Buhari accepts Finance Minister, Adeosun resignation over fake certificate - ITREALMS

ITREALMS:

Nigerian President, Muhammadu Buhari, Friday accepted the resignation of the Hon. Minister of Finance, Mrs Kemi Adeosun, over alleged certificate forgery, reports ITREALMS.

He also thanked the Minister for her services to the nation and wished her well in future pursuits, and consequently approved that the Minister of State Budget and National Planning, Mrs Zainab Ahmed, should oversee the Ministry of Finance with immediate effect.

This was confirmed to ITREALMS by Mr. Femi Adesina, Special Adviser to the President on Media & Publicity, late Friday, September 14, 2018.

ITREALMS also gathered that Mrs. Adeosun had said in her resignation letter dated same day and made available to ITREALMS, acknowledged she resigned due to alleged forged Certificate of Exemption from National Youth Service Corp (NYSC) obtained for her when she relocated to Nigeria and equally presented same as genuine, unknown to her.

While describing the revelation by media as a shock, Adeosun believed that in line with this administration’s focus on integrity, “I must do the honourable thing and resign.”

Below is the full text of Mrs Adeosun’s resignation letter.

"14th September, 2018

His Excellency

Muhammadu Buhari

President, Federal Republic of Nigeria

State House

Aso Villa

Abuja

Dear Excellency,

Let me commence by thanking you profusely for the honour and privilege of serving under your inspirational leadership. It has been a truly rewarding experience to learn from you and to observe at close quarters your integrity and sense of duty.

I have, today, become privy to the findings of the investigation into the allegation made in an online medium that the Certificate of Exemption from National Youth Service Corp (NYSC) that I had presented was not genuine. This has come as a shock to me and I believe that in line with this administration’s focus on integrity, I must do the honourable thing and resign.

Your Excellency, kindly permit me to outline some of the background to this matter. I was born and raised in the United Kingdom, indeed my parental family home remains in London. My visits to Nigeria up until the age of thirty-four (34) were holidays, with visas obtained in my UK passport. I obtained my first Nigerian passport at the age of thirty-four (34) and when I relocated there was debate as to whether NYSC Law applied to me. Upon enquiry as to my status relating to NYSC, I was informed that due to my residency history and having exceeded the age of thirty (30), I was exempted from the requirement to serve. Until recent events, that remained my understanding.

On the basis of that advice and with the guidance and assistance of those, I thought were trusted associates, NYSC were approached for documentary proof of status. I then received the certificate in question. Having never worked in NYSC, visited the premises, been privy to nor familiar with their operations, I had no reason to suspect that the certificate was anything but genuine. Indeed, I presented that certificate at the 2011 Ogun State House of Assembly and in 2015 for Directorate of State Services (DSS) Clearance as well as to the National Assembly for screening. Be that as it may, as someone totally committed to a culture of probity and accountability I have decided to resign with effect from Friday, 14th September, 2018.

Your Excellency, It has been an exceptional privilege to have served our nation under your leadership and to have played a role in steering our economy at a very challenging time. I am proud that Nigeria has brought discipline into its finances, has identified and is pursuing a path to long term sustainable growth that will unlock the potential in this great economy. Under your leadership, Nigeria was able to exit recession and has now started to lay the foundations for lasting growth and wealth creation. Repositioning this huge economy is not a short term task and there are no short cuts, indeed there are tough decisions still to be made but I have no doubt that your focus on infrastructural investment, revenue mobilisation and value for money in public expenditure will deliver growth, wealth and opportunity for all Nigerians.

I thank His Excellency, the Vice President and my colleagues in the Federal Executive Council for the huge pleasure and honour of working with them. I also thank most specially, the team in the ‘Finance Family’ of advisers and heads of agencies under the Ministry of Finance. Your Excellency, this group of committed Nigerians represent a range of backgrounds, ethnicities and ages. They have worked well above and beyond the call of duty to support me in the tasks assigned. The diversity in my team and their ability to work cohesively to deliver reforms, convinces me that Nigeria has the human capital required to succeed.

Your Excellency, let me conclude by commending your patience and support, during the long search for the truth in this matter. I thank you again for giving me the honour of serving under your leadership, it is a rare privilege, which I do not take for granted. As a Nigerian and committed progressive, I appreciate you for your dogged commitment to improving this nation.

Please be assured, as always, of my highest regards and best wishes

Kemi Adeosun (Mrs)"

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Adeosun goes to World Bank spring meeting with reform agenda

ITRealms:

The Honourable Minister of Finance, Kemi Adeosun, is in Washington DC, United States, this week for the World Bank and IMF Spring Meetings with reform agenda of the federal government, reports ITRealms.

The Minister is participating in a range of events focused on different aspects of the Federal Government’s economic reform agenda, calling Calls for greater African and international collaboration on illicit financial flows to drive accelerated revenue growth and improved government efficiency.

At her opening event on Monday, she gave an address to the Global Parliamentary Conference, alongside parliamentarians from around the world, focused on Nigeria’s economic reform agenda and the need for strong executive and legislative collaboration.

In her address to senior representatives from the World Bank and IMF, as well as over 150 parliamentarians the Minister called for greater focus on collaboration in illicit financial flows from Africa as a core pillar of the government’s strategy to significantly enhance domestic government revenue and deliver sustainable economic growth.

“The government is focused on resetting the Nigerian economy by addressing our traditional over-reliance on oil revenues and establishing the basis for sustainable non-oil revenue growth. To improve non-oil revenues, we have to address illicit capital flows. When stolen money is transferred from Nigeria, or other African countries, there are too few questions asked by those countries that receive the funds, but when we identify those funds as stolen and seek to recover them, there are too many questions being asked,” she said.

According to her, “There is money sitting in foreign bank accounts that we have spent over a decade trying to recover. That is money that could deliver significant value for Nigeria as we seek to increase spending on critical infrastructure and establish a basis for long term sustainable growth. I hope that the Automatic Exchange of Information scheme coming into force next year will be a step towards achieving greater transparency, but we need more collaboration amongst parliamentarians in Africa, and across the World to ensure that this situation improves and that recipient countries are held to account.”

Commenting further, she said that FG is going after those who have stolen money. 

"We have put in place a very successful whistle blower programme that is delivering results, and allows those who report illicit activity to receive up to 5% of any funds that we recover. We are also significantly improving our financial management controls to ensure that it is considerably more difficult for public funds to be diverted. We have to do more though and that means collaboration with the legislature. We need tighter tax and financial reporting legislation and to ratify bilateral agreements so that our enforcement agencies are empowered to deliver the results that we need” she declared.

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Paris Club refund disbursement, transparent – Adeosun

ITRealms:

The Minister of Finance, Mrs. Kemi Adeosun, has reiterated that disbursement of the Paris Club refunds is transparent, reports ITRealms.

Clarifying the seeming misunderstanding on the disbursement pertain, Adeosun, insisted that the Federal Government has consistently complied with all extant rules and regulations in the disbursement of the Paris Club refunds to State Governments.

“The Federal Government's disbursement process is transparent and targeted at the attainment of specific  economic objectives. The inability of some sub-national governments to meet salary and other obligations was considered inconsonant with the Federal Government’s economic stimulus programme.   Claims with regard to over deductions had been made to the Federal Government, consistently since 2005,” she said.

According to her, the Debt Management Office (DMO) initially requested for a period of 22 months to complete the reconciliation and facilitate disbursement.

She also said that however, President Muhammadu Buhari, considering the plight of salary earners and pensioners and the need to stimulate the economy, directed that the exercise be completed within 12 months.

The media adviser to Ministry of Finance, Mr. Festus Akanbi in a press statement made available to ITRealms, quoted Mrs. Adeosun as saying that Mr. President, Muhammadu Buhari, gave an express Anticipatory Approval for the release of  up to 50 per cent of the claim of each state, pending  final reconciliation.

“That reconciliation is undertaken by the DMO, Office of the Accountant General of the Federation (OAGF) and the relevant State Governments. Accordingly, the disbursements are staggered in batches and payments are only made when the claims of each state have been reconciled with the facts at the disposal of the Federal Government,” she said.

ITRealms recalls that specifically, information was available that some states had been paid either in full or in part, under previous administrations, which necessitated a more detailed review, for the states in question.

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Adeosun reiterates FG resolve on infrastructure development to drive economic growth

ITRealms:

The Minister of Finance, Mrs. Kemi Adeosun has reiterated the Federal Government resolve that infrastructure development will drive economic growth, thereby creating jobs and wealth, reports ITRealms.

Speaking at the United Capital launch of its Eurobond and Wealth for Women Funds, Thursday, Adeosun said that infrastructure development will play a fundamental role in unlocking Nigeria’s economic potential, laying a foundation for economic competitiveness and long-term future growth.

She stated that Investment in critical infrastructure across the country will unlock job and wealth creation and strengthen economic development across all States in Nigeria.

Other speakers represented at the event included Tony O. Elumelu, Chairman of Heirs Holdings, Toyin Saraki, Wife of the Senate President, and Erelu Bisi Fayemi, President, African Women's Development Fund.

While speaking on the outlook for the Nigerian economy, the Minister noted that the Government is committed to increasing capital spend on critical infrastructure across key areas; power, rail, roads and water which will underpin growth in priority sectors especially Agriculture and Agro-Allied, Solid Minerals, Manufacturing, and Power. “We will now target 30% of Government expenditure on infrastructure, up from 10 per cent”.

According to her, the Federal Government will mobilise private capital to complement Government spending on infrastructure.

“We recognise that Government spending alone will be inadequate to bridge the infrastructure gap and we have started engaging the private sector through our housing fund and the road trust fund for which fundraising is in progress” she said.

Further Adeosun explained that the Government’s debt strategy is an essential part of this process. 

“Today, our debt profile is un-balanced. We borrow heavily domestically, with too short a tenure, and at a high cost. The impact of this is that we spend too much on interest and we crowd out the private sector from borrowing to fund their investment plans. This debt structure does not support our long term growth ambitions, and so it must be amended. We need longer term and cheaper finance to support the infrastructure investments we must make” she declared.

Maintaining that FG expects infrastructure development to underpin the return to inclusive and sustainable growth in Nigeria

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Obasanjo turns economist, endorses Adeosun economic agenda

ITRealms:

The former President Olusegun Obasanjo has turned an economist with his endorsement of Minister of Finance, Mrs. Kemi Adeosun despite increasing recession bites and clamour for her removal from the Minister, reports ITRealms.

Speaking Tuesday at the ongoing National Council on Finance and Economic Development (NACOFED) in Abeokuta, Ogun State, Obasanjo expressed optimism that things will soon be better in the country, and said that Mrs. Adeosun is steering the economy at a difficult period, saying time will soon prove her right.

"I want to specially acknowledge the efforts of the Minister of Finance not because she is an Ogun State citizen, but because she is doing a marvellous job in a difficult environment. You are too close to what is happening now to be proved right, but time will soon prove you right," he declared

Also speaking, the Minister of Finance, Mrs. Kemi Adeosun reiterated the resolve of the present administration to use the opportunity created by the current economic challenges to put the economy right structurally once and for all in setting this nation back on the right path.

Giving the keynote address at the event opening said "Underperformance can no longer be tolerated as the oil revenues that insulated us from the impacts of this consistent underperformance are no longer available."

The current administration, she said, has set out a robust plan to reposition our economy to ensure that what we are experiencing today will never recur in the history of our nation.

She disclosed that the Federal Government realises the fact that Nigeria’s size, national endowments, population and future needs demand that this economy perform at its optimal potential which it has yet to do in its 55 plus years of independence.

Adeosun explained that the drive for the economic turnaround is being led by the effective management of public money which will act as a magnet for the mobilisation of private capital.

"We have committed to changing Nigeria from an economic model that was driven by consumption to one that is driven by investment. We recognize that in the short term this is causing a dislocation as we redirect funds from recurrent day to day expenditure to the much needed capital investment that will drive our economic future. Nigeria’s vast economy can only be productive and profitable when it has the enabling infrastructure needed to unlock its much vaunted potential. Our economic plans will provide the link between our potential and our future," the Minister said.

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Pix: Obasanjo speaking

Why FG cancelled Export Grant - Adeosun

ITRealms:

The Minister of Finance, Mrs. Kemi Adeosun has offered some explanation why the Federal Governemnt (FG) under the previous administration of President Goodluck Jonathan, cancelled the Export Grant, saying it was grossly abused, reports ITRealms.

Speaking during a visit by the leadership of the Nigerian Economic Summit Group, (NESG) led by the chairman Mr. Kwari Bukar and Chief Executive, Mr. Laoye Jaiyeola, said that the government justified the stopped the policy on Export Grant due to serious abuse.

While responding to the explanation sought by NESG on the current status of Export Grant, the Minister stated that although her predecessor in office halted the implementation of the policy, she believed the decision was in order going by harvests of startling revelations on the abuse of export grant.

“On paper, why will you cancel Export Grant? The EG is set up to encourage export business.

However, in a situation, where we do not have control, we open up doors for the kind of abuse, which are only imaginable. We have people exporting stones, describing them as high valued goods, collecting an import credit and using that to import fish.

“We do need to look for how to support export, but we have to be very realistic in the recommendations we are coming up with," Adeosun said.

Chuks Egbune/GEE

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Pix: L-R: Minister of Finance, Mrs. Kemi Adeosun; Chairman, Nigerian Economic Summit Group (NESG), Mr. Kwari Bukar and the group’s Chief Executive, Mr. Laoye Jaiyeola during a courtesy visit of the NESG team to the Minister in Abuja on Thursday.

Why FG opted for conservative borrowing - Adeosun

ITRealms:

The Federal Government of Nigeria has explained why it opted for conservative borrowing so as invest in infrastructure to facilitate growth of the economy, according to the Finance Minister, Mrs. Kemi Adeosun, reports ITRealms.

Speaking Tuesday, she explained that the Federal Government opted for a conservative borrowing plan to fund the critical sectors of the economy and to ensure that future generation is not saddled with the burden of debt payment.

The Minister, who described borrowing as inevitable in view of the current realities in the nation’s economy, spoke at a town hall meeting/policy dialogue for good governance organised by the Alumni Association of the National Association of the National Institute of Policy and Strategic Studies, in conjunction with the Federal Ministry of Information and Culture in Abuja.

A press statement by the Special Assistant on Media to Honourable Minister of Finance, Mr. Festus Akanbi, to ITRealms said that other ministers at the event included those of Information and Culture, Lai Mohammed; Solid Minerals, Kayode Fayemi; Power, Works and Housing, Babatunde Fashola; Environment, Amina J. Mohammed; Agriculture, Audu Ogbeh, Health Prof. Isaac Folorunso Adewole and the Foreign Affairs Minister, Mr. Geoffrey Onyeama.

Stressing the urgent need to fund infrastructure, Adeosun said “We have to invest in our infrastructure to allow the private sector to thrive which will create jobs and unlock the economy.

We have to adopt a very conservative borrowing programme but we must borrow because for us to do rail, we need funds with other needed infrastructure we need funds.”

The Minister pointed out that some of the existing rail lines in Nigeria were constructed during the colonial era, which has to be massively upgraded and brought into the 21st century.

According to her, such investment will trickle down to the people through its impacts on agriculture, rail and solid minerals.

She stated, “The rail we have now was done in the colonial era. There was no significant upgrade. We need to urgently do rail for agriculture and solid minerals to be competitive, so I really don’t see any option than to borrow but we will borrow sustainably; we will borrow conservatively to make sure we don’t burden future generation. 

In the past, Nigeria had been borrowing to pay salaries but now we are borrowing to invest. When you borrow to invest, there is an expectation that there will be additional revenue that will service those borrowings.

We will borrow as cheaply as possible and that is why we are approaching the World Bank and Export Credit Agencies to provide concessionary loans. We are taking concessionary loans before going for commercial loans.”

Speaking about the nature of the public service inherited by the current administration, Adeosun stated, “We inherited 1.2million public servants with a wage bill of N165 billion per month. You can’t send people away. What we can do is to build controls to make sure these people exist and are validly working to earn their wages which is why we are carrying out continuous audit which has revived our huge bills by N6billion per month. 

  

The Minister believed time had come to focus on capital funding.  She said, “We had to attack the problem of recurrent expenditure. When we came in, over N165billion went on salary. As we speak, we have reduced it to N159 billion.

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NERFUND crisis resolved: Adeosun orders staff back to work

ITRealms:

The Minister of Finance, Mrs. Kemi Adeosun has ordered all staff of the National Economic Reconstruction Fund (NERFUND), to immediately return to their duty posts as the crisis within the organisation has been resolved, ITRealms reports.

NERFUND, ITRealms  recalls, were directed in a circular signed by the Permanent Secretary, Federal Ministry of Finance, Dr. Mahmoud Isa-Dutse on June 15, 2016,   to stay away from work to forestall further breakdown of law and order as a result of disputes between the Executive Management, Senior Management and other staff of the organisation.

The National Economic Reconstruction Fund (NERFUND) was established in 1989 to provide medium to long-term financing to viable Small and Medium scale production enterprises to increase the quantity of goods and services available for local consumption and export, provide needed employment, expand our production base and add value to the economy.

Director of Information at the Ministry in a press statement available to ITRealms, Salisu Na’Inna Dambatta, noted that the Fund so far extended credit facilities for 2,829 projects valued N9.5 billion between 1989 and 1999.

He also pointed out that all Nigerians are qualified to apply for NERFUND loans, either as individuals, associations, cooperatives or corporate entities as well as partner institutions.

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