The Comptroller General of Customs and Excise, Adewale Adeniyi, has said President Bola Tinubu gave orders for seized food items to be sold to vulnerable Nigerians to address hunger across the country.

Adeniyi disclosed this on Tuesday on the floor of the House of Representatives during the sectoral debate series, which also had in attendance the Minister of Agriculture and Food Security, Abubakar Kyari.

According to Mr Adeniyi, President Bola Tinubu gave the directive that food items produced in Nigeria and seized at the Nigerian land borders, be sold directly to vulnerable Nigerians to ease the challenge of hunger in the country.

He said, “Mr President has directed that we sell directly to needy Nigerians food items produced locally but which were seized. This is one of the ways to address hunger and food scarcity we are facing. We have started this in Lagos.

“Also, the President has also directed that imported food items seized by the Nigeria Customs Service should be sold back to the local markets for resale to Nigerians,” he said

The Bank of Ghana has imposed a one month suspension on the foreign exchange trading licences of the Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), due to malpractices including fraudulent documentation.

In a statement announcing the suspension, Bank of Ghana said: “Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

“This is as a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of Bank of Ghana.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.

“By this statement, we caution foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.”

The International Monetary Fund (IMF) has emphasised the need for the Nigerian government to prioritise the full implementation of its cash transfer program to aid vulnerable households.

This step is crucial before the government takes on the task of revaluating the costly fuel and electricity subsidies.

According to the IMF, the established social safety net programme, designed to disburse cash transfers to the poor and vulnerable, needs to be operational to its fullest capacity. This approach ensures that the economically vulnerable segments of the population remain shielded as the government contemplates adjustments to the existing fuel and electricity subsidy framework.

This recommendation emerged in the backdrop of concerns raised by the IMF over the fiscal burdens emanating from the current practice of subsidising fuel and electricity in a statement following a recent visit by an IMF team led by Axel Schimmelpfennig, the IMF mission chief for Nigeria.

According to the statement, the continuation of capping fuel pump prices and electricity tariffs below their recovery costs could lead Nigeria to incur fiscal costs of up to 3% of its Gross Domestic Product (GDP) in 2024.

This visit, part of the 2024 Article IV Consultations, saw the team engage in discussions with key Nigerian officials in Lagos and Abuja from February 12 to February 23, 2024.

The statement read partly:

• “Recent improvements in revenue collection and oil production are encouraging. Nigeria’s low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development.
• “Non-oil revenue collection improved by 0.8% of GDP in 2023, helped by naira depreciation. Oil production reached 1.65 million barrels per day in January as the result of enhanced security. The capping of fuel pump prices and electricity tariffs below cost recovery could have a fiscal cost of up to 3% of GDP in 2024.
• “The recently approved targeted social safety net program that will provide cash transfers to vulnerable households needs to be fully implemented before the government can address costly, implicit fuel and electricity subsidies in a manner that will ensure low-income households are protected.”

3.2% GDP growth in 2024

The IMF notes that despite Nigeria’s economy showing signs of growth in the fourth quarter of 2023, with a GDP growth of 2.8%, this growth barely keeps pace with population dynamics.

The Fund further projects an improvement in GDP growth to 3.2% in 2024, supported by increased oil production and anticipated better harvests. However, challenges such as high inflation, a weakening naira, and the need for tighter monetary policies are expected to pose significant headwinds.

On food security and social protection

During its visit, the IMF team praised the Nigerian government’s efforts in addressing food insecurity, which affects approximately 8% of the population.

The team also acknowledged the approval of a targeted social safety net programme intended to provide cash transfers to vulnerable households. This initiative, coupled with improvements in revenue collection and oil production, is seen as a positive step towards stabilising the economy.

However, the IMF emphasised the urgent need for Nigeria to address the financial implications of fuel and electricity subsidies. The Fund suggested that before tackling these costly subsidies, the recently approved social safety net program must be fully implemented to protect low-income households effectively.

On MPR

The IMF also applauded the decision of the Monetary Policy Committee (MPC) to tighten monetary policy further by increasing the policy rate by 400 basis points to 22.75%.

This move, aimed at containing inflation, which had hit 29.9% year-on-year in January 2024, and alleviating pressure on the naira, represents a total tightening of 1,025 basis points since May 2022.

More Insights

• The elimination of fuel subsidies and other recent policies have had a disproportionate impact on Nigeria’s poor and vulnerable, who stand to benefit greatly from a monthly cash transfer system.
• The World Bank earlier said that cash transfers can help save Nigerians from intergenerational poverty traps as inflation and low economic growth adversely affect the poor.
• President Bola Tinubu launched a social safety net programme last year that will distribute N25,000 to 15 million homes for three months in observance of the 2023 International Day for the Eradication of Poverty.
• The Federal Ministry of Humanitarian Affairs and Poverty Alleviation is tasked with carrying out the $800 million World Bank loan project.
• However, the Federal Government had to suspend the cash transfer programme for further investigation and revamping following alleged misappropriations within the programme.
• Betta Edu was earlier suspended as a humanitarian affairs minister due to the misappropriation of N585 million earmarked for palliative distribution.
• Also, Edu’s predecessor, Sadiya Umar-Farouq, is being investigated by the EFCC. The ex-minister is being probed over an alleged laundering of N37.1 billion during her tenure as a minister.
• The Federal Government recently said that it has revamped its cash transfer programme to combat fraud, with immediate implementation of direct payments.

Lawyers, including two Senior Advocates of Nigeria (SAN), have called for the reduction of the powers of the Chief Justice of Nigeria (CJN) to accountability and public confidence in the nation’s judicial process.

They expressed concern that the increasing challenge of accountability, lack of transparency, and corruption among others, contribute to the dwindling public confidence in the judicial process.

These were part of the key issues that dominated discussions at a conference on accountability in the Judiciary held in Abuja on March 1.

Among the conferees were Jibrin Okutrpa (SAN), Adamson Adeboro (SAN), Mbasekei Martin Obono (the Coordinator of Tap Initiative), Victoria Benson, and Lillian Okenwa.

The event, with the theme: “Impact of judicial accountability on democratic Resilience and public trust in the legal system” was organised by Tap Initiative, with the support of Open Society Foundations.

In a communique made available on March 4, the conferees were of the view that the duty to restore the trust of the common man in the Judiciary rests on every member of the profession starting with the Judges and especially the heads of courts.

They urged the Judiciary to take urgent steps to improve transparency within its governance processes especially the appointment of judges.

The conference participants recommended that the office of the CJN should be unbundled especially as chairman of the National Judicial Council (NJC), Federal Judicial Service Commission (FJSC), National Judicial Institute (NJI), and Legal Practitioners Privileges Committee (LPPC).

The conference equally recommended that the conversations will continue and that all Nigerians will make their voice heard and the judiciary would listen and not take the calls for accountability as a challenge to its authority but rather as an opportunity to win public trust again.

They stressed the need to strengthen the integrity requirement of the appointment of judges and make it more transparent.

The conference participants also called for the strengthening of the NJC to hold judicial officers accountable.

They added: “The code of ethics for judicial officers by the NJC needs no review but proper political will by the CJN to investigate and sanction erring judicial officers.”

The participants and discussants suggested that the conference should be made periodic to review the state of accountability in Nigeria’s judiciary.

The Central Bank of Nigeria (CBN) has issued a warning message to Nigeria and other West African nations regarding trends in borrowing practices.
Traditionally, nations often relied on loans from the Paris Club, a group of creditor countries.

However, the CBN has observed a significant shift towards borrowing from non-Paris Club members and private lenders, such as banks and investors who buy government bonds.

The West African Institute for Financial and Economic Management (WAIFEM) has warned that Nigeria is at a high risk of falling into debt distress and urged the federal government to look for ways of improving revenue generation.

Governor of the CBN, Yemi Cardoso, gave the warning in Abuja at the Joint World Bank/IMF/WAIFEM Regional Training on Medium Term Debt Management Strategy in Abuja on Monday, March 4.

Represented by Dr. Mohammed Musa Tumala, Director of the Monetary Policy Department of the CBN, Cardoso noted that while this change in who countries owe money to might seem like a minor detail, he emphasized that it is a critical development with serious implications.

He argued that the way countries manage debt owed to the Paris Club may not be as effective for these new lenders. Cardoso expressed concern that this new debt landscape could pose a threat to financial stability and economic recovery for many countries.

According to the CBN Governor, “Public debt dynamics are increasingly influenced by significant debt servicing obligations to non-Paris Club members and private lenders, including commercial banks and bond investors. This shift in the debt structure represents a critical evolution in the global financial framework, with profound ramifications for public debt management in our countries.

Cardoso stated that recent events like the COVID-19 pandemic, geopolitical conflicts, and natural disasters have put a strain on many countries’ finances, making them more likely to seek loans from diverse sources. However, these non-traditional lenders might come with stricter repayment terms and potentially higher risks compared to Paris Club loans.

“Following the COVID-19 pandemic, along with other developments such as geopolitical conflicts and natural disasters, the financial strain on our sub-region has escalated, posing a threat to their macroeconomic and financial stability and prospects for faster recovery,” he said.

Nigeria, despite being classified as having generally moderate debt risk, the CBN urged the federal government to remain cautious, particularly regarding potential liquidity risks. These risks, if not addressed effectively, could stem from weak revenue mobilization, a persistent challenge hindering debt sustainability and economic stability.

What the CBN is saying is that while Nigeria’s overall debt risk is considered moderate, the country still needs to be careful about its ability to pay back its loans (liquidity risk). This risk could become a problem if the government doesn’t collect enough revenue (money) in the future.

Dr. Baba Yusuf Musa, Director General of the West African Institute for Financial and Economic Management (WAIFEM) told journalists: “When you compare Nigeria with the rest of the world or peer countries, you realize that with the 37 percent debt to GDP ratio, we still have room to borrow but the issue with the Nigerian debt is you don’t use GDP to pay debts rather you use the revenue to pay for any debt”

He added: “If you look at it from the revenue side Nigeria is at a high risk of debt distress in terms of our borrowing so what we need to do now is to step up our capacity to generate revenue, the more revenue we have, the less ratio of debt to revenue we have.”

WAIFEM, he said, is “very much in support of what the federal government is doing because there is a window for the government to raise more revenue, all that the people need to do is to support the federal government diversify the sources of revenue and of course generate more sources of revenue, once we have this we don’t really have debt problem but rather revenue problem

Musa said: “What the Medium Term Debt Strategy (MTDS) does is that it smoothens the debt service so that going forward when borrowing, you take into consideration the redemption profile that you have and the type of loans that you have in your existing portfolio and then it will enable you also to minimize the cost and risk the future loans will add to the debt portfolio.”

“Even among thieves there’s honour,” is the sentiment that “criminals have a code of conduct among themselves.” According to grammarist.com, “some aspects of this code of conduct may be to not steal from each other, or to not testify against a fellow criminal to the police.”

Is there such a “code of conduct” among politicians? It’s doubtful, as among politicians – like among dogs – the first to die becomes the meat for the rest of the pack. If there’s really honour among politicians, heads would’ve rolled since the evening of Saturday, February 17 over the botched governorship primary election of the All Progressives Congress (APC) in Edo State, to choose a candidate for the September 21 governorship poll.

It’s such a messy affair that President Bola Tinubu’s invited to step in. So, will Tinubu prove the doubting Thomas wrong – coupled with his preachment of equity, fairplay and rule of law – by summoning the political will and courage, cancel the charade of a primary election, and save the APC from a second defeat in four years in Edo State?

Perhaps, the President has shown some spine, as the APC’s National Working Committee (NWC) has declared the primaries “inconclusive” after meeting and briefing Tinubu about the chaotic outcome of the exercise, and “the President expressed concerns at the turn of events, and directed the NWC to ensure that the exercise was concluded,” as first reported by The Nation on February 21.

Hence their tails tucked in-between their legs, the Abdullahi Ganduje-led NWC, after an emergency meeting on February 20, scheduled the completion of the primaries for Thursday, February 22, going by a statement by the national publicity secretary of the APC, Mr Felix Morka, fielding questions from reporters after the NWC meeting.

Morka said: “At its emergency meeting held today, Tuesday, February 20, 2024, to consider the report on the Edo State Governorship Primary Election, the National Working Committee (NWC) deliberated on the report and resolved that the Edo State Governorship Primary Election has not been completed, and has now fixed Thursday, February 22, 2024, for the completion of the Primary Election Process.”

Dr Ganduje and his team didn’t have to await Tinubu’s directive on what to do to rectify the controversial primaries. In a best case scenario, the APC leadership would’ve acted swiftly, called for calm, and given the assurance to members, particularly in Edo State, that it’d look into the primary misadventure through the primary election appeals committee instituted ahead of the exercise by the NWC.

And in a worst case scenario, the party would’ve dismissed the conflicting declarations made – with four aspirants laying claim to winning the primaries – dissolved the Governor Hope Uzodimma-led primary election committee, and fixed a new date for a re-run or fresh primary poll within days, to meet the February 24 deadline set by the Independent National Electoral Commission (INEC).

But what did Nigerians – particularly the shocked and distrust members of the APC in Edo State – see and hear from the leadership of the party? A congratulatory message in the night of February 17 from the national chairman, Ganduje, “to the winner of the primaries,” and solicitation for the “defeated aspirants” to “bury the hatchet” and work for party unity to win the Edo governorship.

As of Sunday, February 18, four aspirants claimed that they won the primaries – supervised by Governor Uzodimma, Cross River State Governor Bassey Otu, and five other members of the APC Edo Governorship Primary Election – to choose a candidate for the September 21 election.

The primary election claimants include Hon. Dennis Idahosa, a member representing Ovia Federal Constituency in the House of Representatives, who’s declared as the winner by the Uzodimma committee; and Senator Monday Okpebholo (APC, Edo Central), who’s declared the winner by the NWC-appointed state chief collation and returning officer, Dr Stanley Ugboajah.

The others are Hon. Anamero Dekeri, member representing Etsako Federal Constituency, pronounced the winner by local government returning officers; and Mr Clem Agba, former minister of state for Budget and National Planning, who claims that going by the turnout of voters, he won the majority of lawful votes of APC members, and has threatened legal action to affirm his “victory.”

Tension had enveloped the Edo political landscape when – on the eve of the primaries, two of the leading aspirants – former Secretary to the State Government and twice governorship candidate, Pastor Osagie Ize-Iyamu, and former Deputy Governor Lucky Imasuen withdrew from the race, citing the APC leadership’s zoning of the governorship to Edo Central that’s been marginalised in the governance of the state since civilian democracy returned in Nigeria in 1999.

Amid reports that the primaries didn’t hold in virtually all 192 wards of the 18 local government areas of Edo State, results started flying on social media, and coming in droves from the local government collation agents and returning officers into the designated state collation centre in Benin City, capital city of Edo State.

But midway into the televised collation of the primary results, scores of armed political thugs invaded the centre – and in the presence of security operatives, and INEC officials – disrupted the proceedings, and beat up journalists, electoral officials and destroyed laptops and television cameras.

Until that moment, it’s assumed that the primary election was one for all the aspirants. But the Uzodimma-headed committee, perhaps apprised in advance about the hoodlums’ attack, relocated to another venue, where it declared Hon. Idahosa as winner of the primaries, even as only eight of the 18 local government areas’ results had been collated.

Recall that stakeholders in Edo APC had protested Uzodimma’s appointment to head the primary election committee, alleging that he’d do a hatchet job for Senator and former Governor Adams Oshiomhole, who’d openly canvassed – even in a viral video on social media on the eve of the primaries – for Idahosa’s candidacy.

So, Uzodimma, willy-nilly, proved the Edo APC stakeholders right by taking advantage of the mileu caused by the political thugs at the collation centre to announce Idahosa as “winner” of the primaries, despite Senator Okpebholo leading in the results of eight councils declared before the thugs struck.

Still, amid the uproar that greeted Uzodimma’s declaration of Idahosa as the “duly nominated candidate,” Mr Ganduje, in a rather fait accompli statement by his chief press secretary, Mr Edwin Olofu, congratulated the “winner,” and called on the “defeated aspirants” to support him for the unity of the APC.

“I want to congratulate the winner of the Edo State governorship election, I want to equally commend and appreciate Governor Hope Uzodimma’s election committee for their hard work and the transparent manner in which the primary election was conducted,” Ganduje said.

“At this point, I want to call on all the aspirants to bury the hatchet and work for the interest of the party so that our party will emerge victorious (on September 21),” Ganduje added.

Was Ganduje’s congratulatory message to Hon. Idahosa hasty, as alleged by aggrieved  supporters of the “defeated aspirants,” or played into a script written by Comrade Oshiomhole to smoothen the primary path for his “anointed candidate,” Idahosa?

As seen in a trending video 24 hours to the election, as first reported by THISDAY, Oshiomhole claimed that President Tinubu had adopted Idahosa as the APC governorship candidate, a claim debunked by the deputy chairman of the Edo State APC gubernatorial primaries committee and Cross River Governor Otu.

Sen. Otu “categorically dismissed the rumour that President Tinubu has anointed a particular aspirant for the Edo APC gubernatorial primaries,” and “urged party faithful to disregard the lie and vote for their choice candidate.”

“This perhaps fuelled counter-narrative on the eve of the primaries, that the Presidency had settled for an aspirant from Edo Central, to be anointed for equity, justice and fairplay, and that Senator Monday Okpebholo is the anointed candidate,” THISDAY reports.

The same narrative of endorsement led to the withdrawal of Pastor Ize-Iyamu from the race, “with a directive to his supporters to cast their votes for Okpebholo,” and the subsequent withdrawal by former Mr Imasuen, citing the reported APC zoning of the governorship to Edo Central.

In the interim, the national publicity secretary of the APC, Mr Felix Morka, defended Uzodimma’s declaration, and dismissed the affirmation by the chief returning officer, saying the NWC had empowered Uzodimma to make the final return on the primaries.

Morka said: “We wish to state categorically that only the Governor Hope Uzodinma-led Edo State APC Governorship Primary Election Committee is duly authorized to undertake final collation and announcement of results of the Primary Election in the state. We urge all party members, officials in the state, and the general public to disregard the said announcement of results by these unauthorized persons.”

But a letter signed by the APC National Organising Secretary, Sulaiman Mohammad Argungu, appointed Ugboajah as the State Chief Returning Officer, with 18 others as Local Government Area Returning Officers for each of the 18 local government areas of Edo State.

So, who had the authority, between Uzodimma and Ugboajah, to make pronouncement on the outcome of the primaries, as the two were on legitimate duty?

Nonetheless, the Edo chapter of the APC, via its publicity secretary, Prince Igbinigie, describing the conduct of Uzodimma as “most embarrassing, unfortunate and bizarre,” faulted the governor’s “usurpation” of the duties of the local government collation agents and the returning officers for the primaries.

Mr Igbinigie alleged that “upon learning that his preferred aspirant wasn’t winning, Uzodimma singlehandedly relocated the collation centre, and then unilaterally assumed the role of the state’s returning officers without recourse to inputs from the local government collation agents as well as the chief returning officer of the exercise.”

However, Igbinigie said after normalcy was restored at the “recognised collation centre,” with the local government area returning officers and representatives from INEC, the results were declared by Dr Ugboajah, “whose responsibility it is to carry out this function.”

Reeling out the scores by 11 of the original 12 cleared aspirants for the primaries, with Sen. Okpebholo having 12,145 votes, and Hon. Idahosa getting 5,536 votes for the first and second positions, respectively, Igbinigie said: “Therefore, it is the desire of the state working committee to reiterate that Sen. Monday Okpebholo is the duly elected gubernatorial candidate of our great party for the September 2024 governorship election.”

Meanwhile, one of the leading aspirants and court-removed former Governor Oserheimen Osunbor has appealed to President Tinubu to step in and arrest the primary crises allegedly instigated to divide the APC for the PDP to retain power in September. Prof. Osunbor asked Tinubu to:

(1) Cause an investigation to be instituted into the allegation that this sham of a primary election, and the crises it has generated, have been induced by gratification given and received by the principal actors to damage APC and pave the way for the emergence of the PDP candidate in the election.

(2) Order the cancellation of the primary election, which has produced two or four candidates, as it can’t stand the test of legal scrutiny but rather will jeopardize the chances of APC, as there’s been “a brazen disregard of the Party Guidelines, Party Constitution and the Electoral Act, which may prove fatal in the event of litigation.”

(3) Order another primary election to be conducted ahead of the 24th February deadline set by INEC. Different officers should be assigned to conduct the fresh primaries.

Declaring that, “I make this appeal as the most popular aspirant with name recognition and acceptability throughout the length and breadth of Edo State,” Osunbor, at a press conference on February 18 in Ekpoma, Esan West of Edo State, said registered members of the APC across the state came out to vote for their preferred candidate, but “to their disappointment, the election did not take place anywhere that I know of across the 18 local government areas of Edo State.”

“The party officials deployed from the Abuja office of the National Organising Secretary to conduct the elections at the various wards and local government areas of Edo State were kept in hotels in Benin,” Osunbor said, adding, “There is no record or video of any of them preforming their assigned roles in the election at their respective designated points.”

“What we saw on television was not result of election but allocation of votes by some persons in Benin to each of the aspirants. In the end, two candidates have been announced as winners, Sen. Monday Okpebholo and Hon. Denis Idahosa in a primary election that was never held or was not conducted in accordance with the law and guidelines.

“This charade confirms the widespread suspicion that they are labouring to present a weak APC candidate that will be easily over-run and defeated by the presumed PDP candidate during the election. They are not working in the interest of APC but of PDP. We must avoid a repeat of the scenario which led to the defeat of APC in 2020.”

Also on February 18 in Abuja, after an emergency meeting, APC stakeholders rooting for Hon. Dekeri, called on Ganduje and President Tinubu to, “as a matter of honour, discard Governor Uzodimma’s infamous declaration of one Mr. Denis Idahosa, who didn’t win the primaries.”

Spokesman of the forum, Mr Emmanuel Godwin, said Uzodimma wasn’t the chief returning officer for the election, and accused the primary committee of “usurping the duties and responsibilities of local government returning officers in the Edo State primaries.”

Godwin said: “It is unfortunate that Hope Uzodimma, who is not the returning officer in whatever capacity, assumed the position and went ahead to announce Dennis Idahosa when the returning officers were still collating the results.

“We wish to therefore state categorically that the purported announcement is null and void and it should be disregarded in its entirety. Governor Uzodimma lacks the power to usurp duties and responsibilities of local government returning officers in the Edo State primaries.”

In the lead-up to the February 17 primary election Ganduje, and Uzodimma presented themselves as democrats, who wanted things done as laid out in the rulebook of the party. On February 15, at the national headquarters of the APC in Abuja, the former governor of Kano State, inaugurated the APC Edo Governorship Primary Election and Appeals Committees for the direct primary poll.

Specifically on the appeals committee, Ganduje, who vows to reclaim Edo State from the opposition Peoples Democratic Party (PDP), to expand the coast of the ruling APC in Nigeria, said: “It is a tradition for us to always constitute a body that will undertake an assignment so that at the end of it, we get good results.

“I will like to inform you that the composition of the two committees is a product of the National Working Committee (NWC) in accordance with the constitution of our party. Whatever you do, the contestants are free to appeal. That is why we have an appeals committee, which is like the Supreme Court.”

From hindsight, the Ganduje message was a double-edged sword: Members of the primary election committee should conduct a credible and transparent election acceptable to the aspirants, their supporters, and members of the APC; and whatever the outcome of the poll, the aspirants shouldn’t rock the boat, but appeal for a possible remedy.

Responding, Uzodimma thanked Ganduje and the NWC for the confidence reposed in the members, promised to discharge their assignment with utmost diligence, and stressed that, “Our prayers is that we work hard to justify this confidence reposed in us,” as “our party is a fantastic brand, very popular, and a good product.”
“It behooves on members of our committee to work in harmony with the party’s local leadership in Edo, to bring up a product that will look like our party and is easily marketable in Edo,” Uzodimma said, and urged the APC leadership to pray to God Almighty “to give us the wherewithal to carry out our assignment.”
In the end, did Ganduje and Uzodimma carry out the duty of producing a sellable, marketable and acceptable candidate in accordance with the dictates of the constitution of the APC? No, they did the opposite, in connivance with the local potentate, Comrade Oshiomhole who, from the get go, had primed Hon. Idahosa as his “anointed candidate” for the governorship.
Pre-the primary election, the APC NWC sent officials to the wards and local government areas of Edo State, to authentic the number of actual and financial members of the party – a finding that revealed that only about 42,000 members were qualified to participate in the primaries.

Surprisingly, announcing the results several hours before the completion of collation, Governor Uzodimma ascribed 40,453 votes cast by the verified 42,000 members to Hon. Idahosa alone. Other aspirants’ scores were: Anamero Dekeri, 2,030 votes; Monday Okpebholo, 100; Clem Agba, 100; Osagie Ize-Iyamu, 2; Gideon Ikhine, 700; David Imuse, 400; Charles Airhiavbere, 162; Oserheimen Osunbor, 180; Blessing Agbomhere, 50; Ernest Umakhihe, 2; and Lucky Imasuen, 2 votes.

“This is to certify that Dennis Idahosa, having scored the highest number of votes, is hereby declared winner of the primary election,” Uzodimma said.

In the results declared by Ugboajah, Sen. Okpebholo received 12,145 votes; Dennis Idahosa, 5,536; Afolabi Umakhihe, 2,090; Anamero Dekeri, 1,625; Charles Arhiavbere, 919; Gideon Ikhine, 902; Oserheimen Osunbor, 688; David Imuse, 507; Lucky Imasuen, 503; and Osagie Ize-Iyamu, 383 votes. Clem Agba’s name and score weren’t included.

“This is to certify that Monday Okpebholo has scored the highest votes, and declared winner of the APC governorship primary and thereby declared the candidate of the party,” Dr Ugboajah said.

And in the results announced on Saturday night by Mr Ojo Babatunde for the local government returning officers, Hon. Dekeri got 25,384 votes, while Idahosa received 14,127 votes. No votes were recorded for Okpebholo and nine other aspirants.

If any of the three results declared by the different authorities of the APC Primary Election Committee for Edo 2024 governorship election are considered, only Dr Ugboajah’s declaration merits giving any probative value, having followed the prescribed process of collation and declaration of results.

Besides, no matter their level of popularity and reach in Edo State, no single aspirant among the 10 that made it to the fiercely-contested primary, could secure even 15,000 votes, talkless of outlandish votes in excess of 40,000 from less than 42,000 members that voted. It’s daylight robbery to claim as such!

As the National Leader of the APC – an appellation he’d styled himself for eight years under the Muhammadu Buhari administration (2015-2023) – President Tinubu should show true leadership and cancel the bogus primary election in Edo State, and call for re-run or fresh primaries before the INEC deadline of February 24. Nothing else will assuage the electoral heist perpetrated on February 17! Edo people are watching and waiting, and may not forget their deliberate disenfranchishment on September 21!

* Mr Ezomon, Journalist and Media Consultant, writes from Lagos, Nigeria .

When Justice Olukayode Ariwooola, Chief Justice of Nigeria (CJN) retires from the Bench in 2024, upon the attainment of the statutory, mandatory retirement age of 70 years, he would be able to count among his legacies, as CJN, the singular fact that it was under his watch that the Supreme Court achieved the full complement of 21 Justices as required by law. Section 230(2) (b) of the 1999 Constitution states that “the Supreme Court of Nigeria shall consist of such number of Justices not exceeding 21 as may be prescribed by an Act of the National Assembly.” By February 2020, the number of Justices left on the Supreme Court was 13. One after the other, their Lordships retired: Justice Paul Galumje retired in 2020, Justice Sylvester Ngwuta died while still in service in March 2021, three weeks to his 70^th birthday, Justice Olabode Rhode-Vivour, retired in 2021, Justice Mary Odili in 2022, Justice Ejembi Eko in 2022, Justice Tanko Muhammad resigned abruptly in 2023, Justice Amina Augie retired in 2023, and Justice Musa Dattijo Muhammed, 2023, Justice Chima Cletus Nweze, due to retire in 2028 died in July 2023.  By October 2023, the number of Supreme Court Justices had dropped to an unprecedented, all-time low number of 10. Those vacancies have now been filled. It is a historic, welcome development and beyond the Bench itself, an achievement for the Bola Ahmed Tinubu administration. 

The extant Revised NJC Guidelines and Procedural Rules for the Appointment of Judicial Officers of all Superior Courts (2014), and the 2016 National Judicial Policy define the processes for the appointment of such officers - nominations from a broad spectrum of persons and officials are required but for some reason, there was never a full complement of Supreme Court Justices under the Buhari administration.  Sometime in 2019, President Buhari had in fact asked the then acting CJN, Justice Tanko Muhammad to initiate the process of filling the vacancies on the Supreme Court Bench. This caused a little furore, the nomination of judges not being the function of the Executive. The integrity of the process was the issue. When the NJC went ahead to obey the Presidential directive and recommended the appointment of four new Supreme Court Justices, and sent the list to President Buhari, a civil society group, Access to Justice went to court. We need not allow the history of the relationship between the Buhari administration and the judiciary to detain us in this present enquiry, however. It is enough to say that at those times, 2015 – 2023, the relationship between the judiciary and the Executive arms of government were in turns adversarial and complementary. Buhari was the first President to allocate the largest amount of funding to the judiciary, but it was also in those days that it became common for the houses of judges to be raided at midnight. Justice Walter Onnoghen was suspended as CJN, and forced to retire before his time. His replacement, Justice Tanko Muhammad was also forced to retire prematurely. The Buhari administration routinely disobeyed court orders and violated the rule of law. In 2016, two Justices of the Supreme Court were appointed under the Buhari administration -Justices Ejembi Eko and Amina Augie, and in 2020 four Justices - Tijanni Abubakar, Mohammed l. Garba, Abdu Aboki and Mohammed M. Saulawa but at no time since 1999 did the Supreme Court reach its full complement. 

This has now happened with the swearing in, a week ago, of additional 11 Justices of the Supreme Court: Haruna Tsammani (North East), Jamilu Tukur (North West), Abubakar Umar (North West), Jummai Sankey (North Central), Mohammed Idris (North Central), Stephen Adah (North Central), Moore A. Adumein (South South), Chidiebere Uwa (South East), Chioma Nwosu-Iheme (South East) Obande Ogbuniya (South East) and Habeeb Adewale Abiru (South West). These were the 11 that made it to the Supreme Court out of the 22 that were originally shortlisted and screened by the National Judicial Council on 28^th November 2023, divided then into priority and reserved candidates. The final list has 10 of the priority candidates and one that was reserved - Justice Chioma Nwosu-Iheme. It is most appropriate to congratulate their Lordships on their elevation to the apex Court. It is a great honour and an accomplishment of no small measure to sit on the highest court in the land. The CJN underlined this when he told the 11 Justices that they should see themselves as “God’s representatives on earth.” He told them that they should not seek to please everyone: “the only deity you can fear is the Almighty God. Once your judgment is in consonance with what God expects from you, and is also in accordance with the Constitution, you should consider yourself the happiest and freest person on earth. Your moral uprightness, integrity and respect for the constitution and other extant laws in operation, must be unwavering and unassailable. Any judgement given at this level can only be upturned in heaven.”  

In those words, CJN Olukayode Ariwooola reminded the JSCs of the role of the judex, and the high responsibility upon their shoulders. They are expected to be above board like Caesar’s wife, to dispense justice without fear or favour not minding whose ox is gored. These 11 Justices are taking their seats on the Supreme Court Bench at a time when the reputation of the Nigerian judiciary, including the apex court has received so much bashing, and there is a lot of cynicism about our judges among the populace. Today, not many would agree with CJN Ariwoola that Nigerian judges at any level are God’s representatives on earth, or that they have any clue about what God expects from them. The CJN could have offered his guidance without dragging God into the matter. But he was right to have suggested that all eyes will be on the apex court, especially the eyes of Nigerian politicians who think that part of their mission should be to steal the votes and also influence the judges. The eyes of lawyers will also be on the new Justices, who are already known, but in terms of how their elevation and having a full complement of the judex on the apex Bench would affect the dispensation of justice and enrich jurisprudence.  

The key concern about the depletion of the apex court was that the dockets were full, the court was over-congested with cases, and the Justices, so few in number, were overworked. They were also underpaid and under-resourced as Justice Musa Dattijo Muhammad pointed out in his somewhat histrionic valedictory speech in October 2023. With the apex court now having 21 Justices, it means more cases can be heard and there can be a better rate of performance and efficiency. But for this to happen, however, the administrative processes at our Supreme Court also need to be overhauled and modernized. There is too much clumsiness that is advertised up there. Many cases that need not go all the way to the Supreme Court show up there. This should be a proper policy court, not an “orisirisi court”. It must be possible to have a strong, pro-active Registry of the Supreme Court that rejects cases that do not belong there. The Supreme Court’s original and inherent jurisdiction should be clear enough. Many lawyers have had to go to the Supreme Court only to be told that the Justices are away for another function, or that the matter should not have been brought there in the first place. In the age of telephony and modern communication, that is scandalous. The Supreme Court must become a 21^st Century Court by deploying technology to aid its processes and by learning the best lessons from other jurisdictions. Any counsel that files any incompetent or frivolous matter or tries to waste the time of the court must be promptly sanctioned. These days, there is too much indiscipline by lawyers that is condoned by the Bench at all levels. 

The 11 new Justices were said to have gone through screening by the Department of State Services (DSS). I think it is scandalous that potential Justices of the Supreme Court have to be screened by the DSS, which in the books has absolutely no role in the nomination or appointment of Judges. The very suggestion that the Nigerian judiciary can throw up any persons who can rise through the system and act as judges for years, only to be investigated for any form of wrong-doing at the point of elevation to the apex court is scary. But in any case, all the Justices reportedly passed the test and they were unanimously cleared by the Senate of the Federal Republic via the instrumentality of a voice vote. I think the rubber-stamp role of the Senate in the process should also be reviewed. In other jurisdictions, such as the United States, justices don’t just get to the Supreme Court. They are subjected to rigorous public scrutiny and may be rejected or withdrawn. Public hearings are held, the nominees are interrogated. Their previous judgements are scrutinized to determine their scope, ideological bent and contributions to Constitutional doctrine. Their academic qualifications are carefully re-examined too. Students of comparative legal systems will remember the case of Justice Clarence Thomas and the sexual harassment testimony of Anita Hill in 1991, as well as the objection of Democrats to Justice Robert Kavanaugh, and the febrile public hearings that attended his screening in 2018. There is also the recent case of Ketanji Brown Jackson, the first Black woman to serve as a Justice of the United States Supreme Court. She did not get there because of her colour or gender. Her confirmation hearings were heated and contentious.

Here in Nigeria, once you make the NJC final list, you are already on the Bench. We need to review the process and allow public hearings. In the course of the review of litigations after the 2023 general elections, questions were raised about the work of at least two of the 11 Justices who are now on the Supreme Court Bench: Justice Moore Adumein in the 2023 Kano Gubernatorial election case, and Justice Chioma Nwosu-Iheme whose nomination was openly questioned by Senator Elisha Abbo. It would have been good for their Lordships to be asked for example to respond to the allegations and insinuations about their professionalism. 

It is also not a good thing that elevation to the highest judicial seat in the country has been reduced to geography and promotion. There has been some talk about how the appointments show diversity - that is geography. Every geopolitical zone is now well represented at the Supreme Court Bench.  It must be said that Supreme Court Justices are not quota representatives. They are to be chosen on the basis of merit, character and proven contributions to law. The notion that Justices of the Court of Appeal are entitled to be promoted to the highest court in the land is wrong. I find strong merit in the recommendation that the Supreme Court Bench should be made open to Senior Advocates of Nigeria of great distinction and academics to deepen the knowledge and expertise base of the court. The Supreme Court must not be turned into a secret society or a retirement zone for Justices of the Court of Appeal. In 2017, the Nigerian Bar Association nominated nine of its members for the Supreme Court seat but they were ignored. The appointment of judges must be reformed. And that would not be new: Justices Teslim Elias and Augustine Nnamani got to the Supreme Court through academia and the Bar. In Canada, this widening of the pool that we recommend is standard practice. 

The big elephant in the room is jurisprudence. One of the major concerns about Nigeria’s Court of Appeal is that it had become a court of technicalities, with the judex determining cases on convenient technical grounds rather than the higher ground of judicial activism. With the new Justices of the Supreme Court coming directly from that court, it is hoped that they would not bring their over-reliance on technicalities to the Supreme Court. Once upon a time, especially during the golden era of Justices Kayode Eso, Chukwudifu Oputa, Augustine Nnamani, Ayo Irikefe, Anthony Aniagolu, Andrew Obaseki, Adolphus Karibi-Whyte, Alfa Belgore Muhammadu Uwais, Mohammed Bello … Nigeria witnessed some of the most rigorous applications of the law and the delivery of justice, even under the military, and court judgements by their Lordships were profound exercises in law, language, philosophy and wit. Over the years, the standards collapsed, as court judgements were reduced to a simple summary of pleadings and a casual pronouncement of decisions – a frightening indication of how robust craft and sound reasoning had disappeared from our courts. Most students of the law would like to see a return to the good old days not just at the apex court, but within the entire judiciary, which in itself is in urgent need of reform. 

With the current talk about reconfiguration, decentralization and restructuring, whichever phrase suits our fancy, the Nigerian judiciary is also in urgent need of reconfiguring. There is too much power in the hands of the Chief Justice of Nigeria who in addition to being CJN, is also Chair of the National Judicial Council (NJC), Chair of the National Judicial Institute (NJI), Chair of the Legal Practitioners Privileges Committee (LPPC) and Chair of the Federal Judicial Service Commission (FJSC). The military after a fashion may have imagined that the head of the country’s judiciary should also be an overlord like them, but that has to change: the office of the CJN must not possess the powers of an Emperor or what Yorubas call “Kabiyesi”, that is a traditional monarch, who represents God on earth!  The NJC should be unbundled. The CJN must be a democrat within the system. It should also not be the duty of the NJC to appoint and discipline judges or to appoint Chief Judges of the states. There have been calls as well for the de-centralization of the Supreme Court for more effective administration of justice, with the apex court having divisions in the country’s six geopolitical zones like the Appeal Court. 

While the pros and cons of that suggestion may be a different kettle of fish altogether, the immediate expectation is that a full Supreme Court would have all its court rooms functioning and that the new Justices will enrich our jurisprudence and help the apex court achieve its full potential. Even with these new appointments, more Justices of the Supreme Court will also soon retire. There should be no delays in filling whatever vacancies may arise. At an individual level, each one of the Justices has a duty and a responsibility to prove his or her mettle. Welcome on board, your Lordships… 

President Bola Ahmed Tinubu yesterday tasked global partners to stand with Africa in its fight against growing and socio-political crisis springing up on the continent.

He gave the task at the opening of a summit on African Regional Dialogue of the Future titled: “The Africa we want and the UN we need” in Abuja.

Represented by the Secretary to the Government of the Federation (SGF), Senator George Akume, the President expressed concern over the rising threat of terrorism, insurgency and military intrusions in governance across Africa, particularly in West Africa,

He, however, pressed the African Union (AU) and the United Nations (UN) to devise innovative strategies to halt the flow of arms and light weapons into the continent.

Tinubu said: “As part of our collective response to these challenges which have grave global implications, may I urge the participants to find innovative and cost-effective strategies by which the African Union would collaborate with the United Nations and the international community to stem the tide of the proliferation of arms and light weapons into Africa, end terrorism and resurgent insurgency and to check the retrogressive return of the military in governance in Africa.”

The president commended the efforts of the Savannah Centre for Diplomacy, Democracy and Development and the Stimson Centre for organising the high-level Regional Dialogue, highlighting the global call for reform and democratisation of the UN System.

“The wide support by many reputable international Civil Society Organisations and research institutions…speaks the minds of honest and progressive global citizens,” he noted, emphasising the collective desire to improve global governance through multilateralism”, Tinubu said.

[TheNation]

Former President Olusegun Obasanjo, on Monday, advised that Nigeria should approach the government of Zimbabwe for a solution to the current all-time high inflation in the country.

He noted that since Zimbabwe was recently confronted with the same problem and came out of it, the southern African country would have useful advice for Nigeria.

In its latest release, the National Bureau of Statistics put Nigeria’s inflation at 29.9 per-cent.

The country is currently grappling with high cost of living, with pockets of protests breaking out across the country as Nigerians contend with increasing prices of foodstuffs.

Obasanjo, speaking on Monday at a youth leadership symposium as part of activities lined up for his 87th birthday, said Nigeria had Zimbabwe to learn from.

The symposium with the theme “Opportunities for Peace: Roles of the Youths in Conflict Prevention in Africa” held at the Olusegun Obasanjo Presidential Library, Abeokuta.

It was put together by the Centre for Human Security and Dialogue in collaboration with the Institute for African Culture and International Understanding, Olusegun Obasanjo Presidential Library.

The ex-President said the times of challenges were not to give up but to face the problem head-on and draw lessons from those who encountered similar problems in the past and overcame.

He said, “When the time is rough and tough, the tough must get going..no problem is new and no problem will be permanent. Committing suicide is not the end of any problem, confront it and take it to God because he could do anything. When you have a problem look at those who have had this problem before and how they overcame it

“We have this problem of galloping inflation in the country now but do we have a country with such problems recently? Yes we do, Zimbabwe had this problem recently.  Shouldn’t we ask them how they did it even if our approach will be different? Even if whatever we shall be doing will be different but we can ask questions to navigate our way out.”

Obasanjo also posited that dialogue, not guns or any form of violence, would help resolve the various conflicts on the African continent.

He said that like never before, conscious efforts to build and inculcate a culture of peace and security in the youth must be intensified to spur them to be at the vanguard of promoting peace rather than being used to perpetrate violence on the continent.

He said, “We must begin to bring up our youths in the culture of peace and security. The chances are where we have a culture of love, we will have peace. The first thing to do is to inculcate in the youths the ingredients of peace which is love and fellowship.

“Look at the attributes that God gave us to have a life of stability, life of peace, they are as I mentioned, kindness, mercy and forgiveness. All of these attributes are professed by God and He shared same with us to make life pleasant for us. But when we build negative attitudes, pull him down, then there will be a problem.”

He referenced biblical characters Esther, “who was able to secure her race from being exterminated,” and Joseph,  “who helped to fight famine.”

“The youth must be at the vanguard of pursuing peace. They must be able to persuade those who believe that gun and violence is the way out of conflicts to have a rethink. The way out is conversation and dialogue.

“We have had our issues here during the civil war. We killed ourselves mercilessly and destroyed our best facilities but we still came back to the roundtable to get the challenge resolved.

“Youths must develop the culture of peace, the culture of humaneness, the culture of living the way God wants us to live,” Obasanjo added.

The coordinator of the programme and former Executive Secretary of the National Universities Commission, Prof Peter Okebukola, said the essence of the symposium was to further drive home Obasanjo’s commitment to the African youths.

Okebukola, who is the Director of the Institute for African Culture and International Understanding, Olusegun Obasanjo Presidential Library, said, “This event is a testament to the belief that it is not enough to grant young people a seat at the table; their involvement must be vital and meaningful.

“Through targeted interventions, inclusive policies, and international collaboration, we aim to empower West African youths as catalysts for positive change, paving the way for a more peaceful and harmonious society.”

[Punch]

Corporate Nigeria and some political titans turned up yesterday to celebrate the life and times of the late Chief Executive Officer of Access Corporation Plc, Herbert Wigwe who all of them described as a titan.

In  an emotion laden ‘Night of Tributes’ with touching memories, dignitaries from the public and private sectors, led by Africa’s richest man, Aliko Dangote, Minister of Finance, Wale Edun, governors of Lagos and Ogun states, Central Bank of Nigeria, CBN governor and bank chief executives sang praises of the late bank chief.

Wigwe, 57 years old,   who was also MD/CEO Access Bank Plc, died in a helicopter crash in United States on February 9, 2024, alongside his wife, Chizoba Wigwe, his Son, Chizi Wigwe amd former President, Nigeria Exchange, Mr. Abimbola Ogunbanjo.

Other dignitaries at the event include President, African Development Bank, AfDB, Adesina Akinwunmi, Chairman Zenith Bank Plc, Jim Ovia, Chairman Coronation  Capital, Mr. Aigboje Aig-Imoukhuede, CEO, GTHoldings Plc, Segun Agbaje, CEO of FirstBank Nigeria Limited, Adesola Adedutan and the President, Chartered Institute of Bankers of Nigeria, CIBN, Mr. Ken Okpara.

Dangote

In his tribute, Dangote descibed the late Herbert Wigwe as a loyal friend and a pillar of support for him and his family.

Fighting to hold back tears, Dangote narrated how late Herbert encouraged him in his business pursuits.

Dangote described the late Herbert as a visionary role model with courage second to none.

“I am proud to name him my devoted friend, mentee and supporter. I will forever cherish the warmth of his friendship,” Dangote said.

Dangote also disclosed plans to immotalise the late banker by naming the road to the Dangote Refinery as Herbert Wigwe road.

Adesina

AfDB President, Adesina Akinwunmi, in his tribute said:  ‘’Herbert Wigwe brought pride to Nigeria and to Africa.

“He was relentless, determined, bold, visionary, inspiring, with exceptional drive   for excellence. Everything he touched became gold

“Herbert is a   bankers   banker, and investors asset holder. His drive for major achievements sparks courage. Herbert was bankable and Access Bank was bankable.”

Aig-Imoukhuede

The chairman, Coronation Capital, Aigboje Aig-Imoukhuede, described Herbert Wigwe as a brilliant banker who help to transform the banking industry in Nigeria.

Edun

Minister of Finance, Wale Edun, described late Herbert as a pillar of support who was full of knowledge, ideas and creative thinking.

“He gave me his time and thinking. He had solutions, never at a loss,” said Edun.

Sanwo-Olu

Governor, Lagos State, Mr. Babajide Sanwo Olu, paid glowing tributes to the leadership qualities of late Herbert Wigwe, especially in rallying support to combat the COVID-19 pandemic.

“Herbert led from the front during the difficult period of COVID 19.

Describing the late banker as a brother, friend adviser, who supported the infrastructure drive of his administration, Sanwo Olu said Lagos would not forget Herbert Wigwe.

Gov Abiodun

Herbert believed in Nigeria—Dapo Abiodun

Ogun State governor on his part, praised the late Herbert for his commitment to Nigeria

“Herbert believed in Nigeria. He did everything to support Nigeria.  He was intelligent, bold and lived two lifetimes in one.”

Cardoso

CBN Governor, Olayemi Cardoso described  late Herbert Wigwe as a trully exceptional individual who played a pivotal role in transforming Access   Bank into one of Nigeria’s foremost financial institutions.

I spoke with Herbert 2 weeks before he died —Agbaje

Agbaje

The Group Chief Executive Officer of GT Holdings, Mr Segun Agbaje, in his tribute, said he spoke with the late Herbert two weeks before he died, just as he described him (Herbert) as a fierce competiton.

Agbaje said: “It is indeed a very difficult for me. Herbert was my colleague, friend, competitor and brother. Only Herbert could have been all those things to a human being. 

‘’We started as colleagues. I met Herbert in November 1991, we were both in the corporate bank. And then, as we all matured, Herbert became my real brother. 

‘’He would alweays make the phone call to get you out of the spot you were in. It is weird that my last conversation with him was two weeks before he died.

He came to my house to talk about his obsession which was his university.”

Banks now borrow more from CBN to shore up cash position

Amidst sustained liquidity 

mop-up and monetary policy tightening by the Central Bank of Nigeria, CBN, there are indications that many deposit money banks are now resorting to heavy borrowing from the apex bank to meet up with their regulatory and other liquidity obligations.

CBN’s Financial Data for February 2024 obtained by Vanguard shows that the banks’ borrowing from the CBN Standing Lending Facility (SLF) increased month-on-month, MoM, by 65.5 percent to N5.96 trillion in February from N3.6 trillion in January 2024.

The data also shows that the banks deposited N330.71 billion in the CBN’s Standing Deposit Facility (SDF) in the same period, representing a 72.4 percent MoM, decline when compared with N1.2 trillion deposited in January 2024.

This development is coming at the backdrop of the various CBN policies to prepare banks against vulnerabilities from within and outside the country.

One of the latest policies is the increase in the benchmark interest rate, the Monetary Policy Rate, MPR, to 22.75 percent from 18.75 percent and Cash Reserve Ratio, CRR, to 45 percent from 32.5 percent last week.

Analysts are of the opinion that the increase in interest rate would raise asset yields of some banks by an average of 400 bases points (bps) in the financial year end of 2024.

In their Banking Sector update report for March, analysts at Cardinal Stone Research said: “Based on the first and second-order impacts of the rise in auction stop rates and 400 basis points increase in MPR to 22.75%, we now forecast asset yields to rise by an average of 400 bps across our coverage banks in FY’24 (vs c. 150 bps in our previous communication).

“This adjustment suggests a mean 83.4 percent increase in interest income for our banking coverage.

“Whilst the discontinuation of daily CRR debits is positive, the recent decision of the MPC to raise statutory CRR to 45 percent may appear a downside risk to interest income, with direct inference suggesting that banks can now only deploy 55 percent of new deposits to interest-earning opportunities assuming other rules (such as the loan to deposit ratio) are adhered to.

“We are of the view that the surging interest rate environment may increase pressure on banks to step up on the dividend front in the coming months. This may open avenues for decent dividend income (vs de-annualized return from fixed income options) in the near term.

“In our view, adverse macroeconomic conditions are likely to increase the risk of Non performing Loans , NPLs, in FY’24 (mean of 3.7 percent across our coverage), with sectors that are heavily reliant on imported raw materials and equipment maintenances such as manufacturing likely to be badly hit by the short-term cost implications of ongoing reforms.”

[Vanguard]