Category: Lead

The World Bank has predicted that the Federal Government will save N2 trillion in the remaining six months of 2023 with the removal of petrol subsidy and over N11 trillion by 2025.

The World Bank made this projection in its June 2023 Nigeria Development Update released on Tuesday in Abuja.

According to the NDU report, the removal of the petrol subsidy and FX management reforms are vital steps toward rebuilding fiscal space and restoring macroeconomic stability. 

The report emphasised the need for further policy reform measures and acknowledges the critical reforms that the new administration has already initiated to address macroeconomic imbalances. 

Read Also: Shehu: why Buhari did not remove petrol subsidy, float Naira

It advised President Bola Ahmed Tinubu to take advantage of the opportunity to have a transformative impact on millions of Nigerians and establish a solid foundation for sustainable and inclusive growth. 

The NDU recommended implementing a comprehensive reform package, including a new social compact to protect the poor and vulnerable towards maximising the collective impact on growth, job creation, and poverty reduction. 

World Bank Country Director for Nigeria, Shubham Chaudhuri, commended the Tinubu government’s efforts to implement long-awaited reforms and emphasised the need for compensatory actions to mitigate the short-term impact on the poor. 

Chaudhuri also advocated for the implementation of a cash transfer programme to provide relief to those most affected by higher petrol prices as part of a broader agreement to redirect fiscal resources towards development priorities.

The Federal Government has started the issuance of Proof of Ownership Certificate (POC) for all categories of registered vehicles nationwide.

Unveiling the new policy at the Bagauda Kaltho Press Centre, Alausa, Lagos, the Permanent Secretary, Ministry of Transportation Engr AbdulHafiz Toriola said the certificate which will come into force in the State in July ,would be part of requirements to be renewed annually.

What that means is that it is now mandatory that all vehicle owners, obtain as a matter of policy, the Proof of Ownership Certificate annually, unlike what hitherto obtains when you only obtain proof of ownership of vehicle when you purchase a used vehicle or  changed the engine of your vehicle.

Read Also: Council presents vehicles to legislators

He said: “This certificate upon successful completion of the necessary requirements and procedures, will serve as part of official documentation of a vehicle’s legal owners.”

Toriola explained that the POC which would affect all classes of vehicles from motorcycle, to tricycle, to mini vehicles, saloon cars, all classes of trucks, articulated vehicles and such likes that coveys people or products from one point to the other.

Toriola said it will contain vital information including the vehicle’s registration details, such as, licence number plate, model, year of manufacture in addition to owner’s name and address. 

​According to him, all States of the Federation are expected to begin the implementation of the new policy, and each vehicle owner is expected to pay a minimum of N1,000 to procure the document.

The National Assembly Service Commission (NASC) has appointed Dr. Rawlings Emmanuel Agada as Acting Deputy Clerk (Administration) in the National Assembly.

The NASC also elevated Dr. Victor Aboluwade (Director Senate Management), to the position of Secretary, Special Duties.

Until his new appointment, Dr. Agada was the Director of Information in the National Assembly.

This was contained in a letter of appointment addressed to Agada and signed by the Executive Chairman of the NASC, Engr. Ahmed Kadi Amshi.

Read Also: 10th NASS: Kaduna lawmaker assures constituents of quality representation

The letter titled: “Appointment of Acting Deputy Clerk (Administration) House of Representatives” and dated 20th June, 2023, reads in part: “I write to inform you that the Commission at its 577th meeting held on Monday 19th June, 2023, approved your appointment as Acting Deputy Clerk (Administration) House of Representatives in the National Assembly with effect from 19/06/2023. This is in exercise of its powers as provided for in Section 6(b) of the National Assembly Service Act 2014.

“The appointment is in recognition of your hard work and administrative competence. It is therefore expected that you will continue to uphold the confidence reposed in you.”

• Distribution firms backtrack on hike notification •Review not justified, says Yusuf

There is confusion over the purported plan to hike electricity tariffs from July 1.

It follows conflicting directives by the distribution companies  (DisCos) and the regulatory body.

Yesterday, the DisCos clarified that they had not got the approval of the Nigerian Electricity Regulatory Commission (NERC) to hike tariffs.

Also, the Abuja Electricity Distribution Company (AEDC) backtracked on its earlier announcement of a tariff increase, barely 18 hours after it issued a notification.

Read Also : Why DisCos are bent on electricity tariffs increase

An economist and Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the proposed review smacked of insensitivity.

His position is in line with that of the Manufacturers Association of Nigeria (MAN) and other business organisations.

Waiting game

The AEDC, in a public announcement to its customers, urged them to ignore its previous announcement of upward tariffs review. 

The company noted that NERC was yet to approve the increase.

It said: “Please, disregard the communication circulating in the media regarding the review of electricity tariffs. 

“Be informed that no approval for such increment has been received. We regret any inconvenience.”

Two days ago, the AEDC issued a public service announcement that it would increase its tariffs effective from Saturday because of the exchange rate that has soared from N441 in 2022 to N750.

But the recanting of AEDC on its previous announcement is not surprising given the sensitive nature of the subject. 

Sources said the DisCo may have buckled under pressure to put the review on hold.

DisCos contacted feigned ignorance, saying that NERC is the appropriate body to speak on tariffs. 

They also clarified that they had not received a directive on tariff increase from NERC.

General Manager, Public Affairs of NERC, Dr. Usman Abba-Arabi, could not be reached by phone for confirmation.

Messages sent to his Whatsapp number had not been responded to as of last night.

“We have not been advised or directed on such. The NERC is the only body that can order us on tariffs review and we have not received any correspondence on this from NERC. So, we are also watching the speculation that has filled the air,” a senior manager in a leading Lagos-based DisCo said.

Top officials of some DisCo, speaking on condition of anonymity, noted that going by the development in the forex market, consumers needed to be aware that what operators budgeted for at the old exchange rate of N441 to a dollar has since spiked. The implication is that more money is expected to be pumped into providing the required service to consumers.

Electricity tariff review, either increase or decrease, is a bi-annual exercise as provided for in the Multi-Year Tariff Order (MYTO) schedule for the sector.

Relying on Section 76 of the Electric Power Sector Reform Act (EPSRA) 2005, the NERC adopted the MYTO methodology for electricity pricing in Nigeria, which sets out the basis, pricing principles and procedures for effecting minor and major reviews of electricity tariffs in Nigeria.

The MYTO provides a tariff path for the electricity industry, with biannual minor reviews to take into account the impact of changes in a limited number of parameters, specifically inflation, dollar exchange rate to naira, natural gas price and available generation capacity, and major reviews every five years.

Similarly, Section 9 of the ‘‘Regulation on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry’’ allows for Extraordinary Tariff Review.

The proposed increase is coming in spite of the fact that operators have not been able to meet the threshold of supplying, at least, 5,000 megawatts a year after signing contracts with NERC. 

NERC’s current Service Based Tariff (SBT) was benchmarked on an exchange rate of N441/$ and inflation of 16.97 per cent. Currently, the inflation rate is 22.41 per cent, a figure that experts say may hit 30 per cent by the end of the month, given the floating of the naira and petrol subsidy removal.

Review lacks justification, says Yusuf

 Yusuf faulted the proposed increase, saying that the timing is wrong. He said though DisCos are private companies, their services are of great social significance.

He said: “It is often a dilemma when the private sector is playing a dominant role in the delivery of a service, which is social in nature or quasi-social. Nonetheless, it is difficult to accept the exchange rate argument to justify the increase. The truth is that for over 80 per cent of companies, product pricing has always been based on parallel market exchange rate, or close to it.

“Not up to 20 per cent of companies had unfettered access to the official forex window for all their forex needs.”

Yusuf said the forex unification argument being put up by the DisCos cannot justify the proposed tariff increase.

The CPPE boss, an advocate of a free market economy, nevertheless warned that contemplating such an increase at this period when Nigerians are still grappling with the shocks of the fuel price increase is wrong.

He said: “It is most inappropriate and even insensitive to come up with a price increase of such magnitude at this time when many households are still struggling to adjust to the phenomenal increase in petrol prices.

“We need social stability for any business to thrive. Many other businesses are also impacted by the exchange rate unification. But not many have increased prices so phenomenally. 

“The DisCos seem to be taking advantage of monopoly privileges. 

“We recommend that both the timing and rate of tariff changes should be reviewed in the interest of social stability.”

• NSA assumes office
• Egbetokun raises Special Squad

Nigerians should expect a more secure country soon, National Security Adviser (NSA) Nuhu Ribadu, Chief of Defence Staff (CDS) Maj.-Gen. Christopher Musa and Inspector-General of Police Olukayode Egbetokun assured yesterday.

Ribadu spoke after receiving the baton from Maj-Gen Babagana Mongunu (rtd) yesterday.

He pledged to subdue threats and achieve a stabilised country.

He added: “We will stabilise this country. We will secure our country and we will make Nigeria peaceful.

“We believe the time has come for this country to enjoy peace, restore order and rule of law just like any other country in the world.

“Securing the nation is a continuous process. We will look at what has been done and build on it. 

“We will count on your (Nigerians’) support in discharging our responsibilities.

“Mr. President has a huge commitment to securing every inch of our country. We will work with all stakeholders to deliver on this vision.

“This enormous task of securing our country is that of all Nigerians and all friends of Nigeria.”

Monguno said Ribadu is well-equipped to deliver on the job.

He said the ever-changing 21st security environment demands a complex approach to dealing with it.

“Today, we are dealing with a situation in which we have terrorists and insurrectionists. 

“The way and manner you will deal with the situation are such that you will have to rely on a collection of competent staff,” the former NSA said.

CDS Maj.-Gen. Musa said the military under his leadership will restore peace.

He spoke when he led the Service chiefs on a visit to the Ministry of Defence.

“We all know the challenges facing the country. I and the Service chiefs have come a long way. 

“They joined me at the Nigerian Defence Academy (NDA) in 1987 and we have gone through so many challenges, promises and successes. We thank God for the opportunity to serve our nation. 

“When we were young we looked forward to changing things, and now the mantle of leadership is thrown to us.

“Severely, while serving punishment, we would sit and grumble that things were not working.

“Now, to the glory of God, we have been saddled with the responsibility to face those challenges and proffer solutions.

“We assure you that we’ll put in our very best. Our loyalty is no other than to Nigeria.

“We want Nigeria to be peaceful. We grew up when Nigeria was peaceful and we know how it looks and we want to ensure that our children also have a country they will be proud of.

“We assure the Commander-in-Chief of our complete loyalty; unalloyed loyalty to his mandate.”

Egbetokun said a new elite squad will be set up for special operations. 

He said the special squad will comprise 40,000 specially trained elite officers from various formations.

The IGP spoke at a meeting with the squadron, special protection and tactical commanders at the Force Headquarters in Abuja.

The select officers, the IG said, will undergo intensive pre-deployment training to make them combat-ready.

Egbetokun said: “These officers will not perform routine police duties but will be housed and kept combat-ready at all times engaging in daily training in readiness for deployments to intercept and neutralise high-profile criminals and those terrorising our communities. 

“They will be deployed to intervene rapidly and proactively in any situation necessary in their states of assignment. 

“All tactical commanders will be involved in the process of identifying suitable candidates from within their respective units. 

“These individuals should possess the necessary skills, agility, experience, character, and commitment to excel in the challenging and demanding environments they will encounter. 

“The new special squad will be equipped with the knowledge and skills needed to combat evolving criminal activities, insurgency, and other security threats, especially the activities of non-state actors. 

“We will henceforth be more proactive and be ready to take the fight to the criminals’ den. 

“Furthermore, in order to optimise the efficiency of our resources, we shall carry out a re-evaluation of the responsibilities assigned to the PMF.”

Egbetokun said PMF personnel will be withdrawn from VIP escort/guard duties.

“By relieving the PMF of VIP escort and guard duties, we can redirect their focus and efforts toward addressing critical security concerns that affect our communities at large. 

“To this end, a special committee headed by the Deputy Inspector-General of Police (Operations) has been set up to assess and advise on how this strategy can be implemented seamlessly. 

“The committee is expected to submit its report in two weeks after which further details will be made available. 

“Our goal should be to enforce the law and to be partners in creating safe communities, nurturing an environment where everyone feels protected and valued. This is our commitment to Nigerians.”

The IGP said the withdrawn PMF officers will be replaced by officers of the Special Protection Unit (SPU) only where necessary.  

He also warned officers and men as to their conduct.

“Those who keep the peace must be the epitome of peace. Those whose duty it is to enforce the laws of the land must themselves respect and obey the laws of the land. 

“Without obeying the laws, the Police lack the moral high ground to interrogate and bring lawbreakers to book,” Egbetokun said.

The IGP directed that henceforth, all police convoys on routine, non-emergency movement, must obey traffic lights and other traffic rules.

He added: “I pledge to lead by example in this regard.”

• Petrol subsidy no longer desirable

There is nothing to worry about over the floating of the naira, former Minister of Finance and National Planning, Dr. Kalu Idika Kalu has said.

He dismissed concerns about the naira crashing as a result of the unification of exchange rates.

The Central Bank of Nigeria (CBN) unified exchange rates into the Investors and Exporters (I&E) window on June 14, allowing market forces to determine the exchange rate.

Kalu said: “Fears about floatation leading to total degradation of the naira are not there. 

“It is inefficiency in production, allocation, saving, investment, and allowing the two sides of exchange to function that is the problem, not the act of floating it.”

He spoke on Sunday night during the “Meet and Talk,” organised by Brain Trust Nigeria in Abuja.

According to Kalu, leaving the forces of demand and supply to determine the value of the local currency was the right decision.

Kalu noted that the naira will not necessarily remain at the same exchange rate with the dollar forever.

He stressed that without the demand for dollars, the rate will reduce.

Kalu lamented that the CBN determined the value of the naira for a long time to create several exchange rates, which the black marketers took advantage of.

The former minister said: “For them, once you devalue, you will never revalue. It is always going the other way around. 

“How can anybody say so? In good harvest, the prices will drop. If the suppliers of foreign exchange have just put it at that price, who is going to be buying it? 

“Whoever is buying it is doing so because he can make a profit. If there is nobody buying it, what is going to sustain it there?”

Kalu said fears that N1,000 may soon exchange for a dollar were farfetched, adding that it would have been wrong to persist with the old policy.

On petrol subsidy withdrawal, Kalu said there was no way the Federal Government could have exhaustively addressed the issues before stopping it.

He said: “You can never come up with all that should be done before the removal.”

He described the policy as a positive measure from any government, noting the management was, however, abused for years.

“In 2014, I said when you allow the wrong use of subsidy to be sustained, that is when corruption comes in,” he said.

He explained that subsidy was not a negative measure on its own but that the government created issues with the adoption of its own Nigerian National Petroleum Company Limited (NNPCL) as the sole supplier of the product instead of the private sector.

According to him, creating a monopoly for NNPCL as the only importer was an issue.

The Federal Government has declared Wednesday June 28 and Thursday June 29, 2023 as public holidays in commemoration of this year’s Eid-el-Kabir celebration.

The government felicitated with the Muslim Ummah at home and in the diaspora on the occasion of the celebration.

The declaration was contained in a statement by the Permanent Secretary of the Ministry of Interior, Dr Oluwatoyin Akinlade. 

Read Also: JUST IN: Tinubu renames 15 Airports after Buhari, Awolowo, others

The statement reads: “In the spirit of this special occasion, during which we commemorate the great virtues of obedience, sacrifice and faith as exemplified by Prophet Ibraheem (Peace of Allah be upon him), Muslims, and indeed all Nigerians are enjoined to make sacrifices for the growth and development of our communities and our great country, Nigeria.

“We are hopeful that the prayers and sacrifices that come with this great celebration as well as the message of Eid-ei-Kabir will bring about peace, unity and progress in Nigeria.

“Happy Eid-el-Kabir to all Nigerians!”

The Police have released the details of the three medical students that died in a boat cruise in Calabar on Saturday. 

Cross River Commissioner Gyogon Augustine Grimah confirmed the bodies were recovered on Monday. 

They went missing when the boat in which they were cruising capsized on Saturday. 

Thirteen medical students across different universities in Nigeria were involved in the boat accident.

Read Also: JUST IN: Three missing medical students confirmed dead in Calabar boat cruise

 Ten were rescued alive as soon as the boat capsized while the three went missing.

Two of the deceased students were from Ahmadu Bello University (ABU) Zaria and one from the University of Uyo, Akwa Ibom State.

The ABU medical students were identified as Mustapha Aminu Tukur and Kabiru Hamza. 

The student from the University of Uyo was identified as Aisha Celestine Ogwu. 

Details Shortly…

Cross River Commissioner Gyogon Augustine Grimah has confirmed three medical students who went missing after their boat capsized during a cruise on Saturday in Calabar dead. 

Thirteen medical students across different universities in Nigeria were involved in the boat accident.

Ten of them were rescued alive as soon as the boat capsized with three missing.

It was gathered that locals saw the floating bodies on Monday morning and alerted Marine Police.

The Police Commissioner said they recovered the bodies of two males and one female. 

He said the bodies will be kept under proper care and contact made with relevant families before handover.

Read Also: Three medical students feared dead, 10 rescued in Calabar boat mishap

The medical students were in Calabar last week for the annual Nigeria Medical Students Association Health Week.

The week is hosted yearly in any member university within the country.

The 2023 edition was hosted in Calabar with various activities, including educational and social activities.

One of the social activities was a visit to the Marina Resorts and some students decided to enjoy a cruise ride in the resort.

President of the Nigeria Medical Students Association (NiMSA) Mr. Ejim Egbe, said the first set of 13 students had a safe ride and returned to shores.

Though they expressed some concerns, the management assured of safety before the second set of 13 boarded.

The accident occurred with the second set while 10 victims were rescued alive.

Vice President Kashim Shettima has decorated the Acting Comptroller-General of Customs, Adewale Bashir Adeniyi, at the Presidential Villa, Abuja.

Adeniyi was named the Acting Comptroller-General of Customs by President Bola Tinubu last Monday with other newly appointed security heads.

Read Also: PHOTOS: Shettima decorates Acting IGP Egbetokun

The decoration of Adeniyi came some days after Vice President Shettima decorated the Acting Inspector-General of Police, Kayode Egbetokun, with his new rank at the Villa.

Details Shortly…