate the naira situation.

In a statement titled ‘Let us make the best of this moment’ signed by Tinubu, a former governor of Lagos, he listed five action points for the apex bank to follow.

Reflecting on the fuel and naira scarcity, Tinubu noted that the fuel scarcity appears to be easing but the naira scarcity persists.

In Tinubu’s view, Emefiele and the CBN can bring swift relief to Nigerians if they oblige his action point.

“The past few weeks have been a challenging one for Nigerians especially our SME’s, poor and vulnerable masses and those whose very survival depend on daily cash transactions. They have felt the brunt of the combined problems of scarcity of fuel and new naira notes,” Tinubu said in the statement issued on Sunday.

Nigeria’s new naira notes for 200, 500 and 1000 denominations

“We feel the pains of our market women and artisans who have experienced low sales because customers do not have cash to make purchases. We hear the loud cries of farmers in rural areas and hinterlands who have been forced to sell their produce at much lower prices so they don’t lose out completely. We hear every Nigerian dealing with the consequences of the roll-out of the cash swap programme.

Tinubu noted that, “While the scarcity arising from the supply limitations of the new naira notes is still with us, we are encouraged about reports that the fuel queues across the country are easing out as a result of better supply to fuel stations. We are now confronted with how to bring quick, sustainable solution, and relief to Nigerians on the challenges still posed by the non availability of new Naira notes, so that social and economic activities can move on unimpeded and normalcy can immediately return to our financial services sector and overall productivity of our nation.

“In seeking a quick resolution, the National Council of State met on Friday, February 10, 2022 and advised the government and Central Bank in particular, to push more new Naira notes into circulation and also allow for the old notes to remain a legal tender by ensuring supply gaps relative to infrastructural limitations are bridged by recirculating it to ameliorate the pains caused by the scarcity of new ones. We agree with the wisdom of the Council of States as a necessary starting point to begin redressing the unintended consequences of what would have otherwise been a good policy that required mainstream adoption. For the records, I and my running mate, Senator Kashim Shettima and our campaign council do not have anything against the CBN Naira redesign and cashless policy in principle. We are, however, only concerned about its disruptive implementation and the hardship it has brought on the generality of our people who currently can’t access their hard-earned money to meet obligations and the attendant consequences on the informal sector, where majority operate,” Tinubu said.

“Despite the challenges and current difficulties, we are a country of resilient, bold and courageous people who don’t succumb to hard times. We have always overcome our most difficult times and come out better as a people and a nation. This time will not be different. We will make lemonade out of our current lemons.

To bring immediate relief to our people, Tinubu urged the Central Bank to consider the following:

1. Following the advice of the Council of States, the CBN should announce that the old and new Naira notes (especially the non-withdrawn notes and coins) will co-exist as legal tender for the next 12 months to follow examples of countries that have successfully implemented similar monetary policy. This will immediately remove growing tension in the country, eliminate panic reactions by the populace and allow time to scale up infrastructural gaps around alternative payment options to cash.

2. We advise the immediate suspension of associated charges on online transactions and bank transfers and payments via POS until the current crisis is fully resolved. This cost should be considered a roll-out expense by the CBN to incentivise the envisaged shift to alternative transaction channels; for both the financial services consuming public and those in charge of implementing the scale-up programme.

3. Mobilise all Money Deposit Banks, Payment platforms to show clear commitment and timelines on expanding their infrastructure and support services.

4. Bring in Fintech companies with capabilities into currency swap programme for the next 90 days to help decongest banking halls and ATM points where people line up for hours.

5. The Central Bank and other relevant MDA’s should form an Inter-Agency Action Committee for immediate oversight over the cash supply gaps from the Nigerian Security and Minting Company and deal with issues around capabilities and turn around time to meet the needs of the informal sector and unbanked people.

6. The CBN, National Orientation Agency and Ministry of Information, State and Local Governments with their relevant organs in both the public and private sectors should commence a major public enlightenment and sensitisation campaign to further educate and empower our people on the new naira and cashless policy for better understanding and mainstream adoption.

Tinubu added that, As leaders, our commitment to our country everyday must be on how to make life better for our people and we are called upon not to waste the opportunity the moment presents to us to ramp up capacity and capability to serve 200 million Nigerians, leaving no one behind and ultimately improve the living conditions of every single Nigerian.

“Our task now is to restore hope in the country by implementing these steps to energise our people that we can do big things for a better future and shared prosperity. We can build upon this citizen-focused policy challenge to offer a template on how governance should work for the people,” Tinubu said.

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Four Nigerian Students Jailed In UK For Fighting With Knives, Baseball Bats

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Four Nigerian students have been sentenced in the United Kingdom for their involvement in a violent altercation that involved knives and a baseball bat in Leicester.

The incident, which took place on New Park Street in the early hours of November 4, 2021, left one victim with multiple stab wounds.

Following a thorough investigation by the Leicester City Police, authorities identified the culprits through CCTV footage, phone tracking, and public assistance.

The six-week trial concluded in October, and the sentences were delivered on November 14.

A report published on the police website last Thursday provided details of the outcome.

Destiny Ojo (21), of Plumstead, London, was sentenced to seven years for violent disorder, attempted grievous bodily harm (GBH), and GBH with intent.

Habib Lawal (21), of Bexley, London, was sentenced to five years for violent disorder, attempted GBH, and GBH with intent.

Ridwanulahi Raheem (21), of Lambeth, London, was sentenced to three years for violent disorder and possession of a bladed article.

Joshua Davies-Ero (21), of Bexley, London, was sentenced to two years for violent disorder.

A fifth defendant, Justin Asamoah (22), of Merton, had earlier pleaded guilty to possession of a bladed article and is scheduled to be sentenced on November 22.

A spokesperson for Leicester Police praised the public for their help during the investigation and emphasized the importance of addressing violent behavior to ensure community safety.

Detective Constable Sean Downey, commenting on the case, said, “This incident underscores the grave dangers of violent disorder. It is fortunate that the injuries sustained were not more severe or fatal. This could have been a very different investigation.”

He added, “We thank everyone who supported the investigation. As a force, our priority is public safety. Violent behavior will not be tolerated in our communities, and we will continue to take decisive action against offenders.”

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Enugu LGA Chairman Appoints Aides On Garden Egg, Pepper, Yam

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Eric Odo, chairman of Igbo Etiti LGA in Enugu state, has appointed Ezeugwu Ogbonna as senior special assistant on agriculture (yam and pepper).

The appointment was formalized in a letter dated November 1, addressed to Ogbonna.

“I am pleased to inform you that the executive chairman Igbo Etiti LGA has approved your appointment as senior special assistant to the local government chairman on agriculture (yam and pepper),” the letter states.

“You should report to the executive chairman Igbo Etiti LGA, Ogbede, for briefing and deployment,” it continues.

“It is pertinent to note that this is not a career civil service appointment but a temporary appointment which you hold at the pleasure of the executive chairman of Igbo Etiti LGA,” the letter further clarifies.

Odo also appointed Nwodo Ugonna as special adviser on garden egg and pepper.

The council chairman did not specify the exact duties of the appointees.

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NNPCL Admits Challenges Delaying Port Harcourt Refinery Take-Off

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Barely two months after the September completion deadline flop, the Nigerian National Petroleum Commission (NNPC) has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

In an interview (with The Punch) on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria.

“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.”

“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.

Nonetheless, he told (The Punch) that the issues were resolved and commissioning activities have resumed.

Soneye stressed that work is being carried out to ensure the project’s completion.

“These issues have since been effectively resolved, and commissioning activities have resumed.”

“Work is being carried out around the clock to ensure the successful completion of this critical project,” he told our correspondent.

Asked if there is any timeline for the completion of the project, he replied, “Shortly.”

It was observed that the NNPC desisted from giving new deadlines for the delivery of the refinery, having failed to meet its deadlines seven times.

The moribund Port Harcourt refinery is one of three owned by the Federal Government and managed by the NNPC.

Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

The NNPC said last week that it would continue to import fuel, saying it was not the sole off-taker of petrol at the Dangote refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

It was gathered that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery have continued to hit brick walls.

After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.

However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.

Recall that the contractor overseeing the rehabilitation of the Port Harcourt refinery, Maire Tecnimont SPA, refused to disclose the completion date for the project, despite a formal request from a human rights lawyer, Femi Falana.

Apparently baffled by the delay in the completion of the project, Falana had filed an official request under the Freedom of Information Act, seeking clarity on the date set aside for the project completion.

In response, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter to Falana in early October, declining to reveal the information.

Ogungbenro stated that the Managing Director of Maire Tecnimont SPA, as part of an independent private contractor, is not obligated to disclose such information under the FOI Act.

“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.

“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilise public funds for them to be bound by the obligations in the Freedom of Information Act.

“On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.

Since then, information about the refinery has been kept from the public, whose hope for cheaper petrol lies in the facility.

From December 2023, NNPC had been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

When he appeared before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna; but that of Port Harcourt will commence production early August this year.”

However, the promise was not fulfilled in August which was the sixth postponement.

Though the NNPC said it was on course, the refinery has yet to commence operations even as the fourth quarter of the year nears the end.

Recall that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of the first month.

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production would soon start.

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told (The Punch) that the facility would begin production by the end of July.

Commenting on this then, NNPC’s spokesman, Soneye, said that regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

 

Credit: The Punch

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