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FG, NASS Political Deadlock Threatens Economic Rebound — Report

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National Assembly
  • FG, NASS Political Deadlock Threatens Economic Rebound 

The Central Bank of Nigeria has fallen victim to a battle between President Muhammadu Buhari and the National Assembly.

The Monetary Policy Committee did not meet on Monday and Tuesday, as scheduled, because it lacks a quorum after the Senate refused to approve Buhari’s nominees for the committee.

This means the MPC cannot meet, and the CBN can’t set interest rates.

This setback has added to the economic fallout from a longstanding political standoff.

Already, the NASS has threatened to delay the 2018 budget proposal for a third year amid acrimony over who is to blame for the impasse and haggling over allocations.

At the heart of the dispute is not only a supremacy battle, but an anti-corruption campaign that helped Buhari get elected in 2015 and that some lawmakers call a witch-hunt.

Legislators also want projects in their constituencies funded and implemented before next year’s elections.

The stalemate may jeopardise efforts to help recovery in an economy that contracted by 1.6 per cent in 2016 and has yet to deal with risks that may come with the February 2019 vote, according to a Bloomberg reports.

The standoff is “a key political risk for Nigeria this year as it may get in the way of the effective functioning of the economy,” the Head, Macroeconomic Research at Standard Chartered Bank Plc in London, Razia Khan, said.

“The belief is that in time the new MPC members will be appointed. If we get to the next set of meetings and they still can’t be held, there would be some disquiet among investors and concerns about the workability of Nigeria’s political system,” she added.

Presidential spokesman, Garba Shehu, declined to comment when phoned on Monday and said he hadn’t been briefed on the matter.

The cancelled MPC meeting is likely to reinforce the view that the current economic downturn has been worsened by poor policy management.

The MPC is likely to have held rates at 14 per cent if it had been able to meet, but the prospects of rate cuts at its March and May meeting now look more unlikely as it may take time to reach consensus on a change of policy once the committee has convened.

So far, markets have shrugged off the dispute and are betting the economic recovery will continue, according to Mark Bohlund of Bloomberg Economics

Nigerian stocks have risen 18 per cent this year in dollar terms, the most globally, according to data compiled by Bloomberg.

The Chairman, Senate Committee on Banking Committee, Rafiu Ibrahim, said last week the NASS had an “issue with the executive.”

In the absence of a MPC meeting, the CBN’s key rate remains at 14 per cent, where it’s been since July 2016, the CBN Governor, Godwin Emefiele said in a statement on Monday. That’s despite remarks by Emefiele in November that the committee may consider loosening policy early this year.

This is the first time in at least two years that a scheduled MPC meeting didn’t take place

Even more important, according to Standard Chartered’s Khan, is the approval of the 2018 budget, in which a third of the spending is earmarked for investment in infrastructure to help spur economic growth.

“The budget has a much more immediate impact on the economy than anything the newly formulated MPC could do,” she said.

The impasse over so-called constituency projects may determine when the budget is approved, according to Clement Nwankwo, executive director of the Abuja-based Policy and Legal Advocacy Centre.

The legislature had approved the projects and the executive refused to implement, Nwankwo said. “The view of the National Assembly members is that that aspect of the budget has been singled out for neglect,” he said.

The Senate has twice rejected Buhari’s nomination of Ibrahim Magu as chairman of the Economic and Financial Crimes Commission.

Buhari left Magu to continue running the agency in an acting capacity, angering lawmakers.

At the same time, the EFCC is trying to pursue a case of false declaration of assets against the Senate President Bukola Saraki.

Saraki’s trial and Magu’s confirmation are symptoms “of how the legislature has been fighting for its own independence and it feels that the executive and its agencies are undermining its authority,” the Head of Lagos-based BudgIT, a civic group that lobbies for government transparency, Oluseun Onigbinde, said.

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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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israel Gaza

Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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