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Buhari Okays $1bn Equipment for Military

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  • Buhari Okays $1bn Equipment for Military

President Muhammadu Buhari has approved the purchase of equipment worth $1bn for the military.

The Minister of Defence, Mansur Dan-Ali, stated this in an interview with State House correspondents at the end of the meeting that Buhari had with security chiefs at the Presidential Villa, Abuja, on Wednesday.

“What I can add after all that I have said is to inform you that of recent, our leader, President Muhammadu Buhari, gave approval for the purchase of more equipment for the military, worth $1bn,” the minister said.

Although Dan-Ali did not disclose the source of the money, the National Economic Council, chaired by Vice-President Yemi Osinbajo, had in December 2017 approved the withdrawal of $1bn from the Excess Crude Account to fight insecurity.

The minister described the meeting with the President as a “normal meeting of security agencies in the country.”

He said issues concerning security situation in some states, including Taraba and Zamfara, were discussed.

On what to expect after the deployment of troops in Zamfara, Dan-Ali said, “We have operationalised a division in Sokoto. There will be a Brigade in Katsina and another Brigade in Zamfara that will take care of security situation in the areas.

“Of course, the strength of security personnel has increased, including the air force additional quick response group; they have added enough manpower in that area.”

He said efforts were being intensified to secure the release of Leah Sharibu, the Dapchi schoolgirl still being held by Boko Haram because she allegedly refused to renounce Christianity.

However, the weekly meeting of the Federal Executive Council did not hold on Wednesday.

As of the time of filing this report, no official reason was given for the cancellation of the meeting which usually holds every Wednesday at the Presidential Villa, Abuja.

Buhari presides over the FEC that has Vice-President Yemi Osinbajo; all ministers and some presidential aides as members.

BBOG, CD, CDHR, others knock Buhari

The #BringBackOurGirls movement on Wednesday deplored the approval of $1bn by the President, noting that the nation had not got any value for the huge amount spent so far on fighting insurgency in the North-East.

The BBOG spokesman, Sesugh Akume, described the fight against insurgency as “a money-making scheme,” wondering why the government needed to spend additional $1bn to fight the insurgents it claimed to have defeated.

He said, “The whole thing is a money-making scheme; our movement did an analysis of the money spent on fighting insurgency since 2011 and it has been within that range and we have not had value for the money we have spent.

“The government claimed to have defeated Boko Haram, so what are we spending $1bn on?”

Also, two civil society organisations, the Campaign for Democracy and the Committee for the Defence of Human Rights, said the approval of $1bn could extend the insurgency, calling on Nigerians to demand the monitoring of the fund.

The CD President, Usman Abdul, said, “This money from the Excess Crude Account is accrued for special purposes. This is one of the reasons why the Boko Haram insurgents cannot be defeated yet; because there are funds to cater to them. This is why the abduction of schoolgirls in Dapchi area of Yobe State took place in February.

“With this huge money, we are creating an avenue for the insurgents to wax stronger. We have to monitor how that money is spent. What we are witnessing is the negligence of the security agencies, more money is not needed.”

Also, the CDHR President, Malachy Ugwummadu, said, “While we agree that it is the responsibility of the Federal Government to use every means available to end the Boko Haram insurgency, allocation of funds must be constitutionally followed.

“The government must also ensure that the funds are judiciously used. One of the pitfalls of the former government of President Goodluck Jonathan was that allocation for weapons ended up in private hands. This must not go the same way.”

A security expert, Lt. Olusola Oremade (retd.) also criticised the approval, describing it as unreasonable.

“The approval of the $1bn to fight terrorism is unreasonable; it is a waste of money. No reasonable government would want to expend such money. We have those who knew the insurgents personally, why can’t they liaise with them to track down the insurgents?”

But a security analyst, Ben Okezie, believed that no amount was too much to spend on security.

“Security costs money and knowing that the value of our currency has plummeted, we don’t know whether the money would be enough.

“We have been fighting insurgency for over 10 years. Did you know many aircraft have gone down and how many armoured cars that have been destroyed and other artillery that need to be replaced? The welfare of the troops is also there, so it is justified to spend the money. Security costs money.”

Fayose says fund meant for re-election

The Ekiti State Governor, Ayodele Fayose, has queried the approval of $1bn for the procurement of security equipment.

The governor described the action as a “pooling of public funds for the ac of funding President Buhari’s re-election, as well as the coming governorship elections in Ekiti and Osun states.”

Fayose, who demanded to know if the $1bn was from the Excess Crude Account, said, “It will be illegal and against the principle of federalism that operates in Nigeria for the President, who is the head of just one of the federating units, to approve spending of fund belonging to the three tiers of government without the consent of heads of other federating units.”

Fayose spoke on Wednesday in a statement by his Special Assistant on Public Communications and New Media, Lere Olayinka.

He said, “When did the National Assembly approve the spending of the $1bn? Or can the President spend $1bn belonging to Nigerians without the approval of the National Assembly?”

Fayose queried the use of the money after the Federal Government said it had defeated Boko Haram.

He said, “The question the Federal Government must answer is; which insurgency are they buying arms worth N370bn to fight? Is it the same Boko Haram that they told Nigerians that they have completely defeated?

“Since they said they have defeated Boko Haram, and later told Nigerians that they have a ceasefire agreement with the insurgents, what else do they need $1bn (over N370bn) for, if not to fund the 2019 elections?

“Also, up till now, the government has yet to give satisfactory explanations as to the abduction and return of Dapchi schoolgirls.

“With the hurried approval of $1bn, is it not being reinforced that the Boko Haram insurgency has become a source of looting public fund by this government?

“It is on record that Transparency International once said in its report that some top military officials in the country were feeding fat from the war against Boko Haram by creating fake contracts and laundering the proceeds in the United States, United Kingdom and elsewhere.”

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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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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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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