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Govt Officials Received N400bn Bribes in One Year – NBS

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  • Govt Officials Received N400bn Bribes in One Year – NBS

A total of N400bn was received in bribes by public officials within a period of one year, the National Bureau of Statistics said on Wednesday.

The NBS stated this in its National Corruption Report, adding that 32.3 per cent of Nigerian adults who had contact with public officials between June 2015 and May 2016 had to pay bribes to the government workers.

The report, a copy of which was obtained by our correspondent in Abuja, was prepared by the NBS in collaboration with the United Nations Office on Drugs and Crime.

It said the majority of those who paid bribes to public officials did so more than once over the course of the year.

According to the survey, bribe payers in Nigeria pay an average of six bribes in one year, or one bribe every two months.

By combining the total number of people who paid bribes to public officials with the frequency of the payments, the NBS report estimated that a total of 82.3 million bribes were paid in the 12-month period.

This, the report stated, resulted in an average of almost one bribe paid by every adult Nigerian per year.

The report read in part, “Taking into account the fact that nine out of every 10 bribes paid to public officials in Nigeria are paid in cash and the size of the payments made, it is estimated that the total amount of bribes paid to public officials in Nigeria in the 12 months was around N400bn, the equivalent of $4.6bn in purchasing power parity.

“This sum is equivalent to 39 per cent of the combined federal and state education budgets in 2016.

The average sum paid as a cash bribe in Nigeria is approximately N5,300, which is equivalent to $61 – PPP.

“This means that every time a Nigerian pays a cash bribe, he or she spends an average of 28.2 per cent of the average monthly salary of N18,900.

“Since bribe payers in Nigeria pay an average of 5.8 bribes over the course of one year, 92 per cent of which are paid in cash, they spend an average of N28,200 annually on cash bribes – equivalent to 12.5 per cent of the annual average salary.”

The NBS report said 85.3 per cent of bribery cases in Nigeria were initiated either directly or indirectly by public officials, adding that almost 70 per cent of bribes were paid before any service was rendered.

“With such a large portion of public officials initiating bribes, which are paid upfront, it seems that many public officials show little hesitation in asking for a kickback to carry out their duty and that bribery is an established part of the administrative procedure in Nigeria,” it added.

While money is the most important form of bribe payment in Nigeria, the report stated that other forms such as the provision of food and drink, the handing over of valuables or the exchange of another service or favour also existed.

The report further revealed that 42 per cent of bribes in Nigeria were paid to speed up or finalise an administrative procedure that might otherwise be delayed for a long period or even indefinitely.

According to the report, the second largest proportion of bribes is paid to avoid a fine through frequent encounters with police, while 13 per cent of all bribes are paid to avoid the cancellation of public utility services, an indication that the provision of the most basic amenities, including water and sanitation, can be subject to abuse of power by public officials in Nigeria.

The report stated that law enforcement agents such as the police and judiciary workers such as judges and magistrates were the highest takers of bribe in Nigeria.

It stated, “Police officers are the type of public officials to whom bribes are most commonly paid in Nigeria. Of all adult Nigerians who had direct contact with police officers in the 12 months prior to the survey, almost half paid the officers at least one bribe, and in many cases, more than one since police officers are also among the three types of public officials to whom bribes are paid most frequently in Nigeria.

“At the same time, the average bribe paid to police officers is somewhat below the average bribe size.

“Although fewer people come into contact with judiciary officials than with police officers over the course of the year, when they do, the risk of bribery is considerable: at 33 per cent, the prevalence of bribery in relation to prosecutors is the second highest, closely followed by judges and magistrates.”

Other public officials with a high risk of bribery, according to the report, are car registration/driving licence officers (28.5 per cent); tax and customs officers (27.3 per cent); road traffic management officials (25.5 per cent); public utilities officers (22.4 per cent); and land registry officers (20.9 per cent).

“This shows that corruption takes place across a number of different sectors of the public administration and that certain public officials have a disproportionate impact on the daily lives of Nigerians,” it added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

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power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

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Economy

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

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Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

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Economy

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

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petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

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