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Still on Stamp Duty Controversy Presidency

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By Mathew Dadiya, Abuja

President Muhammadu Buhari came into office in 2015 to find that a law, which stipulated for the collection of a token on banking transactions existed but was not being correctly implemented

This anomaly arose because certain characters apparently formed a cartel with collaborators in the Nigerian Postal Service, NIPOST and were allegedly collecting and pocketing this money.

Soon after, a non-government organization posited to the administration that the Nigerian government had lost the sum of over N20 trillion to the Nigerian Inter-bank Settlement System ((NIBSS) between 2013-2016 in this regard, claiming that the said sum could be recovered and paid back into the government coffers.

The consultants asked to be paid a professional fee of 7.5 percent and were placed under the supervision of the Secretary to the Government of the Federation, SGF.

Following the lack of progress in the promised recovery, the late Chief of Staff to the President, Abba Kyari wrote on March 8, 2018 to the SGF conveying a presidential directive that following the lack of progress and several expressed concerns received, the activities of the consultants be discontinued.

In the aftermath of this dismissal, the consultants sued the government.

A court of competent jurisdiction subsequently ruled in favour of the government.

Arising from the outcome of the litigation and the well known controversy on the legally responsible agent for collecting this levy, the administration went to the National Assembly and caused an amendment to the law and removed NIPOST from the duty of its collection.

Having lost a potentially “lucrative” line of “business,” the sacked characters returned to the drawing board to formulate one form of trick or another to intimidate the government but the vigilant teams of the administration kept them at bay.

Lately, they returned to the government through Hon. Muhammadu Gudaji Kazaure with a plan to track the so-called lost stamp duties with the erstwhile consultant as chairman and Hon. Gudaji as secretary.

When it emerged that the petitioner and lead consultant of the committee the President had dissolved via the late Abba Kyari’s letter of March 28 had masqueraded himself and re-emerged as the chairman of the new recovery committee championed by the Hon. Gudaji, the President rescinded the approval he gave and asked that it be stopped from operating under the seal of his office.

In addition to this committee being chaired by a petitioner, there were also other concerns relating to natural justice and fair hearing in having the Chief Justice of the Federation as a committee member and a serving member of the House of Representatives as Secretary, which are not in line with Section 5(1),(a)&(b) of the 1999 constitution of the Federal Republic of Nigeria (as amended).

Once the President rescinded his approval to constitute this Committee, lost all legitimacy.

Arguments have in recent days been flying left and right over the rightfulness of a committee being dissolved.

People are entitled to hold opinions. But these opinions do not change the fact that under our constitution, the power of the president to appoint and remove persons or groups is duly entrenched and unless such powers are shared with the Parliament, the President can hire and fire literally at will, and in line with the law.

To go back to the main issue though, it is now evident that the consultants and petitioners’ claims of a missing N89 trillion from stamp duty appears false and a figment of their malicious imaginations.

The same set of consultants claimed in 2016 there was N20 trillion to be collected. It was found to be false. The entire banking sector deposit is not even up to half of N89 trillion.

Indeed, if the Federal Government can find N89 trillion Naira, it can pay off all its debt, both foreign and local currency and all state government debts and still have over N10 trillion left.

So, the claim by these so-called consultants and the disbanded committee  is totally ridiculous and a complete mockery.

Our good friend and a committed party member, Hon Gudaji has tried to draw  me into a public debate which I don’t consider a good idea.

In a video clip in Hausa and a press release in English both by this good friend of the administration, Hon. Gudaji Kazaure, invited me to answer questions, some of which are completely lacking in imagination.

I would have ignored the allegations therein. Yet, a wise man once said that a lie can travel the world while the truth is still wearing his shoes.

It is on the basis of the above that I decided to put some things straight and respond directly to Hon. Kazaure’s questions posed to me.

Specifically, I will respond to each of his questions as follows:

(A) “The money with CBN I & E window Account stood at $171 billion dollars as at 2020 what is the source of that money?”

To my knowledge, the CBN-established Investors and Exporters (I&E) Window is a foreign exchange trading platform where banks and other authorized dealers can buy or sell foreign exchange. These trades are recorded by the CBN daily and reported as turnover or activity in the market.

Contrary to Hon. Kazaure’s assertion, the I&E window is NOT an “account” where foreign exchange is deposited. It is simply a platform for trading foreign exchange. As of April 2020, the total amount of foreign exchange traded (either bought or sold) in the window was about $171 billion. The size of this amount suggests that there is adequate liquidity or availability of foreign exchange and that anyone who wants to buy or sell would easily find a counterparty to trade with. The amount does not mean that we have $171 billion stacked away in some vault or saved in any account.

Note that both the CBN and authorized dealers are free to bring foreign exchange to the window, and in fact, the CBN is not the major seller of Foreign Exchange in that segment of the market.

(B) “The N23.4 trillion CBN gave as a loan to some banks, what is the source of that money?”

The CBN is best placed to respond to this question though I must say the assertion itself is both baseless and misleading. The total balance sheet of the CBN is not anywhere near N23 trillion. So how can it give such an amount in loans to any or some banks?

(C) “The N13 trillion loan to the federal government from FMDQ, what is the source of that?”

According to the DMO, the total amount of Nigeria’s domestic debt as of September 2022 is N21.6 trillion. Is Hon. Kazaure suggesting that a small company in Lagos holds over 60 percent of Nigeria’s domestic debt? More also, of the N21.6 trillion domestic debt, only N4.5 trillion are in Treasury Bills? How then can a company in Lagos hold more treasury bills (N13 trillion) than the entire treasury bills issued by the Federal Government? For the avoidance of doubt, I also took time to reach out to the  FMDQ ( Financial Markets Derivative Quotes) and understand from their audited financial statements that their holdings of FGN Treasury bills is just  N7.99 billion as of December 2021.

(D) “Finally, what is the total equity of CBN and its National budget?”

Anyone who understands this question should provide an answer. I can offer this information: on an annual basis and in line with the Fiscal Responsibility Act, the CBN transfers 80 percent of its operating surplus to the Federal Government as part of the budget revenues. In the last 6 years, this contribution has amounted to over N150 billion.

Let me inform, that Mr. President has not completely ignored these matters. Indeed, a duly authorized committee under the Attorney-General and Minister of Justice, Abubakar Malami (SAN) is working to reconcile, recover and transfer all Stamp Duties into Stamp Duties Central Account.

The work is ongoing, it is not finished yet and the President will continue to show his keen interest in the matter of Stamp Duty collection.

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CBN Shakes Up Banking Sector: A Paradigm Shift Unveiled

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By Ademola Oyetunji 

In a surprising turn of events on Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards of three prominent commercial banks – Keystone, Polaris, and Union Bank. This move, although unanticipated, transpired despite the Central Bank’s recent endorsement of these banks’ financial soundness.

Governor Olayemi Cardoso, at his inaugural address during the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner last year, had lauded Nigeria’s financial sector’s resilience in 2023.

Stress tests conducted on the banking industry indicated its strength under various economic scenarios. However, Cardoso highlighted the need for banks to reassess their responsible banking framework, a sentiment echoed by President Tinubu.

President Tinubu’s evident discontent with the Godwin Emefiele-led CBN triggered a comprehensive review of the financial system. A special investigator, Jim Obazee, was appointed to conduct a forensic investigation into Emefiele’s tenure, with damning revelations emerging. Recent developments suggest the initiation of a full-blown financial system reform.

The CBN’s dissolution announcement and the subsequent appointment of new executives for the affected banks, including Yetunde Oni, Mannir U. Ringim, Hassan Imam, Chioma A. Mang, Lawal M. Omokayode, and Chris Onyeka Ofikulu, might mark the beginning of implementing the investigation’s recommendations – a significant cleanup of the financial sector.

Allegations surfaced during the investigation, suggesting non-cooperation from some bank executives and Emefiele’s questionable acquisitions through proxies and cronies. Cardoso may have secured presidential approval for the CBN’s decisive action.

The CBN cited various infractions by the banks, including regulatory non-compliance, corporate governance failures, and activities threatening financial stability. Despite the challenges, the CBN assured the public of depositors’ fund safety and its commitment to upholding a safe, sound, and robust financial system.

The Special Investigator’s report revealed documents pointing to Emefiele’s involvement in Titan Trust Bank and Union Banks’ acquisitions with ill-gotten wealth. The CBN’s swift replacement of the ousted chief executives received widespread commendation, especially from high-net-worth stakeholders aiming to avert a crisis of confidence within the affected banks.

Adewale Aderounmu, an industrialist, applauded the CBN for implementing effective policies under Olayemi Cardoso’s leadership, despite detractors’ actions against the Naira. Ayomide Deepak, an Abuja-based stockbroker, welcomed the action but emphasized the need for caution in handling revelations from the investigation to prevent further economic challenges.

As the CBN wields its regulatory hammer on these banks, the hope is that other bank executives and investors will learn valuable lessons for the sake of the economy. The CBN’s action is perceived as a strategic move aimed at revitalizing the economy and financial system, not a mere vendetta.

*Ademola Oyetunji writes from Ibadan.

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Firm Blazes The Trail To Revolutionise  Nigeria’s Transport Sector

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Independent Capital, a visionary project finance firm has blazed the  trail in the country by championing green innovation and facilitating as well as  supporting green innovative projects in Nigeria.

This is coming on the heels of the plan by the Nigerian government to introduce gas-powered vehicles in the country as a fallout of the removal of fuel subsidies.

The Chief Executive Officer (CEO) of the firm, Dr.

George Nwangwu who announced this in a statement in Abuja on Tuesday, said it was aimed at  a transformative leap towards sustainable transportation in the country.

He said with the company’s fusion of financial expertise, a profound understanding of environmental and social impact, a commitment to reducing carbon emissions and  improving transportation quality, “the company aims to reshape the nation’s mobility landscape for a cleaner and more prosperous future”,adding that “it is charting new territories in the realm of sustainable finance by announcing ambitious plans that signify a paradigm shift in Nigeria’s approach to eco-friendly initiatives”.

Similarly, Nwangwu said, its strategic approach combines financial expertise with a profound understanding of environmental and social impact, positioning the firm as a catalyst for positive change in the country’s transportation sector.

He added that the  cornerstone of Independent Capital’s visionary plans involves the unbundling of its three-wheeler Electric Vehicle (e-trike) which signals a significant move towards eco-conscious mobility.

 The CEO further said that the company is committed  to establishing a robust network of solar-powered charging infrastructure to support the operations of its e-trike fleet as the  innovative strategy not only tackles the obstacles associated with adopting electric vehicles but  would also actively contribute to the establishment of a sustainable energy ecosystem.

“We are dedicated to reducing carbon emissions, alleviating congestion and improving the overall quality of transportation for the Nigerian population. Independent Capital aims to create a greener and more efficient transportation ecosystem that enhances the lives of individuals and contributes to a cleaner environment, “he noted.

According to the firm’s CEO, in response to the recent removal of fuel subsidies, the Nigerian market is experiencing a fundamental shift, creating an opportune moment for innovative solutions in the e-mobility sector which “Independent Capital is well-positioned to capitalize on this shift by introducing sustainable transportation alternatives that cater to the evolving needs of the market”.

Also, speaking, the Chief Finance Officer (CFO) of the company, Mr.Moses Saromi said “with the e-mobility sector undergoing significant developments, driven by environmental concerns, technological advancements and shifting government policies our firm is poised to play a pivotal role in shaping the future of transportation in Nigeria,”

He revealed that  the demand for e-mobility solutions in Nigeria is projected to grow exponentially by 15% CAGR and thus, Independent Capital stands at the forefront of providing sustainable alternatives to traditional vehicles and that with  a focus on e-trikes, the company strategically positions itself to capture a significant share of the expanding market to  meet the diverse needs of individual consumers and delivery services to the Nigerian society.

He added that in  the pursuit of a cleaner and more efficient transportation ecosystem, Independent Capital remains a driving force in the nation’s journey towards a greener future.

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Dangote Refinery Port Facility Receives Maiden Crude Cargo

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Dangote Petroleum Refinery and Petrochemicals plant has purchased 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.

The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

The maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.

The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

Dangote Petroleum Refinery can meet 100% of the Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have surplus of each of these products for export.

The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck loading gantries.

Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.

The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.

President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”

Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”

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