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How govs spent $50bn excess crude funds – NESG
The Nigerian Economic Summit Group has explained how state governors spent the country’s $50bn Excess Crude Account in 2010, which would have served as a buffer for subsidies and other pressing financial concerns of the nation.
The Chief Executive Officer of NESG, Dr Tayo Aduloju, disclosed this during a courtesy visit to the headquarters of PUNCH Nigeria Limited on Wednesday.
He recalled that the global financial crisis of 2007 and 2008 had minimal effects on Nigerian firms because the country had a substantial fiscal buffer in the ECA, which greatly shielded it from external economic shocks.
However, in 2010, the state governors approached the Supreme Court to declare the ECA illegal, giving them the basis to share the funds domiciled in the account.
According to him, the Federal Government disbursed the $50bn fund to the 36 state governors between when late President Umaru Musa Yar’Adua died and when former President Goodluck Jonathan took charge.
He said that depleting the fiscal buffer the country had built over a decade shifted the subsidy operations from a savings model to a revenue-based approach, forcing the Federal Government to fund the fuel subsidy through crude oil sales instead of ECA funds.
“Between 1999 and 2010, we operated a savings-based subsidy operation. In other words, we were paying for the subsidy from savings. We were not borrowing to pay the subsidy.”
We were simply paying from the Excess Crude Account because we managed our first boom well. I think when former President Obasanjo left office, the Excess Crude Account had over $60bn.
“If you remember, Okonjo Iweala once told us we were broke. And her argument at that time was that a country cannot call spending all its money progress. But something happened, and Jonathan’s government was in a boom. So we moved from a transformative agenda to a Change agenda under President Buhari, and in the first six months of his government, he had concerns with the production of crude oil.
“Shale oil in the US crashed the price of crude oil to less than $22 a barrel, which is lower than the production cost. With this, every oil-producing country automatically entered deficit financing in oil production. Saudi Arabia defended its economy in 2015 with $45bn. But Nigeria didn’t have savings at that time because it had shared the savings among the 36 state governors. So we went into deficit financing in oil production. In other words, we were selling crude at a loss. And we maintained this deficit position for eight years (during Buhari’s regime),” he explained.
Aduloju argued that since 1999, successive administrations in the country have operated different fuel subsidy models, but the poor management of fiscal resources has compounded the financial crisis resulting from the mismanagement of the fuel subsidy.
“The subsidy removal that Tinubu inherited is not the same as the subsidy removal that Buhari inherited, and it’s also not the same as what Jonathan faced. They are different operations. But the consistent issue is that each mismanagement of our fiscal resources by previous governments compounded the problem for the next government,” he stated.
According to him, the biggest challenge under the current administration is not the removal of the fuel subsidy, but the lack of transparency. Until the Federal Government fully examines the financial strain on the economy, there will be no headway.
He said, “When President Tinubu took over, I insisted that what we needed was transparency before choices. Somebody should have first turned on the light and answered the simple question: what are we looking at? What is the size of the fiscal deficit? What were the commitments made in selling crude forward into the future? How much was committed? How much do we owe? How much of our reserves are encumbered?
“Without answering these questions, the policy choice—such as balancing the current account, of which subsidy removal is one option—becomes a facade. And therein lies the problem.”
He emphasized that the fuel subsidy itself isn’t the country’s core issue but rather the lack of transparency, which has created a massive trust gap between the government and the people.
“Subsidy itself is not the problem. The challenge is that the lack of transparency does not allow for choices. Historically, Nigerians have agreed that subsidy is fraudulent. Where they disagree is whether what they would receive after the government removes the subsidy would be of commensurate or greater value. But there is no trust that the government will provide this.
“So basically, there has been a transparency liability. We need to know how much we owe. How deep is the hole? How far does it go? On asset transparency, let’s know which assets are encumbered. I think if we want to make progress, subsidy removal should have been premised on a fiscal baseline. But it wasn’t.”
He said the myriad of economic problems facing the country would be effectively addressed at the upcoming NESG at 30 Summit, which will take place between the 14th and 16th of October, 2024, in Abuja.
Responding, the Acting Editor of The PUNCH, Oyetunji Abioye, who led the company’s team to receive the visitors, said the vision of NESG aligns with that of The PUNCH, and the company would offer its strong support for the upcoming summit, beginning with its press conference slated for Friday (tomorrow).
The NESG team included the Chairman of the Media and Publicity Subcommittee for the 30th NESG Summit, Mr Udeme Ufot; NESG Senior Communications Specialist, Francis Jakpor; NESG Associate, Oluwatobi Abodunrin; and Executive Assistant to the NESG CEO, Biodun Shittu.
Innoson Vehicle Manufacturing Company (IVM) has dismissed as false and misleading reports claiming that its Founder and Chairman, Chief Dr. Innocent Chukwuma, CON, is dead, insisting that the renowned industrialist is alive and actively leading the company.
In a statement issued on Tuesday, the company’s management described the report as baseless and urged the public to disregard it and rely only on information released through IVM’s official communication channels.
“We wish to unequivocally state that this claim is false, misleading and entirely without factual basis. Chief Dr. Innocent Chukwuma, CON, is alive, well and continues to provide leadership as the Chairman of Innoson Vehicle Manufacturing Company Ltd.,” the statement said.
The company explained that the false report appeared to have mistaken its chairman for another individual with the same name, noting that the distinction had previously been clarified by independent fact-checking organisations.
“The publication appears to have confused our Chairman with another individual who bore the same name but was an entirely different person,” it stated.
IVM urged customers, business partners, dealers, financial institutions, government agencies and the general public to ignore the publication.
The company also disclosed that it had commenced legal action against the publisher, demanding an immediate retraction, a public apology and an end to the circulation of the false report.
“Our legal representatives have formally written to the publisher demanding an immediate retraction, a public apology and the cessation of the dissemination of the false information. We remain committed to pursuing all lawful measures necessary to protect the reputation of our Chairman and safeguard the integrity of our Company,” it added.
Reaffirming its commitment to Nigeria’s industrial development, IVM said it remains focused on producing world-class vehicles and delivering quality products and services despite the misinformation.
The company also thanked Nigerians, customers and business partners for their continued support and confidence, describing their trust as the foundation of its growth and success.
Governors elected under The All Progressives Congress (APC) have reviewed outcome of the party’s primaries and resolved to meet with Prof Netanwe Yilwatda, Chairman of the party, and other leaders.
Governor Hope Uzodimma of Imo and Chairman of the Progressives Governors’ Forum (PGF), said the resolution was reached at the forum’s meeting which ended at the early hours of Tuesday in Abuja.
The News Agency of Nigeria (NAN) reports that the PGF is an umbrella body of all serving APC governors.
Uzodimma while addressing newsmen at the end of the meeting said that the governors also resolved to work to ensure that Nigerians were better off.
He said that the meeting reviewed the outcome of the party’s primaries across the federation, the recent Ekiti governorship election and various by elections in which the APC came out in ”flying colours”.
“We have resolved to work towards solving the problems and challenges facing our democratic space and ensuring that our people are better off.
“We also resolved to meet with the leadership of the party to plan the coming 2027 presidential and National Assembly elections. We are ready and good to go,” he said.
The PGF chairman added that the forum further resolved to continue to work with the APC leadership to support and strengthen it and prepare it for future elections.
The meeting was attended by governors of Ekiti, Zamfara, Taraba, Lagos, Sokoto, Kano, Kaduna, Gombe, Kebbi, Akwa Ibom and Borno States among others.(NAN)
One of the sureties must be a traditional ruler from his community, while the second must own landed property within the Federal Capital Territory.
The judge also ordered the defendant to deposit his international passport with the court registrar pending the determination of the case.
After granting the application, Justice Umar handed Sowore over to his lawyers and adjourned further proceedings until Monday, July 6, when the defendant is expected to open his defence.
Sowore is being prosecuted by the Department of State Services on allegations bordering on cybercrime, following social media posts in which he allegedly referred to President Bola Tinubu as “a criminal.”
He has denied the allegations and pleaded not guilty.
The court revoked Sowore’s bail on June 16 and issued a bench warrant for his arrest after he failed to attend proceedings.
Following the revocation of his bail, Sowore challenged the bench warrant and sought the trial judge’s recusal.
The application was dismissed, after which he was remanded in the Kuje Correctional Centre pending the hearing of his fresh bail application.
Delivering Tuesday’s ruling, Justice Umar restored the defendant’s bail on fresh terms, requiring him to meet the N200 million bail bond and fulfil the conditions attached before regaining his freedom.
Reacting shortly after the ruling, Sowore described the bail conditions as part of the authorities’ continued efforts against him but insisted they would not deter his movement.
He said, “There is no bus on earth that can stop this revolution. We warned them, but they would not listen. But now, it appears a little bit of common sense is returning to them, and as a result, I was granted bail, requiring a traditional ruler, somebody with property in Abuja, and N200m and my international passport.
“They have always been after the passport. So nobody can come after our movement. Nobody can stop the movement. Nobody can stop the idea whose time has come.
“What I want to tell Nigerians is that it is not about my freedom; it is about the liberation of the Nigerian people.”
The United States has described a recent counterterrorism operation in Nigeria as one of its most significant successes in the fight against jihadist groups, recovering what it calls the largest cache of enemy electronic equipment since the September 11, 2001 attacks.Politics
Sebastian Gorka, Deputy Assistant to the President and Senior Director for Counterterrorism at the U.S. National Security Council, made the disclosure in an interview with PragerU CEO Marissa Streit.
Gorka stated that U.S. operatives, in coordination with Nigerian forces, conducted a raid approximately three weeks ago that neutralised 199 jihadists in a single operation.
“That is the biggest neutralisation of enemy killed in action since September 11. Two hundred and ninety-nine jihadists who will not harm Americans again,” Gorka said.
He added that the operation yielded an intelligence haul so substantial that an additional aircraft was required to transport the recovered electronic materials.
“We needed an extra plane to bring home all the electronic material that we captured in those camps. The haul was three times bigger than any enemy electronics haul since 9/11,” he said.
According to Gorka, the recovered materials are being analysed for intelligence on Islamic State (ISIS) and Islamic State West Africa Province (ISWAP) communication networks, financing, operational planning and international links.
Speaking on how the operation was authorised, Gorka said President Donald Trump approved the mission after being briefed on the threat posed by the targeted militants.
“We told the President, this man has killed Americans and is planning to kill Americans. He ticked the ‘go box’ on the operational orders we had in front of him.”
Gorka also said Africa has increasingly become a focus for ISIS because of vast ungoverned territories where extremist groups can regroup after defeats elsewhere.
He further disclosed that the administration’s current counterterrorism campaign has resulted in the neutralisation of more than 1,000 jihadists globally.
Details of the specific location and exact date of the raid were not publicly specified, although reports have linked it to operations in Borno State targeting ISWAP elements, including the reported elimination of a high-value target.
The announcement underscores ongoing U.S.-Nigeria security cooperation against terrorism in the Lake Chad Basin and the wider Sahel. Nigerian and U.S. forces have collaborated on intelligence sharing, training and equipment support in efforts to combat Boko Haram and ISWAP.Demographics
No independent verification of the casualty figures or the scale of the intelligence recovered had been released by Nigerian authorities as of the time of reporting.
The Federal Executive Council (FEC) has approved a sweeping reform of the National Youth Service Corps (NYSC), marking the first comprehensive restructuring of the scheme since its establishment 53 years ago.
The landmark reforms, approved during Monday’s FEC meeting in Abuja, are aimed at transforming the NYSC into a skills-driven, productivity-focused institution that aligns with the Federal Government’s economic development agenda.
One of the most significant changes is the restructuring of the scheme’s leadership, with the NYSC to be headed by a civilian for the first time, while the military will continue to provide security support for corps members across the country.
To give legal effect to the reforms, the Council directed the Attorney-General of the Federation and the Federal Ministry of Youth Development to amend the NYSC Act and other relevant regulations.
Announcing the development on Monday, the Minister of Youth Development, Ayodele Olawande, described the decision as the first holistic review of the NYSC since its creation in 1973.
“We are transforming the Scheme into a platform that not only unites Nigeria but also equips our young people with the skills, experience and opportunities they need to thrive in a fast-changing world,” the minister said.
According to Olawande, the reforms are designed to reposition the NYSC as “a skills-driven, productivity-focused and youth-empowering institution” in line with President Bola Tinubu’s vision of building a $1 trillion economy.
The approved reforms include a technology-driven call-up process, risk-sensitive deployment to enhance the safety of corps members, a redesigned six-week orientation programme with greater emphasis on leadership, entrepreneurship, digital skills and specialised career tracks, as well as skills-based primary assignments aligned with graduates’ academic backgrounds and career aspirations.
Other changes include modern governance with civilian operational leadership, improved orientation camp standards through a national grading and certification system, a new graduation ceremony to replace the traditional Passing Out Parade, and a redesigned NYSC uniform aimed at promoting professionalism and national pride.
Olawande disclosed that the reform process began in 2025 following extensive consultations involving the Federal Ministry of Youth Development, the Federal Ministry of Education, and the Office of the Special Adviser to the President on Policy and Coordination.
“This is more than a reform of an institution. It is an investment in Nigeria’s greatest asset—our young people. The future of the NYSC begins now, and it is brighter, more relevant and more impactful than ever,” he added.
Established in 1973 after the Nigerian Civil War, the NYSC was created to foster national unity by deploying graduates to states outside their regions of origin for one year of compulsory national service.
The latest reforms represent the most far-reaching changes in the history of the scheme, with the Federal Government saying they will make the NYSC more relevant to Nigeria’s evolving economic and youth development priorities.
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