Saturday, 21 December 2013

Shock as Boko Haram terrorists sack barrack; massacre troops, families

Hundreds of suspected Boko Haram terrorists launched a fierce attack Friday on Bama, Borno state, sacking the military barrack there, and killing troops and their families in what a senior military official called another “sad day” for a town that has witnessed multiple bloodshed this year.
Security officials and witnesses told PREMIUM TIMES Friday noon that the attackers came in their numbers in the morning and killed “everything in sight.”
The military confirmed the attack in a statement released later Friday.
Major-General Chris Olukolade, the Director, Defence Information, said Bama barracks was attacked by terrorists who came from cells located across Nigerian Border with Cameroun through Banki town.
“High caliber weapons such as anti-aircraft and rocket propelled guns were freely used in the attack that lasted several hours,” he said.
He said ground troops backed by the Air Force repelled the attack and were in pursuit of the insurgents. He did not give the number of casualties.
“Details of casualties recorded in the incident will be released when the ongoing cordon and search operations in the general area is concluded,” he said.
But officials and witnesses told PREMIUM TIMES the attack was massive and sweeping, with the attackers descending on women and children. The rampage lasted hours, they said.
Bama has witnessed some of the fiercest attacks this year as insurgents have struck multiple times ,killing many.
Dozens of people died in repeated attacks in the town, which lies about 65km from the state capital Maiduguri. The latest attack occurred in August, forcing several residents to flee to neighbouring communities.
In November 2013, residents said normalcy had returned to the area with the increased presence of security forces.

PremiumTimes

Ex-CJN Writes Jonathan, Accuses President Of Unjustly Treating Justice Salami


By Ini Ekott
A letter from a former Chief Justice shows how President Jonathan turned down advice from the National Judicial Council on the Salami case.
President Goodluck Jonathan brushed aside recommendations from the National Judicial Council and the Chief Justice of Nigeria to sack former Appeal Court president, Ayo Salami, ignoring firm arguments by the two authorities that Mr. Salami was innocent of allegations against him.
The two authorities are mandated by law to advise the president on such judiciary matters.
The government accused Mr. Salami of professional misconduct, but he is widely believed to have been punished for political reasons.
A letter to the president by former Chief Justice of the Federation, CJN, Dahiru Musdapher, obtained by PREMIUM TIMES, shows how the top echelon of the nation’s judiciary laboured to have President Jonathan realize Mr. Salami’s innocence in his dispute with Mr. Musdapher’s predecessor, Aloysius Katsina-Alu; and how they advised that punishing Mr. Salami would terribly dent an already integrity-deficient judiciary.
In the four-page letter, dated January 27, 2012,  Mr. Musdapher informed the president how a committee he named to review Mr. Salami’s suspension in 2011 absolved him, and made it extensively clear why ensuring justice on the case- by reinstating Mr. Salami- was crucial for a judiciary bereft of public confidence.
“Your Excellency, this report is not only before the National Judicial Council, it is also at the court of public opinion,” Mr. Musdapher said of the findings of the review committee. “And Mr. President will agree with me that this recommendation no doubt should challenge our commitment to the redemption of the image and credibility of the judiciary.”
Mr. Musdapher told the president that the committee, led by another former Chief Justice of Nigeria, Mohammed Uwais, found Mr. Salami not guilty of any of the misconduct he was accused of, and recommended his immediate reinstatement.
“There was no evidence before any of the National Judicial Council panels or in any of the petitions to justify any findings that Salami PCA contravened the code of conduct for judicial officers by talking to the mass media,” he said in his etter to the president. “…On the whole, there was no evidence to show any form of misconduct on the part of Salami PCA to justify any sanction or punishment.”
The committee, Mr. Musdapher informed Mr. Jonathan, also recommended that “…in order to maintain the integrity of the judiciary and to assuage public feeling and restore confidence in both the bar and bench, this committee strongly advises the Chief Justice of Nigeria and National Judicial Council to reconsider its earlier decision on the suspension of Justice Salami PCA and reinstate him back to his position as soon as possible and in that way assure the public that the suspension of Justice Salami as the President of the Court of Appeal is not ill motivated.”
The former Chief Justice’s letter to the president came ahead of an official recommendation by the National Judicial Council, that Mr. Salami be recalled.
Both calls were rejected by the president.
Mr. Jonathan’s firm refusal to reinstate the judge, who finally retired October 2013, spurred widespread allegations that the president’s decision was politically-motivated beyond the professional breach the government claimed as its reason for suspending him. Mr. Musdapher’s letter appears to back that claim.
Justice Salami’s suspension in 2011 was linked partially to his refusal to be elevated to the Supreme Court. More specifically, he was punished for speaking to the media and accusing Mr. Katsina-Alu, who was CJN at the time, of attempting to interfere in the Sokoto state’s governorship election case that was before the Appeal court.
He was suspended by the NJC for refusing to apologize to Mr. Katsina-Alu.
Mr. Salami’s case became a sore point for political outfoxing between the governing Peoples Democratic Party, PDP, and the defunct opposition Action Congress of Nigeria, ACN (now All Peoples Congress, APC).
The PDP accused the former judge of working for the ACN, hobnobbing with its leaders and dispensing judgments deliberately skewed in favour of the party. Mr. Salami had presided over the Court of Appeal’s upturning of governorship elections in Osun, Ekiti and Edo States, decisions he based on evidences showing that the sacked PDP governors in those states were beneficiaries of rigged elections.
The PDP said there was evidence of telephone calls between leaders of the ACN, and the judge.
While the ACN, now APC, spoke in defence of Mr. Salami, the ruling PDP, President Jonathan’s party, backed Mr. Katsina-Alu with a spokesperson for the party, Olisa Metuh, recently accusing Mr. Salami of lying against the former CJN.
Reflective of the political tinge of the controversy, Mr. Salami was suspended August 18, 2011, just as the Court of Appeal was hearing a suit brought by the presidential candidate of the defunct Congress for Progressive Change, CPC, Muhammadu Buhari, against President Jonathan’s election.
Mr. Salami’s suspension was approved by the president even while the matter had gone before a court.
After Mr. Katsina-Alu left office, his successor, Mr. Musdapher ordered a review of the case. The Uwais panel found Mr. Salami not guilty, and rather, it criticized Mr. Katsina-Alu in his capacity as CJN then.
Mr. Musdapher’s letter provides an insight into how President Jonathan turned down recommendations for Mr. Salami’s recall, rebuffing detailed presentation from the Chief Justice, and the NJC. The NJC is mandated by the constitution to advise the president on such matters.
In his letter, Mr. Musdapher warned that the judiciary was already suffering a damning public opinion deficit nurtured by perceived impunity and corruption, and that the Salami case, if not well addressed, could only exacerbate that perception.
“And Your Excellency would agree that it is judicial schisms of this nature, and not necessarily the paucity of administrative or judicial infrastructure, that overstretch the ethical and moral fiber of our judiciary, robbing it inevitably of the confidence of the public.”
On May 10, 2012, five months after the letter was delivered to the president, the NJC officially voted 10 to 8, in favour of recalling Mr. Salami eight months after he was suspended.
At the time, judiciary officials who spoke to PREMIUM TIMES said the plan was for the former Appeal Court president to be reinstated and made to serve three months before retirement as his case had severely polarised the ranks of the judiciary.
Weeks later, the Attorney General and Minister of Justice, Mohammed Adoke, said Mr. Jonathan would not act since the matter was already in court, again raising eyebrow since the same government approved Mr. Salami’s suspension even while a court was considering the case. Mr. Musdapher noted that point in his letter.
“Firstly, the National Judicial Council, NJC, took action on the matter when it was subjudice,” he said. “Normally we do not take decisions on matters before us which are pending before the court.”
Throughout the episode, opposition leaders accused the president of being pressured by PDP officials not to heed the recommendation of the NJC.
That concern grew after an Abuja-based lawyer, Amobi Nzelu representing one Wilfred Okoli, rushed to the Federal High Court in Abuja, shortly after the NJC’s recommendation, asking the court to restrain the president from accepting them, because the “recommendations were not binding”.
Mr. Nzelu, who became known after handling the infamous Apo six killings of 2006, said while the NJC had powers to recommend the removal of the President of the Court of Appeal, it lacked power to recommend his reinstatement.
Curiously, officials of the federal government circulated his court papers to the media.

Saharareporters

Nobody Owns Nigeria By Ajibola Bakare


Going down memory lane, Nigeria since the inception of the Goodluck Jonathan Presidency, has never been as dramatic as this past few weeks save the fuel subsidy protest of early January of 2012. Just as we were almost getting used to strange, outrageous, and life threatening new year gifts from the Presidency, this year was a bit different and we hope January of 2014 wouldn't be different. Nigerians are expectant of more goodies than baddies.
Fellow Nigerians, the last trimester of this year has been months of different accusations and counter accusations, with the presidency at the centre stage. I will not linger much on the politics of the PDP, nPDP and the APC. It only shows that we should begin to look for alternatives to these peer groups. They have failed Nigeria and Nigerians. But one germane point is that this is the first time since Democracy in Nigeria that 5 state governors on the platform of the ruling party will defect to an opposition party: 5 governors. It is simply unprecedented and embarrassing.
Just as 2013 is beginning to close ranks, it is still one year that Nigerians and Africans won't forget in a hurry. It is a year when we've had times to rejoice and celebrate as well as a year when we've had several horrifying, horrible, sad and embarrassing moments. Worthy of celebration among the series of events that marked 2013 are the Africa Cup of Nations victory for the Super eagles and the U17 World Cup Victory for the Golden Eaglets to mention but a few. I'm not sure if qualifying for the 2014 World Cup in Brazil perfectly fits in this category but Kudos must however be given to those guys for a job well done.
We are likely not to forget in a hurry the tragedy that befell us as a nation when an associated airline carrying the corpse of an elder statesman crashed, leading to the untimely death of several promising Nigerians, including Mr. Deji Falae, one of the few young Nigerians in politics who up until his untimely death was a former commissioner in Ondo state. It was indeed a black day for us as Nigerians. Needless to say that we've had more killings in the north in 2013 than any other year courtesy of those who promised to make Nigeria ungovernable.
We were still mourning and in turmoil when suddenly the news broke out that the supervising ministry in charge of our aviation sector took delivery of two bullet proof cars estimated at over 255Million Naira. I'm aware it has been extensively analysed all over the conventional media as well as new media, so I need not dwell much on it. More so, I wouldn't want to make dead cases live again. I salute Nigerians a lot. We have a way of making corruption news trend for just a couple of weeks after which we keep silent on them. The fuel subsidy case, the Lawangate, Otehgate, just to mention a few are perfectly examples. Oduagate just made the list(sic). Some African nations didn't have this much gate before taking to the streets. Worthy of note is the fact that Governor Raji Fashola of Lagos state also took delivery of his 600million Naira bulletproof cars. He as a working governor deserves it more than a mere minister. Doesn't he?
One must appreciate the uprightness and sensitivity of Rt. Hon. Aminu Tambuwal, who made our president vulnerable to several insults in the last few weeks. He made a public mess of the purported zoning arrangement when he declared that zoning will only make us lose out on the best man for the job. He said zoning will lead to mediocrity which is an enemy to our democracy in Nigeria. Since no one dared to ask him whether Democracy has ever been practiced in Nigeria, why should I? Just when we were beginning to see the presidential material in him, he dropped another bombshell directed at the number one himself. He said "The president is encouraging corruption with his body language". Who isn’t?
About 50million dollars is still missing from Nigeria's treasury. Any Good Samaritan who comes across such should please return it to the CBN, NNPC, Ministry of Finance or the Presidency. An attractive reward awaits such person. We are not privy to how the money disappeared, but the CBN governor said the money wasn't remitted to the NNPC account. NNPC said it was. It doesn't matter whether it was or not, the responsibility is ours to help look for the money. It is a shame on us as a nation that two federal government controlled parastatals are at loggerheads over money belonging to Nigerians. Sincerely, President Goodluck Jonathan should just wake up if he's indeed sleeping. If Nigeria is a bit too complex for him to govern, he should simply do the needful. Leaders in other climes resign over the slightest allegation, but in Nigeria, leaders hold on tight to their portfolios even when the allegation is gruesome, barbaric and criminal. Their sycophantic aides will keep massaging their egoistic backs, telling them what they want to hear against what Nigerians are saying. I hope I didn't sound too harsh.
I'm not sure how to address him. Would Chief, Dr, Hon, Rt Hon, Professor, or just "Mr" be most appropriate to address that man who lived and died for the emancipation of his countrymen. The man who fought until death to ensure that apartheid doesn't thrive in his country. The man who fought for a better deal for his countrymen. He's Africa's most prominent man even in death, Nelson Mandela. Despite his legacies and giant strides, he refused a second term in office, unlike those who did next to nothing but still wanted a third term. Just as world leaders were paying their last respect to this noble man who lived a life worthy of emulation, somebody somewhere was busy writing a letter he should've written to himself while he was president(sic). A letter he wouldn't tolerate while he held sway as president.
Bloggers, writers, and other eminent Nigerians have done a critical analysis of the letter for and against the writer. While some were of the opinion that the letter came at the right time and aptly described the situation of things in Nigeria, some expressed their disappointment that the writer rightly captured his days and times as president in the letter and went further to describe the incumbent president as a son who is thriving to surpass the achievements of his father. But they reminded the son that no matter how much of new dresses he possess, he can't possibly have more rags than his father, the Ex-president.
Disappointingly, one of his sycophantic aides described President Jonathan as a man who can be likened to Late Nelson Mandela because the former had a 9 hours meeting with the leadership of Academic staff Union of Universities, ASUU. Again, no one bothered to remind him that Mandela never met with university teachers to have such discussions. Only universities in Nigeria proceed on industrial actions. However, kudos must be given to the presidency for ensuring that the strike didn't go beyond 6 months.
Conclusively, commuters and travelers can now heave a sigh of relief as work is obviously in progress on the Lagos-Ibadan expressway. Many Nigerians including myself have thought that President Goodluck Jonathan will overlook the very important road the way Ex President Olusegun Obasanjo did, but alas, we have a non-Yoruba president fixing the road linking about three Yoruba states that a Yoruba President couldn't fix. We really don't know who should be writing a letter, but we know who shouldn't.
Nobody owns Nigeria!
I wish Nigerians Merry Christmas and a corruption free 2014 in advance.
Ajibola Bakare
A Trained Biochemist, Political Academy (POLA) alumni, and a Young Nigerian who is determined to contribute his quota to a New Nigeria. He tweets as @hardgeeballer and wrote in via ajibola_bakare@ymail.com

The views expressed in this article are the author’s own and do not necessarily reflect the editorial policy of SaharaReporters

Tukur Repents, Begs PDP Govs Over Impending Sack


Alhaji-Dr-Bamanga-Tukur-927096993

The Peoples Democratic Party (PDP) national Chairman, Alhaji Bamanga Tukur is regretting the role he played over the factionalization of the party. He made his known today in a remorseful statement released by his Special Assistant on Media.
Mr. Tukur pleaded with all the aggrieved governors, members of the National Assembly and other stakeholders and members to learn to forgive him irrespective of the gravity of his offence or provocation.
The PDP chairman said “To our Governors of PDP extraction, I extend my right hand of fellowship, cooperation, peace and love to you all in the interest of our great Party. I further entreat Nigerians to eschew bitterness, rancor and acrimony in their social, political and economic dealing with fellow Nigerians.
“As one of the living fathers of this great country, I believe as elders our duty to our children and younger generation is to use our wisdom to show them the right path to selfless service to the nation and commitment to the enthronement of peace, love and unity. For our nation and our leaders can only succeed and thrive in an atmosphere of peace and love.”
In a statement by his Special Assistant, Media, Prince Oliver Okpala, Tukur urged party members to in the spirit of Christmas, embrace peace and love for one another.
The statement further reads: “as the Christmas draw nearer signifying the birth of Christ according to the Catholic Calendar and doctrine, I wish to once more as a father and elder statesman of our dear country offer my good counsel, wisdom and advice for national unity, peace, love and coexistence.
“While wishing Nigerians mostly Christians the best of the Christmas festivities and prosperous new year may I, utilize this opportunity to stress the urgent need for Nigerians to use this period to seek the face and intervention of God in institutionalizing brotherly care and peace both in our polity and dear country Nigeria.
“I call on all Nigerians irrespective of tribe, religion or ethnic affiliation to henceforth see their fellow Nigerians as their brothers and sisters belonging to one corporate entity known as Nigeria.
“I further entreat Nigerians to eschew bitterness, rancor and acrimony in their social, political and economic dealing with fellow Nigerians.
“As one of the living fathers of this great country, I believe as elders our duty to our children and younger generation is to use our wisdom to show them the right path to selfless service to the nation and commitment to the enthronement of peace, love and unity. For our nation and our leaders can only succeed and thrive in an atmosphere of peace and love.
“I urge our leaders and Nigerians at large to emulate the shining leadership qualities of tolerance, forgiveness and accommodation of late South African President, Dr. Nelson Mandela who as President brought peace and harmony to South Africans irrespective of tribe, religion, colour or race.
“Let us place service to the nation first before personal or parochial interest. Let our desire be to make Nigeria greater than we met it and let our guiding principle and goal be for the unity of Nigeria as a peaceful corporate entity.
“Let us learn to forgive one another no matter the gravity of the offence or provocation. It should be noted that my cardinal 3Rs immediately I took over the mantle of leadership of PDP as the National Chairman centered principally on Reconciliation, Reformation and Rebuilding, all based on Equity and Justice.
“To our Governors of PDP extraction, I extend my right hand of fellowship, cooperation, peace and love to you all in the interest of our great Party and the government at the centre competently captained by our beloved President, Dr. Goodluck Ebele Jonathan whose reformation agenda has given hope succor and salvation to Nigerians.
“Our Governors, I salute your courage and doggedness in the provision of abundant democratic dividends to your people in your different states in line with the PDP Constitution and Manifesto.
“You are our eyes and trusted allies who carry to the grassroot level our party commitment towards alleviating the sufferings of our people and making Nigerian an egalitarian society.
“To you all, our Distinguished Senators, Members of the House of Representatives and States Assemblies, I thank you and also extend my hand of fellowship to you while leaving my doors wide open for exchange of ideas, consultations and political activities aimed at taking our beloved party to greater heights.
“As an elder statesman, I also appreciate some of those Governors who are not of PDP extraction but are working closely with the President and PDP Governors to ensure the unity and progress of our dear nation, Nigeria.
“Once more I wave the white handkerchief to you all signifying peace, love and unity to all Nigerians and our dear country and also pray God in his wisdom and infinite mercy to help protect our dear country Nigeria and her citizens. Happy Christmas and a Prosperous New Year in advance.

Paradigm

PDP is dead and waiting to be buried – Governor Lamido

Atiku_LamidoIt appears that members of the Peoples Democratic Party, PDP, have lost faith in the party, following the turbulent time the party has faced in recent times.
One of the pioneers of the ruling party and Jigawa State Governor, Sule Lamido has stated that the PDP is dead and was waiting to be buried.
Lamido, one of the founding fathers of the PDP , was one of the Group of Seven (G7) aggrieved governors who challenged the leadership of Alhaji Bamanga Tukur and joined the Kawu Baraje-led New PDP.
Five of the governors include; Rotimi Amaechi (Rivers), Aliyu Wamakko (Sokoto), Murtala Nyako (Adamawa), Rabiu Kwankwaso (Kano) and Abdultfatah Ahmed (Kwara) – have defected to the All Progressives Congress (APC).
Lamido said he would not leave PDP because doing so would be likened to someone abandoning the house he toiled to build.
But yesterday, Lamido reviewed the latest development in the crisi-ridden party, especially with the defection on Wednesday of 37 House of Representatives members to the APC and declared the PDP dead.
“We are today witnessing the de-construction of what appears to be the final collapse of our dear party, the PDP, under the inept and imbecile National Working Committee (NWC) led by Bamanga Tukur,” he said, adding: “I am short of words to express my pain. It is agonising to see the party built in every home, in every village, town and cities all over Nigeria with lots of sacrifice being destroyed.”
Urging President Goodluck to take action, Lamido said: “Is it too late for the ‘leader’ of the party to intervene and save our party?”
He, however, warned that “Nigeria’s democracy must not be truncated”.

DailyPost

STATE OF THE ECONOMY

These are the 50 questions that the House of Representatives Finance Committee want Ngozi to answer.......I think he should......indeed, constitutionally she must.......


You will recall that the Committee on Finance had invited you to appear and make a comprehensive presentation on the state of the economy.

This invitation has become imperative because the Committee has come to the conclusion that what senior officers from the executive discuss with us in private regarding the sad situation of our economy and the so called dwindling revenue base is not in tandem with positions they hold in the public arena.

More so, what you consistently try to make the Country believe as the true situation of our economy is at sharp variance with the reality on ground.
In light of the above, and after careful deliberation, the Committee has itemized key issues that will require answers and clarifications from you.

Below are the 50 questions kindly provide written answers and clarifications and submit to the Committee within two weeks:

Questions for the HMF/CME on the State of the Economy

1. What should you consider as the major economic achievements of this government in the 2013 fiscal year and why? In your explanation, we will need facts and figures in demonstrating such achievements.

2. You have been credited with many announcements regarding Nigeria's economy as one of the fastest growing economies in Africa. If the economy is one of the fast growing economies, what is exactly growing the economy? What role does government play in the said economic growth, especially given that as high as 80 percent of the country's total annual budget spending still goes into recurrent expenditure?

3. Since your arrival as minister of finance in 2011, you have publicly announced the need to reduce the recurrent expenditure so that more money would be made available to capital spending which is critical to growing and diversifying the country's economy. How far has government succeeded in making these necessary cuts; and where exactly have these cuts been made in this effort to reduce recurrent expenditure? In other words, based on real amount spent on capital expenditure, how much reduction was made in 2011 against 2010, in 2012 against 2011 and in 2013 against 2012?

4. You are known to be celebrating a single-digit GDP growth. But speaking recently at a breakfast dialogue with some members of the organized private sector in Lagos, organized by the Nigerian Economic Summit Group (NESG), you were quoted as saying: “We are growing, but not creating enough jobs. That is a very big challenge…We need to grow faster. I think it needs to grow at least 9 to 10 percent to drive job growth the way we want.” Don't you agree that a good finance minister managing an economy like ours should be celebrating a GDP growth as high as 20 percent annually? Why is it that our economy cannot grow beyond a single digit? How many jobs are being created as a result of these said growths? In which sectors of the economy are these jobs created? If in private sector, what contributions is government making to further assist these private sector firms?

5. In the presence of Nigeria’s huge infrastructure deficit, why is it that the country's debt-to-GDP at about 19 percent in 2012 remains one of the lowest in the world when compared to nations already with world-class infrastructure and industrial economies such as America’s 105 percent, Brazil’s 65.49 percent, India’s 67.60 percent, and South Africa’s 40.9 percent?

6. Since facts don't lie, have you any disagreements with the September 4, 2013 Global Competitiveness Report of the World Economic Forum for 2013-2014, which ranked Nigeria 120th out of 148 countries ranked in the Global Competitiveness Index, including being ranked far behind some African countries such as Mauritius 45th, South Africa 53rd, and Kenya 96th?

7. ''For the first time in Nigeria’s 53rd year history, we have successfully privatized the electric power industry,’’ so said the President at a recent meeting in London with some foreign investors. As minister of finance should you agree that the recent privatization of the country's power infrastructure is worth celebrating as a major economic achievement in 2013, when in reality there is little or nothing to show as an improvement in the country power supply? Also why our rush to wholesale privatization of the power sector when countries like South Africa, generating as high as 42,000MW still have their power sector mostly in public hands?

8. What was your reaction to the November 12, 2013 statement credited to the World Bank Country Director for Nigeria, Marie-Francoise Marie-Nelly, who said that over 100 million Nigerians are today living in absolute destitution, representing an unheard-of 8.33 percent of the world’s total number of people living in destitution?

9. Nigerians are increasingly perplexed that these days nothing happens without government borrowing. And for most Nigerians, it is frightening how those managing the economy are just dragging us into excessively unproductive debts. More worrisome is the fact that every effort is being made to hide the details of the country's debt stock from Nigerians. Where are the facts that the country's current high rate of borrowing is productive, let alone have the ability to be repaid without having to resort to more borrowings?

10. Is prudence in our borrowing simply reduction in borrowing or simply constructive borrowing with government putting necessary measures in place to ensure that domestic debt profile is properly supervised and utilized by curbing corruption?

11. From Debt Management Office (DMO) 2012 Annual Report, the total public debt outstanding between 2008 and 2012 for external stock rose from $3.72bn to $6.53bn, while domestic stock rose from $17.68bn to $41.97bn. The total debt service the same period saw the percentage of external debt service drastically reduced from 11.46 per cent to 5.96 per cent while the percentage of domestic debt servicing grew from 88.54 per cent in 2008 to 94.04 per cent in 2012, drastically increasing the cost of the total debt service since the cost of domestic borrowing is atrociously higher than the cost of external borrowing. How could your debt sustainability analysis rationalize this without seeing some narrow interests being the overriding reason? Could this be the explanation why commercial banks in the country are declaring unheard-of three digit profits and the high Foreign Portfolio Investment and low Foreign Direct Investment?

12. It's an established fact that the willingness and ability to borrow do not automatically translate into economic growth. If you agree with this fact, how productive are the country's recent borrowings?

13. Why should our internal debts continue to represent more than two-thirds of Nigeria's external debt profile, when the cost of servicing domestic debts is ridiculously far more expensive than servicing external debts? Why should government continue to borrow internally when in so doing results in insufficient funds, skyrockets the cost of borrowing and above all, crowds out the real sector from the money market? Shouldn't the high cost of domestic borrowing override whatever are the assumed benefits? Since both London Interbank Offer Rates (LIBOR) and the US Treasury Bonds rates offer far better interest rates for sovereign borrowings, why have we continued not to take advantage of cheaper interest rates?

14. Your references to the country's economic growth profile have always been based on Fitch, Standard and Poor's, and Moody’s ratings. Are you aware that these same rating agencies are being sued in New York (with case # 652410/2013) by two Bear Stearns hedge funds for fraudulently assigning inflated ratings to securities in the run-up to the 2008 financial crisis? If you do, why do you insist on accepting the rating as reliable.

15. How much exactly has been the amount of money lost in government revenue as a result of import duty waivers in 2011, 2012 and 2013? Provide the names and beneficiaries and justification for same. In your opinion as the minister of finance who oversees the economy, what are the implications to the country's economy? What efforts have you have made to stop this waiver policy, which is distorting the economy? Our non oil income has dropped in 2013. A case where increased tariffs on various items effectively reduced importation to zero in some sectors. However, those items now find their way into Nigeria through our borders. Does it make any sense to increase these tariffs when we have such porous borders? As an example, officially, Benin Republic imported more rice this year than Nigeria.

16. It was reported that the FIRS is to engage foreign consultants for tax collection in 2014. Could the Minister clarify this position and what Nigeria stands to gain? Have the FIRS not been working effectively?

17. Do you really believe that Nigeria needs a 'Sovereign Wealth Fund' at this critical juncture of budgetary deficits, and having to be borrowing extensively in an effort to address government revenue gaps? Shouldn't the presence of Nigerian Sovereign Investment Authority (NSIA) simply mean spreading government's scarce resources thinly? Why will you insist that no matter what we still need to operate a sovereign wealth fund? Sincerely speaking, how sustainable are the objectives of Nigeria's Sovereign Wealth Fund, particularly in the long-term?

18. You should agree that a lot of Nigerians are interested in the link between NSIA and the government. Since there is no doubt that Nigerian Sovereign Investment Authority is an agent of government — or is it not? The question is: How should we think about the management structure in so far as major decisions are concerned? Where is the line between NSIA, as a commercially minded entity, and the government, especially given government's policy of having no business doing business? If, for example, government does not get involved in specific investments, then, who appoints the external managers involved in managing some parts of the NSIA funds?

19. Who determines the investment objective and who establishes the risk parameter for the NSIA's portfolio? In providing answer to this question, it is also important to understand and explain why NSIA recently hired a Swiss national as its chief portfolio investor? Answering this question is important since it should help us to know who determines the maximum draw-down that the government would be comfortable with in extremely negative market environments.

20. What should be your explanations for awarding MasterCard a multimillion dollar National Identity Smart Cards, when there are indigenous ICT companies that not only have what it takes but would have done it cheaper and create local jobs at the same time?

21. Have you taken into considerations how foreign company could use such information available to it to invade the privacy of Nigerians?

22. What are reasons for SURE-P to give preference to Chevrolet cars for SURE-P taxis, when it is known that not only are such cars very expensive to maintain compared with Asian and European cars, but also are also not fuel efficient and not durable on our roads?

23. Honorable Minister of Finance, you will agree that SURE-P is very important to the people of this country, taking into cognizance that it is the only thing they stand to gain from the increase on petroleum product pump prices almost 2 years ago. Who is in charge of the management of SURE-P and who takes responsibility for its successes and failures?

24. You will agree that inasmuch as the interest rate regime is critical to the real sector borrowing decisions, most principal factor in making borrowing decisions is the business's expected rate of return on investing borrowed money? The question, without efforts to protect local businesses from their foreign counterparts, the high cost of doing business in Nigeria, puts them at such a disadvantaged position that it makes no economic sense borrowing to invest in their local businesses, why should we expect private sector firms to be investing in the economy?

25. You are quoted as saying, '' Very soon, the US would become a net exporter of oil…So, it would be disingenuous for anyone to say that just because the price of oil has hovered at around $100 per barrel, it cannot crash…Lest we forget, as recently as 2008, oil prices crashed from a peak of $147 per barrel to $35 per barrel ina space of months triggered by the global financial crisis. Is the minority leader saying he has forgotten that?” This forces one to wonder from which source should the US become that net exporter of oil, given that the US daily oil consumption was 18.7 million barrels with (10.6 million of which was imported daily) in 2012? Or, should it be from the shale oil which the International Energy Agency (IEA) demonstrates to be at two million barrels daily? In other words, given the IEA global oil price trajectory, can’t we agree that “There are many constraints on supply keeping pace with demand’’ which means that within this decade, oil prices should always hover around $125 per barrel? Answering this question will help us understand why you insist on benchmarking the oil price for the 2014 appropriation at below $79 per barrel? In answering this question, would you also agree that as the global economy shifts from West to Asia, so will the appetite for global oil consumption shift from the West to Asia?

As crude oil continues to sell at $100-$110, how low will production have to fall for us to record a net loss or at what production level can we break even at a 2013 benchmark of $79.

26. Do you agree that the Excess Crude Account as being operated by government is illegal and unconstitutional, especially given how it has been managed?

27. Can you explain with clarity how the ECA is being operated? Also provide a statement of account of the ECA from 2011 to 2013? Also how much have we made in excess of the benchmark price from January 2013 till date.

28. If there is nothing like Excess Crude Account, would you have been demanding lower oil price benchmark for the budget, especially when the executive arm of government around world is known for demanding more money from lawmakers in order to be able to meet government spending obligations, particularly capital spending. Why is the reverse the case in Nigeria only, notably since 2011?

29. With respect to the Excess crude account and our Sovereign wealth fund again, there have been allegations and counter allegations on its legality. Assuming, for the sake of the committee’s enlightenment, the FGN alone saved its own excess in its ECA/SWF (which is about 52% of the Federation account) and the states and LGs get their funds in full compliance with the constitution, what would be the effect on the economy?

30. Do you believe in the fight against corruption? If you do why has EFCC not been proper funded? Without properly funding the commission, how should it be expected to carry out its duties effectively?

31. Can you confirm with figures if we have met our cumulative revenue projections for 2011, 2012, 2013, and if we have, how and if we have not, why? Also provide backup performance information under the various revenue generating agencies—NNPC (Oil and Gas), DPR, FIRS, Customs, Independent Revenue and other anticipated and unanticipated revenues e.g. privatization and sales of government properties etc.

32. As Minister of Finance, are you familiar and comfortable with all the present business arrangements of the NNPC? Why were these business arrangements excluded from the MTEF which used to be the practice? Provide all the present business arrangements, the parties involved, the share of each party, and justifications for such.

33. Provide details of government stake in NLNG. All categories of revenue under the NLNG and total amount generated so far and evidence of remittances.

34. Why do you always prefer a lower benchmark which leaves government with wider deficits and your attitude of no qualms with domestic borrowings at excessively high interest rates to balance deficit as against our position of increasing benchmark to reduce deficit which consequently reduces domestic borrowing, that frees up funds for the real sector of the economy, thereby bringing down the interest rate, increased private sector investments and creating jobs.

35. What is the total amount expended by certain statutory agencies of government without appropriation for 2011, 2012, and 2013? Also provide aggregate appropriated expenditure for the same period. As the Coordinating Minister of the Economy, do you feel comfortable with allegations that almost equal amount of our yearly aggregate expenditure is being spent without appropriation, yet we are crying that the country is running short of revenue?

36. Between May 7 and 9, 2014, it is expected that Nigeria will be hosting World Economic Forum on Africa. Who will finance this event and why? In concrete terms, what are the expected tangible benefits to the country in return to justify hosting such expensive event that will require lots of money for logistics, accommodations, security, especially given that South Africa that recently hosted the event has nothing to show for it.

37. If you should for any reason say it will attract foreign investors, the question, then becomes, what kind of foreign investors are we talking about here because as we all know, no serious foreign investor needs to attend such a forum in Nigeria in order to recognize that our country should have been one of the world's favored investment destinations had our perennial infrastructure deficit been addressed head-on?

38. Most of the developing economies like China, India, and Brazil that the world is today celebrating as economic success wouldn't have become this successful without adopting multi-year development plans. Why after knowing that their successes are as a result of carefully designed multi-year economic planning, we are yet to adopt such a multi-year development model? In other words, why wouldn’t you agree that Nigeria too needs that in order to move faster and more sustainably in its quest for industrialization and economic diversification and job creation for millions of the country's unemployed young men and women. Specifically, what concrete, visible strategic efforts and action are you taken to diversify our economy

39. As the Coordinating Minister of the Economy, can you precisely clarify how much is AMCON's debt exposure and what will its defaulting mean to the country's economy?

40. Why are we using the 10 to 15 years moving average to arrive at your 2014 proposed benchmark as against the traditional 5 to 10 years moving average we have always used? Is it because using the 5 -10 year average will not give you the benchmark price you desire?

41. This time last year you informed this committee that our external reserve position was about $48 billion and the balance on our excess crude account was about $9 billion. You also said that the plan was to grow these balances to about $50 billion and $10 billion respectively. However we are hearing that the balances have dropped to $43 billion and $3 billion respectively. And you are saying all is well?

42. Crude oil projections for 2013 were 2.53 million barrels per day while actual figures as supplied by the NNPC/DPR/MTEF have averaged about 2.3 million barrels per day giving a shortfall of about 9%. Could this alone have caused such a drastic reduction in our reserves and savings positions?

43. Is any money missing from our anticipated revenue from the NNPC in particular and oil industry in general. If there is, how much? If not, how come such issues emanate from high offices in the executive arm of Government? However, if the reconciliation figures is the issue, how long will Nigerians wait for the reconciliation to be completed. In other words, how long will the reconciliation last and the outcome announced?

44. Referring to the pre-shipment inspection of exports act of 1996 and the Federal ministry of Finance export guidelines. If any good (oil, gas or non oil) is exported from Nigeria the exporter is compelled to repatriate these proceeds through the domiciliary account of a Nigerian bank. What has been the effectiveness of these laws? Is there full compliance.

45. If there has not been compliance, would it not make it difficult for us to build up our foreign reserves?

Could we not say that the main thrust of the CBN letter was that our foreign reserves are not growing even though there has been a consistent high selling price of crude due to the fact that huge funds are not being repatriated at all or are repatriated through the black market?

46. Could we say that the issue is not so much that money is missing (which is yet to be determined) but that proceeds that should have found their way back to the Nigerian economy have grown wings or they fly in through the black market, allowing oil industry players have a field day making spreads of up to N7 per dollar in some cases.

47. What is the Minister’s take on the apparent stagnation of the economy as there seems to be very little job creation and growth in small businesses. Even though the Minister has read out growth figures before it is not telling on the average man on the street.

48. Would the Minister say that the various Government initiatives at job creation have not lived up to expectation as they affect only a very small part of the population?

49. Wouldn’t the Minister think that the private sector should be the main driver of job and wealth creation through natural growth of business and start ups being financed by the banking industry?

50. If so, what does the Minister think it would do for the local banking industry if this same pre-shipment inspection law and your own export guidelines are enforced to the letter. The oil industry in Nigeria is worth about $50 billion per annum. If even $10 billion of this passes through our local banks wouldn’t that give the economy a boost with banks now able to fund longer term and bigger projects?

Signed: Hon. Abdulmumin Jibrin, Ph.D
Chairman
House of Representatives Committee on Finance
via: Nasril el'Rufai's fb

PDP crisis: Panic in Aso Rock as APC meets with OBJ today


by ‘Jola Sotubo
Former-President-Olusegun-Obasanjo
The bid to win more political stakeholders over to the All Progressives Congress (APC) continues today as leaders of the APC are set to meet with former President, Olusegun Obasanjo today.
According to reports, this trend of event has caused panic and anxiety at the Presidential Villa.
The move is coming after Chief Obasanjo’s 18-page letter to President Goodluck Jonathan and the continuous exodus of  Peoples Democratic Party (PDP) members into the APC.
Nigerian Eye reports:
Presidency officials, who said a formal response to Obasanjo’s tirade would come at the appropriate time, feared that the ex-president might use his meeting with the APC leaders to launch a fresh attack on President Jonathan.
It was gathered yesterday that Obasanjo might meet the APC leaders in Abeokuta. It is part of the ongoing consultations by the APC.
Others expected at the session are the five governors, who defected to the APC from the PDP.
They are Governors Murtala Nyako (Adamawa); Rotimi Amaechi (Rivers); Rabiu Kwankwaso (Kano); Aliyu Wammakko (Sokoto) and Abdulfatai Ahmed (Kwara).
A top source, who spoke in confidence, said: “Forces in the presidency are jittery that Obasanjo might further open up on the state of the nation. They are worried that such pronouncement from Obasanjo would finally be a setback for the PDP.
“If Obasanjo asks his followers to join the APC, it will certainly be disastrous for the PDP.
“The President and his strategists are uncomfortable with the visit which they think has the potency of undermining Jonathan’s aspiration for a second term in 2015.”
Jonathan’s strategists are said to have been meeting on how to manage the outcome of the APC leaders’ visit.
Another source, however, clarified the mission of the APC leaders.
He said: “Actually, the five governors were expected to meet Obasanjo before their defection to the APC. But they could not do so because of the exigency at the time.
“The APC leaders and governors are going to Abeokuta to rub minds with Obasanjo on why a change is necessary in the leadership of the nation.”
A governor, who responded to enquiries from our correspondent, said: “At least, we will expect Obasanjo to be neutral as the campaign for the presidency in 2015 begins early next year.”
A PDP source said: “We have got wind of the visit of the APC leaders and it would be a shock to the party, if Obasanjo has decided to host them. In what capacity will he be meeting with APC leaders?
“I think Obasanjo wants to confirm the suspicion that he has sympathy for the APC. Well, the electorate will decide.”
Meanwhile, the defection of some relations and political associates of some ministers has created a crack in Jonathan’s cabinet.
It was gathered that the presidency was pained that the husband of a serving minister has defected to the APC
Sources said some forces are pushing for the exit of such ministers, while others insisted that as long as those ministers are loyal to the government, they should be left alone.