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House Summons Malami for Halting Repatriation of $60bn Loot

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National Assembly

The House of Representatives has again summoned the Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN) for allegedly halting the repatriation of $60 billion loot from Texas, United States of America.

The Chairman of the Ad hoc Committee on Assessment and Status of All Recovered Loots – Movable and Immovable Assets from 2002 to 2020 by Agencies of the federal government for Effective Efficient Management and Utilisation, Hon. Adejoro Adeogun, summoned Malami yesterday in Abuja when a former Special Prosecutor to the Special Presidential Investigation Panel (SPIP), Mr. Tosin Ojaomo, appeared before the committee.

He also revealed that before the panel, which was headed by Okoi Obono-Obla was disbanded, it investigated the Auditor-General of the Federation for the withdrawal of N10 billion from the account of NHIS in two tranches.

Ojaomo also revealed that the panel investigated a Director in a Ministry and recovered 86 luxury vehicles, adding that some of the vehicles are bulletproof cars worth the sum of N700 million.

He also pointed out that a certain account domiciled at Polaris Bank was uncovered by the panel where the sum of $223 million was kept under the guise of Nigerian National Petroleum Corporation (NNPC) operations account.

Ojaomo added that the account was not linked to the Treasury Single Account (TSA), but a standalone account of NNPC.

He said the panel invited the bank to explain what the money was meant for, adding that when the explanation of the bank was not satisfactory, it was ordered to remit the money to TSA, and the bank later pleaded that it should be allowed to pay N10 million every month.

The Special Prosecutor noted that after the Chairman of the Panel and some members were suspended in 2019, the AGF was directed to take over the cases being investigated by the panel.

He stated: “The projection of the panel based on what we were working with at that time, we had a projection of even making other foreign recoveries, because intelligence was given to the panel that the sum of $60 billion belonging to the Nigerian government is currently domiciled in Texas, United States of America, at that time, which the panel has started working on making recovery. The money was stolen from Nigeria through the NNPC. All this has been taken over by the AGF.”

In his ruling, the committee chairman said the allegations were weighty, saying there was a need to ask the AGF to cause an appearance.

Adeohun said, “These are weighty allegations; at this stage, we will have to stop you; not that we are trying to stop you from speaking, but because like we said in my place, you don’t shave a man behind him when he is not there. We think we will have to recall you at a different date and we will ask the Attorney General to make a reappearance here so that you can present this to him. You will avail us of all these documents so that we will formally write a letter to him.

“This is not just inviting him to come and speak now, you have made weighty allegations alleging that this money belonging to Nigeria could have been recovered but for some reasons he sat on them for whatever reasons. I don’t want to believe that that’s really what happened but that’s the allegation they have made.”

Earlier, the Managing Director of Nigeria Sovereign Investment Authority (NSIA), Mr. Uche Orji, while appearing before the committee revealed that the federal government through the Ministry of Justice entered into a trilateral agreement with the US, United Kingdom and the Republic of Ireland for the repatriation of looted funds.

He added that an agreement has been reached with the US government for the repatriation of $311 million, while an agreement had been reached with the UK government for repatriation of £4.2 million and €5.5 million from the Republic of Ireland.

Orji added, “We are aware that there is an agreement struck with the Ministry of Justice and counterpart countries. We’ve been notified that they have reached this agreement, that the funds will be sent to us, but we have not received it.”

Also, the Chairman of Independent Corrupt Practices and other related offences Commission (ICPC), Prof. Bolaji Owasanoye, said at the moment that the anti-graft agency had recovered N2.1 billion.

He said, “As of today, what is there is N2.1 billion. Over time, however, the cumulative of what we received is over N7 billion and N5 billion has gone back to the government. It has taken it over time.”

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Economy

Nigeria’s Growth Forecast Lowered to 3% for 2025, Higher than Most Emerging Markets

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IMF global - Investors King

The International Monetary Fund (IMF) has projected a 3% growth rate for Nigeria in 2025, slightly down from the 3.1% forecasted for 2024.

Despite this slight decline, Nigeria’s projected growth remains higher than that of many emerging markets as detailed in the IMF’s latest World Economic Outlook released on Tuesday.

In comparison, South Africa’s economy is expected to grow by 1.2% in 2025, up from 0.9% this year. Brazil’s growth is projected at 2.4% from 2.1% in 2024, and Mexico’s growth forecast stands at 1.6% for 2025, down from 2.2% in 2024.

However, India is anticipated to see a robust growth of 6.5% in 2025, although this is slightly lower than the 7% forecast for 2024.

The IMF’s projections come as Nigeria undertakes significant monetary reforms. The Central Bank of Nigeria has been working on clearing the foreign exchange backlog, and the federal government recently removed petrol subsidies.

These reforms aim to stabilize the economy, but the country continues to grapple with high inflation and increasing poverty levels, which pose challenges to sustained economic growth.

Sub-Saharan Africa as a whole is expected to see an improvement in growth, with projections of 4.1% in 2025, up from 3.7% in 2024. This regional outlook indicates a modest recovery as economies adjust to global economic conditions.

The IMF report underscores the need for cautious monetary policy. It recommends that central banks in emerging markets avoid easing their monetary stances too early to manage inflation risks and sustain economic growth.

In cases where inflation risks have materialized, central banks are advised to remain open to further tightening of monetary policy.

“Central banks should refrain from easing too early and should be prepared for further tightening if necessary,” the report stated. “Where inflation data encouragingly signal a durable return to price stability, monetary policy easing should proceed gradually to allow for necessary fiscal consolidation.”

The IMF also highlighted the importance of avoiding fiscal slippages, noting that fiscal policies may need to be significantly tighter than previously anticipated in some countries to ensure economic stability.

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Economy

Nigeria’s Inflation Rises to 34.19% in June Amid Rising Costs

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Food Inflation - Investors King

Nigeria’s headline inflation rate surged to 34.19% in June 2024, a significant increase from the 33.95% recorded in May.

This rise highlights the continuing pressures on the nation’s economy as the cost of living continues to climb.

On a year-on-year basis, the June 2024 inflation rate was 11.40 percentage points higher than the 22.79% recorded in June 2023.

This substantial increase shows the persistent challenges faced by consumers and businesses alike in coping with escalating prices.

The month-on-month inflation rate for June 2024 was 2.31%, slightly up from 2.14% in May 2024. This indicates that the pace at which prices are rising continues to accelerate, compounding the economic strain on households and enterprises.

A closer examination of the divisional contributions to the inflation index reveals that food and non-alcoholic beverages were the primary drivers, contributing 17.71% to the year-on-year increase.

Housing, water, electricity, gas, and other fuels followed, adding 5.72% to the inflationary pressures.

Other significant contributors included clothing and footwear (2.62%), transport (2.23%), and furnishings, household equipment, and maintenance (1.72%).

Sectors such as education, health, and miscellaneous goods and services also played notable roles, contributing 1.35%, 1.03%, and 0.57% respectively.

The rural and urban inflation rates also exhibited marked increases. Urban inflation reached 36.55% in June 2024, a rise of 12.23 percentage points from the 24.33% recorded in June 2023.

On a month-on-month basis, urban inflation was 2.46% in June, slightly higher than the 2.35% in May 2024. The twelve-month average for urban inflation stood at 32.08%, up 9.70 percentage points from June 2023’s 22.38%.

Rural inflation was similarly impacted, with a year-on-year rate of 32.09% in June 2024, an increase of 10.71 percentage points from June 2023’s 21.37%.

The month-on-month rural inflation rate rose to 2.17% in June, up from 1.94% in May 2024. The twelve-month average for rural inflation reached 28.15%, compared to 20.76% in June 2023.

The rising inflation rates pose significant challenges for the Central Bank of Nigeria (CBN) as it grapples with balancing monetary policy to rein in inflation while supporting economic growth.

The ongoing pressures from high food prices and energy costs necessitate urgent policy interventions to stabilize the economy and protect the purchasing power of Nigerians.

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Economy

Inflation to Climb Again in June, but at a Reduced Pace, Predicts Meristem

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Nigeria's Inflation Rate - Investors King

As Nigeria awaits the release of the National Bureau of Statistics’ report on June 2024 inflation, economic analysts project that while inflation will continue its upward trajectory, the pace of increase will moderate.

This comes after inflation rose to a 28-year high of 33.95% in May, up from 33.69% in April.

Meristem, a leading financial services company, has forecasted that June’s headline inflation will rise to 34.01%, a slight increase from May’s figure.

The firm attributes this persistent inflationary pressure to ongoing structural challenges in agriculture, high transportation costs, and the continuous depreciation of the naira.

Experts have highlighted several factors contributing to the inflationary trend. Insecurity in food-producing regions and high transportation costs have disrupted supply chains, while the depreciation of the naira has increased importation costs.

In May, food inflation grew at a slower pace, reaching 40.66%, but challenges in the agricultural sector, such as the infestation of tomato leaves, have led to higher prices for staples like tomatoes and yams.

Meristem predicts that food inflation will persist in June, driven by these lingering challenges. Increased demand during the Eid-el-Kabir celebration and rising importation costs are also expected to keep food prices elevated.

Core inflation, which excludes volatile items like food and energy, was at 27.04% in May. Meristem projects it to rise to 27.30% in June.

The firm notes that higher transportation costs and the depreciation of the naira will continue to push core inflation up.

However, they also anticipate a month-on-month moderation in the core index due to a relatively stable naira exchange rate during June, compared to a more significant depreciation in May.

Cowry Assets Management Limited has projected an even higher headline inflation figure of 34.25% for June, citing similar concerns.

The firm notes that over the past year, food prices in Nigeria have soared due to supply chain disruptions, currency depreciation, and climate change impacts on agriculture.

This has made basic staples increasingly unaffordable for many Nigerians, stretching household budgets.

As inflation continues to rise, analysts believe the Central Bank of Nigeria (CBN) will likely hike the benchmark lending rate again.

The CBN’s Monetary Policy Committee (MPC) has raised the Monetary Policy Rate (MPR) by 650 basis points this year, bringing it to 26.25% as of May 2024.

At a recent BusinessDay CEO Forum, CBN Governor Dr. Olayemi Cardoso emphasized the MPC’s commitment to tackling inflation, stating that while the country needs growth, controlling inflation is paramount.

“The MPC is not oblivious to the fact that the country does need growth. If these hikes hadn’t been done at the time, the naira would have almost tipped over, so it helped to stabilize the naira. Interest rates are not set by the CBN governor but by the MPC committee composed of independent-minded people. These are people not given to emotion but to data. The MPC clarified that the major issue is taming inflation, and they would do what is necessary to tame it,” Cardoso said.

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