Wednesday
We’re Inheriting Nigeria’s Worst Economy In History – Vice President, Osinbajo
The Vice President elect, Prof. Yemi Osinbajo, on Wednesday revealed that the incoming Muhammadu Buhari administration will be inheriting a gross debt of $60 billion both foreign and domestic, with a 2015 debt serving bill of N953.6 billion, representing 21 per cent of the 2015 budget from the Goodluck Jonathan administration.
Speaking at the opening of a two -day policy dialogue on the implementation of the agenda for change, in Abuja. His statement in parts: “We are concerned that our economy is currently in perhaps its worst moment in history. Local and international debt stands at $60 billion. Our debt servicing bill for 2015 is N953.6 billion, about 21 per cent of our Budget. On account of severely dwindled resources, over two-thirds of the states in Nigeria owe salaries. Federal institutions are not in much better shape. Today, the nation borrows to fund recurrent expenditure. “The figures of extreme poverty in our society- 110 million by current estimates- makes it clear that our biggest national problem is the extreme poverty of the majority. Thus, no analysis is required to conclude that dealing with poverty and its implications is a priority”
“In the course of the election campaign, we ran an issues-based campaign that identified certain areas of public policy as high priorities for propelling Nigeria forward. We addressed the challenges of the economy, insecurity, corruption and jobs creation. We spoke on the challenge of providing opportunities for self-actualization to millions of our young people who face an uncertain future with understandable anxiety” “Our goal this morning is to interrogate these positions and propositions before a wider audience and to launch a robust public conversation on policy directions and priorities that will help inform our administration’s approach in the next four years,” he added. Osinbajo said the forum exemplifies the sort of consultative and consensual approach to policy-making that the party and the new administration intend to model in.
Speaking at the opening of a two -day policy dialogue on the implementation of the agenda for change, in Abuja. His statement in parts: “We are concerned that our economy is currently in perhaps its worst moment in history. Local and international debt stands at $60 billion. Our debt servicing bill for 2015 is N953.6 billion, about 21 per cent of our Budget. On account of severely dwindled resources, over two-thirds of the states in Nigeria owe salaries. Federal institutions are not in much better shape. Today, the nation borrows to fund recurrent expenditure. “The figures of extreme poverty in our society- 110 million by current estimates- makes it clear that our biggest national problem is the extreme poverty of the majority. Thus, no analysis is required to conclude that dealing with poverty and its implications is a priority”
“In the course of the election campaign, we ran an issues-based campaign that identified certain areas of public policy as high priorities for propelling Nigeria forward. We addressed the challenges of the economy, insecurity, corruption and jobs creation. We spoke on the challenge of providing opportunities for self-actualization to millions of our young people who face an uncertain future with understandable anxiety” “Our goal this morning is to interrogate these positions and propositions before a wider audience and to launch a robust public conversation on policy directions and priorities that will help inform our administration’s approach in the next four years,” he added. Osinbajo said the forum exemplifies the sort of consultative and consensual approach to policy-making that the party and the new administration intend to model in.
Tuesday
MISSING OIL MONEY: Secret Investigation
According to the demand of Goodluck Jonathan, the Nigerian National Petroleum Corporation (NNPC) has made the full report on missing $20bn oil money investigation public.
The president said that his government has nothing to cover on the matter. Jonathan also rejected accusations credited to the All Progressives Congress (APC) that his officials were boarding on last minute looting. He reacted to the case via the statement by his Special Adviser on Media and Publicity, Reuben Abati.
The investigation titled “Auditor General for the Federation Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC” has 3 main aims:
1. Analysis of remittance shortfalls from NNPC into the Federation Accounts;
2. Analysis of submissions made by key stakeholders in relation to these alleged shortfalls;
3. Producing an independent Forensic report detailing findings.
The Pricewaterhouse Coopers Limited which has prepared the report notes that authors provide no opinion,attestation or other form of assurance with respect to work or the information upon which their work was based.The Office of the Auditor-General for the Federation(AuGF) engaged PricewaterhouseCoopers Limited(PwC) to investigate any and all crude oil revenues generated by the NigerianNational Petroleum Corporation(“NNPC”)that was withheld or unremitted to the Federation Accounts between 1 January 2012 and 31 July 2013.
At the beginning of the report experts describe timeline of the allegations.
The report follows the timeline of events beginning with a letter in September 2013 by the former Governor of the Central Bank of Nigeria Sanusi Lamido to the President of the Federal Republic of Nigeria Goodluck Jonathan statin that from January 2012 to July 2013, NNPC had lifted$65bn worth of crude on behalf of the FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn as outstanding to the FGN.
In the result of investigation, the experts revealed a lot of serious violations:
1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT$67 billion as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 bn and NOT $47bn as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
3. NNPC has provided information on the difference leading to a potential excess remittance of $0.74 billion(without considering expected remittances from NPDC). Other indirect costs of $2.81billion which were not part of the submission to the Senate Committee hearing have been defrayed to arrive at this position.
4.The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%) of proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies. The Corporation is unable to sustain monthly remittances to the Federation Account Allocation Committee (FAAC), and also meet its operational costs entirely from the proceeds of domestic crude oil revenues, and have had to incur third party liabilities to bridge the funding gap.
Furthermore, the review period recorded international crude oil prices averaging $122.5 per barrel (Average Platts prices for 2012). As at the time of concluding this report, international crude oil prices average about$46.07 per barrel, which is about sixty two percent (62%) reduction when compared to the crude oil prices for the review period. If the NNPC overhead costs and subsidies are maintained (assuming crude oil production volumes are maintained), the corporation may have to exhaust all the proceeds of domestic crude oil sales, and may still require third party liabilities to meet costs of operations and subsidies, and may not be able to make any remittances to FAAC.
The experts therefore recommend tha the NNPC model of operation must be urgently reviewed and restructured, as the current model which has been in operation since the creation of the Corporation can not be sustained.
The report reflects the fact that $3.38 billion was spent on DPK subsidy for the review period. It also confirmed using third party vessel tracking platforms that all vessels carrying NNPC cargoes arrived in Nigeria within the periods disclosed by PPPRA.
It is important to note that although PwC has reviewed documents submitted by the key stakeholders involved. Analysts stated that work was conducted independently, and findings are based on the review of documentation, analytically reviews of data, and interviews conducted.
Monday
Ambode extends hand of partnership to Agbaje, others
The Lagos State Governor-elect, Mr. Akinwunmi Ambode, has called on the Peoples Democratic Party governorship candidate, Mr. Jimi Agbaje, and others who contested against him to join hands with his administration to build the state.
Ambode spoke on Sunday while delivering his acceptance speech at the APC secretariat in Lagos shortly after he was declared winner of the governorship election.
Ambode was announced winner of the Saturday election after securing 811,994 votes against his PDP’s closest rival, Agbaje who scored 659,788 votes.
“To my main opponent, Mr. Jimi Agbaje of the PDP, I thank you for a keen contest and invite you, alongside other governorship candidates, to join hands with me in moving Lagos forward,” he said.
Ambode also promised Lagos residents that his administration would build on the legacy and achievements of his predecessors, Gov. Babatunde Fashola and Chief Bola Tinubu.
“I am humbled that you have placed your trust and faith in me.
“The love of this state and our common belief in what we can accomplish, our belief in what this state already is, and in what it is destined to become binds us together in a social and moral contract of high purpose.
“I shall honour that contract with every fiber of my being.
“This day I pledge to you that I shall devote myself to bringing even greater prosperity, growth and development to every inch of this state.
“I also pledge that I shall build on legacy and progress of my predecessors,” Ambode said.
The governor-elect promised to bring the best of Lagos into his government saying that the people would be proud and glad for choosing him as their governor.
“The people of Lagos have demonstrated that Lagos is not about ethnicity or religion but about a common desire to enthrone good governance.
“Lagos under my watch will not discriminate. It has not in the past, and will not in the present; not even in the future, there will be no political victimisation.
“By affirming your faith in the APC and in me, you have, for the first time in 16 years, married progressive governance at the national level with progressive government at the state level,” he said.
Ambode noted that finally, Lagos state government and the Federal government would be of one vision, one mind and one accord.
“The ramifications of this harmonious unity are completely positive.
“This is a chance that we have worked toward for many years.
“The joint infrastructural and employment projects and collaboration between the state and the federal will quicken the improvement of our roads, schools, power generation and the entire array of social services.
“This new era of cooperation between the state and federal government promises to be a golden period for Lagos and for all Lagosians to share equally therein,” he said.
Ambode said Lagos would enjoy optimal development and growth through APC governance working in tandem at the state and federal levels.
“This cooperation and enhanced policy harmony will surely pay handsome dividends,” he said.
Ambode congratulated INEC for a job well done and keeping alive Nigeria’s hope for a brighter democracy.
GREETINGS OF PEACE TO CITIZEN OF NIGERIA FROM TEAM NCA
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