Shell: Crude oil thieves responsible for explosion at our Rivers pipeline

discovered following a joint investigation by representatives of oil regulators, host communities, operators, and the state ministry of environment.

“The Shell Petroleum Development Company of Nigeria Limited (SPDC) confirms with great sadness that the fire incident, which occurred on Friday, March 3, 2023, on the Rumuekpe –Nkpoku Trunk Line in Rivers State, resulted in the unfortunate loss of lives,” he said.

“Government security agencies are still investigating to know the exact number of lives lost in the incident. This is indeed a deeply regrettable incident and we commiserate with the families that have been impacted.

“The report of the government-led Joint Investigation Visit team, which included representatives of the community, ascertained that the fire, which has been extinguished, occurred at the site of an illegal connection used for crude theft.

“The Rumuekpe – Nkpoku Trunk Line, which was not operational at the time of the incident, is part of the Trans Niger Pipeline (TNP).”

IMF to central banks: Stop financing excessive government debt

By Abubakar Yunus Abuja

The International Monetary Fund (IMF) has urged central banks to refrain from monetising excessive government debt.

Debt monetisation is when a government borrows money from the central bank to finance public spending instead of selling bonds to private investors or raising taxes.

The Washington-based institution, in its report titled ‘Rethinking monetary policy in a changing world’, said the ability of central banks to set monetary policy and control the economy in more volatile times is dependent on their independence.

As central banks hike interest rates and the government has to pay more for its debt, the hope is that authorities will cut back on expenditures, thereby cooling the economy and lowering inflation pressure, IMF said.

“The low interest rates and less extreme public debt levels that prevailed after the global crisis permitted central banks to ignore what were then relatively inconsequential interactions between monetary and fiscal policy,” it said.

“The period following the 2008 crisis was one of monetary dominance—that is, central banks could freely set interest rates and pursue their objectives independent of fiscal policy.

“Central banks proposed that the core problem was not rising prices, but the possibility that weak demand would lead to major deflation.

“As a result, they focused primarily on developing unconventional policy tools to allow them to provide additional stimulus.

“Central banks also felt emboldened to pursue policies that would simultaneously meet the need for further stimulus and achieve social objectives, such as hastening the green transition or promoting economic inclusion.

“During the COVID-19 crisis, circumstances changed dramatically. Government spending rose sharply in most developed economies.”

The IMF said as spending was increasing, countries were hit by supply shocks of unprecedented proportion.

The organisation said the supply shocks were largely the result of pandemic-related problems—such as supply chain disruptions.

“These added to inflation pressures. The pandemic demonstrated that monetary policy does not always control inflation on its own. Fiscal policy also plays a role,” the IMF said.

“More important, the accompanying buildup of public debt raised the possibility of fiscal dominance—in which public deficits do not respond to monetary policy.

“Whereas low debt levels and the need for stimulus allowed monetary and fiscal authorities to act in tandem following the global financial crisis, the prospect of fiscal dominance now threatens to pit them against one another.

“Central banks would like to hike interest rates to rein in inflation, whereas governments hate higher interest expenses.

“They would prefer that central banks cooperate by monetizing their debt—that is, by purchasing government securities private investors won’t buy.

“Central banks can retain independence only if they promise not to accede to any government desires to monetize excessive debt, which would then force authorities to cut spending or increase taxes, or both—socalled fiscal consolidation.”

Naira Redesign: Banks’ cash withdrawal limit is illegal – Supreme Court

From Abubakar Y Ojimaojo ABUJA

The Supreme Court has adjudged the cash withdrawal limits imposed by banks as a result of scarcity of currency notes in circulation as a violation of citizens’ rights.

A seven-man panel of the court led by John Okoro made the declaration in a unanimous judgement delivered on Friday.

“Such restriction on an owner’s right to freely use his or her property is illegal unless provided for by a law,” Emmanuel Agim, a member of the court’s panel who read the lead judgement, held.

The court handed down the decision in a suit challenging the federal government’s illegal withdrawal of the old N200, N500, and N1,000 from circulation.

The federal government, under a demonetisation policy, had in October 2022, introduced newly redesigned N200, N500, and N1,000 notes and aimed to withdraw the old versions of the currency notes from circulation within 90 days.

Under the policy, the Central Bank of Nigeria (CBN) also placed cash withdrawal limits of maximum of N500,000 weekly on individuals and maximum N5 million weekly on corporate entities.

The implementation of the policy has been chaotic as shortage in supply of the new notes created scarcity of cash across the country.

Many citizens queued at ATM centres in a chaotic scramble for cash to meet their basic needs but often returned home emptyhanded. The situation sparked violent protests by desperate citizens deprived of gaining access to their hard-earned money.

Commercial banks resorted to placing limits on cash withdrawals on their customers in a futile attempt to evenly distribute available cash to the highest number of citizens..

The Supreme Court declared such action by the commercial banks as a violation of the rights of the citizens.

“My attention has not been drawn to any law that permits a bank not to pay cash to a customer on demand on the grounds that the 1st defendant has not been able to print enough new naira notes,” Mr Agim said.

He also said he was not aware of any law “that permits the 1st defendant to direct the imposition of limits on the cash to be paid from a customer’s account after deposit of the old naira notes”.

“To the extent that the directive has continued to deprive all persons and the plaintiffs access to a substantial part of their funds in banks in form of cash, it forcefully and illegally interferes with their rights of ownership and use of their said funds for,” Mr Agim added. “Such restriction on an owner’s right to freely use his or her property is illegal unless provided for by a law.”

The Supreme Court nullified Mr Buhari’s directive withdrawing the old N200, N500, and N1,0000 notes from circulation.

It also ordered that the old naira notes would remain legal tender and must continue to circulate alongside the new ones up till 31 December.