Daily Watch – Crude oil theft cost Nigeria ₦16.25T, Kenya’s debt level reach record highs

17th August 2023

President Bola Tinubu has released the portfolios for the 45 confirmed ministerial nominees. Some notable portfolios include Nyesom Wike (Federal Capital Territory), Wale Edun (Finance and Coordinating Minister of the Economy), Adegboyega Oyetola (Transportation), David Umahi (Works), Festus Keyamo (Aviation and Aerospace Development), Betta Edu (Humanitarian Affairs and Poverty Alleviation), Bosun Tijani (Communications, Innovation and Digital Economy), Adedayo Adelabu (Power), Dele Alake (Solid Minerals Development), Doris Anite (Industry, Trade and Investment), Mohammed Badaru (Defence), Tahir Maman (Education), Yusuf Tuggar (Foreign Affairs), Lateef Fagbemi (Attorney General of the Federation), Atiku Bagudu (Budget and Economic Planning), Abubakar Kyar (Agriculture and Food Security), Ibrahim Geidam (Police Affairs), Uche Nnaji (Innovation, Science and Technology), Hannatu Musawa (Culture and the Creative Economy), Ahmed Dangiwa (Housing and Urban Development), Ali Pate (Health and Social Welfare), Simon Lalong (Labour and Employment), Lola Ade-John (Tourism), Sa’Idu Alkali (Interior), and Zephaniah Jisalo (Special Duties and Intergovernmental Affairs), Joseph Utsev (Water Resources and Sanitation), Bunmi Tunji (Marine and Blue Economy), Uju Kennedy (Women Affairs), Abubakar Momoh (Youth), and John Enoh (Sports Development).

The Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigeria lost about ₦16.25 trillion to crude oil theft and sabotage of crude assets between 2009 and 2020. NEITI said the amount lost was a result of the loss of over 619.7 million barrels of crude oil within this period. Ogbonnaya Orji, the Executive Secretary of NEITI, also said that Nigeria spent ₦13.7 trillion on subsidy payments between 2005 and 2021. Meanwhile, the Nigerian National Petroleum Corporation Limited (NNPCL) has secured a $3 billion emergency crude repayment loan from the African Export-Import Bank to support the Naira and stabilise the foreign exchange market. TheCable reports that the NNPC will repay the loan with crude oil at an interest rate between eight percent and 11 percent.

Ghana’s National Identification Authority (NIA) has dismissed 10 staff members following investigations into allegations of misconduct, extortion of funds from Ghana Card applicants, and violations of its Standard Operating Procedures and applicable public service rules in the course of their duties as public officials responsible for registration activities. The decision by Management to dismiss the officers followed thorough investigations conducted by the Criminal Investigations Department (CID) of the Ghana Police Service, stationed at NIA’s headquarters in Accra. This included the interdiction of the affected officers, the appointment of a Disciplinary Committee of Inquiry to provide a hearing for each officer in accordance with the law, and Management’s subsequent acceptance of the Disciplinary Committee’s recommendations. 

Kenya’s debt level has reached record highs despite President William Ruto’s vow to tame the country’s appetite for loans, treasury figures show. Total public debt rose by a record 1.56 trillion shillings ($10.8 billion) in the financial year ended 30 June to 10.1 trillion shillings ($70.75 billion), breaching a debt ceiling of 10 trillion shillings, according to the data released. “The increase in the public debt is attributed to external loan disbursements, exchange rate fluctuations and the uptake of domestic and external debt,” the Treasury said. Loan repayment costs, mainly to China, have shot up as the local currency trades at record lows of around 144 shillings to the dollar.