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N60 billion controversy: Stop playing the ostrich, Obaseki tells FG

Paul Omorogbe
Edo records 370 percent revenue Edo govt will maintain enabling environment for
Obaseki

Governor Godwin Obaseki of Edo State has advised the Federal Government to quickly end the current “financial rascality” so as to prevent the economy from further degeneration instead of playing the Ostrich about the parlous state of the nation’s economy.

Obaseki’s advice, coming in the wake of the denial by the Minister of Finance, Budget and National Planning, Zainab, Ahmed that any money was printed to top-up revenue allocation for March, is an indication that the last might not have been heard about the accusation levied by the governor that the Federal Government printed N60 billion to top-up the March allocation.

Obaseki, the originator of the claim, on Thursday advised the Federal Government to stop playing the Ostrich over the parlous state of the nation’s economy.

It would be recalled that the governor had early this week disclosed that at the Federation Account Allocation Committee, FAAC, meeting for March, the Federal Government printed additional N50 to N60 billion to top-up for the states, the Local Government Ares and the Federal Government to share.

But the Minister of Finance, Budget and National Planning, Zainab Ahmed, denied that any amount of money was printed and insisted that was shared in the month of March was a generated revenue.

Reacting to the minister’s denial, Obaseki, in a statement he personally endorsed on Thursday in Benin City, said that his only advice to the Federal Government was to face the reality of the economic situation and take urgent steps to stop the drift and end the “financial rascality”.

“Our advice is that we stop playing the Ostrich. While we do not want to join issues with the Federal Ministry of Finance, we believe it is our duty to offer useful advice for the benefit of our country,” Obaseki reiterated.

Parts of the statement read:

“The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed should rally Nigerians to stem the obvious fiscal slide facing our country. 

“Rather than play the Ostrich, we urge the government to take urgent steps to end the current monetary rascality, so as to prevent the prevailing economic challenge from degenerating further.

“We believe it is imperative to approach the Nigerian project with all sense of responsibility and commitment and not play to the gallery because ultimately, time shall be the judge of us all.”

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Previous Article Apapa customs generates 2022,Extortion: Lagos bans military checkpoints in Apapa, outlaws nine illegal checkpoints, As VIN protest lingers winners losers emerge, Over the past few years, players in the freight industry mounted a consistent demand for the Nigeria Customs Service (NCS) to overhaul imported vehicles valuation system, on the heels of recurring conflicts between them and customs valuation officers. For the majority of customs brokers and freight forwarders, the harmonisation and standardisation of the Customs’ valuation system was urgently needed. In the absence of a standardised valuation system, Customs officials were accused of high handedness and extortion through the use of deductive valuation. Responding to this demand for a standardised valuation system, the Nigeria Customs Service last week introduced an e-valuation system known as Vehicles Identification Number (VIN-valuation), being an artificial intelligence manual that is wholly self acting, utilising world class data which drives documentation processes in an electronically digitised format. With the introduction of the VIN valuation system, many expected standards in Customs valuation processes to be above board. However, rather than commend Customs for the bold initiative, majority of those who have clamoured for the change and who are primary beneficiaries of its laudable gains began to complain about the process, taking it to an unexpected height through organised protest, and calling for its rejection. Last week, the protest got to an unprecedented level and clearing agents decided to embark on an indefinite strike to express their displeasure over the newly introduced Customs VIN. With the clearing agents refusing to clear imported vehicles that had arrived at the Port and Terminal Multiservices Ltd (PTML) and Tin-Can Island ports, many vehicles became trapped inside the ports, thereby accumulating demurrages and storage charges that run into millions of Naira. Winners With so many imported vehicles trapped inside the ports due to the ongoing strike by clearing agents (which is in its second week), some port operators are currently smiling to the bank while there is confusion inside the ports. Top among the operators who are benefitting from the ongoing protest are the foreign shipping companies who are making millions of Dollars on trapped cargoes in the form of demurrage charges. In line with shipping rules, demurrage charges are billed on every container carried by a ship once a ship is delayed due to reasons beyond the shipping company. “Once a ship arrives at a port and cannot discharge her contents due to issues beyond the shipping company, the ship starts billing the containers that she is carrying what is called demurrage charges. For the number of days that the ship waits to discharge her contents, she bills every container that she is carrying demurrage charges. “The strike by the clearing agents over the VIN controversy has already lasted one full week and we are already into the second week, yet the strike over roro cargoes is still on. Vehicles have been offloaded by ships at these port terminals and those vehicles should have been cleared to create space for newer arrivals at the port terminals. However, due to the ongoing strike, these vehicles have not been cleared. Definitely, we have a problem. “If this strike persists, it will get to a point ships won’t be able to discharge cargoes at the port terminals anymore because the whole port terminal will be filled with uncleared imported vehicles and the ships will start billing demurrages on the vehicles that they are carrying. What this means is that while the clearing agents are protesting and refusing to clear imported vehicles, the shipping lines will be making more money on the cargoes that they are carrying,” a shipping agent who wouldn’t want his name in print told the Nigerian Tribune exclusively. Another set of winners while the strike lasts at the ports is the port terminal operators. At Nigerian port terminals, newly arrived cargoes have free storage days that they are not billed what is called storage charges. However, after the expiration of the grace period which varies between three days and five days, the port terminals start billing uncleared cargoes storage charges. 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