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Labour Kicks as Saraki Joins Call For Sale of Oil Assets

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The President of the Senate, Bukola Saraki, on Tuesday itemised measures he said the Executive must take to take Nigeria out of recession.

The measures include the partial sale of the Nigeria LNG Limited and the reduction of government shares in upstream oil joint venture operations.

He also recommended the sale of government’s stakes in financial institutions like the Africa Finance Corporation and the privatisation and concession of major/regional airports and refineries to private operators.

Saraki made the suggestions in his address of welcome, which he read to his colleagues at the resumption of plenary.

According to him, the current economic recession transcends political parties, as well as religious and socio-cultural divides.

The Senate president noted that the economic problem facing the nation was a collective problem and should be treated as such.

He stressed that the Executive must begin to take steps to show not only Nigerians but the international community as well as local and foreign investors that the nation was ready to reform and do business.

Saraki said, “The Executive must immediately put in place a leadership-level engagement platform with the private sector. This must be one that is pro-business and shows unequivocally that the government is ready to partner the private sector towards economic revival. This is a critical signpost towards market confidence, which is a key ingredient to help us revamp the economy out of recession.

“The Executive must raise capital from asset sales and other sources to shore up the foreign reserves. This will calm investors, discourage currency speculation and stabilise the economy.

“The measures should include part sale of the NLNG Limited; reduction of government’s shares in upstream oil joint venture operations; sale of government’s stake in financial institutions e.g. Africa Finance Corporation; and the privatisation and concession of major/regional airports and refineries.”

The Senate President also insisted that the Executive should consider tweaking the pension funds policy within international best practice safeguards to accommodate investment in infrastructure and mortgages.

He stated, “The Executive and CBN must agree on a policy of monetary easing to stimulate the economy and harmonise monetary and fiscal policies until economic recovery is attained. We must ensure that local government borrowing does not crowd out credit for the private sector.

“The Executive must re-tool its export promotion policy scheme with export incentives such as the resumption of the Export Expansion Grant; and introduce export-financing initiatives. The Executive is urged to engage in meaningful dialogue with those aggrieved in the Niger Delta and avoid an escalation of the conflict in the region.

“The National Assembly is very ready to play any role in the process and offer ideas on approaches that will deliver quick win-win in order to move the region and the economy forward.

“The Executive must as a deliberate response consider immediate release of funds to ensure the implementation of the budget for the near short term to inject money into the economy.”

However, the Nigeria Labour Congress and the Trade Union Congress faulted the call by Saraki and other prominent Nigerians for the sale of some national assets.

The General-Secretary, NLC, Dr. Peter Ozo-Eson, and President, TUC, Mr. Bala Kaigama, stated this in separate telephone interviews with our correspondents on Tuesday, while reacting to the call.

Ozo-Eson and Kaigama said that those in the forefront of the move to sell the national assets were being motivated by a desire to acquire them.

Ozo-Eson advised the key players in the President Muhammadu Buhari administration to avoid taking advantage of the economic situation to loot the remaining national assets in the country.

He insisted that acquisition of national assets by those in power was partly responsible for the current economic situation in the country.

He added that selling the NLNG, airports and other assets would only compound the nation’s economic woes as had been demonstrated by the woeful performance of the power sector.

The NLC general-secretary said, “Selling national assets is not going cure the economy. Part of the crisis we are in is as a result of the national assets they distributed to themselves.

“They should not use the economic situation as a pretext for looting what is left of the public assets. Selling the NLNG, airports and all those other assets will not be the way to bail out the economy from this crisis. It will rather compound it as has been demonstrated by what they did with power, and other assets.

“We are opposed to the sale of those assets because they just want to take them over the way they have taken over the power sector and it is not functioning. So, that cannot be the excuse. We are opposed to it. What we will do if they go ahead is a matter that we will discuss at that point in time.”

Kaigama said that those behind the clamour for the sale of the national assets would only distribute them to their cronies.

He said that the administration should concern itself with the provision of a road map to get the economy out of recession rather than the ploy to sell the assets.

Kaigama stated “Well, I don’t know what they mean by that because these are very vital national assets. Are they saying that as soon as we sell these assets, we will be out of recession?

“Otherwise, why don’t we work out a plan that will get the economy out of recession and not this kind of fire brigade approach? Obviously, that is what it is going to head to because they will sell them to their cronies. The TUC is not in support of this.”

Rather than sell the assets, the Federal Government should borrow from the International Monetary Fund, according to the Revenue Mobilisation, Allocation and Fiscal Commission.

The Acting Chairman of RMAFC, Mr. Umar Gana, said this in a statement made available in Abuja on Tuesday.

Gana said the opinion of the agency was different from that of business mogul, Alhaji Aliko Dangote, who had in an interview with a cable television, CNBC Africa, advocated the sale of NLNG and other federation assets as a way of augmenting government revenue shortfall as a result of the current economic recession.

He said, “It is the considered view of the commission that Nigeria’s assets such as the NLNG and other strategic national resources should not be sold to meet short-term financial obligations.

“It will be recalled that the Governor of the Central Bank of Nigeria indicated in a media report that the sum of $10bn would be realised from the sale of these assets. The commission is of the strong opinion that the same amount could be borrowed from the IMF and the revenue from these assets could be used to amortise the loans over an agreed period.

“It should be noted that after the amortisation of the loans, those assets would still be owned by the federation in addition to their regular dividends and revenues.”

Gana argued that it would be unwise for the Federal Government to dispose of its crown jewels that were generating revenues that keep the Federation Account healthy over the long-term.

He said since the assets were generating revenues, the government could borrow from the IMF and amortise the loan with revenues emanating from the assets.

Gana also counselled that instead of selling off vital assets generating funds for the federation, wealthy Nigerians should be encouraged to set up their own liquefied natural gas projects since was blessed with abundant natural gas reserves.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

Senate Suspends Senator Abdul Ningi for 3 Months Over Budget Padding Allegations

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Abdul-Ahmed-Ningi

The Senate has announced the suspension of Senator Abdul Ningi for three months following his allegations of budget padding to the tune of N3.7 trillion in the 2024 budget.

Ningi, who represents Bauchi Central and chairs the Senate Committee on Population, had made the claims in a recent interview with the Hausa service of the BBC.

During a plenary session, Senator Olamilekan Adeola, the Chairman of the Senate Committee on Appropriations, raised a motion to address Ningi’s allegations, citing the urgent need to address what he termed as “false allegations.”

The transcript of Ningi’s interview was read on the Senate floor, prompting deliberation on the appropriate action to take.

Initially, Senator Jimoh Ibrahim proposed a 12-month suspension for Ningi, but Senator Chris Ekpeyong moved to reduce it to six months.

Eventually, Senator Garba Maidoki amended the motion further, suggesting a three-month suspension.

The amended motion was put to a voice vote, and Senate President Godswill Akpabio announced the decision to suspend Ningi for three months.

Following the ruling, Ningi was escorted out of the Senate chamber by the Sergeants-at-arms.

The suspension comes amidst division within the Senate over Ningi’s claims, with some senators disowning his allegations and calling for a thorough investigation.

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Ekiti Governor Unveils Multi-Billion Naira Relief Programmes Amid Economic Crisis

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Biodun Oyebanji

Ekiti State Governor, Mr. Biodun Abayomi Oyebanji, has announced a comprehensive relief package aimed at alleviating the hardship faced by the people of the state.

The relief programs encompass various sectors to cushion the impact of the economic downturn.

One of the key initiatives entails clearing salary arrears amounting to over N2.7 billion owed to both State and Local Government workers.

This move signifies the government’s commitment to addressing the financial burdens faced by its workforce.

Furthermore, Governor Oyebanji has approved a substantial increase of N600 million per month in the subvention of autonomous institutions, including the Judiciary and tertiary institutions.

This augmentation is intended to enable these institutions to implement wage awards in alignment with State and Local Government workers’ salaries.

In addition to addressing salary arrears, the relief programs extend to pensioners, with the approval of payments totaling N1.5 billion for two months’ pension arrears.

Moreover, an increase in the monthly gratuity payment to state pensioners and local government pensioners will provide additional financial support, totaling N200 million monthly.

The relief initiatives also encompass agricultural and small-scale business sectors.

The allocation of funds for food production and livestock transformation projects underscores the government’s commitment to enhancing food security and economic sustainability at the grassroots level.

Governor Oyebanji emphasized that these relief programs are part of the state’s concerted efforts to mitigate the adverse effects of the economic downturn and foster shared prosperity.

The comprehensive nature of the initiatives reflects a proactive approach towards addressing the challenges faced by Ekiti State residents.

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President Tinubu Orders Immediate Settlement of N342m Electricity Bill for Presidential Villa

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President Bola Tinubu has directed the prompt settlement of a N342 million outstanding electricity bill owed by the Presidential Villa to the Abuja Electricity Distribution Company (AEDC).

This move comes in response to the reconciliation of accounts between the State House Management and the AEDC.

The AEDC had earlier threatened to disconnect electricity services to the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies (MDAs) over a total outstanding debt of N47.20 billion as of December 2023.

Contrary to the initial claim by the AEDC that the State House owed N923 million in electricity bills, the Presidency clarified that the actual outstanding amount is N342.35 million.

This discrepancy underscores the importance of accurate accounting and reconciliation between entities.

In a statement signed by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency affirmed the commitment to settle the debt promptly.

Chief of Staff Femi Gbajabiamila assured that the debt would be paid to the AEDC before the end of the week.

The directive from the Presidency extends beyond the State House, as Gbajabiamila urged other MDAs to reconcile their accounts with the AEDC and settle their outstanding electricity bills.

The AEDC, on its part, issued a 10-day notice to the affected government agencies to settle their debts or face disconnection.

This development highlights the importance of financial accountability and responsible management of public utilities.

It also underscores the necessity for government entities to fulfill their financial obligations to service providers promptly, ensuring uninterrupted services and avoiding potential disruptions.

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