- Identifies scarcity of petroleum products, naira redesign as major challenges
- Tinubu hails governors over Supreme Court ruling on new Naira
- Protesters storm CBN, AGF offices over verdict
- Remove fuel subsidies, increase targeted social spending to restore economy, IMF charges FG
BY FESTUS OKOROMADU AND MAYOWA SAMUEL
The Chairman of the Independent National Electoral Commission, Mahmood Yakubu, has reinstated that the 2023 general elections will be held as scheduled.
Yakubu said this on Wednesday in Abuja when he fielded questions from State House Correspondents after he briefed the Federal Executive Council on the level of preparedness for the conduct of the elections.
He identified scarcity of petroleum products and the naira redesign as major challenges confronting INEC, saying, however, that solutions were already in sight.
“We took members of the council through all the preparations that we have put in place for the elections and the few challenges that we are facing and the steps we have taken to address them.
“The first one is the availability of petroleum products. We had a meeting with the National Union of Road Transport Workers and they raised that as an issue of concern,” Yakubu said.
He said that immediately after the meeting with the transport union, the commission interfaced with the leadership of the Nigeria National Petroleum Company Ltd.
“Right now, there is a technical committee working; the idea is for them to avail us the use of their over 900 land mega as well as floating mega stations nationwide for the purpose of stocking products.
“This is to ensure that the commission doesn’t suffer any encumbrances in movement of personnel and materials for the election.
“The second one is the currency issue and again we had an engagement yesterday with the Governor of the Central Bank of Nigeria and he assured us that the commission will not suffer any encumbrances on that front.
Fortunately for us, all our accounts, national and state are held by the apex bank,’’ he said.
Yakubu added: “So, we raised those challenges and we have found solutions to those challenges so be rest assured that the elections are going to be held as scheduled; on February 25 for the National and on March 11 for the State election.”
The INEC Chairman also said that he plans to brief the Council of State on February 10.
TINUBU HAILS SUPREME COURT VERDICT ON NAIRA
Meanwhile, the presidential candidate of All Progressives Congress, Bola Tinubu, has hailed governors in the 36 states of the federation for defending the masses over the controversial Central Bank Naira redesign and cashless policies.
This was disclosed in a statement issued in Abuja on Wednesday by the Director of Media and Publicity for APC Presidential Campaign Council, Bayo Onanuga
The development came hours after the Supreme Court temporarily halted the move by the Federal Government to ban the use of the old naira notes from February 10, 2023.
A seven-member panel led by Justice John Okoro had granted an interim injunction against the CBN and Federal Government, allowing the old N200, N500 and N1000 to remain legal tender beyond the February 10 deadline until the case is fully disposed of.
An excited Tinubu disclosed that the governors, especially the ones governing the APC states who instituted the suit against the FG and CBN at the Supreme Court, acted well on behalf of the hapless Nigerian masses who have been made to bear the brunt of Naira redesign policy.
According to the APC candidate, the apex court ruling coincided with the advisory of the International Monetary Fund urging for the extension of the deadline for the swap of the old naira notes.
He said, “I want to salute the courage of our governors, especially the Progressives Governors in APC, who acted to save our country from avoidable and dangerous political crises and social unrest, which the Central Bank policy on new Naira notes has brought on our country.
“Our country was dangerously careering toward anarchy and political and economic shutdown. But with the Supreme Court interim ruling our country has been pulled back from the precipice. We thank our Supreme Court Justices for ruling wisely on the side of the people who have been subjected to undue agony and pain since this policy was announced.
“The Federal Government and relevant stakeholders can now sit down and work out a better framework on how to proceed with the new policy without causing any social and economic disruption and inconvenience to our people. We have examples of other countries that have successfully and seamlessly changed their currencies to learn from.
“Those countries give a long time, at least 12 months to effect the currency change. They do not engage in a CBN-like Fire Brigade approach. We have seen how a good policy can be poorly implemented to cause unintended problems for the people who should be the beneficiaries. While lessons have been learnt, we must now move on as a country and people with a Renewed Hope for a better tomorrow.
“The sole aim of my running to be the president of our country is to make life better and more abundant for our people and this is an ideal for which I will remain eternally committed to.”
The APC presidential candidate further called on the CBN to ensure that the Supreme Court ruling is effectively executed by taking all necessary steps to ensure sufficient availability of the Naira (whether old or new) and properly sensitising the public on the ruling including the consequent validity of old notes.
PROTESTERS STORM CBN
Consequently, more than 300 aggrieved youths converged in Abuja on Wednesday to protest against the ex parte order of the Supreme Court temporarily halting the move by the Federal Government to ban the use of the old Naira notes from February 10, 2023.
The protesters, who converged at the headquarters of the CBN and the office of the Attorney-General of the Federation, passed a vote of confidence on the CBN urging them not to back down.
The protesters, armed with placards with inscriptions such as ‘Justice Ariwoola, resist plot to use our Supreme Court undermine democracy,’ accused the Chief Justice of Nigeria, Olukayode Ariwoola of allegedly working for the interest All Progressives Congress, its presidential candidate, Bola Tinubu and G5 Governors.
Urging President Muhammadu Buhari to issue an executive order for the old notes not to be in circulation, the leader of the protesters and coordinator of Civil Society Central Body, Obed Agu, called on Nigerians to reject the old Naira notes in their own interest.
He called on Buhari to issue an executive order terminating the policy deadline, saying that corrupt politicians seeking extension want to buy votes.
Agu said, “We call on President Muhammadu Buhari to issue an executive order for the policy to terminate the February 10 deadline and prevent further extension. The Supreme Court wants to aid corrupt politicians in buying votes.
“The Supreme Court ex parte application has no legal basis. We are rejecting it, because it is a plot to open the bank vaults to enable vote buyers and holders of illicit wealth to have cash to buy votes. We ask the CJN to hurriedly vacate the ex parte order in the overall interest of the Nigeria election.
“We have suffered a lot in the hands of the Supreme Court in undermining any effort for credible election. The Supreme Court voided the card reader which aided and increased official election result rigging.
“The Supreme Court declared a man who came 4th in the election as governor of a state and that helped to destroy Imo State and the sanctity of the ballot. We won’t allow the CJN to use the apex office to undermine our democracy and President Muhammadu Buhari’s promise of peaceful transition.”
REMOVE FUEL SUBSIDIES – IMF CHARGES FG
Also, the International Monetary Fund has urged the Federal Government to stay committed to its promise to remove fuel subsidies by mid-2023, and as well increase well-targeted social spending in order to revamp the nation’s economy as soon as possible.
The International lender also charged the government to deploy bold fiscal reforms so as to create needed policy space, put public debt on sound footing and reduce vulnerability.
These were contained in a press statement on the conclusion of IMF Executive Board Article IV consultation with Nigeria for 2022 released from its Washington, DC, headquarter on Wednesday.
Highlighting the bright side of the economy in 2022, the IMF noted that Nigeria’s economy has recouped the output losses sustained during the COVID-19 pandemic supported by favourable oil prices and buoyant consumption activities.
It added that gross domestic product adjusted for inflation has already reached its pre-crisis level and the third quarter of 2022 marked the eighth consecutive quarter of positive growth—despite continued challenges in the oil sector.
The report noted that, “Headline inflation declined in December 2022 for the first time in 11 months, but at 21.3 percent remains high—driven by elevated international food prices, large parallel market premiums and monetary policy accommodation. While the Central Bank of Nigeria raised the Monetary Policy rate (MPR) by a cumulative 500 basis points in 2022 and another 100 bps in January 2023, inflation remains above the MPR.
“Despite rising oil prices, the general government fiscal deficit is estimated to have widened further in 2022, mainly due to high fuel subsidy costs. While the current account is estimated to have improved in 2022, foreign currency reserves declined amidst capital outflow pressures.”
Analysing the prospect of the Nigeria economy, IMF said, “The near-term outlook faces downside risks, while there are upside risks in the medium term. Higher international food and fertilizer prices and continued widening of the parallel market premium could culminate in the de-anchoring of inflation expectations.
“The oil sector faces downside risks from possible production and price volatility, while climate-related natural disasters (e.g., floods) pose the same risks to agricultural production. Further widening in sovereign premium could increase debt servicing costs. In the medium term, there are upside risks from a potential stronger reform momentum and a larger-than-expected rebound in oil and gas production.”
While expressing its appreciation on the broadening of the nation’s economic recovery, the IMF report noted that Nigeria missed the opportunity to reap the benefits from higher global oil prices. The report underscored near-term downside risks arising from elevated inflation, high debt-servicing costs, external sector pressures, and oil sector volatility.
On the way forward, the IMF recommended decisive fiscal and monetary tightening to secure macroeconomic stability, combined with structural reforms to improve governance, strengthen the agricultural sector, and boost inclusive, sustainable growth.
Expatiating on recommendation of the IMF team report, the release said, “Directors highlighted the need for bold fiscal reforms to create needed policy space, put public debt on sound footing, and reduce vulnerabilities. They urged the authorities to deliver on their commitment to remove fuel subsidies by mid-2023, and to increase well-targeted social spending.
“Strengthening revenue mobilization, including through tax administration reforms, expanding the tax automation system and strengthening taxpayer segmentation, and improving tax compliance is also a priority. In the medium term, Directors recommended modernizing customs administration, rationalizing tax incentives, and raising tax rates to the levels of the Economic Community of West African States.
“Directors urged decisive and effective monetary policy tightening to avoid a de-anchoring of inflation expectations. Noting recent increases in the policy rate, they encouraged the Central Bank of Nigeria (CBN) to stand ready to further increase the policy rate if needed, and to implement additional actions, including fully sterilizing central bank financing of fiscal deficits and phasing out credit intervention programs.
“Strengthening the CBN’s independence and establishing price stability as its primary objective is critical. Directors also urged the authorities to finalize securitization of the CBN’s existing stock of overdrafts and emphasized that the CBN’s budget financing should strictly adhere to the statutory limits.
“Directors encouraged a continued move toward a unified and market-clearing exchange rate by dismantling various exchange rate windows at the CBN. Providing clarity on exchange rate policy would help boost investor confidence, quell capital outflow pressures, and rebuild buffers. They welcomed Nigeria’s intention to participate in the African Continental Free Trade Agreement.
“Directors welcomed the resilience of the banking sector and encouraged increased vigilance given potential risks associated with dynamic retail credit growth. They also emphasized the need to enhance the effectiveness of the AML/CFT framework and to avoid public listing by the FATF. Directors welcomed ongoing efforts to foster financial inclusion, including through the use of mobile money with appropriate regulation and supervision.
“Directors highlighted the importance of improving the performance of the agricultural sector for job creation and food security. They urged the authorities to implement governance reforms, including delivering on commitments from the 2020 Rapid Financing Instrument. Improving transparency and accountability in the oil sector is also key to strengthening governance.”
