Connect with us

Government

Nigeria: A Nation that Thrives on Loots

Published

on

US economy
  • Nigeria: A Nation that Thrives on Loots

If there is anything to be taken away from the current economic recession, it is the fact that the Nigerian economy has been thriving on proceeds from loots, embezzlements and all kinds of criminal activities. It is also obvious that the 6-7 percent economic growth rates recorded during the past administrations were bubbles created by oil boom but sold to the Nigerian people as a sustainable economic expansion.

For instance, when oil price was $107 a barrel, a total of $29 billion out of the $55 billion that was generated in 2011 made it into the foreign reserves. Whereas the current administration has been able to save $33 billion with oil prices averaging $45 a barrel in the last 12-month. Even with crude oil hitting a 13-year low of $26 barrel in February 2016.

The question is, why wasn’t recession during the previous administration even though the foreign reserves was mere $29 billion? The answer is simple, the bulk of what wasn’t saved find its way into the economy through lavish spending, undisclosed investments and bribery, which in-turn help serviced the economy with just enough forex and bolstered consumer spending through loot-sustained manufacturing sector.

Similarly, on JP Morgan bond listing and positive ratings, the Nigerian economy was evaluated based on its oil revenue generation and not economic fundamentals. In 2013, when Nigeria was listed on emerging bond market index, the unemployment rate was averaging 9.76 percent, while inflation rate stood at 8.5 percent, the lowest in 5 years and still new job creation was weak, meaning the decision was solely based on oil revenue without a futuristic growth plan. Hence, the reason the country was delisted after global oil prices plunged by 70 percent and the refusal of the current administration to devalue the Naira to accommodate the fall in foreign revenues.

Accordingly, the banking and oil and gas sectors that were built on proceeds from loot and poor governance hit a rock bottom but not without dragging the Nigerian Stock Exchange market with it. That was another market driven by bogus sentiment. However, it was the global oil glut that burst the artificial bubbles and exposed the nation for what it truly is.

While plunged in revenue started the economic recession, it was loot that couldn’t find its way into the economy due to the ongoing war on corruption that worsens the situation as majority of the fund linked to a series of accused facing trials were in U.S. dollars. Experts like Sharafadeen Tella, an economist has blamed the booming parallel market on their activities, the very reason consumer prices are at a record high and consumer spending and new job creation plummeted.

However, despite all these shortcomings the present administration failed to formulate an appropriate policy to stimulate the economy and curtail high unemployment rate.  For instance, when IMF and economic experts advised the federal government to devalue the Naira, they refused. Until they realized that the external reserves couldn’t sustain the growing forex demands before introducing Forex Flexibility Policy on June 20, 2016 — three days to Brexit Referendum. A period when global risk and uncertainty were at the highest since 2009 economic recession. Therefore, the policy failed as global investors were skeptical of surged in emerging market risks.

Realizing the danger of low capital importation and forex revenue on the economy, the Central Bank of Nigeria hiked interest rate by 200 basis points from 12 percent to 14 percent not only to curb advancing inflation rate as announced by the apex bank but also to lure foreign investors to the capital market to supplement oil revenue. This further stressed businesses that were already struggling to meet financial obligations and forced a lot out of business following their inability to access cheap loans or repay previous ones.

Finally, while the recent surge in global oil prices is fueling economic recovery, it will be in futility if the nation fails to successfully diversify the economy and transform from import dependent economy to both export and domestic-product consuming economy.  One, it is unlikely that global oil prices will see the days of $115 a barrel due to the growing campaign against foil fuel and a series of pacts signed by nations to intensify efforts on renewable energy. Two, a mono-product economy like Nigeria may just be having a second chance at perfecting its policy as global oil demand is waning and might get worse over time. Countries like Saudi Arabia are already developing policies to diversify the economy and reduce the effect of oil on their economic performance.

The truth is the most populous black nation, Nigeria is at a critical juncture in history, an opportunity to build a new nation divulge of corruption but economically viable and in sync with the rest of the world or a total disintegration of the entire nation as failure to build an inclusive government as opposed to the conventional centralized government will further aggravate the aggrieved minority clamoring for change across the country and worsen long-term business outlook of the nation.

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

EFCC Nabs Ex-Delta Governor, Okowa, For Alleged N1.3trn Fraud

Published

on

governor-ifeanyi-okowa-of-delta-state

Operatives of the Economic and Financial Crimes Commission (EFCC) have arrested former Delta State Governor, Ifeanyi Okowa, over the alleged diversion of N1.3 trillion.

Sources with the EFCC revealed that Okowa visited the EFCC office in Port Harcourt, Rivers State, on Monday before he was subsequently detained by officials.

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

It was gathered that Okowa was at the Port Harcourt office of the Commission following an invitation from investigators probing the allegations against him.

The former governor was said to have been apprehended no sooner than he arrived at the anti-graft office.

Okowa was also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas.

Sources said the former governor reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project.

The funds are alleged to have been misappropriated for other purposes.

They noted that investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State.

Okowa was the running mate to Atiku Abubakar, the presidential candidate of the People’s Democratic Party in the 2023 election.

He was the governor of Delta State from 2015 to 2023 and was succeeded by Sheriff Oborevwori, the incumbent Governor.

When contacted, EFCC spokesperson, Dele Oyewale, confirmed the arrest but declined further comment on the matter.

Continue Reading

Government

FG Frees Minors Remanded For Protesting Hunger In Nigeria

Published

on

Some minors who joined the nationwide #EndBadGovernance in Nigeria have regained their freedom.

Their release followed the striking out of the treason charge against them by a Federal High Court sitting in Abuja on Tuesday.

Investors King had reported that the Federal Government through its security agencies arrested and preferred treason allegations against the minors who participated in the August #EndBadGovernance protest.

However, President Bola Tinubu had directed the release of the minors owing to the outrage that greeted their arrest, prosecution and incarceration.

Carrying out the presidential directive when the matter resumed on Tuesday, counsel to the Attorney-General of the Federation (AGF) and Minister of Justice, Mr Lateef Fagbemi, SAN, Mr. Mohammed Abubakar, made an application for discontinuation of the case.

Abubakar, who is the Director of Public Prosecution of the Federation (DPPF), premised his application on provisions of Sections 174(1), (b), and (c) of the 1999 Constitution (as amended) and 108 of the Administration of Criminal Justice Act (ACJA), 2015.

He informed the court that the AGF had officially taken over the case file, saying the Federal Government no longer has interest in the case against the protesters.

The DPPF also applied for the proceeding to be conducted without the presence of the minors in the courtroom, in line with provisions of Section 266 (b) of the ACJA, 2015, and Section 1 of the Child’s Rights Act.

Counsel to the defendants, including Mr Femi Fanala, SAN, did not oppose the application.

To this end, Justice Obiora Egwuatu struck out the charge against the protesters who were minors.

Recall that the judge had last Friday admitted the 114 protesters arraigned by the police to N10 million bail each with two sureties each in like sum.

Continue Reading

Government

Knocks, Kudos For Judiciary Over Stoppage of Allocations to Rivers State as Fubara Boasts of Coping Without FG’s Funds

Published

on

Siminalayi Fubara

A mixture of condemnation and praises has trailed a judgement of a Federal High Court that stopped the release of state allocations to the Rivers State Government.

Investors King had reported that Justice Joyce Abdulmalik of a Federal High Court in Abuja, on Wednesday, ordered the stoppage of the release of monthly federal allocations to Rivers State.

Justice Abdulmalik predicated her action on the grounds that the state government was in violation of the Constitution as regarding the state expenditures.

According to the judge, the current budget being operated by the state was not passed by a lawful arm of the Rivers State House of Assembly, therefore, Fubara is not entitled to allocations from the government at the centre.

Meanwhile, some stakeholders in the country have knocked the judiciary over the decision, calling on the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun to rein in on judges’ actions over the political crisis ravaging Rivers.

For former Vice President Atiku Abubakar, the judiciary should be cautioned against setting the South-South State on fire.

In a statement by his media adviser, Paul Ibe, the former Vice President, said it was appalling that some elements loyal to the Federal Government were pulling the strings from behind.

Atiku wondered why Justice Joyce Abdulmalik issued the order when it was public knowledge that Rivers State had already challenged the Court of Appeal’s judgement on the legality of Rivers State’s 2024 budget.

He, however, called on Justice Kekere-Ekun to ensure that those found wanting are disciplined in order to restore the fading glory of the nation’s judiciary.

In the same vein, Chief Emeka Kalu, National Coordinator of the Peoples Democratic Party (PDP) Coalition observed that the ongoing crisis plaguing Rivers State must be handled with caution to save it from unnecessarily being flamed in uncontrollable state of lawlessness.

Kalu in the statement said the judiciary is expected to maintain its integrity and protect her independence by working to avoid being politically purchased to harm democratic processes and the ethics of law.

According to him, the recent judgement by the Abuja Federal High Court division directing the RMAFC to stop releasing statutory monthly allocation to the State government was done out of bias and politically motivated plans to disrupt Fubara ‘s administration.

The group affirmed that it remains the height of injustice for a political party under the guise of personal interest to continue raising the dust of anarchy against the will of the people and the judiciary is expected to redeem and revitalize the failed system instead of allowing herself to be used to ruin the polity.

On the contrary, the National Democratic and Change Coalition has hailed the court for the judgment banning further release of allocations to Rivers and called on Governor Fubara to refund all monies spent without appropriation to the state coffers.

The coalition, while expressing satisfaction with the ruling, said the people of Rivers State have been vindicated and the long-awaited justice has been served on the governor.

Reacting via a press release by John Uloko, president of the coalition hailed Justice Joyce Abdulmalik for the judgment, saying that since January 2024, Rivers State had received and spent allocations based on an “illegitimate” budget, thereby describing it as a “constitutional aberration”.

The group, made up of lawyers, agreed with the court that Governor Siminalayi Fubara’s presentation of the 2024 budget before a four-member Rivers House of Assembly was an affront to the constitutional provision.

It added that the ruling is a victory for democracy and will teach rogue governors the bitter lesson that the Constitution of the Federal Republic must be respected and the sanctity of the nation’s democratic institutions upheld irrespective of their political desperation.

Nonetheless, the embattled Governor Fubara, on Wednesday said the restriction placed on the state allocations is “the least” of his problems.

Governor Fubara stated this during a special thanksgiving service organised by the state government to celebrate his administration’s resilience amid escalating political crises, which began with the arson attack on the State House of Assembly complex exactly one year ago.

Governor Fubara assured that despite the court order, his administration would continue payments to contractors and ensure workers’ salaries are disbursed from today (Thursday).

He also confirmed that allocations for the 23 Council Chairmen would be credited, as the Joint Accounts Allocation Committee procedures have been completed.

The governor encouraged his supporters to remain resilient, assuring them that all challenges are surmountable.

Reflecting on his administration’s success, Governor Fubara noted that despite predictions that his government would not last even a week, he has successfully led for over a year.

He said his administration has also conducted local government elections against all odds and maintained a full cabinet despite attempts to undermine his leadership through resignations.

Highlighting his administration’s progress, he mentioned ongoing project executions across the state, countering critics who claimed he would be unable to deliver.

He also cited recent reports that position Rivers State as one of the leaders in financial accountability and transparency.

Continue Reading

Trending