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IMF/IMFC Warns Russia-Ukraine War Has Humanitarian Consequences

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IMF - Investors King

The new Chair of the International Monetary and Financial Committee (IMFC) issued a statement recognizing that Russia’s war against Ukraine has massive humanitarian consequences and detrimental repercussions for the global economy in Washington, DC on Thursday.

The IMFC called for a speedy resolution through diplomatic channels, including “political dialogue, negotiations, mediation and other peaceful means.”

“The statement shows that there has been a constructive and intense dialog at the IMFC as there is an agreement on all elements related to the important work of the institutions. All IMFC members welcome the Managing Director’s Global Policy Agenda. There was not only consensus on the work of the institution, but also on the critical policies that members will need to take, and I should add that there was a very close engagement and dialog amongst all countries on the substantive work of the institution and its policies. If there has been a time for multilateralism, it is now. And against this truly challenging background, we need the international community to come together, stand strong, and demonstrate our full commitment to cooperation,” said Nadia Calviño in a virtual press briefing co-chaired by IMF’s Managing Director Kristalina Georgieva held in Washington, DC.

A new IMF tool created to service members needing longer maturity for longer term transformation, in particular climate change and pandemics, received significant financial backing. Twelve countries stepped forward to support the Resilience and Sustainability Trust (RST). Now the RST has about $40 billion in commitments which can be credibly moved towards the implementation of the trust’s goals.

“We do face a war in Europe. It is creating all the impacts, including making it possible to have a communique with everybody signing in on it. But the overwhelming majority of the membership sees this crisis as proof that we have to cooperate, compare notes on policies, find ways in which we can act in solidarity and this is why I find it remarkable that we got nearly around $40 billion in commitments the first time we openly ask for support for Resilience and sustainability trust because it is walking this talk, it is a demonstration that we need each other,” said Georgieva.

Georgieva announced yesterday (Wednesday, April 20) in her press briefing on the Global Policy Agenda that the IMF has been engaged very closely with the Ukrainian Ministry of Finance on the estimates they have provided of what would be necessary to retain the functioning of the Ukrainian economy over the next three months. The Ukrainian financial authorities came up with the number of $5 billion a month.

“Five billion is the estimate of Ministry of Finance and more broadly the financial authorities of Ukraine for what is their monthly financial gap for the next couple of months. Our staff has worked on verifying, ascertaining, whether this amount broadly is the right, the right order of magnitude, and they confirm that indeed for the observable future, for the next couple of months, this is an amount that would be necessary to provide for Ukraine’s performing its functions in terms of paying salaries, pensions, paying for social services, for the displaced population and of course, the costs that are coming up on top of the normal payments related to the war,” said Georgieva.

The IMF provided Ukraine with $1.4 billion in emergency financing that is now in the Special Drawing Rights account of Ukraine. The IMF also is starting preliminary discussions for a full-fledged program for Ukraine once the conditions in the country allow it.

Calviño concluded her remarks by emphasizing the role of the IMF in reinforcing existing instruments for financial support to middle-income and vulnerable countries.

“I would like to emphasize that there was a unanimous call on the International Monetary Fund to press ahead and to reinforce existing instruments for financial support in particular to most vulnerable countries. Not only also middle-income countries are going to be accessing some of the newly created instruments. And there was also a unanimous commitment to reinforce the common framework to making it operational and to try to have a clear concrete calendar, clear deliverables, thanks to the strong engagement of some key players,” said Calviño.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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European Union to Donate €102.5m to Nigeria, Other African Countries

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European Union

An international organisation, European Union (EU) has disclosed that Nigeria and some other African countries will benefit from its €102.5m humanitarian aid.

The EU consists of 27 European countries with a common interest on issues pertaining to common economic, social and security.

Investors King reports that other countries marked to take part in the humanitarian aid of the European Union aside Nigeria are Chad, Niger and Cameroon amongst others.

The international organisation disclosed its decision during the third high-level conference on the Lake Chad Region held in Niamey on Monday and Tuesday.

According to the EU, the conference was organised to enhance regional, cross-border agreements and interactions to tackle the issues bedeviling the region.

It earmarked the assistance for the developing countries in order to provide food needs for its citizens especially those affected by conflicts or war.

This will in turn reduce the ravaging undernutrition problem in children under the age of five in the chosen African nations.

The Lake Chad region mapped out comprises the far west of Chad, northeast of Nigeria, Niger and Cameroon. It is popular for violent attacks, killings, displacement and other vices which have demoralised the region and retarded its development.

The European Union’s aid to underdeveloped countries will serve as its intervention for the social well-being of the nations hit by conflicts to reduce its awful impacts.

Investors King understands that the relationship between EU and Nigeria has been cordial through discussion platforms to address democracy, political issues, good governance, migration and security issues. Also, social-economic matters like trade, healthcare, water, sanitation, food security, climate change amongst others are jointly worked upon  as need arises.

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Failed Gas Deal: Trial Begins in UK Firm’s Suit Against Nigeria Over Unpaid $11 Billion

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President Muhammadu Buhari - Investors King

Trial into the protracted lawsuit between a British Virgin Islands-registered firm, Process & Industrial Development Ltd. (P&ID) and the Federal Republic of Nigeria over the failure of the latter to pay the firm the whooping sum of $11 billion will commence this week before a United Kingdom High Court.

Investors King gathered that the case emanated from a failed gas deal between the firm and the Nigerian government that dated 2010.

Available facts revealed that Nigeria had in 2010 entered into an agreement with the firm to provide free processed gas for P&ID within a period of 20 years in exchange for an oil refinery facility that P&ID would build for the country.

The firm is said to have bided for the gas supply in order to generate electricity with it and also sell it’s remaining to interested buyers.

P&ID had claimed it failed to build the planned refinery because the Nigerian government failed to tap its natural gas and deliver to it as allegedly agreed during their contract signing.

Explaining why the country defaulted in honouring the agreement, the incumbent Nigeria’s government had accused the P&ID of bribing previous administration officials to secure the gas contract and colluded with former government lawyers and officials to put up what it described as a “sham defense” when the matter became a subject of litigation.

Checks by Investors King revealed that the deal was made during the administration of former President Goodluck Jonathan of the Peoples Democratic Party (PDP) in 2010.

Its implementation was said to have got delayed till 2015 when Jonathan lost reelection to incumbent President Muhammadu Buhari of the All Progressives Congress (APC).

Following the change of power, the deal was stalled as the incumbent administration alleged that the deal came about through bribes to former government officials, and that the award should be revoked.

Buhari’s administration had directed the law enforcement agencies to investigate allegations of bribery surrounding the 2010 gas contract and insisted that bank records indicated that four government officials or their family members received bribes from P&ID before the contract was signed, and that one of them has admitted to overlooking “obvious deficiencies” in the company’s proposal.

Nigeria’s anti-graft agency has also charged the lawyer that represented the state during the arbitration for allegedly bribing public officials involved in the proceedings.

Not pleased with Nigerian government’s allegations, P&ID initiated arbitration in 2012 and claimed that attempts to resolve the issue privately had failed.

Meanwhile, in 2017, a closed-door arbitration court in the UK ordered Nigeria to pay $6.6 billion to the firm to compensate for lost profits over the failed facility project. The $6.6 billion awarded against Nigeria is said to have grown to over $11 billion with interest.

Ever since, P&ID, had been pressuring Nigeria to make the payment. In 2019, the stakes rose again when a UK judge issued an order enforcing the award.

P&ID had denied all allegations and described the Nigerian government’s claims of fraud as an attempt to dodge liability.

Meanwhile, as the case resumes this week in London, Nigerian government is expected to present its case and convince the court to quash the arbitration ruling.

UK high court judge, Ross Cranston had said in a 2020 ruling that there was a strong case to be made that for it to be convinced that the gas processing contract was procured by bribes paid to insiders as part of a larger scheme to defraud the country.

It was reported that Nigeria’s economy would suffer a deeper crisis if the country loses in London as P&ID has said it wold demand legal approval to confiscate Nigeria’s overseas assets, thus making it more expensive for Nigeria to raise money in international capital markets.

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NPower Moves to Settle Batch C2 Stipend Arrears

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Npower

The NPower management of the National Social Investment Management System (NASIMS) has indicated that the payment of the three months backlog of Batch C Stream 2 stipend is underway.

Investors King had reported earlier that the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development announced the disbursement of outstanding stipends for all the 7500 independent monitors under the National Social Intervention Programme (NSIP).

Meanwhile, the federal government commenced the payment of cash grants of N20,000 to aid vulnerable groups in the society on Tuesday, 17th of January 2023, which was inaugurated in Anambra state.

The inauguration event was presided over by the Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Faroug, who was represented by a deputy director in the Ministry, Mr. Charles Anaelo.

The N20,000 cash grants social investment programme is as well of the Ministry of Humanitarian Affairs, Disaster Management and Social Development and National Social Intervention Programme (NSIP) where NPower belongs.

This is a strong indication that after all the NPower portal issues have been rectified for the Batch C2 beneficiaries, their three months backlog will be cleared by the federal government.

Investors King recalls that the NPower management had enjoined the Batch C Stream 2 beneficiaries who were having issues with their accounts to lay their complaints through the right channel.

The beneficiaries were told that the NPower officials would place a call through to them, urging them to cooperate with them and follow the instructions given.  

They were asked to remain calm and always check their payroll tab on the Npower portal for their payment updates.

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