Economy
Paris Club Refund: Malami Slams g\Governors for Objecting $418m Deduction
By Mathew Dadiya, Abuja
The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, has said state governors have no basis to complain about the $418 million deductions from the Paris Club refund paid to consultants they hired.
The minister said that the noise making arising from the Governors Forum was not only unjustified but “a clear case of absence of defense.
”He spoke when he featured on the Ministerial Media Briefing organized by the Presidential Communications Team on Thursday at the Presidential Villa, Abuja.
The AGF also disclosed that a total of 648 cases instituted against the president, federal government and its agencies, before states, federal and ECOWAS Court were served on the Ministry, adding diligent defences of these cases in the year 2022 alone has saved the government from huge judgment debt liability to the tune of N54,888,343,888.
52.The Ministry has made appreciable progress in the actions being taken to challenge the $10 billion case between Nigeria and the Process & Industrial Development(P&ID) and was able to convince the court to set aside the case which he said may soon commence.
The AGF reflected on the governors that they created the liability whose payment they have also indemnified.
Fielding question on why despite a presidential directive to suspend the deduction from the Paris Club refund, he has not deemed it fit to enforce the directive as some deductions were been said to be made, he affirmed that when the Nigeria Governors Forum (NGF) requested the refund, one of the component was the settlement of the consultants who were engaged by the forum.
The Minister recalled that when the refund was paid to the states, the governors initially made to states, and part payment was also made to the consultants.
However, Malami said the governors later decided to stop payment while asking for an out-of-court settlement.
He said this resulted in to request to the President to make the payment, a request he said, was then passed on to the Office of the AGF for a legal opinion.
The minister noted that after being subjected to necessary checks, it was found that there was no element of fraud involved.
The indemnity of the governors was also sought and received, he disclosed.
“On the issue of Paris club that is raised. You mentioned that there exists a presidential directive that payments should not be made and then in breach of that position directives payments were perhaps maybe arising from the conspiracy between the Attorney General of the Federation and Minister of Justice payments have been made.
“I think you need to be informed first, as to the antecedents, prevailing circumstances and how the liability arose but one thing I’m happy to state, which I want to reiterate having stated the same earlier, is the fact that the Office of the Attorney General and the government of President Muhammadu Buhari has not indeed incurred any major judgment debt for seven years it has been on.
“Now, coming to the antecedents background of the Paris Club. The liability or judgement debts related to pirates Club was indeed a liability created by the governor’s forum in their own right.”
“The Governor’s forum comprising of all the governors sat down commonly agreed on the engagement of a consultant to provide certain services for them relating to the recovery of the Paris Club. So, it was the governor’s forum under the federal government in the first place that engaged the consultant.
“Two, when eventually, successes were recorded associated with the refund, associated with Paris Club, the governors collectively and individually presented a request to the federal government for the fund. And among the components of the claim presented for the consideration of the federal government was a component related to the payment of these consultants that are now constituting the subject of contention. So the implication of that is that the governors in their own right recognized the consultant, recognized their claim and presented a such claim to the federal government.
“Three, when the claims were eventually processed and paid to the governor’s forum. They indeed on their own, without the intervention of the federal government took steps to make part payments to the consultants, acknowledging their liability over the same.
“And then four, when eventually they made such payments at a point they decided to stop the payment. The consultants instituted an action in court against the governors’ forum. They submitted to consent judgment. They asked and urged the Court to allow them to settle out of court.
“The court granted them an opportunity to settle. They commit terms of settlement in writing, they signed the terms of settlement, agreeing and conceding that such payments be made to the consultant.
“And then five, thereafter, the federal government under the administration of President Muhammadu Buhari was requested to comply with the judgment and effect payment.
“The President passed all the requests of the governors to the Office of the Attorney General for consideration. I suggested to the President the face value of the judgment and the undertones associated with the consultancy services.
“It was my opinion, the same treatment we meted to P&ID, that let us subject this claim, the consent judgment to an investigation by the agencies of the government. Mr President approved, I directed the EFCC and DSS to look into these claims and report back to the office of the Attorney General.
“And these agencies reported and concluded that there is no problem undertone associated with it. The government may continue to sanction the payment dependent. Now, that was the background.
“Even at that, we took further steps after receiving these reports from the EFCC among others, to demand indemnity from the governors. You, as a forum, incurred this liability, as a forum you submitted to consent judgment. We have subjected these claims to investigation and we have a report, but even at that, we need independent indemnity from you, establishing that it is with your consent and understanding that these payments should be made, in writing.
“And I’m happy to report to you that the governors individually and collectively provided the desired indemnity to the Office of the Attorney General, conceding, agreeing and submitting, that the payment should be made.
“Yes, and that was the ground and the basis on which we eventually decided by advising the president that the payment should be made. And then along the line, there was a change of leadership of the governors’ forum. And all the noise-making that is now being generated arising from the Governors forum is not only unjustified but indeed, a clear case of absence of defense.
“But one other point of interest you may wish to note is the fact that the new leadership of the governors’ forum instituted an action, even when the federal government was indeed acting based on the judgment of the Supreme Court. They now embarked on a fresh legal suit, challenging the payment, challenging the previous agreement, challenging the indemnity and the court dismissed the application. Their case was dismissed by the Federal High Court.
“So that is the foundation and I’m happy to report one, that the judgment and contention was a judgment that was obtained long before the Attorney General, Abubakar Malami came into office, long before the administration of President Muhammadu Buhari came into office.
“It was a product of their own doing and they had it submitted to judicial proceeding, judgment was entered against them. They have committed to the payment of the money, they have on their own indeed effected part payment. I closed my case and I will not like to answer any further questions on that,” the minister explained.
Selloffs in BUA Cement and Tier-one banking stocks on Tuesday dragged the Nigerian Exchange Ltd. (NGX) market capitalisation down by N394 billion, a 0.66 per cent decline.
Specifically, the market capitalisation, which opened at N59.812 trillion, closed at N59.418 trillion.
Similarly, the All-Share Index dropped by 0.
66 per cent, shedding 651 points to close at 98,058. 07, compared to 98,708. 90 on Monday.This dip also reduced the Year-to-Date (YTD) return to 31.14 per cent.
Market breadth was negative, with 32 losers declining and 26 gainers on the Exchange.
On the losers’ table, Cadbury Nigeria led by 9.89 per cent to close at N16.40 per share, while Northern Nigeria Flour Mill(NNFM) led the losers’ table by 10 per cent to close at N37.
40 per share.However, analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 96.08 per cent.
A total of 399.32 million shares valued at N8.93 billion were exchanged in 9,547 deals, compared to 353.18 million shares valued at N4.55 billion transacted in 9,417 deals posted previously.
Meanwhile, UBA led the activity chart in volume and value with 90.41million shares worth N2.61 billion.(NAN)
In the just concluded week, equity investors gained N836 billion or 1.41 per cent, week-on-week.
The Nigerian Exchange Ltd.(NGX) All-Share Index and Market Capitalisation appreciated by 1.41 per cent to close the week at 99,448.91 and N60.261 trillion respectively.
This is against 98,070.
28 and N59.425 trillion respectively posted in the previous week.Similarly, all other indices finished higher, with the exception of NGX Consumer Goods and NGX Lotus II which depreciated by 0.
84, 1.19 per cent respectively, while the NGX ASeM index closed flat.Fifty-eight equities appreciated in price during the week, higher than 33 equities in the previous week.
Eighteen equities depreciated in price lower than 43 in the previous week, while 76 equities remained unchanged, same as 76 recorded in the previous week.
On the gainers’ table, Eunisell Interlinked Plc, led 47 advanced equities by 20.69 per cent to close at N3.50 per share.
Also, Dangote Sugar Refinery Plc, led 17 declined equities on the losers’ table by 10.13 per cent to close at N31.50 per share.
A total turnover of 2.142 billion shares worth N85.946 billion in 41,217 deals was traded this week by investors on the floor of the Exchange, in contrast to 1.447 billion shares valued at N73.889 billion that exchanged hands last week in 39,546 deals.
The Financial Services Industry, measured by volume led the activity chart with 1.176 billion shares valued at N23.739 billion traded in 19,570 deals; thus contributing 54.91 and 27.62 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 366.923 million shares worth N4.672 billion in 4,004 deals.
Third place was the Oil and Gas Industry, with a turnover of 228.439 million shares worth N52.635 billion in 7,547 deals.
Trading in the top three equities, namely: United Bank for Africa Plc, Champion Breweries Plc and Japaul Gold and Ventures Plc measured by volume accounted for 828.822 million shares worth N12.319 billion in 5,080 deals.
This contributed 38.70 and 14.33 per cent to the total equity turnover volume and value respectively.
Reacting, analysts at Cowry Financial Market Research stated that the recent positive quarterly corporate earnings reports, further buoyed market sentiment.
The analysts noted that this was particular in the banking, industrial goods, and consumer goods sectors, delivering strong performances from key players.
They stated that the market sentiment also drove the benchmark index closer to the 100,000 points threshold.
“Notably, we think the current rally is likely to persist, though cautious profit-taking activities may create intermittent dips,” they said.
Looking ahead, the analysts predicted that the stock market was poised for further gains.
According to them, this is as investors look forward to the upcoming macroeconomic data releases and corporate earnings reports, which are anticipated to influence short-term trading dynamics.(NAN)
The International Monetary Fund (IMF),, says global growth is projected to remain unchanged at 3.2 per cent in 2024 and 2025, as Inflation recedes.
This is according to the IMF’s latest World Economic Outlook (WEO) Update Report for October 2024: “Policy Pivot, Rising Threats,” released on Tuesday during the IMF/ World Bank Meetings in Washington D.
C.The report said though the projection was in line with the July and April 2024 WEO, there had been notable revisions beneath the surface since the April WEO.
According to the report, some low-income and developing economies have seen sizable downside growth revisions, often tied to disruptions to production and shipping of commodities, especially oil, conflicts, civil unrest, and extreme weather events.
“These have been compensated for by upgrades to the forecast for emerging Asia, where surging demand for semiconductors and electronics, driven by significant investments in artificial intelligence has bolstered growth.”
It said in advanced economies, growth in the United States was strong, at 2.8 per cent in 2024 but will revert toward its potential in 2025.
The report said for advanced European economies, a modest growth rebound was expected in 2025, with output approaching potential.
For emerging markets and developing economies, it said the growth outlook was very stable around 4.2 per cent in 2024 and 2025, with continued robust performance from emerging Asia.
“Five years from now, global growth should reach 3.1 per cent, a mediocre performance compared with the prepandemic average.”
The report showed that there was global disinflation even though service price inflation persists in some countries.
“After peaking at 9.4 per cent year-on-year in the third quarter of 2022, we now project headline inflation will fall to 3.5 per cent by the end of next year.
“ This is slightly below the average during the two decades before the pandemic.
“In most countries, inflation is now hovering close to central bank targets, paving the way for monetary easing across major central banks.”
The report said the return of inflation near central bank targets paved H the way for a policy triple pivot which would provide the much-needed macroeconomic breathing room, at a time when risks and challenges remain elevated.
“The first pivot on monetary policy is underway already. Since June, major central banks in advanced economies have started to cut policy rates, moving toward a neutral stance.
“This will support activity at a time when many advanced economies’ labor markets are showing signs of cooling, with rising unemployment rates.
‘Lower interest rates in major economies will ease the pressure on emerging market economies, with their currencies strengthening against the U. U. S dollar and financial conditions improving.
“This will help reduce imported inflation, allowing these countries to pursue their own disinflation path more easily.”
The report said the second pivot was on fiscal policy and would require countries to stabilise debt dynamics and rebuild much-needed fiscal buffers.
“The more credible and disciplined the fiscal adjustment, the more monetary policy can play a supporting role by easing policy rates while keeping inflation in check.
“The pace of adjustment should be tailored to country-specific circumstances.”
It said the third pivot and the hardest was towards growth-enhancing reforms.
The report said structural reforms were necessary to lift medium-term growth prospects, but support for the most vulnerable should be maintained
It said for reforms to be successful and socially accepted, there was a need to build trust between government and citizens.
“ Building trust between government and citizens, a two-way process throughout the policy design and the inclusion of proper compensation to offset potential harms, are essential features.
The report said that multilateral cooperation was needed more than ever to accelerate the green transition and to support debt-restructuring efforts. (NAN)
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