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President Tinubu orders N2tn poverty relief funds probe, Betta Edu faces EFCC today……

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12 months ago

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President Bola Tinubu has ordered the Economic and Financial Crimes Commission to launch a full-blown investigation into the finances of the Ministry of Humanitarian Affairs and Poverty Alleviation.

Tinubu handed down the directive in a statement on Monday by his Special Adviser on Media and Publicity, Ajuri Ngelale, who also announced the suspension of the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, over the N585m scandal in the ministry.

The statement was titled ‘President Tinubu suspends Minister of Humanitarian Affairs and Poverty Alleviation from office.’

Edu’s suspension was happening as her predecessor, Sadiya Umar-Farouq, was grilled for about 12 hours by the EFCC detectives over the ongoing probe into the N37.1bn allegedly laundered during her tenure in office, through a contractor, James Okwete.

The ex-minister was questioned from 11am to 11pm by investigators seeking information on how the huge sum was allegedly laundered by top officials who served under her.

Data from the Budget Office indicate that the ministry, erstwhile known as Humanitarian Affairs, Disaster Management and Social Development, had a N2.38tn budget from 2020 to 2024.

In compliance with the presidential directive, the EFCC has also summoned Edu to appear before its detectives on Tuesday (today).

Ngelale in the statement said the President directed the EFCC Chairman, Ola Olukoyede, to conduct a thorough investigation into all aspects of the financial transactions involving the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, as well as the agencies under it.

Furthermore, the President tasked a panel headed by the Coordinating Minister of the Economy and Minister of Finance, Wale Edun, to conduct a comprehensive diagnostic of the financial architecture and framework of the social investment programmes.

This was aimed at reforming the relevant institutions and programmes in a determined bid to eliminate all institutional frailties for the exclusive benefit of disadvantaged households and win back lost public confidence in the initiative.

Edu suspended

The statement read, “In line with his avowed commitment to upholding the highest standards of integrity, transparency, and accountability in the management of the commonwealth of Nigerians, President Bola Tinubu suspends the Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, from office with immediate effect.

“The suspended minister is hereby directed to hand over to the Permanent Secretary of the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, and she is further directed by the President to fully cooperate with the investigating authorities as they conduct their investigation.

“Furthermore, the President has tasked a panel headed by the Coordinating Minister of the Economy and Minister of Finance to, among other functions, conduct a comprehensive diagnostic on the financial architecture and framework of the social investment programmes with a view to conclusively reforming the relevant institutions and programmes in a determined bid to eliminate all institutional frailties for the exclusive benefit of disadvantaged households and win back lost public confidence in the initiative. These directives of the President take immediate effect.’’

The scandal involving Edu burst open after a leaked memo revealed that the suspended minister directed the Accountant-General of the Federation, Oluwatoyin Madein, to transfer N585m to a private account owned by one Oniyelu Bridget, who the ministry claimed currently serves as the Project Accountant, Grants for Vulnerable Groups.

The minister had claimed that the N585m payment was meant for vulnerable groups in Akwa Ibom, Cross River, Ogun, and Lagos states, describing the allegations against her as baseless.

The Media Assistant to the minister, Rasheed Olarewaju, said in a statement that it was legal within the civil service for such payments to be made into private accounts of staff members, especially project accountants.

Unimpressed by her defence, several groups and individuals including the Peoples Democratic Party, Socio-Economic Rights and Accountability Project, Femi Falana, SAN; the Yoruba Youth Assembly, and other civil society groups had demanded Edu’s suspension and an unfettered probe of the leaked memo.

In deference to public pressure, the President suspended Edu and directed her to hand over to the permanent secretary in the ministry.

Consequently, the anti-graft agency on Monday, directed the suspended minister to report at its Jabi, Abuja headquarters on Tuesday (today) for questioning.

Confirming the development in a telephone interview with our correspondent, a senior EFCC official said, “Betta Edu has been mandated to report to the commission tomorrow (today).”

The suspended minister did not respond to calls and a message seeking her reaction to her suspension by the President. Also, her media aide, Olarewaju did not respond to calls and a message sent to his phone.

In a curious development, moves by the suspended minister to see Tinubu hours after her suspension failed as she was denied entry by the security personnel at the Presidential Villa.

Minister barred

The incident which was captured by the TVC News showed the minister’s vehicle being denied access to the State House.

Her convoy was asked to turn back as the security operatives refused to let her into the Presidential Villa.

A source revealed that the Independent Corrupt Practices and Other Related Offences Commission had between July and August 2023, intercepted N32bn which was about to be stolen from the humanitarian affairs ministry.

The money was handed over to the Federal Government.

Sources said the immediate past minister in the ministry, Umar-Farouq, who had a marathon session with investigators over the N37bn money laundering allegation, was still being questioned at 7pm on Monday.

The former minister had tweeted about her presence at the EFCC headquarters, Jabi, Abuja, at about 10.20am.

“I have, at my behest, arrived at the headquarters of the Economic and Financial Crimes Commission to honour the invitation by the anti-graft agency to offer clarifications in respect of some issues that the commission is investigating,” Umar-Farouq tweeted.

Citing health challenges, she had earlier officially written to the EFCC to seek an extension of the deadline to meet with EFCC interrogators to give an account of the alleged monumental fraud that took place under her watch.

Meanwhile, checks by The PUNCH revealed that the total budgetary allocation to the Federal Ministry of Humanitarian Affairs and Poverty Alleviation from 2020 to 2024, is N2.38tn, according to data from the budget office.

Former President Buhari created the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development on August 21, 2019.

However, after President Tinubu took over in May 2023, the name was changed to the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.

Figures from the budget office showed that in 2020, 2021, 2022, 2023, and 2024, the total allocations to the ministry and agencies under it were N453.3bn, N456.1bn, N507.9bn, N426bn and N532.5bn respectively.

The total allocation to the humanitarian ministry and its agencies in the 2020 appropriation bill was N453.27bn.

From this sum, the ministry, National Emergency Management Agency, National Social Investment Office, North-East Development Commission, National Commission for Refugees, and National Agency for the Prohibition of Trafficking in Persons got total allocations of N4.03bn, N1.24bn, N400bn, N38.1bn, N6.56bn and N3.34bn respectively.

The National Social Investment Office got the highest allocation of N400bn in 2020.

Data in the 2021 Appropriation Act showed that the total appropriation to the ministry and its agencies was N465.1bn.

Figures from the Act indicated that the ministry, NEMA, NSIO, NEDC, NCR, NAPTIP, National Commission for Persons with Disability, and Office of the Senior Special Assistant to the President on Millennium Development Goals got total allocations of N3.9bn, N3.75bn, N400bn, N32.96bn, N14.1bn, N4.14bn, N1.8bn and N4.44bn, respectively.

The NSIO had the highest allocation of N400bn in 2021.

In 2022, the total allocation appropriated to the ministry was N507.9bn.

From this sum, the ministry itself, NEMA, NSIO, NEDC, NCR, NAPTIP, National Commission for Persons with Disability, Office of the Senior Special Assistant to the President on MDGs, and National Senior Citizens Centre got total allocations of N35.6bn, N3.3bn, N398.9bn, N41.78bn, N12.34bn, N3.34bn, N3.17bn, N8.78bn and N655.8m respectively. The NSIO’s N398.9bn allocation was the highest in 2022.

Ministry’s funds

In 2023, the ministry and agencies under it got a total appropriation of N426bn and this was increased to N532.5bn in the 2024 budget.

On December 13, 2023, The PUNCH reported that the suspended minister declared that the N532.5bn in the 2024 budget for her ministry was inadequate.

Edu stated this when she led officials of her ministry and parastatals to defend the 2024 budget before the Joint National Assembly Committee of Humanitarian Affairs and Poverty Alleviation, chaired by Senator Idiat Adebule.

She said the amount allocated to her ministry in the 2024 budget was not capable of fighting poverty across the country, stressing that her ministry was given an overhead ceiling of N532.5bn which represents a 28 per cent increase over the 2023 budget to cushion the effects of inflation.

Meanwhile, following the suspension of the minister, a civil society group, the United Global Resolve for Peace, has called for a comprehensive reformation of the Ministry of Humanitarian Affairs and Poverty Alleviation.

The group made this known in a statement by its President, Shalom Olaseni, on Monday, while commending the President for his decisiveness in suspending the embattled official.

The statement read, “The United Global Resolve for Peace applauds President Bola Tinubu for his decisive action in suspending Dr Betta Edu, the Minister of Humanitarian Affairs and Poverty Alleviation, in response to corruption scandals and controversies surrounding her tenure. The UGRFP acknowledges the President’s responsiveness to the cries from the civil society space and well-meaning Nigerians. This commendable move demonstrates a commitment to transparency, accountability, and the overall well-being of the nation.

“In line with our earlier call, we appreciate the President’s prompt establishment of a panel to reform the social programs of the Ministry. We further advocate for the extension of the panel’s mandate to comprehensively reform the entire humanitarian ministry. Such measures are essential to ensure the effectiveness and integrity of humanitarian efforts aimed at poverty alleviation and addressing societal needs.

Interior minister kicks

In a related development, the Minister of Interior, Olubunmi Tunji-Ojo has denied involvement in the N438.1m consultancy contract between New Planet Project Limited and the Ministry of Humanitarian Affairs and Poverty Alleviation.

There were reports on Monday that a company owned by the minister of interior was allegedly paid a total amount of N438.1m by Edu as consultancy services.

“The company, New Planet Project Limited was one of the numerous consultants awarded contracts from N3bn given out by the suspended minister for the National Social Register contract, it stated.

Reacting, Tunji-Ojo while appearing on Channels TV Politics Today, on Monday night said that he founded the company 10 years ago, but resigned from directorship in 2019 when he contested the House of Representatives poll

The minister who described the report as shocking, said he was not involved in the day-to-day running of New Planet Project Limited.

He said “I have to say this, I saw it and I was shocked because the company in question was a company, where I was the director. About five years ago, I had resigned my directorship. Yes, I founded the company 10 years ago. In 2019 when I got to the House of Representatives, when I won the election precisely, I resigned. I resigned 4th of February 2019 with a Certified True Copy of Corporate Affairs Commission as far back as 2019 to prove this.’’

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Christmas, Cash Scarcity and Attacks against CBN’s Proactive Stance – Toni Kan

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17 hours ago

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December 20, 2024

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Let us look at a few figures……..

Nigeria’s population is put at a little over 200 million people while the UK population is about 68 million. This means that the Nigerian population is about three (3) times that of the UK.

As at June 2023, the UK banking system had about 49,421 Automatic Teller Machines and almost 2.3 million Point of Sales Terminals.

By contrast, the Nigerian banking system had a little over 22,600 ATMS according to TechCabal and is projected to reach 29,000 by 2029 according to Statista. Conversely, Nigeria boasted 1,665,664 POS terminals as at December 2022. Meanwhile, figures attributed to Inlaks, which is described as Nigeria’s biggest ATM operator, suggest that Nigeria needs at least 60,000 ATM machines to serve its population of over 200 million.

Where is all this going? Well to borrow a phrase from the comedian, Jeff Foxworthy; hold my beer, sir!

Those who know me well know what my favourite Igbo proverb is. It goes something like this in translation – “the disease that gives you warning, does not kill you!” It is a proverb that underlines the imperative of proactivity, what the Igbo people might call igba mbo.

So, I was really pleased when I read that the Central Bank of Nigeria (CBN) was taking a proactive step to ensure that there is no cash scarcity this Christmas.

Nigerians love cash and that love can become obsessive and reach fever pitch at festive periods. Have you been to Abeokuta during Ojude Oba? Or to Kano during the Durbar? Or Onitsha during Ofala? Those are regional festivities. So, you can imagine what happens at Christmas!

All efforts at driving a cashless policy and economy seem to collapse when festivities come around the corner and this year, the CBN was quick to take proactive action weeks before the festivities reach fever pitch. But the apex bank’s interventions seem to be having unintended consequences even though as at the time of writing this, the apex bank had put out three (3) different circulars and one press release around the issue.

First, is a not-so-surprising pushback from the banks and then a seeming lack of understanding by the general public no thanks to rampant mis-information.

The issue of cash scarcity around the Christmas period worsened under the sway of Godwin Emefiele at the CBN. The fall-out from the disastrous naira redesign he superintended over at the apex bank continues to haunt our banking vaults but Olayemi Cardoso and team are focused on making sure we turn that dark corner.

Let us begin with the first circular dated November 29, 2024: “Cash Availability Over the Counter in Deposit Money Banks (DMBs) and Automated Teller Machines (ATMs).” The circular had two sections: DMBs were directed to ensure efficient cash disbursement to customers Over the Counter (OTC) with the CBN insisting that it will enforce the directive and ensure compliance.

Secondly, members of the general public were encouraged to report instances where they are unable to get cash Over the Counter or through ATMs. The CBN ended with a list of 37 email addresses and phone numbers across the 36 states and FCT for reporting issues.

On paper, it looked like Nigerians and the cash worries were all sorted this Christmas but it didn’t take time for the expected pushback to occur. News reports began to circulate of long queues at banks and of ATMs struggling to dispense more than N10,000. “NAN reports that long queues have emerged at ATM stands around the city as residents struggle to have access to cash…Meanwhile POS operators are currently taking advantage of the situation to demand exorbitant charges on transactions.”

While Nigerians were still trying to make sense of the reason behind the long queues, another report had an official of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASBIFI) pointing fingers. According to the report, “ASSBIFI President, Olusoji Oluwole, told the Punch that “Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds.”

As if in response to the charge, the apex bank responded “with their full chest” as we say on social media with a December 13, 2024 circular – Updated Penalty on Inappropriate Cash Disbursement Practices by Deposit Money Banks (DMBs) in which it condemned the “illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify naira bank notes thus impeding efficient and effective cash distribution to banks’ customers and general public.”

Giving bite to the circular the CBN said any bank found culpable of “facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes” would be fined N150m and then hit with the full weight of the relevant provisions of BOFIA 2020.

This time no pointing fingers were seen but the CBN was not done. Eager to completely squelch rumours around “the validity or lack thereof of the old ₦1000, ₦500, and ₦200 banknotes” the refusal of which was contributing to the long queues, the CBN issued a press release shutting it down: “The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old ₦1000, ₦500, and ₦200 banknotes currently in circulation….the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the ₦1000, ₦500, and ₦200 denominations of the Naira indefinitely.”

The third circular from the CBN which it said was in line with its “ongoing efforts to advance a cash-less economy” seems to have hit a raw nerve among Nigerians who, as we have already noted, love their cash even though it is now an offence to spray the naira.

News outlets also seemed to also get it wrong. The CBN circular of December 17, 2024 did not put a limit on how much cash you and I can withdraw from banks. The limits imposed in the circular titled – CIRCULAR ON CASH-OUT LIMITS FOR AGENT BANKING TRANSACTIONS – are “for agency banking operations” and as reported by TheCable is among interventions intended to address “identified challenges, combat fraud and establish uniform operational standards across the industry.”

Now, can I have my beer back as I attempt to outline how easily well-intentioned policies are rubbished by that euphemistically named malady known as the “Nigerian factor”.

The ASBIFI official was quick to point fingers even though simple logic can show that Over the Counter cash scarcity and at ATMs has little to do with the CBN or its cash distribution operations but with our Nigerian any-how-ness.

Let’s consider this. How is it that banks cannot fill up 22,600 ATMS, most of which are within or in close proximity to their branches but can afford to give cash to 1.6m PS operators? Doesn’t this seem to suggest that someone is out to make sure that the ATMs don’t have cash while the PoS operators continue to make a killing?

And why does it seem right that Nigerians should continue to pay between N250 and N400 per N10,000 withdrawals to PoS operators when ATM charges are far lower at N35 and only after you have made multiple withdrawals from other bank ATMs?

Oh, bankers have said ATMs are difficult to maintain on account of several factors and this takes us back to the figures we shared from the UK. Of the 49,421 ATMs in the UK, “78% were free to use” during the period under reference. So, why do we always talk about maintenance when it comes to Nigeria? Imagine if we paid N10 per ATM transaction, wouldn’t that be better than paying N250 to a PoS operator for every N10,000 withdrawn?

And for context, in 2014, data on various e-payment channels indicated that Automated Teller Machines (ATMs) remained the most patronised payment mode in Nigeria accounting for 89.7% of all electronic transactions with PoS transactions accounting for just 4.58 per cent. Today, the reverse is the case and the question to ask remains; what changed? The answer has something to do with financial inclusion but that is a topic for another day.

As you ponder that poser, ask yourself why is it always difficult to get mint bank notes over the counter in the banks meanwhile, step into any event center and you will see some hawker waving bright new notes in your face. Surely, they don’t get those notes from the CBN.

When the CBN referenced the Supreme Court ruling granted on November 29, 2023 to the effect that the old notes are still legal tender, their X Formerly Twitter page was filled with bile. But what many are failing to contend with is that the current leadership is only trying to make sure the mess they inherited doesn’t get worse.

As we prepare for Christmas and the New Year the advice is simple; go to your bank and ask for your money or withdraw from the ATMs and if you suspect any funny business, email or call the hotlines provided by the CBN.

Say no to any-how-ness this yuletide.

 

Toni Kan is a PR expret and financial analyst.

 

 

 

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Aviation Minister Leads Delta APC Leadership To National Chairman, Advocates Unity Ahead of 2027 Elections

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2 days ago

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December 19, 2024

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The Honourable Minister of Aviation and Aerospace Development, Olorogun Festus Keyamo SAN, today, led the leadership of the All Progressives Congress (APC) in Delta State, to the National Chairman of the APC, His Excellency Dr. Abdullahi Ganduje, at the APC National Headquarters in Abuja.

 

During the meeting, the Delta APC leaders briefed the National Chairman on the current state of the party in the state and the ongoing efforts to reconcile party members. They presented the report of the Reconciliation Committee, which has been approved by the Delta State APC State Working Committee (SWC) and earlier submitted to the National Chairman.

The delegation emphasized the importance of collaboration, stating that the era of a one-man leadership style in Delta APC is over. They reaffirmed their collective commitment to working as a united team to reposition the party and strengthen its prospects ahead of the 2027 general elections. This new direction was evident in the composition of the high-powered delegation that visited the National Chairman.

 

In his response, the National Chairman, Dr. Abdullahi Ganduje, commended the Delta APC leadership for their efforts to foster unity and ensure the party’s victory in future elections. He assured them of his commitment to work with Delta APC leaders, including those absent from the meeting, to build a united and formidable front. During the meeting, Dr. Ganduje also spoke with Delta State APC Chairman, Elder Omeni Sobotie, who was unavoidably absent due to health reasons, and wished him a swift recovery following his recent surgery.

 

The delegation to the meeting comprised prominent leaders of the Delta APC, including: Olorogun O’tega Emerhor, OON-Founding Leader of APC in Delta State,

Elder Godsday Orubebe- Former Minister,

Senator Ede Dafinone,

Senator Joel Thomas-Onowakpo,

Rev. Francis Waive- Member, House of Representatives and

Hon. Victor Ochei-former Speaker, Delta State House of Assembly.

The meeting was concluded with a renewed sense of purpose among the Delta APC leaders and a shared commitment to repositioning the party for electoral success in 2027.

 

 

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Just In: Alleged N110.4billion Money Laundering: Yahaya Bello Begs Court: Spare me Landed Property in Maitama for Bail.

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2 days ago

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December 19, 2024

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A former governor of Kogi State, Mr. Yahaya Bello has pleaded with Justice Maryann Anenih of the Federal High Court sitting in Abuja to spare him the possession of a landed property in the Maitama district of Abuja as one of the conditions for bail.

 

Details later…

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