China has rejected Ugandan officials request to re-negotiate ‘toxic clauses’ in the $200m (Shs713b) loan picked six years ago to expand Entebbe International Airport.

Some of the unfavourable provisions in the loan agreement that Uganda signed with the Export-Import (Exim) Bank of China on March 31, 2015, if not amended, expose Uganda’s sovereign assets to attachments and take-over upon arbitration awards in Beijing.

Our investigations found out that any proceedings against Uganda Civil Aviation Authority (UCAA) assets by the lender would not be protected by sovereign immunity since Uganda government, in the 2015 deal, waived the immunity on airport assets.

Highly-placed sources said the risk presented by the Financing Agreement on March 7, 2019, prompted Uganda to send an 11-member delegation to Beijing to plead with Exim Bank to renegotiate the clauses now impugned by Kampala.

The joint team from the Works, Foreign Affairs, and Finance ministries, as well as UCAA and Attorney General’s Chambers, was led by Dr Chrispus Kiyonga, Uganda’s Ambassador to China.

In the meeting, the four Exim Bank executives reportedly rejected any amendments to clauses of the signed Financing Agreement, and made it clear to the Ugandan executives that any attempts to make alterations would set a bad precedent. In addition, the Chinese told their guests that they saw no cause to warrant the amendment.

The lenders advised Dr Kiyonga and his team to accept “friendly consultations” from time to time, to ensure smooth implementation of the airport expansion project. They also agreed to keep the details of the meeting confidential.

The Federal Government of Nigeria has reiterated its commitment to support states and the Federal Capital Territory (FCT) implement the Nigeria COVID-19 Action, Recovery and Economic Stimulus (NG-CARES) programme.

The government said the move is in order to urgently cushion the effects of the COVID-19 pandemic on poor and vulnerable households in Nigeria.

NG-CARES is a state operation with support from the World Bank to the tune of $750 million credit to support the 36 states and FCT mitigate the impact of the COVID-19 pandemic on the livelihoods of poor and vulnerable households and micro-enterprises in the country.

Chairman of the Federal CARES Technical Committee of the NG-CARES and Director, Economic Growth in the Federal Ministry of Finance, Budget and National Planning, Aso Vakporaye, made the commitment in Abuja, at a one-day meeting with states and the FCT on the packaging of documentation for eligibility under the NG CARES programme.

He urged states and the FCT to present their concerns, seek clarifications on any issue regarding the implementation of the programme, assuring of Federal Government’s commitment to supporting them always.

It will be recalled that recently, Contrary to the federal government’s plan to remove subsidy on petrol in the second half of next year, the International Monetary Fund (IMF) has advised the Nigerian government to fully remove fuel subsidy and move to a market-based pricing mechanism in early 2022 as stipulated in the 2021 Petroleum Industry Act (PIA).

The IMF, in its 2021 Article IV Mission statement released also projected that despite high oil prices, Nigeria’s fiscal deficit would widen in 2021 to 6.3 per cent of Gross Domestic Product (GDP).

Fiscal deficit is projected at 3.93 per cent and 3.39 per cent of GDP in Nigeria’s 2021 and 2022 budgets respectively.

The IMF, in the report said: “The complete removal of regressive fuel and electricity subsidies is a near-term priority, combined with adequate compensatory measures for the poor.

The Nigerian Senate, Trade Union Congress, TUC, and experts have disagreed with the Federal Government’s plan to remove fuel subsidy next year and replace it with a N5,000 monthly transport grant to 40 million Nigerian citizen who are vulnerable.

While the Senate said there was no provision for such grant in the 2022 budget, TUC expressed shock that government could come up with this when negotiations on subsidy removal between government and the Labour movement is still ongoing, saying it is unacceptable.

The Nigerian Labour Congress on its part, described the development as an open invitation for unrest and revolt.

Meanwhile, the implementation of the proposed N5,000 monthly grant to 40 million Nigerians will cost the Federal Government about N2.4 trillion annually, which is 81.71 per cent above the average annual subsidy payment from 2016 to 2019; according to analysts this is penny wise pound foolish.

During the four years, the FG spent N2.93 trillion on fuel subsidies as follows: 2016 – N563.3 billion; 2017 – N144.53 billion; 2018 – N730 billion and 2019 – N1.5 trillion.

However, Nigeria’s Minister of Finance, Zainab Ahmed, said that the Federal Government has not concluded work on the proposed N5,000 transport grant, adding that the duration for the implementation will not exceed one year.

However, While speaking with journalists after submission of its committee budget proposal, Chairman, Senate Committee on Finance, Senator Olamilekan Adeola (APC, Lagos West), said that there was no provision for N5,000 monthly grant for 40 million Nigerians for transportation allowance in the 2022 budget currently before the National Assembly.

According to him, before the Executive can embark on such intervention, the proposal must come to National Assembly because it is going to cost N2.4 trillion.

The Lagos state government will formally launch its new electricity sector policy designed to steer investors into its independent power market on December 8, a government representative has said.

Titilola Amodu, geologist at the Lagos state Ministry of Energy in a presentation at the Nordic-Nigerian Connect conference held on Wednesday said the policy will deepen the adoption of green energy in the state.

Under the policy, the state government will establish an autonomous regulatory agency that will license participants to undertake market monitoring and ensure that prices charged by market participants are cost-reflective and fair to end-users.

The state is considering an Integrated Resource Plan (IRP), developed along with United States Agency for International Development (USAID), Power Africa Nigeria Power Sector Programme that will generate, transmit, and distribute power from both gas and renewable energy.

This is expected to significantly contribute to the reduction of carbon emissions and raise the living conditions of Lagosians.

Olamilekan Adegbite, Nigeria’s minister of Mines and Steel Development has revealed that revenue from Nigeria’s mining sector is expected to hit N8 billion by December 2021 as the ministry intensifies efforts to develop the industry and block revenue leakage.

“In 2019, the sector was generating N2.5 billion in revenue to the economy but this has grown to N6.8 billion as of September 2021, which has increased its contribution to the GDP and we are looking to grow it to N8 billion by the year-end,” he said.

Adegbite who spoke at an evening with the Minister hosted by the Lagos Business School on Thursday explained that efforts have been intensified to drive full recovery of the sector which include blocking revenue leakages, provision of data and driving increased investments.

The minister noted that Nigeria’s mining sector is commencing operations with better prospects and increased opportunities that are attracting investors. Leveraging the 2007 mining act, he added that both the sector stakeholders, states and investors are protected.