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Nigeria Squandered $201.2bn In 10 Years –NEITI

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In 10 years, Nigeria accumulated a total of $201.2bn in Excess Crude Account, which it squandered within the same period.

The Nigeria Extractive Industries Transparency Initiative stated this in its Occasional Paper (Issue 2), which it just issued.

The publication, which focused on ‘The case for a robust oil savings fund for Nigeria’, said despite current efforts to pull Nigeria out of recession, the economy remained vulnerable to one of the conditions that created the problem in the first place – lack of adequate and prudently managed savings in a period of plenty.

According to the publication, between 2005 and 2015, $201.2bn accrued to the nation through the instrumentality of the ECA, and the entire amount was shared among the three tiers of government within the period.

The ECA was created by the Federal Government to save oil sales above the annual budget benchmark price. Within the period, most state governments argued that the funds were illegal and opted that the money should be shared to meet immediate challenges.

According to NEITI, to overcome commodity price volatility and depletion of non-renewable resources, countries dependent on revenues from natural resources are usually advised to save for the rainy day and for the future generation.

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Although Nigeria has created instruments for such savings such as the ECA and the Sovereign Wealth Fund, it has hardly retained much as leaders especially at the sub-national level have always argued that the rainy day is already around.

One of the major highlights of the publication indicated “Nigeria has about three decades of experience in implementing different oil revenue funds. However, attempts at oil revenue savings have been plagued by contested legal frameworks, governance issues and inadequate political will.”

Other highlights showed “Nigeria has one of the lowest natural resources revenue savings in the world. The balance in the three funds (0.5 per cent stabilisation fund, ECA and NSIA) is less than $3.9bn, not enough to fund 20 per cent of 2017 federal budget.

“Nigeria’s $1.5bn Sovereign Wealth Fund is one of the lowest in the world; it has one of the worst ratio to annual budget (10 per cent), and one of the lowest SWF per capita ($8), better only than war-torn Iraq and crisis-hit Venezuela but not by much.

“In contrast, Norway, a country of 5.2 million people (2.8 per cent of Nigeria’s 186 million people) has a Sovereign Wealth Fund worth $922bn (which is 23,641 per cent of the $3.9bn balance in Nigeria’s three oil revenue funds).”

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The conclusion is that Nigeria has no prudent and robust oil revenue savings scheme that can tie it over expected volatility of oil prices and eventual depletion of its reserves in 38 years; neither does it have a strong mechanism for promoting inter-generational equity.

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Biden Vows Arms Suspension as Israel Shells Rafah

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Demonstrators protest during a rally in support of Rafah, next to a pro-Palestinian encampment at California State University, Los Angeles (Cal State LA) in Los Angeles, California, on May 7, 2024. (Photo by Etienne LAURENT / AFP)

Israel shelled Rafah on Thursday as US President Joe Biden offered his starkest warning yet over the conduct of its war against Hamas, vowing to cut off arms transfers if an offensive into the southern Gaza city goes ahead.

Israel has defied international objections by sending in tanks and conducting “targeted raids” in the border city, which it says is home to Hamas’s last remaining battalions — but is also crowded with displaced Palestinian civilians.

AFP journalists reported heavy shelling in Rafah early Thursday, and the Israeli military later said it was also striking “Hamas positions” further north in the centre of the Gaza Strip.

In an interview with CNN on Wednesday, Biden warned he would stop US weapons supplies to Israel if it pushed ahead with its long-threatened Rafah ground offensive.

“If they go into Rafah, I’m not supplying the weapons that have been used… to deal with the cities,” Biden said. “We’re not gonna supply the weapons and the artillery shells that have been used.”

On Tuesday, Israel forces seized Rafah’s border crossing into Egypt, which has served the main entry point for aid into besieged Gaza.

The White House condemned the interruption to humanitarian deliveries at the time, and the secretary of defence later confirmed Washington had paused, for the time being, a shipment of heavy bombs to Israel after it failed to address concerns over its Rafah ground incursion.

“Civilians have been killed in Gaza as a consequence of those bombs,” Biden said in his interview. “It’s just wrong.”

He insisted, however, that the United States was “not walking away from Israel’s security”.

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The United States, along with Egypt and Cairo, has been heavily involved in talks currently under way in Cairo aimed at brokering a ceasefire in the seven-month war.

– ‘Extreme fear’ –

The Israeli military said Wednesday it was reopening another major aid crossing into Gaza, Kerem Shalom, as well as the Erez crossing.

But the UN agency for Palestinian refugees, UNRWA, said the Kerem Shalom crossing — which Israel shut after a rocket attack killed four soldiers on Sunday — remained closed.

Late Wednesday, the army said a soldier was lightly wounded when Kerem Shalom was again targeted by rockets.

The heavy shelling in Rafah overnight into Thursday followed a day of what the Israeli military said were “targeted raids on the Gazan side of Rafah crossing”, in the city’s east.

An army statement later on Wednesday said that Hamas naval commander Mohammed Ahmed Ali was killed in an air strike “in the past day”. Hamas did not immediately comment.

Civilian life in Rafah, meanwhile, “has completely ceased”, said displaced Gazan Marwan al-Masri, 35, noting “the streets are empty” in the western part of the city.

“We are living in Rafah in extreme fear and endless anxiety,” said Muhanad Ahmad Qishta, 29.

“Places the Israeli army claims to be safe are also being bombed,” he told AFP.

– ‘Catastrophic’ health situation –

An emergency doctor working in Rafah and nearby Khan Yunis said that with humanitarian access compromised, the health situation was “catastrophic”.

“The smell of sewage is rife everywhere,” said the doctor, James Smith. “It’s been getting worse over the course of the last couple of days.”

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World Health Organization chief Tedros Adhanom Ghebreyesus said Wednesday that hospitals in southern Gaza had only “three days of fuel left” because of the border closures.

“Without fuel all humanitarian operations will stop.”

The war in Gaza was sparked by Hamas’s unprecedented October 7 attack on Israel, which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.

Israel in response vowed to crush Hamas and launched a military offensive that has killed at least 34,844 people in Gaza, mostly women and children, according to the Hamas-run territory’s health ministry.

Militants also took about 250 hostages. Israel estimates 128 of them remain in Gaza, including 36 who officials say are dead.

– Truce talks –

Talks involving Qatari, US and Hamas delegations aimed at cementing a long-stalled ceasefire deal were ongoing Wednesday in Cairo, said Al-Qahera News, which is linked to Egyptian intelligence.

It noted that there were “points of contention” during the discussions, but also reported some “convergence” without elaborating.

A senior Hamas official said the latest round of negotiations would be “decisive”.

Hamas “insists on the rightful demands of its people”, the official said on condition of anonymity because he was not authorised to speak publicly about the negotiations.

In Jerusalem, CIA director Bill Burns met Israeli Prime Minister Benjamin Netanyahu to discuss the “possibility of Israel pausing the operation in Rafah in exchange for hostage releases”, an Israeli official said, also on condition of anonymity.

The Hamas official had previously warned the Cairo talks would be Israel’s “last chance” to free the hostages still in militants’ hands.

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Mediator Qatar also appealed “for urgent international action to prevent Rafah from being invaded and a crime of genocide being committed”.

Palestinian analyst Mkhaimar Abusada said Israel’s seizure of the Rafah crossing could be an attempt to create new facts on the ground, or a bid to “sabotage the truce talks”.

Israel’s seizure of the Palestinian side of the Rafah crossing came after Hamas said it had accepted a truce proposal — one Israel said was “far” from what its own negotiators had previously agreed to.

Netanyahu has described the Rafah operation as “a very important step” in denying Hamas “a passage that was essential for establishing its reign of terror”.

 

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CBN orders banks to suspend deposit charges

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The Central Bank of Nigeria (CBN) has directed deposit money banks and financial institutions to suspend processing fees on deposits until September 30, 2024.

In a circular dated May 6, 2024, the apex bank ordered financial institutions to suspend processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates.

This directive, signed by the CBN’s Acting Director of Banking Supervision, Adetona Adedeji, aims to alleviate financial burdens on depositors.

The recent directive follows previous instructions from the CBN, which mandated deposit money banks to impose a 0.5% cybersecurity levy on transactions, a move that has stirred public outcry.

The circular stated, “Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for individuals and N3,000,000 for corporates as contained in the ‘Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions’ issued on December 20, 2019.”

It continued, “The Central Bank of Nigeria hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024. Consequently, all financial institutions regulated by the CBN should continue to accept all cash deposits from the public without any charges until September 30, 2024.”

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TUC threatens massive protest over cybersecurity levy

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FILES: TUC President Festus Osifo during a labour rally

 

The Trade Union Congress (TUC) has issued a stern warning to the Nigerian government, threatening a large-scale protest that could bring the economy to a standstill if the controversial cybersecurity levy introduced by the Central Bank of Nigeria (CBN) is not revoked.

In a statement released on Wednesday, TUC President, Festus Osifo, criticised the recent directive by the CBN imposing a 0.5 per cent cybersecurity levy on nearly all electronic transactions.

This move comes on the heels of heavy criticism from the Nigeria Labour Congress (NLC), which labeled the levy as an additional burden on Nigerians.

The TUC condemned the timing of the levy, highlighting the economic challenges already faced by Nigerians, including the devaluation of the Naira, high petrol prices, and increased electricity tariffs.

Expressing dismay over government policies under the leadership of President Bola Tinubu, the TUC lamented the burden of multiple taxation endured by Nigerian account holders, both from the government and financial institutions.

The union further accused the National Assembly of colluding with elements in the executive to exploit citizens rather than protect them.

TUC emphasised that Nigerians are currently focused on concluding discussions regarding the minimum wage, urging the Federal Government to prioritise this over what it described as a “vexatious policy.”

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It demanded the immediate withdrawal of the CBN circular to banks and the cancellation of the levy.

Warning of drastic action if their demands are not met, the TUC declared its readiness to mobilise members, stakeholders, and the masses for an immediate protest, potentially leading to the complete shutdown of the Nigerian economy.

According to the TUC, this levy represents one exploitation too many for the Nigerian populace.

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