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Osun under Oyetola not a spendthrift — Govt replies ex-Finance Commissioner

Published

2 years ago

August 15, 2022

…Says it never paid a month salary four times as he did while in office

The Osun Government says the claim by ex-Finance commissioner of the State, Dr. Wale Bolunduro, regarding the finances of the State under Governor Adegboyega Oyetola, is a misrepresentation of facts and outright lies against the person of the governor and the government he superintends over.

The government while insisting that Osun under the Oyetola administration is not a spendthrift, further challenged the ex-Commissioner to be courageous enough to tell the whole world the truth about his inglorious years in Osun where one-month salary was paid four times at intervals.

In a statement, signed by the State Commissioner of Information and Civic Orientation, Mrs. Funke Egbemode, titled: “Wale Bolorunduro: An asset or complete liability?” the government said “To begin with, his claim to have used his contacts to raise funds to modernize Osun is not only false but also ridiculous.

“For God’s sake, how can a single member of a State cabinet under the leadership of a Governor arrogate such glory to himself? For instance, he claimed to have used his relationship with the Governor of Central Bank (‘my former boss,’ he said) to facilitate a two billion naira revolving fund for micro, small and medium farmers, traders and artisans ‘without issuing an ISPO, for any monthly deductions from FAAC…’

“Nothing can be farther from the truth. The said amount was disbursed by the Federal Government through the CBN to all the states of the federation under the Micro, Small and Medium Enterprises Fund, MSMEDF.

“For clarity purpose, the referenced fund was actually put in place by the FG to galvanise entrepreneurship activities across all the states in the country! In Osun, in line with the requirements of the fund, Osun Micro Credit Agency (OMCA) was employed as a vehicle to access the loan in 2014.

“Contrary to Bolorunduro’s claim however, an ISPO was actually issued by him on the State’s local government’s accounts, and the referenced funding was further supported by a Bank Guarantee among other comforts. The former commissioner was simply struggling to sidestep the fact that the State’s finance was in a very precarious situation such that the required ISPO could not be accommodated on the State’s Statutory account.

“To date, the State is still missing opportunities particularly from development partners on the account of the bad position of the State’s finance arising from Bolorunduro’s unpopular stewardship.”

The full statement reads,

“It has become imperative to issue this statement to correct the misrepresentation of facts and outright lies against the person of Osun State Governor, Mr Adegboyega Oyetola, and the Government he heads, by Dr. Wale Bolorunduro, the former Commissioner for Finance in the State, in his recent self-glorifying press conference heralding his eventual defection to the Peoples Democratic Party, PDP.

“While trying to justify his decision to defect to the PDP, a party he has been hobnobbing with openly before the July 16 governorship election, the former Finance Commissioner went on a voyage of self-immortilisation particularly through his repetitive uncouth criticism of the party (All Progressive Congress, APC) that brought him to political limelight in 2011. Ordinarily, all the outbursts of the former Finance Commissioner could have been ignored as usual given his propensity for such self-righteous statements and because this latest one may be the last in his chronicles now that he has unveiled himself as one of the moles in the APC prior to the July 16 gubernatorial election, but for some defamatory remarks he made about the State’s financial transactions under the current administration.

“For posterity sake, critical issues such as Government’s divestment from Omoluabi Savings and loans, Omoluabi conservation funds, among others are considered germane and require detailed clarifications. Hence this statement.

“Let me say from the outset that in the last three years plus, this government has proved that it is not a spendthrift and therefore could not have been reckless with the finances of the State as being insinuated by Dr. Bolorunduro.

“To begin with, his claim to have used his contacts to raise funds to modernize Osun is not only false but also ridiculous. For God’s sake, how can a single member of a State cabinet under the leadership of a Governor arrogate such glory to himself? For instance, he claimed to ‘have used his relationship with the Governor of Central Bank (‘my former boss’, he said) to facilitate a two billion naira revolving fund for micro, small and medium farmers, traders and artisans ‘without issuing an ISPO, for any monthly deductions from FAAC…’ Nothing can be farther from the truth. The said amount was disbursed by the Federal Government through the CBN to all the states of the federation under the Micro, Small and Medium Enterprises Fund, MSMEDF.

“Bolorunduro needs to be reminded further of the bad condition he left the State’s finances due to his many bad financial decisions and unwholesome practices leading to unsustainable level of debts in the State at that time. I am sure he would agree that his failure to make the cabinet list of Ogbeni Aregbesola’s second term in office is enough confirmation of his unsatisfactory performance while in office as the Finance commissioner. Else, why was the former commissioner’s name excluded from Aregbesola’s second term cabinet members list? To date, the State is still missing opportunities particularly from development partners on the account of the bad position of the State’s finance arising from Bolorunduro’s unpopular stewardship.

“On the Omoluabi Conservation Fund, I think Dr. Bolorunduro should be courageous enough to tell the people of Osun the complete story of his inglorious years in the State. Truly the referenced fund was put in place during his time, but the law setting up the fund was repealed much later. Therefore, the Oyetola’s administration could not have inherited the said fund.

“So the former commissioner should take a step forward by providing full accounts of the conservation fund. If indeed such a fund existed before he left office in 2014, how come the State could not meet its minutest financial obligations especially to the workers and other citizens of the State when pressure mounted towards the end of 2014? It was under him that one month’s salary to workers in the State was paid four times at different intervals. If the Commissioner has a short memory, the rest of Osun people don’t.

“On the State’s divestment from Omoluabi Savings and loan, now known as Living trust Mortgage Bank Plc, it is quite laughable that the former commissioner has the effrontery to reference this matter in his press briefing. To clear all doubts, Dr Bolorunduro by his position as the Finance Commissioner then, was the Chairman of the said Bank’s board. The story of the entity when Wale was in charge was a complete replica of Osun State’s finance then. Poor yearly performance, rising bad loans, bad corporate governance practices among others, characterized the bank while Wale was in charge. The efforts of the State to go the route of Initial Public offer (IPO) when the bank was mandated to increase its shareholder’s fund from N1billion to N2.5billion in 2013 (as a State Primary Mortgage Institution, PMI) was principally aimed at restructuring the bank to pave way for productivity and sound corporate governance practices. The desire to diffuse ownership of the bank under the last administration in the State led to the eventual divestment of the State’s stake in the bank.

“The partial divestment which has eventually changed the outlook and performance of the bank is actually in line with the regulatory framework of banks in the country. It is also worth stating that contrary to what obtained under Wale’s regime, the State has for some years been receiving annual returns (dividends) from her investment in the bank. Therefore, contrary to Bolorunduro’s insinuations, Osun government under Governor Adegboyega Oyetola has not sold the said bank but divested partially to align with the regulatory dictates, engender productivity and return on the State’s resources.

“Going by these clarifications, I am sure you will all agree that Dr. Wale Bolorunduro’s stewardship as Commissioner for Finance will never be forgotten in a hurry, not by Osun State workers who sweated blood under the yoke of his decisions or the citizens who will continue to bear the brunt of his ‘wizardry’ for years to come as the state labours to pay debts he took on in the State’s finance corridor. While wishing him well in his new political abode, I’m certain time will eventually prove whether PDP has signed on an asset or a complete liability,” the statement read.

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Power transmission: TCN unbundled, as FG orders registration of new Independent System Operator

Published

14 hours ago

May 4, 2024

NewsDirect

…Nigerians enjoying improved power supply — Presidential aide

…As FG installs more substations in Lagos, Kebbi to boost power supply

The Federal Government through the Nigerian Electricity Regulatory Commission (NERC) has ordered the registration of a new Independent System Operator.

This function was earlier carried out by the Transmission Company of Nigeria (TCN), however, with the new directive, the TCN will cease to act in this role.

This directive Nigerian NewsDirect is coming on the heels of perceived allegations of mismanagement and ineffectiveness of the TCN to address repetitive issues on the nation’s power grid.

It is noteworthy that since privatisation, the national grid has collapsed more than 140 times thus drowning the nation into darkness.

In the order signed by the NERC Chairman, Engr. Sanusi Garba and Vice Chairman, Musiliu Oseni, the TCN has been ordered to transfer all system and market operations related assets, contracts and staff to the new entity.

The Nigerian Independent System Operator Limited will be responsible for managing the national grid and other system operations related market contracts and transactions.

TCN as a successor company of the defunct Power Holding Company of Nigeria, PHCN, was issued with two licenses by NERC as a Transmission Service Provider and Independent System Operator.

The NERC order formally unbundles the TCN into Transmission Service Provider, TSP and Independent System Operator, as prescribed in the Electricity Act 2023.

The Commission’s action is seen as a reaction to the frequent national grid collapses that have seen four nationwide blackouts this year.

The Commission ordered BPE to “incorporate, no later than 31 May 2024, a private company limited by shares under the Companies and Allied Matters Act to carry out the market and system operation functions stipulated in the EA and the terms and conditions of the system operation licence issued to TCN.”

“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (‘NISO’). ii. The object clause of the Memorandum of Association of the NISO as provided in section 1 6(2) of EA shall be as follows a. to hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify; b. to carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria;

“c. to negotiate and enter into contract for the procurement of ancillary services with independent power producers, successor generation licensees, etc and generally carryout market and system operations functions as specified under the EA and the terms of its license in the interest of market participants and system users; d. to carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria; the income and property transferred to it by the TCN or whensoever derived shall be applied solely towards the promotion of its objects as set forth in its incorporation documents and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, or bonus otherwise howsoever, by way of profit to the subscribers: provided that nothing herein contained shall prevent the payment in good faith of remuneration to any contractor or staff of the company in return for any services rendered to the Company.”

The Commission said the NISO’s initial subscribers shall be the Bureau of Public Enterprises and Ministry of Finance Incorporated (MOFI) while the final shareholding structure of NISO shall be determined after further consultations with government, market participants and industry stakeholders.

Meanwhile, a Presidential aide to President Bola Ahmed Tinubu has stated that Nigerians have been enjoying improved power supply.

The President’s Special Assistant on Social media, Dada Olusegun in a series of tweets made this known.

According to him, “Nigeria’s second largest hydropower plant; the ZUNGERU POWER PLANT, was connected to the national grid last week leading to an improved supply in electricity to many areas across the country.

“The ambitious power plant represents a major achievement of the APC led government starting under former President Muhammadu Buhari who handed over engineering, procurement, and construction to a Chinese consortium comprising China National Electric Engineering Company (CNEEC) and Sinohydro after initial construction began in 2013.

“President Tinubu ensured continuity with the concession process which is set to earn Nigeria $70m annually for the next 30 years for managing the complex.

“The gigantic reservoir has a capacity to hold 10.4bn cubic meters of water. The power project is estimated to generate 2.64 billion kWh of electricity annually, which will meet close to 10 percent of Nigeria’s total domestic energy needs. Slowly but surely, we will get there,” He tweeted.

Similarly, more mobile substations acquired under the Federal Government-Government Siemens deal are being installed in parts of the country to boost the wheeling capacity of the transmission network.

Minister of Power, Adebayo Adelabu who inaugurated the mobile substations in Lagos and Birnin Kebbi, said the infrastructure stands as a beacon of hope for businesses and households towards achieving uninterrupted power supply.

The two Substations installed have a total wheeling capacity of 123 megawatts which is expected to enhance electricity supply.

Minister of Power, Adebayo Adelabu, described the project as a testament to the renewed hope agenda of President Bola Tinubu in accelerating the delivery of the Siemens project thereby transforming the power sector.

The power minister implored Nigerians to safeguard the infrastructure against vandalisation as the success of government interventions in the sector hinged on collective responsibility.

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2024 is for expansion, higher dividends for our shareholders — Transcorp Hotels MD

Published

14 hours ago

May 4, 2024

NewsDirect

…Gives reasons for proposed 5,000 capacity event centre in Abuja

By Emmanuel Atokolo

The Managing Director/CEO of Transcorp Hotels Plc, Dupe Olusola has stated that the year 2024 for the company is targeted at expansion and delivering higher dividends for her shareholders.

Speaking in an interview on Arise TV, Dupe explained that the company is solely focused on expansion as they look to remain a leading Hospitality brand in Nigeria through massively investing in the Hospitality business.

The Transcorp Hotels MD also seized the occasion to clarify why the company is embarking on the construction of an event centre.

Dupe explained that Transcorp is building a 3,500 to 5,000 capacity events centre in Abuja to ensure that high profile events can be held in Nigeria and in turn generate revenue for themselves while also tackling unemployment.

She also mentioned a 315 rooms 5-star Hotel at Ikoyi on a 14,000 square metres land that will provide a top notch leisure and relaxation environment with side attractions.

When quizzed about how Transcorp has been able to increase asset growth and revenue base, the CEO explained that

Dupe stated that all the stakeholders during the AGM were pleased with the financial statements and it was approved that a 20 kobo dividend be paid to all shareholders which is a 54% increase from the previous year which was 13 kobo.

She added that the Hotel recorded 72 percent growth in the first quarter (Q1) of 2024, 5 billion in net profit and Occupancy rate increased to 83 percent as guests are always happy to come back and bring potential guests too.

“Profit before tax also increased by 105 percent, so also did revenue as it increased by 36 percent amounting to N41.5 billion.” She narrated.

The MD added that to add to the shareholders joy over the profitability witnessed so far, there are further plans to ensure that they make more progress in the current year.

She said that 2024 will be about expansion through an aggressive budget.

Likewise, Dupe mentioned that they have a Hospitality business platform named “Aura by Transcorp PLC” through which you can make online bookings from anywhere.

She noted that it also helps to enlarge their foot prints as inventory has increased to 5000 and they are looking to further solidify their rating in Nigeria in the next 2-3 years, then expand outside the shores of Nigeria in the next 3-5 years.

In her response to how Transcorp made much profit in the Q1 of 2024, Mrs Olusola clarified that resilience has been a key factor as they don’t take for granted that they are a leading Hospitality brand but they strive to improve their services as they continually work on guest experience which is a vital factor in the Hospitality business.

She also explained that the Covid era taught them to think outside the box which motivated them to make arrangements to host diverse guests as some people don’t book rooms but come with their family to just relax and go back.

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Customs FX rate hiked to N1,441/$

Published

14 hours ago

May 4, 2024

NewsDirect

The foreign exchange (FX) rate for import duties to N1,441.58 per dollar has been hiked by the Nigeria Customs Service (NCS) as observed on Friday on the federal government’s single window trade portal.

The increase represents a 4.94 percent as against the N1,373.64/$ adopted on May 1.

The rate adopted by Customs was observed on Friday on the federal government’s single window trade portal.

The customs typically adopts FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.

The rate is higher than the official FX rate of N1,402/$ recorded on May 2, and N1,390 traded on May 1.

Recall that according to CBN on February 23, the Customs and other related parties must adopt the closing rate in the official window for import duty.

The apex bank said the FX rate at the point of importation should be used for import duty assessment until the termination date and clearance are finalised.

Meanwhile, the Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf said such a movement could be detrimental to the economy.

He said the economy’s real sector activities such as planning, production, and other activities are negatively impacted by the frequent changes.