NEWS
Reps Query NIPOST over Irregularities, N10bn Withdrawal
By Ubong Ukpong, Abuja
The House of Representatives Committee on Finance on Wednesday queried irregularities in the registration of subsidiary companies under the Nigerian Postal Service (NIPOST).
Chairman of the committee, James Abiodun Faleke (APC, Lagos) issued the query when the Ministry of Finance Incorporated (MOFI) alongside other agencies appeared before the committee for an interactive session on the 2024-2026 Medium Term Expenditures Framework/FSP.
Speaking during the session, Faleke noted that documents before the committee showed that two subsidiary companies under NIPOST were registered under individual names as shareholders instead of the Federal Government, wondering why that was so since NIPOST is a federal government asset.
He said the registration of the two subsidiary companies namely, NIPOST Property Company Ltd and NIPOST Logistics were done with individuals as shareholders.
Faleke also raised issues over the approval and withdrawals of N10 billion for the purpose of the registration of the subsidiary companies.
“Is NIPOST part of your asset? I have a document before me. The registration of NIPOST Property Development Company Ltd. I saw that the shareholders of these companies are individuals. Okoh Alexander Ayoola, Adeyemi Alexander, Aliyu Halima; these are personal names. Are people allowed to register NIPOST property in their personal names?
“I also have NIPOST Logistics also registered in personal names. I want to know from you; did you give CAC permission to register Nigerian assets in personal names; some of them were working as civil servants and some of them have retired.
“Are you also aware that N10 billion was approved and withdrawn to be used for the setup of these entities and that same N10 billion came in and also went out in the name of NIPOST from an account opened as NIPOST Property; Are you aware of that”, Faleke queried.
Responding, the Chief Executive Officer of MOFI, Dr Armstrong Takang, admitted there were irregularities within the system and that he needed the support of the committee to address them.
“The question you raised is precisely why this committee needs to partner with us in addressing irregularities in our system. That is one example, there are many cases. The simple answer is simply no; for a federal government entity, the shareholders must be registered under MOFI.
“This was recently brought to my attention and we are on it. We have sent a letter to CAC through the Federal Ministry of Finance that they should not register any shareholder in a government entity other than MOFI. That is the only way in the eyes of the law that the government can claim such property. We did also indicate in that letter that whenever anyone wants to register a commercial entity for the FG, they ought to request for a letter of no objections from MOFI to ensure that the registration process does not in any way undermine what the law states as far as ownership of government interest is. Clearly, that is what that is”, he said.
On the issue of N10 billion reportedly approved and withdrawn for processing the NIPOST subsidiary companies, Takang said the Bureau of Public Enterprises (BPE) would be in the best position to answer that.
He said, “I will defer that question to BPE because BPE supervised the process for unbundling of NIPOST to those two entities which is Logistics Company and Property Development Company.
Earlier in his opening remarks, Faleke said the federal government must not accept laxity on the part of any agency or representative acting on its behalf in signing deals that affect the country.
He said the interactive session with the Agencies and stakeholders on government finances was to ensure the passage of the MTEF/FSP before the presentation of the 2024 annual budget.
Faleke said, “The MTEF is the very basis of the annual budget which is itself the backbone of the implementation of the Federal Government’s plans and policies.
“As the representatives of the Nigerian people, a position which we occupy in trust for them, we owe Nigerians the onerous responsibility of delivering the democratic dividends to the door steps of our constituents in line with our campaign promises.
“We can only achieve them through the powers bestowed on us by the Constitution of the Federal Republic of Nigeria (Amended) i.e. oversight, representation and law making. That is the gumption of the oath we took during inauguration of the 10th House of Representatives.
“As this is the first MTEF/FSP presented by the Administration of His Excellency, Bola Ahmed Tinubu, President and Commander in Chief of the Armed Forces, and received by this 10th Assembly, this interactive session is to familiarize ourselves, we the House Committee on Finance and all the various agencies who have significant inputs in the MTEF and the National Budget”
He noted that the sessions are expected to be held at least quarterly so that projections agreed upon are monitored and oversight reports laid before the House and Nigerians on the progress of the budget.
The Committee Chairman emphasised that revenue is crucial on the outcomes of the National budget.
He said the Committee has observed various factors that have caused shortfalls in expected revenues as well as charges to Government revenues from commitments by agencies of Government.
He added, “The Committee will not accept such laxity on the part of MDAs in not negotiating the best for the Country.
“The $11 billion P&ID fiasco is still fresh in our minds where the whole Country was almost held hostage to a fraudulent agreement.
“Another agreement signed on behalf of the Government by NBET and Azura Power has committed payments of over $30m per month.
“This agreement is dollar denominated and applicable even now in times of acute foreign exchange shortages.
“The Committee is committed to ensure value for money is attained in all Government agreements.
“Our revenues have been reducing over the years due to decreases in oil revenues which used to be our major earner. The Committee has vowed to get to the bottom of these oil shortfalls.
“The NNPC, our oil asset managers, give oil theft as the main cause; however, how are our marginal field operators performing vis-a-vis the various oil fields’ potentials?”
The Accountant General of the Federation, Oluwatoyin Madein who was present at the session, said the federal government was doing everything possible to block revenue leakages and shore up the revenue of the government to meet its needs.
Special Adviser on Media and Publicity to the President Chief Ajuri Ngelale has quit his job. He said in a statement in a Abuja that he would proceed on an ” indefinite leave, to deal with ” medical matters” affecting him amd hia immediate family.Hos statement reads: “On Friday, I submittd a memo to the Chief of Staff to the President informing my office that I am proceeding on an indefinite leave of absence to frontally deal with medical matters presently affecting my immediate, nuclear family.
While I fully appreciate that the ship of state waits for no man, this agonizing decision — entailing a pause of my functions as the Special Adviser to the President on Media & Publicity and Official Spokesperson of the President; Special Presidential Envoy on Climate Action, and Chairman, Presidential Steering Committee on Project Evergreen — was taken after significant consultations with my family over the past several days as a vexatious medical situation has worsened at home.I look forward to returning to full-time national service when time, healing, and fate permit.I respectfully ask for some privacy for my family and family”
By David Torough, Abuja
About 1000 Civil Society Organizations (CSOs), under the auspices of Coalition Of Civil Society Organisations (CCSOs), on Saturday Faults President Bola Tinubu’s Economic Team and called for immediate reconstitution.Expressing deep concerns over the state of the economy and escalating fuel prices compounding the hardship of Nigerians despite the recent protest, the groups said Tinubu must act now to avert disintegration.
The groups said the current situation across the country has cast doubt on the competence of the Tinubu economic team and called for urgent review. The CCSOs in a statement by its National Coordinator, Mallam Ibrahim Mohammed, pointed out that the plight of Nigerians is sinking low and their patience is wearing off following the deteriorating economy.The statement reads in part, “The Coalition of Civil Society Organisations (CSOs) is deeply concerned about the deteriorating state of the Nigerian economy, which is becoming increasingly unbearable for millions of citizens.“It is evident that the recent hike in fuel prices and the unstable exchange rate are the direct results of economic mismanagement by those responsible for overseeing our nation’s financial policies. The ripple effects of these failures are being felt in every household across the country, worsening poverty and crippling economic activity.“The floating of the Naira, which was initially sold to Nigerians as a means of stabilizing our currency, has done little to prevent the continued devaluation of the Naira. In fact, the exchange rate disparity has widened significantly, with the Naira losing value daily, impacting the cost of living, basic commodities, and inflation.“While this policy was expected to ease foreign exchange pressure, it has instead deepened economic challenges due to poor implementation and lack of strategic foresight.”The coalition also expressed concern over what it described as a death trap of indebtedness of the Nigerian National Petroleum Company Limited (NNPCL), which also they claimed had slowed down importation of Premium Motor Spirit, PMS, hence the current shortage of PMS across the country. “Of equal concern is the precarious position of the Nigerian National Petroleum Company Limited (NNPCL), which finds itself in a debt trap, with global suppliers of petroleum products losing confidence in Nigeria’s ability to honour its obligations.“Reports have shown that NNPCL has accrued debts totalling over $6 billion, causing petrol supply shortages. International suppliers are now reluctant to continue providing fuel on credit, exacerbating supply chain issues and pushing up the price of petrol at the pump”, they claimed.The CSOs also asserted that, “We hold the managers of the Nigerian economy responsible for these disturbing developments. Their inability to provide sound policies and long-term solutions has left the nation in this predicament.“It is clear that there is no cohesive strategy to address the rising debt, the growing imbalance in the foreign exchange market, or the country’s heavy reliance on importation for petrol supply. The recent hike in fuel prices reflects the collapse of responsible economic management and accountability.“Nigerians are left to bear the brunt of these failures. Businesses are shutting down, transportation costs have skyrocketed, and citizens are spending an increasingly larger percentage of their income on basic necessities. This state of affairs is unacceptable.”The group therefore placed some demands; Immediate intervention from the government: There needs to be a comprehensive and transparent plan to stabilize the Naira, restore confidence in the petroleum supply chain, and negotiate a restructuring of NNPC’s debts to ensure continuous fuel supply.“Accountability for economic mismanagement: Those responsible for the reckless management of our foreign exchange policies and NNPC’s debts must be held accountable. The government must also disclose its plan to mitigate the rising fuel costs and economic burden on Nigerians.“A return to sound financial policy: The floating of the Naira has proven ineffective under current conditions. We call for a re-evaluation of monetary and fiscal policies to stabilize the economy, reduce inflation, and attract foreign investment.“In conclusion, the Coalition of Civil Society Organisations reiterates that without immediate corrective measures, the economic situation will continue to deteriorate, leading to further hardship for the average Nigerian. The government must act decisively and responsibly to reverse this downward spiral”, they added.
There is growing tension in Ugondu community, Makurdi LGA, Benue state by young people opposed to the demolition of houses and destruction of rice farms in the area allegedly on the directives of senior Air Force officer, Air Commodore Akinbuwa Ayodele.
It was learnt that Commodore Ayodele, who is facing multiple legal actions following dispute over a plot of land located on George Akume Way Makurdi and owned in blatant disregard to the judicial process embarked on destruction of structures on the plot.
Eyewitness said when the equipment arrived no one imagined it was for destruction.
But in a militray- like operation, two flats of two units each, completely roofed, electrified and plumbing work completed were among the structures demolished as the bulldozers rolled over rice farms in the vicinity as well.
It was learnt that last year, a Makurdi High Court presided by Justice Mary Ijohor, granted an order of perpetual injunction, in the same matter, upon application by the supposed owner of the plot and awarded the sum of One Million Naira (N1,000,000.00) only, as cost. The matter, enforcement of fundamental rights, was marked as MHC/582/M/2023.
Godwin Akor whose rice farm was destroyed in a chat with newsmen said that he was shocked at the development. He however said he won’t speak more on the matter as it is still before the court.
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