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Nigeria’s president says his administration will stick to economic reforms

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President Bola Tinubu has decried the futility of servicing Nigeria’s external debt profile with 90% of the country’s revenue base, saying it is a simple path to destruction and, hence, not sustainable.

He made the comments as he sought to justify his ongoing economic reforms, declaring that Nigeria will not sustain a failed economic theory that leads to the wastage of 90% of its scarce revenue in the servicing of external debts in the midst of the many development challenges facing the country.

The President made the statement on Sunday in Abuja while declaring open the Annual Conference of the Nigerian Bar Association at the Velodrome, Chief MKO Abiola Stadium, Abuja.

While energising the gathering of 16,190 lawyers in attendance with an extemporaneous speech, President Tinubu stated that the prosperity Nigerians require will only occur once poverty is banished from society with the focused cooperation of Nigeria’s private sector leaders, many of whom were present at the opening ceremony.

“Can we continue to service external debts with 90% of our revenue? It is a path to destruction. It is not sustainable. We must make the very difficult changes that are necessary for our country to get up from slumber and be respected among the great nations of the world,” the President stated.

Speaking on the theme of the conference, “Getting it Right: Charting the Course for Nigeria’s Nation-Building,” the President stated that hard decisions must be made to set the country on a growth trajectory, despite the initial pains that meaningful reforms usually bring.

“We cannot have the country we desire without the reforms we have initiated. It is painful at the beginning, in the short and medium term, but we must do what we have to do to take this nation to its great destiny. It is not about you, and it is not about me. It is about our generations yet unborn, for whom we must bequeath a great and prosperous country,” he affirmed.

Against the backdrop of the renowned judicial reforms he undertook as Lagos State Governor, President Tinubu renewed his commitment to deal conclusively with the pressing issue of remuneration for judicial officers and legal practitioners, noting that true justice reform must begin with world-class salaries and benefits for legal professionals in Nigeria.

“You are learned. I want to learn. Why are we so blessed, yet we are still lacking? We must have a change of attitude and a change of mindset. We accuse our nation and its previous leaders. We complain a lot about the past. Is that the solution? No. Let us look forward and be determined! God has given us what we need. We must work hard with determination to make our country great, and it begins with you, who are seated here with me,” the President said.

Referring to the keynote address delivered by the Chairman of UBA Plc and Heirs Holdings, Mr Tony Elumelu, whom he praised for setting an agenda for economic growth and development, President Tinubu bemoaned the inability of the country to eradicate poverty and tackle poor electricity supply, despite Nigeria’s abundance of gas.

He made a commitment that his administration would ensure that Nigeria generates and distributes the electricity the economy requires to thrive.

“Yes, it is a shame not to have adequate electricity for the mass majority of homes in Nigeria and to power our industries. How can we address poverty without electricity? We can take many people out of poverty with an uninterrupted electricity supply. Poverty is not acceptable, and we must banish it,” President Tinubu concluded.

In his welcome address, NBA President Yakubu Maikyau, SAN, expressed NBA’s confidence in the ability of President Bola Tinubu to deliver good governance to Nigeria because of his pedigree and past track record of excellent performance in Lagos State, where he was the governor between 1999 and 2007.

“President Tinubu got it right in Lagos, and it is our considered expectation that as President of Nigeria, you will not only replicate your achievements in Lagos but surpass them for our country,” he said.

The conference was attended by the Attorney General of the Federation, Prince Lateef Fagbemi; Chief of Staff to the President, Femi Gbajabiamila; Minister of Federal Capital Territory, Nyesom Wike; Minister of Sports, Senator John Enoh; former Secretary to the Government of the Federation, Boss Mustapha; past NBA presidents; and many senior government officials.

Tinubu chairs inaugural FEC meeting

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President Bola Tinubu is chairing the inaugural meeting of the Federal Executive Council (FEC) at the Council Chambers of the Presidential Villa, Abuja.

The meeting, which commenced some minutes after noon on Monday, is attended by Vice President Kashim Shettima, Secretary to the Government of the Federation, Sen. George Akume, and the Head of the Civil Service of the Federation, Dr Folasade Yemi-Esan.

Others attending the meeting include the Chief of Staff to the President, Femi Gbajabiamila, the new ministers, as well as other top government functionaries.

The council’s role, as written in the Ministers’ Statutory Powers and Duties Act, is to serve as an advisory body to the President, who serves as the FEC’s chairman.

The FEC has a constitutional role in advising the President to determine the direction of government, although the President is the ultimate executive decision-maker.

The FEC is the cabinet of the federal government and is part of the executive branch with the role to serve as an advisory body to the President, who serves as its chairman.

Federal court freezes accounts linked to Onyema Okonjo

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A Federal High Court sitting at Ikoyi, Lagos State, has granted an order freezing and attaching the bank accounts to which the Managing Director of PC Outlet Limited Company, Mr Onyema Okonjo and two other directors of the company: Messrs Kenneth Njoku and Ernest Awuionu are signatories and maintain in fifteen commercial banks in Nigeria.

The order was as a result of the adjudged indebtedness and accrued interest up till 28 February 2021to the tune of N168,431,375.61.

The court also directed Corporate Affairs Commission to place a lien on the shares of the defendants held in a limited liability company, Giant Beverages Limited pending the determination of the substantive suit.

The presiding Judge, Daniel Osiagor, also granted an order to Asset Management Corporation of Nigeria, AMCON to enter into and take possession of the property lying at Plot 18, Block 130, Lekki Peninsula Residential Scheme in Eti-Osa Local Government Area of Lagos State which was pledged as security by a third party deed of legal mortgage for the facility granted to P.C Outlet Limited Company.

Justice Osiagor made the orders after listening to the argument made by a Lagos lawyer, Barrister Laolu Owolabi from the law firm of Bonajo Badejo and S.E.Omoragbon for the defendants not opposing.

According to an affidavit in support of a debt recovery suit sworn to by a legal practitioner, Mr Francis Oloruntoba, filed and argued before the court by Barrister Owolabi on behalf of AMCON, Oloruntoba averred that, a private Limited liability company, P.C Outlet Limited, registered in Nigeria to carry on business of trading, marketing, sales and distribution of general goods was advanced various facilities by Eligible Financial Institution between 7th September, 2007 to 15th October, 2008.

The various facilities were secured by full and unconditional personal guarantee of the Managing Director/Chief Executive officer of the company, Mr. Onyema Okonjo, while his wife, Mrs Udokanma Mary Anne Okonjo executed a Third-party legal Mortgage as security for the facility obtained by P.C Outlet Limited.

Messrs Okonjo, Njoku and Awuionu, as Directors of P.C Outlet Limited were instrumental to how the facility was sourced, applied for and granted as well as the way and manner the facilities granted to the company.

However, the Directors of the company were alleged to have failed to fulfill all the conditions in the offer letters and defaulted severally.

Upon acquisition of the eligible assets, AMCON instituted a legal action against P.C Outlet Limited and the Court presided over by Justice Ibrahim Buba of the Federal High Court entered judgement in the sum of N132,103,039.70 against the company.

The court also awarded 10% post judgement interest from 28th May, 2018 which had accumulated to the total sum of N36,328,335.91 as at 28th February, 2021.

On 11 February, 2021, AMCON appointed the law firm of Bonajo Badejo & Company to enforce and recover the outstanding facilities and in furtherance of the mandate by AMCON, the law firm took steps to investigate the defendants and discovered that Mr. Onyema Okonjo, who is the Managing Director/Chief Executive Officer of the company and sole signatory to the account of P.C Outlet maintained with the eligible financial institutions had diverted the funds of P.C Outlet to establish another company called Giant Beverages Limited in which he owns the controlling shares.

Consequently, AMCON approached the court in order to recover the outstanding debts.

Justice Osiagor while acceding to the request of AMCON, adjourned till 27 July, 2021 for hearing of the substantive suit.

Federal legislators plan probe of SURE-P transportation schemes

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A committee set up by the House of Representatives Committee has said that it will investigate loan defaults by beneficiaries of the N16billion Urban Mass Transit Schemes loan facilitated through the Subsidy Reinvestment and Empowerment Programme (SURE-P).

The ad hoc committee is investigating Failure of Federal Mass Transit Schemes in Nigeria since 1999.

Chairman of the Committee, Afam Ogene, in a statement on Monday, said most of the beneficiaries of the government intervention did not repay the loans.

Former President Goodluck Jonathan introduced the SURE-P scheme following the partial removal of the subsidy scheme.

“A total of 1,179 vehicles were released to the beneficiaries under the scheme, with a repayment plan covering four years. However, according to TIB, many of the beneficiaries defaulted and didn’t repay the loans.

“For instance, records show that as of December 2015, only two of the beneficiaries, ABC Transport PLC and The Young Shall Grow Transport Limited, liquidated their loans. Most of the beneficiaries are yet to pay as stipulated in the contractual agreements signed between them and TIB,” he said.

Mr Ogene noted that despite the failure of the last intervention, the Muhammadu Buhari’s administration attempted to introduce different transportation interventions.

The legislator said the committee will investigate all the previous interventions in the transportation sector.

Lawmakers are not fighting Sanwo-Olu, says Obasa

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Speaker of the Lagos House of Assembly Mudashiru Obasa has insisted the lawmakers are not “fighting” Governor Babajide Sanwo-Olu.

He made the comments after the Lagos State House of Assembly rejected 17 of the 39 commissioner-nominees sent by Sanwo-Olu for screening.

Mr Obasa, who presided over the plenary session on Monday, said no matter the threat by some persons, the Assembly will not reveal what it discovered during the screening of the rejected commissioner-nominees

Mr Obasa said he was trying to protect his party, the All Progressives Congress (APC).

“So, I am trying to protect my party and I would continue to do that but we are not going to sacrifice service to our people in the name of technocrats, no.

“If anybody is interested to know why we have taken such decision, he should approach the House.

“The House, as a body, restrains itself from exposing what was discovered during the screening exercise and we would not be forced to spill it,” Obasa said.