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SERAP Asks State Governors, Wike to Disclose Details of Chinese Loans

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Socio-Economic Rights and Accountability Project (SERAP) has asked Nigeria’s 36 state governors and Nyesom Wike, minister of the Federal Capital Territory, to provide detailed information regarding any Chinese loans and other external borrowings obtained and guaranteed by the Federal Government.

SERAP Asks State Governors, Wike to Disclose Details of Chinese Loans

In a statement released over the weekend, SERAP urged the governors and the FCT minister to disclose the full terms and conditions of these loans, including provisions on collateral, interest rates, repayment obligations, and any incidents of defaults or debt restructuring.

SERAP urged them to “provide details of the repayment obligations regarding any Chinese loans, liabilities and other external borrowing obtained and guaranteed by the Federal Government, the interest rates on the loans, and any defaults, debt restructurings, and debt exposure to China and other creditors.”

SERAP also urged them to “clarify any investment agreements with Chinese companies and repayment histories of any loans, liabilities and facilities obtained from China and other external creditors and guaranteed by the Federal Government.”

In the letters dated August 24, 2024 and signed by Kolawole Oluwadare, SERAP deputy director the organisation said: “We are concerned that your state and the FCT may have failed to efficiently manage your debt obligations, especially your external debt and investment obligations, as guaranteed by the Federal Government.”

According to SERAP, “The failure to uphold your obligations is contrary to Section 6 of the Debt Management Office Establishment (Etc), Act, and creates financial risks and other exposure to Nigeria with respect to these Chinese loans, liabilities and other external borrowing.”

SERAP said, “These Chinese loans, liabilities and other external borrowing by your state and the FCT may not have been used for the purposes for which they have been obtained and terms and conditions guaranteed by the Federal Government.”

The letters, read in part: “SERAP is concerned that there is a significant risk of defaults of the Chinese loans, liabilities, and other external borrowing by your state and the FCT, which are guaranteed by the Federal Government.”

“There are also significant risks of confiscation of Nigerian assets in foreign jurisdictions by multilateral and bilateral agencies and other creditors in cases of failure by your state and the FCT to satisfactorily observe and fulfil the terms and conditions of the Chinese loans, liabilities and other external borrowing which are guaranteed by the Federal Government.”

“The apparent inadequacy of safeguards and accountability mechanisms for these Chinese loans, liabilities and other external borrowing may also expose Nigeria’s assets in foreign jurisdictions to confiscation.”

“Your state and the FCT have a shared obligation to ensure that the spending and repayment plans of Chinese loans, liabilities, facilities and other external borrowing are consistent with the provisions of national and international standards, and to prevent or mitigate risks of confiscation of Nigerian assets abroad.”

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government and the FCT to comply with our request in the public interest.”

“Despite several external loans, liabilities, investment obligations and external borrowing obtained by your state and the FCT, which are guaranteed by the Federal Government over many years, millions of Nigerians in your state and the FCT continue to lack access to regular electricity supply and have been denied the benefit of renewable energy solutions.”

“A recent report by the National Bureau of Statistics (NBS) revealed that over 133 million Nigerians are living in different categories of poverty, the majority of them women and children.”

“SERAP is seriously concerned that many of the country’s 36 states and FCT are allegedly mismanaging public funds which may include Chinese loans, liabilities and other external borrowing obtained from bilateral and multilateral institutions and agencies and guaranteed by the Federal Government.”

“We urge you to disclose the spending details of these Chinese loans, investment obligations and external borrowing, including details of and locations of projects as well as the implementation status and completion reports, if any, on the projects.”

“According to Nigeria’s Debt Management Office, the total external debt for Ogun State is N168,833,006.66 as at December 31, 2023. The total public debt portfolio for the country’s 36 states and the Federal Capital Territory is N9.17 trillion.”

“Nigeria’s total public debt stock, including external and domestic debts, increased by ₦24.33 trillion in three months alone, from ₦97.34 trillion ($108.23 billion) in December 2023 to ₦121.67 trillion ($91.46 billion) as of March 31, 2024. The debt represents external and domestic loans obtained by the Federal Government, the 36 state governments and the FCT.”

“SERAP notes that the World Bank has approved several loans and other funding facilities to the country’s 36 states including the recent $750 million credit line meant to the states to carry out reforms to attract investment and create jobs.”

“The World Bank on 15 December 2020 approved a $1.5 billion loan for Nigeria’s 36 states and the FCT for social protection and strengthened state-level COVID-19 response. The loan aims to help the states build a resilient recovery post-COVID19 and to reduce poverty.”

 

“SERAP is concerned that the Chinese loans and other external borrowing obtained by your state and guaranteed by the Federal Government are vulnerable to corruption and mismanagement.”

“Publishing details of the Chinese loans, liabilities, investment obligations and other external borrowing obtained by your state and the FCT which are guaranteed by the Federal Government would allow Nigerians to scrutinise them.”

“Section 39(1) of the Nigerian Constitution 1999 [as amended], section 44 of the Fiscal Responsibility Act and article 9 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party impose legal obligations on your state and the FCT to disclose the details sought.”

“Section 41 of the Fiscal Responsibility Act provides: ‘1) The framework for debt management during the financial year shall be based on the following rules: a. Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low interest rate and with a reasonable long amortization period subject.’”

“Section 44 of the Fiscal Responsibility Act provides: ‘1) Any Government in the Federation or its agencies and corporations desirous of borrowing shall, specify the purpose for which the borrowing is intended and present a cost-benefit analysis, detailing the economic and social benefits of the purpose to which the intended borrowing is to be applied.’”

“According to section 21(1)(2) of the Debt Management Office Establishment (Etc), Act, ‘No external loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by, its resolution. (2) The Federal and State Government or any of their agencies shall not obtain any external loan except with a guarantee issued by the Minister.’”

 

 

 

 


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Tinubu Did Not Ask Cardoso, CBN Governor to Resign – Presidency

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President Bola Tinubu has not asked Yemi Cardoso to resign from his position as the governor of the Central Bank of Nigeria (CBN), according to Bayo Onanuga, special adviser to the President on Information and Strategy.

Tinubu Did Not Ask Cardoso, CBN Governor to Resign – Presidency

Onanuga, taking to his official X handle on Tuesday, debunked reports suggesting that Tinubu ordered Cardoso’s resignation and described the report as a “bundle of lies.”

“It’s all lies. President Tinubu has not asked Yemi Cardoso to resign,” Onanuga said while dismissing the report.

The report claimed that President Tinubu issued the directive to Cardoso before departing for China, despite efforts by influential Yoruba leaders to keep him in the position.

Cardoso has faced criticism for his inability to address the ongoing economic challenges and stabilise the Naira.

A seasoned economic and development policy advisor, he was nominated by President Tinubu on September 15, 2023, and assumed office as CBN Governor on September 22, 2023.

He and his deputies were cleared by the National Assembly days before he took over from Folashodun Shonubi, acting CBN governor.

 

 


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UK Announces £1.9m Sankore Project for Science, Tech & Innovation in West Africa

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UK government’s West Africa Research and Innovation Hub (WARIH) has launched Sankore to support economic growth by strengthening technology and innovation across West Africa, in close partnership with country governments.

UK Minister for Africa, Lord Collins - today in Accra

Lord Collins, UK Minister for Africa

UK Minister for Africa, Lord Collins announced the call for creative proposals for the project from non-profit organisations (including UN Agencies) at a press conference today, 17th September 2024, in Accra.

The Sankore call for proposals will support the UK government’s partnership with Government in Nigeria and Ghana on science, technology and innovation, facilitate commercialisation of innovative solutions, improve innovation policy and enhance government digital service delivery.

Named after a West African medieval center of learning, Sankore will establish new partnerships worth up to £1.9 Million with non-profit organisations (including UN agencies) in Ghana or Nigeria.

At the launch for call for proposals, UK Minister for Africa, Lord Collins, said: “This initiative is all about how we can work together to strengthen the global technology sector, creating opportunities for rapidly growing economies with lots of potential to compete on the world stage.

“The Sankore grant fosters partnerships at its heart, with a strong message that we go far when we go together.”

Nigeria’s Minister of Innovation Science and Technology, Uche Nnaji said: “Sankore project is a pivotal opportunity for Nigeria to enhance its innovation landscape, by strengthening industry-science linkages and developing an enabling policy environment.

“This partnership underscores our shared commitment to developing practical solutions that lead to sustainable and inclusive growth.”

Also commenting, the British Deputy High Commissioner in Lagos, Jonny Baxter, said: “Sankore exemplifies the UK’s commitment to driving innovation and sustainable development in Nigeria.

“The project will strengthen partnerships between businesses and innovators as well as drive the development of innovative solutions that address critical gaps in priority economic sectors.

“The project will build on the UK’s wider efforts to support economic growth, create job opportunities and propel Nigeria’s technology and innovation ecosystem.”

How to Apply:

Interested and qualified organisations and partners are encouraged to visit Sankore call for proposals: strengthening innovation and technology across West Africa – GOV.UK (www.gov.uk) to learn more and apply.

Deadline for submissions is 25th October 2024, 12pm WAT.


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CIPM Explains Allegations on Virtual Exam Processes, Emphasizes Commitment to Excellence

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The Chartered Institute of Personnel Management of Nigeria (CIPM) has provided a transparent account of the process and measures taken to ensure the success of its virtual examinations, saying the allegations surrounding its recently concluded virtual examination are totally unfounded.

CIPM’s Commitment to Professional Excellence

CIPM is committed to providing a seamless and professional examination experience for all candidates. As the first professional body in Nigeria to introduce virtual examinations during the global COVID-19 pandemic, we have consistently worked to adapt, improve, and innovate within this space.

During the Institute’s September 2024 diet, 4,169 candidates were scheduled for the tests, out of which 4,049 candidates (97.12%) sat for the test as scheduled. Furthermore, 4,006 candidates representing 98.94% of those who sat for the test successfully submitted their exams.

The 2.88% of candidates not tested either failed accreditation or were absent. It is important to note and emphasize that candidates who failed accreditation or experienced technical issues were promptly advised and rescheduled for another examination at no additional cost to them.

Addressing Accreditation and Submission Failures

Accreditation and submission failures are not uncommon in virtual examinations and can be caused by various factors, including incorrect computer specifications, poor internet connectivity, and even computer literacy challenges.

CIPM, in collaboration with its technical partners, continue to work tirelessly to provide guidance and support to candidates experiencing such challenges, ensuring they are accommodated and rescheduled promptly.

In response to the challenges encountered by some candidates during the September 13, 2024, exam session, CIPM to address these challenges, extended the test window from the initial 12:00 PM until 6:00 PM, allowing ample time for students experiencing network difficulties to complete their exams. All affected candidates were duly informed of this extension.

Technical Support and Continuous Improvement

CIPM recognizes that the virtual exam experience is a collaborative effort involving various stakeholders, including technical partners like Dragnet, the IT company responsible for administering our exams.

While technical issues may arise in such a setup, it is essential to highlight that CIPM actively works with all relevant parties to address concerns promptly. We have always taken the concerns of our candidates seriously, and any technical challenges are met with proactive solutions.

Addressing Concerns of Fraud and Examination Integrity

Allegations suggesting exploitation or fraudulent intent are baseless as they are unfounded. At no point has CIPM charged candidates for rescheduled exams due to technical failures.

Our rescheduling process is transparent, fair, and free of charge to those affected by genuine technical difficulties. CIPM’s commitment to integrity remains firm, and we maintain rigorous standards in ensuring that our examinations are conducted fairly and transparently.

The Institute’s examination process is guided by ISO 17024, so we are required to embed measures which ensure fairness, equity and transparency in the online examination process. Part of the measures put in place is a remote proctoring system which records candidates’ activities end-to-end, all through the examination process.

There are processes for reviewing and taking actions on the proctoring reports. Also, all computer systems without the facilities to support the remote proctoring system cannot pass accreditation and therefore are unable to access examination questions. All cases of breach of process among the accredited candidates are seriously dealt with in line with the requirements of the global standards.

CIPM Leading the Way in Virtual Examinations

CIPM as a pacesetter is proud to have set a standard and benchmark in the conduct of professional examinations in Nigeria by leading the transition to virtual examinations.

Many other institutes have since followed our lead, recognizing the benefits of virtual platforms for professional certifications. Despite the challenges, CIPM remains steadfast in its commitment to delivering high-quality examinations that meet global standards.

Looking Ahead

CIPM is dedicated to continuous improvement and innovation. We will continue to work with technical partners and stakeholders to enhance the examination experience and ensure it meets the expectations of our candidates.

Our values of Service, Creativity, Integrity, Professionalism and Teamwork guides us in all our endeavors as we strive to advance in our certification journey.

We appreciate the feedback from our stakeholders and are committed to addressing any concerns. CIPM will always act in the best interests of our candidates and the broader HR profession.


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