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NNPCL’s $3.3bn loan deal, Atiku tackles Tinubu, says Nigeria deserves explanation

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Presidential candidate of the Peoples Democratic Party (PDP) in the 2023 elections, Atiku Abubakar, has accused President Bola Tinubu, of not giving an account of the $3.3 billion emergency crude repayment loan controversy involving the Nigerian National Petroleum Company Limited (NNPCL).

The former Vice President asked Tinubu to explain the details of the loan to the Nigerian people, as he bombarded him with many questions.

The NNPCL secured a $3.3 billion emergency crude repayment loan arranged by the African Export-Import Bank, on August 16, 2023 – a transaction targeted at supporting the Naira and stabilising the foreign exchange market.

The $3.3 billion crude-for-cash loan was also aimed at supporting the Federal Government’s monetary and fiscal reforms.

Weeks after the announcement, the Federal Government received $2.25 billion out of the $3.3 billion FX facility from the African Export-Import Bank.

Reacting in a statement on his X account on Thursday, Atiku criticised Tinubu for hoarding the information, while the only available information to the public on the mega-deal was released through sources from the NNPCL.

The former Vice President said a Special Purpose Vehicle called Project Gazelle Funding Limited is driving the deal, and it was incorporated in the Bahamas.

He said, “SPV is the borrower while the NNPCL is the sponsor, with an agreement to pay with crude oil to the SPV in order to liquidate the loan at an interest rate that is a little over 12 per cent.”

The statement added, “What is even more confounding about this deal is why the Federal Government would register a company in the Bahamas, knowing full well the recent scandal of the Paradise Papers that involved that country.

“Curiously also, Nigeria’s current Barrels Produced Daily (BPD) is 1.38 million, and according to the Project Gazelle deal, Nigeria is to supply 90,000 Barrels of its daily production, starting from 2024 till it is up to 164.25 million barrels for the repayment of the loan.

“Now, this is where the details get disturbing because Nigeria’s benchmark for the sale of crude per barrel in 2024 is $77.96. A simple multiplication of that figure by 164.25 will give us a whooping $12bn.

“It is on this note that we are calling on the Federal Government to speak up on this shady deal.

“It is inconceivable that the Federal Government will lead the country to take a loan of $3.3bn with an interest rate that is not more than 12 percent, but with estimated repayment amounting to $12bn.

“That is a humongous differential of about $7b between what is in the details of the deal on paper and what indeed is the reality.”

Atiku insisted that there are questions to be answered on the integrity of this deal, and charged the Federal Government to talk directly on details behind the deal.

He asked, “Has the Federal Government accessed the loan? Is the loan in the government’s borrowing plan as approved by the National Assembly? Who are the parties to the loan, and what specific roles are they expected to play? What are the conditions of the loan, including tenor, repayment terms, the collateral, and the interest rate? And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets?”

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Tariff hike: Tribunal orders substituted service of interim order on MultiChoice

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A Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja has granted an application for substituted service of the interim order, restraining Multi-Choice Nigeria Limited from its plan to increase tariffs on DStv and Gotv packages beginning From May 1.

The three-member tribunal, presided over by Saratu Shafii, granted the applicant’s motion following allegations that officers of the pay-TV firm in the Abuja office refused to receive service of the order and other court documents.

The applicant, Festus Onifade, said on Wednesday that the CCPT bailiff alleged that one of the company’s top managers at the Abuja office said the documents be channelled through their Lagos office, which is the headquarters.

The tribunal, therefore, gave the order of substituted service pursuant to Section 48 of the Federal Competition and Consumer Protection Act (FCCPA), 2018; and Part N, Order 14 Rule 11(1) of the CCPT Rule, 2021.

In the certified true copy of the order of substituted service, Shaffi directed that the ex-parte order in suit number: CCPT/OP/2/2024, be pasted at the corporate headquarters or any known address of the branches of the Multi-Choice Nigeria Limited across Nigeria.

She also ordered that the documents be sent to the company’s “known email address, social media handles and any means of communication publicly known for Multi-Choice and shall also be pasted in the CCPT communication outlet.

The documents had since been pasted at the Multi-Choice Abuja office located at Wuse II.

The tribunal had, on Monday, stopped MultiChoice from increasing its tariffs and cost of products and services scheduled to begin today.

The panel, who gave the order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant, restrained the firm from going ahead with impending price increase pending the hearing and determination of the motion on notice filed before it.

Onifade, in the suit marked: CCPT/OP/2/2024, had dragged Multi-Choice Nigeria Ltd and Federal Competition and Consumer Protection Commission (FCCPC) before the tribunal.

In the suit filed on April 29, Onifade, also a legal practitioner, sought two orders.

These include, “an order of interim injunction of this honourable tribunal restraining the 1st defendant whether by themselves, her privies, assigns by whatsoever name called from going ahead with impending price increase scheduled to take effect from 1st May, 2024, pending the hearing and determination of the motion on notice.

“An order restraining the 1st defendant from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the Motion on Notice.”

Multi-choice had recently announced a price increment across its DStv and GOtv packages effective May 1, 2024.

The pay-TV company claimed the price hike was due to the cost of business operations in Nigeria.

The company had, on April 1, 2022, hike the prices of all its packages despite public outcry.

Prior to the effective date, Onifade filed a suit before Thomas Okosun-led CCPT, seeking an order restraining Multi-Choice from going ahead with planned increase, pending the hearing and determination of the motion on notice dated and filed on March 30, 2022.

Although the tribunal granted the ex-parte motion, directing parties to maintain status quo ante bellum, the company went ahead with the price increase on DStv and Gotv subscriptions and other products on the said date.

The claimant, however, raised the issue of contempt, accusing MultiChoice of disobeying the tribunal order which restrained them from going ahead with the price increase.

He accused the company of having a penchant for disregarding court orders.

And on April 11, 2022, after the arguments by counsel for the parties, the tribunal again ordered MultiChoice to revert back to the old prices by maintaining status quo of its March 30, 2022 order, pending the hearing and determination of the substantive matter.But this was all to no avail as counsel for MultiChoice, Jamiu Agoro, challenged the jurisdiction of the tribunal to hear the matter as the claimant lacked the locus to institute the action.

Agoro had argued that the order of the tribunal made on April 11, 2022, asking MultiChoice to revert to old rates was made against a completed act, the firm, having increased its tariffs on April 1, 2022.

The lawyer argued that MultiChoice had already configured all their devices for the increase in tariff to take effect before the tribunal made its order.

Agoro added that there was no evidence presented before the tribunal of damage that the claimant had suffered.

The Thomas Okosun-led tribunal, on Sept 6, 2022, consequently dismissed Onifade’s suit, saying the power to regulate prices of goods and services does not reside in the FCCPC, the regulatory agency.

According to the tribunal, the power to regulate prices of goods and services only resides in the president.

However, the judgement, which had been appealed against, is presently before the Court of Appeal in Abuja..

Onifade, in the instant suit, is contesting that Multi-Choice had failed to follow due process of law in accordance with Section 128 of FCCPA, 2018, in its announcement of the price hike on the grounds of short notice given to customers.

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Diri sets up committee on new minimum wage

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Gov. Douye Diri of Bayelsa has set up a committee to work out modalities for implementation of a new minimum wage for workers in the state’s civil service.

The committee is headed by Secretary to the State Government, Prof. Nimibofa Ayawei.

Other members included the Head of Service, Mrs Biobelemoye Charles-Onyeama, the Commissioner for Finance, Maxwell Ebibai, his Labour, Productivity and Employment counterpart, Ebiuwou Koku-Obiyai and the Chief of Staff, Government House, Mr Peter Akpe.

The committee has the end of May 2024 to submit its report.

Diri made the pronouncement on Wednesday at the 2024 Workers Day celebration at the Peace Park in Yenagoa.

The governor assured that his administration would implement a new minimum wage once the committee submitted its report, adding that the state workers always have emoluments as their federal counterparts.

Diri stressed that the welfare of workers had always been a top priority of his administration as attested to by the numerous worker-friendly policies he initiated.

He equally promised to commence the building of a new befitting secretariat complex for civil servants to accommodate the increasing workforce.

The state’s helmsman, who described workers as the backbone of development in society, attributed the achievements in his first tenure to the support and contributions of civil servants.

He called for continuous harmonious working relationship with his government in order to bequeath lasting legacies.

The Bayelsa helmsman also approved an annual step increment for civil servants, release of funds for completion of the state secretariat of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

“The committee is to immediately look into what the Federal Government has done on the proposed minimum wage and see the possibility of domesticating it in Bayelsa.

“It is given until the end of May to submit its report.

“My dear workers of Bayelsa, you have done so well. You know that you are the engine room of this government. We have succeeded because you have done so well. We receive commendations everywhere we go.

“In terms of infrastructure, human capacity building and other sectors, we have done well. I say you should continue to keep it up.”

According to him, together, we are building a Bayelsa of our dreams, a beacon of hope, a model of progress and a testament to our unity of purpose.

“The tangible evidence of these fruitful collaborations is that abundantly, we have made it clear for all to see in the plethora of transformative legacy projects that now span the length and breadth of our state, touching the lives of all Bayelsa people.

“Let us continue to work together so that the future of our state will be established.

“Beyond the ongoing renovation, we will look at the option of building a new state-of-the-art secretariat complex to accommodate the expanding workforce,” he said.

Earlier, the workers eulogised the governor for his labour-friendly policies that had improved their working condition.

In a joint address by the chairman of the NLC, Comrade Barnabas Simon, and his TUC counterpart, Comrade Laye Julius, the workers specifically thanked the governor for approving payment of wage award to all categories of workers in Bayelsa.

“We thank you for the regular conduct of promotion exercises and implementation, prompt payment of salaries of workers and pensioners, among others.

“Organised labour in Bayelsa is most sincerely grateful for your kind and favourable disposition to the needs and aspirations of workers in the state.

“Your open-door policies and swift response to most of our demands in the last four years is highly appreciated,” they said.

They, however, appealed for an upward review of the wage award, improved transportation system for workers, and mapping out of acquired lands for civil servants.

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Gov. Sani unveils N500m loans scheme for workers

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Gov. Uba Sani of Kaduna State has unveiled a  N500 million revolving loans scheme for civil servants in the State.
Sani disclosed this on Wednesday in Kaduna during the 2024 May Day Celebration .
Sani symbolically distributed  dummy cheques to some workers amidst cheers while announcing the more economic empowerment initiatives for the workers
He also reaffirmed his commitment to prioritise workers’ welfare and equip them appropriately within available resources.
Sani emphasised the importance of a motivated workforce for the success of his administration’s Rural Transformation Agenda, addressing the theme ‘People First’.
Sani stressed the centrality of citizens in development and governance, highlighting the strategic partnership forged with labour unions to advance workers’ interests and improve living conditions.
He also listed ongoing efforts to attract investments, provide training, and enhance job opportunities for the citizens.
Sani assured continued attention to human capital development and poverty reduction through various government interventions.
The governor further disclosed ongoing consultations with labour unions at both federal and state levels to negotiate a decent salary increase for the state and local government workers.
Earlier, the Chairman of the Nigeria Labour Congress (NLC), Mr Ayuba Magaji, commended Sani for his personal attendance at the May Day Celebration, marking a significant departure from the past nine years.
He also expressed gratitude for the governor’s prompt payment of salaries and allowances as well as the involvement of labour unions in decision-making processes
The highlight of the occasion was a  march past by various unions and affiliates of the NLC as well as the Trade Union Congress (TUC)
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