Tinubu didn’t create current economic problems, Presidency replies New York Times – Newstrends
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Tinubu didn’t create current economic problems, Presidency replies New York Times

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President Bola Ahmed Tinubu

Tinubu didn’t create current economic problems, Presidency replies New York Times

The presidency has declared that the present economic crisis being experienced by Nigerians was caused by the previous administration and not the present government.

Bayo Onanuga, Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, reacted Sunday in a statement to a piece on the Nigerian economy titled ‘Nigeria Confronts Its Worst Economic Crisis in a Generation’ published by the New York Times.

He said the article was not only predetermined but a “reductionist, derogatory, and denigrating way foreign media establishments reported African countries for several decades.”

In trying to put the report in perspective, the presidency said, “President Tinubu did not create the economic problems Nigeria faces today. He inherited them. As a respected economist in our country once put it, Tinubu inherited a dead economy,” adding that, “The economy was bleeding and needed quick surgery to avoid being plunged into the abyss, as happened in Zimbabwe and Venezuela.”

Onanuga noted that the above scenario was the background to the policy direction taken by the government in May/June 2023, “the abrogation of the fuel subsidy regime and the unification of the multiple exchange rates.”

The presidential aide said: “For decades, Nigeria had maintained a fuel subsidy regime that gulped $84.39 billion between 2005 and 2022 from the public treasury in a country with huge infrastructural deficits and in high need of better social services for its citizens.

“The state oil firm, NNPC, the sole importer, had amassed trillions of naira in debts for absorbing the unsustainable subsidy payments in its books. By the time President Tinubu took over the leadership of the country, there was no provision made for fuel subsidy payments in the national budget beyond June 2023. The budget itself had a striking feature: it planned to spend 97 percent of revenue servicing debt, with little left for recurrent or capital expenditure.”

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The presidency disclosed that the previous administration had resorted to massive borrowing to cover such costs. “Like oil, the exchange rate was also being subsidised by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy.

“By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 BDCs that were previously licensed by the Central Bank. What was more, the country was failing to fulfil its remittance obligations to airlines and other foreign businesses, such that FDIs and investment in the oil sector dried up and, notably, Emirate Airlines cut off the Nigerian route,” it said.

It added that President Tinubu had to deal with the “cancer of public finance on the first day by rolling back the subsidy regime and the generosity that spread to neighbouring countries. Then, his administration floated the naira.

“After some months of the storm, with the naira sliding as low as N1,900 to the US dollar, some stability is being restored, though there remain some challenges. The exchange rate is now below N1500 to the dollar, and there are prospects that the naira could regain its muscle and appreciate to between N1000 and N1200 before the end of the year.

“The economy recorded a trade surplus of N6.52 trillion in Q1, as against a deficit of N1.4 trillion in Q4 of 2023. Portfolio investors have streamed in as long-term investors. When Diageo wanted to sell its stake in Guinness Nigeria, it had the Singaporean conglomerate, Tolaram, ready for the uptake. With the World Bank extending a $2.25 billion loan and other loans by the AfDB and Afreximbank coming in, Nigeria has become bankable again. This is all because the reforms being implemented have restored some confidence.”

The presidency also stated that inflationary rate is slowing down, as shown in the figures released by the National Bureau of Statistics for April, adding that, “Food inflation remains the biggest challenge, and the government is working very hard to rein it in with increased agricultural production.

“The Tinubu administration and the 36 states are working assiduously to produce food in abundance to reduce the cost. Some state governments, such as Lagos and Akwa Ibom, have set up retail shops to sell raw food items to residents at a lower price than the market price.

“The Tinubu government, in November last year, in consonance with its food emergency declaration, invested heavily in dry-season farming, giving farmers incentives to produce wheat, maize, and rice. The CBN has donated N100 billion worth of fertiliser to farmers, and numerous incentives are being implemented. In the western part of Nigeria, the six governors have announced plans to invest massively in agriculture.”

Tinubu didn’t create current economic problems, Presidency replies New York Times

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Oyo begins recruitment of 7,000 teachers, opens portal

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26 mins ago

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June 26, 2024

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Governor of Oyo State, Engr. Seyi Makinde

Oyo begins recruitment of 7,000 teachers, opens portal

The Oyo State government, on Tuesday, opened a portal for the recruitment of 7,000 teachers for the state’s public primary schools.

The Chairman of the Oyo State Universal Basic Education Board, Dr Nureni Adeniran, told newsmen that the job portal was scheduled to come alive at 6 pm on Tuesday.

The site link for the application is subeb.jobportal.oyostate.gov.ng.

Adeniran said the recruitment was part of the state government’s bid to reduce unemployment among its citizenry.

The portal, according to Adeniran, would register each candidate with his/her email, phone number and National Identification Number, among other requirements, with a view to providing them with jobs suitable for them, either as teachers or caregivers.

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“The government of Oyo State wants to expand the job space in the basic education sub-sector and those who are interested in working as caregivers.

“Education is a major pillar of Governor Seyi Makinde ‘s administration. We are going to have an inclusive government that will utilise valuable potential that abounds in the state and that’s why we are employing new primary school teachers.

“Applicants can channel their complaints, or challenges encountered in the process of the online application through the support service to the phone number and email provided on the website for free support services,” Adeniran said.

Oyo begins recruitment of 7,000 teachers, opens portal

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FG engages local refiners on products pricing, dismisses dirty fuel import report

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37 mins ago

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June 26, 2024

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FG engages local refiners on products pricing, dismisses dirty fuel import report

The Federal Government has met with local refiners of crude oil on a number of issues including pricing of their products and exportation to other countries.

The meeting held in Abuja on Tuesday also involving oil market provided an opportunity to clear the air on a report of dirty fuel being imported into the country as claimed by Dangote Refinery.

Oil marketers stated the meeting that though local refineries were producing some refined products, it would not stop them from patronising other sources, in addition to buying from the indigenous producers.

The Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, while reacting to claims of dirty fuel importation to Nigeria, said the refined petroleum products with high-sulphur contents were last imported in February.

This, it said, had since been addressed by the regulator.

Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, said

“The NMDPRA today engaged with select marketers who are involved in the importation of AGO (diesel), ATK (aviation fuel) and PMS (petrol), as well as refiners of these products. The singular objective is to continue to collaborate in a manner that guarantees energy security within the country,” he stated.

He said discussions at the meeting covered issues of pricing and competition, adding that the agency would continue to engage with operators “to see that we land at a place where it is ultimately beneficial to Nigerians.”

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He added, “On May 14, 2024, the authority hosted a meeting with marketers. We also had an engagement with refiners separately. What is different today is that both refiners and marketers are around the table, and the singular objective of today’s meeting was to continue to deliberate on how we will guarantee fuel supply stability within a fairly priced market.

“There are several issues that came with that, such as pricing issues, competition, quality, etc. Some of these issues will be ongoing, but all it requires will be continuous engagements and consultations.”

He also spoke on claims that the government was trying to force marketers to buy products from a refinery in Nigeria.

The NMDPRA official said, “What we have in Nigeria is a deregulated market that remains open.

“The law that governs us, which is the PIA, makes several provisions and the authority continues to work towards operationalising all of them. So that’s the guarantee we give, that in the fullness of time, all aspects of the PIA will be operationalised.”

Asked to state the refined product that was considered by parties at the meeting, Ukoha said, “Currently, the refiners locally are producing substantial volumes of AGO (diesel), ATK (aviation fuel) and we have assurances that shortly PMS will also kick in. There are also other intermediate products being produced.”

“There is no dirty fuel that is being brought into Nigeria,” Ukoha declared when asked to react to the allegations levelled against the NMDPRA by a senior official of the Dangote refinery.

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It was reported on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.

Responding to this on Tuesday, the Federal Government’s agency insisted that it had adopted all the stipulated procedures required for the importation of refined petroleum products into Nigeria to halt the inflow of dirty fuels.

It further stated that refineries in Nigeria were also taking steps to see that the refined products that they produce conformed with the standards approved by ECOWAS for the region.

The Group Managing Director, RainOil Ltd, Gabriel Ogbeche, said marketers were free to source products anywhere, but noted that local refiners were being patronised.

“One of the things we’ve agreed is that there’s going to continually be a level playing field between the marketers and refiners. We will continue to collaborate for the best interest of the industry,” he said.

Asked to state the challenges faced by marketers operating in the downstream sector which they would want the government to address, Ogbeche replied, “Up till today we have options and I can assure you that all the major marketers have been patronising the local refineries and we will continue. We also have the option of getting products from other sources and to the best of our knowledge that has not changed, even though conversations around that are ongoing.”

FG engages local refiners on products pricing, dismisses dirty fuel import report

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Court orders extradition of Nigerian to US over wire fraud

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2 hours ago

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June 26, 2024

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Court orders extradition of Nigerian to US over wire fraud

Attorney general of the Federation (AGF) has got the nod of Federal High Court sitting in Lagos to extradite Samuel Abiodun to United States of America to face trial for alleged wire fraud and conspiracy to commit money laundering.

Both offences carry a 20-year jail term.

Justice Akintayo Aluko gave the order on June 14, following AGF’s application filed and argued by Kehinde Fagbemi of Federal Ministry of Justice.

The Federal Government prayed for surrender/extradition of Abiodun, the respondent, to face two counts: “Wire fraud, in violation of Title 18, United States Code (U.S.C), Section 1343, carrying a maximum 20-year imprisonment. Count 2: Conspiracy to commit money laundering, in violation of Title 18, United States Code (U.S.C), Section 1956 (h), carrying a 20-year imprisonment”.

Abiodun, through his counsel, Demola Adekoya, denied the allegations, and challenged, among others, the court’s power to order his extradition.

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But, evaluating the evidence against him, Justice Aluko said Federal Government had sufficient evidence to show Abiodun had a case to answer in America.

He noted the respondent misconceived the issues of the treaty between Nigeria and United States authorising the court to grant an extradition request.

Justice Aluko held: “Leveraging on decision of the Supreme court, the extradition treaty between United States and Great Britain signed in London on December 22, 1931, is binding on Nigeria and enforceable in the case.

“Against this background, the issue is resolved in favour of the applicant against the respondent.

“To this end, there is merit and substance in the application. Judgment is entered for the applicant.

“The application of Attorney General of the Federation for the surrender and extradition of the respondent, Samuel Abiodun, to United States is hereby granted.

“The respondent is further committed to prison custody and shall remain in Nigerian Correctional Service to await decision of the Attorney-General of the Federation for his surrender to United States to face his trial…’’

Court orders extradition of Nigerian to US over wire fraud

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