Doyin Okupe Defends Tinubu’s Victory, Claims All Nigerian Elections Have Been Rigged

Doyin Okupe, former Director-General of the Labour Party’s presidential campaign organization in the 2023 elections, has claimed that all elections in Nigeria have been rigged to some extent. The only exception, according to Okupe, might have been the annulled 1993 election, which was won by the late Chief MKO Abiola.

Okupe made these remarks on Monday while addressing journalists in Lagos, defending the Supreme Court’s decision on the 2023 presidential election, which confirmed Bola Tinubu as the winner. He also responded to criticism from supporters of Labour Party candidate Peter Obi, who accused him of abandoning their cause and supporting Tinubu’s administration.

Okupe argued that despite allegations of rigging, life must go on, and any grievances should be addressed in future elections. He compared the situation to the United States, where many Republicans believe the 2020 election was rigged, yet they chose to wait for the next election to address their concerns.

THE NATION NEWSPAPER PUBLICATION OF AUGUST 16,2024

By Chief Livinus Ochejile

Friday, August 16, 2024, witnessed yet another internal contradiction of the Tiv, with the letter addressed to the President, His Excellency Bola Ahmed Tinubu, GCFR, captioned, GOVERNOR ALIA’S ATTEMPT TO PUT BENUE APC IN JEOPARDY – OUR RESISTANCE by the Concerned Benue APC Progressives Forum (CBAPF), as published in the Nation Newspaper. This is typical of the internal ‘Pull-Him-Down’ syndrome of the Tiv, through petition writing against each other as reminiscent of the famous ‘You Tarka me, I Dabo you’ of the seventies. This practice, to say the least, is most distractive, retrogressive, and a complete ridicule of the Tiv Nation. For such a document to have been initiated and signed by a section of the top echelon of the Tiv political stakeholders in this day and age speaks volumes about the quality of political leadership that has trailed and the consequential position of the Tiv in Nigeria’s political equation from 1999 to date.
It will be necessary to attempt to set the records straight and expose the misrepresentations, then follow up with a balanced analysis and conclude with the call for a unified front in line with the vision of His Royal Majesty, Prof. James Ortese Ayatse CFR, Tor Tiv V, in projecting the Tiv under an amicable and transformative political leadership.
Whereas the emergence of the AD in the political activities leading to the 1999 democracy was spearheaded by Gov. Moses Orshio Adasu of blessed memory, no political capital was achieved in Benue State beyond the Chf. Barnabas Gemade led PDP, and the late Wantaregh Paul Iorpuu Unongo led APP. Prof. Sen. David Iornem, on the eve of the 2011 general elections, reintroduced the AC/ACN in the Benue politics. The fallout of Sen. George Akume with his successor, Gov. Gabriel Torwua Suswam, led to Akume cross-carpeting from PDP to AC/ACN, where he won his second tenure in the Senate. The sweeping popularity of the ACN was anchored on the political dynasty of Wantaregh Paul Unongo, by introducing his nephew, Prof. Steve Ugbah, as the party’s gubernatorial candidate. ACN’s change mantra with the broom insignia, heralded by the local Slogan “Ugbah Nyor Shor Chenji” (meaning the entry of Ugbah has changed the electoral equation), swept through like a tsunami that delivered Sen. Akume’s senatorial bid against the indefatigable PDP in Benue State. Besides this senatorial seat, the PDP held power in Benue State, with few other seats captured by the ANPP. The 2023 formation of the APC in Benue State was almost marred by the internal revolt of the leadership style from the ACN, as the ANPP, CPC, and the splinter PDP collapsed into the new APC. The ACN-led leadership of the APC in the state stoutly blocked the entry of many political stakeholders, which would have enabled a smooth sail for the new party. Chf. Gemade later left the PDP to help clench the Zone A Senatorial seat for the APC. Chf. Samuel Ortom left after losing the PDP gubernatorial ticket to run as the APC flag bearer. It is on record that in Benue, the PDP still won most of the State Assembly seats in the 2015 general elections; however, some PDP members voted for the more popular former PDP member, Samuel Ortom, to win the Governorship ticket for the APC.
The second mismanagement of a governor sponsored by H.E. Sen. (Dr) George Akume led to Gov. Ortom abandoning the APC to return to PDP with the Magic wand that swept the short-lived APC out of power in Benue. The recruitment of the famous exorcist and healer Reverend Gentleman, Fr. Hyacinth Iormem Alia, into the APC was indeed the master stroke that stormed the Benue political landscape like the overwhelming Tsunami it was. He won the governorship with a never-imagined landslide and has maintained a record that stands apart from any before him. Many in the Benue APC that won elections in 2024 rode on the back of Fr. Alia’s popularity, as some cannot deliver their polling units to date. It is only fitting to acknowledge the critical contributions of others in bringing home trophies for any team. Politics is a team event and never an individual acclaim to victory.
The opening and concluding statements of the petition, “…that we the undersigned foundational stakeholders and leaders of the Party from 1999 beginning with AD, AC, ACN, and now APC, deem it necessary to publicly resist the attempt by the Executive Governor of Benue State to jeopardize and dwindle the electoral fortunes of the Party in future elections” and “We wish to draw the attention of the presidency and leaders of the party that the current structure of our party in Benue state has been intact right from the days of AD, AC, ACN, and now APC, has remained strong and loyal to President Bola Tinubu.” are a misrepresentation of facts. Many listed stakeholders were not even politicians who participated in the serialized political parties. Some, at best, joined only the APC and, at various times, or moved from the PDP, but not necessarily as foundation members. How could the leadership of the Benue AD under Gov. Adasu or AC under Sen. David Iornem be the same as Akume’s structure in the ACN? Akume’s insistence on installing the ACN leadership in the APC without due consideration of the ANPP and those from the PDP sparked the initial challenges of the Benue APC. His lonesome leadership style frustrated the participation of many strategic stakeholders. These sweeping and exaggerated claims aim to hoodwink Mr. President into the false security of long-standing followership by a few while edging out the trusted and emerging political juggernauts that threaten most of the empty political barrels.
The Benue political leadership problem started in the PDP in 2005/2006, followed through to the AC/ACN, and has trailed the APC with petitions at every stage of the party. It didn’t start today. In this life, some are gifted with divine providence, as evidenced in the political exploits of H.E. Sen. (DR) George Akume, Secretary to the Government of the Federation. To have been sponsored by Chf Barnabas Gemade to become the Governor of Benue state from a very humble background in 1999 to three-time Senator including Senate Minority Leader, then Minister of Special duties to President Buhari, and now Secretary of the Government of the Federation is not a small feat. Sen. Akume has also been responsible for the emergence of all three governors who came after him in Benue State. He has surpassed the political trophies of his late uncle, Chf. Sen. J.S. Tarka. Sen. Akume remains the political colossus of Benue State. To always resort to political conflicts with all three governors he sponsored spells his consistent wrong choices or poor managerial style, as all three have varying personalities. He has consistently been on the warpath with his benefactors, Chf. Sen. Gemade and Sen. Dr. Iorchia Ayu.
The Concerned Benue APC Progressives Forum claimed that “…we are making this publication, conscious that if Benue is united and becomes a better place today, our unborn children will inherit the legacies and benefit from our development agenda today. The present status quo where deep rooted animosity and distrust have taken center stage will continue to weaken the cord of our collective existence and visit excruciating harm on all of us.” From the foregoing, it is clear that Akume sowed the seeds of distrust by abandoning his benefactors. The culture of persistent conflicts with all the three Governors after him predicates the unity of the State only on the whims and caprices of the one and only leader, H.E. Sen. (Dr) George Akume. The differences between Ortom and Suswam, notwithstanding his vendetta against Suswam, were greatly fueled by the leader’s desire to get back at Suswam. What exactly will that development agenda under his leadership be as the expected legacies for the unborn children under such a cantankerous and divisive leadership style? The anxiety of the Concerned Benue APC Progressives Forum over the influence of the invincible Sen. Suswam of the PDP in the installation of the APC Speaker of the Benue state House of Assembly and Suswam’s continued influence on Gov Alia as captured in the published pictures of the two, speaks to an unending fear and continued witch hunting of the former Governor and Distinguished senator from Benue. How can trust ever be built among the Benue political leadership?

It is intriguing to know what defines Akume’s socio-economic and political agenda for his people, the Tiv, Benue State, and the Nigerian Minorities. Identifying the political philosophies of JS Tarka, Aper Aku, and Paul Unongo is straightforward. The Developmental gains and political ascendancy of Iorchia Ayu to the Senate Presidency under the short term of Adasu, Mr. Infrastructure, and the many elevated Benue indigenes of substance to the national level defined Suswam, and Samuel Ortom was known for the anti-open grazing and defensive stance against the genocidal attacks and forced land occupation of the Benue valley by the terrorist Herdsmen. Each has made their imprint in the defense of our people for posterity.
While Tinubu and Akume were colleague governors, Lagos State witnessed enormous wealth-creation initiatives, the empowerment of the ‘Area Boys’ off the streets, the aggregation of the first eleven in the South-Western Geopolitical Zone, which many were later hoisted to the federal level, including a Vice President, and the unification of the Zone like none in Nigeria. All Lagos State governors, after Tinubu, have continued with the culture of outshining their predecessors in the development of the State. In Benue, all the wealth-creation initiatives of the legendary Gov. Aper Aku were grounded or sold out, Local governments demobilized, and the quality of leadership was grossly compromised. Not one of the commissioners, advisers, heads of government agencies, or top civil servants was good enough to be elevated as he rose to stardom. Akume’s continued reign has been a hurricane that runs through Tiv Land and Benue State.

The CBPF claims, “As concerned leaders and stakeholders of the party in the State, we are deeply committed to sustaining the victory the party recorded in the last General Elections to establish a standard platform for winning future elections.” This is debatable, as past mistakes with Govs Suswam and Ortom are obviously being repeated. The anti-party activities that blocked the electoral fortunes of the party’s flag bearer, Steve Ugba, followed soon after Akume’s senatorial win under the ACN but were masked under the leader’s victory. Could this be a culture of self-preservation against Party fortunes? How strategic was Amb. Steve Ugba, with a category A posting to Russia, being replaced with Amb. Tarzoor to Namibia? Why were senior APC foundation members like Sen. Prof. Daniel Saror, late Amb. Mike Gbasha, the ACN deputy Governor Candidate, Young Alhaji Usman Abubakar, sidetracked to leave the Benue APC.
When all hope was lost because of the futility of petitions against Akume’s bungling of the Political Parties under his control, it is paradoxical to have one orchestrated to secure his stranglehold on the Benue APC, boomerang to erase his power in the twinkle of an eye! What stopped these APC super stakeholders from signing the petition if the concerns of this group were authentic and genuinely popular? These include the former deputy governor Chf. Steve Lawani, Former multiple National Party chairman, Chf. Sen. Barnabas Gemade, Former National Chairman, Minister, and Campaign DG of President Buhari, Chf. Audu Ogbeh, Former Senate President Ameh Ebute, Former AGF Michael Aondoakaa, Ambassador of Nigeria to Russia, Prof. Steve Ugba, Rep. Solomon Wombo, The Speaker of the Benue State House of Assembly, Rt. Hon. Hyacinth Aondona Dajoh, Rt Hon. Emmanuel Jime, Prof. Terhemba Shija, and all the other APC gubernatorial aspirants.
The CBAPF accused Gov. Alia, “Strangely, the Governor has persistently launched attacks on Federal appointees and members of the National Assembly from the state who are out to propagate the programs and policies of the President Tinubu-led Administration.” There is nothing to suggest any poor relationship between Gov. Alia and Mr. President, so why such an accusation that seeks to create bad blood between the two? Seeking to ruin this relationship will have the most unfortunate consequences on the political fortunes of Benue State. Yet this is coming from the same group that claims to aspire to the unity of Benue State to become a better place and for our unborn children to inherit the legacies and benefit from our development agenda today!!! The Governor is also lobbying Mr. President for National appointments for the Benue people. Why, then, would he be antagonistic against Mr. President’s appointees? If it is true that Gov. Alia “initiates destructive propaganda against them and calls them names such as “BOKOTI MBAIOROV” meaning people who are hollow as a bucket, “KEMPE MBAIOROV” meaning people as insignificant as panties,” there must be more to it than meets the eye. Could the Governor be echoing the general complaints about the quality of leadership recruitment and representation from Benue by the leader? Alternatively, could these appointees’ poor performances and refusal to effectively convey a positive federal presence in Benue state in helping the Governor promote the APC account for venting such frustration?
It is very instructive, however, to follow the reconciliatory path of H.R.M. Prof. James Ortese Ayatse CFR, Tor Tiv V, in his quest to bring his sons, the Governor, and the SGF together in a seamless working relationship. The position of the Governor of the State as the leader of the Party is not in doubt, as exemplified by the intelligent move of Mr. President, as a prudent and dynamic politician, in handing over the structure of the Benue APC to Gov. Alia. It behooves the Governor to be large-hearted, very inclusive, and accommodating in reaching out to his benefactor to break the vicious cycle of distrust and political anarchy that has trailed Benue since 1999. Reconciling the political leadership under his Priestly direction of equity, justice, and peace in an environment that celebrates excellence and creates wealth for all will deliver the transformation of the State and elongate his governorship in the most extraordinary ways. Gov. Alia can pull together all the other two former Governors and deputies as you consolidate a proper advisory council of elders to have a sense of belonging and ownership and guide their participation for a peaceful and prosperous Benue State, to the Glory of God Almighty.
Long live Gov. Alia, Benue State, Mr. President, and the Federal Republic of Nigeria.

Chief Ochejile, writes from Agatu in Benue state

Coalition Demands Sack of NNPCL GMD, Kyari, Over Leadership Failures

In a powerful display of public dissatisfaction, the Coalition of Concerned Civil Society Organizations of Nigeria, led by its Convener, Comrade Aminu Abbas, has called for the immediate dismissal of Mr. Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL). The coalition, in a mass protest in Abuja, cited Kyari’s alleged gross mismanagement, incompetence, and acts of economic sabotage.

The protest, which held at the Abuja Unity Fountain, saw Nigerians display placards of anger and frustration. Some the placards brandied by the protesters reads: “We are tired of hearing stories about our refineries”, No direction, Kyari is just drifting with the wind”, Probe Kyari for under remittance of oil proceeds” and “We want accountability in the affairs of NNPCL”. The protesters demanded immediate action from President Ahmed Bola Tinubu.

In his address to the crowd, Comrade Aminu Abbas did not mince words. “We are not just here to protest; we are here to voice the frustrations of millions of Nigerians who have been pushed to the brink by the failures of one man—Mr. Mele Kyari,” Abbas declared. He criticized Kyari’s tenure, describing it as a “dismal scorecard” that has left Nigerians questioning the integrity and effectiveness of the NNPCL.

The coalition while decrying the state of disrepair of the refineries, alleged importation of adulterated petroleum products and sabotage of local refineries claimed that under Mr. Kyari’s leadership, the situation has gone from bad to worse, with no end in sight.

“Why do we, the people, have to endure endless queues, inflated prices, and the daily uncertainty of whether we can fuel our vehicles or power our homes? The answer lies in the gross incompetence and mismanagement that have become the hallmarks of Mr. Kyari’s leadership,” the coalition claimed.

“We ask: what has he done to alleviate this crisis? Where are the solutions? Why are our refineries, which should be the backbone of our fuel supply, still in disrepair?

” It is clear that Mr. Kyari has failed to take the necessary steps to resolve these issues. Instead, he seems intent on maintaining a status quo that benefits only a select few while the masses suffer.”

The Coalition thereby demanded the immediate removal of Mr. Mele Kyari from his position as Group Managing Director to restore sanity in the oil sector of the economy.

It noted: “To President Ahmed Bola Tinubu and all those in positions of power, we say this: the time to act is now. Show us that the Renewed Hope Agenda is not just empty rhetoric. Show us that you stand with the people, not with those who profit from our misery.

“Mr. Kyari must be shown the way out, and the NNPCL must be reformed to serve the interests of all Nigerians. We will not be silenced. We will not be ignored. We will continue to raise our voices until justice is done and our demands are met.

“We are at a critical juncture in our nation’s history. President Ahmed Bola Tinubu’s Renewed Hope Agenda promises a new beginning for our country, a path to prosperity and security for all Nigerians. But how can we achieve this vision with individuals like Mr. Kyari at the helm of our most critical national assets? His actions—or lack thereof—are in direct contradiction to the President’s agenda.

” It is clear that Mr. Kyari cannot be an envoy of this new hope. Instead, he stands as an obstacle, a relic of the old ways that have brought us nothing but pain and despair.”

China contributes wisdom, strength to addressing global development challenges

By Yu Zirong

Development is a timeless theme for humanity. As the largest developing country, China has always been an active contributor to global development, providing new opportunities to the world through its own progress.

China has put forward initiatives such as the Belt and Road Initiative and the Global Development Initiative (GDI), actively promoting international development cooperation to higher quality and levels. This demonstrates China’s strong sense of responsibility as a major country in deepening South-South cooperation and promoting global development.

Since Chinese President Xi Jinping proposed the Belt and Road Initiative in 2013, China has provided training to over 100,000 professionals from more than 120 Belt and Road partner countries and helped lift nearly 40 million people out of poverty.

In recent years, through mechanisms such as the Global Development and South-South Cooperation Fund, the China-UN Peace and Development Fund, the South-South Cooperation Fund on Climate Change, and the Lancang-Mekong Cooperation Special Fund, China has continuously increased resource input, optimized cooperation methods, and expanded financing channels to support the common development of countries.

A large number of infrastructure projects, such as the China-Maldives Friendship Bridge and the New Gwadar International Airport in Pakistan, have been successfully implemented.

Additionally, small-scale yet impactful projects like Juncao technology, hybrid rice production, the Luban Workshop, the Access to Satellite TV for 10,000 African Villages Project, and the “Bright Journey” Program of cataract surgery have become well-known brands.

These projects have significantly improved the livelihoods of local communities and empowered the economic and social development of the respective countries, and have been welcomed by developing countries.

In recent years, multiple crises have converged, with global economic growth slowing down and the development agenda facing setbacks. The implementation of the United Nations 2030 Agenda for Sustainable Development has been progressing slowly.

Faced with the deepening uncertainty in global development prospects, Xi has put forward the GDI, emphasizing the importance of common development for all humanity and actively bringing development back to the center of the international agenda.

The GDI aims to accelerate the implementation of the United Nations 2030 Agenda for Sustainable Development, focusing on the most urgent livelihood needs of developing countries.

Drawing on its historic achievements in poverty alleviation, China shares its experience and provides poverty reduction solutions to other developing countries. It has established agricultural technology demonstration centers to help address food crises. It has built low-carbon demonstration zones to help other developing countries tackle climate crises and achieve green and low-carbon development. China mobilizes resources from various parties to contribute to the global development fund, with Chinese financial institutions launching a $10 billion special fund specifically for the implementation of the GDI.

Currently, China is comprehensively advancing 32 practical measures to implement the GDI, with over 500 projects completed or underway, injecting new impetus into addressing the global development deficit.

Under the guidance of the GDI, China is taking concrete actions to promote the building of a global community of development with a shared future and enhance the effectiveness of development cooperation among all parties, so as to achieve common development that benefits all of humanity.

China will continue to actively contribute to improving global development governance, further leveraging platforms and mechanisms such as the Forum on China-Africa Cooperation, the China-Arab States Cooperation Forum, and the China-Community of Latin American and Caribbean States Forum.

It will strengthen cooperation with international organizations, regional organizations, and financial institutions, and mobilize government, business, and social forces to participate in international development cooperation.

“Global South” is an important force in promoting world peace and development. As a member of the “Global South,” China will continue to deepen South-South cooperation, enhance the voice and influence of the “Global South” in international affairs, and work together with all parties to actively implement GDI. It will promote deeper and more substantial international development cooperation, contribute wisdom and strength to addressing global development challenges, and make greater contributions to making global development more robust, greener, and healthier.

(Yu Zirong is the deputy director of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.)

Police Declare Briton and Nigerian Wanted for Alleged Plot to Overthrow Nigerian Government

The Nigeria Police Force has declared British national Andrew Wynne, also known as Andrew Povich, and Nigerian Lucky Obiyan wanted for allegedly attempting to overthrow the democratically elected government of Nigeria. The police accuse Wynne of building a network of sleeper cells and using a school as a cover to facilitate his plans.

Key Points:

  • Andrew Wynne’s Alleged Role: The police claim Wynne, operating under the guise of an education institution, directed and financed efforts to destabilize the Nigerian government. He reportedly provided substantial financial support and operational guidance to his Nigerian collaborators.
  • Lucky Obiyan’s Involvement: Obiyan is identified as Wynne’s local coordinator. Both individuals have reportedly fled the country, prompting a global search.
  • Police Investigation: The authorities have apprehended nine suspects linked to the plot, who allegedly received foreign funding to incite violence and create unrest. The investigations are ongoing, and the suspects are accused of violating the Terrorism (Prevention) Act 2011.

The police are continuing their efforts to track down Wynne and Obiyan, as well as to address the broader network involved in these subversive activities.

China-Africa cooperation fosters Africa’s regional economic integration

By Zhang Zhiwen

Africa has witnessed a steady process of regional economic integration in recent years. In February 2024, the African Union (AU) launched the Second 10-Year Implementation Plan of Agenda 2063 during the 37th AU Summit.

Mohamed Ould Cheikh Ghazouani, Mauritanian president and chairperson of the AU for 2024, said that the AU is committed to unleashing the development potential of the African continent, promoting regional economic integration, increasing infrastructure connectivity, and enhancing agricultural productivity, so as to ensure the smooth implementation of the second 10-year implementation plan.

The African Continental Free Trade Area (AfCFTA) was officially established in July 2019 and went into operation in January 2021. It aims to facilitate trade and investment and achieve the free movement of goods, services, and capital across the African continent through tariff reduction and removal of trade barriers. It works to create a large single market of over 1.3 billion people and with a combined gross domestic product of $2.3 trillion.

According to the Economic Development in Africa Report 2023 released by the United Nations Trade and Development (UNCTAD), the AfCFTA offers advantages by easing regional market access and strengthening production chains across the continent, helping African domestic industries become more prepared for the global arena.

As Africa’s largest trading partner, China actively supports African regional economic integration and the development of the AfCFTA. Recent years have seen an expansion in both the volume and quality of trade between China and the African continent.

According to the China-Africa Trade Index, published for the first time in 2023, the value of China’s imports from and exports to Africa increased from less than 100 billion yuan ($14 billion) in 2000 to 1.88 trillion yuan in 2022, a cumulative growth of over 20 times. In 2023, the China-Africa trade volume reached a record high of $282.1 billion, a year-on-year increase of 1.5 percent. Among them, China’s imports of African nuts, vegetables, flowers and fruits increased by 130 percent, 32 percent, 14 percent, and 7 percent year-on-year, respectively. Meanwhile, Chinese exports of new energy vehicles, lithium batteries, and photovoltaic products to Africa increased by 291 percent, 109 percent, and 57 percent year-on-year, respectively, strongly supporting Africa’s green transition.

China and the AfCFTA Secretariat have jointly established an expert group for economic cooperation, aiming to enhance the sharing of policies and experiences to facilitate trade and investment. Both sides have been deepening cooperation in areas such as infrastructure, trade and finance, industrial investment, talent training, and capacity building, providing continuous support for Africa’s regional economic integration.

Over the past decade, China has provided Africa with development support as much as it can and has been involved in the construction of over 6,000 kilometers of railways, 6,000 kilometers of roads, and more than 80 large power facilities in Africa.

Among them, the 2Africa submarine cable project, invested and developed by China Mobile International and other companies, encircles the African continent with a total length of over 45,000 kilometers. Once completed, it will become the longest submarine cable in the world. This cable project will deliver much-needed internet capacity and reliability in Africa, promote digital transformation in sectors such as healthcare, education, and finance, and provide digital support for the regional economic integration of the African continent.

In August 2023, at the China-Africa Leaders’ Dialogue, China proposed to launch the Initiative on Supporting Africa’s Industrialization, the Plan for China Supporting Africa’s Agricultural Modernization, and the Plan for China-Africa Cooperation on Talent Development, to help Africa bring its integration and modernization into a fast track.

According to an article published in the African Leadership Magazine, large-scale infrastructure projects, like the building of roads, trains, ports, and power plants, are common in China. These investments support economic growth and regional integration by filling the infrastructural deficit in Africa.

James Mwangi, chief executive officer of Equity Group Holdings based in Kenya, said that China is an important source of investment for Africa and the largest export market for African countries. This strong support has enabled African nations to participate in global trade.

He said Africa welcomes advanced financial payment tools from China, which can help the continent achieve financial integration and inject new momentum into global financial infrastructure connectivity.

Nigeria’s Foreign Trade Payments Drop by 57% Amid Forex Crisis

Nigeria’s foreign trade payments, made via Letters of Credit (LCs), have plummeted by 57.04% in the first seven months of 2024, totaling $391.91 million compared to $912.35 million in the same period in 2023. This significant decline, highlighted in the Central Bank of Nigeria’s (CBN) weekly International Payments Data, reflects the ongoing foreign exchange (forex) crisis, escalating customs duties, and the exit of several multinational companies from Nigeria.

Letters of Credit are essential payment methods used for importing goods into Nigeria, where a bank guarantees payment to the exporter once the importer provides the necessary documentation.

The highest LC payments recorded in 2024 occurred in February at $102.59 million, with subsequent months showing a fluctuating trend. Analysts attribute the sharp decline to the unstable exchange rate and other economic challenges, such as high customs charges and the exit of major international companies from Nigeria.

Forex Market Challenges

The naira has depreciated by approximately 70% since President Bola Tinubu took office in May 2023, exacerbating the forex crisis. Attempts by the CBN to stabilize the naira and improve dollar liquidity have yet to yield significant results. The reduction in LC payments is seen as a direct consequence of these challenges, as Nigerian businesses struggle to secure the foreign currency necessary for trade.

Expert Opinions

Tunde Amolegbe, Managing Director of Arthur Steven Asset Management Limited, pointed out that the decline in LC payments was expected given the current economic instability. He suggested that recent tax waivers on essential food imports might offer some relief, and emphasized that a stable forex market, lower interest rates, and a harmonized tax regime could improve the situation.

Tajudeen Ibrahim, Director of Research and Strategy at Chapel Hill Denham, noted that some Nigerian companies, including MTN, have been clearing their LCs to mitigate the negative impact on their earnings and balance sheets. He expressed optimism about future LC payments, expecting an improvement in dollar liquidity.

Impact on the Economy

Rotimi Fakayejo, an economy and capital market analyst, highlighted the inconsistent availability of forex as a key factor in the decline of LC payments. He noted that the reduced supply of foreign currency has slowed down import activities, particularly in the automotive sector, where imports of new and used vehicles have significantly decreased.

Fakayejo also suggested that the slowdown in LC payments might ultimately benefit the economy by reducing reliance on imports and encouraging local production. With the expected start of operations at local refineries, including the Dangote Refinery, there is hope for increased dollar availability and reduced need for importing petrol.

This forex crisis has deeply impacted Nigeria’s foreign trade, with the ripple effects felt across various sectors of the economy. However, there is cautious optimism that ongoing adjustments and policy measures may eventually lead to stabilization and growth.

Dangote Refinery Set to Launch Petrol Sales After Successful Test Run

The Dangote Petroleum Refinery is poised to begin selling Premium Motor Spirit (PMS), commonly known as petrol, following a successful test run of the product, The PUNCH has learned. The 650,000-barrel-per-day refinery is now in the final stages of rolling out its first commercial batch of fuel.

Industry insiders have confirmed that the product will soon be available on the market. Sources indicate that both the Federal Government and Dangote Group are finalizing the details for the distribution of the petrol, with the Nigerian National Petroleum Company Limited (NNPCL) currently authorized as the sole distributor of the Dangote-produced fuel.

The refinery, which initially aimed to release its first batch of petrol in June, faced delays due to crude oil shortages and a dispute with the Nigerian Midstream and Downstream Regulatory Authority, which alleged that the refinery had produced substandard diesel. The intervention of the Federal Government, which facilitated the supply of crude oil to the refinery in local currency, has helped resolve these issues.

Earlier this year, the Dangote Group had expressed concerns that international oil companies (IOCs) were not selling crude oil to local refineries, preferring instead to export it to foreign markets, particularly in Asia. The group accused the IOCs of inflating crude prices by selling through foreign agents, driving up local costs. Despite claims by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that it had facilitated the supply of over 29 million barrels of crude oil to the refinery, Dangote officials stated they had yet to receive these allocations.

As the Dangote Refinery prepares to launch its petrol sales, Nigerians are hopeful that the new supply will help reduce the soaring pump prices of PMS across the country.

FG Arraigns #EndBadGovernance Protesters for Treasonable Felony

On Monday, the Federal Government arraigned 10 #EndBadGovernance protesters before a federal high court in Abuja, charging them with treasonable felony, an offense that carries the death penalty. The protesters, who were arrested in Abuja, Kaduna, Kano, and Gombe, are accused of planning to destabilize Nigeria.

The defendants, identified as Michael Tobiloba Adaramoye (aka Lenin), Adeyemi Abiodun Abayomi (aka Yomi), Suleiman Yakubu, Comrade Opaluwa Eleojo Simeon, Angel Innocent, Buhari Lawal, Mosiu Sadiq, Bashir Bello (aka Murtala), Nuradeen Khamis, and Abdulsalam Zubairu, pleaded not guilty to the six counts filed against them. They were brought to the court under tight security.

The protesters have challenged the legality of their arrest and detention, arguing that their right to protest is constitutionally protected. In a lawsuit marked FHC/ABJ/CS/1233/2024, they contested the August 22, 2024, order by Justice Emeka Nwite, which allowed the Inspector General of Police to detain them for 60 days pending the completion of investigations.

The defendants, represented by a team of lawyers led by human rights lawyer Femi Falana, claimed that the motion ex-parte used to justify their remand was based on misrepresentation of facts and amounted to an abuse of court process. They are seeking to have the ex-parte order vacated and are also requesting bail.

The case has drawn significant attention, as the protesters argue that their rights to life, dignity, health, and freedom of movement have been violated by the authorities without justification.

Private Sector Warns FCCPC Against Price Control Measures

The Organized Private Sector (OPS) has cautioned the Federal Competition and Consumers Protection Commission (FCCPC) against attempting to control prices dictated by market forces. This warning comes amid concerns that the FCCPC may be considering measures to regulate prices in response to recent economic challenges.

During an interview with Arise TV, representatives from the Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Nigeria Employers’ Consultative Association (NECA) voiced their opposition to any such regulatory actions. They argued that price control efforts could lead to negative consequences, such as hoarding and further economic distortion.

Adewale Oyerinde, the Director-General of NECA, explained that rising prices are driven by factors such as high fuel and energy costs, fluctuating exchange rates, and an unfriendly regulatory environment. He criticized the FCCPC’s one-month deadline for price reductions as a misguided attempt to enforce price control, which he believes could contradict the government’s market-driven economic policies and deter potential investors.

Dele Oye, President of NACCIMA, highlighted the role of government policies in contributing to high costs. He pointed out that the focus on revenue generation over economic growth, coupled with inconsistent policies, has created challenges for businesses. Oye called for a collaborative approach to address the root causes of price fluctuations, emphasizing the need for a business environment that encourages competition and innovation.

Both leaders stressed that the solution to exploitative pricing lies in government action to create an enabling environment for businesses, rather than imposing price controls that could harm the economy and consumer interests.