Tag: Obaseki

  • VIDEO: ‘Printing money is lending money’, Emefiele confirms Obaseki’s N60bn claim

    VIDEO: ‘Printing money is lending money’, Emefiele confirms Obaseki’s N60bn claim

    Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has said the concept of printing money to support states is not new and that ‘people should stop adding colouration to it’.

    And in a twist to the tale, Emefiele announced that states government must begin to pay back the Budget Support Loans given to them by the Federal Government since they are accusing the federal government of printing money.

    He stated this while reacting to a statement by Edo State Governor , Godwin Obaseki, that the Federal Government printed money to the tune of N60 billion to augment the March revenue shared by the Federation Account Allocation Committee (FAAC).

    TheNewsGuru.com, TNG reports that the Minister of Finance, Zainab Ahmed, on Wednesday during Federal Executive Council (FEC) Meeting described Obaseki’s claims as “sad” and “untrue”.

    However, the governor in a swift reaction countered the minister saying time will judge who is speaking the truth between him and the federal government.

    But the apex bank governor explained that the bank’s interventions are meant to address the grim economic outlook because “Nigeria is unfortunately in a very bad situation,” He added: “If you understand the concept of printing of money, it is about lending money”.

    “That is our job. To print is about lending money. So, there is no need of putting all the controversy about printing of money as if we go into the factory, print the naira and start distributing on the streets.

    “It’s very inappropriate for people to give colouration to printing of money as if it’s some foreign words coming from the sky”.

    Giving further clarification, Emefiele said “it’s important for me to put it this way that in 2015/16, the kind of situation we found ourselves in, we did provide a budget support facility to all the states of this country”.

    “That loan is still unpaid up till now. We are going to insist on them paying back those monies since they’re accusing us of giving them loans”.

    In July 2015, President Muhammadu Buhari approved $2.1billion as intervention package to help bankrupt states pay salaries and offset contractors obligations. Government revenue had dropped at the time because of the fall in the price of oil.

    Defending government’s action, Emefiele said “most countries in the world today are confronted not only by the challenges coming from the COVID-19 pandemic causing economic crisis and the rest of them.

    “What I keep saying is that it will be irresponsible for the CBN or any other federal reserve to stand idle and refuse to support its government at this time and what we are doing here is being done in other climes.

    “At the last MPC meeting, I gave data on what is being done in other climes to shore up their economy and take them out of recession.

    “I’m not going to pretend about it. We are facing a problem about productivity output which is GDP. Luckily, we managed to exit from recession, now we are looking at how to get our head above the water”.

  • [JUST IN] N60bn support for March: Time will tell who is lying between me and FG – Obaseki

    [JUST IN] N60bn support for March: Time will tell who is lying between me and FG – Obaseki

    Governor Godwin Obaseki of Edo State has said he won’t join issues with the Federal Government over his claim that N60 billion was printed in March to support allocation to states.

    TheNewsGuru.com, TNG reports that Obaseki had lamented the fiscal state of the nation, stating Nigeria is in financial trouble.

    While speaking at the Edo state transition committee stakeholders engagement over the weekend, he claimed the Federal Government printed money to bridge FAAC allocation.

    “When we got FAAC for March, the federal government printed additional N50-N60 billion to top-up for us to share,” he had said.

    However, in a response on Wednesday the Federal Government faulted his claim, dismissing it as untrue.

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, said Obaseki’s claim was very sad because it was “untrue”.

    Reacting to the counter-reaction on Thursday, Obaseki, through his official twitter handle, said: “We believe it is our duty to offer useful advice for the benefit of our country

    “The Minister of Finance, Budget and National Planning, @ZShamsuna should rally Nigerians to stem the obvious fiscal slide facing our country.

    “Rather than play the Ostrich, we urge the government to take urgent steps to end the current monetary rascality so as to prevent the prevailing economic challenge from degenerating further.

    “We believe it is imperative to approach the Nigerian project with all sense of responsibility and commitment and not play to the gallery because ultimately time shall be the judge of us all.”

  • BREAKING: FG breaks silence on Obaseki’s claim of printing N60bn to support March allocation

    BREAKING: FG breaks silence on Obaseki’s claim of printing N60bn to support March allocation

    he Federal Government has denied it printed N60bn to augument March allocation to States as alleged by Edo Governor Godwin Obaseki.

    It described the allegation by Obaseki as untrue and sad.

    Minister of Finance, Budget and National Planning, Zainab Ahmed, told State House correspondents: “The issue that was raised by the Edo State Governor for me is very, very sad. Because it is not a fact.

    “What we distribute at FAAC is revenue that is generated and in fact distribution revenue is public information. We publish revenue generated by FIRS, the customs and the NNPC and we distribute at FAAC.

    “So, it is not true to say we printed money to distribute at FAAC, it is not true,” she said.

     

  • APC replies Gov. Obaseki on state of economy

    APC replies Gov. Obaseki on state of economy

    The All Progressives Congress (APC) has faulted claims by Gov. Godwin Obaseki of Edo, that Nigerian economy was in critical situation due to huge debt burden.

    Retired Col. David Imuse, chairman of the state APC caretaker committee, said this in a statement by Mr Ofure Osheobo, the assistant secretary of the committee on Monday in Benin.

    Imuse described Obaseki’s criticism of the Federal Government on handling of the economy as ‘a classic case of the pot calling the kettle black.’

    “The true position is that under Obaseki’s watch, the economy of Edo is in dire straits with the governor bereft of ideas on how to get it out.

    “The state is engulfed in a foreign debt of 300 million dollars and a domestic debt including loans from commercial banks, the capital market, and other doubtful sources, approaching N120billion as at March, for non-existent projects.

    “In the past seven months, Obaseki has plunged Edo into higher debts by taking more loans which has seen a 67 per cent increase in its debt profile.

    “Edo under him has overtaken Rivers as the state with the highest foreign and domestic debt in the South South and it is on a steady course to displace Lagos as Nigeria’s most indebted state,” he said.

    Imuse said that while Kogi had successfully reduced its domestic debt from N132.5 billion to N73 billion, Edo had spent more money servicing debts than financing education, healthcare and infrastructure even without a state cabinet.

    He described as spurious, alarmist, untrue and wicked, claim by Obaseki that Nigeria was on its way to becoming another Argentina in terms of low currency value.

    He advised the governor to use his membership of the National Economic Council, Nigerian Governors Forum and Nigerian Economic Summit to offer useful suggestion on how to move the economy forward.

    This, he said was better than singling himself out for pediatric applause, because the management of Nigerian economy was not just the responsibility of one person, but that of the government, of which he was a part.

    “Everybody today knows that since 2015 when APC came on the scene, Nigeria has been on the path of progress and things are definitely much better than how PDP left it,” he said.

  • We’re not aware of Obaseki’s claim of currency printing – CBN

    We’re not aware of Obaseki’s claim of currency printing – CBN

    The Central Bank of Nigeria and the Federal Ministry of Finance, Budget and National Planning have denied knowledge of the claim that Nigeria printed N50-N60 billion last month to cushion its financial trouble.

    The question was raised after Edo State Governor, Godwin Obaseki, claim that Nigeria printed N60bn to augment what the three tiers of government shared in March.

    “When we got FAAC for March, the federal government printed additional N50-N60 billion to top-up for us to share,” Obaseki had said.

    “This April, we will go to Abuja and share. By the end of this year, our total borrowings is going to be within N15-N16 trillion. Imagine a family that is just borrowing without any means to pay back and nobody is looking at that, everybody is looking at 2023, everybody is blaming Mr. President as if he is a magician.”

    However, the spokesperson of CBN, Osita Nwanisobi, told newsmen on Sunday that he was not aware of any money printed.

    “I am not aware of that (N60bn printed by the government,” Nwanisobi stated.

    Similarly, the Federal Ministry of Finance, Budget and National Planning said questions on the matter should be directed to Governor Obaseki.

    The media aide to the finance minister, Yunusa Abdullahi, said “Please direct your questions to the governor who made the claim or the CBN.”

  • Obaseki sparks nationwide controversy over claims FG printed N60bn to augment depleted March allocation

    Obaseki sparks nationwide controversy over claims FG printed N60bn to augment depleted March allocation

    Ever since Edo State Governor, Godwin Obaseki raised the alarm that Nigeria might collapse economically because of global shrinking oil revenue which happens to be the nation’s mainstay, Nigerians have continued to question the federal government fiscal policies.

    TheNewsGuru.com, TNG reports that Governor Obaseki revealed that the federal government printed about N60 billion to augment the federation allocation shared with states and local governments in March.

    Besides, Obaseki, during a meeting with the Transition Committee members at the Government House in Benin City, the Edo State capital during the week revealed that by December this year, the country’s total borrowing would be in excess of 15 to 16 trillion.

    “In another year or so, where will we find this money that we go to Abuja to share every month? Last month, we got FAAC for March. The federal government printed an additional 50 to 60 billion to top-up for us to share,” he said.

    The governor believed, very soon, there would be no crude oil revenue, accruing to the national treasury for spending, with the dwindling fortunes of oil.

    Emphasising that despite the prices of crude at the international market, the current fortunes of crude is only a mirage and the Nigerian economy could no longer rely on oil revenue. According to him, major oil producers like Shell and Chevron, which hitherto made huge financial commitment to oil production, are no longer investing as much, especially with Chevron was heavily investing in alternative fuel and Shell pulling out of Nigeria.

    He, therefore asked, where will the federal government find the oil revenue to share monthly as federal allocation among the three tiers of government?

    “We say remove subsidy, they say no. This April, next week again, we will go to Abuja and share. By the end of this year, the total borrowing is going to be in excess of 15 to 16 trillion.

    “My worry is that we will wake up one day like Argentina, the naira will be 1,000, 2,000 and will be moving because we don’t have money coming in. You are just borrowing, borrowing and borrowing without any means or idea of how to pay back.”

    Obaseki pointed that the change in the world economy which is now affecting Nigeria, would be the major factor that will affect the country’s economy going forward.

    Reacting to the governor’s revelation, Nigerians took to their social media accounts to question the federal government sincerity in fixing the nation and making the economy buoyant to survive during challenging times.

    See reactions below:

    https://twitter.com/JackObinyan/status/1381180997149073410?s=20

  • Obaseki explains how heavy Benin storm stops Osinbajo from attending NSF opening

    Obaseki explains how heavy Benin storm stops Osinbajo from attending NSF opening

    Vice-President Yemi Osinbajo missed the official opening of the 20th National Sports Festival in Benin due to the storm at the city’s airport, Edo’s Gov. Godwin Obaseki said on Tuesday.

    Obaseki, in his address at Tuesday’s opening ceremony of the festival tagged “Edo 2020”, said the vice-president tried to be at the venue of the event.

    “But his plane had to be diverted due to the bad weather,” he said.

    TheNewsGuru.com, TNG reports that an afternoon downpour delayed the commencement of the ceremony, which was later held amidst colourful cultural presentations by several artistes and troupes.

    Obaseki, however, commended Osinbajo for finding time out of his busy schedule, even though, he could not finally make it.

    TNG reports that Osinbajo was due to stand in for President Muhammadu Buhari at the event which marked the opening of the April 2 to April 14 competition.

    “We are grateful, for he has taken time out his busy schedule to be here with us this evening even though he could not finally make it.

    “He is a friend of Edo and we appreciate this gesture,” Obaseki said.

    However, in the absence of Vice-President Osinbajo, Sunday Dare, the Minister of Youth and Sports Development, stood in to deliver President Buhari’s message to the festival.

    He described the festival as an avenue to showcases Nigeria’s best talents in over 32 different sports events.

    “The NSF is the biggest sports fiesta in the country, where both professionals and home-based athletes converge to display their prowess.

    “Although the 20th National Sports Festival is supposed to have taken place one year ago, but due to the COVID-19 pandemic, it suffered several postponements.

    “However, the determination of President Muhammadu Buhari to ensure that youths were engaged productively through sports, is notable.

    “So also are the doggedness of the Edo Government to host the festival and the unwavering commitment of the Ministry of Youth and Sports Development.

    “Now, we are glad today that we finally are having the festival. It is indeed a befitting festival,” the president said.

    He commended the young athletes who have converged in Benin for the competition, saying the festival remained one of the veritable tools for uniting the country.

    “The NSF is also a tool to bring our young men and women to interact, to make friends, to compete and it also provides an avenue to discover talents in various sports who will represent the country in the global sports arena.

    “I therefore thank the government and people of Edo for keeping their promise of hosting the festival in spite of the numerous challenges brought about by the postponement which occurred almost a year ago.

    “The investment made in sports infrastructure and allied structures by the Edo government signposts the direction our sports development must take in Nigeria.

    “No doubt, an investment in both our both men and women and sports infrastructure is most desired.”

  • Obaseki charges Customs to stop intimidating people in Edo

    Obaseki charges Customs to stop intimidating people in Edo

    Edo’s Gov. Godwin Obaseki on Monday in Benin charged men of the Nigerian Customs Service to stop intimidating and extorting people in the state.

    He gave the charge when the Customs Area Controller in Edo and Delta, Ahmed Usman, paid him a courtesy visit.

    In Usman’s company was the Commandant of the Nigeria Security and Civil Defence Corps (NSCDC) in Edo, Mr George Edem.

    “We know your men (Customs) have been working hard; we see the checkpoints, but in some cases there have been excesses and intimidation.

    “We’d like you to appeal to your men not to intimidate or extort innocent people and traders while carrying out their duties.

    “Edo is a business hub where people must pass through and our role as government is to create an enabling environment so that people are neither scared nor afraid to come here to conduct their businesses.

    “Let your men know that while they are doing their work they should respect the rights of citizens and more importantly they should not intimidate the people,’’ he told Usman.

    “I thank the Customs for the role it played during the last #EndSARS crisis.

    “I know about the attack on your warehouse and what it took to make sure there was no loss of lives,’’ Obaseki added.

    Obaseki also appealed to the NSCDC to help to train the state’s agro rangers and forest guards as well as vigilantes to protect the state’s forests reserve from illegal loggers.

    “I know members of the NSCDC also did well in helping to respond to the #EndSARS incident. We see ourselves as part of the federation; we want to support the work of the Federal Government.

    “We wish we are not facing the kind of economic challenges that we are facing now so that we could have been able to do more for you here, unfortunately the situation is same everywhere.

    “The reason why you are here is because you are not getting enough support from your employers, but you have to do your work.

    “That is why you found it necessary to come here to see us, so, it’s a general challenge and it’s affecting all of us.

    “It is forcing everybody to look for alternative and more creative ways to carry on their responsibilities.

    Earlier, Edem appealed to the governor for operational vehicles to help the NSCDC to discharge its duties optimally.

    In his remarks, Usman commended the governor for doing tremendous work on the Gele Port in Edo.

  • BREAKING: Tribunal dismisses ADP’s petition against Obaseki

    BREAKING: Tribunal dismisses ADP’s petition against Obaseki

    The Edo State governorship election petitions tribunal on Monday dismissed the petition filed by Action Democratic Party (ADP) and its governorship candidate, Iboi Emmanuel against the election of Godwin Obaseki.

    Details shortly…

  • Edo 2020: Legacy Obaseki wants remembered for, By Ehichioya Ezomon

    Edo 2020: Legacy Obaseki wants remembered for, By Ehichioya Ezomon

    By Ehichioya Ezomon
    There’s a socio-political critic in Edo (Bendel) State called Air Iyare. He’s the type that lobes dynamites at the authorities, and together with his moral suasion, you ignore him at your own peril.
    That’s the lesson Military Governor Husaini Abdullahi learned in Bendel (March 1976 to July 1978) in Mr Iyare’s crusading, when he wanted to turn a secondary school in Benin City into a hotel.
    Writing in the once-flagship Bendel-owned Nigerian Observer, Iyare held that sustaining the grammar school far outweighed the advantages derivable from turning the complex into a hotel.
    Closing his article, Iyare stated that should Abdullahi seize the school for commercial purposes, he “will not be remembered as Abdullahi the Governor, but Abdullahi the hotelier.” And that did it! Mr Abdullahi, who retired as Vice-Admiral and died in 2019 at 80, let the grammar school be.
    The moral here isn’t Abdullahi’s succumbing to public opinion, but the legacy he would’ve left behind had he turned the secondary school buildings into a commercial venture.
    Coming to the now, what legacy does Godwin Obaseki want to be remembered for after his eight-year tenure in 2024 in Edo State? Is it as Obaseki the Governor or Obaseki the “demolisher”?
    Mr Obaseki should ponder this, as he embarks on a bulldozing spree of property of his real or imagined enemies, many, to wit, are stalwarts of opposition All Progressives Congress in Edo State.
    Obaseki’s first act was in February 2020, when, on the excuse of “building on government property,” he sent bulldozers to pull down a multi-million Naira hotel owned by Mr. Tony Kabaka Adun.
    Obaseki said the hotel was built on government land, and warned that, “anybody who contravenes the law, no matter how highly placed you are in Edo State, you will be dealt with.”
    “Businesses cannot thrive when there is anarchy and complete disrespect for the law. For us as a government, whatever we need to do to ensure that there is law and order, will be done,” he said.
    Having ignored an order of the court that’s about to give judgment on the hotel, Obaseki turned round to demand N18 million from Mr Adun, as the cost of downing his edifice. What an irony!
    Barely a year after, the demolition squad uprooted the property of former Deputy Governor of Edo State, Dr Pius Odubu; a House of Representatives member, Prof. Julius Ihonvbere; and the Chief Executive of PADMOZI Sports Marketing, Mr Mike Itemuagbor.
    Secretary to the State Government, Mr Osarodion Ogie, rationalizing the destruction of the property of APC’s top shots, said the Certificate of Occupancy (C-of-O) of the property was revoked, as “they were parting gifts” by former Governor Adams Oshiomhole to his allies on the eve of his departure from office in 2016.
    What’s the government’s explanation to the claim by Prof. Ihonvbere that his property wasn’t a gift from Oshiomhole, and that he had paid all necessary fees and ground rent for the demolished property under construction?
    If Obaseki was acting in the public interest to retrieve the “limited” government property at the GRA in Benin City, why didn’t he bulldoze other property, starting with his own property?
    That’s why critics, especially the Edo chapter of the APC, accuse Obaseki of vendetta, for “regularly and willfully demolish property belonging to perceived opponents, and dissenting or critical voices in the state, in the bid to foist a siege mentality on the citizenry.”
    As noted by the publicity secretary of the APC chapter, Chris Azebamwan, “the proper thing is for the government to wait for the outcome of the court process” instituted by Dr Odubu when he learnt that Obaseki had revoked the C-of-O of his property.
    Obaseki had used “disrespect for the law” as cover to demolish Mr Adun’s hotel. Why won’t the governor, who owes his re-election to the rule of law, as intervened by the courts, obey the law and wait for the courts to pronounce on the property at issue?
    Perhaps, as Mr Azebamwan alleged, the Obaseki administration “knew that it was pursuing an illegal agenda,” and had to demolish the property, to render nugatory any order by the courts.
    Obaseki has debunked any “political undertone” in the demolition of property on government’s lands, but official action seems targeted at allies of Comrade Oshiomhole, who “made” Obaseki governor in 2016, but worked against his re-election in 2020.
    Polity watchers deduce that Obaseki is going after his “enemies” ostensibly to demonstrate that he’s still “the Governor of Edo State,” as he had told Oshiomhole during the 2020 poll cycle.
    But does Obaseki need to prove his status that Edo voters, and the courts have made clear since September 2020? It seems the Oshiomhole political ghost hasn’t been properly rested!
    To salvage his re-election that’s almost truncated by the Oshiomhole-led APC, Obaseki defected to the Peoples Democratic Party. So, is it payback time for Obaseki against Oshiomhole and his loyalists in the APC?
    Poll over, Obaseki, receiving a Certificate of Return from the INEC, said the “war is over,” and called on his challenger, Pastor Osagie Ize-Iyamu, and Oshiomhole to join him to move Edo forward.
    Obaseki has denied any personal grudges against Oshiomhole, but only dislikes the APC’s former national chairman’s style of politics – the method Oshiomhole deployed to enthrone him as governor.
    It appears the governor’s random declaration of “no enmity with Oshiomhole” is always for the moment, as he hasn’t taken off his foot from the gas pedal since the build-up to the 2020 poll.
    Recall that Obaseki had established a judicial panel to probe the contract for the Specialist Hospital in Benin City, in which Oshiomhole sunk billions. The panel report indicted Oshiomhole.
    Obaseki has constituted another panel to probe the Benin City Storm-water project, began by Oshiomhole’s administration to remedy the seasonal flooding of the Edo State capital.
    Obaseki has vowed to bring Oshiomhole to book, for allegedly squandering the huge funds he (Obaseki) said he had sourced while serving as head of the Economic Strategy Team (EST) that backboned Oshiomhole’s government from 2008 to 2016.
    Obaseki’s words: “I was part of that administration, because I believe Edo must be developed. So, I sacrificed my time for eight years to help organise the state. I went to the World Bank to raise money for the state to enhance its development.
    “But with what I have seen in the books, I look like a fool; while I was arranging finances and other things, I didn’t know that the money I was raising was being frittered away.
    “I don’t like probing; I like to go forward, but it has become very difficult, because when I look at the cost of contracts I awarded in 2020 with the ones awarded 10 years earlier, people have questions to answer.
    “This type of behaviour must stop and you can’t do something wrong and be shouting that someone is wrong because you don’t want people to know what you did wrong.”
    No rational mind would begrudge Obaseki for what he says is “cleaning the house so that when you (PDP members) come in, there will be no issues and we will not be deceived any more.”
    But the governor should avoid utterances and actions that portray him as undermining the rule of law, prejudicing matters in the courts, and intimidating leaders of the opposition.
    Besides, his government’s actions should have a human face, which was absent when the bulldozers rolled into the premises of the affected, as relayed by Mrs. Precious Odubu, wife to the former deputy governor’s younger brother occupying the property.
    “The way they came in, not through the main gate, I was afraid and asked about their mission and they told me that they want to demolish the house and if there are children in the building, they should be brought out,” Mrs. Odubu recounted to newsmen.
    “Without even waiting for my response, they just brought in their bulldozers and started destroying the house without allowing us to remove our properties.”
    In trying to cleanse the Augean stables of alleged financial sleaze committed on Oshiomhole’s watch, Obaseki should weigh the import of an Esan proverb, which says: “If you pursue your enemy without restraints, you will pay for it.”
    Obaseki will earn applause of his followers if he continues with the demolition of property of opposition elements. He shouldn’t tread that route, but ensure the “war” is truly over with Oshiomhole!
    * Mr. Ezomon, Journalist and Media Consultant, writes from Lagos, Nigeria.