PwC Report: FG Spent N2.3tn on Oil, Electricity Subsidies in Four Years Chineme Okafor in Abuja The federal government expended a total of N2.3 trillion on subsidising the consumption of petrol and electricity from 2015 to 2018, a report from global accounting and consulting
firm, PricewaterhouseCoppers (PwC), has revealed. The report, which was obtained by THISDAY yesterday, was presented to power sector stakeholders at a roundtable organised by Mainstream Energy Solutionsoperators of the Kainji and
Jebba hydro power generation companies (Gencos), by the Chief Economist of PwC Nigeria, Dr. Andrew Nevin. The report highlighted the challenges of Nigeria’s electricity sector and potential solutions to them. It equally indicated that the
country spent N1.12 trillion as electricity subsidy and another N1.2 trillion on petrol. It noted that both subsidy expenditures within the review period represented 17 per cent of Nigeria’s current foreign reserves and 26 per cent of 2019 federal budget.
It said: “The federal government has expended about N1.2 trillion as petroleum subsidy over the past four years (2015-2018). The tariff shortfall in the electricity sector which technically is the electricity subsidy payable by the federal
government stood at N1.12 trillion between 2015 and 2018. “Both subsidies amount to N2.3 trillion, which represents about 17 per cent of current foreign reserves and 26 per cent of the 2019 budget.” Continued on page 9
Despite Bearish Trading, Firms Raise N90bn from Stock Market in Nine Months... Page 8 Friday 27 September, 2019 Vol 24. No 8936. Price: N250
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Citing Misconduct, Magu Calls for London Judge’s Probe Says jurist desperate to enforce P&ID’s arbitral award Obinna Chima The federal government has called for a probe of Justice Christopher Butcher of the London Commercial Court
hearing the dispute between Nigeria and an Irish-owned firm registered in British Virgin Island, Process and Industrial Developments (P&ID), over a failed gas project that
went into arbitration with $9.6 billion claim against the country. Acting Chairman of the Economic and Financial Crimes Commission (EFCC),
Mr. Ibrahim Magu, who is part of the Nigerian delegation to the court session yesterday, told ARISE NEWS, a sister broadcast arm of THISDAY Newspapers, in an interview
in London that the court was so desperate to enforce the arbitral award. Two other members of the delegation, Minister of Information and Culture,
Alhaji Lai Mohammed and Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, who also spoke with Continued on page 8
Nigeria to Shift Battle over $9.6bn Judgment Debt to UK Appeal Court Obtains order staying enforcement of P&ID arbitral award Gets 60 days to pay $200m deposit to court Ejiofor Alike with agency reports The battle between Nigeria and Process and Industrial Developments (P&ID) over the bid to stop the company from attaching the country’s assets to recoup the $9.6 billion arbitral claim it secured last month, is set to shift to the United Kingdom Appeal Court. The Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN), yesterday signified the intention of the federal government to head to the UK Appeal Court shortly
after the UK Commercial Court ordered a stay of execution of the $9.6 billion claim, arising from a failed gas deal between the two parties which led to arbitration. Mr. Justice Butcher had last month affirmed the arbitral claim but fixed yesterday for hearing of an application by P&ID seeking the leave of the court to attach some assets of Nigeria for seizure to recoup the $9.6 billion arbitral claim. It was, however, learnt that the claim would have hit a double-digit mark as interest on the original Continued on page 8
MEETING TO UPLIFT NIGERIA... L-R: President, Dangote Group of Companies, Alhaji Aliko Dangote; Chairman Gates Foundation, Mr. Bill Gates and President Muhammadu Buhari during a meeting with Buhari on the sideline of the United Nations General Assembly session, New York... on Wedneday state house
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