News

Default on foreign loans, FG panics

foreign loans, FG panics


Azura Power and Seven Energy, the two key players in power and gas, have been unable to settle their December 2017 invoices regarding foreign loans that enjoy the World Bank partial risk guarantee (PRG) signed by the Federal Government of Nigeria (FGN).

foreign loans, FG panics

This revelation has set the federal government in panic mode,and the minister of finance, Kemi Adeosun writing to the Nigerian Bulk Electricity Trading (NBET) Plc to “urgently address the situation and settle the invoices.In a letter dated February 13, 2018, warned that if the invoices are not settled, “a default by the FGN in the Partial Risk Guarantees will not only significantly impact Nigeria’s borrowing ability in the International Capital Market but also increase our cost of borrowing”.

NBET is the federal government-owned guarantor that buys electricity from generating companies (GenCos) and resells to distribution companies (DisCos).She said in the light of these implications, “NBET and Niger Delta Power Holding Company (NDPHC) are requested to urgently address the situation and settle the December invoices for Azura and Seven Energy through (i) Collections from Distribution Companies; and (ii) Recourse to funds held by the two Corporations.”

CONTROVERSIAL GUARANTEES

In August 2014, a federal government circular No. SGF/OP/1/S3/X/737 issued by Anyim Pius Anyim, then secretary to the government of the federation, had directed that a “specimen indemnity clause” be inserted into all contracts and agreements entered into by FGN with foreign entities.

This, he said, was “to provide additional protection to the Federal Government Nigeria and some of its separate legal entities such as the CBN, NNPC and NSIA whose assets may be liable to attachment in enforcement proceedings in foreign jurisdictions”.

Ngozi Okonjo-Iweala, then minster of finance, had sought the legal opinion of Mohammed Bello Adoke, then attorney-general of the federation (AGF), on the put-call option agreement (PCOA) signed with Azura Power — which included the PRG.

Adoke reminded the minister of the SGF circular on the need to indemnify the federal government and prevent its assets from becoming vulnerable in the event of default.

The PCOA was eventually signed without Adoke’s legal opinion which was necessary to activate the agreement.

However,it has been reported that when President Muhammadu Buhari assumed office in 2015, pressure was mounted on Abdullahi Yola, the then solicitor-general of the federation, by top presidency officials to give a favorable legal opinion.

Click to comment
News

List of winners at NFF awards held in Lagos (pictures)

List of winners at NFF awards held in Lagos (pictures)

nff awards

 

The 2018 Aiteo/Nigeria Football Federation awards held inside the Grand Ballroom of the Eko Hotels and Suites, Victoria Island, Lagos on Monday. The event saw in attendance many notable names: NFF president, Amaju Pinnick, FIFA president, Gianni Infantino, Jay Jay Okocha, Peter Rufai, Governor Ambode etc.

Chelsea forward, Victor Moses was awarded player of the year while the female category saw Asisat Oshoala going home with the award. Plateau United's coach, Kennedy Boboye was presented with the Men’s Coach of the Year award, while Ann Chiejine, former Super Falcons goalkeeper and assistant coach went home with the Women’s Coach of the Year award.

Surprisingly, El-Kanemi Warriors Football Club, a football team based in Maiduguri, Borno, was awarded fans of the season despite the trouble the State where they are based faces in the hands of dreaded Boko Haram terrorists. Another surprise...

Entertainment News

Tiwa Savage rocks black beret on lovely iro and buba (pictures)

Tiwa Savage rocks black beret on lovely iro and buba

Mavin Records artiste, Tiwa Savage looks extremely awesome in lovely iro and buba. The mother of one shared the pictures on Instagram with the hashtag #WakandaForever. Perhaps, she was high in the spirit of recently released hit movie, Black Panther when she picked the attire for the pictures.

The singer subtly sparked speculations about a marriage crisis after she posted a valentine's day message on Instagram accompanied by a picture showing her and her son, Jamil. She said, ''As long as you keep smiling, everyday will be valentine for me''. This led many to wonder if all is well between she and her husband, Teebillz who was not acknowledged in the post. Snooping through the page of her husband, it is noticed that he...

News

My husband was ‘trashed’ after helping A.P.C win 2015 election -Tinubu’s wife

Tinubu’s wife

Tinubu, a former Lagos State governor, has been appointed to reconcile aggrieved party members ahead of the 2019 general elections.

Oluremi, Wife of the National Leader of APC, who represents Lagos Central Senatorial District at the Senate, on Monday featured in ‘Your View’, a breakfast show of Television Continental, where she alleged that Tinubu was sidelined despite his efforts towards ensuring that A.P.C won the polls.She disclosed that Tinubu, a former governor of Lagos state, fought tirelessly to see that APC takes over the reigns in Aso Rock in the 2015 presidential election and she was forced to discourage her husband from his continued loyalty to the Presidency and the APC after it became obvious that they had used and dumped him.

Most Popular

To Top