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How Kano market unions pocket cattle tax

Editorial
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How Kano market unions pocket cattle tax

By Shamsiyya HAMZA

IN Kano State, the economic capital of northwestern Nigeria, market unions charge N500 tax per week for every piece of cattle transported into any market. But they only issue a receipt for a N200 ticket per cattle. The state government says that nothing from the N500 collected on each cattle goes to its coffers.

Investigations show that local governments collect N200 on each cattle head, leaving the remaining N300 for market unions.

The situation is typical of several markets across Nigeria where accountability and transparency about taxes and levies are low.

Wudil International Cattle Market is a major example. It attracts 5,000 heads of cattle each week, being the largest cattle market in the state. Every Friday, traders come from different parts of the state and beyond to buy or sell cattle, paying N500 for each cattle they bring into the market.

This amounts to N2.5 million each week, N10 million per month and N120 million every year.

Since the state government is not involved in this cattle tax, it leaves the entire money collected to Wudil Local Government Area and the cattle market union.

The director of Budget and Planning Abdulmuminu Ajumawa, who handles revenue-related issues in Kano state, confirmed to the reporter that the state government does not collect cattle tax from any of the market in the state.

“For now, we are not yet looking at that area of taxing cattle herders in the state,” he said.

Based on what is printed on the receipt given to traders and seen by the reporter, Wudil Local Government Area gets N200 per cattle each week, N1 million for 5,000 heads of cattle per week, N4 million each month and N48 million each year.

On the other hand, the market union receives N72 million out of the N120 million collected annually from cattle traders but there is no receipt for this or any form of accountability as the union does not have to answer to anyone, not even the state government for the money so earned.

The head of the Wudil Cattle Market, Kabiru Umar Faruk, said the market survives on the tax, noting that the state government does not provide any support to it. He denied that the market union pockets the money but said the tax is used to maintain the international market.

“The state government does not really give us anything. The extra N300 we collect is meant to be used for the market, which is what we are using the money for.

“We use it to maintain the market, provide security, keep it clean and take care of other emergencies,” he said.

The chairman of Wudil Local Government Area, Bilkisu Yakubu Indabo, declined speaking after the reporter had introduced herself as a journalist. She simply said, “I am busy.”

Same story is replicated in other markets.

It is the same old story for Danbatta Cattle Market.

In 2020, Dambatta Cattle Market, alongside Wudil, got a slice of N300 million allocation by the Kano State government for the development of infrastructure in cattle markets across the state.

The state project coordinator, Ibrahim Garba Muhammad, announced this during the proposal opening for design and supervision consultancy for cattle markets on October 29, 2020, according to BusinessDay.

“The project will invest in infrastructure to provide loading and off-loading ramps, watering facilities, office space for market information, security and veterinary services, lighting for trade and security at night as well as toilet facilities,” Muhammad said.

Also in 2023, the commissioner for Agriculture and Natural Resources, Danjuma Mahmud, said the Kano State government was investing N600 million in cattle markets across the state.

Despite all the huge investments, the state government is curiously not interested in the tax potential in cattle business.

According to market unions, Danbatta Cattle Market plays host to 700 heads of cattle each week. Like in Wudil, traders pay N500 for each cattle brought into Danbatta market though they get a N200 receipt issued by the local council for each cattle. This amounts to N350,000 every week. With 52 weeks in a year, this amounts to N18.2 million every year.

Only N140,000 is returned to the local government area weekly, amounting to N7.38 million each year. This leaves N10.92 million in the hands of the market union.

However, Danbatta Local Government Chairman, Ado Muhammad said, “Yes, cattle tax is being collected here and the money goes into the local government purse, not the state government.”

He said he spoke on behalf of market leaders at Danbatta Cattle Market.

When asked whether he was aware that only N200 out of N500 is ticketed, he said: “All I know is that the market committee submits the money immediately after a day’s market. I am not aware of any other thing.”

The situation is the same at Bichi Cattle Market. Each week, traders bring in 700 heads of cattle into the market.

Like other markets, traders pay N500 for each cattle brought into Bichi Cattle Market. Yet again, only N200 receipt is issued for every piece of cattle brought into the market.

Hence this amounts to N350,000 every week and N18.2 million every year. However, only N140,000 is returned to the local government area weekly, amounting to N7.38 million each year. This leaves N10.92 million in the hands of the market union.

The head of Bichi Cattle Market, Kabir Abubakar Kabiru, denied pocketing the money but said part of the tax goes to the local government while the rest is used to maintain the market.

“The Kano State government is trying to modernise the cattle market. We relocated into a new place and only few heads of cattle are coming into the market square. We hope the market will be crowded as it used to be very soon.

“We collect N500 and send N200 to the local government. The remaining is used to provide security and maintain the market. We only maintain it on day-to-day basis from what we collect from cattle traders,” he said.

The chairman of Bichi Local Government Area, Ahmad Kado Bichi, said the cattle market is no longer as crowded as it used to be due to a recent market relocation but said, “we use all the taxes collected here formally and judiciously.”

At Kura Cattle Market, traders pay N500 for each cattle brought in. This amounts to N350,000 every week and N18.2 million every year. However, only N140,000 is returned to the local government area weekly, amounting to N7.38 million each year. Again, this leaves N10.92 million in the hands of the market union.

A member of the Market Board Committee at Kura Cattle Market, Bala Mai Unguwa, said, “Yes, of course, we collect cattle tax. We use the money to maintain the market and pay the Dustbin Committee. We spend the money on the market.”

The chairman of Kura Local Government, Yahaya Tijani Kura, denied knowledge of the cattle market despite being in the local council that he leads.

In defence of state government

Defending the state government, Kano State Commissioner for Information, Baba Halilu Dantiye, said no rule or law mandates the collection of cattle tax in the state. He said cattle tax is not the state government’s business but local government and market associations or unions.

“Market stakeholders and local governments or chairmen’s offices collect the tax for their personal interest. We do not collect it,” he said.

Cattle traders lament hardship

The cattle business in Nigeria has witnessed a lull due to the dwindling purchasing power of Nigerian consumers caused majorly by inflation. Nigeria’s inflation rate stood at 33.69 percent in April 2024 as against 22.22 percent in the corresponding period of 2023. On the other hand, food inflation stood at 40.53 percent in the same month as against 24.61 percent in April 2023, according to the National Bureau of Statistics (NBS).

This means that the purchasing power of Nigerian consumers has continued to be eroded by inflation.

Umaru Adamu, Sarkin Fulanin Giware at Danbatta Cattle Market, told the reporter that rearing cattle has become a difficult business due to lack of a hygienic environment, insufficient grazing areas and water.

“Cattle owners take a while before responding to us mostly in terms of food provisions to the cattle and their health or medication,” he said, noting that taxes should be much lower for cattle herder to enable them to sell their products.

Babangida Babangida, a cattle trader at Bichi Local Government Area, said a cattle owner can give out over 20 heads to a herder and would not have anything in return for over a year.

“The business is quite slow and players in the market should be supported, not taxed,” he said.

Adamu Badau, a trader at Wudil International Cattles Market, said that the business is becoming tougher, noting that only milk obtained from the cattle gives them hope.

“The only thing we gain from this business is the milk. We sell the milk and use the money as our salary or wages. You can spend over 20 years rearing cattle for the owner, but the owner can put you in jail at every slightest provocation – without considering the difficulties and challenges you face.

“They take us for granted like masters do to slaves. And if we are to told pay tax for the cattle, the owners should be in responsible for that. We keep and saves billions of naira for them but no rewards in return.”

Miyetti Allah speaks

A leader of Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN) in Kano State, Ibrahim Kwaikwai, said in most cases, cattle owners take the herders for granted.

“They take us for granted in terms of attending our meetings or while making relevant rules and regulations. The reason is most of the owners are government stakeholders and politicians,” he said.

He said cattle herders should not be taxed, stressing that the business is becoming tougher by the day due to several reasons ranging from environmental to social issues across Nigeria.

Resistance against herders

Nigerians have resisted herders through laws. Benue State under former Governor Samuel Ortom began the implementation of anti-open-grazing law in 2017.

The law bars herders from moving their cattle from one farm to another. The law gives them an option of ranching to minimize conflicts between herders and crop farmers.

Several states such as Edo, Ekiti, Taraba, Oyo, Bayelsa, and Ondo, among others, have also announced laws to bar open grazing in their domains.

In general, Nigerians vehemently refused former President Muhammadu Buhari’s Rural Grazing Area (RUGA), which was targeted at creating grazing routes in several states.
Due to its resistance, the Federal Government, in 2021, replaced RUGA with the Livestock Intervention Programme with a view to addressing the lingering farmer-herder crisis across the country.

The rationale behind the resistance is the mayhem unleashed on several states in Nigeria by herders under Buhari.

Herdsmen conducted 654 attacks, killed 2,539 and kidnapped 253 people in Nigeria between 2017 and May 2, 2020, according to a research report José Luis Bazán, an independent researcher and analyst, based in Brussels. Another report said over 6,000 people were killed in Benue State by herders between 2015 and 2023. Several farmers and communities were sacked by herders, with many killed under controversial circumstances. This has prompted communities to resist any attempt to cede their land to herders.

“We will not give our land to herders,” said late Ondo state governor, Rotimi Akeredolu, who was vocal about the activities of herders in Nigeria’s South.

Tax experts knock Kano government

A Lagos-based tax expert, Chinelo Adindu, said the Kano State government must take an interest the tax being collected from cattle owners or traders.

According to her, there is often going to be a foul play at the local government and the market union levels once the state government takes no interest in the tax.

“The system should be digitised. Handing them N500 every week for a piece if cattle is a recipe for corruption. Reduce human interference and allow people to pay the money into the bank or just through a digital process,” she noted.

A tax analyst, Ike Ibeabuchi, explained that Kano State government must call for an investigation into the cattle taxes collected from the markets in the last 20 years to identify how much has been lost to the unions.

“The state needs to change its strategy. Leaving millions of naira to market unions does not make any sense. There should be some level of accountability to the state, otherwise it will continue to be a jamboree.”

This report republished from Tozali was made possible with support from the International Budget Partnership (IBP) and the International Centre for Investigative Reporting under the Tax Justice Reporting Project.

Emirates tussle: Yusuf appoints three 2nd class emirs in Kano

Bankole ABE
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Emirates tussle: Yusuf appoints three 2nd class emirs in Kano

 KANO State Governor Abba Yusuf has approved the appointment of three second-class Emirs for Rano, Gaya and Karaye emirates.

According to a statement issued by the spokesperson to the governor, Sanusi Bature on Wednesday, July 17, the appointment takes immediate effect.

This came a few hours after Yusuf signed the Kano State Emirate Council Establishment Bill 2024 into law.

The legislation, passed by the State House of Assembly, aims to bridge the gap between the grassroots and the government while sustaining the rich cultural values and norms of the Kano people.

The new law establishes second-class Emirate Councils in Rano, Gaya, and Karaye, each responsible for specific local government areas.

According to the governor, the emirate councils will have powers to advise the Emir of Kano on matters related to the maintenance of public order and boundary disputes within their jurisdictions.

The newly appointed emirs are:

  • Muhammad Mahraz Karaye, as Emir of Karaye (who until his appointment was the District Head of Rogo)
  • Muhammad Isa Umar, as Emir of Rano (who until his appointment, was the District Head of Bunkure)
  • Aliyu Ibrahim Abdulkadir Gaya, as Emir of Gaya (who was the emir of the defunct Gaya emirate)

Yusuf congratulated the new emirs and urged them to be custodians of culture, peace and unity of the people in their respective emirates.

The ICIR reported on Tuesday that the State’s House of Assembly passed the Kano State Emirates Council Establishment Bill 2024 to establish 2nd class emirates in the state.

According to the bill, the Rano Emirate consists of Rano, Bunkure and Kibiya Local Government Areas. Gaya Emirate has Gaya, Albasu and Ajingi LGAs, while the Karaye Emirates comprises Karaye and Rogo LGAs.

According to Section 3 of the bill, the governor, acting through the commissioner for local governments, will approve nominations and actions made by first-class and second-class emirs.

The creation of the first-class Kano emirate and second-class emirates is contained in Section Four (1) of the bill. The second-class emirs of Rano, Gaya, and Karaye are listed in subsection two.

The ICIR reported on May 23, that the Kano State House of Assembly dethroned the state’s five emirs, after repealing the Emirate Council Law of 2019 that created the five emirates.

The new law created by the lawmakers revived the single emirate system in the state, vesting constitutional powers to appoint a new emir in the state governor alone.

Consequently, the governor, on Thursday, May 23, announced the reinstatement of Muhammadu Lamido Sanusi as the Emir of Kano.

The governor made the announcement immediately after assenting to the new Emirate Bill.

Sanusi’s reinstatement has led to crises in the state with the deposed emir, Aminu Ado Bayero refusing to quit.

Backed by conflicting court’ rulings, the two leaders have maintained their stance on holding on to the throne.

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The latest of such rulings was from a Kano State High Court which ordered Bayero to stop parading himself as the Emir of Kano.

The court, in a judgement by Amina Aliyu, on Monday, July 15, also barred four other deposed emirs from posing as the emirs of Bichi, Rano, Karaye, and Gaya.

According to the court’s ruling, they should return the government’s moveable and immovable items in their custody.

 

 

 

EXCLUSIVE: ICPC probes deputy rector’s ‘fraudulent’ employment, imposition

Mustapha USMAN
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EXCLUSIVE: ICPC probes deputy rector’s ‘fraudulent’ employment, imposition

THE Independent Corrupt Practices and Other Related Offences Commission (ICPC) is investigating allegations of fraudulent employment and improper imposition of one Sunny Ewan Aigbomian, a doctor, as the deputy rector of the National Institute of Construction Technology and Management (NICTM) Uromi, Federal Polytechnic. 

The allegations were contained in a petition sent to the commission by a whistleblower in the polytechnic, on March 5, 2024.

The commission’s spokesperson, Demola Bakare,  confirmed to The ICIR that the petition had been forwarded to the National Board for Technical Education.

He noted that the case was under investigation and the NBTE was duty-bound to brief the commission on the outcome of its findings.

Meanwhile, The ICIR could confirm that the NBTE was at the Federal Polytechnic Uromi, on April 24 and 25, on the issue and interviewed concerned persons, including our source.

Speaking on the update on the NBTE investigation, Bakare added that: “A request for a status report/brief will be sent” to the board.

Petition details

In the petition, exclusively obtained by The ICIR, the petitioner  highlighted a series of alleged irregularities surrounding Aigbomian’s rapid elevation within the academic hierarchy.

 

Petition addressed to the ICPC on alleged fraudulent employment, imposition of deputy director
The petition, addressed to the ICPC on alleged fraudulent employment, imposition of deputy director at NICTM.

The petition, addressed to the chairman of the ICPC, Musa Adamu Aliyu, noted that Aigbomian was hastily employed and subsequently appointed as Acting Rector without following due process, which includes mandatory advertisement and a proper selection process. 

The appointment, according to Okojie, was made towards the end of the tenure of the outgoing Rector, Onohaebi, a professor, to clean his alleged mess after the expiration of his tenure.

The petition, addressed to the ICPC on alleged fraudulent employment, imposition of deputy director at NICTM.
The petition, addressed to the ICPC on alleged fraudulent employment, imposition of deputy director at NICTM.

“On the verge of Prof. Onohaebi’s tenure expiration as Rector of the Institute (NICTM Uromi), for eight (8) years, specifically on July 26th, 2022, they hurriedly did a fake interview, and employment without advertisement (negating the due process) in favour of Dr. Sunny Ewan Aigbomian within two days and made him Acting Rector, a position he occupied for six months which the council chairman and our outgone rector used to cover their frauds and he continued on the illicit acts which have affected the school negatively.”

Okojie also alleged that Aigbomian was employed and given a new appointment letter in 2022, placing him at step 9 level 7 instead of step 9 level 1. He noted that ideally, he should have lost steps and levels since he was transferring from a state to a federal polytechnic under the federal civil service of Nigeria.

“Furthermore, he ought to be on probation for two (2) years before holding any office as stipulated in the conditions of service, yet he was imposed to act as Acting Rector just to cover up and extend all their fraudulent activities.”

Photograph of Sunny Ewan Aigbomian
Photograph of Sunny Ewan Aigbomian. Photo; NICT website

The ICIR gathered that as stipulated in the Polytechnic Act, the appointment of a deputy rector involves the rector nominating a candidate, and or followed by a vote by the academic board constituted for that purpose, and subsequent ratification by the council.

Although Aigbomian was consequently elected by the academic board, defeating his counterpart, a chief lecturer, it was said that he did not qualify for nomination in the first place.

With the initial absence of a governing council due to the dissolution of the existing one by President Bola Tinubu, the emergence of Aigbomian could not be thoroughly checked and investigated.

Furthermore, the petition alleged that Aigbomian’s promotion from Assistant Lecturer to Chief Lecturer occurred within an unprecedented span of 10 years, which he said was shorter than the required 18 years. 

The petitioner noted that he lacked the requisite number of publications and academic contributions typically needed to attain such a position. 

“Contrary to promotional career progression he unethically rose from assistant lecturer to chief lecturer within 10 years instead of 18 years, he has no mandatory stipulated numbers of publications that earn him the exalted position of the chief lecturer as he is made to claim. Neither does he have the requisite seventeen published journals and authored or co-authored textbooks to merit him chief lecturer,” the petition added.

Concerning Aigbomian’s alleged rise to chief lecturer, The ICIR spoke with a lecturer from a state polytechnic, who claimed that it’s quite impossible for a lecturer who started as an assistant lecturer to make it to chief lecturer within 10 years.

“As we speak the new Rector and some cabals within and outside the school are head-bent on making him the deputy Rector to enable him cover the loophole of all traces of financial impropriety and improper placement of human capital done against the institute and the state, the federal civil service rule and the polytechnic Act of 2019,” the petition added.

The petition, therefore, called for Aigbomian’s dismissal, a refund of all allegedly illegally earned salaries, and an end to his self-declaration as Deputy Rector.

 It also urges the ICPC to investigate the roles of principal staff members, including the Rector, Registrar, Bursar, and Librarian, in the matter.

Meanwhile, when The ICIR contacted Aigbomian on WhatsApp regarding the allegations in the petition, he declined to speak, noting that the medium of communication was not proper.

The ICIR had initially tried to reach him via a phone call, but his line was busy, so a message was later sent to him via SMS.

“The message you sent to me l know is an official matter and as such should be communicated in that regard to enable me to respond officially. This medium of communication is not known to Law. Thanks and God bless you. Dr S. E. Aigbomian.”

When The ICIR requested his email address for official communication as he had suggested, he did not respond despite reading the message.

IoCs exit, divestment hurting Nigeria’s oil production -Ex-MOMAN chairman

Harrison EDEH
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IoCs exit, divestment hurting Nigeria’s oil production -Ex-MOMAN chairman

A FORMER chairman of the Major Oil Marketers Association of Nigeria (MOMAN) and the chief executive officer of 11 PLC-formerly Mobil Nigeria PLC, Adetunji Oyebanji, in this exclusive interview with  The ICIR, speaks on a wide range of issues affecting Nigeria’s oil and gas sector.

Excerpts:

The ICIR: Do you see the Dangote refinery emergence disrupting the market with the NNPCL price-control regime? 

Adetunji Oyebanji: Dangote is a businessman, who has borrowed and invested money to build the refinery. He has to pay back the loans he has taken. He would also try to protect his interests. He’d be selling at the profit and commercial level needed to maximise his returns and liquidate the loans and investments that he has made.

What that translates to by way of pricing I cannot say for now. I can only speak for myself and my association. Business wise, whatever price we buy, would be reflected in the prices we sell at the pump.

The good thing is to know that with the Petroleum Industry Act (PIA), the price has been deregulated. We would sell according to what we buy.

On the Nigeria National Petroleum Company Limited-NNPCL, I won’t want to make any speculation, even though commercially, you look at the price they’re selling and you can judge whether it’s a price that makes economic sense.

Adetunji-Oyebanji-Former MOMAN Chairman
Adetunji-Oyebanji-Former MOMAN Chairman

The ICIR: Why is the NNPC seeking to borrow money when they could have gone listed and sourced the fund from the stock market? 

Adetunji Oyebanji: Enlisting in the capital market is very important, that’s what I thought they said they wanted to do as spelt out by the Petroleum Industry Act (PIA).

The only thing I worry about in this development is that if local refineries are coming up more and more, and they’re doing crude-for-loan or crude-based loan swaps; then it means more and more of limited crude production in Nigeria.

The only thing I worry about in this development is that if local refineries are coming up more and more, and they’re doing crude-for-loan or crude-based loan swaps; then it means more and more of limited crude production in Nigeria.

It also means that more of our crude will be committed to more and more in servicing those loans at the expense of the refineries that are coming up.

Again, what I would say is that any refinery across the world knows that one of the fundamental things is securing long-term contracts for your crude.

So, these International Oil Companies-(IOCs) ) have long-term contracts that they’ve signed with various refineries across the world. Therefore, when anybody wants to establish a huge refinery in Nigeria, one of the things Perry must do is to secure a long-term contract for your crude supply.

This is because, if Nigeria is producing 1.2 million barrels per day and half of it has been committed by taking loans and using crude to settle such loans, the NNPCL and IoCs own some portion.

The crude is limited and if the IoCs have entered into contracts, they’re fulfilling those contracts and may not have available crude to give.

Commercially, anyone who builds a refinery would know that you have to make arrangements for your crude. That is why some refineries are situated close to the oil field so that they can guarantee their crude.

In Nigeria, we always want to do things based on emotions and that’s why we don’t always have positive results.

The other point you have to note is that across the world, there is a certain number of refineries that exist. Presently, there’s an overcapacity of refineries. Less we forget, some countries are now using electronic vehicles.

The long-term prospects of electronic vehicles are that demand for refined petroleum products in the next 20 years will significantly drop.

Also, as a result of these, many IoCs that based their long-term plans on data and research are downsizing and reducing their capacity so,15 years from now, they won’t be caught in the mix of clean energy.

People need to know all these things and be educated about them so that we’re not all driven by sentiment. We should also ask fundamental economic questions to form opinions about various situations.

Concerning your question, normally, a refinery will sign a 20-year contract to guarantee themselves a steady supply of crude.

Already, many of the IoCs have such contracts and sell their crude as it comes and what quantity the Nigerian state allows it to produce according to the commitments they have already made.

So, the result is that if we harass them, the few remaining in Nigeria could leave and our oil production will drop significantly.

It’s even because of the IoCs that are producing oil at a higher level that we’re able to produce 1.2 million barrels per day. We say it doesn’t matter when the IoCs leave, they left and indigenous people took over and our production is dwindling and this is the main source of our foreign exchange for Nigeria.

When there’s no dollar, nobody should ask where is the dollar because maximum oil production is the building block to make more dollars.

If for instance, we’re doing about 4 million barrels per day, the naira may be exchanging at N300/$. We are producing less and and it’s not helping our foreign exchange earnings. We have been deceiving ourselves for far too long now.

The ICIR: There are concerns that the PIA has not fully served its purpose of reviving the sector. Should it be reviewed?

Adetunji Oyebanji: No law can be perfect. Also, the laws are not always about itself, it’s about how it’s implemented.

The cardinal point that the law envisaged is that prices would be deregulated. So, it seems that we’re not able to achieve that at this point and that’s distorting lots of things.

No law can be perfect. Also, the laws are not always about itself, it’s about how it’s implemented.

If a market is to work efficiently, it means that the real prices have to be reflected. For now, the price is pegged and not the real market price. If we say that prices will be too high and we choose to go the route that we’re going, then we cannot run away from the implications of not following through with the law.

The PIA can always be improved and updated, I know that of a certainty, some people are pushing for amendment now. However, for me, part of the problem was that the PIA was envisaged to work in a particular way, but we’ve not implemented it according to the letters of the law.

What you mentioned about the NNPCL going for an initial public offer at the capital market was part of what was envisaged in the PIA.

Again, I can’t speak on behalf of the NNPCL, they know their internal workings and it could be that there are challenges and they’re working on it.

However, if you pass a law and it’s expected to work in a particular way and that’s not happening, the results you get are not what you’re expecting because you can’t plant beans and expect plantain.

The ICIR: How can the NNPCL leverage its opportunities to enable the oil sector maximise gains? 

Adetunji Oyebanji: The first step for me is to implement the PIA, even if it means a slight amendment.

The big deal is that when you make an organisation like NNPCL fully commercial, then it’s the shareholders that will determine what happens. They will be having an annual general meeting, get approval from the board for certain key decisions and run like a business corporation.

The implication of that in our environment is that it doesn’t become an avenue for political appointments. It’s purely based on competence and commercial purposes.

As I said, if we don’t follow those principles, we shouldn’t expect good results.I think the first thing is to implement the law that we have passed fully. All these ‘no more subsidy’ and yet there is a subsidy from the backdoor doesn’t help us.

Let’s discuss with stakeholders and do whatever is necessary to ensure that labour and other parties are carried along so that the system is not disrupted.

It took 20 years to pass that law; all because of politics. The regulators are trying the best they can under some circumstances and we have our constraints as a country.

The ICIR: The IOCs are leaving, what does it mean for our budget since we’re not meeting our quota? 

Adetunji Oyebanji: We must bear in mind that the investor, whether IOCs or indigenous firm have their strategy and choice of investing their money.It is like choosing a supermarket or a petrol station to buy your products.

If you go to a particular supermarket and the cashier there is not behaving well, won’t you carry your business and go elsewhere?

All these interactions with agencies and not getting things done unless you push it with some corruption fund are not helping us.

One key fact is that the IoCs are always very keen on cash-call obligations fulfilment with the NNPCL. If they do business in 2022 and don’t get the money now from NNPCL, they may have to go to another country where they will get their returns quickly and with better fiscal incentives for their business.

The ICIR: Why do the IoCs keep leaving divesting? 

Adetunji Oyebanji: Some of the IoCs are leaving because of of the defaults and the way we are implementing the PIA.

Some of the IoCs are leaving because of of the defaults and the way we are implementing the PIA.

The indigenous operators are trying but the requirements for upstream activities are humongous. Even our banks don’t have the necessary wherewithal. The only people that our banks are willing to give billions of dollars to are the IoCs that have huge assets and operations globally.

The IoCs when they’re leaving, the indigenous people don’t have the capacity either by manpower or by resources to be able to operate those oil fields at the optimum level like the IoCs- hence production in some cases is falling.

Some of our best indigenous people are doing 50,000, 20 000 barrels per day. However, when you compare them with IoCs running billions of dollars worth of investments, you know that there is no comparison.

Countries that want to partner with such IoCs must make fiscal terms and tax regimes favourable such that big IoCs will be attracted to them.

All these are simple economic and business realities, but in Nigeria, our own is to say God will do everything.

The ICIR: Are there other concerns that you have about crude-for-loan-swap deals? 

Adetunji Oyebanji: Well, the more such swap deals, the more you’ve encumbrances and commitments of the crude oil in one way or the other. Most of these things are not also open, we need not also to be speculative in matters like this. I rarely can’t say much because I don’t know the current status.

The ICIR: What are the key benefits of the government facilitating the transition to Compressed Natural Gas-CNG as  alternative to PMS? 

Adetunji Oyebanji: I think a lot of positive things are happening and NNPCL has used a unique model while working with partners to build the CNG facilities.

You saw recently where several facilities were launched in Abuja and some in Lagos. I think that is a step in the right direction.

A lot still has to be done and we’re still scratching the surface because you have to make the products available at reasonably competitive prices. We started well and the NNPCL needs to continue reading the bar to the level that it becomes a viable alternative to petrol so that people will have an alternative usage from petrol.

The ICIR: Any end in sight to the queues currently being witnessed in several parts of the country? 

Adetunji Oyebanji: Based on what we receive from NNPCL, we are doing our best. We can only sell what we receive and we’re doing our best to pump it out. I hope in the coming days, things can normalise. If there are other entities involved in the process, this question of logistics being mentioned every day may not affect all players. Since NNPC is the sole importer, we the marketers are giving what is available.

FAAC allocation to tiers of government rises to N1.35trn in June

Ehime ALEX
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FAAC allocation to tiers of government rises to N1.35trn in June

THE Federation Accounts Allocation Committee (FAAC) shared N1.35 trillion among the three tiers of government in June 2024 out of a gross revenue of N2.48 trillion.

The director of press and public relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, disclosed this in a statement on Tuesday, July 16.

He stated that the revenue was shared at the July 2024 meeting of the FAAC held in Abuja and chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

He said a communiqué issued by FAAC contained that the N1.35 trillion allocation comprises N142.51 billion from statutory revenue, N523.97 billion from value-added tax (VAT), N15.69 billion from electronic money transfer levy, N472.19 billion from exchange differences, and an augmentation of N200 billion.

The sum of N92.11 billion was deducted for the cost of collection while N1.03 trillion for transfers, interventions, and refunds.

A gross statutory revenue of N1.43 trillion was received in June, higher than the N1.22 trillion received in May 2024.

Also, a gross revenue of N562.69 billion was available from VAT in June, higher than N497.67 billion in May.

From the N1.35 trillion distributable revenue, the federal government got N459.78 billion, state governments, N461.98 billion, and local government councils, N337.02 billion.

States benefiting from derivation received N95.59 billion, representing 13 per cent of mineral revenue.

FAAC also shared N142.51 billion distributable statutory revenue. The federal government received N48.95 billion, states, N24.83 billion, and LGAs N19.142 billion while N49.59 billion, representing 13 per cent of mineral revenue, was shared to states benefiting from derivation revenue.

From the N523.97 billion distributable VAT revenue, the federal government received N78.59 billion, states N261.99 billion, and LGAs areas N183.39 billion.

The N15.69 billion obtained from the money transfer levy was shared to the federal government N2.35 billion, states N7.85 billion, and LGAs N5.49 billion.

Also, from the N472.19 billion exchange differences, the federal government got N224.51 billion, states N113.88 billion, and LGAs N87.79billion with N46.01 billion representing 13 per cent of mineral revenue going to the mineral derivation benefiting states.

The N200.000 billion augmentation was shared with the federal government N105.36 billion, states N53.44 billion, and LGAs N41.20 billion.

In June 2024, there were significant increases in companies’ income and VAT, with marginal increases in Import and excise duties and EMTL, FAAC disclosed.

Revenues from royalty crude, petroleum profit tax, rentals, and CET levies declined as FAAC added that $473,754.57 is the balance in the Excess Crude Account (ECA).

The June FAAC allocation comes amid the Supreme Court ruling granting local governments autonomy as states had hitherto been interfering with their funds.

In a judgment passed on Thursday, July 11,  the apex Court held that funds meant for the LGAs be paid directly into their accounts, ruling that it was unconstitutional for the state governments to manage allocations belonging to the LGAs.

IMF cites weak economic activities, downgrades Nigeria’s economic growth to 3.1%

Harrison EDEH
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IMF cites weak economic activities, downgrades Nigeria’s economic growth to 3.1%

THE International Monetary Fund (IMF) has downgraded its forecast for Nigeria’s economic growth in 2024 to 3.1 per cent.

The global lending body cited weaker growth recorded in the first quarter of the year, (Q1) 2024.

The new forecast was contained in the July 2024 World Economic Outlook of the IMF released Tuesday, July 16.

The downgrade represents 0.2 percentage points below the earlier forecast of 3.3 percent.

Also, it followed weaker-than-expected gross domestic product-(GDP) growth recorded by the country in the first- quarter of 2023.

Nigeria has been experiencing weak growth with the latest inflation figure of 33.95 released by the National Bureau of Statistics (NBS), revealing no end in sight.

To worsen the concerns, macroeconomic indicators like the high cost of transportation, insecurity in Nigeria’s food belt, and high energy costs have continued to slow down growth.

Data from the NBS showed that Nigeria’s GDP growth dropped quarter-on-quarter (QoQ) to 2.98 percent in Q1’24 from 3.46 per cent in the fourth quarter of 2023, (Q3’23)

The IMF, however, retained its 3.0 percent forecast for Nigeria’s economic growth in 2025.

As a result of the lower forecast for Nigeria’s economic growth, the IMF also downgraded its forecast for Sub-Saharan economic growth in 2024 to 3.7 percent from the April WEO forecast of 3.8 percent.

Nevertheless, it raised the economic growth forecast for the region in 2025 to 4.1 percent from 4.0.

“The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year,” the IMF said.

The ICIR  reported that IMF has upgraded Nigeria’s economic growth to 3.3 per cent in 2024 from 3.0 per cent.

The Bretton Wood Financial Institution earlier gave the upward review in its latest forecast released on July16.

Why July inflation will increase despite rice palliative, import-duty incentives

Ehime ALEX
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Why July inflation will increase despite rice palliative, import-duty incentives

THERE are huge concerns that macroeconomic fundamentals are revealing that Nigeria’s inflation figures for July will be much higher than what was reported in June.

This is expected to worsen the citizens’ suffering as the 150-day import duty-free incentive and 20 truckloads of rice to each state and Federal Capital Territory are not expected to cushion rising food prices as they are knee-jerk and not a long-lasting solution.

On Monday, July 15, the country’s National Bureau of Statistics (NBS) released the July inflation figures, reporting that headline inflation rose to 34.19 per cent in June from 33.95 per cent in May.

Food inflation, the major driver of the pressure, increased to 40.80 per cent in June from 40.33 per cent in May.

According to the NBS report, the inflation figures increased on a year-on-year and month-on-month basis.

Garri, yam, groundnut oil, palm oil, and millet were items that spiked the rise in food inflation while meat, eggs, and chicken that contain protein were absent from the food items.

At 34.19 per cent, Nigeria’s inflation is now at a 28-year high and has increased for 19 months consecutively..

To cushion the impacts of inflation, the federal government recently announced a few measures.

On July 8, the federal government approved a 150-day duty-free waver for rice, maize, and wheat to address rising food inflation in the country by suspending the tariff on imported food items through both land and sea borders.

A bold step, however, the measure might not deliver a lasting solution to the country’s food insecurity, experts said.

On July 15, the federal government announced the donation of about 20 trucks of rice to each of the 36 states and the FCT to cushion the country’s food crisis.

According to the Minister of Information and Orientation, Mohammed Idris, who disclosed this to journalists at the end of the Federal Executive Council meeting, each truckload contains about 1,200 (25kg) bags of rice, expected to be distributed to vulnerable Nigerians by the state governments.

Economic conditions likely to spike July inflation

Analysts believe that the June inflation was not a typical month, compared to the prior year as Nigerians suffered from high flood and petrol shortages.

Former director-general of Lagos Chamber of Commerce, Muda Yusuf told The ICIR that that the key factors driving inflation were still very much at play.

“Exchange rate is still an issue, insecurity is still an issue, cost of transportation is still an issue, cost of fuel is still there. All those problems are still  there and that’s why inflation keeps rising,” he said.

More determining factors were the public holidays in June, especially the Muslim celebrations which pushed up economic activities and demand for food products.

The full effect of these developments manifests in the July inflation figures which are expected to be higher than the June numbers, the Financial Derivatives Company (FDC)posits in its ‘June Post-Inflation Report’ released on July 15.

“The inflation outlook for July looks gloomy. Despite some signs of cooling in June and the impact of the base effect in July, several factors suggest that inflation may remain high,” the report stated.

One other major development in the FDC lookout for July is the imminent passing of a new minimum wage law.

“From all indications, the effect of a new minimum wage will trigger cost-push inflation,” it added.

While the inflation figures were not a surprise, a renowned economist, Bismarck Rewane, noted that a couple of activities happened in June.

He noted there were fuel supply shortages, public holidays, and June being the end of the planting season with expectations that July-August would be the beginning of harvest season.

Rewane said realistically that people were beginning to resist price increases, explaining that incomes were down and the cost of living crisis was affecting people’s purchasing power.

He said the prices of basic items like garri and yams increased higher more than food with protein, meat, fish, and other livestock in the June inflation figures.

Rewane pointed out that cereals including garri, yams, groundnut oil, palm oil, and millet were the food items that increased the most in the NBS food basket inflation report.

A look at the FDC’s latest commodities update shows that prices of some food items were coming down.

For instance, a 50kg bag of yellow garri has dropped to N45,000 from previously at N47,000; long-grain rice (50kg) to N82,000 from N85,000; and flour (50kg) to N52,000 from N59,000.

On the contrary, a (50kg) bag of Oloyin beans increased to N150,000 from N95,000; a basket of tomatoes to N140,000 from N110,000; a big bag of pepper to N160,000 from N140,000; and a bag of onions to N100,000 from N90,000.

In the last two or three days, the prices of some food items have further dropped while some have increased, Rewane said.

“One, there have been smuggling of commodities across the borders. Two there has been resistance in income; and three the petrol price increase is having a feeling effect on the pricing of commodities.”

“So, people are going back to the basic (garri, flour, etc) and not to the luxury (ostentatious) goods,” he said.

The price of foods containing proteins has become a luxury as most Nigerians eat less chicken, beef, and fish.

“You know what happened to the tomatoes that it went all the way up and now it is beginning to come down because people were switching to carrots and other things,” Rewane said.

Commenting on the 150-day duty-free importation and the 20 truckloads of rice to each state and FCT, he said it could be looked at from two points.

“One is a stabilization space where you have a crisis and the other one is where you have a long-term space where you have now built capacity to increase output and aggregate supply.

“What has happened now in this short-term measure is to import commodities to force down the prices.

The renowned economist, who spoke at a Channels Television on Tuesday, July 16, said Nigeria’s economy was in debt, poverty, and output crisis, ameliorating the immediate pains on the masses requires the temporary infusion of import to bring down the price of goods which would not solve the problem.

Stressing that the major problem is about growth, investment, and output, lamented that the short-term measure of the government doesn’t seem to be getting to the vulnerable people.

“The big problem is who are the people, who are identifying them? Is it going to be scandal-free, judiciously executed in such a way that the impact is felt? He said, questioning further whether the institution’s infrastructure is available to ensure that the bags and trucks of rice get to the people in those states.

“I am not sure that is going to happen and how it will get down to the people in the street, market,” Rewane added.

A development economist, Celestine Okeke, had told The ICIR that the duty-free import suspension was a knee-jerk approach to managing food inflation.

“The management of food inflation requires a multi-thronged approach to supporting farmers with single-digit facilities and securing their farmlands.

“The government must also support farmers with improved yield variety of seedlings for improved productivity. What the government has done is good, but they need to pay more attention to some teething problems,” Okeke said.

AfDB retains top spot in 2024 aid transparency index

Harrison EDEH
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AfDB retains top spot in 2024 aid transparency index

PUBLISH What You Fund, the global campaign for aid and development transparency, has named the African Development Bank’s (AfDB) sovereign portfolio the most transparent.

Sovereign Portfolio means any account, trust, or other investment vehicle (except “Fund’ over which the firm has investment management discretion.

The portfolio emerged first out of 50 global development institutions with a top score of 98.8 in its 2024 Aid Transparency Index released on Tuesday, July 16.

The Bank’s sovereign portfolio climbed four places in the ranking in 2022 to top the Index, setting the standard for high-quality data publication.

The AfDB in a statement issued on Tuesday, July 16, said the Aid Transparency Index had tracked the transparency of the largest international aid organisations over the last 12 years.

The 2024 Index assesses six sovereign (public sector) portfolios and six non-sovereign (private sector) portfolios of development finance institutions (DFIs).

AfDB noted that sovereign portfolios of development finance institutions occupy three of the top five positions in the ranking with the African Development Bank coming first, the InterAmerican Development Bank second, and the World Bank International Development Association fourth.

“I am delighted by this recognition from Publish What You Fund. It is a testament once again to the commitment of the Bank’s Board, management, and staff to continuously improve the disclosure of aid flows by providing consistent, high-quality, and easily accessible data,” said Akinwumi Adesina, President of the AfDB.

“This achievement is especially significant given the new, more rigorous assessment standards and transparency requirements for development financial institutions.

The rating of our sovereign portfolio as the most transparent development organisation in the world for the second consecutive time is simply extraordinary.

“I commend Publish What You Fund for its vital and much-needed work in making aid and development efforts more transparent and effective,” Adesina added.

Topping the 2024 Index, the AfDB’s Sovereign Portfolio demonstrated its commitment to publishing very good, high-quality data about its activities, the report noted. It is used as an example of data published about the Zambia – Lusaka Sanitation Programme – Climate Resilient Sustainable Infrastructure Project.

The report commended the Bank for detailed publication of project objectives, impact appraisal documents, environmental studies, and evaluation reports – a total of over 29 documents in both French and English.

“We congratulate the African Development Bank as it continues to lead the Aid Transparency Index with its sovereign portfolio. This is the result of a persistent focus on transparency, meaningful involvement with the Aid Transparency Index process, and pro-active engagement with the IATI community,” said Publish What You Fund’s CEO Gary Forster.

“AfDB has demonstrated that progress can be made swiftly and effectively by adhering to best practices and ensuring the availability of information. The AfDB’s desire to provide useful and timely data doesn’t end with what we measure in the Index, we’re also impressed by their investment in Map Africa – a portal which helps stakeholders locate and learn about individual projects,” said Forster.

This year’s Index focuses on the prominence of development finance institutions as vehicles for international aid.

“The ongoing Multilateral Development Bank (MDB) reform agenda promises to increase resources, allow higher risk investments, streamline business processes and improve coordination between banks. In most cases, the growth of the banks will be from greater borrowing on the capital markets rather than use of aid money,” the report said.

The African Development Bank’s non-sovereign portfolio was assessed for the second time and separately in the 2024 Index. Its non-sovereign portfolio ranked 13th among the 50 global development institutions under comparison.

The ICIR  reported that the AfDB made a case for an overhaul of the global financial architecture that would see African countries’ access to “concessional loans” devoid of the debt crisis.

AfDB’s Adesina also made bold proposals to reform the global financial architecture that would see Africa become a greater voice in multilateral global lending institutions.

Environmental Reporting Award seeks entries

Blessing OTOIBHI
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Environmental Reporting Award seeks entries

The Pan-African Climate Justice Alliance is accepting entries for the African Climate Change and Environmental Reporting (ACCER) Awards 2024, a biennial initiative that recognises excellence in climate change and environmental journalism in Africa.

Awards will be given in six categories: print media, broadcast media, investigative journalism, opinion commentary, use of data in climate change reporting, and digital activists.

Journalists reporting on climate change and the environment in Africa can enter this contest.

Entries must have been published or aired in English or French. Submissions in other languages must include a translation into English.

The organiser says, “Africa is realising the impact that climate change is having on their lives and their actionable plans to mitigate and adapt to new ways of living is evidential and has been reported across the board in the various media platforms”.

The deadline for the submission of application is August 6, 2024.

Interested applicants can apply here

GWR: Another Nigerian breaks world record with 75-hour videogame marathon

Mustapha USMAN
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GWR: Another Nigerian breaks world record with 75-hour videogame marathon

GUINNESS World Records has confirmed Nigerian, Oside Oluwole, also known as Khoded, as setting a new Guinness World Record for the “longest videogame marathon playing a soccer game.”

The 24-year-old surpassed the previous record of 50 hours held by Englishman David Whitefoot since 2022, with an astonishing 75 hours. 

The Guinness World Records stated this in a report on its website on Tuesday, July 16.

Unlike all the seven previous record holders who used FIFA or Pro Evolution Soccer, Oluwole played on his iPhone, which was connected to a TV screen.

Oluwole, a qualified biochemist who now works as a car dealer, was reported to have attempted this record to raise money for a local hospital in his hometown of Ijebu Ode.

He was allowed five minutes of rest after every hour of gaming, During these breaks, he could eat, nap, or use the toilet, in accordance with the rules for all ‘longest marathon’ records.

The report also noted that Oside had been an avid fan of the free-to-play soccer sim since first downloading it in 2016, playing over 500 matches during his record attempt.

“I really enjoyed myself playing for 75 hours straight with just some hours of rest. It wasn’t an easy task, but I must say it was all fun. It was such a great moment; the event was very interesting and I’m grateful to God that it was successful,” Oluwole was quoted saying in the report.

GWR further noted that the new record holder was inspired to undertake this challenge by Chef Hilda Baci, whose record-breaking cook-a-thon captivated Nigeria last year.

In June 2023, Hilda Baci succeeded in her longest cooking attempt and was confirmed by the GWR.

Following her success, The ICIR reported how there has been an upsurge in the number of Nigerians pursuing GWR in the past year.

A Nigerian Chess Master, Tunde Onakoya, completed his attempt at the Guinness World Record (GWR) for the longest chess marathon on April 20, playing the game of chess for 60 hours.

The chess master noted that he attempted to break the record in a bid to raise $1m (£805,000) for charity to support chess education for millions of children.

Also, the GWR in April 2024, confirmed Nigerian Clara Chizoba Kronborg, who recently broke the record for the longest interviewing marathon in 55 hours, 24 seconds.

According to GWR, Kronborg’s record attempt took place on a docked yacht in Marbella, Spain. She started on March 8 and ended on March 10, 2024.

Kronborg interviewed 90 people from different fields, including politicians, business owners, content creators, actors, and real estate agents. The interviews focused on how each guest achieved success in their respective fields.

Meanwhile, following the record-breaking soccer videogame Marathon event by Oluwole, Nigerians on social media, particularly on X, have lauded his feat of setting a new record and his remarkable display of perseverance.

Some also claimed that his recent achievement has also become a source of inspiration and pride for many.

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