An Economist, Prof. Uche Uwaleke, has expressed optimism that the Federal Government would meet its target of 15.74 inflation rate as contained in the 2017 budget.
Uwaleke, the Head of Banking and Finance, Nasarawa State University, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja.
He said the government could meet this target if there was absence of any serious shock to the economy either from oil price or output.
He also expressed optimism that in the coming months, the inflation rate would trend further downwards in the wake of favourable developments in the international oil market.
The don said: “The drop in headline inflation from 17.78 per cent in February to 17.26 per cent in March is a welcome development.
“Given the import-dependent nature of the economy, the appreciation of the Naira in recent times came as no surprise due to the CBN’s sustained intervention.
“The CBN’s sustained intervention in the forex market is moderating inflationary pressure from pass-through effect of high exchange rates.
“It was also expected that the high food and non-food prices recorded in the corresponding period of 2016 provided a base effect on the inflation rate for March 2017.
“Be that as it may, the key driving factors; namely electricity, fuel, housing and transportation services remain.
“This is understandable though as these challenges are fundamentally structural and will take some time to address.”
NAN recalls that a recent report by the National Bureau of Statistics (NBS) showed the country’s inflation rate dropped by 0.52 per cent in March to close at 17.26 per cent.
According to the report, the declined rate is the second recorded in two months with the first drop of 0.94 per cent which closed at 17.78 being witnessed in February.
“It represents the effects of stabilising prices in already high food and non-food prices as well as favourable base effects over 2016 prices.
“It is also indicative of early effects of a strengthened Naira in the foreign exchange market.
Tag: Fed Govt
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Inflation: Expert says Fed Govt ’ll meet 15.74 target
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Fed Govt empowers Niger Delta youths
The Federal Government, through the Ministry of Niger Delta Affairs, once again fulfilled part of its commitments and obligations to the Niger Delta as 67 young men and women who went through intensive training programmes at The Polytechnic Ibadan and The Siegener Sabithos College, Ososami , Ibadan, graduated at a colourful ceremony last weekend.
The ceremony, which signalled the climax of an empowerment programme packaged by the Ministry of Niger Delta, was attended by the Minister of State for Niger Delta Affairs, Prof. Cladius Daramola, the Rector of The Polytecnic Ibadan, Prof. Olatunde Fawole, his Deputy, Prof. Bayo Oyeleke, and the Insitution’s registrar and bursar, Mr Fehintola and Alhaji Rasheed Tiamiyu respectively.
Others who graced the occassion were the Director of Training and Empowerment in the Ministry of Niger Delta Affairs, Ibrahim Akanya, the Director of Press in the Ministry, Mr Marshal Gundu, the Deputy Director of Press, Mr Stephen Kilebi and the Consultants in Charge of the Siegener Sabithos College, Dr Soji Ijidele and Senator Tunde Anifowose Kelani.
The first batch of graduands who graduated from the Sabithos College, Ibadan, were 25 and they specialised in fish farming and production.
The graduands learnt various techniques of fish farming and production with the aim of not only becoming employers of labour within their communities, but also contributing to the larger economy of the country.
He said all activities regarding the training programmes were tailored in a manner that the graduands can never remain the same once they find their way back to the society, stressing that the programme was designed to make them become repository of ideas capable of taking them out of poverty.
At The Polytecnic, Ibadan, where the 42 second batch of graduands were presented with certificates by the minister, the rector, and Director of Empowerment in the Ministry of Niger Delta Affairs, the rector of the Polytechnic, Prof. Fawole, said the graduands should take a good advantage of the opportunities provided them by the Federal Government after going through the programmes on ICT, Entrepreneurship and e-business.
Prof. Fawole told the graduands that they have acquired the best of skill and knowledge from one of the best Polytechnics in Nigeria, therefore they are expected to utilise the skill to better their lives and that of the society.
Daramola said the event was a demonstration of the fact that President Muhammadu Buhari would leave no stone unturned to end youth restiveness, kidnapping, pipeline vandalisation and other social vices in the Niger Delta.
He said at the end of the graduation, the government would provide a startup capital of 400,000 naira to the first batch of graduands and N500,000 to the second batch, but warned that all monies released to Niger Delta youths for various empowerment programmes and micro enterprises would be strictly monitored to ensure that they are not channelled into unproductive ventures such as purchase of luxury cars and conduct of marriage ceremonies
According to him, a mechanism would be put in place to follow-up the use of funds released to hundreds of Niger Delta youths who have received different training programmes and packages from the Federal Government in recent times.
He urged the beneficiaries of the empowerment programmes for the youths in the nine oil producing states of the Niger Delta to take their destinies into their hands, stressing that about 31 million naira would be disbursed to them after the ceremony.
His words: “When I graduated some years ago, I got employment in about six places, but today such opportunity is not available anywhere. Therefore, I urge you to make good use of this opportunity.
“The package you will be given is a seed money. The President of Nigeria wants you to establish yourselves with this seed money. Please don’t go and eat pepper soup with the money. And that is why we are putting mechanism in place to monitor you through your addresses and your relations so that our efforts will not be in vain.”
The minister noted that the training programme was aimed at exposing the youths to the use of ICT for the acquisition and dissemination of information, computer networking, development of micro, small and medium enterprises, internet browsing and entrepreneurship and business management.
Akanya commended the minister for his initiatives.
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Shell pays $29b to Fed Govt
• Oil giant laments security issues in Niger Delta
Oil giant Royal Dutch Shell said its Nigerian subsidiary, Shell Petroleum Development Company Limited (SPDC) and Joint Venture (JV) partners, paid $29 billion to the Federal Government over the last five years.
This is contained in the oil majors 2016 Sustainability Report released yesterday. The report said the $29 billion was the economic contribution from SPDC JV partners to the government from 2012–2016.
It stated that $1.4 billion was Shell’s share of royalties and corporate taxes paid to the government last year, adding that SPDC’s share was $1billion, while Shell Nigeria Exploration and Production Company (SNEPCo) contributed $0.4 billion.
Also SPDC JV and SNEPCo contributed $106.8 million to Niger Delta Development Commission (NDDC) last year, pointing out that $48.5 million was Shell’s share.
It also noted that 94 per cent of contracts from Shell Companies in Nigeria (SCiN) were awarded to indigenous companies, adding that $0.74 billion was spent by SCiN on contracts awarded to local companies. Besides, it stated that 96 per cent employees of SCiN are Nigerians.
Shell stated that safety and security remain its top priorities and lamented that sabotage and vandalism caused a reduction in onshore oil and gas production last year.
“Shell has interests in several companies in Nigeria and they are major contributors to the economy. They produce oil and natural gas, distribute gas to industries in the country, produce liquefied natural gas (LNG) for export, generate revenues for the government and provide social investment. The Shell companies are also working with federal and state government agencies, communities and civil society to try to create a safe operating environment.
“SCiN continue to operate both onshore and offshore oil activities in the country, while investing in oil and gas production. SCiN are also working with the government and other partners to increasingly focus on developing gas production onshore and delivering gas to power plants and other industrial customers in order to drive economic growth,” the report added.
It said SPDC JV had a challenging 2016 due to further acts of sabotage and vandalism on oil and gas facilities in parts of the Niger Delta. As a result, oil and gas production from domestic and international operators declined sharply in the year.
“Export operations at the SPDC-operated Forcados oil terminal were disrupted after three sabotage incidents in 2016. This resulted in loss of revenue, particularly for domestic producers who rely on the terminal for export. Reduced oil and gas production in the Niger Delta also led to lower revenues for state and federal government and major disruptions to gas supply needed to power electricity for industry, businesses and public sector services.
“The safety of staff and contractors in Nigeria remains the top priority. The SCiN aim to mitigate security risks that may impact people, the environment and facilities. We only carry out operations where it is safe to do so. We also continue to engage with the government and non-governmental organisations (NGOs), as well as local communities, to help promote human rights and a peaceful and safe operating environment.
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Fed Govt to provide 15m jobs, 10 gigawatt of electricity
The Federal Government has said it will provide at least 15 million jobs for Nigerians by the year 2020 as captured in the recently launched Economic Recovery and Growth Plan (ERGP).
The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, gave the assurance at a news conference on ERGP yesterday in Abuja.
Udoma said the implementation of the plan would deliver some key outcomes including generation of at least 10 gigawatt of electricity by 2020.
“We want to bring down the rate of unemployment by creating over 15 million direct jobs by 2020 in agriculture, manufacturing, construction, services and particularly among the youth.
“We want the manufacturing sector to grow at average of 8.5 per cent, peaking 10.6 per cent by 2020.
“We want agriculture to also grow by 6.9 per cent over the Plan period; we want self-sufficiency in rice and wheat in 2018 and 2020 at the end of the plan period.
“We want 60 per cent reduction in imports of refined petroleum products by 2018 and to become a net exporter of refined crude by 2020.
“We expect an average of 4.6 per cent average real GDP (Gross Domestic Growth) growth rate over the Plan period with 7 per cent by 2020; we want to achieve single digit inflation rate by 2020.
“We want to increase crude oil output from 2.2 million barrel per day (mbpd) to 2.5 mbpd by 2020.
“We want to achieve at 10 gigawatt of operational electricity capacity by 2020.’’
Udoma said the ERGP evolved from the Strategic Implementation Plan (SIP) which government had been implementing since 2016.
“Already, following the implementation of the SIP, the economy has shown signs of early recovery in the 4th quarter of 2016 as indicated in the recent report released by the National Bureau of Statistics (NBS).
“We need to build on that momentum. This Plan, which succeeds the SIP, sets out Government’s economic programmes and strategic interventions over the next four years (2017-2020).
“When implemented, it will put Nigeria back on the path of diversified, inclusive, sustained growth. This is therefore, our blueprint for economic recovery and growth.’’
Udoma said the plan would tackle the fundamental problems that held back the progress of the country in the past.
He said the future prosperity rests upon collective support towards effective implementation of the Plan over the next four years.
The ERGP’s projected that Nigeria will make significant progress to achieve structural economic change with a more diversified and inclusive economy in five key areas by 2020.
Udoma said the ERGP is inclusive as the Federal Government will partner with state governments in its implementation.
He said that the ERGP took into considering the role of states, constituencies and local government as a federation with 36 states and 774 local government areas.
“We consulted with the states and they have a major role to play, 50 per cent of this economy is at the state level and many of the things we want to do, for instance agriculture is at the state level.
“The ease of doing business, most of the permits are given at the state level so we are working very closely with the state governments and what they will be doing is based on this plan.
“They will go down to each state and develop their own plans which will be aligned with this plan.
“Some of them already have their plan, so they just need to adjust it a bit so that it is seamless.
“So this plan, the plans of the states will be working collaboratively and closely together,’’ he said.
Udoma said that the Chairman of the Governors Forum had assured of the states’ commitment and pledged to partner with the Federal Government on the implementation.
“So every time we meet at the National Economic Council with the governors, we discuss the plan and we work together to try to see how we can make sure that there is extensive collaboration between the states and the Federal Government.
“So, the states are part of this plan and they are very important part of the plan,’’ he said.
On the passage of 2017 budget, he said that the ministry was working closely with the National Assembly to ensure its early passage.
“As regards transportation, whatever needs to be done to provide improved transportation, whether marine, the ports, the rail, roads is all part of our objective, we want massive improvement in transportation.’’
Udoma said the plan provided incentives for the private sector to invest in key sectors.
“What drive the private sector are incentives and profit, so whatever you structure, you must show people a part to make some money from it. Once you show people a part, they will invest.
“So our part as government is where there are constrains, we tackle them, where there are bottle necks we remove them and we want to sit down with the private sector and show them that there are opportunities in this economy.’’
He said the plan would be an opportunity for the private sector to invest in the economy. -
Fed Govt restates commitment to food security
The Federal Government has reiterated its commitment to use agriculture to ensure food security and provide more employment for Nigerians.
The Director, Department of Agriculture and Extension Services, Federal Ministry of Agriculture and Rural Development, Mr. Alphonsus Onwuemeka, spoke during a training organised for Agricultural Extension Officers at the head office of Ekiti State Agricultural Development Programme in Ikole-Ekiti.
Onwuemeka said out that the Federal Government was working towards using agriculture to generate export and support sustainable income and jobgrowth.
According to him, Nigeria is the world’s largest producer of cassava which is handled only by small farmers in southern, central and lately northern Nigeria. He regretted that the country still imports starch, flour and sweeteners that can be made from cassava.
In his remarks, the Acting Programme Manager of Ekiti State Agricultural Development Programme, Mr. Oladele Yakubu, said Nigeria is presently facing shortages in staple crops because of dependence on imported food.
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Stop mass sack in oil sector, NUPENG tells Fed Govt
The National Union of Petroleum and Natural Gas Workers (NUPENG) has expressed concern over the increasing job losses in the oil and gas sector and the closure of international oil companies.
Addressing reporters after its Central Working Committee (CWC) meeting in Lagos, its National President, Comrade Igwe Achese, noted that Labour and Employment Minister, Dr. Chris Ngige’s, assurances that there was nothing reassuring in job cut would stop.
The union urged the Federal Government to prevail on international oil companies (IOCs) country to stop the retrenchment.
Achese said the delay in the passage of the Petroleum Industry Bill (PIB) was majorly responsible for the rot in the industry and the slide in the returns accruable from investments by successive governments and investors.
He called on the National Assembly to expedite parliamentary actions for speedy passage of the bill for the purposes of engendering transparency, accountability and commensurate returns in the operations of the oil and gas sector.
He said the union believed that passing the bill will further enhance the visibility and attractiveness of the sector to both foreign and local investors.
On the privatisation of the refineries, Achese said: “The CWC-in-Session notes the current calls and agitation by some interested capitalists for the privatisation of the nation’s four refineries.
“We kick against such moves and advise the Federal Government to sincerely do the Turn-Around-Maintenance (TAM) of the refineries and upgrade their systems in order to allow them produce at full capacity. The CWC believes that this will go a long way to reduce the massive importation of petroleum products into the country.”
Achese also explained that the CWC-in-Session called on the Federal Government to grant tax holidays and free land for investors, who want to establish private refineries.
He commended the Federal Government’s position to encourage operators of illegal refineries to be integrated into the establishment of modular refineries.
He advised that the pronouncement should not be political, but matched with actions to train the refiners and put appropriate policies and regulations in place to regulate their operations in order to protect the eco system from possible negative effects of their activities.
“We further urge the Federal Government to support the refiners with funds necessary for effective and efficient modular refineries, which we believe will go a long way in supporting the supply of petroleum products for local consumption and also generate employment opportunities for the restless youths,” he said.
Achese lamented that the economy was still generator-driven, adding that power sector privatisation has failed.
The Federal Government, he said, should put pressure on the electricity generation and distribution companies (GENCOs and DISCOs) to be alive to their responsibilities or have their licenses revoked.
The union lauded the Federal Government’s efforts at addressing inflation.
“The CWC x-rayed the state of the economy and commended the government in its efforts to shore up the naira against the dollar and the drop of the inflationary rate to 17.5 per cent.
“The session, however, stated that a lot still needs to be done to address the current recession and reduce the hunger in the land. The CWC-in-Session wants the Federal Government to address the challenges of poverty, unemployment and hunger in the land.”
NUPENG added that the government should vigorously address the issue of rising cost of goods and services.
“The CWC-in-Session called on the Federal Government to look inward and put structures and strategies to restructure the economy.
“The Session wants the National Assembly to quickly put finishing touches to the budget so that it can be passed and assented by the President, so that the liquidity squeeze can be addressed and debts owed contractors paid after verification,” Achese said.
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Fed Govt files appeal against discharge of Justice Ademola
Worried by the implication of a streak of losses in the courts, the Federal Government yesterday filed an appeal against the discharge and acquittal of Justice Adeniyi Ademola, Mrs. Olabowale Ademola and Mr. Joe Agi, SAN.
It described the decision of Justice Jude Okeke of the High Court of the Federal Capital Territory on Wednesday as “strange”.
The government has also dragged Justice Ademola and his wife to the Code of Conduct Tribunal (CCT) for living above their means and failure to declare their assets.
Sources in the Presidency said the government has chosen to file an appeal against the judgment, which it described as “a very strange outcome indeed considering the underlying facts”.
One of the sources said: “It is even stranger that the trial was not allowed to continue considering the applicable statutory provisions.
“Section 53(1) of the ICPC Act raises a presumption that any gratification accepted or obtained by an accused person must have been corruptly accepted or obtained until the contrary is proved. Section 60 of the Act does not apply to the case.
“Of interest is the decision of the learned trial judge that the offence of giving and receiving gratification was not made out by the prosecution against the defendants in the face of the evidence held in court.
“Prosecution witnesses gave testimony of the payment of N30 million in three tranches by Mr. Joe Agi, SAN into the account of Mrs. Olabowale Ademola, the wife of Justice Ademola. Mr. Agi, SAN, was a legal practitioner, who actually had cases in the court of Justice Ademola.
“The defendants, however, claim that the money was a gift from common friends for the benefit of Justice Ademola and Mrs. Ademola to support the wedding of their daughter. The evidence of the defence suggesting that the source of the money was not Mr. Joe Agi, SAN, was unclear at best and ought not to have formed the basis of the learned trial judge’s conclusion at this stage of the proceedings.
“What was clear was that the last tranche was paid shortly before Justice Ademola granted a garnishee order in favour of Mr. Joe Agi, SAN’s client to the tune of about US$637 million.
“Prior to this, it was also not disputed that Justice Ademola’s son had received a BMW vehicle worth about N8,500,000 from Mr. Joe Agi, SAN.”
Responding to a question, the source added: “The government has filed a fresh case against Justice Ademola and his wife before the Code of Conduct of Tribunal.
“They will be tried in CCT for allegedly living above their means.”
Another source faulted the court’s decision on Justice Ademola’s possession of firearms and ammunition.
The source added: “One of the charges dismissed relates to the possession of firearms by Justice Ademola without a valid licence. On this, Honourable Justice Okeke held that the Firearms Act made provision for a time lag, that is, for Justice Ademola to continue to hold on to his firearms and ammunition even after the expiration of his licence.
“In this case, a new licence was tendered in a situation where Justice Ademola ought to have tendered a renewal of his old licence. Being in possession of two licences in respect of the same firearm ought to have raised some questions for the defendants to resolve.”
A third source in the prosecution said the learned trial judge proceeded to ascribe probative value to the evidence of prosecution witnesses at the stage of a no-case submission.
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Fed Govt bans raw solid minerals exportation
Nigeria in the next six month will stop the exportation of raw solid minerals as part of the country’s economic diversification efforts, Minister of Mines and Steel Development, Dr Kayode Fayemi has said.
Fayemi in a lecture titled: Nigeria’s solid minerals: prospects and challenges and the nation’s quest for economic diversification delivered in Abuja during the induction training for non-career ambassadors-designate, said measures have already been put in place to make this a reality by October.
He said the move to end the era of mining and exporting raw or unprocessed solid mineral from the country was part of the ministry’s roadmap.
Fauemi therefore charged the ambassadors-designate to attract investors into the mining sector of the economy
“Before now, a lot of illegality has been going in the sector; people are just shipping out raw minerals which has informed government policy or decision of banning the unprocessed minerals unprocessed mineral.
“In the next six months, raw minerals would not be allowed to be exported because beneficiation is a priority to this government rather than just exportation of the raw minerals,” he said.
He said any miner ready to invest in the sector must be willing to set up processing plants in host communities in order to create jobs for the people.
Fayemi said whosoever that could not afford setting up a plant should collaborate with others.
He said any miner ready to invest in the sector must be willing to set up their processing plants in host communities in order to create jobs for the people.
He explained that the enforcement of the ban would not be done arbitrarily as the investor would be given time to establish their processing plants.
The minister also called for the partnership of the state governments towards developing the sector.
The minister said although, mining was in the exclusive legislative list of the country’s constitution, there was need for collaboration.
He said there was no law precluding states with enormous resources from setting up mining companies and approaching the ministry for licenses to explore and exploit such resources.
According to him, states could do it solely or in partnership with private investors depending on the technical capacity.
Fayemi noted that given the fact that mining takes place in locations in states, there was need for partnership with host communities and the state to achieve results.
He said this was necessary especially with the economic diversification drive of President Muhammadu Buhari.
He noted with concern that the right to issuance of consent given to host communities had been abused over the years, adding that the intervention of the state government was paramount.
The minister said state governments would be included in the affirmation of genuine land owners with regard to issuance of consent to miners as required by the law.
He said:“We are a mineral rich country we are not mineral producing country, what we are doing in our road is to take few of the mineral so that we can say we have advantages.”
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Govt distributes 500, 000 doses of Meningitis vaccines
•16 states affected •Death toll hits 336 •Ondo advises residents
•Senate urges health ministry to make inoculations freeTHE Federal Government has announced that 500,000 doses of Meningitis C vaccines have been distributed to some of the states affected by the outbreak for vaccination.
Two thousand, nine hundred and ninety seven suspected cases of CSM have been reported in 16 states, of which 146 have been laboratory-confirmed. About 336 deaths have also been recorded.
The Nigeria Centre for Disease Control (NCDC) said additional 823,970 doses of Meningitis C vaccines are expected from the United Kingdom (UK) to support vaccination activities in other affected states.
NCDC is collaborating with the National Primary Healthcare Development Agency and other partners to tackle the outbreak.
They have set up an Emergency Operations Centre (EOC) to manage the outbreak.
It brings national response into an Incidence Management System to ensure that all activities across the country will be managed using a clear command and control structure led by an Incident manager, who reports through the chief executive officer of the NCDC to the Minister of Health, Prof. Isaac Adewole.
With this new coordinating structure, it is expected that the country will have a tight, multi-partner team of experts pulled from the most competent agencies focusing on outbreak control.
The Head of Emergency Preparedness and Response at the NCDC, Dr. John Oladejo, will act as Incident manager of the response, while experts from the Federal Ministry of Health, NCDC, NPHCDA, World Health Organisation (WHO), United Nations Children’s Fund (UNICEF), Africa Centre for Disease Control (CDC), U.S. CDC, Medecins Sans Frontieres, AFENET, University of Maryland and E-Health Africa take important roles in different units.
They will focus on five important components of the outbreak response.
But the Senate yesterday asked the Federal Ministry of Health and the NCDC to make meningitis vaccinations free in public healthcare institutions.
It was one of its resolutions following the adoption of a motion, entitled: “Outbreak of meningitis and the urgent need to curb its spread and stop further deaths”, sponsored by Senator Gbenga Ashafa (Lagos East) and 16 other senators.
The lawmakers noted with serious concern the outbreak of the Cerebrospinal Meningitis in five states.
They underscored the need for an increase in the budget of the Federal Ministry of Health to ensure the ministry and its parastatals could fund healthcare-related activities.
The Senate insisted that meningitis vaccinations should be made free across the country, citing the need for agencies of the Federal Government to continue to collaborate with the WHO and UNICEF to make the scarce inoculations against meningitis readily available.
Senate President, Abubakar Bukola Saraki, noted that with Lassa fever, Cholera and Meningitis outbreak in parts of the country, there was need for increased coordination and funding for regular and specialised healthcare in the 2017 budget.
He assured Nigerians that the Senate will promptly pass any supplemental appropriation request to combat disease outbreaks.
Ashafa, in his lead debate, said the NCDC confirmed the outbreak of CSM in five states with 282 deaths.
The Ondo State has put in place proactive measures to prevent its outbreak in the state.
The Permanent Secretary, Ministry of Health, Dr. Oni Taiye, who said 2,528 cases and 328 deaths have been reported across 16 states of the federation, said the state emergency, preparedness and response team are toswung into action to forestall the outbreak in the state.Outbreak caused by God’s anger, says Yari
Zamfara State Governor Abdulaziz Yari yesterday said the outbreak of Type C Cerebrospinal Meningitis is God’s way of showing his anger on Nigerians for turning their back on him.
He spoke while speaking with State House correspondents at the Presidential Villa, Abuja after meeting with President Muhammadu Buhari.
Zamfara has been the worst hit state since the outbreak of the disease, with over 200 persons dead and several others receiving treatment at various hospitals and clinics.
Medical doctors, under the aegis of Nigeria Medical Association, Zamfara State chapter, last weekend accused the state government of failing to prepare for the outbreak of the disease despite warnings.
Speaking in Hausa language yesterday, Yari said the outbreak might not be unconnected with the people’s total disregard to God’s commandments.
He said: “What we used to know as far as meningitis is concerned is the type A virus. The World Health Organisation (WHO) has carried out vaccinations against this type A virus not just in Zamfara, but many other states.
“However, because people refused to stop their nefarious activities, God now decided to send Type C virus, which has no vaccination.
“People have turned away from God and he has promised that ‘if you do anyhow, you see anyhow’ that is just the cause of this outbreak as far as I am concern.
“There is no way fornication will be so rampant and God will not send a disease that cannot be cured,” he said.
He disagreed with the insinuations that his government failed to act accordingly. -
$550m Abacha loot: Fed Govt set to clear hurdles
Governor urged to withdraw suit
To repatriate a $550million loot traced to ex-Head of State Gen. Sani Abacha, the Federal Government is to resolve two legal hurdles in the United States.
The hurdles are:
- an application filed before a court by Kebbi State Governor Atiku Bagudu and his wife; and
- an action by a United States lawyer, Godson Nnaka, who is fighting to have part of the money.
Besides, the government is seeking “political solutions” to the conditions set by the Swiss government for accessing the loot, The Nation learnt yesterday.
The Swiss government would like to monitor what Nigeria does with the loot, a development which the Federal Government considers as an affront on the country’s sovereignty.
Attorney-General of the Federation and Minister of Justice Abubakar Malami (SAN) and Economic and Financial Crimes Commission (EFCC) Acting Chair Ibrahim Magu, who returned from the US on Sunday, were said to have made progress in “negotiating the last phase of the process for the release of the $550million”.
Pending legal cases in the U.S. by the two Nigerians and the conditions attached to the use of the loot have caused the delay in repatriating the $550million loot.
The U.S. insisted on the removal of the legal obstacles before it could invoke the procedure for the release of the funds to Nigeria.
Following likely loss of the $550 million, President Muhammadu Buhari has chosen to resolve the stalemate through “political solutions”.
A top source, who spoke in confidence, said: “The Federal Government is inching closer to the resolution of legal hurdles and the template for the release of the $550 million Abacha loot. We have spent close to 20 years pursuing the repatriation of these stolen funds; it is time to get over it.
The source added: “The government is trying to prevail on the Governor of Kebbi State, Alh. Atiku Bagudu and a U.S.-based lawyer, Mr. Godson Nanka to withdraw their pending matters in some courts in the U.S..
“The government has decided to plead with Bagudu and his wife, Aisha to withdraw their suit in the U.S., which is inhibiting the process of releasing the cash, which has been stashed in Switzerland.”
In the suit number 13-CV-1832 (JDB), Bagudu and his wife urged the court to reverse its judgment, which declared that the money attributed to them was illicit fund laundered into the U.S. and therefore forfeited to the American government.”
Relying on 18 USC 983 (a) (4) and Rule G (5) (a) of the Sup¬plemental Rules for Admiralty or Marine Claims and Assets Forfeiture Actions of the Fed¬eral Rules of Civil Procedure (Supplemental Rules), Bagudu said: “I have a claim to and interest in the property alleged to be subject to forfeiture in this action.”
“If we continue with this suit without a political solution, the $550 million will still be held up in the U.S..
“The President has asked AGF Malami to discuss with the governor and his wife to withdraw the matter in the interest of the country. I think Bagudu has agreed to do so.”
Also, a U.S.-based lawyer, Mr. Godson Nnaka, who was recruited in 2004 by the Federal Government to recover funds stolen by the late dictator, Gen. Sani Abacha, had instituted a case in a U.S. district court against the Federal Government.
He has asked the court to declare that he is entitled to 40 per cent of the recovered loot. He also pleaded with the court to make him the funds’ exclusive attorney.
“He alleged that he was excluded from the fund recovery case after spending much time and money in tracing the looted funds.
“So far, we have no choice than to negotiate with the counsel. This is another legal challenge which the U.S. is using to delay the repatriation,” the source said.
A government source also made some clarifications on why the U.S. and Switzerland were involved in the loot recovery.
The source said: “The looted funds originated from the US jurisdiction to Switzerland. Many U.S.-based banks or financial institutions were involved in the wiring of the funds. They include Chemical Bank, New York; Commerzbank AG, New York; Marine Midland Bank, New York (now HSBC USA, NA; Morgan Guaranty Trust Company, New York (now JP Morgan Chase); ANZ Banking Group, New York; Bankers Trust Company, New York; Barclays Bank, New York; Citibank NA, New York; and Chase Manhattan Bank, New York.
“About $321million of the cash is said to be stashed in some banks in Switzerland. So, tracking the assets is an intertwined challenge between the U.S. and Switzerland.”
Asked to be specific, the source said the government had signed a pact with Switzerland.
“The pact, which is titled a “Letter of Intent on the restitution of illegally-acquired assets forfeited in Switzerland,” was signed by Nigeria’s Attorney-General and Minister of Justice, Abubakar Malami (SAN), and the Swiss Head of Foreign Affairs Department, Didier Burkhalter. The document reveals that $321 million acquired illicitly by the Abacha family was initially deposited in Luxemburg before being confiscated by the Swiss Republic Judiciary and Canton of Geneva following a December 11, 2014 forfeiture order.
“If the $321million loot is released, the total repatriation to Nigeria by the Swiss authorities will amount to $1.044billion in 12 years.
“The Switzerland government has released $723million to the country in the last 11 years.
“Well, as for the conditions set by Switzerland , the Federal Government regarded as an affront on its sovereignty. Some of the conditions include the use of the funds for projects that will benefit all Nigerians and that World Bank should “ supervise the spending of returned assets by the Nigerian government”.
The government submitted five project proposals to the Swiss government bordering on social benefit projects for the 2016 budget but the looted funds were not released.
The Federal Government and Switzerland last month signed an agreement on the return of the $321million.
A rights lawyer Femi Falana(SAN) had asked the Federal Government to reject the conditions attached to the repatriation of the stolen funds in a letter to President Muhammadu Buhari.
He said allowing the World Bank “to supervise the spending of returned assets breaches international law principles and standards”.