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Muhammadu Buhari rebukes Cameron for corruption remarks

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Nigerian President Muhammadu Buhari

Muhammadu Buhari, the Nigerian President, aimed a subtle attack on David Cameron’s hypocrisy after the British PM’s comments on Nigerian corruption.

Muhammadu Buhari, the Nigerian President, was in London this month for a multinational conference on tackling corruption. The summit was being held at the Commonwealth Secretariat, in the UK’s capital city, and played host to numerous world leaders as well as the US Secretary of State, John Kerry.

While the event was a positive move by different nations to discuss strategies for breaking down corruption, it was preceded by an embarrassing leak regarding the British Prime Minister.

Only days before the scheduled meeting, Cameron was overheard talking to the British Queen and saying, “We’ve got some leaders of some fantastically corrupt countries coming to Britain … Nigeria and Afghanistan, possibly the two most corrupt countries in the world.”

Buhari’s balanced retort

As Mr. Cameron’s comments were widely reported, President Buhari’s office released a statement to say that the President was “deeply shocked and embarrassed” by the Prime Minister’s remarks.

However, there was a much more subtle retort about to come. A retort in which Buhari accepted the issues that his country faces with corruption, but also shone a light on the vein of hypocrisy, that some might see, within Cameron’s words.

When asked by the BBC whether Nigeria was indeed “fantastically corrupt,” Mr Buhari responded “yes,” and then elaborated on Cameron’s remarks by saying, “He was telling the truth. He was talking about what he knew.”

But the real riposte came when Mr Buhari explained that he was not demanding “any apology from anybody,” adding, “I am demanding a return of assets. What would I do with an apology? I need something tangible.”

This was a reference to the billions of dollars of money stolen from Nigeria by corrupt officials, who then took their ill-gotten gains to the UK. The most recent example of this involves former Nigerian state governor Diepreye Alamieyeseigha, who fled Nigeria as he faced corruption charges, and arrived in Britain with $1.8 million in cash. While Alamieyeseigha was arrested in the UK, and charged with money laundering. £1 million of this money was eventually returned to Nigeria through the Metropolitan Police.

Moreover, this was not an isolated case, or even close to being the largest amount. Funds stolen from Nigeria and siphoned to the UK are nothing new. Almost 20 years ago, the former military head of state, Sani Abacha, was shown to have stolen approximately $5 billion from Nigeria’s coffers, and half of this is estimated to have been laundered in the UK. None of this money was ever recovered by Nigeria, and the incumbent President wonders just where it is and when it will be returned.

The former governor of Nigeria’s Delta State, James Onanefe Ibori, is also estimated to have stolen $250 million from his homeland. Ibori is serving jail time in the UK, but his multitude of British properties has not been processed in order to ensure that the laundered money is sent back to its rightful home.

The reality for both nations

It is of course clear that Nigeria’s corruption problem outweighs Britain’s. However, perhaps one of the largest issues is that Nigeria’s corruption adversely affects its own people, while Britain’s corruption often allows a small number to benefit from theft outside its own shores.

Transparency International’s Corruption Index ranked Nigeria 136th out of 168 nations, and the UK was ranked 10th. However, Transparency International criticized Prime Minister Cameron’s comments, saying that the UK was a key part of the global corruption problem by “providing a safe haven for corrupt assets” and being “by far the most important part of the global offshore system of tax havens and secrecy jurisdictions.”

The recent scandal around the Panama Papers, and the naming of Mr. Cameron’s father in them, is a timely reminder that corruption is not simply a problem in the developing world.

The presence of the various world leaders in London is a positive step, but Nigeria could justifiably argue it is doing more than most to address its problems.

The Nigerian Economic and Financial Crimes Commission has only been operating since 2003, and yet by 2013 it had thousands of convictions. Nigeria appears to be taking corruption seriously, and “embarrassing” comments put to the side, it must be hoped that all the nations at the anti-corruption talks can work together for sustained progress.

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Nigeria finmin says gov’t revenues fall in April due to oil

Comments (0) Africa, Latest Updates from Reuters, Politics

ABUJA (Reuters) – Nigeria’s distributable revenues to the three tiers of government fell in April to 281.5 billion naira ($1.42 billion), down 18.25 billion naira from March due to low oil prices, the West African country’s finance minister said on Wednesday.

The fall in revenue was caused by the “drop in the average price of crude oil,” Finance Minister Kemi Adeosun told journalists.

“A marginal drop in income was recorded from oil and gas royalties and import duties,” she added.

Nigeria, a member of OPEC, relies on crude sales for about 70 percent of its government revenues.

But with Africa’s largest economy now contracting, uncertainty around a foreign exchange policy shift that was announced without full details being provided and a new Niger Delta insurgency sending oil output to a 20-year low, it is a plight that gets worse by the day. [nL5N18K2X9]

The sharp fall in global crude prices since mid-2014, has hurt the country’s public funds and left many states unable to pay public salaries on time or fund infrastructure projects and other state services.

($1 = 198.8000 Nigerian naira)

 

(Reporting by Camillus Eboh, writing by Alexis Akwagyiram, editing by G Crosse)

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Nigeria to adopt flexible FX regime, details to follow

Comments (0) Africa, Business, Latest Updates from Reuters

ABUJA (Reuters) – Nigeria’s central bank is adopting a flexible foreign exchange rate regime, Governor Godwin Emefiele said on Tuesday, in a policy U-turn designed to boost exports and stave off a recession in Africa’s biggest economy.

The bank has previously kept a de facto peg of around 197 naira per dollar but that has become unsustainable due to a shortage of hard currency stemming from a slump in oil revenues.

On the parallel market, the naira has fallen to some 40 percent below the official rate.

“The MPC (Monetary Policy Committee) voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate,” Emefiele told reporters.

Details of the new rules would be published in a few days, he added.

He said the central bank would “retain a small window for funding critical transactions” and that “details of operations of the market would be released by the central bank at the appropriate time”.

On Monday, the government said it would use a lower rate of 285 naira per dollar for petrol imports rather than the pegged official rate of 197.

 

(Reporting by Camillus Eboh, Ulf Laessing and Alexis Akwaqyiram; Editing by Ed Cropley and Catherine Evans)

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Nigerian oil output down 40% on Delta pipeline attacks

Comments (0) Africa, Business, Latest Updates from Reuters

ABUJA (Reuters) – Nigeria’s oil production has fallen by almost 40 percent to 1.4 million barrels a day due to militant attacks on facilities in the Delta region, its oil minister said on Monday.

Emmanuel Ibe Kachikwu’s comments come amid a resurgence of militancy in the southern region which produces most of the crude oil that Nigeria relies on for around 70 percent of national income, and days after Britain’s foreign minister said local grievances need to be addressed. [nL5N18B0L2]

Kachikwu said efforts would be made to engage with people in the area.

Nigerian oil output has been driven lower after attacks by a group calling itself the Niger Delta Avengers which says it wants a greater share of oil profits and independence for the swampy region where residents have long complained of poverty.

Attacks in the last few weeks have hit platforms belonging to Chevron and Shell.

“Because of the incessant attacks and disruption of production in the Niger Delta, as I talk to you now, we are now producing about 1.4 million barrels per day,” Kachikwu told the House of Representatives.

“We were at 2.2 million bpd but we have lost 800,000 barrels,” said Kachikwu, who was invited to address the lower house of parliament about the country’s oil sector.

The 2016 budget assumes oil production of 2.2 million barrels per day at $38 a barrel.

Nigeria has moved in army reinforcements to hunt the militants but British Foreign Minister Philip Hammond on Saturday said the government needed to the deal with the root causes of the conflict because a military confrontation could end in “disaster”.

Kachikwu echoed these sentiments when he told parliamentarians experience had shown that force alone tends not to solve problems.

“There are going to be robust engagements on what could have happened to the contract or relationship that used to exist between the Niger Delta and the Nigerian police that has suddenly resorted to sabotage,” said Kachikwu.

President Muhammadu Buhari has extended a multi-million dollar amnesty signed with militants in 2009 but upset them by ending generous pipeline protection contracts.

“We are trying to look at the amnesty and what has happened. Policing is key, security is key and throwing economic palliative to those sectors are also key,” added Kachikwu.

He said the government was “trying to create funding mechanisms for some private investments including funding mechanisms for some modular refineries” and “actually getting them involved in the security of the facilities”.

 

(By Camillus Eboh. Writing by Ulf Laessing and Alexis Akwagyiram; editing by Adrian Croft and David Evans)

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Coca-Cola HBC would consider expanding in Africa

Comments (0) Africa, Business, Latest Updates from Reuters

LONDON (Reuters) – Coca-Cola HBC, a bottler of Coca-Cola drinks, is open to further acquisitions in Africa if the right opportunity became available, its chief executive said on Friday.

Coca-Cola and brewer SABMiller are combining their African soft drink bottling operations, but the future ownership could change, since SABMiller is in the process of being bought by Anheuser-Busch InBev.

The chief executive of Coca-Cola HBC, which has extensive experience operating in Nigeria, said it was too early to comment on the impact of those deals, but in response to a question added that if “the right strategic opportunity” were to come along, it would “certainly (be) something we would consider”.

 

(Reporting by Martinne Geller in London; Editing by Alexander Smith)

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Nigeria investigates banking deals, questions CEOs

Comments (0) Africa, Business, Latest Updates from Reuters

LAGOS (Reuters) – Nigeria’s central bank and its financial crimes agency have launched an investigation into banking deals after allegations of illegal transactions and has interrogated three top banking executives, officials and bankers said on Tuesday

The move signals an escalation of a crackdown on graft by President Muhammadu Buhari who got elected a year ago on a ticket to fix the economy of a country where most Nigerians live in poverty despite its enormous energy wealth.

But analysts said the probe which saw three banking chief executives escorted from their offices is a hit to a sector already reeling from a slump in oil revenues and the country’s worst economic crisis for decades.

“It’s a shock to confidence in the banking sector. They should have handled this investigation more discreetly rather than arresting CEOs in their offices,” said Bismark Rewane, CEO of Lagos-based consultancy Financial Derivatives.

“I fear for the ramifications.”

Banking sources say the Economic and Financial Crimes Commission (EFCC) has been investigating several banks for conducting possibly illegal transactions in the run-up to the March 2016 election to support then-president Goodluck Jonathan, who eventually lost to Buhari.

Corruption spiked under Jonathan but his supporters reject Buhari’s claims that his government had plundered the treasury and accuse Buhari, a former military ruler, of conducting a witch hunt.

The central bank said it was part of the probe to determine “the extent and persons that may be involved in such activities”. It gave no details but said the banking sector remained strong and described the deals in question as “isolated”.

But for banks in Africa’s biggest economy the probe couldn’t come at a worse time as several have recently reported falls in profit while bad loans have burgeoned due to exposure to the ailing oil industry. Some are in the middle of restructuring their business models.

The banks have also been hit by Buhari’s decision to freeze the naira rate, which has made investors reluctant to pour money into the West African nation as they expect him to devalue the currency anyway due to a loss of oil revenues.

Part of the foreign exchange trade has moved to the parallel market as banks have run out of dollars.

 

QUESTIONING

The crackdown started when the EFCC said last week it had obtained a court order to arrest the managing director of Nigeria’s Fidelity Bank, Nnamdi Okonkwo, and question him. A bank official said he had been released on Friday.

Nigerian media outlets, including The Premium Times, citing unnamed sources, said Okonkwo had been arrested on suspicion that he received $115 million from Jonathan’s oil minister, Diezani Alison-Madueke. It was not clear if the central bank was referring to these allegations in Tuesday’s statement.

Alison-Madueke’s lawyer was not immediately available to comment.

She is under investigation over allegations of bribery and money laundering and was questioned by London police in October. Alison-Madueke is still in Britain undergoing cancer treatment, her lawyer has said. [nL5N1223TQ] [nL8N12A0EA]

Fidelity said last week it had appointed an acting CEO and was cooperating in the probe, saying all its transactions had been reported to regulators. The bank declined any further comment.

Sterling Bank, another domestic lender, said on its website that EFCC agents had questioned its Chief Executive Yemi Adeola and other members of its senior management team.

The bank said it did not hold an account of “the public officer from the previous administration” linked to the probe, without elaborating.

A third bank, Access Bank, said agents had visited it on Friday to investigate a transaction involving a customer of the bank and had questioned its group managing director, Herbert Wigwe, in the EEFC offices.

“He was released without charge on the same day,” the bank said in a statement.

An official at the EFCC, asking not to be named, said the investigation was ongoing and declined to give further details.

In January Nigeria’s former national security adviser Sambo Dasuki went on trial on fraud charges in the country’s first high-profile corruption trial since Buhari took over.

 

(By Oludare Mayowa and Ulf Laessing. Additional reporting by Felix Onuah and Camillus Eboh in Abuja; Editing by Louise Ireland and Gareth Jones)

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Shell says Nigerian output continuing despite reports of militant threat

Comments (0) Africa, Business, Latest Updates from Reuters

LONDON (Reuters) – Shell said on Monday that oil output was continuing at its oil fields in Nigeria despite local media reports of a militant attack near its Bonga facilities.

Media reports said the company was evacuating workers because of threats from militants.

“Our operations at Bonga are continuing,” a spokesman for Shell Nigeria Exploration and Production Company (SNEPCo) said in a statement, adding that it will continue to monitor the security situation in its operating areas and take all possible steps to ensure the safety of staff and contractors.

 

 

(Reporting By Libby George; Editing by David Goodman)

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Nigeria’s Buhari signs delayed 2016 record budget into law

Comments (0) Africa, Latest Updates from Reuters, Politics

ABUJA (Reuters) – Nigeria’s President Muhammadu Buhari signed the delayed 2016 budget into law on Friday, ending weeks of wrangling with lawmakers and tripling capital expenditure as Africa’s biggest economy contends with its worst crisis in years.

The 6.06 trillion naira ($30.6 billion) budget is an attempt by Africa’s top oil exporter to stimulate an economy hammered by the fall in crude oil prices. Oil sales make up about 70 percent of national income.

The budget assumes oil production of 2.2 million barrels per day at 38 dollars a barrel, Budget Minister Udoma Udo Udoma told reporters shortly after the signing.

Growth last year fell to its slowest rate since 1999 at 2.8 percent and inflation rose to a near four-year high of 12.8 percent in March while capital imports declined by 74 percent year-on-year in the first quarter of 2016. [nL5N1817H4]

In a speech given after the signing, Buhari said the current period was “probably the toughest economic times in the history of our nation”.

“In designing the 2016 budget, we made a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports,” he said.

The president said 350 billion naira would be spent on capital projects, and he compared the 200 billion allocated to road construction with the 18 billion earmarked for that purpose in the 2015 budget.

Buhari withdrew his original budget bill in January because of an unrealistic oil price assumption. Parliament approved an amended proposal in March but only submitted highlights, prompting Buhari to say he would only sign the bill after it was resubmitted.

The lack of a budget, almost a year after Buhari took office, meant ministries were unable to allocate funds to projects in various sectors.

“The passage of the budget has been a long journey, and it has been as much about process as content,” Nigeria-focused PM Consulting’s Antony Goldman, said.

The government plans to generate 3.38 trillion naira this year from non-oil sources, up 87 percent from 1.81 trillion in 2015 [nL5N17E2KU]. But, with the heavy reliance on oil sales, it is unclear how this will be achieved.

Finance Minister Kemi Adeosun has said Nigeria is expected to post budget deficits for the next two to three years [nL5N17E17G]. In 2016, the deficit is seen at 2.2 trillion naira compared with a previously estimated 3 trillion.

She has said Nigeria plans to borrow a total of 1.8 trillion naira from abroad and at home.

($1 = 199.0000 naira)

 

(By Felix Onuah. Writing by Alexis Akwagyiram; Editing by Louise Ireland)

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Nigeria to begin exploratory oil drilling in Chad Basin by October

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ABUJA (Reuters) – Nigeria plans to begin exploratory drilling in search of oil in the northeastern Chad Basin region by October, the head of the state oil company has said.

Emmanuel Ibe Kachikwu, who last year said Africa’s biggest crude exporter may be on the verge of a significant oil find in the Lake Chad area, said in a statement on Sunday that seismic studies were ongoing.

“Drilling activities will commence by the last quarter of 2016,” the Nigerian National Petroleum Corporation (NNPC) chief, who is also minister of state for oil, was quoted as saying in the statement issued by the state oil company.

Africa’s biggest economy has been hit hard by the sharp fall in global oil prices because it relies on crude exports for around 70 percent of government revenue.

NNPC spokesman Garba Deen Muhammad said exploration in the region was intended to “add value to the hydrocarbon potentials of the Nigerian inland basin, provide investment opportunities, boost the economy as well as create millions of new jobs”.

 

 

(Reporting by Camillus Eboh and Alexis Akwagyiram, editing by David Evans)

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World Bank and Nigerian president discuss the country’s economic crisis

Comments (0) Africa, Business, Latest Updates from Reuters

ABUJA (Reuters) – The World Bank held talks with the Nigerian president on Wednesday on how it could help Nigeria overcome an economic crisis caused mainly by a sharp fall in crude prices eating into its oil revenues.

On her second day of meetings with Nigerian officials, World Bank Managing Director and Chief Operating Officer Sri Mulyani Indrawati met President Muhammadu Buhari, who plans to stimulate the flagging economy with a record 6 trillion naira ($31 billion) budget.

Nigeria will have to borrow 1.8 trillion naira from abroad and at home to help fund the budget, which has been delayed by several months and wrangling with parliament, if it goes ahead.

Although Nigeria has held talks with the World Bank over a possible loan or credit facility in recent months, Indrawati did not address this when speaking to reporters after the meeting.

“We would like to know how we can help Nigeria to make the very important decisions, whether on micro economic policy and other sectoral policy, that will make this economy move forward to become a strong middle income country,” she said.

Indrawati, who met Finance Minister Kemi Adeosun on Tuesday, said she and Buhari discussed the government’s “commendable goals to improve tax collection and crackdown on corruption.

Nigeria’s economy, the largest in Africa, grew by 2.8 percent last year, its slowest pace since 1999.

 

(By Felix Onuah. Writing by Alexis Akwagyiram; Editing by Raissa Kasolowsky)

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