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FG Saves N48bn from Treasury Single Account

The implementation of the Treasury Single Account by the Federal Government has resulted in a monthly savings of N4bn in cost of funds such as bank charges, accounts maintenance cost and others imposed by Deposit Money Banks.

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Treasury Single Account
  • FG Saves N48bn from Treasury Single Account

The implementation of the Treasury Single Account by the Federal Government has resulted in a monthly savings of N4bn in cost of funds such as bank charges, accounts maintenance cost and others imposed by Deposit Money Banks.

Having been introduced exactly a year ago, a total of N48bn has so far been saved by the government.

The Accountant-General of the Federation, Alhaji Ahmed Idris, confirmed the savings by the government during an interview with our correspondent on the sidelines of a sensitisation workshop on continuous audit in Abuja.

The TSA is a platform, which was used by the government to unify all its accounts by ensuring that all money belonging to the Federal Government is kept with the Central Bank of Nigeria.

The initiative, which took off fully in September 2015, had been complied with by over 900 agencies of the government.

Since the commencement of the TSA, there have been series of job losses in banks owing to a decline in deposits.

Ecobank Nigeria, for instance, has sacked over 1,040 of its employees while Diamond Bank Plc sacked over 200 members of its workforce.

But Idris said since the commencement of the TSA last year, the government had been able to block revenue leakages and wastage.

He said, “The Treasury Single Account is one of the initiatives to block leakages. Part of the leakages that we have is the cost of borrowing. I can assure you that by the TSA implementation, we have saved the Federal Government over N4bn cost of funds per month.

“Every month, we used to incur as much as about N4bn and that is no more because of the application and implementation of the TSA. Leakages have been blocked. There is more transparency of expenditure and more control and we are doing a lot more in blocking leakages.”

He said with effective blocking of loopholes, the government had been able to effectively ensure prudent management of its resources.

Idris said, “The blocking of leakages is effective because everything is being monitored. Resources are scarce and so we cannot just roll out resources without enough mechanism to monitor what it is being applied for.

“We will not do only a post-audit exercise; we will also do a pre-audit so that whatever is being done is verified before expenditure is incurred.”

Apart from the TSA, he said the government was also taking other initiatives to improve the management of public finance.

His said at a time when the resources of government were becoming lean owing to the economic downturn, there was a need for the country to get value for money in the conduct of government business.

“We are also taking other initiatives to ensure prudent management of resources; we cannot embark on any wasteful venture anymore.

“It can no longer be business as usual and so the MDAs are committed to this and in particular, you can see the Presidential Initiative on Continuous Audit, which is another key thing because you don’t just roll out resources, you control utilisation,” he added.

According to Idris, the introduction of the TSA had reduce theft of public funds, recalling in 2011, the country lost a whooping sum of N70 bn to failed banks.

He said in the past, MDAs operated more than 10,000 accounts that were mostly dormant and that the funds were not used to develop the country.

He also declared that the country had thus far recorded about N4.36tn after unifying all the government’s accounts under the new arrangement.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Government

Ukraine Strikes Russian Fuel Depot, Sparking Fires in Belgorod Region

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Russian Mercenaries

The governor of Russia’s southern Belgorod region said on Sunday Ukrainian forces attacked a fuel depot, triggering a series of fires after Moscow and Kyiv accused each other of launching overnight attacks on border regions.

“The Ukrainian military, aided by lethal drones, attacked a fuel storage site in Volokonovsky district,” Vyacheslav Gladkov wrote on Telegram, referring to an area near the border.

“Several reservoirs caught fire in an explosion. Firefighting crews are putting out the blaze.”

Gladkov also reported drone attacks on three other localities. There were no casualties reported in the incidents.

In the overnight air attacks, Ukrainian officials said two people died and four were injured in Sumy region. Gladkov reported three civilians were injured in Belgorod.

Two children were among those injured in Sumy, the military administration of the northeastern Ukrainian region said on Sunday on Telegram. Several homes and cars were damaged.

In Belgorod region, three civilians, including two children, were injured. Gladkov said two residential buildings were destroyed and more than 15 buildings in total were damaged.

The Russian defence ministry said it had destroyed one drone over Belgorod region and another over Kursk region, where Ukrainian forces launched a cross-border incursion last month. It said two drones were intercepted over Belgorod overnight.

Border regions on both sides have been subject to frequent attacks. Both Moscow and Kyiv deny targeting civilians, saying the attacks are aimed at destroying each other’s infrastructure critical to war efforts.

Thousands of civilians have died in the war, which Russia started with a full-scale invasion on Ukraine in February 2022. Millions of Ukrainians have also been displaced, while their cities and villages have become piles of rubble

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Ghana Ordered to Pay $111.5M to Power Company After U.S. Court Ruling

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The government of Ghana has been ordered to pay $111.5 million to Ghana Power Generation Company (GPGC) following a ruling by a District of Columbia Court in the United States.

This ruling was granted in favor of GPGC after Ghana failed to respond to an earlier tribunal ruling from the United Kingdom, which found the country in breach of a power purchase agreement.

The court’s decision comes after Ghana terminated its contract with GPGC on February 18, 2018. The UK tribunal, in its final award dated January 26, 2021, found that Ghana had violated its contractual obligations, resulting in significant financial damages for GPGC.

The tribunal initially awarded GPGC $134.3 million in damages, calculated using the Early Termination Payment formula as specified in the purchase agreement.

Ghana, however, did not comply with the tribunal’s verdict, prompting GPGC to pursue the matter in U.S. courts. On January 19, 2024, GPGC filed a lawsuit in the District of Columbia, citing the Federal Arbitration Act and the New York Convention, which provides for the recognition of international arbitration awards.

Court documents reveal that the petition was formally delivered to Ghana’s Ministry of Foreign Affairs and Regional Integration on January 23, 2024.

Despite receiving the legal documents, Ghana failed to respond to the court proceedings by the March 29, 2024, deadline. This non-response led the U.S. court to grant a default judgment in favor of GPGC.

Chief Judge James E. Boasberg emphasized that the arbitral judgment fell under the New York Convention, which requires member states, including the United States, to recognize and enforce international arbitration awards.

He further noted that Ghana had voluntarily submitted to international arbitration when entering the power purchase agreement, waiving its sovereign immunity in the process.

Although GPGC was not awarded pre-judgment interest, Ghana will be obligated to pay post-judgment interest at rates set by U.S. law.

This adds an additional financial burden to the $111.5 million judgment as the payment accrues further interest over time.

The country narrowly avoided a separate $11 billion arbitration award in the infamous P&ID case, which was eventually overturned due to findings of corruption and bribery.

However, in the GPGC case, multiple European courts have upheld enforcement orders, leaving Ghana with limited legal recourse.

The court’s decision is expected to place added pressure on Ghana as it faces mounting financial obligations related to international arbitration disputes.

GPGC has indicated that it will pursue all available legal avenues to ensure full recovery of the damages awarded by the tribunal, including possible enforcement actions in other jurisdictions.

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Zhongshang Fucheng Moves to Auction Nigerian Properties in UK Following $70M Arbitration Award

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Bola Tinubu

Zhongshang Fucheng Industrial Investment Ltd has escalated its efforts to collect a $70 million arbitration award from Nigeria by putting two residential properties in Liverpool up for sale.

This significant development follows a 2021 arbitration verdict against Nigeria, which remains unsettled.

The Chinese investment group has reportedly listed two buildings linked to the Nigerian government—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—on the global online marketplace eBay.

The move is part of a broader strategy to recover the outstanding $70 million, which includes a principal amount of $55,675,000, plus interest and legal costs, as stipulated by the arbitration verdict.

The arbitration stemmed from a dispute between Zhongshang Fucheng and Ogun State over a trade treaty violation.

The company claimed that Ogun State rescinded its rights to a free trade zone in 2016, prompting a legal battle that saw Zhongshang’s executives expelled from Nigeria.

The British court granted Zhongshang the authority to seize Nigerian assets in the UK after the Nigerian government failed to settle the arbitration judgment.

The seizure and subsequent auction of these properties mark a pivotal moment in the ongoing legal conflict.

The properties were confiscated because they were not classified as diplomatic or consular assets, making them subject to seizure under the court’s orders.

According to sources familiar with the situation, the properties are valued at approximately $2.2 million.

Zhongshang Fucheng has opted for an online auction to expedite the sale, aiming to reach a broad pool of potential buyers.

The decision to use eBay highlights the company’s commitment to transparency and swift asset recovery.

“This move is not just about recovering the funds; it’s a demonstration of our commitment to enforcing the arbitration award and ensuring that due process is followed,” said a consultant working with Zhongshang Fucheng, who spoke on condition of anonymity.

The Nigerian government, already grappling with similar arbitration cases, is facing increased scrutiny as European courts have granted enforcement orders in several countries, including the UK, Belgium, and France.

The ongoing conflict with Zhongshang Fucheng has intensified pressure on Nigerian authorities to address these legal and financial challenges more effectively.

In June 2024, the UK High Court, King’s Bench Division, ruled in favor of Zhongshang’s right to seize the Liverpool properties.

Master Lisa Sullivan’s ruling emphasized that the properties were used for commercial purposes, thereby excluding them from sovereign immunity protections.

The case against Nigeria underscores broader issues related to international arbitration and asset recovery, reflecting a growing trend of global legal disputes over state assets.

For Zhongshang Fucheng, the auction of the Liverpool properties represents a critical step in securing the funds awarded by the arbitration panel.

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