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One week after approving controversial N22.7trillion ‘Ways and Means,’ Buhari back to Senate with $800million loan request

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Exactly one week after it approved a whopping N22.7trillion ways and means loan, borrowed from the Central Bank of Nigeria (CBN), President Muhammadu Buhari returned to the Senate on Wednesday, this time seeking for approval of a fresh $800million loan.

A lot of dusts had been raised by stakeholders, who carpeted the ease with which the President’s request sailed through the Red Chambers of the National Assembly, with many analyst, calling it an illegal act for the lawmakers to give official seal to the indiscriminate Ways and Means, which allows the government to borrow from the apex bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits, despite a provision in the law that put a ceiling to it.

Regardless, the President, who is currently in the UK attending to his teeth, in a letter read by Senate President Ahmad Lawan at plenary, said the loan, which would be sourced through the World Bank, would be utilised to scale up the National Social Safety Net Programme.

The Senate, had last year thrown out the President’s request to securitise the loan when the proposal was brought by the President, citing a lack of details, but a further pressure was mounted when it was again re-presented, with Buhari appealing to the lawmakers to to reconsider its stand, as failure to grant the approval would cost the government about N1.8tn in additional interest in 2023.

The Senate Leader, Ibrahim Gobir, who led the Senate in the debate for the approval of the Ways and Means on Wednesday, explained that part of the money was given as loans to states.

Gobir added that the Special Committee set up by the Red Chamber to scrutinise the fiscal document, put up the report after ‘critical analysis and review of submissions made by the Federal Ministry of Finance, Budget, and National Planning; and the CBN

The Senate Leader said the panel discovered that the Ways and Means balance was initially N19. 3tn (N19.326,745,239,660.20) as of June 30, 2022 but later grew to N22.7tn (N22,719,704,774,306.90 ) as of December 19, 2022 as a result of financial obligations to ongoing capital projects and additional expenditures which includes domestic debt service gaps and interest rate.

He noted that the Senate on Wednesday, December 28, 2022, approved the sum of N819,536,937,813 from the N1tn additional request made by the president leaving an outstanding balance of N180.4bn being the accrued interest on the sum.

Gobir further stated that the House of Representatives had earlier approved the additional N1tn Ways and Means Advances requested by the President to enable the smooth implementation of the supplementary budget.

Gobir said, “Part of the Ways and Means monies were given to State Governments as loans to augment budgetary shortfall in their various States.

“Most of the requests for funds for an increase in Ways and Means were made to Mr President on the need to finance the budget due to revenue shortfall. Such requests were either made by the Hon. Minister of Finance, Budget and National Planning or the Central Bank Governor.

“The Federal Government as a result of revenue shortfalls occasioned by the COVID-19 pandemic and low oil prices, relied heavily on the Ways and Means to finance its budget deficit to keep the country working for the people.”

The Senate leader added, “The monies received by the Federal Government were actually used for funding critical projects across the country.

“That due to the serious shortfall in Government Revenue, the Federal Government in order for the economy not to collapse, was compelled to borrow repeatedly from the CBN, exceeding the 5 per cent threshold of the prior year’s revenue as stipulated by the CBN Act, 2007.

“That the Federal Government through the Ministry of Finance, Budget, and National Planning has concluded plans to convert the CBN loans to tradable securities such as treasury bills and bond issuance.”

Gobir said the Senate Special Committee after exhaustive deliberations, recommended among others, the restructuring of N22.7tn for Ways and Means Advances be approved because the advances were made to ensure that the government does not shut down.
The panel further sought the approval of the Senate for the sum of N180.4bn being the balance of the supplementary budget and the interest accrued on the Ways and Mean Advances.

Other recommendations were, “If there is a need to exceed the five per cent threshold of the prior year’s revenue, recourse must be made to the National Assembly for approval.

“The Federal Government should begin the process of recovering the portion of the Ways and Means given as the loans to State Governments as further deferment of the repayment of the loans by the States will not be healthy for the economy.

“The Federal Government through the Ministry of Finance, Budget and National Planning should expedite action on the repayment of the loans through treasury bills and bond issuances.

“The National Assembly will not condone future increases in the Ways and Means without seeking the approval of the National Assembly.”

Meanwhile, the Senate President, Ahmad Lawan, after the approval of the fiscal document, noted that the Ways and Means Advances was a global practice.

He, however, faulted the process adopted by the executive arm of government which failed to carry the National Assembly along while accumulating a huge amount of loans.

Lawan added that the Senate had to pass the Ways and Means Advances so that the federal parliament would be able to consider and pass the 2022 Supplementary Budget still pending before the two chambers.

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Speak now! Catholic priests want Kaduna gov’s reaction to El-Rufai’s Islamisation comments

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Uba Sani, must either officially distance himself or affirm the declaration of his predecessor Nasir El-Rufai that Muslim-Muslim executive branch leadership, have come to stay or stand up to denounce it immediately.

These were the demands from Catholic priests in parts of the North, who as they expressed disgust at the statement, which showed the former governor captured in a video, which went viral last week, practically celebrating the continuation of an arrangement, which he first introduced in 2019, and which has now been sustained with the new governor having a Muslim deputy.

Clerics from Kaduna, Kafanchan and Zaria chapters of the Nigerian Catholic Diocesan Priests Association (NCDPA), in a public letter to Sani, urged him to declare his position on what they described as political supremacism in Kaduna state and Nigeria, as part of their reactions to the video, which has raised a lot of dust.

El-Rufai, who in his speech to Muslim clerics in the state, had recounted how after instituting an all-Muslim executive in the state himself and made it permanent in the state, the arrangement was pushed through at the national level with the election of Bola Ahmed Tinubu and Kashim Shettima, as President and Vice President, respectively on the platform of the All Progressives Congress (APC).

Informing that while Nigerians were actually believed that religion was not the issue in pushing through with the ticket, when it was in fact the case, the former Governor, who spoke in Hausa, declared that the arrangement had come to stay and would last for the next 20 years at the initial stage after Tinubu, adding that the Christian Association of Nigeria (CAN), had been defeated by the outcome.

But an apparently thoroughly upset Catholic priests, in an open letter on Thursday, said: “Having soberly considered the contents and implications of such communication by a former state governor who is known to be your close ally, we feel compelled to write you, to know where you stand with regard to the commotions Mallam El-Rufai intends to propagate and perpetuate in our state,” the letter reads.

“We write you today because we are responsible stakeholders in the affairs of our beloved state with our own congregations and followers. Mr governor, we do not intend to conclude that you are in agreement with all the content of the former governor’s utterances, as you have given no explicit reason to suggest so (yet), even though you were present at the occasion! We therefore earnestly expect your direct official reaction to the utterances of your predecessor in office.”

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Buhari spent more than $19billion on revamping four refineries without result – Nasarawa gov

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Barely two weeks after his exit, the records of former President Muhammadu Buhari, have come to to the fore with one of them indicating a damning verdict, as he was said to have sunk a whopping $19billion in trying to rehabilitate the nation’s four refineries, without anything to show for it.

Abdullahi Sule, Governor of Nassarawa State, who used the former President abysmal failure to make a case for supporting the removal on petroleum products, compared the huge wastage to the amount Dangote refinery, cost to give Nigeria a facility with the single chain production in the world.

None of Nigeria’s four refineries, located in Kaduna, Port Harcourt, and Warri is currently operational despite the huge amount sunk to resuscitate them, most of the funds borrowed from foreign lending agencies, the latest being the securing of $1.5million loan for that of Port Harcourt.

Bemoaning the situation, the governor, said: “Look at how much the President Buhari administration spent on fixing the refineries. In the eight years, he spent more money than the $19 billion that Dangote spent in building a refinery. That is one and a half times the size of our three refineries combined.”

A guest on Sunrise Daily, a breakfast programm of Channels Television on Thursday, Sule, pinned the payments of subsidy on Nigeria’s non-functional refineries, adding: “From the government side, I think we didn’t do a good job. When the (former) President (Buhari) came in in 2015, prices of crude oil dropped by less than 30 dollars. At that time, there was zero subsidy.

“Our three refineries in Nigeria today have a total of 450,000 barrels per day, Dangote is 650,000. He spent $19 billion on building it. We spent, not building a new one, but in maintaining these refineries; more than $19 billion in eight years, yet they have not been maintained.”

The Dangote Refinery, Africa’s biggest oil refinery, which took off in 2017, drew Nigerians and global personalities in different fields of life, including four African Presidents at its commissioning on May 22, 2023 by Buhari.

Sule, who also lamented the complexity of maintaining the refineries due to their diverse components, added: “The refinery is actually a component for water, crude, and diesel, about five or six different components that constitute a refinery. The moment the government says we are going to spend $2 billion this year on the refinery. The $2 billion is spent and as far as the President is concerned, they have given $2 billion.

“Now when it goes to the three refineries that we have in Port Harcourt, Warri, and Kaduna. Then they say, you now take $700 million, you now take $800 million – by the time they take that, it goes to fix maybe only one component out of the four components that are all bad. The ideal resolve would have been to allocate the major funds to one of the refining states to fix it totally before allocating the remainder to the other states.

“So, zero work is done. These are the true realities of what is happening, and that is why none of the refineries is working. These are truly the problem, we have not really managed this thing well.”

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Japan goes tough on asylum seekers, enacts new law to check abuse

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Despite desperate attempts to block it, including a ruckus, which broke out in parliament Japan went ahead on Friday to enact an immigration law that would see the government deporting failed asylum seekers, even with members of civil society, joining in the pushback.

The law gives refugees only three chances to try after which they would face deportation, unlike before when applicants could stay in Japan during the decision process, regardless of the number of attempts they made to secure refugee status, reports, say.

The revised law will “protect those who must be protected while strictly dealing with people who have violated rules. There are many people who misuse the application system to avoid deportation,” Justice Minister Ken Saito, was quoted as saying, adding that this had persisted even when such people were not fleeing danger or persecution.

Last year, Japan accepted just 202 refugees out of some 12,500 applicants, and separately allowed 1,760 people to remain in the country due to “humanitarian considerations,” including more than 2,400 evacuees from Ukraine under a different framework.

Activists staged rallies against the revised law, but a protest from the opposition bloc in parliament was voted down by the ruling coalition, which holds a commanding majority.

“It is intolerable to deport people, even if they have criminal records, to countries that may violate their human rights” and where “their life and freedom would be in danger”, the Tokyo Bar Association said this week.

The ruling Liberal Democratic Party says the revisions will bring better access to medical care and accommodation options for people whose asylum applications are pending.

Japan’s immigration detention conditions have been under scrutiny since the 2021 death of Wishma Sandamali, a 33-year-old Sri Lankan woman.

Sandamali was not an asylum seeker but had been held for overstaying her visa after seeking police protection, reportedly to escape an abusive relationship.

Her family are seeking compensation of more than $1 million from the government over her death.

Sandamali reportedly complained repeatedly of stomach pain and other symptoms, and campaigners allege she received inadequate medical care.

Controversy and political pressure over the incident led ruling lawmakers to drop a push to enact similar legal changes to immigration rules two years ago.

Shoichi Ibusuki, a lawyer for Sandamali’s family, told AFP on Thursday that the revised bill was “equivalent to having a button to execute those who seek refuge by deporting them”.

“Japan’s refugee recognition system is not working,” he said, with officials turning down applications quickly, sometimes without face-to-face interviews.

Amnesty International also said in March that Japan should scrap the proposed revision to immigration laws, calling the country’s detention policies “harsh” and “repressive.”

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