The Nation Newspaper

Tag: Adeosun

  • Letter to Magu aimed at controls over recovered funds, says Adeosun

    Finance minister Kemi Adeosun has described as harmless and innocuous her letter to the Acting Chairman of the Economic and Financial Crimes Commission (EFCC) requesting for the whereabouts of cash recoveries made by the EFCC.

    According to statement issued last night by the finance minister and signed by Oluyinka Akintunde, Special Adviser, Media and Publicity to the Minister of Finance, the minister said the media reports misrepresented her “innocuous letter to the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, on cash recoveries by the Federal Government.”
    Adeosun stated “explicitly that the letter dated 9th February, 2018, was a standard letter aimed at improving controls over the recovered funds.”
    She emphasized that “there is no ulterior motive behind the letter as alleged in some media reports but to enable the reconciliation and harmonisation of the figures on recovered funds by the Government.”

    The EFCC she said “has subsequently provided the requested information and reconciliation is ongoing.”

    On the 9th of February, 2018, Kemi Adeosun had asked the Acting Chairman of the EFCC, Magu, “to provide records of cash assets recoveries in the custody of the EFCC from March 2015 till date based on information available to the office of the AGF.”
    She specifically requested that the EFCC boss “clarify where these cash recoveries have been deposited and provide accompanying evidence since the use of the recovery figures in media reports by the EFCC do not reconcile with the records of the ministry.

  • Adeosun: Nigeria’s economic growth outlook positive

    The Minister of Finance, Mrs. Kemi Adeosun, yesterday said the country’s economic outlook for this year and beyond was positive.

    She stated that the country was now resilient after exiting recession and has the potential to achieve a seven per cent economic growth in the next two to three years.

    The minister gave this assurance at the fourth Ogun State Investors Forum attended by the Vice President, Prof. Yemi Osinbajo; Ogun State governor, Senator Ibikunle Amosun; former President of Mexico, Mr. Felipe Calderone and eminent persons and captains of industries.

    Adeosun said the current administration had succeeded in building macroeconomic resilience for the country, particularly revising the funding mix, rebuilding fiscal buffers, enhancing foreign exchange reserves and focusing on import substitution strategies.

    She said: “President Muhammadu Buhari has laid the foundation for the repositioning of the economy with a series of reforms which are being sequenced to ensure maximum impact and benefits to Nigeria and the citizens.

    “These include massive investments in infrastructure and social welfare across the country, improved revenue mobilisation, rebuilding of foreign reserves and stabilisation of exchange rate.”

    The Nigerian economy had returned to growth in the second quarter of last year after five consecutive quarters of negative growth.

    The country exited recession with a growth of 0.72 per cent, which was further consolidated with growths of 1.40 per cent and 1.92 per cent in the third and fourth quarters of last year, respectively.

    The minister explained that the quick reversal of the recession meant “less damage” was done to the economy and provided an opportunity for faster positive growth.

    As revenue and growth return, Adeosun said the government would increase the fiscal space for infrastructure spending.

    According to her, revenue mobilisation is potentially the master key to unlocking Nigeria’s huge growth potentials and funding the infrastructure programmes.

    “The Federal Government will continue to create more fiscal space for reforms to enhance productivity and opportunity in the non-oil sector.

    “Greater focus will also be placed on cost efficiency, blocking revenue leakages and continued support to the states,” she added.

    Recalling the actions taken by the administration on assumption of office in May 2015, the minister said it had two options of “balancing our books by cutting down on expenses and also investing massively in infrastructure and the economy.”

    He said: “If we had gone for the first option of cutting down on our costs, it means we would have laid off workers. But we chose to stimulate the economy with massive investments in roads, power, rails and other infrastructure as part of deliberate efforts to grow the economy.

    “We have invested over N2.5 trillion in infrastructure, especially on capital projects, between 2015 and 2017. If you move round the country, you will see ongoing works in roads, power, bridges, rails and other projects. These are important building blocks for the Nigerian economy.

    “Look at the road sector when we came in, it was N19 billion that was invested in the sector in 2015. We invested N307.4 billion on roads in 2016 and N208 billion in 2017.

    “Capital spending for the transport sector has also been remarkable. It was N6.49 billion in 2015, N143.1 billion in 2016 and N133.9 billion in 2017. From where we are coming from, it is a huge chunk, taking it from N6 billion to N133 billion. And there are so many other projects and sectors like that.”

    In his address at the forum, which has as theme: Consolidating the Gains and Accelerating Growth, Governor Ibikunle Amosun said the state attracted 148 new industries that invested between $200 million and $2 billion in the past seven years.

    He noted that the government had improved the enabling environment for businesses to thrive.

    “No investment can flourish in an unsecure environment. We made significant investments in our security infrastructure and architecture, and built strong collaborations with the security services, so as to guarantee the security of lives and property,” he said.

    Amosun further noted that the government had entered into a partnership with a private firm to develop the Lisabi Independent Power Project in Abeokuta.

    “This 12 megawatts power plant has been completed and is ready for commissioning. We have also signed MoUs with eight private power providers for the establishment of a total of 314 megawatts IPP in different parts of our state,” the governor said.

    He assured existing and prospective investors of the safety of their investments in the state, adding that improved approaches have been adopted by the State Government to consolidate the gains of the last few years.

  • N21.7tr debt for economic growth, says Adeosun

    NIGERIANS heard yesterday not to worry over the country’s rising debt profile which has hit N21.7 trillion, going by the Debt Management Office (DMO) statistics.

    The Federal Government explained the borrowing spree. It is to provide national assets that will aid the growth of the economy, Finance Commissioner Mrs. Kemi Adeosun said in a chat with reporters in Abuja.

    She dismissed claims that the Muhammadu Buhari-led administration was indifferent to the spate of borrowings that could take the country back to a debt trap.

    She said: “What we are borrowing for is what you have to look at. If you are borrowing to pay salaries, travels, do training or in a wasteful venture, then you have to be worried.

    “But, if you are borrowing for long-term infrastructure, those are the investments that allow businesses to thrive. You cannot ask someone to come and fix a factory where you know he cannot move his goods when he produces them. Such investor won’t come. Infrastructure is a real asset.

    “I’m not worried about our borrowing. Our debt to GDP ratio remains very low, one of the lowest in Africa and we are working very hard to increase our revenue to make sure our debts are serviced adequately.”

    According to her, the alternative to not borrowing to get out of recession would have been to “wait for oil price to recover.  That alternative would have created a very long recession, had we not taken action then to spend. If we hadn’t done what we did, to borrow and invest in the economy and infrastructure, the recession would have lasted longer than what it eventually was. Besides, the projects we are hugely investing in are long term projects that will provide growth.”

    Asked if Nigeria was at risk of slipping into recession should oil prices crash again, the minister said: “Before the last plunge into recession, we did not have as much shock absorber as we have now.  Our growth formation is better now. We have invested in a lot of infrastructure.

    “The launch of the Focus Labs is to harmonise the economic growth plan because infrastructure alone cannot address the problem without strategic planning.”

    “We have seen what a fall in oil price can do. So, we are much conscious. We have better fiscal buffers and our reserves have improved. We have started rebuilding the shock absorbers, so that if there is God forbid, another fall in oil price, we won’t go back to recession.”

    Besides, she said the government has initiated other reforms to stabilise the economy.

    Her words: “At OPEC meetings now, it is no longer only the Ministry of Petroleum Resources that attends but Ministry of Finance now attends to get information and we are getting outlook from there. If it does, we will respond much more quickly. We have now built early warning signals to enable us react proactively and the focus on taxes is part of it.

    “The government is also exploring other sources of revenue, building buffers and reserves.  For me, the biggest protection is the psychology of the people. When you have been into something, and you have seen what it is like, there is great consciousness as people to make sure we don’t go down that way again.”

    Asked why the government was paying subsidy on imported petroleum products, after it had vowed not to do so, Mrs. Adeosun said: “The subsidy they are demanding for is actually the subsidy arrears we inherited from the previous administration.

    “We are not paying subsidy in the old sense, the way subsidy was paid to oil marketers. So, the subsidy they are clamouring for is what they were owed before the present Administration came in.

    “But, we are negotiating with them and we have to also make sure our focus remains on our capital projects. That is really our priority. But then, they are clamouring for government to give them attention and pay them subsidy arrears owed them before we came on board.”

  • Osinbajo, Adeosun, others for Ogun Investors’ Forum

    Over 1,423 key players in the industrial, agricultural and technological sectors of the Nigerian economy will gather in Abeokuta, the Ogun State capital, tomorrow and Wednesday for the fourth edition of the state’s Investors’ Forum.

    Vice President Professor Yemi Osinbajo is expected to declare open the forum with the theme: Consolidating the Gains: Accelerating Growth.

    The event, which will take place at the June 12 Cultural Centre at Kuto in Abeokuta, will focus on agriculture, industry and technology.

    Convener of the forum, Governor Ibikunle Amosun, will host the eminent guests, including former President of Mexico, Felipe Calderon; former Chief Business Officer, Google X, Mr. Mo Gawdat Salem; Minister of Agriculture and Rural Development, Chief Audu Ogbeh; Finance Minister Mrs. Kemi Adeosun and her counterpart in the Industry, Trade and Investment Ministry, Dr. Okechukwu Enelamah.

    Ogun State is one of West Africa’s fastest-growing investment destinations.

    The state has attracted 304 industries in the last seven years.

    Out of this figure, 148 had invested between $2 million and $2 billion each, while the remaining 156 had also invested $50 million each.

    From a N730 million monthly internally generated revenue (IGR) the Amosun administration inherited on May 29, 2011, the figure has been grown to a monthly revenue of N7 billion.

  • Reps invite Adeosun, Udoma over NHIS N10bn

    Reps invite Adeosun, Udoma over NHIS N10bn

    The House of Representatives Committee on Health Services has incited the Minister of Finance, Kemi Adeosun and her counterpart in the Ministry of Budget and National planning, Udoma Udo Udoma, over the contentious National Health Insurance Scheme (NHIS) N10 billion allegedly moved by its Executive Secretary, Prof. Usman Yusuf.

    Also invited are the Minister of Health, Prof. Isaac Adewole, the Accountant – General of the Federation and the Director- General of Budget Office.

    They are expected to give insight into the movement of the funds.

    The recently reinstated NHIS chief, who met the Chike Okafor –led committee, said that contrary to reports that he moved the NHIS funds, the money is in the Consolidated Revenue Fund Account.

    He said: “December 1, 2016 the NHIS got a letter from the Federal Ministry of Finance that the NHIS is a revenue generating agency and that the NHIS needs to pay N8.8 billion operating surplus. NHIS was not the only agency, there were many agencies that were sent this letter.

    “When I saw the letter, I went to the minister and showed him the letter. I said we are not a revenue generating agency. I went to the Accountant General too and told him the same.”

    Yusuf said he gave the letter to the organisation’s lawyers to research into NHIS Act and investments to see if the organisation was at any time owning the federal government money, but it came out negative.

    “Because the premise was that we violated the Fiscal Responsibility Act as we were not remitting to the federal government our operating surplus,” he added.

     

     

  • Adeosun, Fowler for Kaduna tax amnesty symposium

    Adeosun, Fowler for Kaduna tax amnesty symposium

    The Minister of Finance, Mrs. Kemi Adeosun will on Thursday, March , lead a  Federal Government delegation to the Voluntary Assets and Income Declaration Scheme (VAIDS) stakeholders’ symposium in Kaduna State.

    The VAIDS stakeholders’ symposium is being hosted by the Kaduna State Government, and will be attended by the Executive Governor of Kaduna State, Mallam Nasir el-Rufai; Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler members of the State Executive Council, members of the State House of Assembly, and traditional rulers.

    Also expected at the tax amnesty sensitisation forum, according to a statement issued by the FIRS, are business leaders, business owners and groups, tax advisers, captains of industries as well as professional and artisan bodies, among other strategic economic groupings within Kaduna State and environs.

    The statement noted that the VAIDS stakeholders’ symposium was aimed at promoting greater public understanding of the procedure for the tax amnesty scheme. “The one-day stakeholder engagement event by the Federal Internal Revenue Service and the Federal Ministry of Finance in collaboration with the Kaduna State government is aimed at forging mutually beneficial cooperation between the Government and diverse socio-economic interest groups for the success of the VAIDS scheme”, the government agency said.

  • Adeosun, SEC and the Oando affair

    The suspension of the Director-General of  Securities and Exchange Commission (SEC), Mounir Gwarzo, by the minister of finance, Kemi Adeosun, has not only thrown up serious questions about the minister’s complicity in shielding Oando from SEC’s regulatory axe but also opened the Pandora’s box which may put the future of the oil giant in jeopardy. Her meddling in SEC’s regulatory activities have a direct impact in eroding investor confidence and lowering the estimation of Nigeria’s capital market in the eyes of the world.

    Indeed, it would appear that what the minister, Adeosun, wanted Gwarzo to do was to circumvent regulatory principles and adopt “administrative” ways to dress up what is potentially a ponzi affair. In other words, Gwarzo’s crime is ordering forensic audit of Oando after receiving two petitions over alleged distortion of its shareholding structure and mismanagement of the company’s financial affairs. SEC had conducted a comprehensive review, which revealed massive breaches of the provisions of the Investment and Securities Act (ISA) and the SEC Code of Corporate Governance for Public Companies.

    It beats imagination that a minister who coordinates Nigerian economy wanted SEC to ignore, to the detriment of the 274,400 shareholders of the company and the Nigerian economy, the “going concern” of the company. Going concern in Oando, as stated by its auditors, means the company will not be able to continue operating for a period of time to carry out its commitments, obligations, etc.

    No one with the nation’s interest at heart would want insider dealings such as the sale of 1.21billion shares amounting to N21.5billion to be swept under the carpet. With access to confidential information to its advantage, Oando allegedly traded 1.21billion shares even before the release of the 2014 accounts (which revealed a loss in excess of N180 billion).

    Every market feeler knows that there is a cause for alarm over a labyrinth of related party transactions mostly involving the CEO of Oando, Wale Tinubu in which company paid between 2012 and 2016 for seven out of the 27 the sum of over N200billion.

    To prove that Oando’s paw is deeply trapped in related-party transaction jar, the instances are not far-fetched. On November 29, 2012, Oando Plc acquired 100% of the share capital of Churchill Finance Limited (a company incorporated in Bermuda). Churchill’s sole shareholder was the GMD of Oando Plc, Adewale Tinubu and its main asset was a Bombardier Challenger 300 aircraft. Oando Plc recognized goodwill from acquisition in the sum of N2.34 billion from this transaction, on the date of acquisition (29 November 2012).

    The act of acquiring an asset (the aircraft) from the GMD of the Company and 32 days later recognizing a loss in value of the asset raises serious conflict of interest issues and points to a failure of governance structures and internal control. As it would appear that the asset may not have been worth the value attached to it ab initio.

    Further impairment losses of N838 million and N493 million on goodwill from acquisition of Churchill were recognized in Oando’s accounts for the years 2013 and 2014 respectively and the impairment write-down carried out by the company from 2012 to 2016 amounted to approximately N202.7 billion.

    Payments to Triton Aviation Ltd a company incorporated in Nigeria whose sole shareholder was Adewale Tinubu was paid the sum of N2.83billion for 5 years between the years 2012 to 2016.

    Brol Properties Ltd owned by Adewale Tinubu provided facility management services to Oando Plc at a total cost of about N572.1 million within a period of five years.

    TSL Logistics Ltd controlled by the same Mr. Adewale Tinubu was engaged by Oando Plc to supply products and services and was paid the sum of N67.03 billion within a period of five (5) years.

    Noxie Ltd controlled by Adewale Tinubu also supplied various office equipment at a total cost of N10.2 billion between 2012 and 2016. Lagoon Waters Ltd owned by Adewale Tinubu supplied petroleum products to the company worth N9.6 Billion within a period of five years.

    SEC’s findings also show discrepancies in the shareholding structure and breach of several SEC laws  and ISA rules by Oando.

    As the regulator and watchdog, the commission, sequel to this damning discovery, placed the company’s shares on technical suspension in the Nigerian Stock Exchange (NSE) and appointed a team of experts, consisting of auditors, lawyers, stockbrokers and registrars, to conduct the forensic audit.

    Against the claims by the minister and the acting DG of SEC that the forensic audit would kick off in earnest, the fact of the matter is that no forensic audit is taking place or about to take place in the SEC.

    The claim that a court had stopped SEC from conducting forensic audit is far from the truth. On October 24, 2017 Oando sought an interim injunction to restrain SEC and NSE from conducting forensic audit and implementing the technical suspension but on November 23, 2017, the Federal High Court struck out the application for lack of jurisdiction to hear the matter and directed Oando to seek redress from Investments and Securities Tribunal.

    Evasive and cunningly dodgy, the embattled company applied to the same Federal High Court on December 13, 2017 for an interim injunction pending the hearing of the application at the Court of Appeal. Still unlucky, the court struck out the case for lack of merit on December 15, 2017. Now the question is: where does the purported court order emanate from? The bitter truth is that the case is yet to be even heard, let alone granting order restraining SEC from conducting the forensic audit.

    Another pretext the minister and the acting SEC latch on is the alleged non-release of funds by the Capital Market Development Fund (CMDF). The fund was set up by SEC to assist in achieving its dual mandate of investor protection and development of the market. It was incorporated as a limited liability and the composition of the board was approved by the minister of finance.

    At its meeting on Monday October 30, 2017, the Board of the CMDF approved the conduct of the forensic audit, engagement of the consortium and payment of N160million as their fees. In attendance at the meeting were DG of SEC Mounir Gwarzo; Director of Home Finance, Federal Ministry of Finance, Mrs Olubunmi Siyanbola; representatives of the shareholders association in persons of Dr Farouk Umar and Sir Sunny Nnamdi Nwosu; representative of the Institute of Capital Market Registrars, Dr David Ogogo; representative of Association of Stockbrokers, Ms Ify Ejezie; and representative of Association of Securities Exchanges, Ayodeji Balogun.

    In expressing viewpoints, one credo every reasonable person should hold dear to heart is removing the cataract of ethnic and religious sentiments to look at issues dispassionately. Much as one detaches from giving the crisis an ethnic coloration, Adeosun’s actions and inactions as supervisory minister of the commission are clear pointer to her culpability in the matter. The minister’s spirited efforts to save the company from regulatory gallows clearly vindicate Mounir Gwarzo who was suspended to ensure administrative patch rather than the forensic audit is done hence the latter has remained in the cooler three months after.

    • Sanda is Abuja-based financial analyst.
  • Adeosun to multinationals: evading tax is foreign corrupt practices

    Adeosun to multinationals: evading tax is foreign corrupt practices

    Nigeria’s Minister of Finance, Mrs. Kemi Adeosun, has called for the designation of tax malpractices by multinational corporations in Nigeria and other developing countries as ‘foreign corrupt practices’.

    A statement signed by Oluyinka Akintunde, Special Adviser Media and Communications to the Finance Minister explained that she spoke during a Platform for Collaboration on Tax (PCT) Conference in New York, United States (U.S).

    She lamented that Nigeria was doubly affected by illicit financial flows as a result of corruption and tax evasion.

    She requested global organisations such as the  World Bank, IMF and United Nations to see the tax avoidance actions of multinational companies as corrupt practices.

    “There is absolute need for a complete understanding of how these multinational corporations (MNCs) behave in Nigeria and developing countries, many operate a completely different standard in Africa to what obtains globally,” Adeosun said.

    She decried the capability of defaulting MNCs to hide behind slow legislative processes to avoid doing what was right in the nations from which they derived significant income.

    The minister, who disclosed that options to sue such companies in their own countries were being explored, said the designation of tax crime as foreign corrupt practices would support such efforts.

    On the wider issue of Illicit Financial Flows, she emphasised that Nigeria, under President Muhammadu Buhari, was ‘taking strong action and was determined to reverse their impact’.

    The government, according to Adeosun, is taking a number of measures internally and also taking full advantage of international initiatives to tackle the problem.

    Mrs Adeosun said: “Internal measures include tightening financial controls and surveillance, adoption of the National Tax Policy with its commitment to regular revisions of tax laws and the ongoing tax amnesty programme, the Voluntary Assets and Income Declaration Scheme (VAIDS).”

     

  • Senate summons Adeosun, Amaechi over diversion of $600m Euro bond

    Senate summons Adeosun, Amaechi over diversion of $600m Euro bond

    The Senate on Thursday invited the Minister of Finance, Mrs. Kemi Adeosun, to appear before it to explain how the $600 million Euro bond sourced from the Chinese Government was used.

    The upper chamber said $600 million loan received to revive the power sector was allegedly diverted by the Federal Government to remodel four airports in the country.

    It noted that there was $600 million Euro bond from the Chinese Government for the rehabilitation of the power sector, out of which $100 million was allegedly diverted as counterpart funding for the remodeling of Lagos, Abuja, Kano and Port Harcourt Airports.

    The Chairman, Senate Committee on Public Accounts, Senator Mathew Urhghide, issued the summon at the meeting of the committee on Thursday.

    Urhoghide, (Edo South), said the Minister of Transportation, Rotimi Amaechi and the Director- General of Debt Management Office (DMO), Mrs. Patience Oniha, would also appear before the committee on the matter.

    Urhoghide, who spoke when the Permanent Secretary, Ministry of Transportation, Sabiu Zakari, appeared before his committee, said those invited should appear before the committee next week to explain the rationale behind the movement of such loans from its original purpose to another.

    He said there was the need to establish the desirability of the loan.

     

     

  • Fed Govt not paying oil subsidy, says Adeosun

    Fed Govt not paying oil subsidy, says Adeosun

    •FEC okaysN2.328b to check rice smuggling, others

    •Elizade wins N1.128b vehicle supply contract

    Minister of Finance Mrs Kemi Adeosun yesterday said the Federal Government is not paying subsidy on oil.

    She spoke at the end of the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    She was with the Minister of Information, Lai Mohammed, Minister of Power, Works and Housing, Babatunde Fashola and the Minister of Mines and Steel, Kayode Fayemi.

    According to her, the Nigerian National Petroleum Corporation (NNPC) is directly bearing the loss, which also has impact on what goes to the Federation account.

    Speaking onsubsidy, she said: “On the question of subsidy, the price of oil for Nigeria today is a double-edge sword. So, every dollar that goes up we get more revenue but also because we are importing refined petroleum increases the landing cost of fuel.”

    The council also approved N2.338 billion for the purchase of operational vehicles for anti-smuggling task force and for acquiring staff accommodation.

    Mrs Adeosun said N1.2 billion was approved for acquiring bedroom units at Life Camp in Abuja for Customs and N1.128 billion for 50 operational vehicles for anti-smuggling task force.

    She said: “The second approval was for the purchase of 50 operational vehicles that are going to be deployed for anti-smuggling or anti-rice smuggling task force that is being put together, which Customs will be leading.

    “We felt that it is important that we don’t want Customs going to seize rice in the markets. Customs should actually stop rice coming in at border points and Customs indicated that they need additional vehicles, additional resources as well as more information driven measures that will be taken. But what was approved today was the purchase of 50 vehicles as part of these efforts. The contractor is Elizade and the value is N1.128 billion.”

    Asked to explain why Nigeria cannot fully fund its budget with the series of internally generated revenues declared by many government agencies, Mrs Adeosun said: “On the funding of the budget, Customs will report that they made a trillion, FIRS and so on, that is absolutely correct. But if you also follow those who cover the FAAC accounts, you will know that that money is shared every month among the three tiers of government. That is what makes up the FAAC. The FAAC is made up of Customs revenue, FIRS revenue and NNPC revenues.”

    Fashola said  his ministry presented a report to the Council on approvals it obtained from the FEC in the  last two years.