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Critics of $1bn For B’Haram Fund Uninformed

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Lai Mohammed
  • Critics of $1bn For B’Haram Fund Uninformed

The Federal Government has described as unnecessary, uninformed and highly-partisan the criticism of the recently approved $1bn by the Nigeria Governors Forum for the military to tackle the country’s security challenges.

It noted that the criticism was uninformed and unnecessary because everyone knew the military’s role in combating the numerous security crises, including insurgency, facing the country.

The Minister of Information and Culture, Alhaji Lai Mohammed, stated this in Lagos on Tuesday, during a press conference.

He said, “There has been an unnecessary, uninformed and highly-partisan criticism of the $1bn which was recently approved by the Nigeria Governors Forum for the military to tackle the security challenges facing the country, including Boko Haram, illegal oil bunkering, kidnapping and cattle rustling.

“I said unnecessary and uninformed because everyone knows the role the military is playing in helping to tackle the numerous security crises facing the states, let alone the war against Boko Haram.

“The fact that Boko Haram has been largely degraded does not mean the war is over. As we have said times without number, asymmetric wars like the one against Boko Haram, do not end with an armistice. It is therefore curious that some of those who have criticised the $1bn approval have hinged their argument on the fact that Boko Haram has been degraded. Perhaps also, the critics do not know that fighting an asymmetric war is costlier than fighting a conventional war. In any case, wars, especially the war against terror, are never fought with budgetary provisions.”

The minister added that it was common knowledge that the annual military budget was not commensurate with the internal security challenges facing the country for which it had repeatedly relied on the military to assist the police and the civil defence corps.

The minister added, “When insurgents take over a chunk of our nation’s territory, we turn to the military. When the farmers/herders, clashes escalate, we turn to the military. When kidnappers up their game, we turn to the military, when illegal oil bunkerers and pipeline vandals are seeking to overwhelm our oil production and export, we turn to the military, when ethno-religious clashes occur, we turn to the military. But when it is time to give the military the resources it needs to function, we say it is a waste of scarce resources, we come up with spurious reasons to deny the military its due.”

Quoting from the scriptures that “to whom much is given, much is expected,” Mohammed stated that it presupposes that to whom much was expected, much should be given.

According to him, the NGF acted wisely in approving the withdrawal of $1bn from the Excess Crude Account to fight Boko Haram and other security challenges in the country.

He also queried whether the money was too much for the military to tackle insecurity at this time with the security of lives and property being the core of any government and the NGF attesting to this by approving the fund withdrawal of the money from the ECA.

The minister said, “Let’s get down to the brass tacks by looking at the operations of just one arm of the Nigerian Armed Forces. In this case, the Nigerian Air Force, in tackling one of the security challenges facing the nation. Let’s take the Boko Haram insurgency.

“The aircraft being used for the war, including fighter jets and helicopters, altogether consume 64,021.08 litres of fuel per day. With the aircraft flying a total of about 30 sorties a day, and at N275 per litre, it costs a total of N15,153,428.25 daily to fuel the aircraft.

“The spares for the aircraft from January to November 2017 cost a total of N20,019,513,739.88, while consumables for the aircraft, and I am talking of engine oil, plugs etc, amounted to N3,863,600 monthly and N46,363,200.00 yearly. What about the cost of ammunition? Just for 42 days, from November 5 to 17 December, the cost of ammunition was over $5m.

“Since we are using the air force as a reference point, what about the cost of acquiring air force platforms? For example, the 12 Super Tuscano aircraft recently approved for sale to Nigeria by the US Government costs a whopping $490m, yet this is government to government contract, and the costs of spares, munitions and other consumables are not included! Let’s remember that the costs stated above are for the air force alone and restricted to operations in the North-East alone.”

He noted that the above cost excluded that of the army and the navy also fully involved in the war against insecurity.

“Neither have we included the operating cost of the Nigerian Air Force in the Niger Delta to curb pipeline vandalism, in the North-West to contain cattle rustlers, in the North-Central to curtail herdsmen and farmers’ clashes or kidnappings, armed robberies and separatism in other parts of the country,” Mohammed stated.

He further said that if the military had been better equipped to tackle Boko Haram in the early days of the insurgency, thousands of lives, including those of security officers, could have been saved.

Describing the NGF’s action as patriotic and right but not unprecedented, Mohammed said because some people under a different government looted funds meant for the military did not mean the military should be left to its own devices.

The minister added, “Or that every allocation to the military will suffer the same fate. Ours is a disciplined government that does not allow allocated funds to end up in private pockets or spend on prayers. We will always empower the military and other security agencies to be better able to carry out their tough tasks.”

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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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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Gas-Pipeline

The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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