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Tinubu rejects EU’s report on 2023 presidential election

Vincent Ufuoma
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Tinubu rejects EU’s report on 2023 presidential election

PRESIDENT Bola Tinubu has rejected the European Union Electoral Observer Mission (EU-EOM) report that criticised the 2023 presidential election.

The EU Mission had in a report published on Tuesday, June 27, said the election exposed enduring systemic weaknesses and therefore signalled a need for further legal and operational reforms to enhance transparency, inclusiveness, and accountability in Nigeria’s electoral system.

EU-EOM Chief Observer, Barry Andrews, said the report was based on the analysis of compliance with Nigeria’s regional and international commitments for democratic elections.

He applauded the Independent National Electoral Commission (INEC) for introducing some positive measures like an increased number of polling units and the Bimodal Voter Accreditation System (BVAS) early in the electoral process but noted that the actions did not buy public confidence in the electoral body.

The EU, however, noted that public confidence in INEC was severely damaged during the February 25 poll due to its operational failures and lack of transparency.

“While some corrective measures introduced before the 18 March elections seemed to have a positive impact, overall trust was not restored and eventually led civil society to call for an independent audit of the entire process,” the report said.

“Prior to the elections, selection processes were questioned leaving the institution vulnerable to mistrust.”

Andrews said a lack of transparency surrounded the use of the BVAS and the INEC results viewing portal (IReV) which contradicted the integrity and credibility of the elections.

The Mission also faulted the fines placed on media houses by the National Broadcasting Commission (NBC), saying they were carried out without due process and censored analytical reporting.

Other issues raised in the report include the impact of the naira redesign policy, violence, interference by governors, suppressed voter participation and low level of gender inclusion in the election.

But Tinubu, in a statement through his Special Adviser on Media, Dele Alake, on Sunday, July 2, described the report as a product of a poorly done desk job that relied heavily on a few persons.

The President said that he has many reasons to believe the “jaundiced report”, based on the views of fewer than 50 observers, “was to merely sustain the same premature denunciatory stance contained in EU’s preliminary report released in March”.

The President stated that it was outrageous and unconscionable for any foreign entity to insist on its own criteria and assessment as the sole means of determining the credibility and transparency of Nigerian elections.

He asserted that the 2023 general elections, especially the presidential election, were credible, peaceful, free, fair, and the most efficiently organised since 1999.

He noted that some notable bodies like the Nigeria Bar Association (NBA) and even INEC, have commended the conduct and outcome of the election.

“Sometimes in May, we alerted the nation, through a press statement, to the plan by a continental multi-lateral institution to discredit the 2023 general elections conducted by the Independent National Electoral Commission,” he said.

“The main target was the presidential election, clearly and fairly won by the then candidate of All Progressives Congress, Bola Ahmed Tinubu.

“While we did not mention the name of the organisation in the said statement, we made it abundantly clear to Nigerians how this foreign institution had been unrelenting in its assault on the credibility of the electoral process, the sovereignty of our country and on our ability as a people to organise ourselves.

“We find it preposterous and unconscionable that in this day and age, any foreign organisation of whatever hue can continue to insist on its own yardstick and assessment as the only way to determine the credibility and transparency of our elections.

“Now that the organisation has submitted what it claimed to be its final report on the elections, we can now categorically let Nigerians and the entire world know that we were not unaware of the machinations of the European Union to sustain its, largely, unfounded bias and claims on the election outcomes.

“For emphasis, we want to reiterate that the 2023 general elections, most especially the presidential election, won by President Bola Tinubu/All Progressives Congress, were credible, peaceful, free, fair and the best organised general elections in Nigeria since 1999.”

He said that neither the EU nor any other foreign or local organisation had presented substantial evidence capable of discrediting the election outcomes.

He stressed that the limitations of the EU’s final assessment were evident in the press conference conducted by the Head of its Electoral Observation Mission, who stated that the EU-EOM had monitored the pre-election and post-election processes in Nigeria from January 11 to April 11, 2023, with a team of 11 analysts in Abuja and 40 election observers across the states.

“Within this period, EU-EOM observed the elections through 11 Abuja-based analysts, and 40 election observers spread across 36 states and the Federal Capital Territory. With the level of personnel deployed, which was barely an average of one person per state, we wonder how EU-EOM independently monitored election in over 176,000 polling units across Nigeria.”

He demanded an explanation from the EU on how it reached it’s conclusions in the final report, considering the scant coverage provided by it’s observers.

He claimed that the EU-EOM relied heavily on rumors, hearsay, biased and uninformed social media commentaries, and opposition narratives.

Tinubu further rejected any insinuation or suggestion that the 2023 election was fraudulent, reiterating his earlier position that the use of technology had made it the most transparent and well-organized election since Nigeria’s return to civilian rule.

He pointed out that non-partisan foreign and local observers such as the African Union (AU), the Economic Community of West Africa States (ECOWAS), Commonwealth Observer Mission, and the NBA had validated this claim.

“Our earlier position that the technology-aided 2023 general elections were the most transparent and best organised elections since the return of civil rule in Nigeria has been validated by all non-partisan foreign and local observers such are the African Union, ECOWAS, Commonwealth Observer Mission and the Nigerian Bar Association.

“Unlike EU-EOM that deployed fewer than 50 observers, the Nigerian Bar Association that sent out over 1000 observers spread across the entire country for same election gave a more holistic and accurate assessment of the elections in their own report.

“NBA, an organisation of eminent lawyers and an important voice within the civic space, reported that 91.8 per cent of Nigerians rated the conduct of the national and state elections as credible and satisfactory. Any election that over 90% of the citizens considered transparent should be celebrated anywhere in the world.

“It is heart-warming that INEC, through its National Commissioner for Information and Voter Education, Mr. Festus Okoye, has come out to defend the integrity of the election it conducted by rejecting the false narratives in the EU report.

“It is also gratifying that the electoral umpire, as an institution that is open to learning and continuous improvements, has also committed to taking on board more ideas, innovation and reforms that will further enhance the integrity and credibility of our electoral process.”

It further said as a country, “we have put the elections behind us. President Tinubu is facing the arduous task of nation-building, while those who have reasons to challenge the process continue to do so through the courts.

“In just one month in office, Nigerians appear satisfied with the decisive leadership of President Tinubu and the manner he is redirecting the country to the path of fiscal sustainability and socio-economic reforms. We urge the EU and other foreign interests to be objective in all their assessments of the internal affairs of our country and allow Nigeria to breathe.”

Why there is delay in payment of June allowance — NYSC

Vincent Ufuoma
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Why there is delay in payment of June allowance — NYSC

THE National Youth Service Corps (NYSC) has blamed banks for the delay in the payment of June allowance to serving corps members across the country.

This was contained in a statement by NYSC spokesperson, Eddy Megwa, on Sunday, July 2.

In the statement seen by The ICIR, the NYSC said it was aware of the concerns of corps members over the delay in the payment of their allowance.

Megwa said the NYSC concluded arrangement for the payment of June allowance to corps members on June 27 but the money has not been disbursed due “administration of funds by various banks”.

“For the avoidance of doubt, the Scheme completed all arrangements for the payment of Corps Members’ allowance since 27th of June, 2023, and remittances made same day to various banks accordingly,” he said.

“The delay being currently experienced is due to the administration of funds by various banks who are yet to credit Corps Members’ accounts.”

He said that NYSC management was assiduously interfacing with the banks to resolve the issue without further delay.

He urged corps members to remain calm and law-abiding in their respective places of national service as the Scheme will continue to treat issues relating to their welfare with utmost priority.

The ICIR had observed that delay in the payment of corps members’ allowances by the management of the NYSC has become routine in recent months.

The delay has always caused a lot of uproar on social media and agitations among corps members who largely depend on the monthly payment of N33,000 for their upkeep.

The NYSC had never offered any explanations for the delays, except for the recent one.

The previous administration of President Muhammadu Buhari late last and earlier this year declined assent to a bill to improve the general welfare of corps members and personnel of the scheme.

Passed by the ninth national assembly, the NYSC, Trust Fund Bill, sought a special source of funding  from a levy of one per cent of the net profit of companies and organized private sector operating business in Nigeria.

The Fund also sought to draw 0.2 per cent of total revenue accruing to the federation account; and any takeoff grant and special intervention fund as may be provided by the federal, state and local governments of the Federation.

Despite pressure and calls by Nigerians, including civil society organisations (CSOs), Buhari refused to sign the bill.

Flooding: FCDA to demolish houses in Trademore, other Abuja communities

Beloved JOHN
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Flooding: FCDA to demolish houses in Trademore, other Abuja communities

STRUCTURES on waterways across the nation’s capital will all be demolished, according to the Federal Capital Development Authority (FCDA). 

The FCDA executive director, Shehu Ahmed, said structures in communities such as Trademore estate, disrupting the natural water flow, are responsible for flooding recorded in some parts of the city.

He disclosed this in a statement on Sunday, July 2, in Abuja.

Ahmed said many of the buildings in the estate have been marked for demolition. Still, the occupants have refused to relocate despite repeated warnings. 

Last Friday, June 23, Trademore Estate was flooded after an hour-long rainfall. 

Several houses, vehicles, shops and other properties were damaged by the flood, while some lives were also lost.

Speaking on this incident, the FCDA director said, “People are clamouring that we act quickly and take tough decisions to save lives. And this is what we must do. We cannot work as though we don’t see this man-made problem caused by those who violate the Abuja Master Plan.

“By declaring Trademore a disaster zone, we have told the residents there to evacuate. The area is in a low-line zone which is not safe. Flooding can come at any time. They know this and have been experiencing it over the years.”

Ahmed said a police station and some buildings will be demolished. 

He noted that the Agency has asked the FCT Police Command to provide a suitable place for them to operate from and fight crime.

According to him, Trademore Estate does not have an FCDA-approved building plan. He noted that due to the continuous flooding in the area, it would be best to leave the flooded areas as green areas and not for residential purposes.

Meanwhile, When The ICIR visited the estate after the flood incident, the residents protested the plan by the government to demolish buildings. 

The Trademore Estate chairman, Phase 2, Stella Okuteh, said no demolition will be allowed in the estate as the residents are still paying the mortgage on their homes to the Federal Mortgage Bank (FMB). 

“Trademoore is not the only estate affected. The government should fix the problem. Trace the water, and build better drainages.

“The houses here are owned by the Federal Mortgage Bank through Platinum Mortgage Bank that built this house. Many residents here are civil servants who are still paying mortgages to the government,” she said. 

Harold Idemudia, a member of the estate board of trustees, said demolishing the area is an ineffective way to resolve the problem.

He blamed poor drainage construction for the perennial flooding in the estate.

“Demolishing the area won’t stop the flooding. Government needs to build a better drainage system.”

SERAP threatens to sue Tinubu over disbursement of N400bn subsidy savings

Ijeoma OPARA
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SERAP threatens to sue Tinubu over disbursement of N400bn subsidy savings

THE Socio-Economic Rights Accountability Project (SERAP) has demanded that Nigerian President Bola Tinubu publish spending details of the N400 billion saved as a result of removal of fuel subsidy over the past four weeks.

In a post via its Twitter page on Sunday, July 2, SERAP threatened to institute legal actions against the President if the details demanded are not made available.

SERAP also addressed a letter to Tinubu dated July 1, stating that there were concerns about embezzlement of the funds and making the information public would promote accountability and reduce the risk of corruption.

“Your government has a legal responsibility to ensure that the savings from the removal of subsidy on petrol are spent solely for the benefit of the 137 million poor Nigerians who are bearing the brunt of the removal.

“Publishing the details of the spending of the N400bn and other savings from the removal of subsidy would also ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of the funds.”

The organisation said transparency would ensure that Nigerians, who have been affected by the hike in cost of petrol, benefit from the funds and overcome the effects of the removal.

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.

“Unless the government is transparent and accountable to Nigerians in how it spends the savings from the removal of subsidy on petrol, the removal will continue to undermine the rights of Nigerians, and increase their vulnerability to poverty and social deprivation,” SERAP noted.

While delivering his inaugural speech, Tinubu announced the removal of fuel subsidy, after which fuel prices surged by about 200 per cent.

The surge in fuel costs resulted in some hardship for Nigerians, as transport costs and other businesses have been affected by the hike.

On Friday, June 30, oil marketers said that the Federal Government has saved N400 billion as a result of the removal, based on calculations by Chief Executive Officer (CEO) of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari on Nigerians monthly subsidy expenditure.

“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country. In current data terms, three days ago, the landing cost was around N315/litre.

“Our customers are here; we are transferring to each of them at N113/litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month,” Kyari was reported to have said in February 2023.

10th NASS to prioritise climate change -‐ Deputy Speaker

Beloved JOHN
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10th NASS to prioritise climate change -‐ Deputy Speaker

THE Deputy Speaker of the House of Representatives, Benjamin Kalu, says the 10th National Assembly will prioritise addressing climate change issues in the country. 

He said this in a statement on Saturday, July 1, issued to commemorate the 2023 International Day of the Parliament.

The International Day of the Parliament was introduced in 2018 through a United Nations General Assembly Resolution and is celebrated annually on June 30. 

According to the United Nations, the goal is to review the progress that parliaments have made in achieving some of their goals and responsibilities. 

The event for 2023 is themed, ‘Parliaments for the Planet’.

And to keep up with Nigeria’s climate change commitment, the lawmaker said the National Assembly will be more responsive to climate change issues.

He said the assembly would adopt greener policies and sustainable cultures to address the country’s climate crisis. 

“Climate action begins at home. Parliaments and those who work in them can take concrete steps towards reducing their carbon footprint, both as institutions and individuals.

“By adopting greener policies and embracing a culture of sustainability, parliaments can help in addressing the crisis caused by climate change.

“As a newly inaugurated National Assembly member, I want to assure Nigerians and the key stakeholders on climate change issues that we will prioritise climate change issues as the parliament settles down.

“The 10th Parliament would lead by example. We shall prioritise the greening of our parliament, greening the way we work, and we will lead and foster a culture of sustainable change,” he said.

Earlier, the House of Representatives had demanded that the Federal Government implement the carbon credit scheme to mitigate the impact of climate change in the country.

The carbon credit scheme is a policy where industries are encouraged to reduce their carbon footprint to earn calculated carbon credit (per ton of carbon). 

Enterprises that exceed emission thresholds are sanctioned with fines.

Climate Change issues in Nigeria

Climate change is having a severe impact on Nigeria. It is evident in how it affects average daily weather temperature, causing intense humidity, rainfall or sunshine in a location over an extended period. 

According to the House of Representatives, climate change has led to seasons of drought and flood, which affected agricultural activities. 

The lawmakers said the country is experiencing the devastating impact of climate change, as desertification races southward at a speed of 0.6km per annum, and gully and coastal erosions destroy communities and farmlands, thus drying up Lake Chad.

Flooding has claimed hundreds of lives while displacing millions.

In 2019, the National Emergency Management Agency revealed floods had displaced approximately 1.9 million Nigerians. In 2022, flooding displaced over 2 million people in the country. 

However, Nigeria is a signatory to several climate change treaties. 

There’s the United Nations Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol, and the Paris Agreement. The country is also a part of the Copenhagen Accord, the Doha Amendment and the Marrakesh Accords.

These agreements aim to reduce global greenhouse gas emissions and limit the impacts of climate change.

These agreements also encourage counties to work together to develop policies and strategies to address the individual climate crisis. They also help countries to reduce their carbon footprints and transition to a low-carbon economy.

Did the Nigerian Armed Forces curtail insecurity as Lucky Irabor claimed? Here is what data say

Theophilus ADEDOKUN
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Did the Nigerian Armed Forces curtail insecurity as Lucky Irabor claimed? Here is what data say

On Friday, June 30, FORMER Chief of Defence Staff (CDS), General Lucky Irabor said that the Armed Force had curtailed insecurity challenges in the country under his leadership.

Lucky Irabor was at  appointed by former President Muhammadu Buhari in January, 2021 and sacked  sacked on Monday, June 19 by President Bola Tinubu along with the other service  chiefs.

Speaking at the pulling-out ceremony held in his honour, the former Chief of Defence Staff noted that the Armed Force had mitigated the threat of terrorism and decreased the level of insecurity in Nigeria.

Stressing that President Ahmed Tinubu would grapple with nation building and national security challenges, Irabor noted he is leaving the Armed Force of Nigeria bigger, stronger and more capable.

“I make bold to say that I’m leaving the armed forces of Nigeria today,bigger,stronger and more capable to deliver on its constitutional mandate and national security functions.

“In more specific terms we have significantly curtailed the threats of terrorism, insurgency, piracy, sea robberies, vandalism of critical national assets and kidnappings, and the military aid to civil authority role.

“We successfully work in conjunction with other security agencies and stakeholders to deliver a physical security environment that is amenable for Law and Order, critical democratic processes as well as human security and national development,” Irabor stressed.

Months earlier, the EX-CDS (then CDS) boasted that the military had recorded landmark successes in the fight against terrorism and curbed insurgency.

Delivering a lecture titled “National Defence Policy and Transitional Justice Approach in the War Against Insurgency in Nigeria” in Edo state, Irabor said that among the 51,828 Boko Haram that surrendered, 13,360 are fighters.”

Irabor had revealed that no fewer than 51,828 Boko Haram terrorists and their family members surrendered to the Federal Government of Nigeria between July 2021 and May 2022. 

Contrary to the claim of the EX-CDS that terrorism and insecurity activities reduced during the period of his leadership, statistics shows an increment.

To find out if the military has significantly curtailed insecurity since Irabor’s assumption in office  from 2021 till 2023; The ICIR used Data gathered from  SBMIntel, Armed Conflict Location & Event Data Project (ACLED), Nigeria Mourns and the Nigeria Security Tracker (NST)  to fact-check Irabor’s claim that he had significantly curtailed insecurity.

The ICIR analysed number of violent incidents gathered by SBMIntel, Armed Conflict Location & Event Data Project (ACLED), Nigeria Mourns and the Nigeria Security Tracker (NST).

The ICIR earlier reported major issues on insecurity as Buhari’s administration wind  down its eight years tenure of leadership.

Documenting attacks on security personnels, it  identified cattle rustling as a significant contributor to rising insecurity in the country.

Showing that the insecurity challenges had caused displacement of thousands of Nigerians, it maintained insecurity is one of the major challenges of Buhari’s administration.

Did the Nigerian Armed Forces curtail insecurity as Lucky Irabor claimed? Here is what data state

A way to weigh improved security architecture is through either increase or decrease in the number of violent incidents recorded within the period of his leadership, as well as recorded death.

Nigeria Mourns, reported that 3,188 people lost their lives in violence attacks between January to December 2019.

These include lives lost during such as gang wars, clashes, extra-judicial killings, resource crisis, kidnappings and Boko-Haram/ ISWAP attacks.

It stated that 2,707  killed were civilians, while 481 were state security agents.

According to the SBMintel Quarterly Media Killing Report gathered between January to December 2020 not less than 7,070 incidents of armed violence were reported.

In the years that followed, SBMintel records 10,366 and 7,728 in 2021 and 2022 respectively.

By end of December 2022, the mortality rate of armed violent incidents have skyrocketed drastically.

A critical evaluation of the figures and compilation revealed that over 18,000 deaths were recorded in violent incidents including attacks from Boko Haram, militia herdsmen, abduction and gang clashes since 2021.

Similarly, despite the spread of insecurity and insurgency in the Northeast, ACLED data indicated that deaths registered from violent incidents between 2019 and 2020 totalled 14,407 is relatively low compared to the registered mortality rate between 2021 and 2022 (21,641).

ACLED pointed out that the mortality rate increased by 50.2% within two years as a result of insecurity.

However, NST data shows a total number of 8,340 and 9,694 people died from insecurity in 2019 and 2020 respectively, the record of mortality in 2021 shot up to 10,398 while it never decreased below nine thousand (9,080) in 2022.

Kidnapping: what has happened?

Bandits and terrorists in northern Nigeria; Niger Delta insurgents; as well as ritual killers in the west and east; have all continued to practice kidnapping, banditry, or abduction.

Nigeria Security Tracker (NST) showed a rising trend in the frequency of mass kidnappings and the overall number of kidnapping victims in the nation by analysing data gathered

Between 2019 to 2020 (two years before Irabor’s appointment); NST recorded 1,441 and 2,879 victims of kidnapping respectively.

The following, two years under the leadership of the EX-CDS Lucky Irabor administration’s leadership; Nigeria witnessed a spike in the number of mass abduction and the reign of kidnapping continues.

NST data showed that  almost 10,000 people fell into the net of kidnappers in 2021 and 2022.

Noting that 5,287 and 4,680 victims were recorded for the two years respectively, data shows that the rate of kidnapping had doubled.

As cited in Punch, a security report by Beacon Intel recorded that 7,92 persons were kidnapped in the first quarter of 2023.

This study covered the abduction recorded from January to March this year.

One of the major kidnapping cases during Irabor leadership was the abduction of Abuja-Kaduna train passengers.

Terrorists attacked the train on March 28 and killed an unspecified number of passengers before abducting dozens of others to an unidentified location, according to The ICIR.

After months of negotiations between the federal government, victims’ families and terrorists, the abducted were finally released.

Announcing the release, then minister of Transportation Mu’azu Sambo said, “I am pleased to announce to the nation and the world that at 16:00hrs (4:00 pm) today, Wednesday 5-10-22, the seven-man Presidential Committee assembled by the Chief of Defence Staff (CDS), General Leo Irabor, secured the release and took custody of all the 23 remaining passengers held hostage by Boko Haram terrorists following the attack on the Abuja to Kaduna train on 28-3-2022.

“The nation owes a debt of gratitude to the Nigerian military under the leadership of the CDS, who conceived and guided the operation from start to finish. All sister security agencies and the Federal Ministry of Transportation contributed immensely to this operation.

Abia gets $115m AfDB loan for road rehabilitation, erosion control

Harrison EDEH
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Abia gets $115m AfDB loan for road rehabilitation, erosion control

THE Board of Directors of the African Development Bank Group (AfBD) has approved a loan of $115 million to support a major road rehabilitation projects in Abia State.

The project will be used for the rehabilitation of roads, erosion control and provision of solid waste management facilities in the state capital, Umuahia, and the commercial hub, Aba.

The continental bank disclosed in a statement that the financing for the project, estimated at a total cost of $263.80 million, will come through an African Development Bank loan of $100 million; a Canada–African Development Bank Climate Fund (CACF) loan of $15 million; and a $125 million co-financing loan from the Islamic Development Bank.

The Abia State government will provide $23.80 million in counterpart funding for compensation to people affected by the project and implementation of a Resettlement Action Plan.

Under the project, which is expected to be completed in 2029, a total of 248.46 km of road – 58.03 km of roads in Umuahia and 190.43 km of roads in Aba – will be rehabilitated to asphaltic concrete standards at varying cross sections. Erosion sites in Umuahia and Aba will be reinstated as well as preparatory studies undertaken for private sector participation in solid waste management for the two cities.

The project will also include capacity building, project management and development of social infrastructure such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets and hospitals.

With an estimated population of 553,000 and 814,000 respectively (2022 estimates), Umuahia, capital of Abia State, and Aba, the commercial hub, are currently facing serious infrastructural challenges arising from decades of underinvestment amidst rapid urbanisation.

The ICIR findings revealed that the situation is aggravated by gully erosion and the emergence of huge piles of solid waste on the roads.

When completed, the 1.37 million population in these two cities will benefit from reduced travel time, reduced vehicle operating costs and lower transport cost.

The project will also create 3,000 temporary jobs (30 per cent for women) at the construction phase, and about 1,000 permanent jobs during the operational phase. The permanent jobs will particularly benefit the youth, who will make up 50 per cent of the project. They will be trained in contract management by the State Youth Road Maintenance Corps for Road Maintenance, a body of young Abia engineers drawn from the 17 Local Government Areas of the State.

Lamin Barrow, Director General of the African Development Bank’s Nigeria Country Department, noted in the statement that the project will build resilience by providing the towns access to urban infrastructure services, including economic and social amenities.

Barrow said, “The results from implementation of the project will help expand access to economic and social amenities in the two cities, and thereby contribute to building sustainable and liveable cities.”

Relief for consumers as DisCos, NERC shelve electricity tariff hike

Harrison EDEH
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Relief for consumers as DisCos, NERC shelve electricity tariff hike

NIGERIAN electricity consumers have heaved sigh of relief as the Nigerian Electricity Regulatory Commission (NERC) and the distribution companies (DisCos) shelved plans to implement a 40 per cent hike in tariff on July 1.

Most Nigerian consumers made last -gasp efforts to purchase electricity units before the date. However, checks by The ICIR showed the electricity tariff hike was not effected.

For instance, the tariff for power users on Band A which stood at N68/kilowatt-hour as of Tuesday, June 27 remained the same on July 1.

Commenting on the development, Muhammad Yusuf, a trader who resides in the Dei-Dei area of Abuja, told The ICIR that the proposed hike would have dealt a big blow on his income which he said has been shrinking.

“Trading and business is slow, our income is squeezed and we cannot afford to another electricity hike. I appreciate the suspension, but I want the government to resuscitate the economy. Trading is generally slow and people are complaining,” Mohammed said.

The President, Nigeria Consumer Protection Network, and coordinator, Power Sector Perspectives, Kunle Olubiyo, confirmed the halt in the proposed tariff hike by the DisCos. But he told The ICIR that it might be raised quietly in the near future.

He stated, “Tariff adjustments happen every six months. However, most of us just concluded that the six months was supposed to end on June 30, 2023, and that with effect from July 1, there might be an upward review.

“However, that is not sacrosanct; there is nothing in the books that says it has to be July 1. But, of course, in this month of July, somewhere along the line before this month ends, you may load credit and notice some adjustment.

“We have seen that in the past. There was supposed to be an increase in September 2020, it didn’t come immediately. But between December 2020 and January 2021, the increase was made quietly that now brought the rate for Band A from N24/kwh to N56/kwh, before it was quietly raised again to N68/kwh.”

Talks of a possible increase in tariff had been premised on the multi-year tariff order (MYTO) of NERC, which six-monthly review was calculated to be due in July 1. But as one of the official spokespersons at NERC, Mike Faloseyi, affirmed, there would be no tariff increment now.

A DisCo official who spoke with The ICIR confirmed the company would not be effecting any upward tariff review on the date.

“We are not increasing any tariff for now – and it is important to tell you this,” the official spokesperson of the Abuja Electricity Distribution Company (AEDC), Donald Etim, told The ICIR.

Other distribution companies had also posted on their websites that they would not be effecting any hike on July 1, as reported in several sections of the media.

A statement on the Ikeja DisCo’s website read, “Public Notice: Avoid Fake News. Dear Esteemed Customer, if the information is not from us on tariff hike, or is not on any of our social media handles, then it is not true.”

Commenting on the development, an energy lawyer and power sector governance expert, Chuks Nwani, who confirmed the suspension of the tariff hike, explained that the DisCos would be justified to effect the upward tariff review “because there is a template for such review every six months as directed by the multi-year-tariff-order of the NERC”.

Distribution companies.
Distribution companies.

Nwani said, “There is a template for the review, which does not necessarily require approval. What the DisCos are doing is to key into that template. The last official exchange rate, for instance, is N460 to a dollar, but now with the forex unification, it is above N760. All these will be factored in to pay for gas. Inflation is 22.22 per cent. This is the market reality.”

When asked why DisCos have been rejecting loads and not improving their supply, resulting in huge negative balance sheets for them, Nwani said energy theft had been a major concern for many DisCos, which he said had led to under-recovery in most cases.

“Distribution companies also experience their own challenges. There are issues with energy theft and meter-bypass, which drains their income and makes them to reject loads in key areas there are power theft,” he said.

The projected upward tariff review in July was expected to address fuel subsidy removal and increase the previously frozen tariff bands D and E, increasing the bands from N54.59/kilowatt to N62.16 for band D, and N48.37/kilowatt to N61.16 on average, with an average increase across the bands moving to N67/kilowatt.

Energy experts projected that inflation induced by the floating of the naira and subsidy removal would spike the new average tariff to about N88/kilowatt for the energy sector to recover operational costs.

Over the past week, several media outlets had published the expected 40 per cent rise in tariff, which they hinged on the MYTO, in line with the half-yearly review.

Considering Federal Government’s foreign exchange rates unification, double-digit inflation at 22.22 per cent, and fuel subsidy removal as they affect operational cost, some analysts had concluded it would be difficult for NERC and the DisCos not to hike the tariff in the July 1 review window.

FG Staff Housing Loan Board ignores FOI request, says it doesn’t respond to NGOs inquiries

Mustapha USMAN
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FG Staff Housing Loan Board ignores FOI request, says it doesn’t respond to NGOs inquiries

THE Federal Government Staff Housing Loan Board under the Ministry of Works and Housing has failed to provide information on capital and constituency projects sponsored by members of the National Assembly in the organisation.

The information was demanded through a Freedom of Information (FOI) request by the International Centre for Investigative Reporting (ICIR). 

The ICIR, in the FOI request dated May 31, 2023, asked the Board to specifically provide the contract description, advert date and media, approved threshold, procurement method, bid opening date, contractor, and date of contract award.

Freedom of Information sent to the Federal Government Staff Housing Loans Board.
Freedom of Information sent to the Federal Government Staff Housing Loans Board

The Board refused to acknowledge the letter, stating that it doesn’t respond to FOI requests from Non-Governmental Organisations (NGO).

The Federal Government of Nigeria in 1924 under the colonial administration established the “Africa Staff Housing Loans Scheme”, which was renamed the Federal Government Staff Housing Loans Board (FGSHLB) in 1974 by an enabling law No.6 of 1974 and No. 43 of 1977 as amended, now FGSHLB Act, CAP F. II, Laws of the Federation, 2004, to address the housing need of Federal Government Staff:

“With the legislation, the Board became autonomous and subsequently self-accounting. Following the Alison Ayida-panel recommendations on Public Service Reforms, the supervision of the Board was transferred from the Federal Ministry of Works and Housing to the Office of the Head of Civil Service of the Federation as a Parastatal to perform the same mandate,” a post on the FGSHLB website reads.

The Board, in it’s website, boasts of having the responsibility of providing the Federal Government staff with sustainable housing loans with single-digit interest rate to enable them to purchase, build or renovate their own houses for a peaceful post-retirement life after a successful career in the service.

It also has the mandate of managing revolving housing loan funds for the purpose of granting soft loans to Federal Public Servants to enable them to build residential houses, purchase land of residential houses, and any other housing project of their choice in Nigeria.

The refusal to respond to the request contravened the Freedom of Information Act which mandated all public institutions to ensure information is readily available through various means upon requests.

Section 1, sub-section 1 of the FOIA states that “Notwithstanding anything contained in any other Act, law or regulation, the right of any person to access or request information, whether or not contained in any written form, which is in the custody or possession of any public official, agency or institution howsoever described, is established.”

Section 2(4): “Public institutions shall ensure that information referred to in this section is widely disseminated and made readily available to members of the public through various means, including print, electronic and online sources, and at the offices of such public institutions.”

In another section of the act, it was stated that should any institution believe that another public institution has greater interest in the information, the institution is required to transfer the application to the other public institution within three days.

Section 5, subsection 1, “Where a public institution receives an application for access to information, and the institution is of the view that another public institution has greater interest in the information, the institution to which the application is made may within 3 days but not later than 7 days after the application is received, transfer the application, and if necessary, the information, to the other public institution, in which case, the institution transferring the application shall give written notice of the transfer to the applicant, which notice shall contain a statement informing the applicant that such decision to transfer the application can be reviewed by the Court.”

The Media Right Agenda’s programme manager, Ayode Longe while speaking on the Board response to The ICIR said the FOI Act doesn’t not specify who not to provide with information.

“Apparently being under the ministry of works, and receiving annual budget allocation for office work, they are Federal Government Agency and the law says any agency that’s owned totally or in part by the Federal Government must respond to FOI requests. Even if it were a private agency using Federal Government money to provide services, it’s also subjected to the FOI Act. 

“In fact the law does not specify who they should not respond to and it applies to both Natural and legal persons, whether they are registered or not registered. They are expected to respond to all of that type of request.”

He further explained that the “reason they are giving for not providing the information is not within the exception that FOI Act listed by which they can deny information. So they are totally wrong.”

He however advised The ICIR and other NGOs who have been denied response to charge them to court to seek help to address the issue.

Also, a human rights lawyer, Festus Ogun, bemoaned the trend, arguing that the explanation is not tenable under Nigeria’s extant laws.

“I think the refusal to provide your organisation with the requested information is a violation of the Freedom of Information Act. The justification for refusal of the information is not tenable under our extant laws. I think the pathway recognized by law is to institute a judicial review at the appropriate court for an order of mandamus compelling the Board to release the information or they face damning legal consequences.

“It is gravely disturbing. It seems that the rule of law has no place in this country. And their recklessness persists because there are no consequences for impunity.”

Diaspora remittances lifeline to forex stability — Experts

Harrison EDEH
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Diaspora remittances lifeline to forex stability — Experts

THE Federal Government has a lifeline on its rough road to foreign exchange stability through forex remittances by Nigerians in the Diaspora, according to some financial experts.

Former President, Muhammadu Buhari, had in June 2020 disclosed that remittances home by Nigerians abroad in the preceeding three years exceeded $25 billion annually, describing it as the highest in sub-Saharan Africa.

President Bola Tinubu has primed foreign exchange unification and fuel subsidy removal as key policy directions of his administration, but there are concerns of negative consequences to the policies.

The concerns revolve around increase in foreign debts, and inflation occasioned largely by foreign exchange volatility.

Another key concern is that the supply side of the dollar to the Nigerian economy is weak, which has seen the naira thrown into all shades of volatility.

To key experts, the Federal Government needs to work harder at targeting Nigerians in the Diaspora.

“The immediate goodwill that arise from this liberalisation is that the stocks and shares have appreciated. We are expecting hot money to come in and go out. The big banks are trading and making huge money,” the Lead Director, Centre for Social Justice (CSJ), Eze Onyekpere, told The ICIR.

“Most importantly, let us target our diasporan brothers and sisters. Most of the money they are bringing in annually is welfare money. Let us set up a special purpose vehicle that will ensure they are part of funding some key projects like rail, road, hospitals. If they see you are honest and not tribalistic, Diasporans can work with you. All they need is a trustworthy government,” Onyekpere added.

Onyekpere believes Diaspora remittances will be a strong foreign exchange boost

He stressed the importance of ensuring that the ease of doing business works effectively to attract investments.

“You must correct the signals in insecurity and increase accountability and transparency in governance,” the CSJ director said.

A professor of Energy Economics at the University of Ibadan, Adeola Adenikinju, told The ICIR that though the foreign exchange reform is experiencing initial volatility now, it would find its level much later with increased supply of the dollar.

“Let us give the initiative more time to be able to soak in more funds. But consistency of the policy remains vital for success,” Adenikinju said.

To a professor of Finance and Capital Markets at the Nasarawa State University, Uche Uwaleke, certain conditions must be fulfilled to ensure proper transitioning to currency devaluation.

Uwaleke: Nigeria has a long walk to foreign exchange unification

“You have seen how the market has reacted to the forex situation already. A country must have sufficient reserves before pegging its currency to the dollar to sustain that. Another precondition is to diversify your export base.

“You can have a managed float system like Nigeria is doing, but transitioning will be done with caution. Our external reserves have dropped to about $1 billion since we commenced this forex unification project. This is why the Federal government and sub-nationals must intensify efforts to ensure increased supply and enable the convergence of the rates,” Uwaleke said.

He posited that the Central Bank of Nigeria (CBN) might need to increase interest rates above 18.5 per cent to enable expected capital inflows.

“Central banks all over the world face a dilemma, and that is why the interest rates need to go up to attract capital inflows from foreign investors. Egypt did a similar policy and have not recovered from it till today. The International Monetary Fund is even telling them that they have not done enough,” he said.

He stressed the importance of Nigeria diversifying its export base to attract more foreign exchange into the economy.

Nigeria’s capital importation keeps dropping, a key concern for foreign exchange market

In the fourth quarter of 2022, total capital importation into Nigeria, according to the National Bureau of Statistics (NBS), stood at $1,060.73 million, lower than the $2,187.63 million figure recorded in the fourth quarter of 2021, indicating a decrease of 51.51 per cent.

When compared to the preceding quarter, capital importation fell by 8.53 per cent, from $1,159.67 million in the third quarter of 2022. The largest capital importation during the period was received from a grouping classified as Other Investment, which accounted for 65.17 per cent ($691.23 million) of total capital imported in the fourth quarter of 2022.

This was followed by Portfolio Investment with 26.89 per cent ($285.26 million) and Foreign Direct Investment (FDI) with 7.94 per cent ($84.23 million).

Disaggregated by sectors, capital importation into the production sector recorded the highest inflow of $392.54 million, representing 37.01 per cent of total capital imported in the fourth quarter of 2022.

This was followed by capital imported into the banking sector, valued at $255.45 million (24.08 per cent), and telecoms, with $168.27 million (15.86 per cent).

Capital importation by Country of Origin revealed that capital from the United Kingdom ranked top in the fourth quarter of 2022 with $455.24 million, accounting for 42.92 per cent.

This was followed by the Republic of South Africa and the United Arab Emirates valued at $119.31 million (11.25 per cent) and $116.82 million (11.01 per cent) respectively.

By Destination of Investment, Lagos state remained the top destination in the fourth quarter of 2022 with $600.54 million, accounting for 56.62 per cent of total capital investment in Nigeria.

This was followed by Abuja (FCT), valued at $424.50 million (40.02 per cent).

Categorisation of Capital Importation by banks showed that Citibank Nigeria Limited ranked top in the fourth quarter of 2022 with $308.72 million (29.10 per cent).

This was followed by Standard Chartered Bank Nigeria Limited with $232.45 million (21.91 per cent) and Rand Merchant Bank with $102.00 million (9.62 per cent).

On annual basis, capital importation was $5,328.88 million in 2022, a decrease of 20.47 per cent from $6,700.51 million in 2021.

Nigeria had adopted a market-driven exchange rate policy three weeks ago, leading to an immediate depreciation of the exchange rate from about N471.67/$1 to an average of N765/$1.

In terms of turnover, the import & export (I&E) window recorded a volume of $198.13 million on Monday, June 26, 2023. Total turnover since the revised I&E window was launched is about $1.4 billion.

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