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Senate Summons CBN Officials Over N30tn Loans

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The Senate has said it will quiz some officials of the Central Bank of Nigeria on how the N30tn Ways and Means loan was obtained and spent by the Federal Government during the Muhammadu Buhari-led administration.

The Chairman of the Senate Ad-hoc Committee Senator Isah Jibrin, who made the disclosure in an exclusive interview with The PUNCH, also revealed that the panel would commence the probe this week.

The Senate had on Tuesday appointed Jibrin as the chairman of the panel to probe the N30tn Ways and Means loan released by the then CBN Governor, Godwin Emefiele, to the Buhari administration.

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The ‘Ways and Means’ is an overdraft taken directly from the central bank to fund budget deficits or address national contingency needs. This usually follows the approval of the executive arm of government and is meant to be ratified by the parliament.

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The Senate had last week Tuesday resolved to probe the N30tn facility, stating that the alleged reckless spending of the overdraft collected from the CBN largely accounted for the food and security crises currently facing the country.

The red chamber then resolved to set up an Ad -hoc committee to investigate how the fund was spent, explaining that the details of how it was spent were deliberately not made available to the National Assembly.

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However, the chairman of the panel, also known as Echocho, said the panel had started some background checks based on some documents in its possession.

In an exclusive interview with The PUNCH on Thursday, he said, “We are looking at next week for the investigation at the committee level, but as chairman, I am not waiting for that. I have some documents; I want to write to CBN to provide me with information on some areas.

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“Because Ways and means cover very large latitude, so based on the information that I have now, I am going to write to seek clarifications on certain issues thereafter the committee will meet.”

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He added that the Ways and Means loan also came up in December 2022 towards the end of the ninth Senate.

Senator added, “I have some documents and I want to leverage on those documents by going through them to ask questions from the CBN to seek further clarifications. Thereafter, we will now invite CBN officials who were engaged under Emefiele, although he is no longer there.

“They were a part of it, they have to come and explain to us. The terms of reference are very simple.

“These monies were given out. We want to know the agencies that benefited from those monies.

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“We also want to know the individual Nigerians who benefited. We want to know the terms and conditions. The CBN is not Father Christmas. They are loans; we want to know the beneficiaries of those loans.

“What are the terms and conditions of those loans? What are the collaterals collected to fall back on when there is a default? Have they been repaid? What are the repayment schedules? In case of default do we have collateral? So those are the issues, we are not witch-hunting anybody.”

He further explained, “This country belongs to all of us, we want to know what actually transpired because we are where we are today because of those reckless exercises.

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“I will call it reckless because when you are taking a decision as an economist because I want to believe, we have economists there when you take a particular decision, you should be able to ascertain the possible impact of that decision on the larger community.

“You either withdraw or you modify, that is why I am happy that the Monetary Policy Committee has been composed. You know the composition of the MPC is crucial because that is where policy measures are taken. You need to look at it, if this variable is this, and the state of the economy is XYZ, what do you do?

“How do you tinker with some of those variables so that the larger society will improve? That is why we want to unravel all that happened not to witch-hunt anybody but to know the extent to which Ways and means advances have been performed and then other decisions can be taken thereafter.”

It is unclear if the committee will also eventually summon Emefiele as the probe deepens.

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BREAKING: Organised Labour Shut BEDC Head Office

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Combo of BEDC head office building and some members of the organised labour.

The organised labour is currently occupying the head office of the Benin Electricity Distribution Company, BEDC, PLc over hike in electricity tariff.

The organised labour comprising the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, pocket the head office of the distribution company, today, May 13, insisting that they will not leave the office until the tariff is reduced to its old rate.

Speaking with journalists at the front of the office, Edo State NLC chairman, Comrade Odion Olaye, said members of the organised labour woke up as early as 6:am to shut the office as directed by the national body of labour.

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Olaye said what the NLC is demanding from the National Electrity Regulating Commission, NERC, and the DisCos is to revert the rate to 65 per kw, insisting that they will not retreat until the price is reverted.

He added that a directive was also given by the National body to shut the regulating body of electricity, that is NERC.

More details to come

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OPINION: Taxing Hunger In Iregba

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By Lasisi Olagunju

I do not believe that the president of any country will deliberately wreck everything. Their problem may be arrogance or ignorance – or arrogance in ignorance. Or, they may be worshipping wrong gods or feeding their gods with what they must not eat.

You remember Sir Shina Peters’ song for M.K.O. Abiola on the billionaire’s implacable friends who refused to eat his food?

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“You gave smooth pounded yam to your friend,

Your friend refused to eat.

You made soft, mushy amala for your friend,

Your friend refused to eat.

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You called your friend,

Your friend refused to answer you.

You do not know what they say you did wrong.”

There are at least two sides to a story such as this. Why would I give my friends food and they refuse to eat? Why would I shout their names and they ignore me? Am I calling the right names? If my offerings are right, shouldn’t I then check if they are really my friends?

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The ace musician sang that song years before June 12 happened to Abiola. The musician may not know, but that chant is straight from the lore studio of the priests of life.

The foundation story of the song I tell here:

One ancient Yoruba king called Oniregba Osodi, at the beginning of his reign, asked his priests if his era would be peaceful and prosperous. The king was told to take care of all birds in his kingdom because they were hungry and angry and would hurt his happiness.

“What should I do and where are the birds?” the king should ask that question but he did not ask. He was the smartest and the wisest human being around, so he thought.

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Instead of asking for directions, the king announced that he knew the road and blurted out orders. He commanded every man and woman in his kingdom to bring out all their grains and feed their ducks and fowls. The people brought out their corn and guinea corn and fed their ducks and pigeons, chicks and chickens.

The king was happy and satisfied.

But, the real hungry, angry birds were looking and watching.

“This oba is king also in idiocy,” they concluded and resolved to teach the powerful how to be wise.

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Then, they struck. Nothing Oniregba did amounted to anything. He moved from market to farm, all was in vain. His efforts were like Abiku’s bangles in Soyinka’s lines. He sent his servants on an errand, they did as Alaafin Aole’s spell ordered them: The messengers did not come back. They even did worse. They created their own message, like Afonja did, and delivered the same to an audience different from their lord’s. Wracked by hunger and want, shouts of “ebi npa wá” rent the town while disease and death and general pestilence reigned.

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In the midst of the commotion, the sad king, in tears, challenged his priests on the failure of their prescription. “False prophets,” he called them.

They replied the king that he did not feed the birds as they counseled him to.

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He said he did. They told him he didn’t.

The king gave a detailed account of his specific orders and how they were carried out.

The priests exchanged looks and laughed. They told the king: “Kabiyesi, you offered the wrong sacrifice to the wrong birds in the wrong place.”

The wise ones moved near the king and, in plain language told him who was hungry and angry and needed to be fed. He wondered why the priests did not tell him this the other time; the priests reminded him of his haste, his arrogance, ignorance and lack of decorum. “You didn’t wait and didn’t ask,” they told him. The king’s royal head wisened. He was sober. Now, he did what the priests told him to do. He didn’t have to wait long before his salvation came. His reign was long in peace, happiness and prosperity.

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And, so, in Iregba till tomorrow is the song:

We made smooth and soft pounded yam,

We gave the birds of Iregba,

The birds said no, they won’t eat.

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We rolled out pots of succulent amala for the birds of Iregba,

The birds said it was not their food,

They refused to eat…

When we gave the right meals to the big birds,

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They ate and chirped with joy…

I did not make this story up. If you are a Yoruba and you are like me with a knowledgeable ancestor, consult him. Even if the forebears are like mine, long dead, their undying spirit should whisper to you the truth in the tale. But if you have no father and no mother, and you have no idea where their bones rest, put a call through to Professor Wande Abimbola. He has the knowledge. Or you can go to Chief Yemi Elebuibon in Osogbo. The tale is his to retell. He has a fuller version recorded in one of his books.

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Except he retraces his steps and changes the deity he serves, by the time Alhaji Bola Ahmed Tinubu ends his tenure, he will be remembered for creating greater misery and more poor people than have ever lived in Nigeria. I don’t think that will be an enviable legacy. But he chose it. Every king writes the history of his era.

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When a government neglects the road, opts for the bush and pumps efforts into wrong ideas, what it does is the same as starving the birds of life. Its efforts will, till eternity, roll up and down the hill like the boulder of condemned Sisyphus, the devious tyrant of Ephyra who violated “the sacred hospitality tradition” by killing visitors “to show off his power.”

Let us look at it. You moved the price of petrol from less than N200 to almost N1000 and upended every plan in every home. You pushed the naira tumbling down Mount Everest and clapped for yourself as a man of courage. Your Sango’s stone celts struck the market and shocked food prices beyond the reach of the hungry. People who need food, you continue to feed them hope in poisoned cans of tax, more tax and more levies.

Until now, I never knew that the introduction of taxes and levies could be celebrated as achievements by a government. Our government has that epaulette proudly emblazoned on its right and left shoulders. And we are so pinned down in helplessness.

The history of tax is one of intrigue. In ancient times, it was levy to fight wars. In medieval times, it was what Terence Dwyer (2014) calls “a fee derived entirely from surpluses” – the same thing Adam Smith prescribed as the “ability to pay”. In modern times, tax has become “a burden on production.” Why should people pay tax to an absent government? Tax theorists say tax is payment for government services. In ‘The Birth and Death of Taxes’ (1977) economic historians, Edward Ames and Richard Rapp, trace the history of tax as a feature of government’s economic life. They tell us that there is “a public good called protection, the suppliers of which are called governments.” They say a government “has a monopoly over the supply of protection to its subjects and taxes are the price paid to the monopolist.” They take it further, identifying two kinds of protection: one is defence, the other justice. They say when a threat is from foreigners, there is a demand for defence. When the threat is internal, one group of the same population unleashing threats against another, the good on demand is justice. Both goods should normally be exclusively government products. But, you and I know this may not always be so. A government that provides neither defence nor justice but still demands and collects tax is simply extortionate. In that case, what should the subjects do?

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A newspaper on Sunday said the president had halted the proposed collection of cyber security levies from the poor and the rich. If it is true, I salute and thank the president. But, should that demand ever have been contemplated at all? What law backed the collection order in the first place? Who should collect and manage taxes under a just, normal law, the Federal Inland Revenue Service or an office created strictly to advise on security?

While we sheepishly surrender and pour libation to Abuja’s god of extortion, we are being offered as cheap ingredients for money ritual. CBN’s demand for cybersecurity tax from everyone, including sellers of pepper and locust beans, was said to be rooted in the Cybersecurity Act 2015 and its 2024 amendment. But that is not correct. The law mentions neither you nor me, nor the sweaty yam seller next street.

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Let us check what the law contains. Section 44 (1) of the Cybersecurity Act 2015 says: “There is established a Fund, which shall be known as the National Cyber Security Fund (in this Act referred to as “The Fund”).” Subsection (2) adds that “There shall be paid and credited into the Fund established under subsection (1) of this section and domiciled in the Central Bank of Nigeria: (a) A levy of 0.005 of all electronic transactions by the businesses specified in the Second Schedule to this Act.” And what is in that Second Schedule? The Second Schedule is plain; it habours neither the jìbìtì nor the rìkísí which we read in the CBN circular. The Schedule says: “Businesses which section 44 (2)(a) refers to are: (a) GSM Service providers and all telecommunication companies; (b) Internet Service Providers; (c) Banks and other Financial Institutions; (d) Insurance Companies; (e) Nigerian Stock Exchange.” The 2024 Act amended the 2015 Act without touching the Second Schedule. Indeed, the Amendment Act reinforces that schedule by prescribing punishments for non-payment of the levy by the businesses so listed (see Subsection 8 of the Amendment Act). So, where did Tinubu’s Central Bank of Nigeria get its long turenchi demanding that you and I start paying cyber security levies to an office that already has its share of the budget?

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Apparently some people needed more money for the next night party, they did the maths and felt what the listed companies would pay them wouldn’t be enough for their frolics. They then converted all of us to ‘businesses’ without bothering to tinker with the law as they did in February. They simply asked the CBN to help them rewrite the law with a wordy circular. They did so knowing that we are a conquered people who won’t bother to check what the law truly says.

Even the businesses listed in that cyber security law will argue that they are being unfairly taxed. You would know and agree with them if you apply the theory of tax as payment for public goods. What does the government sell to them that warrant incessant taxation? How many of those businesses get ‘defence’ or ‘justice’ from the government as we know it?

“Nigerians pay one of the highest implicit tax rates in the world — way higher than developed countries,” African Development Bank’s president, Dr. Akinwumi Adesina, cried out in January 2021 at a Federal Inland Revenue Service Tax Dialogue. “Think of it”, he said “they provide electricity for themselves via generators; they repair roads to their neighborhoods, if they can afford to; there are no social security systems; they provide security for their own safety; and they provide boreholes for drinking water with their own monies.” Yet, more taxes and levies are rolled out daily against us like Israeli armoured tanks in Gaza.

We should be afraid. There was a time in France when the people were compelled to purchase salt by the government which also forced them to pay extortionate tax on it. Kings and principalities historically taxed the most important ‘goods’ of life. Salt has always been that important – even the word ‘salary’ is related to salt; you may check the history of its Latin root ‘salarium’. And, so it was heavily taxed. The French called the salt tax la gabelle. Historians Theodore Sands and Chester Higby in 1949 published an article on ‘France and the Salt Tax’. In it, they recall that the history of the gabelle under the Ancien Regime is “largely a story of increasing taxation and flourishing abuses.” They say there was even a king of France who monopolized the sale of salt and made the people pay salt tax without selling salt to them. They add that it was a period when the government was “satisfied to receive the money supplied by the system and forgot the people who paid it.” The repercussion was an insurrection that pillaged the rich and, later, ignited the French Revolution.

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Today’s Nigerians are like the birds of ancient Iregba. They are hungry and angry. In his ‘Salt, Politics and the French Revolution’, Toby Jaffe warns that “everyday commodities, including food, have the power to uproot, shatter and recreate societies…The revolutionary events around the salt tax of 18th-century France teach us that something as deceptively simple as salt can be a spark plug for civil unrest and revolution.” Now that Nigeria taxes everything including hunger, may God give us the fortitude to bear what may be coming.

The author, Dr. Lasisi Olagunju is the Saturday Editor of Nigerian Tribune, and a columnist in the same newspaper. This article was first published by the paper (Nigerian Tribune). It is published here with his permission.

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Rivers Crisis: Pro-Fubara Assembly To Screen Commissioner-nominee On Monday

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The Rivers State House of Assembly members loyal to Governor Siminalayi Fubara and led by factional Speaker, Victor Oko-Jumbo, have invited a Commissioner-nominee, Danagogo Iboroma, for screening and confirmation as a member of the state executive.

Iboroma may be pencilled in to replace Zaccaeus Adangor, who recently resigned as the State Attorney General and Commissioner for Justice.

Adangor’s resignation came after he rejected his deployment to the State Ministry of Special Duties (Governor’s Office) by Governor Siminalayi Fubara.

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The nominees’ invitation was contained in a letter signed by the factional Clerk, Dr. G.M. Gillis-West, who asked Iboroma to appear before the House on Monday by 10 am and sent to newsmen.

The factional clerk directed Iboroma, to appear at the Hallowed Chamber, Rivers State House of Assembly, Auditorium, Admin Block, Rivers State Government House, Port Harcourt.

The letter read, “The Rivers State House of Assembly hereby invites the following Commissioner-nominee for screening and confirmation as a member of the Rivers State Executive Council. Danagogo I Iboroma, SAN.

“Date: Monday, 13th May 2024. Time 10 am. Venue: Hallowed Chamber, Rivers State House of Assembly Auditorium, Admin Block, Government House, Port Harcourt.

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“The nominee is to come along with 10 sets of his Curriculum Vitae, photocopies of his credentials and the original.”

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