A former Deputy National Chairman of the Peoples Democratic Party, PDP, Bode George, has called on elders and stakeholders of the party to intervene in the political crisis rocking Rivers State.
George, who made this call on Friday, said the Rivers crisis may become a national conflagration, warning President Bola Tinubu not to treat with levity the threat by some lawmakers in the state House of Assembly to impeach Governor Siminalayi Fubara.
He, however, advised that nobody should sit on the fence and pretend as if everything is okay, insisting that the state belongs to PDP.
Quoting Section 109 (1) (g) of the 1999 Constitution which states that a member of the House of Assembly shall vacate his seat if he defects to another party, George maintained that all the PDP lawmakers who moved to the All Progressives Congress, APC, have automatically lost their seats “and they are in no position to threaten Governor Fubara”.
“So their plot to commence impeachment proceedings against the governor is already in vain,” he stressed.
George added, “Rivers people belong to PDP. Those threatening to impeach the governor are being remote-controlled by some forces. This must stop because if Rivers is set on fire today, that may end this democracy.
“We should remember ‘Operation Wetie’ which started in the defunct Western Region and eventually consumed the nation and ended the First Republic in 1966.
“All the actors in this crisis in Rivers should avoid actions likely to cause breach of peace and breakdown of law and order in our country.
“Members of the Board of Trustees (BoT) of our party should be the elders in the room, act swiftly and nip this crisis in the bud before it consumes everybody.
“All the gladiators should also think of the collective interests of Nigerians.
“Whether we are members of PDP, APC or other parties, we should stop issuing provocative statements to increase the tension in Rivers.
“Any move that can truncate this democracy must be stopped immediately. Enough is enough.”
The United Kingdom’s economy has overcome recession earlier than expected in the first quarter of 2023.
The economy grew by 0.6 per cent between January and March, the fastest rate for two years, official figures showed.
Recall that last year, the UK economy slipped into recession after shrinking for two three-month periods in a row.
Prime Minister Rishi Sunak said the economy had “turned a corner”, but Labour said this was no time for a “victory lap”.
On Thursday, the governor of the Bank of England, Andrew Bailey, told the BBC that the UK was seeing a recovery, although it was not a strong one.
Interest rates have been at their highest for 16 years, meaning people are paying more to borrow money for things such as mortgages and loans, but savers have also received better returns.
The Bank on Thursday said that inflation, which measures the rate of prices rise, would fall close to its target level in the next couple of months. That had boosted expectations of a rate cut in June. However, the growth figures that were stronger than expected dampened those expectations.
29 Generals of the Infantry Corps of the Nigerian Army have retired from active military service.
They were pulled out of active service at the Jaji Military Cantonment in Kaduna State on Friday.
Naija News reports that out of the 29 retired infantry officers pulled out of active service at the Jaji Military Cantonment in Kaduna State, 19 were Major Generals and 10 Brigadiers General.
Speaking on behalf of the retirees, Maj.-Gen. Victor Ezugwu, vowed that they would always be committed to the military profession.
He urged those still in active service to sustain the modest strategic, operational and tactical achievements made, and also to surpass them.
”The frontline is expanding and the Nigerian Army is becoming increasingly committed with the eyes of the nation and the world on it.
”Our Infantry Corps must therefore not relent or rest on her oars as the entire Nigerian Army depend largely on the Infantry Corps to achieve its core mandate and mission.
”I admonish the Infantry that as the threats to Nigeria sovereignty is becoming asymmetric in time and space, you must be proactively way ahead of our adversaries in all aspects of the unfolding combat scenarios,” he added.
Ezugwu also called on the Infantry Corps to review some of its tactical and operational strategies in the areas of night fighting capabilities, and frontline intelligence gathering on enemy activities.
He further advised the corps to strengthen basic field crafts training in the areas of aggressive fighting patrols to dominate at least 5 km radius of their locations, Ambushes, listening and observation posts as well as all levels of battle drills.
Ezugwu advocated for employment of modern technology and ICT enablers, and deliberate efforts to develop the leadership skills of junior commanders.
He described military career as the most priceless, honourable and sacrificial call to duty globally, and thanked God for allowing them to end their careers alive after serving the nation for between 30 -38 years.
The General described the day as full of emotional feelings, nostalgic memories, wholesome gratitude, unending joy and unwavering fulfilment.
“For every service personnel, retirement from active service remains a natural and inevitable end which begins to count from the day we passed out from NDA as officers in the Armed Forces of Nigeria.
”Our joy and that of our families, colleagues and friends gathered here today knows no bounds as we take a final bow from the Infantry Corps.
“On behalf of my retired colleague Generals, I most respectfully and dutifully appreciate the incumbent Chief of Army Staff, Lt-Gen Taoreed Lagbaja for organising this benefitting and memorable pulling out parade in our honour,” he added.
Sonny Echono, executive secretary of the Tertiary Education Trust Fund (TETFUND), has proposed the implementation of tuition fees at federal universities for sustainability.
Echono spoke in Abuja during an education sector conference themed: ‘Funding for Tertiary Education in Nigeria’. Federal universities have long maintained a tuition-free policy, guaranteeing tertiary education for the wards of low-income Nigerians.
They receive funding from the government in the form of annual budgetary allocations for salaries, capital expenditure, and running costs. Echono said the federal government should no longer be the only funding source of higher education in the country.
He said the inability of the government to solely finance tertiary education necessitates that the institutions be given the leverage to explore alternative funding. “It is worth repeating that considering the circumstances surrounding the funding of higher education in Nigeria today, the government alone cannot be the sole source of financing for education,” Echono said.
“Cost-sharing, to enable parents and the students who are primary beneficiaries to contribute to the funding of the system through the payment of tuition fees, to complement government subvention to the institution. It is also instructive to state that some institutions owned by state governments have already started implementing this initiative.”
Echono advocated for the implementation of the student loan scheme. “The interest-free loan with a moratorium will provide an avenue for a growing number of students to access loans at affordable rates to pay their fees and support their education."
“The significance of the student loan scheme, which targets the primary beneficiary of education, is that it shifts the burden of payment by the student to after graduation when the graduate is able to earn and repay the loan.”
He added that tertiary institutions should explore partnerships and collaborations with funding agencies and development partners — locally and internationally — to attract support and resources.
The government of Kogi State has affirmed its determination to rescue the abducted students from Confluence University of Science and Technology, CUSTEC, Osara, Okene, alive and well.
Naija News earlier reported that unknown gunmen suspected to be bandits, on Thursday night, invaded the Confluence University of Science and Technology (CUSTEC), Osara, Okene in Kogi State.
It was gathered that the bandits stormed the university around 9.00 p.m. and abducted some students who were reading for their upcoming exams
The state government, in a statement by the Commissioner for Information and Communications, Kingsley Femi Fanwo, assured the public of their effective management of the situation.
The Kogi government stated its commitment to pursuing the kidnappers with the assistance of security agents, including local hunters, and reiterated its resolve to resist terrorism.
The statement read, “Immediately the report was received, Governor Ahmed Ododo activated the security architecture to track the kidnappers and ensure the abducted students are rescued and the abductors apprehended.
“Hundreds of local hunters who understand the terrain, as well as the conventional security agents, are currently combing the area to ensure safe rescue of the abducted students who were kidnapped in the classrooms.
“So far, nine students have been reported missing.
“We wish to assure students, parents and the entire people of Kogi State that the Government is on top of the situation and all the abducted students will be rescued alive.
“Governor Ododo has also directed that security agents be positioned around all tertiary institutions in the State.
“We wish to commend the local hunters and other security agents who rose stoutly to engage the kidnappers.
“Their gallantry and dedication ensured that the kidnappers did not have a field day which would have been more calamitous.
“The state government will spare nothing in ensuring that all the students abducted are safely rescued and reunited with their families.
“We won’t submit to terror. We shall prevail.”
A Federal High Court sitting in Abuja has rejected the request by the immediate past governor of Kogi State, Yahaya Bello, to halt trial in the hearing of the N80.2bn fraud charges brought against him.
Bello asked the court to stay execution in his trial before Justice Emeka Nwite, on the grounds that there is an appeal filed by the Economic and Financial Crimes Commission, before the Court of Appeal, against the contempt application filed by the defendant against the EFCC chairman, Ola Olukayode.
Justice Nwite, in his ruling on Friday, however, rejected the application made by Bello through his lawyer Abdulwahab Mohammed.
Nwite held that “The application cannot be entertained unless the defendant is present in the court. In the absence of the defendant in court, the motion on notice filed by the complainant can only be conducted if the defendant is in court”.
Justice Nwite held that Bello was trying to make rubbish out of a criminal case by choosing to stay in his house and not respect the court orders.
The Lagos State Special Offences Court, presided over by Justice Rahman Oshodi, has admitted a bundle of documents in the ongoing trial of the former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, charged with abuse of office, and alleged fraud to the tune of $4.5 billion and N2.8 billion respectively.
Before the decision of Justice Oshodi, the Economic and Financial Crimes Commission (EFCC) had tendered the bundle of documents through the 3rd prosecution witness, and a Compliance Officer with Zenith Bank, Mr Clement Ngolu, while being led in evidence by the counsel for the EFCC, Rotimi Oyedepo (SAN).
The documents were admitted into evidence following no objections from the 1st defence counsel, Olalekan Ojo (SAN) and the 2nd defence counsel, Adeyinka Kotoye (SAN).
Specifically, the judge admitted the original copies of Zenith Bank account opening package, statement of account of Limelight Multidimensional Services Ltd which were sent to the EFCC into evidence.
According to the judge, “I have read the documents dated March 2024, and I admit the original certified copy of the bundles of documents which include account opening package, statement of accounts into evidence and are marked as exhibit A.” Oshodi said.
In his evidence before Justice Oshodi, Ngolu confirmed that his department responded to regulators and law enforcement agencies in order to ensure that the bank activities were in line with bank’s policies and regulations.
While adding that his department worked with agencies like the EFCC, Nigeria Police, ICPC and NSCDC, the witness explained that sometime in 2014, his department got a request from the EFCC to furnish it with statements of accounts of Limelight and two other accounts and the same was duly furnished the anti-graft agency.
Ngolu said, “The documents we sent to the EFCC was duly signed by staff of the bank.
“The process of generating the statement was through our computer system, which was in good condition as at the time.
“The documents were printed out from the company’s computer which was working well, and the documents are in the bank’s custody.”
However, the defence said they had no question for the witness.
Equally, a former Director of Information Technology of the CBN, John Ayoh, in the continuation of his cross-examination, revealed that he had a confrontation with Emefiele because he had asked him to do something wrong.
The witness who further confirmed that he was sidelined by the embattled governor on the reason that he was not popular with him, added that his being sidelined made him not to have any relationship with him.
According to him: “I was not happy being unpopular with the former CBN governor but on a number of occasions, I signed contract letters to vendors.
“While I was a director with the CBN, my loyalty was to the bank and the Nigerian nation and my relationship with Emefiele was only formal and based on instructions.
“The governor and the four deputy governors of the bank alongside the directors make up the management of the CBN.”
The case has been adjourned until May 17 for the continuation of trial.
Works ministry defends project, House panel gets four weeks to complete probe
The House of Representatives on Thursday resolved to probe the ongoing N15tn Lagos-Calabar Coastal Highway project.
As such, the House said it would set up an ad-hoc committee, which would investigate the project and submit a report within four weeks.
The resolution of the House followed the adoption of a motion of urgent public importance moved during plenary by the member representing Gwer East/Gwer West Federal Constituency, Benue State, Mr Austin Achado.
The House also resolved to summon the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN; the Minister of Finance, Wale Edun and his works counterpart, David Umahi, to shed more light on the project.`
But the Ministry of Works defended the project, saying it followed due process. It also said the House of Representatives members had pledged support for the project.
A 700-kilometre turnpike infrastructure, the coastal highway project has attracted commendation and condemnation since the Bola Tinubu administration approved it in February.
The 10-lane coastal road was designed to connect Lagos to Cross River, passing through Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom states before culminating in Calabar, the Cross River State capital.
The project gained traction under the administrations of Goodluck Jonathan and Muhammadu Buhari but could not commence.
Under Jonathan, the highway was to cost $12bn, and $11.1bn under Buhari. It was subsequently expanded from a four-lane double carriageway to a 10-lane highway.
Minister of Works, Dave Umahi, disclosed that the construction of the coastal road was expected to span eight years and cost N4bn per kilometre.
FEC approval
So far, the minister disclosed that the Federal Executive Council had approved and released N1.06tn for the contractor for the pilot phase of the construction, which started at the Eko Atlantic City and will terminate at Lekki Deep Seaport.
Although many have lauded the ambitious project, others faulted the process of the award of the contract that led to the emergence of Hitech Construction Company Nigeria Limited as the preferred contractor.
Umahi had explained that the reason for awarding the contract to Hitech without competitive bidding as laid down by the laws was because of the company’s “track record.”
The minister disclosed that the highway was conceived as an Engineering, Procurement and Construction plus Financing project.
The model, he explained, entails part-funding by the Federal Government between 15 to 30 per cent.
Umahi said the approval process went through the Bureau of Public Procurement after consideration by the Federal Executive Council as prescribed by law.
The minister also said that the contract was awarded on a counterpart-funding basis and not on a public-private partnership, as widely claimed.
“Under this model, the investor provides all designs, part of the financing and construction while the Federal Government provides the counterpart funding. The ministry received such a bid, worked on it and sent it to BPP.
“The BPP worked on it according to the Procurement Act and came up with a price slightly lower than the ministry’s price and even lower than the cost of similar projects awarded five years ago like the Bodo-Bonny project.
Counterpart funding
“So, there’s a marked difference between PPP and EPC plus F (Engineering, Procurement and Construction plus Finance). And in this particular project, there will be a negotiated counterpart funding of between 15 and 30 per cent. We are still negotiating on these terms and will come to a resolution soon,” the minister stated.
Aside from the cost, the demolition of structures along the right of way of the project, particularly the hospitality outlets around the Lagos beaches, had sparked public discourse on the project.
The government has commenced payment of compensation to some of the businesses affected by the demolition.
The first phase of the compensation flag-off included 10 property owners who had been paid about N2.75bn.
However, moving the motion on the floor of the chambers, Achado, a chieftain of the All Progressives Congress, insisted that the guarantees issued to cover the debt financing component of the project did not have the approval of the National Assembly.
He stated, “It is disturbing that the contingent liabilities accruing to the Federal Government of Nigeria on this project violate the Debt Management Office (Establishment) Act of 2023, as section 22(3) states that the minister shall not guarantee an external loan unless the terms and conditions of the loan shall have been laid before the National Assembly and approved by its resolution.
“The guarantees issued to cover the debt financing component of this project do not have the approval of this National Assembly.”
The lawmaker noted that the Federal Ministry of Works had executed an engineering procurement construction finance contract in favour of Hitech Construction Company Nigeria Limited for the delivery of the coastal road and rail project.
He explained that the project was estimated at N4.33bn per kilometre using reinforced concrete technology for a carriage width of 59.7 metres, to include 10 lanes, shoulders and rail with additional designs of service ducts, street lights, drainages and shore protection.
Achado further said the project had the prospect of providing easy access for the movement of goods and services across the nation, and has a financing structure, as announced by the works minister, “Which requires the Federal Government to provide 15 per cent to 30 per cent co-financing, while the private sector counterpart will provide the balance, and toll the road when completed for a minimum period of 15 years, to ensure full recovery of all debts and equity applied for the delivery of the project.”
Procurement process
Regrettably, Achado maintained that the procurement strategy of the project might have violated section 40(2) of the Public Procurement Act 2007.
The section, he added, required that where a procuring authority adopts a restrictive tendering approach, “It should be on the basis that the said goods and services are available only from a limited number of suppliers and contractors and as such, tenders shall be invited from all such contractors who can provide such goods and services.”
Furthermore, the lawmaker argued that the procurement strategy adopted by the Federal Ministry of Works for the award of the contract violated the Infrastructure Concession and Regulatory Commission Act 2905.
“Section 4 of the Act outlines that all approved infrastructure projects and contracts for financing, construction and maintenance must be advertised for open competitive public bid, in at least three national dailies,” Achado noted, adding that section 5 of the Act further clarified that “Any direct negotiations with only one contractor could be allowed, only after exhausting the provisions of section 4.”
He further raised the alarm of a possible creation of contingent liabilities for Nigeria because, according to him, while promoting the project, the ministry of works provided a rate per kilometre for the planned works but failed to provide the private partners’ financing sources, structure and competitiveness.
However, Uyime Idem (PDP, Akwa-Ibom), moved an amendment for the project to be referred to the Committee on Public Procurement, which he heads.
He explained that his committee already received several petitions on the project. His amendment was subsequently adopted by the House.
Isiaka Ibrahim (APC, Ogun) moved an amendment for the House Committee on Works to be included. The amendment was also adopted.
The committees were then directed to summon Umahi, Edun and Fagbemi, to ensure that all guarantees and credit enhancement instruments for the Lagos-Calabar Coastal Road Project are sent to the National Assembly for approval.
When the motion was put to a vote by Speaker Abbas Tajudeen, after the motion was amended, the majority of the members voted in support.
Following the adoption of the motion, Achado said, “The House resolved to set up an ad hoc committee to investigate the procurement process of the contract for the Lagos-Calabar Coastal Highway project and report to the House within four weeks.
“The House called on the Honourable Minister of Works, the Honourable Minister of Finance and the Attorney-General of the Federation and Minister of Justice to ensure that all guarantees and credit enhancement instruments for the Lagos-Calabar Coastal Road Project are sent to the National Assembly for approval.”
In an interview with The PUNCH, the Deputy Spokesman for the House, Philip Agbese, disclosed that the ad hoc committee would be set up soon at the discretion of the Speaker, Abbas Tajudeen.
He said, “The House has its rules change concerning the setting up of ad-hoc committees. Very soon, the committee will be constituted at the discretion of the speaker, taking into consideration the prayers of the motion.
“The minority will send a representative and all the various caucuses would be allowed to have a say in the committee,” Agbese clarified.
In his reaction to the House resolution, the works ministry’s spokesperson, Ben Goong, recalled that the National Assembly members conducted a site visit at the beginning of the construction and granted full approval for the project.
He further mentioned that they expressed support for the project and committed to ensuring its timely completion.
He said, “But members of the National Assembly paid a visit to the site at the start of constructing the highway. The minister was accompanied by the leadership of the house committee on works and they pledged to support that project till it was completed.”
The Director of Press and Public Relations, Ministry of Finance, Mr Mohammed Manga, declined to comment on the lawmakers’ demand for guarantees and credit enhancement.
The Italian prosecutor involved in the trial of Shell, Eni and others, in the controversial Oil Prospecting Licence (OPL) 245 case, Fabio De Pasquale, has been demoted by the country’s Superior Council of the Judiciary (CSM) for his role in the proceedings.
An Italian newspaper, Ilgiorno, reported that De Pasquale was demoted for “lack of impartiality and fairness” in the way he handled the prosecution at the Court of Milan. Recall that in 2021, a former Minister of Justice and Attorney General of the Federation, Mohammed Adoke (SAN), had petitioned Italy’s Minister of Justice over the conduct of De Pasquale. Adoke, through his lawyers, accused the prosecutors of unlawful acts of intimidation/threat to life, forgery of documents/evidence intended for unlawful interference with the administration and perversion of the course of justice.
The Italian was also said to have hidden critical evidence that would have exonerated the defendants and is facing a separate hearing over the allegation. Adoke said the prosecutors acted “maliciously and unprofessionally” to his detriment despite the fact that he was not a direct party to the criminal prosecution and was not on trial before the Milanese court.
Eventually, the court discharged all persons and companies accused of fraud and bribery in the transaction. De Pasquale, who was assistant prosecutor at the Court of Milan with semi-managerial prosecuting functions, was rejected by 23 of the 27 members of the CSM, including its Vice President, Fabio Pinelli, while four members abstained from voting.
“It is therefore demonstrated that De Pasquale lacks the prerequisites of impartiality and balance, having repeatedly exercised jurisdiction in a manner that was neither objective nor fair with respect to the parties as well as without a sense of proportion and without moderation,” the CSM resolved.
Naira depreciation continued as US dollar transactions at the official foreign exchange market dropped to an all-time low of $84.38 million.
This is according to FMDQ data at the close of work on Thursday.
The day-to-day FX supply turnover dropped from $160.77 million on Tuesday to $84.38 million on Thursday.
Consequently, the Naira further dipped to N1459.73 per dollar on Thursday from N1416.57 on Wednesday.
This represents an N43.17 depreciation against the dollar at the official foreign exchange market.
Similarly, the Naira dropped to N1,450 per dollar on Thursday in the parallel market section, compared to N1,438 the previous day. This brings the gap between the official and parallel markets to N9.73.
Naira’s depreciation has been consistent for days now in the FX market.
The country’s forex instability has persisted despite the recent surge in foreign reserves by $262 million.
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American Express Co. has launched its inaugural business credit card in Nigeria amid the foreign exchange crisis.
The international firm is partnering with a Nigerian firm, neobank O3 Capital Nigeria Limited, potentially enhancing access to dollar transactions in the West African country.
The unveiling happened in Lagos on Thursday.
The business card comes with a spending limit of $10,000 and offers a repayment window of up to 45 days for international transactions.
The President of Global Network Services, Amex, Mohammed Badi, said, “The first-ever American Express Business Card in the most populous African country will give us another way to support local businesses with their growth aspirations”.
Similarly, the Chief Executive Officer of O3 Capital, Abimbola Pinheiro, said the O3-Amex card “solves the problem of queuing at banks for business travel allowance and the personal travel allowance.
The development comes amid the continued foreign exchange crisis in Nigeria.
On Thursday, the Naira dipped to N1459.73 per dollar at the official exchange market.
FG’s cash transfer scheme increased household savings, but had little impact on employment — World Bank
AFOLABIThe World Bank says the conditional cash transfer (CCT) programme of the federal government has had a limited impact on household consumption and financial inclusion.
The Bretton Woods institution disclosed this in its latest report, titled, ‘Beta Don Come: Effects of Cash Transfers on Women and Households in Nigeria’.
According to the report, the intervention also had a limited impact on employment, especially for women.
The report cited the 2016 cash transfer programme when the federal government launched the National Social Safety Nets Project (NASSP).
At the launch of the programme, it said, the federal government had provided households a cash transfer of N 5,000, disbursed as a lump sum every two months.
Payments were given to each household’s primary caregiver — predominantly women — the report stated.
The World Bank, however, suggested that there is a need for a complementary livelihood to support the intervention to generate sustainable improvements in households’ self-sufficiency.
“Program participation improved several dimensions of households’ and women’s welfare over time,” the report reads.
“Households in communities that entered the program earlier experience larger increases in household savings and food security, along with increased access to farmland and livestock ownership, compared to similar households in communities that entered the program later.
“We also find improvements in caregivers’ self-reported happiness, decision-making autonomy over how to spend their own income, and freedom of movement.
“Positive impacts appear to primarily result from the saving mobilisation component of the program.
“Households are substantially more likely to save the longer they have been receiving cash transfers and to switch away from exclusively using the cash for household consumption.
“However, in contrast to these strong positive impacts, we do not find any statistically significant effects on overall household consumption or on caregivers’ employment and financial inclusion.”
The World Bank also said in spite of the efficacy of the CCT programme, there is no evidence to “the impacts of participating in the program at all”.
“We find positive effects on households’ saving, food security, and economic activity along with increased caregivers’ decision-making autonomy and physical mobility associated with participating in the project for longer periods of time,” the report added.
“Nonetheless, the limited impacts on household consumption and women’s employment suggest that there is remaining scope for a complementary livelihood support intervention to generate sustainable improvements in households’ self-sufficiency.”
Approved in 2016, the CCT programme was established to benefit poor and vulnerable Nigerians with a monthly stipend of N5,000.
On July 13, 2023, President Bola Tinubu asked the senate to approve the $800 million loan request.
The president had said the loan would be used to scale up the national social safety net programme and cushion the effect of the removal of petrol subsidy.
He said the federal government would transfer N8,000 monthly to 12 million poor and low-income households for six months.
But on July 18, 2023, Tinubu ordered the immediate review of the proposed N8,000 conditional cash transfer.
Experts have urged Nigeria to learn from the debt crisis of Egypt by embarking on spending that will make a positive impact on the nation’s economy.
According to experts, Egypt’s economic bold reforms were held up as a model country for Nigeria as the country became the darling of investors. However, the country later undone the gains of those reforms with huge spending of borrowed funds on megaprojects from a new capital city to presidential palaces that have not delivered economic gains.
An economist familiar with the matter said that the spending spree, financed mainly by foreign loans, has put Egypt at risk of a rare bond default. He said Egypt’s case shows reform is not enough, if it is not complemented by purposeful leadership.
A public finance expert, Musa Adekunle said Nigeria can learn from some mistakes made by Egypt such as failed industrial development due to poor planning and heavy bureaucracy, and export policies that created a persistent trade deficit.
He said, “A borrowing spree under President Abdel Fattah al-Sisi left Egypt with heavy foreign debt. Foreign creditors have been shying away, pushing the Cairo government to borrow domestically even as interest rates surge, spawning bigger deficits. This, and an expansion of the money supply, have fuelled currency depreciation and higher inflation.
Over the past two years, an acute dollar shortage suppressed imports and caused a backlog at ports, with a knock-on effect on local industry. Prices for many staple foods rose much faster than headline inflation, which accelerated to a record 38%. Economic growth has slowed, and many Egyptians say their standard of living has been eroded.”
Fresh data released by the Central Bank has shown that Egypt’s foreign debt increased by $3.5 billion in the last three months of 2023 which has deepened her debt crisis as the country’s foreign debt now amounted to 43 per cent of its Gross Domestic Product. According to Business Insider Africa, total foreign debt in the country climbed to $168.0 billion from $164.5 billion at the end of September and $162.9 billion at the end of December 2022.
Egypt has quadrupled its external debt since 2015, using it to finance various initiatives such as constructing new capital, developing infrastructure, procuring weaponry, and sustaining an overvalued currency, Reuters reported.
The central bank reported that the foreign debt, of which 82.5 per cent was long-term, amounted to 43 per cent of the gross domestic product.
Following the Ukraine crisis, which resulted in a chronic shortage of foreign currency and prompted an exodus of foreign investors, the government of Egypt sought assistance from the International Monetary Fund (IMF).
The country deliberately allowed its currency to weaken by over 35 per cent in a much-anticipated devaluation, potentially opening the door for additional loans from the IMF.
In March, the International Monetary Fund (IMF) approved a $5 billion augmentation to its loan programme for Egypt. The approval increased the Extended Fund Facility arrangement from the initially approved $3 billion in December 2022 to $8 billion.
The IMF has consistently advocated for Egypt to implement tighter monetary policies to address nearly 30% inflation and adopt a more flexible official exchange rate.
As part of the agreement, Egypt committed to reducing spending on large government projects. Also, in March, Egypt raised the prices of various fuel products, fulfilling a commitment made to the IMF as part of the financial assistance agreement.
[Ledadership]
John Makina, the Country Director of Oxfam, has announced significant progress in fostering social cohesion among 16 wards and 80 communities in Michika Local Government Area, which suffered greatly during the insurgency in Adamawa State.
The initiative aims to foster unity and reduce crises in the region.
Addressing journalists at a close-out review and dissemination workshop in Yola, themed “Support to Improving Social Cohesion through Community Development Planning in 16 Wards of Michika LGA,” Makina outlined that the 11-month intervention was conducted in collaboration with CRUDAN, GIZ, and CEPAD.
Makina emphasised that the intervention focused on enhancing participatory engagement and planning among local communities, governmental bodies, and stakeholders. This collaborative effort is anticipated to yield better socio-economic outcomes for the affected communities.
“The aftermath of the insurgency in Michika LGA has led to widespread distrust among residents, internally displaced persons (IDPs), refugees, and returnees, underscoring the urgent need for social cohesion,” he said.
[DailyTrust]