Nigeria’s budget in danger as crude oil prices crash  

Nigeria’s financial outlay for 2014 and outlook for 2015 move near crisis point today as oil prices continue to slide southwards.
In the year’s budget, Nigeria set its benchmark price at $77.5, but as today, the nation’s light Brent oil was selling for $83.37 a barrel,its lowest level in four years. West Texas Intermediate contract dropped to $80.37, a point last seen more than two years ago.

(L): Nigeria’s Minister of Petroleum resources Diezani Alison Maude at Vienna

The sliding prices holds implications for Nigeria’s large spending appetite: it means that a little window is now left to scoop surplus for the Excess Crude Account, used as a buffer at times of oil price shocks or declining income. And if the slide continues, it has serious implications next year, an election year.
In later deals, Brent North Sea crude for delivery in November stood at $84.06 a barrel, down 98 cents compared with Tuesday’s close.
US benchmark West Texas Intermediate (WTI) for November was down $1.16 at $80.68.
“For as long as OPEC makes no move to tackle this threat of a massive oversupply by reducing production, prices are likely to continue to fall,” said Commerzbank analyst Carsten Fritsch.
Currently, members of the Organization of the Petroleum Exporting Countries, such as kingpin Saudi Arabia, are in fact slashing the prices they charge customers for their crude in order to gain market share.
The International Energy Agency on Tuesday said it expects demand to have risen by just 700,000 barrels per day to 92.4 million barrels per day this year, 200,000 fewer than its previous growth forecast.
Market-watchers have blamed the slump in demand on weak growth in China, the world’s biggest energy consumer, and the eurozone, which some analysts have warned is flirting with recession.
Adding to the pain is an oversupply of the black gold caused by strong US production of shale gas and a return of Libyan oil on to the market after facilities that were closed due to civil unrest resumed operations.
“At some point, dwindling oil prices should be a positive for businesses but global headwinds, which include an Ebola outbreak and signs of slowing growth in China and Europe, have the upper hand for now,” said Desmond Chua, market analyst at CMC Markets in Singapore.
DBS Bank of Singapore pointed to concerns over weak growth in Europe’s core economies France, Germany and Italy.
“We’re not talking about Portugal and Greece anymore. It’s the big guys that are shrinking,” it said, adding that “the eurozone is on the cusp of its third recession in five years”.

A stage under construction at the venue of the swearing in

• 
• 
• 
• 
• 

Ahead Thursday’s swearing in of Governor-Elect of Ekiti State, Mr. Ayodele Fayose, activities are in top gear at the swearing in venue, Oluyemi Kayode Stadium, in Ado Ekiti, western Nigeria.

On Wednesday morning, decorators and other workers were seen putting things in place. They had finished erecting the main stage for the event, while two other stages were still being erected at the time of filing this report.

A stage under construction at the venue of the swearin in

Some people of the state told P.M.NEWS that they are eagerly awaiting the new governor to take over.

They, however, appealed to Fayose to fulfil all the promises he made during the electioneering campaign.

One of the residents who spoke to our correspondent, Mrs. Risikatu Ali, who sells fruits in Ado-Ekiti, said: “We thank God for everything. For me, the outgoing governor, Dr. Kayode Fayemi tried his best. He did very well. I want to advise Fayose to make sure that he performed better than Fayemi. He should see to the welfare of his people.”

A stage under construction at the venue of the swearin in

As at the time of filing this report, the state was calm and everybody was going about without any form of intimidation or harassment.

Following the instruction of the Chief Justice of Nigeria, Justice Aloma Mariam Mukhtar, courts in the state which had been closed down about two weeks ago have been opened.

The policemen and soldiers depolyed to the courts have all left.

Reserve place for dignitaries

As a result, life has returned to the courts as some staff were seen Wednesday morning reporting for work and signing the staff register.

But no court was sitting at the time of filing this report.

Menwhile, outgoing Governor Fayemi was seen laeving Ado-Ekiti in a convoy at about 11:30am Wednesday to his home town, Ishan.

3 KAI Officials Rape Woman  

Three officers of the Kick Against Indiscipline, KAI, have been arrested for allegedly raping a 24-year old woman after they demanded N10,000 bribe from her.

The suspected KAI officers, identified as Benjamin Akinade, Olayinka Olowu and Adebayo Ayeni, have been remanded in the custody of the Lagos State Taskforce on Environmental and Special Offences (Enforcement) Unit and will soon be charged to court.

The officers were arrested by the KAI authorities after the woman (name withheld) allegedly reported the rape case to officers at KAI’s headquarters in Ikeja, Lagos, southwest Nigeria.

The incident occurred recently when the woman crossed the expressway instead of using the pedestrian bridge at Ojota area of Lagos State.

The woman alleged that the officers arrested her for breaking the traffic law but later demanded for N10,000 bribe to set her free.

•The KAI officials arrested for raping a traffic offender

She added that the officers threatened that if she did not bribe them, she would be sent to prison.

In the alternative, she said she was advised to “use” what she has to bail herself out of being jailed.

The victim alleged the officers intimidated her and took her to an undisclosed hotel where she was raped.

One of KAI’s administrators, Mr. Onipede Offi, said the case has been handed over to the Lagos State Task Force, Alausa for proper interrogation and possible prosecution.

Offi said the management of  KAI has resolved to bring sanity into the system and would not relent in achieving this goal.

“We will make sure that the officers are punished if they are found guilty of the offence. This will serve as deterrent to others who also collect bribe or harass commuters,” he said.

When contacted, Taskforce Chairman, Bayo Sulaiman, a Chief Superintendent of Police, confirmed the incident and assured that the officers will be charged to court to face prosecution.

“No government would condone criminal acts. They are just like common criminals if found guilty. So the law will take its course on them.

“They threatened to jail  or have carnal knowledge of someone they arrested. They reportedly raped the lady and there are others who also are in the habit of committing  this crime but  we don’t have information about them now. We will charge these officers to court,” he said.

Sulaiman disclosed that the KAI officers were posted to Iyana Ipaja, but went to Ojota to extort money from unsuspecting commuters.

He warned other officers who engage in this criminal act to change their ways or face the consequences.

General Muhammadu Buhari, APC presidential aspirant

Nigeria’s former military head of state, General Muhammadu Buhari, on Wednesday put fighting insecurity and corruption at the top of his bid to become president, as he formally launched his campaign for leadership.
The 71-year old announced that he was standing for the presidential ticket of the main opposition All Progressives Congress (APC), which he said was “resolved to bring change to Nigeria”.
“Protection of lives and property” was at the heart of the party’s agenda, as Boko Haram Islamists, marauding gangs, armed robbers and kidnappers had left communities living in fear, he said.
He also hit out at the ruling Peoples Democratic Party (PDP) of President Goodluck Jonathan, which has never been out of power since Nigeria returned to civilian rule 15 years ago.
“Since 1999, (the) PDP has presided over our country’s decline. Nigeria, in my experience, has never been so divided, so polarised by an unthinking government hell-bent on ruling and stealing,” he said.
Corruption had become “blatant and widespread” while the country had earned the unenviable reputation worldwide as “the home of corruption”, he added.
The former army general vowed to improve the performance of Africa’s biggest economy, whose over-reliance on oil and gas has blighted other sectors such as manufacturing and agriculture.
Buhari, who came to power in a 1983 military coup, ruled Nigeria with an iron fist and was criticised for rights abuses but is credited for his government’s apparent crackdown on corruption. He was ousted in another coup in 1985.
The APC will pick its presidential candidate for the February 14, 2015 vote in December.
Nigeria’s former vice-president Atiku Abubakar has already declared his candidacy while Kano State governor Rabiu Kwankwaso is also expected to enter the contest.
PDP governors and the party’s national executive committee have unanimously backed Jonathan to run for a second, four-year term of office but he has not publicly announced his candidacy.