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IGP Collects N120bn Annually From Firms

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nigerian-police-force
  • IGP Collects N120bn Annually From Firms, VIPs –Senator Misau

The senator representing Bauchi Central Senatorial District in the upper chamber of the National Assembly, Isah Misau, has taken a swipe at the Inspector General of Police, Ibrahim Idris, alleging that Idris collected about N120bn annually as payment for special security services rendered by the police to corporate organisations and very important personalities.

He, however, added that over 50,000 personnel involved in such act had not been benefitting from the money.

Misau, who is a retired Deputy Superintendent of Police, had also alleged that the special promotion of officers by the force was fraught with corruption, an allegation the IGP subsequently set a panel to investigate.

But in a telephone interview with one of our correspondents on Thursday evening, the senator said he would not honour the invitation of the IGP’s probe panel because the police could not be a judge in a case involving them.

He said the Department of State Services or the Economic and Financial Crimes Commission should be given the task of investigating his claims.

However, speaking at a press conference in Abuja on Friday, the lawmaker, who denied the allegation by police authorities that he was on a vendetta against the force due to his dismissal from the service, alleged that posting of senior officers such as commissioners and mobile police commanders attracted between N10m and N15m bribe.

Misau said, “Based on available records, series of petitions and reports from insiders, the incumbent IGP has no capacity to run the police, just like the Chairman of the Police Service Commission, Mike Okiro (retd.), a former IGP, who also lacks similar capacity going by the N300m scam and others hanging on his neck since 2011 during the presidential primary of the Peoples Democratic Party, where he served as the head of the security committee.

“Specifically, the IGP, on good authority from within the force, collects over N10bn on monthly basis as money for special security provided by men of the force to corporate bodies and highly placed individuals, including criminals, running to N120bn on a yearly basis without any reflection in the police’ annual budget or internally generated revenue.”

“On nepotism, the IGP is scoring high marks by making almost half of the mobile commanders in the country people of his Nupe extraction.”

According to the senator, such postings have not helped the police in their war against crime in the country.

“Police is not a political outfit and should not be allowed to be turned into one by IGP Idris,” he stated.

Misau also dismissed the allegation made by the Police Public Relations Officer, Mr. Jimoh Moshhod, that he (Misau) was dismissed for misconduct while displaying his letter of retirement issued by the Police Service Commission.

The letter, dated March 5, 2014, and signed by one Mrs. Garos Logams, on behalf of the then Permanent Secretary/Secretary to the PSC, read in part, “I wish to inform you that the commission has approved your retirement from the service of the Nigeria Police Force with effect from 1st December, 2010, after 10 years of meritorious service.”

Speaking further on why he would not honour the invitation by the IGP’s probe panel, Misau, in a telephone interview, stated, “You cannot be the judge in your own case. If really their hands are clean, they should bring an independent body. They brought the invitation (to me) because of fear.

“Under the Freedom of Information Act, they should make something like that public. It means they are not fair in what they are doing. If there is no corruption (in the process), they should make it public.

“They set up a panel led by one retired judge but the allegation is against them (police) and you cannot be the judge in your own case.”

Misau further alleged that there was more corruption in the Nigeria Police and the Police Service Commission apart from those in the promotion exercise.

He said, “Let me give you an example of the so many corruption cases that are taking place. More than 10,000 policemen are working with the oil companies and every month the companies are paying money. Where is the money going? Is the money going into the Federal Government’s coffers or into some people’s pockets?

“We have over 10,000 officers working in banks. Are they paying money to the Federal Government? Who are they paying the money to? Where is the money? We have policemen in thousands working for companies and private individuals. Go to the airports and you will see that people of questionable character have policemen attached to them. Are they paying money to the Federal Government?

“Why should the Federal Government train a policeman, give him uniform and gun; and then he is passed to an individual who will not pay anything to the Federal Government. Is that right under President Muhammadu Buhari’s administration?

“Last week, an organisation accused the Nigeria Police of bribery amounting to N400bn. Am I the person who said it?”

The senator said before he received the panel’s invitation, he had written the police authorities in which he invoked the Freedom of Information Act to compel the force to provide details of promotions since 2009, including the beneficiaries and reasons for their promotion.

He said police’s response was that he was not the chairman of the Senate Committee on Police Affairs and was not eligible to request for the information.

“I replied them again that I wrote not as chairman of the committee but as a citizen of Nigeria and as a senator who made an allegation and who wants to further show them that what he is saying is true,” he said.

The lawmaker alleged that although police were at the forefront of anti-corruption campaigns in developed countries, corruption had prevented Nigeria Police from leading the anti-graft war by the Buhari-led administration.

Okiro is performing well – PSC

When contacted, the PSC spokesman, Ikechukwu Ani, said Misau was entitled to his opinion about Okiro, but added that the commission’s chairman was performing well.

He cautioned the senator against making unsubstantiated allegations, stressing that he should present evidence on his allegations if he had any.

In a telephone interview, Ani said, “What has the promotion issue got to do with Okiro’s role in the PDP? The police have set up a panel. The commission too is investigating his allegations, and if he has evidence, he should present it before either of the panels. If he has issues with the IGP, he should leave the commission out of it; Okiro is doing well as chairman of the commission and this was attested to by everyone,” he stated.

Misau is a habitual liar –Police

While reacting to the allegations, the police described Misau as “a habitual liar and police deserter who would be brought to justice for his crimes.”

The Force spokesperson, Jimoh Moshood, said Misau was parading a forged retirement letter and called on the Senate to direct the former police officer to return to the force to face the disciplinary committee.

He said, “Everything Misau said is false; he is a habitual and unrepentant liar. DSP Isa Hamma is still a police officer, he is not a senator, his real name is Isa Hamma and his name is still on the police staff list.

“He deserted the force and didn’t fill the emolument form; he forged and paraded a retirement letter dated 2014 while he contested in the House of Representatives election in Bauchi State in 2011 and lost. He exited the force unceremoniously in 2010, but he is parading a letter dated 2014.”

Moshood said the police would give the Senate Ethics and Privileges Committee some time to deal with Misau, adding that if they failed, the police would have no choice than to arrest him and charge him for desertion and forgery.

He added, “He (Misau) should know that desertion and forgery are criminal offences and the police are going to pursue that. The Senate should ask DSP Hamma to return to the police to face a disciplinary committee for the various offenses he had committed. He is not qualified to be a senator and we are going to bring him to justice.”

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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Economy

Goldman Sachs Urges Bold Rate Hike as Naira Weakens and Inflation Soars

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Central Bank of Nigeria (CBN)

As Nigeria grapples with soaring inflation and a faltering naira, Goldman Sachs is calling for a substantial increase in interest rates to stabilize the economy and restore investor confidence.

The global investment bank’s recommendation comes ahead of the Central Bank of Nigeria’s (CBN) key monetary policy decision, set to be announced on Tuesday.

Goldman Sachs economists, including Andrew Matheny, argue that incremental rate adjustments will not be sufficient to address the country’s deepening economic challenges.

“Another 50 or 100 basis points is certainly not going to move the needle in the eyes of an investor,” Matheny stated. “Nigeria needs a bold, decisive move to curb inflation and regain investor trust.”

The CBN, under the leadership of Governor Olayemi Cardoso, is anticipated to raise interest rates by 75 basis points to 27% in its upcoming meeting.

This would mark a continuation of the aggressive tightening campaign that began in May 2022, which has seen rates increase by 14.75 percentage points.

Despite this, inflation has remained stubbornly high, highlighting the need for more substantial measures.

The current economic landscape is marked by severe challenges. The naira’s depreciation has led to higher import costs, fueling inflation and eroding consumer purchasing power.

The CBN has attempted to ease the currency’s scarcity by selling dollars to local foreign exchange bureaus, but these efforts have yet to stabilize the naira significantly.

“Developments since the last meeting have definitely been hawkish,” noted Matheny. “The naira has weakened further, exacerbating inflationary pressures. The CBN’s policy needs to reflect this reality more aggressively.”

In response to the persistent inflation and naira weakness, analysts are urging the central bank to implement a more coherent strategy to manage the currency and inflation.

James Marshall of Promeritum Investment Management LLP suggested that the CBN should actively participate in the foreign exchange market to mitigate the naira’s volatility and restore market confidence.

“The central bank needs to be a more consistent and active participant in the forex market,” Marshall said. “A clear strategy to address the naira’s weakness is crucial for stabilizing the economy.”

The CBN’s decision will come as the country faces a critical period. With inflation expected to slow due to favorable comparisons with the previous year and new measures to reduce food costs, including a temporary import duty waiver on wheat and corn, there is hope that the economic situation may improve.

However, analysts anticipate that the CBN will need to implement one final rate hike to solidify inflation’s slowdown and restore positive real rates.

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Currency Drop Spurs Discount Dilemma in Cairo’s Markets

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Egyptian pound

Under Cairo’s scorching sun, the bustling streets reveal an unexpected twist in dramatic price drops on big-ticket items like cars and appliances.

Following March’s significant currency devaluation, prices for these goods have plunged, leaving consumers hesitant to make purchases amid hopes for even better deals.

Mohamed Yassin, a furniture store vendor, said “People just inquire about prices. They’re afraid to buy in case prices drop further.” This cautious consumer behavior is posing challenges for Egypt’s consumer-driven economy.

In March, Egyptian authorities devalued the pound by nearly 40% to stabilize an economy teetering on the edge. While such moves often lead to inflation spikes, Egypt’s case has been unusual.

Unlike other nations like Nigeria or Argentina, where costs soared post-devaluation, Egypt is witnessing falling prices for high-value items.

Previously inflated prices were driven by a black market in foreign currency, where importers secured dollars at exorbitant rates, passing costs onto consumers.

Now, with the pound stabilizing and foreign currency more accessible, retailers are struggling to sell inventory at pre-devaluation prices.

Despite price reductions, the overall consumer market remains sluggish. The automotive sector has seen a near 75% drop in sales compared to pre-crisis levels.

Major brands like Hyundai and Volkswagen have slashed prices by about a quarter, yet buyers remain cautious.

The economic strain is not limited to luxury items. Everyday expenses continue to rise, albeit more slowly, with anticipated hikes in electricity and fuel prices adding to the pressure.

Experts highlight a period of adjustment as both consumers and traders navigate the volatile exchange-rate environment. Mohamed Abu Basha, head of research at EFG Hermes, explains, “The market is taking time to absorb recent fluctuations.”

Meanwhile, businesses face declining sales, impacting their ability to manage operating costs. Yassin’s store has offered discounts of up to 50% yet remains quiet. “We’ve tried everything, but everyone is waiting,” he laments.

The devaluation has spurred a shift in economic dynamics. Inflation has eased, but the pace varies across sectors. Clothing and transportation costs are up, while food prices fluctuate.

With the phasing out of fuel subsidies and potential electricity price increases, Egyptians are bracing for further financial strain. The recent 300% rise in subsidized bread prices adds another layer of concern.

The situation underscores the balancing act between maintaining consumer confidence and attracting foreign investment.

Economists suggest potential stimulus measures, such as lowering interest rates or increasing public spending, to boost demand.

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MPC Meeting on July 22-23 to Tackle Inflation as Rates Set to Rise Again

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Interbank rate

The Monetary Policy Committee (MPC) is set to convene on July 22-23, 2024, amid soaring inflation and economic challenges in Nigeria.

Led by Olayemi Cardoso, the committee has already increased interest rates three times this year, raising them by 750 basis points to 26.25 percent.

Nigeria’s annual inflation rate climbed to 34.19 percent in June, driven by rising food prices. Despite these pressures, the Central Bank of Nigeria (CBN) projects that inflation will moderate to around 21.40 percent by year-end.

Market analysts expect a further rate hike as the committee seeks to rein in inflation. Nabila Mohammed from Chapel Hill Denham anticipates a 50–75 basis point increase.

Similarly, Coronation Research forecasts a potential rise of 50 to 100 basis points, given the recent uptick in inflation.

The food inflation rate reached 40.87 percent in June, exacerbated by security issues in key agricultural regions.

Essential commodities such as millet, garri, and yams have seen significant price hikes, impacting household budgets and savings.

As the MPC meets, the National Bureau of Statistics is set to release data on selected food prices for June, providing further insights into the inflationary trends affecting Nigerians.

The upcoming MPC meeting will be crucial in determining the trajectory of Nigeria’s monetary policy as the government grapples with economic instability.

The focus remains on balancing inflation control with economic growth to ensure stability in Africa’s largest economy.

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