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Wike Hails Judiciary Over Victory On PTF Case …Court Declares Deduction From Federation Account Unconstitutional

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Rivers State Governor, Chief Nyesom Wike has hailed the Federal High Court in Abuja for its judgement, last Wednesday, which barred the Federal Government from deducting funds from the Federation Account to fund the Nigeria Police Force and other agencies not listed in the Constitution.
He said the Nigeria Police Trust Fund Act which the Federal Government relied on to deduct funds from the Federation Account was in contravention of the 1999 Constitution.
Wike, who spoke to journalists shortly after returning from Germany where he undertook a tour of the Rivers State Government’s Legacy 600 plane that had been parked in the European country for 10 years, described the judgement by Justice Ahmed Mohammed as a victory for democracy.
The Rivers State Government had filed a suit to stop the Federal Government from deducting the funds for the Nigeria Police Trust Fund Scheme.
According to Wike, it was wrong for the government to have conceived the idea of deducting the funds because funding the police was a responsibility of the Federal Government.
He added that states should be allowed to decide on how and when to support the police, but not to make it an arbitrary deduction.
The governor also thanked his legal team for a job well done, saying that his administration was not afraid of an appeal.
“For me, it is a victory for democracy. And I have always told people, it is not whether you must win or not, but it is a matter of when you see issues that you think are in contravention of our Constitution and other laws, there is nothing wrong for you to challenge it, so that the right thing can be done.
“After all, if the money is given back to us, we can still, on our own, say police; we want to support you with this. But not the Federal Government arbitrarily deducting our money from the Federation Account and putting it into Police Trust Fund. I don’t think that that is right, and I thank God that, today, the court has made a clear pronouncement on it.”
The governor acknowledged that though the National Assembly was constitutionally empowered to enact laws, in enacting the Police Trust Fund Act, they went beyond their powers by contravening the provisions of the Constitution of Nigeria.
Speaking further on the order of the court that the state government should be refunded the money deducted from its share to fund the police, Wike said the order would put an end to impunity.
“We are happy that the court has said that they should refund us all the money deducted, and luckily, the principal parties, Revenue Mobilisation, Allocation and Fiscal Commission, the Accountant General, Attorney General Office they are all involved in the case.
“It is not about Rivers State, but it is about the impunity, it is about the violation of the Constitution as if anybody can wake up one early morning and just decide to do one or two things, which is wrong. I am happy that the decision we took, we are not wrong, and I thank my legal team.”
Earlier, a Federal High Court sitting in Abuja had declared as unconstitutional the Federal Government’s deduction of funds directly from the Federation Account to fund the Nigeria Police Force (NPF) in line with Section 4(1)(a) and (b) of the Nigeria Police Trust Fund (Establishment) Act 2019.
Justice Ahmed Mohammed made the declaration while delivering judgement suit No: FHC/ABJ/CS/511/2020 filed by the Rivers State Government against the Attorney General of the Federation (AGF), Accountant General of the Federation, Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) and the Minister of Finance, last Wednesday.
Mohammed asserted that the provisions of Section 4(1)(a) and (b) of the Nigeria Police Trust Fund (Establishment) Act 2019, that requires the Federal Government to deduct 0.05per cent of any funds in the Federation Account and 0.005per cent of the net profit of companies operating in the country to fund the police are unconstitutional.
The judge said the provisions of Section 4(1) (a) and (b) in the Nigeria Police Trust Fund Act are inconsistent to the provisions of Section 162(1) and (3) of the 1999 Constitution as amended, which explicitly state that the payment of total revenue collected by the Government of the Federation, including levies and taxes, must be paid into the Federation Account for sharing among the three tiers of government.
Mohammed said the court agreed with Rivers State Government’s contention that, by virtue of Section 162 (3) of the Nigerian Constitution, funds standing to the credit of the Federation Account “can only be distributed among the Federal, State and Local Governments in each state of the federation and not directly to any agency of the Federal Government, including the Nigeria Police Force.”
He said by the provision of Section 162(3) of the Constitution, no other entity, outside the three tiers of government is entitled to partake in the sharing of funds standing to the credit of the Federation Account.
Based on this, he said the provisions of Section 4(1) (a) and (b) in the Nigeria Police Trust Fund Act are at variance with the provision of Section 162(3) of the 1999 Constitution as amended.
Mohammed stated that since the police was an agency of the Federal Government, it was the duty of the Federal Government to establish and maintain the Nigeria Police Force, and not the states.
He ordered the Federal Government to refund to the Rivers State Government its share of the funds from the Federation Account that had been illegally deducted since it commenced the deduction of funds based on the provisions of Section 4(1) (a) and (b) in the Nigeria Police Trust Fund Act.
Mohammed also granted reliefs 1, 2, 3, 4, 5 and 7 as prayed by the plaintiff, and in respect of reliefs 6 and 8, that relate to refund, the judge said they should apply to Rivers State.
The trial judge, meanwhile, declined to grant similar order of refund to the other 35 states on the ground that they were not parties in the suit.
According to him, Rivers State, as the plaintiff in the suit, did not file it on behalf of other states.

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Tinubu Orders Security Chiefs To Restore Peace In Plateau, Benue, Borno

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President Bola Tinubu has ordered a security outreach to the hotbeds of recent killings in Plateau, Benue and Borno States, to restore peace to areas wracked by mass killings and bomb attacks.
National Security Adviser, Nuhu Ribadu, disclosed this to State House correspondents after a four-hour security briefing with the President at the Aso Rock Villa, Abuja on Wednesday.
“We listened and we took instructions from him. We got new directives…to go meet with the political authorities there,” Ribadu told reporters, adding that Tinubu directed them to engage state-level authorities in the worst-hit regions.
Director-General, National Intelligence Agency, Mohammed Mohammed; Chief Defence Intelligence of the Nigerian Army, Gen. Emmanuel Undianeye; Director-General, Department of State Services, Oluwatosin Ajayi and Chief of Staff to the President, Femi Gbajabiamila, appeared for the briefing.
The Tide’s source reports that in Plateau State, inter-communal violence between predominantly Christian farmers and nomadic herders spiralled into gory slaughter when gunmen stormed Zikke village in Bassa Local Government early on April 14, killing at least 51 people and razing homes in a single night.
In Benue, at least 56 people were killed in Logo and Gbagir after twin assaults blamed on armed herders.
Meanwhile, in Borno State, eight passengers perished and scores were injured when an improvised explosive device ripped through a bus on the Damboa–Maiduguri highway on April 12.
Ribadu explained that after an extensive briefing, intelligence chiefs received fresh instructions to restore peace, security and stability across Nigeria.
“In particular, Tinubu had ordered immediate outreach to the political authorities in Plateau, Benue and Borno States, and the defence team had gone round those States to carry out his directives and report back.
“We gave him an update on what has been the case and what is going on, and even when he was out there, before coming back, he was constantly in touch. He was giving directives. He was following developments, and we, in charge of the security, got the opportunity today to come and brief him properly for hours. And it was exhaustive.
“We listened and we took instructions from him. We got new directives. The fact is, Mr. President is insisting and working so hard to ensure that we have peace, security and stability in our country. We gave him an update on what is going on, and we also assured him that work is ongoing and continues.
“We also carried out his instructions. We went round, the chiefs were all out where we had these incidents of insecurity in Plateau State, Benue State, even Borno, these particular three states, and we gave him feedback, because he directed us to go meet with the political authorities there,” the NSA explained.
Ribadu described Tinubu as “worried and concerned,” and said he directed that all security arms be deployed around the clock.
The government, he added, believes these steps have already produced measurable improvements, even if the situation is not yet 100 per cent safe and secure.
“He’s so worried and concerned, he insisted that enough is enough, and we are working and to ensure that we restore peace and security and all of us are there. The armed forces are there, the Civil Police, intelligence communities, they are there.
“They are working there 24 hours, and we feel that we have done enough to believe that we are on the right course, and we’ll be able to be on top of things,” Ribadu stated.
The NSA emphasised that combating insecurity was not solely a Federal Government responsibility.
He stated, “The issue of insecurity often is not just for the government. It involves the subunits. They are the ones who are directly with the people, especially if some of the challenges are more or less bordering on community problems.
“Not entirely everything is that, but of course it also plays a significant role. You need to work with the communities, the local governments, and the governors, especially the governors.
“The President will continue to direct that. We should be doing that, and that’s what we are able to. We are very happy and very satisfied with the instructions and directives given by Mr. President this evening.”
In Borno State, the NSA noted that while violence had surged in recent months, the insurgents refused to accept defeat.
He warned that most recent casualties there resulted from improvised explosive devices—”cowardly” IED attacks targeting civilians—and from opportunistic raids that follow any lull in fighting.
“We are getting the cooperation of the leadership at the state level, and everybody. It’s not 100 per cent…but we are going there.
“When you are having peace and you are beginning to get used to it, if one bad incident happens, you forget the periods that you enjoyed peacefully,” he added.
He paid tribute to the “many who do not sleep, who walk throughout, who do not go for any break or holiday”—the soldiers, police and intelligence officers whose sacrifices have created the fragile calm Nigerians now experience.
“They will continue to be there,” he said, adding, “Things have changed in this country…we are on the right track and we will not relent. We will not sit down; we will not stop until we are able to achieve results.”

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FG Laments Low Patronage Of Made-In-Nigeria Products

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A Federal Government agency – the National Agency for Science and Engineering Infrastructure, has decried the low patronage of Nigerian-made products by Nigerians.
The agency identified some challenges leading to the low patronage of the local products as affordability and public perception, among others.
Speaking during a stakeholders meeting organised by the agency in Akure, Ondo State capital, yesterday, the Deputy Director of Engineering at NASENI, Mr Joseph Alasoluyi, said Nigerians preferred buying foreign goods compared to local goods.
Alasoluyi, however disclosed that the agency had trained over 50 participants in the production of hand-made products, in a bid to ensure Nigeria-made products are patronised.
He explained that NASENI was set up to promote science, technology, and engineering as a foundation for Nigeria’s development and currently operates 12 institutes nationwide to achieve its objectives.
According to him, the aim of President Bola Tinubu, who is also the overall chairman of NASENI, was to ensure high production and patronage of “our local products thereby creating employment opportunities for many.”
He said, “The idea of this programme is to interface to ensure we produce products using our indigenous technology. This is what NASENI is out for, to ensure that homegrown technologies are encouraged.
“We are out there to ensure we integrate efforts to ensure that local technology is used to develop products within the resources we have.
“ The NASENI’s ‘3 Cs’ – Creation, Collaboration, and Commercialisation – that define NASENI’s strategic mandate: Creating innovations through research, Collaborating with partners to develop and refine products, and Commercialising these solutions to benefit the economy.
“Our achievements include the development of solar irrigation systems, CNG conversion centres, building machines capable of producing up to 1,000 blocks per hour, 10-inch tablets, locally made laptops, and electric tricycles (Keke Napep) set for market launch.”
In his remarks, the Deputy Vice Chancellor of the Federal University of Technology, Akure, Prof. Samuel Oluyamo, blamed the Federal Government for not properly funding research in the varsities, also noting that many research outputs were left halfway due to lack of funding and weak linkages between research institutions and industry.
Oluyamo also queried the Federal Government’s commitment to funding research and development, saying many academic innovations remained on the shelve due to a lack of support for commercialisation and poor infrastructure.
“Until we upscale research into mass production, technological growth will remain elusive. The government is not funding research in the universities enough. Thank God for TETfund that is trying in this regime. The major interest in beefing up research in universities and research institutions is really not there,” he said.

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Nigeria Seeks Return To JP Morgan Bond Index

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The Director-General of the Debt Management Office, Patience Oniha, has said that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index and renew investors’ confidence.
Oniha disclosed this on Wednesday at a Nigerian Investors’ Forum on the sidelines of the World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
The DMO boss explained that Nigeria has enjoyed favourable credit assessment among rating agencies in recent times on the back of the sweeping reforms initiated by the Central Bank of Nigeria.
Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings of seven Nigerian banks and two bank holding companies to ‘B’ from ‘B-‘, noting that the outlooks are Stable.
The affected issuers are Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Limited, Guaranty Trust Holding Company Plc, First HoldCo Plc, First Bank of Nigeria Ltd, Fidelity Bank Plc and Bank of Industry Limited.
The upgrades of the Long-Term IDRs of the banks followed the recent sovereign upgrade and reflect Fitch’s view that Nigeria’s sovereign credit profile has become less of a constraint on the issuers’ standalone creditworthiness, the rating agency said.
Fitch also upgraded Nigeria’s Long-Term IDRs to ‘B’ from ‘B-‘ on 11 April, a decision that reflected increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
Nigeria was removed from the JP Morgan index in 2015 ostensibly due to its deviation from orthodox monetary policies and influence of capital control in its management of foreign exchange.
Principally due to reduction in oil revenues at the time, Nigeria introduced currency restrictions to defend the naira after it failed to halt a dangerous slide with burning of dollar reserves. The bank had earlier warned Nigeria to restore liquidity to its currency market in a way that allowed foreign investors tracking the index to conduct transactions with minimal hurdles.
“Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.
Nigeria was listed in JP Morgan’s emerging government bond index in October 2012, after the Central Bank removed a requirement that foreign investors hold government bonds for a minimum of one year before exiting.
The JP Morgan Government Bond Index reflects investor confidence and opens doors to billions of investment flows, making Nigeria’s proposed re-entry a positive signal to the market and investors.
Oniha explained that talks with JP Morgan were ongoing and had gained momentum in recent times due to the stability created by the FX market reforms.
“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” the DMO DG said.

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