Author: The Nation

The Central Bank of Nigeria (CBN) has said Bank Verification Number (BVN) does not expire.

In a statement signed by CBN Acting Director, Corporate Communications Department, Isa AbdulMumin, refuted reports suggesting that the BVN issued by the bank, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), expires after 10 years.

 “Contrary to these claims, we wish to clarify that the BVN issued in Nigeria has no expiry date. Once a customer’s biometrics have been captured and enrolled in the database of NIBSS, the BVN remains for life,” AbdulMumin said.

However, he said Regulatory Framework for BVN by the CBN in 2021 stipulates that customers can only change their records due to certain conditions spelt out in the document and after being cleared by relevant authorities.

“Therefore, we urge bank customers, especially those whose biometrics have been captured by the system, to continue using their unique identifiers as they last their entire lifetime,” he said.

The operators of the newly completed $1.5 billion Lekki Port in Lagos have invested additional $100 million to acquire terminal and cargo handling equipment.

The equipment will enable the Port to recover cargo destined for other neighbouring West African countries like Cotonou, Ghana, Togo, Niger, Mali, and Burkina Faso.

Speaking at a media parley organised by the operators of the port and terminal in Lagos yesterday, the Chief Commercial Officer of Lekki Freeport Terminal, Kehinde Olubi-Neye, said the port has the needed equipment and the draft to recover transship cargo bound for the neighbouring countries.

“The Lekki Freeport Terminal has discussed with stakeholders, including Nigeria Customs Service and that they are confident that recovering transshipment cargo not just for the hinterland but also for landlocked countries and other regional countries will be back in the country,” Olubi-Neye said.

 He added that the port has also seen the opportunity to play a role in the uptake of cargo in the Eastern Ports, which is why they are currently having discussions on moving containers discharged at Lekki Port by barge to the Eastern Ports of Calabar, Warri, and Onitsha River Port among others to help increase the economy of those ports.

On efficient way to evacuate  cargo from the port, Olubi-Neye added that the Lekki Port operates an automated system that is linked to the automated gate with the vehicle booking system where truck drivers are required to book appointments in advance.

“This also supports the initiative of the Lagos State Government with regards to the comprehensive call-up system for the Lagos Free Zone, Lekki Port, Dangote Free Zone, Dangote Refinery and the Pinnacle Oil and Gas.

“We are in active discussions with the Lagos State Ministry of Transport and other stakeholders on the deployment of the call-up system for the Lekki area and we have confidence that the coming onboard of the call-up system for trucks will address any concerns that prospective port users would have over access to the port,” he said.

Beyond the road, he said that Lekki Port is also exploring the possibility of moving cargo by barges and has been able to execute more than five barge moves of over 900 twenty-foot equivalent units of containers (TEUs) from Lekki Port to the Ikorodu area of Lagos.

They took reporters on a tour of a completed  truck park situated very close to the port and according to him, it has  the capacity to accommodate 150 trucks at a time

He commended the efforts of the management of NPA, Federal and Lagos State Governments in constructing the roads, which he said has improved significantly.

In his remarks, the Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko who was represented by Mr Ikechukwu Onyemakara, described Lekki Port as Nigerian project and assured that the agency would do everything within it powers to grant necessary approvals and  provide up to date marine services to customers doing businesses at the port.

Addressing reporters, the Chief Executive Officer of Lekki Freeport Terminal, Yann Magarian, said the Lekki Port can do a lot for Nigeria in terms of generating revenue worth billions of dollars and create thousands of jobs for them

He disclosed that the port is fully automated to eliminate human contacts and well equipped as some of the equipment seen in the terminal especially the ship-to-shore crane at the port is mostly seen in big ports in Dubai, Singapore and other advanced countries of the world.

He told reporters that the Lekki Port would shape the maritime economy of the country, provide jobs for the people and concluded that many Nigerians are already working in the top echelon of the company.

• Approves N327.3b new contracts

Just 18 days to the end of the Muhammadu Buhari administration, the Federal Executive Council (FEC) yesterday considered some 37 memoranda, some of which were approved and for which an aggregate of N327.34 billion was earmarked.

 The Federal Government, however, explained that it has continued to entertain and approve such huge volumes of multibillion naira contracts because it is the duty of the administration to continue working for Nigerians until its very last day in office.

Ministers, who addressed correspondents after the week’s Council meeting, presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja, managed to justify the reason for the large volumes of contracts being churned out in the last days of the administration.

 Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, who coordinated the post-FEC briefing, had described the day’s session as a very busy one, saying: “It’s been a very long day for everyone, 37 agenda items were considered for today’s meeting. Quite extraordinary”.

However, when reporters queried the need for turning out so many contracts when the administration is meant to be rounding off its activities and books, two of the six ministers addressing the briefing; Minister of Transportation, Mu’azu Sambo, and his Water Resources counterpart, Sulaiman Adamu, took turns to explain why it was not out of place to have such activities in the final days of an administration.

According to Sambo, “this government was elected to function from 2019 to precisely 29th of May 2023. Should we now stop functioning one month before the next appointment because we’re coming to the end of the tenure?

“This government must work. We expect the next government to also work until the very last day of their tenure”, he explained.

Backing Sambo’s explanation up, Water Resources Minister, Adamu, further explained besides the fact that the administration was inaugurated to serve Nigerians till its very last day, besides the fact that the incoming administration is expected to start off where the incumbent would sign off. 

“If I may add, there are processes and this process has started. We’re still operating the 2022 budget, we have agencies. These things are not just done in one day. We had lots of submissions to BPP to ICRC, all the agencies involved in the procurement, and they have to get ready.

“So, anytime they’re ready, it’s at that point that we have to submit. And like the Minister of Transportation said, we’re still in office technically until the 28th of May. So, we still have to operate and this is the instruction that we have from Mr. President.

“Since the elections were conducted, that government must continue to function regardless of elections and so on. And so we’re just doing our duty as we should serve in the country.

“We do not control the process, but when it’s completed and we’re still in office, we’re duty-bound to bring these memos to Council for Council to approve. Government is a continuum. There are still a lot of memos.

“I can assure you a lot of contracts will not see the light of day in the next one week or two. And for those, we don’t have any option but to let the process continue and then for the next government to come and continue. That’s what we face also. 

“Some of the very first memos we brought to council in 2015, for me, I had no idea when they started, but I had to be briefed on, this was the the way that it had to be and then we were brought in here. So, government is a continuum. And it should be seen as such.

“I think this administration should be given that full credit because, to a large extent, we have continued since 2015, to implement projects and programs that we didn’t initiate that which, in our assessment, were good for the country. We continued them, we didn’t jettison them, and we’re confident that the incoming administration will do the same”, he said.

Briefing on some of the memoranda that received approval at the meeting, Presidential Spokesman, Shehu, disclosed that N3.4 billion was approved as post contract consultancy fee for the construction of a 2nd runway at the Nnnamdi Azikiwe International airport, Abuja.

He added that the council also approved N449.9 million for the engagement of consultants for the development of masterplan for 17 airports in Nigeria.

“FEC approved N449.9 million for the engagement of consultants for the development of masterplan for 17 airports in Nigeria. The benefiting airports are located in Lagos, Abuja, Portharcourt, Kano, Owerri, Benin, Enugu, Maiduguri, Yola, Kaduna, Calabar, Ilorin, Sokoto, Ibadan, Jos, Akure and Katsina.

“The council also approved for post contract consultancy amounting to N3.4 billion for the construction of the 2nd runway and associated faculties at the Nnamdi Azikiwe international airport, Abuja.”

He also gave details of other approvals which included that of over N100 billion for the Ogoni community of Rivers State, Southern Nigeria.

“Two major contracts were approved for Ogoni. They include contract for a water project that has been awarded under the 2nd phase in Ogoni land, amounting to N22.8 billion.

“Approval was also given for the award of contract for the remediation of newly identified hydrocarbon impacted sites along the shoreline of Ogoni land and this is for about N107 billion,” he said.

Shehu further announced that of N90 billion was approved for the completion of various roads totaling over N125 billion.

He also said N10.3 billion was approved for the construction of a multi-story office complex of the Federal Inland Revenue Service in Lagos, as well as over N33 billion for the completion of some major roads in Borno, Adamawa, Kogi, Delta, Ondo, Ogun and Benue States.

Meanwhile, the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, disclosed that Council approved of three key policies aimed at driving economic growth and attracting domestic and international investors.

According to him, policies included the Nigeria Investment Policy (2023-2027), the Nigeria Automotive Industry Development Plan (2023-2033), and the Trade Policy of Nigeria (2023-2027).

He highlighted the significance of these policies in stimulating investment, strengthening the automotive sector, and enhancing trade, with the ultimate goal of bolstering the nation’s economy and increasing revenue.

The Minister of Sports and Youths Development, Chief Sunday Dare, who also spoke to journalists after the meeting, said Council approved N2.4 billion for the construction of a National Sports Medicine and High Performance Center at the Moshood Abiola Stadium in Abuja.

“The Ministry of Youth and Sports Development presented just one memo. The memo has to do with the National Sports Medicine and High Performance Center and the construction of a High Performance Center at the Package B of the Moshood Abiola Stadium.

“Over time in the last past decades, one of the drawbacks of sports development and athletes development has been the lack of a high performance center. Global sports development practice has High Performance Center as a major component of conditioning its athletes, it takes your athletes beyond just raw talent to some level of sports science and precision.

“The lack of that scientific input into our sports development over time has not helped us to reach the maximum podium performance that can be attained by athletes”, he said.

Also, Minister of Agriculture and Rural Development, Mahmood Abubakar, disclosed that Council approved the National Dairy Policy to regulate Nigeria’s dairy industry to satisfy demand for milk and other products.

“The memorandum presented to Council today was to seek Council approval for the draft National Dairy Policy to regulate the Nigerian dairy industry by providing a framework and guiding principles for the development of an efficient dairy sub sector to satisfy the national demand for milk and dairy products.

“We have always been talking about food security, but we realize that food and nutrition security goes hand in hand”, he stated.

For the Ministry of Transportation, the Minister, Sambo said Council approved N4.3 billion for the procurement of security gadgets for the Nigeria Railway Corporation.

He said the equipment include scanners, metal and bomb detectors and narcotics detectors among others explaining that the gadgets will help improve security in the rail transportation segment in the wake of rising security challenges.

He also informed that Council approved a total sum of N8.6 billion for the purchase of houses that will serve as office accommodation for the Nigerian Maritime Administration and Safety Agency (NIMASA) in Port Harcourt and Abuja.

Nigeria cannot produce its current technical  allowable capacity of 2.5 million barrels per day because of insecurity, low investment, reduction of funding due to energy transition.

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive Officer, Gbenga Komolafe, an engineer, made this known yesterday in his address “The Implementation of The Host Communities Development Trust”, at the Host Communities Stakeholders meeting in Abuja.

According to him, owing to the constraints, the country is  producing 1.5million barrels of oil and condensate, indicating a shortfall of 1mb/d.

 “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day.

“However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” said the CEO.

Komolafe said: “While the Commission is prioritising efforts towards increasing oil and gas production and ensuring maximum Federation revenue through the optimisation of oil and gas value chain, the efforts have been constrained by myriad of challenges ranging from insecurity, low investment, de-prioritisation of funding of hydrocarbon development arising from energy transition.”

He however noted that to

further stem the tide of sabotage and third-party interferences on oil and gas critical infrastructure,

the Petroleum Industry Act (PIA) has in effect domesticated the protection of the Nigeria’s oil and gas infrastructure to the Host Communities.

The CEO said  one critical milestone under the PIA is

the incorporation of Host Communities Development Trust (HCDT) by the settlor provided for

in Section 235 as well appointment of Board of Trustees (BOT) by the settlor in consultation with the

host communities.

Komolafe said the settlors are the Oil and Gas companies operating within host communities.

Section 240 (2) of the PIA stipulates that each settlor,

where applicable through the operator, shall make an annual contribution to the applicable host

communities development trust fund of an amount equal to 3% of its actual annual operating

expenditure of the preceding financial year in the upstream petroleum operations affecting the host communities for which the applicable host community’s development trust fund was

established.

He added that Section 247 of the Act requires the Board of Trustees to set up a Management

Committee which shall be responsible for the general administration of the Host Communities Development Trust Fund.

The Management Committee, he said, in turn is required to set up an Advisory Committee, who advises on activities as well as monitors and reports progress of projects being executed in the community to the Management Committee.

Komolafe further noted that the Act requires that the host communities should be represented in the Board of Trustees, Management Committee and Advisory Committee.

According to him,  “the Section

244 of the Act also provides an allocation formula upon which the Board of Trustees (BoT) shall on

annual basis allocate sums of money from the HCDT

trust fund, as follows:

i. 75% to the capital fund to be disbursed for projects in each of the host communities;

“ii. 20% to the reserve fund to be invested for the utilization of the host communities development trust whenever there is a

cessation in the contribution payable by the settlor; and “ii. an amount not exceeding 5% to be utilised

solely for the administrative cost of running the trust and special projects.”

Continuing, he said, in Section 245, the Act bestows the responsibility on the settlor to provide to the Board of Trustees a matrix for distribution of the trust fund to the host communities.

Komolafe said  on the other hand, the Act under Section 235(6)

empowers the Commission to “make regulations on the administration, guide and safeguard the utilization of the trust fund and have the oversight responsibility for ensuring that the projects proposed

by the Board of Trustees are implemented.”

He noted that in exercising these powers, the Commission had

consulted widely with industry stakeholders in line with Section 216 of the PIA, 2021 and on 28th of June 2022 made a tremendous stride by unveiling the

Nigeria Upstream Petroleum Host Communities Development Regulations, 2022 as well as the Host Communities’ Development Trust Implementation

Template to give meaning and intent to the spirit of the Act.

 With the Regulations and Template in place, he said, the commission has now defined clear navigational

path regarding the administration, management, and allocation of funds for development of the host

communities as well as clear grievance resolution

mechanism for settlement of disputes.

Komafe also revealed that the regulations and the implementation template can

be accessed via the Commission’s website.

NUPRC, he said has successfully approved seventy-five (75) Host Community Development Trusts out of which forty-one (41) have been fully incorporated by the CAC.

The CEO noted that the commission has also pre-qualified a total of nineteen (19) Fund Managers and commenced the process of establishing a

baseline of ongoing community development projects, in preparation of ensuring the migration of such into the HCDTs.

He added that the Commission has in partnership with an OEM developed an industry

intelligent, digital automated platform for reporting and monitoring the Host Community Development

Trust (HCDT) for transparent administration of the Host Com provisions of the PIA.

Komolafe disclosed that the portal has been designed to meet specific requirements of HCDT as

enshrined in the PIA and will aid all stakeholders (including the Settlors, Board of Trustees,

Management Committees, Advisory Committees, Fund Managers etc) to fulfil their obligations to host communities and promote accountability and transparency in the management of the HCDT program as well as enable quick feedbacks from the stakeholders and the public for the Commission to carry out its regulatory oversight effectively.

He noted that it  is expected that the workshop would deliberate on the industry that benefits all Nigerians, particularly those in the host communities.

Britain’s highest court ruled yesterday it was too late for people in Nigeria’s Niger Delta region to lodge pollution claims against energy giant Shell after a huge oil spill more than one decade ago.

The Supreme Court said in a statement that its five judges “unanimously” rejected an appeal over the 2011 spill, upholding prior rulings that claims were not made before a legal deadline.

Nigerian claimants said their shoreline faced a “devastating impact” from a leak at the Bonga oilfield, which unleashed 40,000 barrels of crude into the Gulf of Guinea.

Shell said the spill was swiftly contained.

The claimants had sought to overturn rulings from two lower courts, arguing that the oil spill constituted a “continuing nuisance”, a legal definition to which the deadline would not apply.

The Supreme Court, however, disagreed and declared the leak was a “one-off event or an isolated escape”, in a judgment, which does not affect a separate legal action against Shell over other spillages.

“The claimants’ argument that there is a continuing nuisance, because on the assumed facts oil is still present on their land and has not been removed or cleaned up, is rejected,” said judge Andrew Burrows.

“There was no continuing nuisance in this case because outside the claimant’s land, there was no repeated activity by the defendants or an ongoing state of affairs for which the defendants were responsible that was causing continuing undue interference with the use and enjoyment of the claimants’ land,” the apex court rule.

The Supreme Court noted however that the 2011 spill was “one of the largest spills in Nigerian oil exploration history”.

The London-listed energy major welcomed the judgement on Wednesday, but said the spill was “regrettable”.

“It was clear from the start that these claims were unfounded and brought entirely out of time,” a Shell spokesperson said.

“Today’s decision… rejected the claimants’ case that Bonga oil could have become trapped and re-mobilised years later, migrating upstream and impacting the claimants’ communities.

“While the 2011 Bonga spill was highly regrettable, it was swiftly contained and cleaned up offshore.”

Lawyers for the claimants said they had no comment when contacted by AFP.

Nigeria, Africa’s biggest crude producer, has struggled with oil spills for decades.

Shell faces a separate ongoing legal case in Britain, after the Supreme Court ruled in February 2021 that more than 50,000 people in the Niger delta region can make pollution claims in English courts.

The ruling overturned a 2017 decision against the Ogale and Bille communities, who brought legal claims for clean-up and compensation following decades of repeated spills in the crude-rich region.

 Nigeria scored a double yesterday with the launch of the country’s first regulated commodities fund, in a major boost for the national agricultural agenda and the fast-growing alternative investment segment of the capital market.

The Marble Halal Commodities Fund (MHCF), promoted by Marble Capital Limited, was launched yesterday in Lagos. It is the first commodities fund to be approved by the Securities and Exchange Commission (SEC).

The launch also signalled the opening of application list for the MHCF’s initial public offering (IPO) of N3 billion. MHCF is offering 30 million units at a par value of N100 per unit. The structure of the fund allows it to absorb oversubscription.

MHCF is an open-ended fund, which allows it to accommodate new investors from time to time.

MHCF will invest in commodities-linked instruments and it will operate based on the principles of Shari’ah and as such, it will only invest in halal -certified investment instruments.

At the launch in Lagos,  SEC Executive Commissioner, Operations, Dayo Obisan, said the fund would play a key role in the attainment of the 2015-2025  Nigerian Capital Market Master Plan of the Commission.

He noted that one of the cardinal points of the master plan was for 25 per cent of the market capitalisation to come from non-interest areas such as MHCF.

According to him, the new asset class was designed not only to impact the financial market, but the entire economic sector, especially but not limited to agricultural industry.

Chief Executive Officer, Marble Capital Limited, Akeem Oyewale said the fund would enhance product diversification in the Nigerian economy while preventing loss of investments to Ponzi schemes and funny crowd funding programmes.

According to him, the main objective of the fund is to provide investors with income diversification and generate returns by investing in diverse halal- compliant instruments.

“In addition, the fund would also contribute to the economic growth of the country. We believe that we will be able to formalize a lot of non-formal agricultural investments and that would allow investors to scale investments opportunities.

“The Marble Halal Commodities Fund is open to both retail and institutional investors and compliant with the PenCom guidelines for mutual fund investments. The minimum amount required for investment is N50,000, ” Oyewale said.

Chairman, Marble Capital Limited, Alhaji Ali Ango said the fund would be invested in a series of commodities-linked instruments, including gold and precious metals among others.

“The fund is forward-looking and will be able to adapt to these asset classes as they become available and are approved by the regulators. The launch is timely, especially,  coming from the raging floods that ravaged Nigeria last year, prompting commodities exchanges not only to prioritize agriculture production but also processing and the act of off-taking which  can add value. The federal government has agreed to support the farmers who lost a lot last year. This is why the launch is timely,” Ango said.

An Analyst at Marble Capital Limited, Ibrahim Jimoh explained that there was 90- day period after which the funds invested can be redeemed.

He stressed that N50, 000 was the minimum which translates to 500 units at the rates of N100 per unit.

The ceremony  was attended by many chief executive officers in the financial market and other captains of industry.