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.
The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.
This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.
President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.
Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.
Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.
“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.
“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.
“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.
According to the statement, the borrowing plan does not equate to actual borrowing for the period.
“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.
“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.
“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.
“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.
He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.
According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.
Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.
He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.
Manga said that the government has ended the distortionary and inflationary ways and means.
According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.
“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.
“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.
“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.
“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)
The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.
This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.
President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.
Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.
Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.
“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.
“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.
“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.
According to the statement, the borrowing plan does not equate to actual borrowing for the period.
“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.
“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.
“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.
“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.
He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.
According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.
Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.
He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.
Manga said that the government has ended the distortionary and inflationary ways and means.
According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.
“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.
“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.
“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.
“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)
The Chairman, Joint Tax Board (JTB), Dr Zacch Adedeji, has urged officials of the board to organise traders and artisans into a formal body before capturing them in the tax net.
Adedeji said that this was in line with the agenda of President Bola Tinubu not to tax poverty but prosperity.
The chairman stated this at the 157th Joint Tax Board meeting held in Ibadan, on Monday.
The theme of the meeting “Taxation of the Informal Sector: Potentials and Challenges”.
Speaking on the theme of the event, Adedeji stressed the need to evolve a system that would make the informal sector formal before it could be taxed.
Adedeji, who also doubles as the Chairman, Federal Inland Revenue Service, (FIRS), said “What I would not expect from the JTB meeting is to define a system that would tax the informal sector.
“The only thing is to formalize the informal sector, not to design a system on how to collect tax from market men and women.
“As revenue administrator, our goal is to organise the informal sector so that it can fit into existing tax law.”
Citing a report of the National Bureau of Statistics (NBS) in the first quarter of 2023, the chairman said that the nation’s unemployment index was attributable to recognised informal work.
Adedeji stated that workers in that sector accounted for 92.6 per cent of the employed population in the country as at Q1 2023.
“JTB IS transiting to the Joint Revenue Board with expanded scope and functions.
“We are hopeful that by the time we hold the next meeting of the Board, the Joint Revenue Board (Establishment) Bill would have been signed into Law by the President.
“The meetings of the board provide the platform for members to engage and brainstorm on contemporary and emerging issues on tax, and taxation,” he said.
In his address, Gov. Seyi Makinde of Oyo State, said the theme of the meeting was apt and timely, stressing that it coincides with the agenda of the state to improve on its internally generated revenue.
According to him, the meeting should find the best way forward in addressing the issue of the informal sector and balance the identified challenges.
“Nigeria is rich in natural resources, but it is a poor country because economic prosperity does not base on natural resources,”
Makinde also said that knowledge, skill and intensive production were required for economic prosperity, not just the availability of natural resources.
He stressed the need to move from expecting Federal Allocations to generating income internally.
“We are actively ensuring that people are productive and moving the revenue base forward,” Makinde said.
The governor said that tax drive should be done by simplifying tax processes, incentives for compliance like access to empowerment schemes and loans.
He urged JTB to deepen partnership and innovation in using data on tax to track and administer it.
Earlier, the Executive Chairman, Oyo State Board of Internal Revenue, Mr Olufemi Awakan, said the meeting was to address tax-related matters, evolve a workable, effective and
efficient tax system across the states and at the Federal level.
He urged participants to find amicable solutions to challenges of tax jurisdiction, among others.
Tax administrators from all the 36 states of the federation, who are members of JTB, were in attendance. (NAN)
The Nigeria Customs Service (NCS), Federal Operation Unit (FOU), Zone D, has seized smuggled goods worth over N110 million between April 20 till date.
The Comptroller of Customs, Abubakar Umar, said this at a news conference on Tuesday in Bauchi.
He listed the seized items to include 11,200 litres of petrol; 192 bales of second hand clothing, 140 cartons of pasta, 125 pairs of jungle boots, 47 bags of foreign parboiled rice and 9.
40 kilogramme of pangolin scales.Umar said the items were seized through increased patrols, intelligence-led operations, and strengthened inter-agency collaboration.
The comptroller said the pangolin scales would be handed over to the National Environmental Standards and Regulations Enforcement Agency (NESREA) for appropriate action, while the seized petrol would be auctioned, and the proceeds remitted to the federation account.
He attributed the decrease in smuggling activities of wildlife, narcotics, and fuel to the dedication and professionalism displayed by the personnel in line with Sections 226 and 245 of the NCS Act 2023.
The comptroller enjoined traders to remain law abiding, adding the service would scale up sensitisation activities to combat smuggling.
“We remain resolute in securing the borders and contributing to Nigeria’s economic development,” he said.
The FOU Zone D comprises Adamawa; Taraba, Bauchi, Gombe, Borno, Yobe, Plateau, Benue and Nasarawa. (NAN)
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