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No Hope for Nigerian Economy  with Fuel Subsidy, Official Forex Rate- IMF

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.Proposes Heavier Tax on Citizens, Corporate Bodies
.Says Increased Borrowing, Huge Debt Servicing  Pose Fiscal Risks

The International Monetary Fund has again urged the Nigerian government to stop subsidising the price of  petrol, barely two weeks after the Federal Government restated petrol subsidy regime for the next 18 months.

The Federal Government had on January 24 suspended its plan to remove fuel subsidy from June this year, saying it would engage the legislature for the amendment of the Petroleum Industry Act which cannot operate with a fuel subsidy regime.


The IMF had in November last year emphasized  the need “to fully remove fuel subsidies and move to a market-based pricing mechanism in early 2022 as stipulated in the 2021 Petroleum Industry Act.

The IMF, in a statement on Monday at the end of its Article IV consultation with Nigeria, said despite the recovery in oil prices, the general government fiscal deficit was projected to widen in 2022 to 5.9 per cent of GDP, reflecting implicit fuel subsidies and higher security spending.
According to the Washington-based fund, higher debt service to government revenues (through higher US interest rates and/or increased borrowing) pose risks for fiscal sustainability.
IMF executive directors noted that the country’s outlook remained subject to significant risks, including from the pandemic trajectory, oil price uncertainty, and security challenges.
They emphasised the need for major reforms in the fiscal, exchange rate, trade, and governance areas to lift long-term, inclusive growth and urged the government to do away with fixing official exchange rate.
“Directors highlighted the urgency of fiscal consolidation to create policy space and reduce debt sustainability risks. In this regard, they called for significant domestic revenue mobilisation, including by further increasing the value-added tax rate, improving tax compliance, and rationalizing tax incentives.
“Directors also urged the removal of untargeted fuel subsidies, with compensatory measures for the poor and transparent use of saved resources. They stressed the importance of further strengthening social safety nets,” the statement said.
The IMF welcomed the removal of the official exchange rate and recommended further measures towards a unified and market-clearing exchange rate to help strengthen Nigeria’s external position, taking advantage of the current favourable conditions.
They noted that exchange rate reforms should be accompanied by macroeconomic policies to contain inflation, structural reforms to improve transparency and governance, and clear communications regarding exchange rate policy.
The statement said, “Directors considered it appropriate to maintain a supportive monetary policy in the near term, with continued vigilance against inflation and balance of payments risks. They encouraged the authorities to stand ready to adjust the monetary stance if inflationary pressures increase.
“Directors recommended strengthening the monetary operational 
framework over the medium term – focusing on the primacy of price stability – and scaling back the central bank’s quasi-fiscal operations.”
The fund also welcomed the resilience of the banking sector and the planned expiration of pandemic-related support measures.
The directors agreed that while the newly launched eNaira could help foster financial inclusion and improve the delivery of social assistance, close monitoring of associated risks would be important.
They also encouraged further efforts to address deficiencies in the Anti-Money Laundering and Countering Financing of Terrorism framework.
The directors called for stronger efforts to improve transparency of COVID-19 emergency spending.
The statement said, “Directors noted that Nigeria’s capacity to repay the Fund is adequate. They encouraged addressing data gaps to allow timely and clear assessments of reserve adequacy.
“Directors emphasised the need for bold reforms in the trade regime and agricultural sector, as well as investments, to promote diversification and job-rich growth and harness the gains from the African Continental Free Trade Agreement,” noting that “Improvement in transparency and governance are also crucial for strengthening business confidence and public trust.”

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Airports Constructed by States  Not Commercially Viable, Says ICRC

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By Tony Obiechina, Abuja

Director-General Infrastructure Concession Regulatory Commission (ICRC) Dr Jobson Ewalefoh has said many airport projects undertaken by state governors lack commercial viability.

The ICRC boss stated this at the second Joint Public-Private Partnership Units’ Consultative Forum.

Over N160 billion has been channelled recently by Bayelsa, Nasarawa, Ekiti, Ebonyi, Yobe and Jigawa states for airport projects.

Ewalefoh described these allocations, which generate no revenue for the Federal Airports Authority of Nigeria (FAAN) as a misplaced economic priority.

He said, “When talking about infrastructure, it must be integrated, and we must speak with one voice.

“For instance, you have airport infrastructure projects going on in almost all the 36 states of the federation. With proper planning, that scenario can be avoided.

“I am from Edo State. There is an airport in the state and another one in Warri, Asaba and Anambra.

“Driving through those states with good roads is not up to one hour. So that’s why I think we all need to put our heads together and think of a national planning approach.

“Though we have a document, we can sit down and decide on priority projects to know which is best for one to do.

“Edo can build one project, Delta another one, Warri a different one but with integrated planning, such things can be avoided. We need to discuss at the national and sub-national level because Nigeria is sovereign, and we are one.”

Through integrated projects and collaboration with sub-national bodies, Ewalegoh said the frequency of unfeasible economic ventures would be addressed.

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Anguish as Bandits Embark on Killing Spree in Benue, Plateau

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From Attah Ede, Makurdi & Jude Dangwam, Jos

There seems to be no respite for many local communities in Benue and Plateau States as bandit attacks have continued to escalate by the day.

According to multiple local sources, the incessant attacks by gunmen, suspected to be Fulani herders, have left hundreds dead while many others are either displaced or missing.

Amid the growing tension, community leaders and other stakeholders have called on the federal government and the security agencies to secure the lives and property of the terror stricken communities.

In a passionate appeal yesterday, a group of academics and opinion leaders from Tyoshin, in Gwer-West local government area of Benue State bemoaned the fate of residents in their communities in the hands of the armed invaders.

Coming under the aegis of the Forum of Tyoshin Academics (FoTA), the forum said more than 500 persons had been killed by the armed invaders within a period of six months.

A statement jointly signed by the forum’s National President and the National Publicity Secretary, Professors Patrick Ukase and John Anja said five persons were killed in a fresh attack on Saturday.

The forum noted that the attacks, which it said dated back to 2011 claimed about 192 innocent lives by the end of 2017, while 302 were killed between 2018 and 2023.

According to the forum, more than 17  persons had been killed this year, bringing the figures to 511.

The statement said in part, “Today marks another day of mourning, another black day etched in the hearts of our community.

“The relentless wave of violence continues as suspected Fulani armed herders have, once again, unleashed terror on our people—this time along the Naka-Makurdi Road.

“The lives of five innocent souls who were rushed to the clinic for treatment following the attack, tragically slipped away, their cries unheard. Others lie in agony, fighting for their lives, yet the true number of those attacked remains unknown.

“Since 2011, the toll of this violence has been staggering. Between 2011 and 2017, 192 sons and daughters of Tyoshin were gruesomely murdered by herders. From 2018 to 2023, the numbers escalated, with 302 more lives lost in the area.

“This year alone, 17 individuals have been mercilessly hacked down by these herders. These figures do not include those who have disappeared and have not been seen since 2011. In all, we have lost over 511 lives to this relentless onslaught.

“Tyoshin land is bleeding, its cries drowned in the deafening silence of indifference. Our villages, our homes, and our very existence have come under siege for too long. Nine council wards of the Gwer-West local government area have already fallen into the hands of these ruthless attackers.

“Today’s tragedy is but a grim continuation of a war that has ravaged our land, leaving us shattered and broken. Just days ago, the blood of our brothers and sisters was spilled in Camp-Nagi, Mbachohon, where three more were brutally murdered.

“Yet, in the face of this terror, the silence from those sworn to protect us is deafening. The Tyoshin people are abandoned and forsaken by the very government that should shield them.

“The Federal Government and the Benue State Government remain disturbingly quiet, their inaction a haunting reminder of how alone we truly are.”

The community leaders lamented that the attacks were being carried out by the invaders despite the presence of soldiers drafted in the community for the purpose of protecting lives and property.

“Even the military presence, meant to offer protection, stands idle as the bloodbath continues. Our people fall; one by one, as these attackers roam freely, unchallenged and unafraid”, the group said.

The leaders appealed to President Bola Tinubu and the Governor of Benue State, Hyacinth Alia, to come to come to the community’s rescue.

In a related development, troops on Sunday rescued eight travellers along the Akaa-Akundo community in Zaki Biam, Ukum local Government Area of Benue State.

The troops were attached to 401 Special Forces Brigade/Sector 1, with the code named “Operation Whirl Stroke (OPWS).

The names of the rescued travelers were given as Oliver Enze, 40, who was the driver of the bus; Obi Valentine, 32; Nasuru Abubarka,18; Evangelist John Udhemuburu, 64; Bulus Bukar, 23; Samuel Chukwudi, 18; Joseph Ejeh, 37; and Alex Okafor, 42.

Some of the victims who spoke to journalists in Makurdi, thanked the troops for their prompt intervention.

The driver of the bus said they were attacked at 7:30pm when the vehicle ran into a barricade mounted by the bandits.

“They stopped us along Zaki- Biam-Wukari road at a check point that was mounted by the armed men wearing army uniforms and we mistook them to be soldiers.

“Several other vehicles were also parked by the roadside, and I was asked to park and ordered down with the passengers and forced to lie face down.

“Two of the passengers were taken away from the vehicle by the gunmen into the bush and cash worth millions of naira was collected from them, including travel bags, phones and other  valuables.

“In the process of their operations, they spotted the vehicle of the Joint Military Operations Team from a distance and took to their heels. That was when we got to know that they were kidnappers.”

When contacted, Brigadier General A. Rabiu, Commander 401 Special Forces Brigade/Sector 1, confirmed the incident and assured Benue State residents of total fight against criminality in the state.

It would be recalled that last week, the military troops also rescued six persons including a serving youth corps member who were traveling from Taraba to the Southeast.

The situation is not too different in neighbouring Plateau where armed herders have been terrorising agrarian communities in the state.

The Minister of Defence, Mohammed Badaru Abubakar who visited the state at the weekend, condemned the renewed bloodshed across some local government areas and called for an immediate end to the senseless killings.

He said peace loving people in the affected areas must avoid farm destruction, cattle rustling, poisoning of animals, night grazing, underage grazing and avoid ethnic profiling.

Abubakar stated this yesterday during a stakeholders engagement with community, religious and youth leaders from Barkin-Ladi, Riyom, Bokkos, Mangu and Wase local government areas of Plateau State.

He noted that the essence of the stakeholders engagement was to come up with workable solutions and tasked them to identify criminals in their respective communities and treat them as criminals rather than promoting ethnic profiling.

In his words, “Firstly, I must express my displeasure over the current attacks and reprisals that have resulted in the loss of lives and property.

“This is happening despite the best efforts of our security agencies, particularly the 3rd Division Operation Safe Haven, in ensuring a peaceful settlement to these early attacks that have affected both farmers and cattle breeders.

“I am particularly saddened by the actions of certain elements in some communities who continue to destroy farms and disrupt peace efforts despite ongoing dialogue aimed at resolving the issues diplomatically.

“These security challenges are not isolated to Plateau State, but are widespread across other parts of the country,” Badaru said.

This minister said the stakeholders’ meeting was intended to de-escalate tension and prevent a spillover of the situation in parts of Mangu into other areas of the state.Earlier, the General Officer Commanding 3 Armour Division, Maxwell Khobe Cantonment Rukuba Barracks, Major General Abdusalam Abubakar had given a commitment to ensure peace in the area

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Army Dispels Rumour of Lagbaja’s Death

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By David Torough, Abuja

Nigerian Army last night dismissed speculations that the Chief of Army Staff (COAS), Lt. Gen. Taoreed Lagbaja is dead, describing the reports as fake news.

The headquarters via its official X handle, @HQNigerianArmy dismissed an online report that circulated yesterday with the headline “Chief of Army Staff dies of cancer”.

The report claimed that Lt.

Gen.
Lagbaja passed away in an undisclosed hospital overseas nearly 48 hours due to stage three cancer. It quoted a senior government official.

The report claimed that the news of the COAS’s death had been kept secret due to intense lobbying by some Army Generals seeking to assume his position.

However, sources at the Army Headquarters confirmed that the Army Chief was critically ill.

One of the sources said, “COAS is not dead. He is only critically ill at the moment. We should be praying for him at this critical time and not spreading rumours that he died.”

Another source said he was out of the country to treat himself.

“He is out of the country for treatment. And I have not heard of his death from anyone around him. There is no way such information could be hidden.”

The phone number of the director, Army Public Relations, Maj. Gen. Onyema Nwachukwu indicated it was switched off. He was yet to respond to a message sent to him on the matter.

Lt. Gen. Lagbaja, born on Feb. 28, 1968 in Ilobu, Osun State was appointed by President Bola Tinubu in June 2023 as the 27th COAS.

The Army Headquarters asserted the importance of accurate information and urged the public to disregard any unverified reports regarding the health or status of its leadership.

Presidency reacts

Also reacting to the rumours, Special Adviser Information and Strategy to President Tinubu, Bayo Onanuga via his X Platform dismissed the report on death of Lagbaja.

He said, “Director of Army Public Relations, Major General Onyema Nwachukwu has dismissed fake reports about the Chief of Army Staff, Lt. General Taoreed Lagbaja.

“To be very clear, the Nigerian Army is a highly structured establishment with well-laid-out procedures and processes for dealing with different circumstances.

“Before proceeding on leave, necessary protocols were put in place for the Chief of Policy and Plans (Army), Major General Abdulsalami Bagudu Ibrahim to act on behalf of the COAS while he is away.”

In another development, the army pulled out of service 15 Generals from the Artillery Corps.

The army in a post on X yesterday said, “The Nigerian Army formally pulled out 15 retired generals from the Artillery Corps on Saturday, October 19, 2024 during a ceremony at the Nigerian Army School of Artillery in Kachia, Kaduna State.

“The group of retirees included 11 Major Generals and 4 Brigadier Generals.”

Maj. Gen. James Myam who spoke on behalf of the retired officers reflected on their long military career, expressing fulfilment and gratitude.He extended appreciation to President Bola Tinubu for the opportunity to serve and thanked the COAS for his leadership.

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