News
Failed Abuja CCTV Project: Court Orders FG to Account for $460m Chinese Loan
A Federal High Court in Abuja has ordered the President Muhammadu Buhari’s Administration to “account for the spending of $460 million Chinese loan to fund the failed Abuja Closed-Circuit Television (CCTV) project,” according to the eagleonline report.
The Court also ordered the government to “publish the total amount of money paid to Chinese and local companies and contractors and specific details of the names of the companies and contractors and status of the implementation of the project.”
Justice Emeka Nwite made the orders while delivering judgment in a Freedom of Information suit number: FHC/ABJ/CS/1447/2019 brought by Socio-Economic Rights and Accountability Project (SERAP).
The suit according to Deputy Director, Kokawole Oluwadare followed the disclosure in 2019 by the Minister of Finance, Zainab Ahmed that “Nigeria was servicing the loan”, adding that she had ‘no explanations on the status of the project.’ She reportedly said, “We are servicing the loan. I have no information on the status of the CCTV project.”
In his judgment, Justice Nwite agreed with SERAP that “there is a reasonable cause of action against the government. Accounting for the spending of the $460 million Chinese loan is in the interest of the public. It will be inimical for the court to refuse SERAP’s application for judicial review of the government’s action.”
Justice Nwite also said that, “The Minister of Finance is in charge of the finance of the country and cannot by any stretch of imagination be oblivious of the amount of money paid to the contractors for the Abuja CCTV contract and the money meant for the construction of the headquarters of the Code of Conduct Bureau (CCB).”
The jurist also ordered the government “to provide the details clarifying whether the sum of N1.5 billion Naira paid for the failed contract meant to construct the headquarters of the Code of Conduct Bureau (CCB) was part of another loan obtained from China.”
Justice Nwite’s judgment, read in part: “SERAP’s core objectives are to promote human rights, transparency and accountability and anticorruption in Nigeria.”
“I am of the humble view that there is a reasonable cause of action against the government [through the Minister of Finance] and I so hold that SERAP has made out a case to be entitled to the reliefs sought.”
“The law is well settled that where a document or letter is sent by post, it is the law that same is taken or presumed to have been delivered.”
“Following this principle of law and relying on exhibit OS2, SERAP’s Freedom of Information request sent to Ms Ahmed is deemed to have delivered. Therefore, the averment by the government [through her] that they were not served with the letter is hereby discountenance. I so hold.”
Joined as defendants in the suit are Ms Ahmed and the Minister of Police Affairs.
Justice Nwite granted the following orders of mandamus against the Nigerian government:
AN ORDER OF MANDAMUS is hereby made directing and compelling the government [through the Minister of Finance] to provide and make available to SERAP information on the total amount of money paid to contractors, with specific details of names of companies local contractors involved, from the $460 million loan obtained in 2010 from China by the Federal Government of Nigeria to fund the failed Abuja CCTV contract.
AN ORDER OF MANDAMUS is hereby made directing and compelling the government [through the Minister of Finance] to provide the details of the local companies and Chinese contractors that have received funds from the $460 million loan for the finance of the Abuja CCTV contract as well as details of the status of implementation of the project.
AN ORDER OF MANDAMUS is hereby made directing and compelling the government [through the Minister of Finance] to provide the details clarifying whether the sum of N1.5 billion Naira mobilisation fee reportedly paid to the contractors for the construction of the Headquarters of the Code of Conduct Bureau in Abuja was part of another loan from China. This is the judgment of the court.
Oluwadare said: “The onus is now on President Buhari to immediately comply with the court’s orders. We commend Justice Nwite for his courage and wisdom, and urge President Buhari and Abubakar Malami, Attorney-General of the Federation and Minister of Justice to immediately obey the court orders.”
“This is a victory for justice, rule of law, transparency and accountability. The judgment shows the way forward in the fight against corruption and impunity of perpetrators. We will do everything within the law to ensure full compliance by President Buhari with this ground-breaking judgment on Chinese loans.”
“We call on President Buhari to use the judgment as the basis for publishing details of spending of all Chinese loans and other loans obtained by his government since May 2015.”
Nigeria’s total borrowing from China climbed from $1.39 billion to $4.29 billion between June 2015 and December 2022, according to data from Debt Management Office (DMO).
Nigeria’s 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) revealed earlier in the year that the federal government will spend N6.31 trillion on debt servicing in 2023, which amounts to about 74.6% of the government’s projected revenue of 8.46 trillion for the year.
Nigeria risks losing key national assets to China in the event that it defaults in paying back loans obtained from China.
According to a report, Nigeria may have defaulted on Chinese loan repayment and stands the risk of paying a penalty amounting to N41.31 billion. The report quoted the Debt Management Office (DMO), which said Nigeria has failed to fully service its debt to China, which has accumulated to N110.31 billion in the last two years.
It would be recalled that SERAP had in December 2019 filed a lawsuit against Ms Ahmed over failure to “disclose information and specific documents on the total amount of money paid to contractors from the $460 million loan obtained in 2010 from China to fund the apparently failed Abuja CCTV project.”
The suit number, read in part: “Servicing Chinese loans for failed projects is double jeopardy for Nigerians—they can neither see nor benefit from the projects; yet, they are made to pay both the loans and the accrued interests.”
“The $460 million loan got for the failed Abuja CCTV project and the N1.5 billion for the construction of CCB headquarters, which may be part of another Chinese loan, may have been mismanaged or stolen, and in any case, remain unaccounted for.”
“Transparency in the spending of Chinese loans is good for everyone, as this would help to increase the effectiveness, legitimacy, and contribution of the loans to the development of public goods and services, and the general public interests.”
“The information being requested does not come within the purview of the types of information exempted from disclosure under the Act. The Respondent has no legally justifiable reason for refusing to provide SERAP with the information requested.”
“Democracy cannot flourish if governments operate in secrecy. The citizens are entitled to know how the commonwealth is being utilized, managed and administered in a democratic setting.”
Dangote oil refinery, indigenous oil refinery owned by Aliko Dangote, Africa’s richest man, is reselling cargoes of U.S. and Nigerian crude, four trade sources familiar with the matter said on Friday, according to a Reuters report.
Aliko Dangote
Three of the sources indicated that the reoffer was linked to technical problems at the refinery.
However, a Dangote executive, when asked about the offers and market rumours of operational issues affecting the crude distillation unit (CDU), stated that the CDU is in operation.
The refinery, which began production in January, is set to become the largest in Africa and Europe upon reaching full capacity.
This could significantly alter the lucrative Europe-to-Africa fuel trade and transform Nigeria into an exporter of fuels.
Among the grades being offered were Nigerian Escravos and Forcados crude, as well as U.S. WTI Midland crude, according to the sources. Traders have reported that the plant has been importing several crude cargoes monthly.
While resales by refineries are rare, they are not unheard of, traders noted. Following the news, crude prices fell further, with Brent crude dropping as much as 2.5% towards $80 a barrel, before recovering to above $81 by 1700 GMT.
The 650,000 barrel-per-day refinery, built at $20 billion by Africa’s richest man Aliko Dangote, aims to reverse Nigeria’s reliance on fuel imports despite being Africa’s largest oil producer.
Tomorrow is your birthday Madam, kindly permit me to be the first to strike a positive chord and shine a spotlight on you, an exceptional woman, who is helping shape modern finance in Nigeria and indeed the world.
Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
You are inspirational, an elegant stallion that radiates beauty in brilliance.
Meet, Dr. Nneka Onyeali-Ikpe, OON, an Amazon and group managing director and chief executive officer, Fidelity Bank Plc who turns 60 in a few hours.
She is a leader who instills in her people a hope for success and a belief in themselves.
Born July 28, 1964 in Lagos, Dr. Nneka Onyeali-Ikpe, is a creative problem solver motivated by obstacles.
The desire to overcome a challenge fuels her to get things accomplished.
She does not take ‘no’ for an answer.”
Dr. Nneka Onyeali-Ikpe, joined Fidelity Bank as an executive director in 2015 and was appointed managing director/CEO in January 2021, becoming the first female MD/CEO in the bank’s history.
The birthday lady holds a Bachelor of Law from the University of Nigeria, Nsukka, and a Master of Law from King’s College London.
She has attended executive training programs at various institutions including Harvard Business School, The Wharton School University of Pennsylvania, and London Business School.
Additionally, she recently completed a Diploma program in Organizational Leadership at Said Business School, Oxford University, UK.
She holds an honorary doctorate degree in Business Administration from the University of Nigeria, Nsukka (UNN) and is an Officer of the Order of the Niger (OON), awarded by the Federal Government of Nigeria in 2023.
In 1990, she began working in banking as a legal officer for the now-defunct African Continental Bank. She subsequently worked as a treasury officer for the First African Trust Bank.
She later joined Zenith Bank and Standard Chartered Bank respectively.
Nneka Onyeali-Ikpe has held leadership positions at Citizens International Bank, Zenith Bank, and Standard Chartered Bank, among others.
She has been instrumental in structuring complex transactions across various sectors including Oil and Gas, Manufacturing, Aviation, Real Estate, and Export.
In 2011, she joined Enterprise Bank as an executive director of the bank’s operations in Lagos and other locations in the South-Western region in Nigeria.
Nneka Onyeali-Ikpe joined the commercial bank Fidelity as an executive director in January, 2015. Fidelity Bank announced Onyeali-Ikpe as its managing director in December 2021.
Under her leadership, Fidelity Bank witnessed significant growth, increasing its Profit Before Tax (PBT) from N25.22bn in FY 2021 to N122bn in FY 2023.
She has led the bank’s expansion into international markets, including the recent approval by the Central Bank of Nigeria to acquire Fidelity Bank UK Limited (formerly Union Bank UK).
Passionate about innovation and technology, Nneka Onyeali-Ikpe has spearheaded initiatives such as PayGate Plus, an online payment platform, and the Fidelity International Trade & Creative Connect (FITCC) aimed at supporting Small and Medium Enterprises (SMEs) globally[citation needed]
In recognition of her leadership, Nneka Onyeali-Ikpe has received several awards including The Banker of the Year 2022 at the 14th Leadership Annual Conference, Best Banking CEO Nigeria 2023 in the 2023 Global Banking & Finance Awards, 2023 Top 25 CEOs in Nigeria at the BusinessDay Awards, and Banker of the Year 2022 at the Champion Newspapers’ Awards of the Year 2022.
She also received acknowledgment from the Assets Management Corporation of Nigeria (AMCON) for her role in restructuring the former Enterprise Bank. As an Executive Director, she oversaw operations in the Lagos and southwest regions, managing the Retail and SME divisions. Additionally, she played a key role in establishing the Bank’s SME group.
She serves on various Committees and organizations including the Financial Literacy and Public Enlightenment Sub-Committee of the CBN Bankers Committee and the Chartered Institute of Bankers of Nigeria.
Onyeali-Ikpe is married to Dr. Ken Onyeali Ikpe, PhD, a leader in Marketing, Branding, and Consumer Consulting.
As you celebrate today, may you have all the love your heart can hold, all the happiness a day can bring, and all the blessings a life can unfold.
May the years ahead be greater.
Happy birthday, God Bless!
The proposed 5 percent tax on companies earning over N100 million for community development projects could result in the exits of multinationals from the country, a new report by Afrexim Bank has said.
“Nigeria’s National Assembly is considering a 5 percent levy on big companies to invest in community projects, despite opposition from companies and their supporters.
Critics argue that companies already pay 20-30 percent of their profits in corporate taxes and the plan could prompt international companies to leave the market,” the report titled Monthly Developments in the African Macroeconomic Environment stated.
However, the bill has faced rejection from the organized private sector.
The Manufacturers Association of Nigeria (MAN), which sent representatives to the public hearing organized by the parliament, described the proposal as ill-timed and unnecessary.
They argued that CSR should be at the discretion of each organization, emphasizing that it is an internal matter.
Additionally, they expressed concerns about the current multiplicity of taxes and the high operating expenses that manufacturers are already struggling with.
Olumide Osoba, member of the House of Representatives, recently introduced the Corporate Social Responsibility Bill 2023 to set high standards of corporate governance and ensure firms integrate long-term economic, environmental, and social aspects into their business strategies.
The bill includes provisions for establishing a department within the Federal Ministry of Budget and National Planning.
This department will be headed by a commissioner appointed by the president based on the budget minister’s recommendation.
The commissioner will coordinate the activities of agencies related to CSR and monitor compliance with the law.
For non-extractive companies with a net worth of N500 million or a net profit of N100 million in a financial year, the bill requires them to form a CSR committee consisting of three or more directors, one of whom must be an independent director. This committee will be responsible for the company’s CSR policy and ensure compliance.
Dangote Refinery Forced to Resell U.S, Nigerian Crude Cargoes over Glitches – Report
60 Hearty Cheers to Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
Companies May Flee Nigeria over Proposed Percent Levy– Afrexim Bank
National Assembly Moves to Strengthen NIMC’s Regulatory Functions
CAC Issues Guidelines for Banks Recapitalisation, Merger
Davido Launches Chatter, Own Social Media App
Oriental News 2024 Summit: Muda Yusuf to Lead Discussion on Nigeria’s Path to Green Economy Transition
OPay Gets Court Order to Restrict Customer Accounts over ₦714m System Glitch
GSMA Urges 6 GHz Spectrum Allocation for Mobile Growth
V-Convention Underscores QNET’s Commitment to Transparency and Accountability – Biram Fall
News1 day agoOsun, Delta Fine Google, Meta $350m Each for Alleged Tax Evasion
News3 days agoUniversity Don Urges Stricter Copyright Enforcement to Combat Music Piracy
Telecom3 days agoKuda partners with SeerBit for safe and quick cardless payments online
Telecom3 days agoNigerian Fintech Firm Risevest Set to Acquire Kenyan Stock-trading App Hisa
Telecom3 days agoNetflix Jacks Up Subscription Price By 40% in Nigeria
Telecom3 days agoMTN Nigeria Launches First Fully Digitised Retail Store in Sub-Saharan Africa
Telecom3 days agoMercury Bank Blocks Accounts Linked to Nigerian Startups, Others
Telecom2 days agoGlo 1 Reaches 8-year Milestone of Continuous Connectivity