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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 and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Economy

Nigeria to Raise VAT to 10% Amid Revenue Crisis, Says Fiscal Policy Chairman

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Value added tax - Investors King

Taiwo Oyedele, Chairman Presidential Fiscal Policy and Tax Reforms Committee, has said the committee working on increasing the Valued Added Tax (VAT) from the current 7.5% to 10%.

Oyedele announced this during an interview on Channels TV’s Politics Today.

According to Oyedele, the tax law the committee drafted would be submitted to the National Assembly for approval.

He also said his committee was working to consolidate multiple taxes in Nigeria to ensure tax reduction.

He said, “We have significant issues in our tax revenue. We have issues of revenue generally which means tax and non-tax. You can describe the whole fiscal system in a state that is in crisis.

“When my committee was set up, we had three broad mandates. The first one was to look at governance: our finances as a country, borrowing, coordination within the federal government and across sub-national.

“The second one was revenue transformation. The revenue profile of the country is abysmally low. If you dedicate our whole revenue to fixing roads it will be insufficient. The third is on government assets.

“The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We don’t know how soon they will be able to pass the law. Then subsequent increases are also indicated in terms of the year they will kick in.

“While we are doing that, we have a corresponding reduction in personal income tax. Anybody that is earning about N1.5 million a month or less, they will see their personal income tax come down. Companies will have income tax rate come down by 30% over the next two years to 25%. That is a significant reduction.

“Other taxes they pay are quite many: IT levy, education tax, etc. All these we are consolidating into a single one. They will pay 4% initially. That will go down to 2& in the next few years.”

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Economy

Nigerian Economy Surges 3.19% in Q2 2024, Service Sector Leads Growth

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Nigerian Breweries - Investors King

The Nigerian economy grew in the second quarter of 2024 by 3.19% year-on-year, according to data released by the National Bureau of Statistics (NBS) on Monday.

This is an improvement from the 2.98% growth recorded in the first quarter of 2024 and the 2.51% achieved during the same period in 2023.

The growth was driven predominantly by the service sector, which saw a 3.79% growth during the quarter and contributed 58.76% to Nigeria’s aggregate GDP.

The service sector, which includes industries such as telecommunications, banking, and hospitality, has become a significant driver of economic activity in Africa’s largest economy as it diversifies away from its traditional reliance on oil and agriculture.

In addition to the strength of the service sector, the industry sector also posted a positive performance, growing by 3.53% during the quarter.

This is a notable recovery from the -1.94% decline recorded in the same period in 2023.

The industry sector includes manufacturing, construction, and utilities, which have benefitted from increased investments and improvements in energy supply.

The agriculture sector, a longstanding pillar of the Nigerian economy, experienced a modest growth of 1.41%, slightly lower than the 1.50% recorded in the second quarter of 2023.

Despite the slower growth, agriculture remains vital to Nigeria’s economy, providing employment to millions of Nigerians and contributing to food security.

The overall 3.19% growth in GDP highlights the resilience of the Nigerian economy despite ongoing challenges such as inflation, currency depreciation, and insecurity.

Analysts had predicted a modest growth rate of around 3.16% for the second quarter, closely aligning with the actual performance.

The Financial Derivatives Company (FDC) also forecasted Nigeria’s annual average GDP growth to reach approximately 3.07% in 2024, which is consistent with the International Monetary Fund’s (IMF) revised projections.

The Q2 GDP performance supports these forecasts, providing cautious optimism for the remainder of the year.

While the growth of the Nigerian economy is a positive development, challenges remain. Inflation, particularly in food prices, continues to strain household incomes, and the naira’s depreciation has increased the cost of imports.

Also, infrastructure deficits and insecurity in various regions of the country pose obstacles to sustained economic expansion.

Despite these challenges, the continued growth in the service and industry sectors demonstrates Nigeria’s capacity to adapt and evolve in an increasingly diversified economy. If these sectors maintain their current trajectory, they could help mitigate some of the pressures facing the economy and improve living standards for Nigerians.

The government’s focus on economic reforms, including efforts to attract foreign investment, improve infrastructure, and enhance security, will be crucial in sustaining and building on the positive GDP growth in the coming quarters.

Economic diversification remains a key goal, and the strong performance of the service sector is a promising sign that Nigeria is moving in the right direction.

With cautious optimism, experts are hopeful that Nigeria can leverage its expanding sectors to achieve sustained economic growth and create more opportunities for its growing population.

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Economy

WTO’s Okonjo-Iweala Points to Declining Nigerian GDP Growth as Major Concern

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Ngozi Okonjo Iweala

Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO), has raised concerns about the country’s declining GDP growth.

Speaking at the annual General Conference of the Nigerian Bar Association (NBA) on Sunday, Okonjo-Iweala highlighted a troubling trend that has marked the Nigerian economy since 2014.

Addressing an audience of legal professionals, policymakers, and economists, Okonjo-Iweala painted a grim picture of Nigeria’s economic performance, noting that the nation’s GDP growth rate has significantly deteriorated over the past decade.

She observed that between 2000 and 2014, Nigeria enjoyed a relatively robust average GDP growth rate of 3.8%, which notably outpaced the population growth rate of 2.6% annually.

This period was characterized by substantial economic advancements and improvements in living standards for many Nigerians.

However, the post-2014 era has been marked by economic stagnation and decline. According to Okonjo-Iweala, Nigeria’s GDP growth rate has turned negative, recording a troubling average decline of 0.9%.

This reversal, she argues, reflects the government’s failure to sustain the positive economic momentum achieved by previous administrations.

“The contrast between the two decades is striking,” Okonjo-Iweala said. “While the early 2000s brought significant economic progress, the subsequent years have seen a marked decline in GDP growth, which has directly impacted the average Nigerian’s quality of life.”

The WTO Director General attributed this decline to a combination of factors, including inconsistent economic policies, lack of effective reform implementation, and broader macroeconomic challenges.

She said despite various reform attempts and temporary economic improvements, Nigeria has struggled to build on and consolidate these gains.

“The inability to sustain economic growth has had severe repercussions,” Okonjo-Iweala continued. “Many Nigerians are facing diminished job prospects and reduced well-being, as the benefits of earlier growth have not been maintained or built upon.”

In her address, Okonjo-Iweala urged for urgent and comprehensive economic reforms to address these challenges.

She called on Nigerian policymakers to focus on strategies that promote sustainable growth, enhance economic stability, and improve the overall quality of life for the populace.

The call for action comes at a time when Nigeria is grappling with various economic pressures, including inflation, currency depreciation, and unemployment.

Okonjo-Iweala’s remarks underscore the need for renewed efforts to stabilize the economy and implement policies that can drive long-term growth and development.

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