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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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Nigeria’s N3.3tn Power Sector Rescue Package Unveiled

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power project

President Bola Tinubu has given the green light for a comprehensive N3.3 trillion rescue package.

This ambitious initiative seeks to tackle the country’s mounting power sector debts, which have long hindered the efficiency and reliability of electricity supply across the nation.

The unveiling of this rescue package represents a pivotal moment in Nigeria’s quest for a sustainable energy future. With power outages being a recurring nightmare for both businesses and households, the need for decisive action has never been more urgent.

At the heart of the rescue package are measures aimed at settling the staggering debts accumulated within the power sector. President Tinubu has approved a phased approach to debt repayment, encompassing cash injections and promissory notes.

This strategic allocation of funds aims to provide immediate relief to power-generating companies (Gencos) and gas suppliers, while also ensuring long-term financial stability within the sector.

Chief Adebayo Adelabu, the Minister of Power, revealed details of the rescue package at the 8th Africa Energy Marketplace held in Abuja.

Speaking at the event themed, “Towards Nigeria’s Sustainable Energy Future,” Adelabu emphasized the government’s commitment to eliminating bottlenecks and fostering policy coherence within the power sector.

One of the key highlights of the rescue package is the allocation of funds from the Gas Stabilisation Fund to settle outstanding debts owed to gas suppliers.

This critical step not only addresses the immediate liquidity concerns of gas companies but also paves the way for enhanced cooperation between gas suppliers and power generators.

Furthermore, the rescue package includes provisions for addressing the legacy debts owed to power-generating companies.

By utilizing future royalties and income streams from the gas sub-sector, the government aims to provide a sustainable solution that incentivizes investment in power generation capacity.

The announcement of the N3.3 trillion rescue package comes amidst ongoing efforts to revitalize Nigeria’s power sector.

Recent initiatives, including tariff adjustments and regulatory reforms, underscore the government’s determination to overcome longstanding challenges and enhance the sector’s effectiveness.

However, challenges persist, as highlighted by Barth Nnaji, a former Minister of Power, who emphasized the need for a robust transmission network to support increased power generation.

Nnaji’s advocacy for a super grid underscores the importance of infrastructure development in ensuring the reliability and stability of Nigeria’s power supply.

In light of these developments, stakeholders have welcomed the unveiling of the N3.3 trillion rescue package as a decisive step towards transforming Nigeria’s power sector.

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Nigeria’s Inflation Climbs to 28-Year High at 33.69% in April

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Nigeria's Inflation Rate - Investors King

Nigeria is grappling with soaring inflation as data from the statistics agency revealed that the country’s headline inflation surged to a new 28-year high in April.

The consumer price index, which measures the inflation rate, rose to 33.69% year-on-year, up from 33.20% in March.

This surge in inflation comes amid a series of economic challenges, including subsidy cuts on petrol and electricity and twice devaluing the local naira currency by the administration of President Bola Tinubu.

The sharp rise in inflation has been a pressing concern for policymakers, leading the central bank to take measures to address the growing price pressures.

The central bank has raised interest rates twice this year, including its largest hike in around 17 years, in an attempt to contain inflationary pressures.

Governor of the Central Bank of Nigeria has indicated that interest rates will remain high for as long as necessary to bring down inflation.

The bank is set to hold another rate-setting meeting next week to review its policy stance.

A report by the National Bureau of Statistics highlighted that the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.

Food inflation, which accounts for the bulk of the inflation basket, rose to 40.53% in annual terms, up from 40.01% in March.

In response to the economic challenges posed by soaring inflation, President Tinubu’s administration has announced a salary hike of up to 35% for civil servants to ease the pressure on government workers.

Also, to support vulnerable households, the government has restarted a direct cash transfer program and distributed at least 42,000 tons of grains such as corn and millet.

The rising inflation rate presents significant challenges for Nigeria’s economy, impacting the purchasing power of consumers and adding strains to household budgets.

As the government continues to grapple with inflationary pressures, policymakers are faced with the task of implementing measures to stabilize prices and mitigate the adverse effects on the economy and livelihoods of citizens.

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FG Acknowledges Labour’s Protest, Assures Continued Dialogue

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Power - Investors King

The Federal Government through the Ministry of Power has acknowledged the organised Labour request for a reduction in electric tariff.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had picketed offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies nationwide over the hike in electricity tariff.

The unions had described the upward review, demanding outright cancellation.

Addressing State House correspondents after the Federal Executive Council (FEC) meeting on Tuesday, Minister of Power, Adebayo Adelabu, said labour had the right to protest.

“We cannot stop them from organizing peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.”

“We have heard their demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

“But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

“A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position.

“My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.”

He said there was the need for sacrifice from everybody, “from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain”.

“I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.”

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