Terrorism economics: army gets a cut
+ Sanctions for expose on terrorists, country finance woes and general chaos.
Hi!
We’re taking a week off, so we won’t publish a newsletter next weekend. But we will still be publishing daily news updates on Instagram.
In case you haven’t heard, $1 is now equivalent to ₦710. The devaluation has been alarmingly rapid from ₦630 to $1 earlier in the month to ₦645 and ₦658 before ultimately landing on ₦710.
Needless to say, Nigerians are furious; some are even recounting the value of the naira since 2009 to show their frustration.
Meanwhile, the senate invited Godwin Emefiele to explain the reasons behind the rapid devaluation.
In this edition:
Nigeria is close to bankruptcy
Military kills more people
ECOWAS says terrorists are plotting to attack Abuja
Forced closure of schools in Abuja amid insecurity
BBC and Daily Trust to be sanctioned for ‘glorifying’ terrorists
Nigerian soldiers caught sharing 100 million ransom
More bad news in Finance
World bank forecasts more misfortune for Nigeria
The World Bank has predicted that due to the weight of subsidy payments and the rapid devaluing of the naira, Nigeria will not be able to benefit from the global rise in the cost of crude oil.
The World Bank shared this in a summary of its Nigeria Development Update Report.
It read:
“In 2022, as in 2021, Nigeria is not expected to benefit fiscally from higher oil prices fully. In 2021, while oil prices rose by two-thirds against the backdrop of global economic recovery from COVID-19, net oil revenues in Nigeria increased by only 4%, as production (including condensates) decreased from 1.83 million BPD in 2020 to 1.68 million BPD in 2021.”
According to the report, the disconnect between global oil price increases and the country’s earnings exists because “the Nigerian National Petroleum Corporation (NNPC) deducted a significant portion of the Federation’s oil revenues to pay for the petrol subsidy.”
So we continue to ask what true purpose crude oil has provided for the people of Nigeria🙂
In the same report, the World Bank also became relatable as, just like the rest of us, it also blames CBN’s (mis)management of the foreign exchange as the reason for the current FX crisis.
“The way the exchange rate was managed limited access to FX and thus adversely affected investor confidence and investment appetite,” - Nairametrics
FG withdraws $1 billion from excess crude oil account for security
Minister of Finance, Budget and National Planning Zainab Ahmed said the Federal Government withdrew $1 billion from the Excess Crude Account (ECA) to fund security amid depleting oil revenue.
Ms Ahmed shared this while briefing State House Correspondents at the end of the cabinet meeting on Wednesday.
She reported this amid concerns raised by the reduction in the balance of the Excess Crude Account (ECA) from $35.7 million it was as of June 2022 to $376,655.09 as at July 25, 2022. For context: this is less than the million dollars Davido was ready to drop as bride price.
This means that since the peak recorded in 2012 at $11.5 billion during the Goodluck Ebele Jonathan administration, Nigeria’s ECA has dipped by almost 100%
The ECA is a savings account retained by the Federal Government. It is funded by the difference between the market price of crude oil and the budgeted price of crude oil.
For example, the FG prepared its 2021 annual budget with a predicted oil price of $40 per barrel. However, the price of crude averaged at $79.31 per barrel. So that was already a mess.
Here, Nairametrics dives into everything you need to know about ECA’s past and present.
Insecurity
How NAF bombed children terrorised by Boko Haram
According to a Premium Times investigation, a military fighter jet belonging to the Nigerian Air Force dropped explosive artillery shells and killed six children. Parents and residents were only able to collect their torn remains.
Although very difficult because of the states of their bodies, the children were identified as Maryam Lawal, Hafeezah Basiru, Shamsiyah Lawal, Shafaatu Jamilu, Asmau Isa, and Hakumi Danlami. They were buried in three graves dug by their parents and residents in three batches.
Musa Dobi, one of the relatives of the bombed kids, told Premium Times as he spoke in Hausa,
“They killed my niece and five other girls during a raid on our village and denied it. Now we don’t know whom to fear between the militants and the military.”
Mr Dobi wore a smiling face as tears rolled down his cheek. He said his mixed gestures showed mixed emotions when asked why he appeared crying and smiling simultaneously.
ECOWAS warns about terrorists plotting to attack Abuja
ECOWAS has issued a security alert titled “Urgent Security advisory” to its staff, urging them to be cautious and avoid engagements requiring them to be outdoors after work hours.
The message read:
“Intelligence reports warn of plans by undesirable elements to infiltrate various parts of the country, particularly state capitals, including the Federal Capital Territory, with the view to perpetrate crimes such as abductions and kidnappings for ransom, or as means of getting recruits for terrorist activities,” - People’s Gazette
The alert followed numerous security breaches in the capital including one in Bwari where bandits killed about a dozen soldiers.
Abuja response to terrorism threats
The FG has ordered the immediate closure of private schools in Abuja over the increased security threats by bandits in Abuja and its environs.
According to the people’s Gazette, a statement issued by the National Association of Proprietors of Private Schools in Abuja, cited the directive of the FCT Education Secretariat for schools to officially close on July 27. All academic activities, including external examinations, were also summarily suspended.
The statement read,
“Dear school educators, instruction reaching me now from the Ag. Director DQA is that the FCT Education secretariat has directed that schools are to make sure all examinations going on should be ended by Wednesday, July 27, 2022, and all students including those in boarding should be allowed to go home for the holiday,”
“Those writing external examinations and schools that have planned their end of the year speech and prize giving day beyond Wednesday, 27th could go ahead as planned but must put adequate security in place to safeguard both students and staff of their schools, you are addressed strictly to the above instructions.”
The directive came two days after a similar order for the immediate closure of Unity Colleges and the Federal Government College Kwali because of banditry.
As fear in Abuja spikes, there was reportedly a gun fight near Abuja on Thursday night between Nigerian soldiers and armed bandits, according to a security officer and witnesses’ accounts.
Witnesses say the fight reportedly took place between Zuba and Madalla.
The bandits were reportedly making their way into the nation’s capital when Nigerian soldiers intercepted them at security barricades close to Zuma Rock.
Abdullahi Saidu, a resident of Zuba, told The Gazette the bandits had reportedly attacked villages while foraging along the highway.
The Abuja police have since released security phone numbers to call to alert authorities on any suspicious happenings in their area.
Gunmen attack Owo again.
A terrorist attack in Owo, Ondo leaves an unspecified number of people with varying degrees of injuries.
This was confirmed by Ondo State Police Command. they say their operatives were on the ground to calm the situation. the shooting is coming barely two months after the attack on St Francis Catholic Church in the same town where there were no less than 41 fatalities.
While the Ondo police is yet to confirm it, there is speculation that there might be fatalities.
Read more here.
Terrorists attack Zamfara again.
Four people have reportedly been killed with over 30 others abducted after terrorist attacks on Monday in Morai community of Talata Mafara LGA in Zamfara State.
Residents said the bandits attacked the community around 02:30 a.m and operated till 06:15 a.m.
One of the residents, Mansur Zainu, told Premium Times it was the first time gunmen attacked the town.
“They have attacked villages around us but they came yesterday for the first time and it was terrible. Our vigilante members tried to repel them, but you know they have more sophisticated weapons than our people”
According to Zainu, the gunmen killed three people: Sarkin Fawa (the chief butcher of the town), Yahaya Mohammed (a businessman), and a boy called Sani Na’Ayi.
Nigerian soldiers busted for sharing 100 million ransom
Nigerian soldiers reportedly took cuts in the ransom paid by one of the abducted passengers in the Kaduna-Abuja train attack.
One of the victims was Deji Oyewunmi, a manager at Iris Smart Technologies. He was released on Monday by armed groups after paying N100 million in ransom. One of the other victims said the FG put in no effort that yielded his release.
Mr Oyewunmi’s firm raised N60 million, while the remaining N40 million came from a coalition of friends and family. At least two people directly involved in the fund-raising and release activities told The Gazette anonymously how Nigerian soldiers shared in the ransom.
Read quotations from the sources here.
Defence HQ says they have killed bandits that attacked the presidential guard brigade.
While they need time to plan and strategise where civilian lives are at risk, the Defence Headquarters says the military troops have eliminated 30 of the terrorists who attacked the Guards Brigade in Bwari in Abuja on Sunday.
This was made known by Defence Spokesman, Major-General Bernard Onyeuko, at the bi-weekly news conference on military operations on Thursday in Abuja.
Onyeuko said the operation was conducted by troops of 7 Guards Battalion and 167 Special Force Battalion in conjunction with the air component of “Operation Whirl Punch” between Sunday and Tuesday. - People’s Gazette
According to him, the troops successfully cleared Kawu and Ido villages, neutralised the terrorists and destroyed their hideout. They also claim they recovered six motorcycles, two AK47 rifles, one fully loaded LMG magazine and more.
BBC and Daily Trust to be sanctioned for ‘glorifying’ terrorists
FG says that the BBC and Daily Trust ‘will not get away with’ glorifying terrorism.
Lai Mohammed made this announcement in Abuja after the BBC’s released their documentary, ‘The Bandit Warlords of Zamfara’, which presents a point of view into the minds of terrorists and showcases the rise of terrorism and how the government has empowered bandits and terrorists. (Free to watch on YouTube)
In March, Daily Trust TV published a special report and documentary exposing major issues around banditry in Nigeria.
Lai Mohammed referring to BBC’s doc said, “When otherwise reputable platforms like BBC give their platform to terrorists, showing their faces as if they’re Nollywood stars… I want to assure them that they won’t get away with it, the appropriate sanctions will be meted out.”
Economy
New cost of bread
Bread makers announced that the price of bread would increase steadily as the economy continues to tank and inflation peaks.
Kogi Master Bakers declared on Sunday that they would resume production after weeks of a strike to protest the production cost increase. Their resumption on July 25th was accompanied by a 20% increase in the cost of their bread.
The association initially joined the nationwide strike against the rise of prices of materials used in bread production, which started because three firms are monopolising the prices of sugar, yeast and flour to the detriment of bakers in Nigeria,” - Premium Times.
Bakers in Abuja bakers did not participate in the strike but warned that they would suspend production if conversations with the government failed.
In Cross River, bakers said they were increasing prices and reducing production quantities amid the high cost of ingredients and production.
Many flour mills in the country blame the current situation on the Russia/Ukraine crisis, exchange rate and the issue of sourcing foreign currency.
Nigerians will not afford jollof rice soon.
Just when you thought things couldn’t get worse, they’ve come for jollof rice. Nigerians are running out of ways to cope with the incessant increase in the cost of jollof rice ingredients, according to a report by strategic intelligence analysis firm SB Morgen (SBM).
SBM confirmed this in their 2022 Jollof Index, stating that Nigerians were in danger of starving as the average preparation cost rose from N8,595 to N9,311.
As the gap between the rich and poor widens, Nigerians use different coping strategies depending on their household’s previous economic status.
FG activities
Buhari lectures Liberians on security and good governance
Buhari has called on West African leaders to do all within their powers to ensure the conduct of free and fair elections in their respective countries.
He made the call on Tuesday in a goodwill message to Liberia on their 175th Independence Anniversary.
The president affirmed that democracy and good governance must take root in Africa to sustain security and development and that leaders must redouble their efforts to guarantee the irreversibility of democracy.
Read more here.
Meanwhile, at home
Senators from opposition parties walked out of plenary sessions on Wednesday after the Senate president, Ahmad Lawan, refused to discuss a motion on impeaching President Buhari if he doesn’t solve the issue of insecurity.
One of the opposition party Senators, Philip Aduda, had brought it up to be discussed in public after a closed-door session with the senators. However, the Senate president said that Mr Aduda didn’t adhere to the correct procedure for raising a point of order and prevented the discussion.
Mr Philip said that in the close door session, the Senators had agreed to issue a six weeks ultimatum for tackling insecurity to President Buhari or else they will begin impeachment proceedings.
Another 5% tax imposed on calls and data
While Nigerians are faced with a national and global economic crisis, the FG has finalised plans to levy a 5% Excise Duty on all telecommunications services, including calls, SMS, and data services, adding more hardships to their problems.
According to Finance Minister Zainab Ahmed,
“The issue of revenue is not something that need to be shy away from, our revenue can no longer take care of our needs as a country. Also Nigeria is no longer making enough money in oil revenue hence the attention is shifting to non-oil revenue.”
The minister defended the tax by claiming that other African nations, including Malawi, Tanzania and Uganda, have successfully tapped into this method of generating revenue.
She did, however, assure Nigerians that the government is committed to implementing the regulation in a seamless manner that will not negatively impact Nigerians. - People’s Gazette
Education
Foreign education gulps $378m in 5 months
According to The Punch, Nigerians spent $378.77 million on foreign education between January and May 2022.
The figure was obtained from the CBN and calculated based on the data provided on the amount spent on educational service under the sectoral utilisation for transactions valid for foreign exchange.
The reported monthly expenditure is as follows:
January 2022 - $60.2 million
February 2022 - $69.9 million
March 2022 - $87.26 million
April 2022 - $78.62 million
May 2022 - $82.70 million
ASUU seeks bill to ban foreign education for children of public officials
ASUU have called for a bill to regulate how children of public officers enroll in schools outside the shores of Nigeria.
According to People’s Gazette, Kingdom Tombra, Chairman of the University of Niger Delta University, made this known at the solidarity protest organised by the Nigeria Labour Congress (NLC) on Tuesday in Yenagoa.
He said,
“If this is done, it will build a better society by developing formidable educational institutions and improve funding of the university system in Nigeria.
“This struggle is not against the government, but about the working class and against the ruling class, and we are very committed to it
“If the rich and poor go to the same university or institution, I don’t think the strike will occur again.”
“If they school here and their children are here, they will show total support for the university system and the tertiary institutions in Nigeria.”
Other news
71% of newly registered voters are youths - People’s Gazette
Hundreds of PVCs found in an incomplete building in Bayelsa - Twitter source
Edo confirms 8 cases of monkeypox - Premium Times
Ogun pensioners beg state government to pay pending N68 billion gratuity - People’s Gazette
UAE imposes visa ban on Nigerians after cult clash - People’s Gazette
The Minister of Labour and Employment, Chris Ngige, says Buhari spends millions on poor Nigerians despite declining revenue - People’s Gazette
Terrorists attack army check-in point at Zuma rock, Abuja - Twitter source