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FG, W’Bank Officials to Meet in Washington to Conclude Power Recovery Plan

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  • FG, W’Bank Officials to Meet in Washington to Conclude Power Recovery Plan

Nigeria and the World Bank Group would meet this week in Washington D.C. to discuss and possibly conclude operational terms in the power sector recovery plan, which both parties have worked on and agreed to use to respond adequately to the current challenges threatening Nigeria’s electricity sector.

Reporters learnt on Sunday in Abuja that the Minister of Power, Works and Housing, Mr. Babatunde Fashola, will lead a team comprising key officials in his ministry and the Office of the Vice President to the meeting which is expected to hold on the sidelines of the annual World Bank/International Monetary Fund (IMF) spring meetings.

Reliable sources that are privy to this, confirmed that the meeting was purposely arranged to hold at the time of the spring meetings which will hold between April 21 and 23.

The sources explained that Nigeria and the World Bank would take time out to discuss key factors in the implementation of the power sector recovery plan.

Just last week, Fashola confirmed that the Federal Executive Council (FEC) had approved the plan for use, paving the way for Nigeria and the Bank to conclude discussions on the plan.

However, total funding under the plan has not been disclosed by either the federal government or the Bank.

Last December, the government and the Bank were working on a recovery plan that would among other objectives seek to improve the technical and commercial performance of the country’s privatised power sector, as well as restore its business viability.

The recommendations in the plan were reportedly based on a joint diagnostic exercise conducted on the sector by the government and the Bank.

Even though the government recently approved a N701 billion payment guarantee to the Nigerian Bulk Electricity Trading Plc (NBET) to support its financial commitments to power generation companies (Gencos) in the country, Nigeria’s electricity market still contends with illiquidity, which analysts said could lead to total market failure if not addressed.

Based on this, the recovery plan was originated to turnaround the sector by helping to improve its governance practices, reduce technical and commercial electricity losses, and guarantee efficient sector investments.

When the plan was being worked on, the government and the Bank reportedly agreed that there were causes and dimensions to the challenges of the sector, and that the sector needed urgent attention to restore its financial tolerance to attract significant private sector investments.

It was further learnt that the World Bank would from this galvanise private and public sector investments through its various groups to support the power sector.

Also, both parties agreed on the need to prioritise actions that will strengthen the sector’s governance including the appointment of Commissioners for the Nigerian Electricity Regulatory Commission (NERC) which has already been done, restore investors’ confidence, attract public and private investment in generation, transmission, and distribution for enhanced service quality, and protect sector revenues with improved metering and collection.

The sources revealed that the planned Washington meeting would have other arms of the World Bank including the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) in attendance.

They explained that a couple of new generation projects like the solar power projects, for which the government has signed Power Purchase Agreements (PPAs) in July 2016, need the backing of the World Bank’s Partial Risk Guarantee (PRG) to move to closure, but have been held back and are waiting for the recovery plan to be launched.

Meanwhile, a report presented by NERC to power sector operators at their last monthly meeting in Oshogbo, Osun State, indicated that the 11 Discos performed woefully with meeting their metering plan in 2016.

NERC stated that while the Discos committed to add 1,754,800 meters in 2016, they only rolled out 215,424 meters, representing 12 per cent of the target.

The report showed that while Ibadan Disco provided the most number of meters – 67,473, representing 27 per cent of its metering commitment for 2016, Enugu Disco was the worst performer with just 2,356 meters, representing one per cent of its commitment for last year.

NERC also explained that there was a sharp decline in revenue remittances to the market by the Discos in 2016, with remittances to NBET falling from 51 per cent in 2015 to 26 per cent in 2016.

It said this was still causing major liquidity problems for the market.

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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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israel Gaza

Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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