The Nation Newspaper

Category: Special Report

  • Siege on smugglers’ paradise

    One week into the “Exercise Swift Response’, the heat bites harder on Nigeria’s neighbouring countries, as economic activities are gradually grinding to a halt, MUYIWA LUCAS reports

    Travellers on the Seme-Krake route have tales of woes to tell. The rigorous stop-and-search operation at all the over 12 roadblocks counted between Igboelerin and Seme axis presents more than enough pains for commuters. The roadblocks, mounted by men of the Customs, Immigrations, the police and Army, have created long queues of vehicles and passengers who ply the route. There are long queues of vehicles and human traffic arising from the intensive check at the Igbaji checkpoint.

    With the intense searching, and security operatives pursuing smugglers into unconventional roads to effect the arrest, activities at the Seme-Krake border in the last week have further buttressed the position that smuggling activities are what makes the axis tick.

    Nigerians, as well as other nationals at the border, have continued to groan in hardship over the ongoing exercise. From the Okada riders, transporters, currency traders (black market) to Cross-Border traders, tales of woes is on everybody’s lips.

    When The Nation visited the Seme-Krake border on Wednesday, economic activities were at its lowest ebb. At the border post, the Customs scanner section remained closed, while petrol attendants at the ConOil filling station at the border were on holiday.

    A visit to the ECOWAS building in Seme revealed the extremely low level of economic activities. At the immigration section of the building, less than 15 travellers were seen processing their travel documents either into or out of the country. Pedestrians trying to go through the border without valid travel documents were turned back at both ends.

    Over 1000 trucks carrying different goods were also seen parked at the huge landmass around the ECOWAS building. The trucks were those waiting for clearance but the restriction of movement at the border. At the scanning section of the Customs, not a single consignment was seen, just as trucks parked at the examination bay of the Service were left unattended to. As a result of this, banking activities at the border is also suffering. With no duties to be paid, and travel restricted, the First Bank office at the border remained virtually on holiday yesterday.

    A truck driver, Ibrahim Zana, said he and his colleagues have been stranded at the border since the restriction of movement commenced. He explained that some perishable items some of his colleagues conveyed from Benin republic have gone bad. He added that one of his colleagues require medical attention but cannot get the same because they have run out of cash.

    Official position

    Joseph Attah, Deputy Comptroller, Nigeria Customs Service (NCS) and National Public Relations Officer, said: “The Office of the National Security Adviser (ONSA), which is coordinating the exercise is already recording large numbers of seizures and arrests from the four sectors comprising the Northwest, Northcentral, South-West, and Southsouth geopolitical zones. As at 26th August 2019, 33 illegal migrants have been arrested while seizures include: 3,560-50kg bags of parboiled foreign rice; 59 bags of NpI (fertilizer); 15 vehicles; 12 drums filled with PMS; three engine boats; 61 drums of groundnut oil; four trucks; 75 gallons of PMS; 29 motorcycles; six gallons of vegetable oil; 70 jerricans of PMS; among other items,” he said in a statement.

    or Attah, this feat is a positive for the operation, which is barely a week old and seen as a strong resolve by the Nigerian security agencies to better secure the country’s territorial integrity, particularly the land and marine borders against transborder security concerns. The exercise has led to the partial closure or restriction in movement between the country’s borders and those of the Republic of Benin, Niger and Chad as well as that of the Central African country of Cameroon.

    The exercise, led by the NCS and the Nigerian Immigration Service (NIS), in collaboration with the Armed Forces as well as the police and other Security and Intelligence agencies, may have started yielding dividend in terms of securing the country’s borders, but it has continued to inflict pains on the economy of not only Nigeria but also that of other neighbouring countries whose economy depends on that of Nigeria. The joint exercise is taking place in four geopolitical zones, namely; Southsouth, Southwest, Northcentral and Northwest.

    Ripple effect

    A peep across the border towards the Krake (Benin Republic) end also shows the near-comatose economic activity on the side. A Nigerian traveller from Togo, shortly after completing his documentation at the Nigerian Immigration, told The Nation that business activities from Togo are at a standstill. He said several trucks are parked at the entry points of the two countries of Togo and Benin Republic, waiting to enter Nigeria with their consignment.

    Security sources at the Seme-Krake border told The Nation that the ongoing exercise has further shown that Nigeria is the main economic power of its neighbours. For instance, the sources explained that the ripple effect of the exercise in Nigeria has taken a toll on the price of petrol in the Benin Republic, which is said to have risen by about 150 per cent.

    Already, sources from across the various borders warn that if the border closure continues, the Bennoise, Nigeriens and Chadians economies will be the worse for it. The situation is believed will be worse off in Republic of Benin, where the people are said to be getting agitated over the closure. This is for no other reason but the dwindling fortunes of their income.

    Sources in security circles told this reporter that the flagrant disrespect for trade agreement led the Federal Government to decide on her borders. For instance, it is believed that the country had taken advantage of their business relationship with importers from Niger and Chad, both landlocked countries, to allow their transit cargos, particular, foreign parboiled rice, which pass through Benin Terminal, Cotonou and Bollere seaport, to end up in the Nigerian market. This has weakened the government’s resolve on the ban on foreign importation of some commodities into the country and disrupting the policy on local rice production.

    t is worthy of note that the volume of rice importation into the Republic of Benin had risen over time. The country’s rice imports are handled by four multinational companies and between 20 to 30 smaller small rice importers. These importers include African Agro Foods, with Headquarters in Pan Lebanese Group, Dubai, United Arab Emirate, UAE, Di Fezi Fils, Sonam linked to the Stallion Group in Dubai, which also have an operational base in Lagos, and ABC Enterprises.

    A breakdown of these companies share of rice import into the Benin Republic indicate that African Agro Foods Imports 360, 000 MT or 30 percent of the rice needed in the country; Di Fezi Fils, 300, 000 MT or 24 percent; Sonam, 240,00 MT and 20 percent ABC enterprises, 10,000 MT or one percent while other rice importers bring into the country 290,000 or 24 percent of the total rice imports of the country.

    ith a small population, experts explained that the country can’t consume such volume of rice. Since June 2015, market watchers say, rice imports into the Benin Republic has increased tremendously, finding its way into the Nigerian market notwithstanding that the Central Bank of Nigerian (CBN), led by Godwin Emefiele, included the prohibition of foreign exchange to rice and 43 other products. Virtually all the parboiled rice imports into the Republic of Benin are smuggled into the Nigerian market through unapproved routes.

    A Nigerian returning from Togo, en route Benin, who simply identified himself as Fatai, explained that the economy of Togo and Benin Republic are already in comatose as a result of the situation. He disclosed that some consignment of bulk rice cargoes that had arrived at the Benin terminal and Bollere ports are still waiting to be discharged. He said practically all the warehouses in the two countries are filled with rice awaiting evacuation to Nigeria.

    Similarly, across the other regions, a report by The Value News, an online publication, has it that indigenes of the Border Communities in the Northwest and Northeast are also severely hit by the exercise. The report says that from Matamaye, Magarya, Babura, Mai mujiya, Tikim, and other Border communities in Kano and Jigawa states which fall within the Zandar region directly linking Niger and Nigeria in the south, are now a shadow of itself: low economic activities of buying and selling of traded goods.

    According to the report, Nigerien traders’ major worries was that between Wednesday, August 23 when the exercise starts and now, they have not been able to access the ancient city of Kano, which is the commercial nerve centre of northern Nigeria, to buy goods because of the tight security. It is imperative to say that it is only from these border communities that transit cargoes from Benin could be supplied Niger.

    A bureau de change operator, who identified himself as Gilli, a resident of Amaimujiya, a border community, said his business had been at the lowest ebb since last Wednesday when the exercise began.

    ‘’My Bureau de Change business has virtually closed because of lack of patronage,’’ he said.

    Nigerians also cry

    he lawmaker representing Badagry constituency in the House of Representatives, Babatunde Hunpe, has urged residents to remain calm and supportive over the ongoing Joint Border Security Exercise in the area.

    “It is not only the Seme border that is affected by the Federal Government’s directive, but it also affects many communities in 25 states across Nigeria. I want to appeal to my people to let peace reign by going about their normal daily activities peacefully. Badagry communities should cooperate with the special task force created by the Federal Government to enable them to achieve their aims,” Hunpe said.

    Ignoring the ECOWAS treaty?

    But while the focus is on security, the promoters of the partial closure of the border, or restriction of movement at the border, as Attah prefers to call it, seem to have ignored the breach of trade agreements between ECOWAS countries.

    Trade and market integration are at the heart of ECOWAS’ aims and objectives. Article (3) of the Revised Treaty of ECOWAS stipulates the removal of trade barriers and harmonisation of trade policies for the establishment of a Free Trade Area, a Customs Union, a Common Market and an eventual culmination into a Monetary and Economic Union in West Africa.

    The ECOWAS Trade Liberalisation Scheme (ETLS) adopted in 1979 with an agreement on agricultural, artisanal handicrafts and unprocessed products, and extended to industrial products in 1990, is the main framework for trade and market integration in ECOWAS as it addresses protocols on the free movement of goods, persons and transportation. The ETLS main pursuit of consolidating the free trade area is guided by the National Approval Committees that informs the member States.

    For this purpose, ECOWAS established an ETLS website to ease harmonisation and usage of it. In this regard, ECOWAS thus implemented a Customs and Connectivity programme to simplify the movement of goods in the region. The ECOWAS Common External Tariff has thus been operational since 2015. Moreover, member states are increasingly implementing the ECOWAS Single Customs Declaration Form for their customs administrations. The World Bank-sponsored Abidjan-Lagos Trade and Transport Facilitation Programme for Benin and Nigeria is one such example. Burkina Faso and Togo are likewise operationalising the scheme. Nevertheless, there are said to be challenged in regards to poor domestication of the ETLS, which needs to addressed for deepened trade and market integration in the ECOWAS region.

    But how long will this calmness remain given the increasing economic hardship being experienced? Are there no means of ensuring security while trade continues? Time, only time, will tell.

     

     

  • Will Abuja toe Moscow’s path?

    THE United States had a visa reciprocity challenge with Russia. But after engagements, both countries came to an agreement to reduce the visa fees.

    With effect from March 4, the agreement between Moscow and Washington led to Russians and Americans paying less for visas.

    The Russian Foreign Ministry, in a statement announcing the new development, said:  “An agreement has been reached with the US to restore the application fee of $160 for all types of visas issued in accordance with the 2011 bilateral agreement easing visa restrictions,” the statement reads.

    The ministry added that the development is “a good example of mutually beneficial cooperation, which will help boost business, humanitarian, cultural and tourism ties between the two countries’ people”.

    In January, an additional fee of $143 for tourist and business visas for Russian citizens was introduced.

    “We consider it to be a positive step that will facilitate business and tourism ties between our countries,” said spokesperson for the US embassy in Moscow Andrea Kalan.

    Now as part of the deal, the United States and Russia issue mostly three-year multiple-entry visas to each other’s citizens.

    Kalan said: “The parties have agreed to issue mostly three-year multiple-entry visas,” she said, commenting on an agreement Washington and Moscow made to reduce application fees for all types of visas to $160 starting on March 4.

    “People-to-people diplomacy increases understanding between our countries through the trips our citizens make and creates a wide range of possibilities for cooperation.”

    For Nigerians, it will be cheery news if Abuja engages Washington meaningful and both parties cut the visa fees. It will also not be a bad idea if like Russians, Nigerians can get three-year multiple-entry visas.

    The ball seems to be in Abuja’s court. Will it go the Moscow way?

     

    Q & A

     

    Why are Nigerian citizens being charged an extra fee to get a visa? What is reciprocity?

    The United States requires citizens of countries that charge higher visa fees than those charge to U.S. citizens for a commensurate visa to pay a nonimmigrant visa issuance fee, or reciprocity fee, after their application is approved.

    The fees are based on the principle of reciprocity. U.S. law requires that we treat citizens of other countries the same as those other countries treat U.S. citizens, with respect to the fees and validity periods associated with nonimmigrant visas. Reciprocity fees are enacted when a foreign government charges higher fees to U.S. citizens for certain types of visas.

    The government of Niger currently charges additional fees to U.S. citizens applying for visas to Nigeria, resulting in a non-reciprocal arrangement between Nigerian citizens and U.S. citizens. After over eighteen months of negotiations, the government of Nigeria did not change its fee structure for U.S. citizen visa applicants in accordance with Section 281 of the U.S. Immigration and Nationality Act (INA). This section of the law provides that the Department of State establish visa fees corresponding to the total of all visa, entry, residence, or other similar fees, taxes, or charges assessed or levied against nationals of the United States.

    Are only Nigerian citizens required to pay a reciprocity fee to get a U.S. visa?

    No. The U.S. Department of State reviews the amounts charged by foreign governments to U.S. citizens for their visa applications on a regular basis, and adjusts our fee schedules accordingly.

    The current reciprocity fee schedule for citizens of all countries can be found at: http://travel.state.gov/content/travel/en/us-visas/Visa-Reciprocity-and-Civil-Documents-by-Country.html

    What is the difference between the reciprocity fee and the nonimmigrant visa application fee (MRV fee)?

    The nonimmigrant visa application fee, also known as the MRV fee, is a nonrefundable fee paid by most applicants for U.S. visas, whether the application is approved or refused. It covers the total costs associated with processing a U.S. visa application, from registration, to biometric collection, to courier services for passport delivery, among other costs.

    While all visa applicants are required to pay the MRV fee each time they apply for a visa, the reciprocity fee is only charged to approved nonimmigrant visa applications for citizens of certain countries.

    How do I pay the new reciprocity fee? Can I pay in advance?

    Payment for the new reciprocity fee can only be made after a consular officer has interviewed an applicant and approved their application.

    When the application has been approved, the applicant must pay the fee using cash, in Naira or U.S. dollars equivalent, corresponding to the current exchange rate as dictated by the Embassy or Consular cashier. Payment must be made at the cashier window located inside the waiting room of the Embassy or Consulate where applicants are interviewed.

    It is very important that applicants only pay the fee at the cashier window within the Embassy or Consulate after a nonimmigrant visa application has been approved.

    What if an applicant’s visa application is approved, but the applicant cannot pay the reciprocity fee on the day of their interview?

    We recommend that applicants come to their interview prepared to pay the reciprocity fee. Applicants whose nonimmigrant applications are approved will be given instructions on how to return to the Embassy or Consulate to pay the required fee within five business days. The visa will not be issued or printed until the reciprocity fee is paid.

    Can Nigerian citizens apply for a visa in a different country to avoid paying the reciprocity fee?

    No. The reciprocity fee applies to all Nigerian citizens, regardless of where in the world they are applying for a nonimmigrant visa to the United States.

    Can Nigerians pay one reciprocity fee for all applicants in their group?

    No. The reciprocity fee applies to each individual application, regardless of how many travelers apply for the same purpose of travel. Applicants of all ages are required to pay the fees, both minors and adults

     

  • U.S. blames Fed Govt for changes in visa fees

    For years, Americans travelling to Nigeria as tourists or businessmen paid more money as visa fees than Nigerians going to the United States for similar reasons. That will end tomorrow, reports VINCENT IKUOMOLA

     

    NIGERIANS applying for tourism, student, media and business visas to the United States will have to pay issuance fees, the United States Embassy in Nigeria announced on Tuesday. The new fees are aside from the $160 or N59, 200 processing cash for all visa categories.

    The embassy adopts the rate of N370 per $1 for Nigerians. The official rate is about N360 to a dollar.

    The new policy takes effect tomorrow. For a start, applicants will be given five working days’ grace to compile with the new regime.

    For a tourist visa, an extra $110 or N40, 700 will be paid after the visa has been issued to the applicant. Applicants, whose applications are denied, will not need to pay the extra $110.

    Applicants seeking the work permit otherwise known as L1 Visa will pay an extra N112, 100 if given visas while those applying for dependency/spousal visa (H4 visa) will pay an extra N66, 600.

    The embassy’s statement added that the increment was done based on reciprocity, which means when a foreign government imposes additional visa fees on U.S. citizens, the United States will impose reciprocal fees on citizens of that country for similar types of visas. Until this change, American citizens willing to come to Nigeria were charged higher than Nigerians willing to go to the U.S.

    The embassy blamed the Federal Government for the reciprocity fees for refusing to remove the additional cost imposed on Americans.

    Its statement reads: “Effective worldwide on 29 August, Nigerian citizens will be required to pay a visa issuance fee, or reciprocity fee, for all approved applications for nonimmigrant visas in B, F, H1B, I, L, and R visa classifications. The reciprocity fee will be charged in addition to the nonimmigrant visa application fee, also known as the MRV fee, which all applicants pay at the time of application. Nigerian citizens whose applications for a nonimmigrant visa are denied will not be charged the new reciprocity fee. Both reciprocity and MRV fees are non-refundable, and their amounts vary based on visa classification.

    “U.S. law requires U.S. visa fees and validity periods to be based on the treatment afforded to U.S. citizens by foreign governments, insofar as possible. Visa issuance fees are implemented under the principle of reciprocity: when a foreign government imposes additional visa fees on U.S. citizens, the United States will impose reciprocal fees on citizens of that country for similar types of visas. Nationals of a number of countries worldwide are currently required to pay this type of fee after their nonimmigrant visa application is approved.

    “The total cost for a U.S. citizen to obtain a visa to Nigeria is currently higher than the total cost for a Nigerian to obtain a comparable visa to the United States. The new reciprocity fee for Nigerian citizens is meant to eliminate that cost difference.

    “Since early 2018, the U.S. government has engaged the Nigerian government to request that the Nigerian government change the fees charged to U.S. citizens for certain visa categories. After eighteen months of review and consultations, the government of Nigeria has not changed its fee structure for U.S. citizen visa applicants, requiring the U.S. Department of State to enact new reciprocity fees in accordance with our visa laws.

    “The reciprocity fee will be required for all Nigerian citizens worldwide, regardless of where they are applying for a nonimmigrant visa to the United States. The reciprocity fee is required for each visa that is issued, which means both adults and minors whose visa applications are approved will be charged the reciprocity fee. The fee can only be paid at the U.S. Embassy or the U.S. Consulate General. The reciprocity fee cannot be paid at banks or any other location.”

    2017 executive order

    President Donald Trump, in a 2017 executive order, pushed for stricter visa reciprocity terms. In the executive order, he urged the secretary of State to “review all non-immigrant visa reciprocity agreements” in respect of validity periods and application fees.

    “If a country does not treat United States nationals seeking nonimmigrant visas in a reciprocal manner, the Secretary of State shall adjust the visa validity period, fee schedule, or other treatment to match the treatment of United States nationals by the foreign country, to the extent practicable,” the executive order read.

     Dropbox suspension

    The embassy had in May suspended its dropbox visa renewal programme for Nigerians with travel history to the United States.

    The statement suspending the programme reads: “Effective at the close of business today, Tuesday, May 14, 2019, the US Mission to Nigeria is indefinitely suspending interview waivers for renewals, otherwise known as the ‘Dropbox’ process.

    “Visa applications will no longer be accepted by DHL in Nigeria. Those who have already submitted their passports via Dropbox to DHL for processing either at the US Embassy in Abuja or the Consulate General in Lagos, will not be impacted by this change.

    “All applicants in Nigeria seeking a non-immigrant visa to the United States must apply online and will be required to appear in person at the US Embassy in Abuja or US Consulate General in Lagos to submit their application for review. Applicants must appear at the location they specified when applying for the visa renewal.

    “Processing of diplomatic and official (A, G, and NATO class) visa applications will continue unchanged.”

    It added its processing procedures are regularly reviewed to “assess our ability to quickly, efficiently, and securely process visa applications”.

  • Freeing electricity market from politics

     

    For Nigerians to enjoy uninterrupted power supply, the government must free the sector from political interference and allow power contracts and market fundamentals to take their cause, writes JOHN OFIKHENUA.

     

    IT was meant to change things for the better. But, things have remained the same, if not worse. The 2013 calculation, which saw the Federal Government divesting 60 per cent of its stake in the electricity distribution companies (DisCos) to 11 private investors and retaining 40 per cent, has failed. The government also privatised the generation companies (GenCos) but holds on to the Transmission Company of Nigeria (TCN), which wheels power from its generators to the distributors. Except that the Nigerian Electricity Supply Industry (NESI) prides itself with installed capacity, the power that is available for consumption is still about an average of 3,000Mw. It is marginally higher than where the private investors started from when actual power sent out was slightly above 2,000mw. However, for political capital, the Federal Government has been reluctant to base its decision on economic parameters. Therefore, it has remained an onlooker while the DisCos and the TCN trade the blame of who is responsible for the immutable darkness in the country.

    Ministry of Power Permanent Secretary Dr Louis Edozien told Minister of Power Mamman Sale and Minister of State for Power Goddy Jedy Agba that the Power Purchase Agreements the government had with the investors was not friendly because it compels the government to pay for unused electricity. Thus, whenever the DisCos reject the load that the System Operator allocates to them, the Federal Government, which the Nigerian Bulk Electricity Trading (NBET) Company interfaces for, pays for the shortfall.

    Edozien said: “We (Federal Government) created an industry that places a huge contingent liability on the government. We have to apply our intellect to this problem to solve it … The Minister of State, I know that is an area you are familiar with. Both of you have to lead us out of this quagmire.” But the nagging question is how the government can free itself from the dilemma. Will the government cease paying for the shortfall? President Muhammadu Buhari has already approved N600billion for onward disbursement into the sector. The intervention is coming after the depletion of the N701billion Payment Assurance Guarantee for the GenCos.

    NBET Managing Director Dr Marilyn Amobi told the ministers on resumption last week that: “We manage through the Federal Government any credit facility that is provided in the industry. And in that regard, we concluded the management of the N701billion, which was the payment assurance provided to NBET as a loan to enable it to carry out its purchase with the Generation Companies. This was approved on the 1st of March, 2017. And within that context, it was a loan that the CBN gave to us at 5 per cent. And currently, the government is discussing an expansion of another N600billion that will make it N1.3billion. Before this, we had a shareholder loan of 350million Euro from European bond which was given to NBET as a share loan capitalisation. We managed it and successfully we paid back to the Debt Management Office last year- the principal and interest elements. We still have the bit of that about N1.2billion to be able to repay to conclude that…But one thing you will hear is the question around undelivered power that we have made. So, in summary, since the Transition Electricity Market stated till today, at the last payment, last month, the company has borne a payment of N181billion to five generation companies based on their contracts with us but for electricity that Nigerians did not use.”

    Unless the Nigerian Electricity Regulatory Commission (NERC) allows a cost-reflective tariff in the electricity market, the DisCos, analysts argue, will continue to hold the government and consumers by the jugular. The courage to do that is, however, far-fetched. Just this year, after listening to stakeholders in the power sector at a NERC workshop on Eligible Customer Regulation in Abuja on February 12, Edozien dropped a hint that the government would cease paying for the electricity shortfall, stressing that it was not the government’s obligation.

    According to him, the consumers should pay for the power they consume, adding: “In addition to that 2,000 MW, the 4,000mwh that is consistently being delivered is not fully paid for. Government through the nation’s insurance programme is paying the generation companies for any shortfall payment from NBET.”

    He went on: “Clearly that is not what the act intends the industry to be. And ultimately the government has to exit from this role. So, it is this regulation that will ensure that not just stranded power but delivered power, is delivered to consumers who are contractually bound to pay for it. And if they do not pay for it they, do not enjoy the service.”

    But he was to recant his words as soon as the stories went virile in the media.

    Read Also: Electricity equipment vandals arrested

    Only last week, the NERC released an upward review of the Multi-Year Tariff Order (MYTO) on its website. A day after the media feasted on it, the commission’s chairman, Prof. James Momoh, in an interview with reporters after the inaugural meeting of the ministers in the Power House, he expressed his readiness to defend the approved hike to whoever cares, including the opposing Nigeria Labour Congress (NLC).

    He said: “If any customer or NLC comes, we will show them how we did it. And I am sure they (NLC) will show the customers how we did it to understand us.”

    Surprisingly, the commission issued a statement the next day that it was yet to approve any tariff for the DisCos.

    NERC General Manager, Public Affairs Usman Arabi,   in a statement, said the commission  was still consulting.

    “However, the commission in the discharge of its statutory responsibilities enshrined under the  Electric Power Sector Reform (EPSR) Act, shall continue to undertake periodic reviews of electricity tariffs in accordance with prevailing tariff methodology.

    “In all instances of such reviews and rule-making, the commission shall widely consult stakeholders and final decision shall be taken with  due regard of all contributions,” he said.

    Arabi said the minor review implemented by the commission was a retrospective adjustment of the tariff regime released in 2015

    He said this was to account for changes in macroeconomic indices for 2016, 2017 and 2018, “thus providing certainty about revenue shortfall that may have arisen due to the differential between tariffs approved by the regulator and actual end-user tariffs,” he said.

    The commission froze the tariff before the 2015 general elections. Analysts attributed this to the perceived outcry and negative publicity it would elicit against the then ruling government. On assumption of office, the present government simply took advantage of the prevailing directive to maintain the status quo. It has all been politics and semantics, say analysts. But the poser remains: When will the government and stakeholders divorce electricity business from politics?

    The Transition Electricity Market (TEM) should be activated so that the sector will thrive on a price mechanism, which is the interplay between demand and supply. Instead of this, a transparently defined electricity subsidy, said analysts, will cushion the effect of the cost of electricity on the consumers, especially the poorest ones. As high as the tariff will be, it will reach its equilibrium and subsequently decline when the supply of electrify exceeds the demand for it, argue observers.

    The low hanging fruits that the sector can harvest for the government to score its easiest goal with the electricity market are its ability to sustain the two major policies that former Minister Babatunde Fashola kicked-started. To enthrone the spirit of transparency, accountability and fairness for the investors and electricity consumers, the NERC introduced the Meter Asset Provider (MAP) policy. It relieved the DisCos the burden of funding metering. It is already in force with a considerable level of success. Besides, under Fashola’s watch, the commission also flagged-off the Eligible Customer regulation, which has not only incentivised bulk electricity consumers but also fascinated more international customers to the grid.

    Transmission Company of Nigeria (TCN) Managing Director Usman Gur Mohammed said the implementation of the eligible customer policy has not stopped. “It will move,” he said, stressing that “there is a new directive from the government that we reduce our liability. We cannot continue to carry liability on the national budget like this all the time. It doesn’t make sense.”

    Insisting on the separation of politics from the development of the power sector, he said the only contractors that would now be qualified to implement its projects would be those with the technical and financial capability. He said all contracts must now be completed within 18 to 24 months.

    The TCN boss added: “Now, we don’t need politics. We need infrastructure. After infrastructure, we can play politics.”

    As a result of political patronage, the company recorded 800 stranded containers in the ports, which Mohammed has almost cleared.

    Politics in the power sector has always come with corruption. Interest groups benefit from the spoils while the government looks on the other side. Yet the malpractice, which cuts across the different value chains over the years, is now fizzling out.

    According to Mohammed, it was only recently that the TCN was planning to relocate its National Control Centre from a rented property due to security reasons, that it realised that it was paying rent on its land in Osogbo.

    He said: “For your information, for several years we have been operating our National Control Centre, Osogbo, the land we use is rented land. We had been paying rent on that land for over 50 years. I am happy to announce that that land belongs to us and we are not paying rent again.”

    He was silent on the likelihood of the government recovering the 50-year rent.

    However, freeing the power sector from the corrupt practices and political interference must be with holistic. What the new ministers must do in a hurry to succeed is to quickly activate the government shares in the DisCos. Already it has increased its representation on the board of the companies. What is left for it to do instantly is the contribution to the recapitalisation of the firm. According to the TCN boss, “What we are saying is that to correct this thing, we have to recapitalise the DisCos. The recapitalisation requires $4.3billion, which means they have to bring the balance. What we are saying is that the government cannot be passive anymore… Government ownership should be represented by four directors just like proportional to the investment. The government should bring its own 40 per cent capital. We have simulated the grid to examine the investment requirement by the DisCos. And we have come to $4.3billion. Government is going to bring its 40 per cent of $4.3billion which is about $1.7billion.” The NERC, he said, is expected to draft the proclamation for the procurement of all the power equipment and contracts to insulate the money from public funds predators.

    As fantastic as these ideas are, the government, observers said, must wield the big stick were necessary to realise them. Since the excuse of the DisCos is that they cannot distribute power sufficiently because of lack of a cost-reflective tariff, it has become expedient for the government to allow a slight hike that will not weaken the consumers. This, it must also do with a strict implementation of the metering policy to ensure that no customer or government pays for unused electricity.

    Although a regulator should have a human face in its operation, it ought not to operate in a manner that it becomes obvious that it has no voice of its own. The NERC, as it is today, is like a reed in the tide, it easily recoils into its shell with any shrilly outcry. When any interest yells at it, it withholds its decision or denies it completely. With this, it cannot live up to its name to be truly independent of interference. Unless the commission leaves its decision to market fundamentals, it will remain at whim and caprice of those it is supposed to regulate or the government.

     

    VIEWS FROM A CONCERNED PARTY

     

    THE Coalition for Affordable and Regular Electricity (CARE) has suggested how to revive the electricity sector.

    The group, in a statement by its National Coordinator, Chinedu Bosah, and National Secretary, M.K. Shoyombo,  said the failure of the privatisation policy to revive the sector called “for re-nationalisation of the power sector under the transparent and democratic control of the working masses as a means of ensuring massive investment, efficiency, affordable tariff and uninterrupted power supply”.

    It said the move to increase tariff showed “the failure of privatisation, obvious incapacity of the power companies to massively invest, develop the power industry and give consumers affordable and uninterrupted power supply”.

    The group added that continuing the privatisation programme amounts to rewarding the failure of the DisCos and GenCos.

    “Overwhelmingly, many electricity consumers are forced to pay outrageous and unwarranted estimated bills; facilities and power infrastructure remain in a deplorable state; lack of investment to turn around the sector and poor working conditions of electricity workers. The consequence is widespread darkness in many communities; load-shedding and epileptic/poor power supply leading to a situation where in the country with a population of about 200 million people gets a paltry 4000 MW averagely,” it said.

  • ABC of $9b judgment against Nigeria

    A controversial gas deal between the Federal Government and Process and Industrial Development, a firm founded by two Irish businessmen and incorporated in the British Virgin Island, has led to the award of $9billion against Nigeria. The transaction, which was sealed in 2010, shows lack of concrete terms of engagement, reports EMEKA UGWUANYI.

    The judgment of a United Kingdom court granting Process and Industrial Development Limited (P&ID) the authority to seize Nigeria’s assets worth $9 billion has rattled stakeholders in the economy because of the impact, it would have if implemented. Last year, a United States’ court gave a $6.59 billion default decision against the Federal Government for disrupting the P&ID contract.

    Andrew Stafford, Q.C. of Kobre & Kim, which represents P&ID, said the firm would enforce its rights and seize Nigeria’s assets “to satisfy this award as soon as possible”.

    P&ID’s claim in the arbitration was mainly for loss of profit for the duration of the contract, which was $1.9 billion before it increased it to $5.9 billion because the agreement was based on an average oil price in excess of $100 per barrel over the contract period. Plans to settle the case, however, was spurned by the Muhammadu Buhari administration, which chose to return to the tribunal to further contest P&ID’s claims.

    How the transaction started

    On January 11, 2010, P&ID signed a gas supply and processing agreement with the Ministry of Petroleum Resources. Under the terms of the agreement, P&ID was to build and operate an accelerated gas the development project at Adiabo in Odukpani Local Government Area of Cross River State.

    The government was to source and supply natural gas from oil mining leases (OMLs) 123 and 67 operated by Addax Petroleum to P&ID for 20 years to refine into fuel suitable for power generation. The lean gas to be produced from the wet natural gas was to be supplied to the Federal Government, while residual gas would be vested in P&ID as consideration for processing the wet gas to lean gas.

    The initial volume of gas to be supplied was about 150 million cubic feet of gas per day, which would be come to about 400 million cubic feet per day during the 20-year period.

    However, P&ID alleged that after signing the agreement, the Federal Government reneged on its obligation after it opened negotiation with the Cross River State government for allocation of land for the project.

    P&ID said the failure to construct the pipeline system to supply the gas frustrated the construction of the gas the project, thereby depriving it the potential benefits expected from 20 years’ worth of gas supply, adding that several attempts to settle out of court with the government failed.

    In August 2012, P&ID served the Federal Government a Request for Arbitration. The government argued before the tribunal that the failure of P&ID to acquire the site and build the gas processing facilities was a fundamental breach as no gas could be delivered until this was done.

    But the tribunal ruled that the government’s obligations under Article 6B of the agreement did not depend on P&ID constructing the gas processing facilities. The tribunal upheld P&ID’s application requesting damages for alleged breach of contract by the government.

    Two members of the three-man tribunal, Lord Hoffmann and Anthony Evans held that P&ID’s expenditure and income should have been about $6.597 billion if the gas supply and purchase agreement (GSPA) was duly performed by the government. Both officials said the award should be paid together with interest at the rate of 7 per cent from March 20, 2013.

    The other member, who is Nigeria’s former Attorney-General and Minister of Justice, Bayo Ojo, in his minority ruling, said although P&ID was entitled to compensation for the breach, its damages could not have been more than three years from the date of the alleged breach. Ojo said P&ID should not be paid more than $250 million as damages.

    The tribunal said damages were calculated as the present value of 20-year income, minus certain capital and operating costs incurred from building and running the refining facility. Considering that the award was unpaid since 2013, accumulated uncollected interest at 7 per cent per year would be about $2.3 billion as of March 2018.

    Although the government challenged the award, P&ID said Nigeria was bound by a treaty to pay up, having waived its right to immunity as a sovereign nation when it signed the agreement.

    On March 16, last year, P&ID in its application seeking enforcement of the award said: “The final award is governed by such a treaty — the New York Convention. So, Nigeria’s status as a foreign sovereign does not deprive the court of jurisdiction to confirm the award.”

    The government claimed it didn’t build the pipeline because the contract midwifed by the former Minister of Petroleum Resources Rilwanu Lukman was not favourable. Besides, there was no plant built by the Irish company. But two years later, the Irish company served arbitration notice on Nigeria.

    The Federal Government under Dr Goodluck Jonathan sought for settlement even though it had canvassed among other issues that the construction of pipeline depended on the ability of the Irish company to secure land and build a plant. But the Irish company argued that it has lost billions of expected revenue for about 20 years.

    The two parties reached a settlement for about $1.5 billion but Jonathan wanted a lower amount of say, $500 million. In 2014, the Jonathan administration pushed further and eventually got a final settlement of about $800 million. Jonathan accepted the terms of the settlement.

    In 2015, the then Petroleum Resources Minister, Mrs Deziani Allison-Madueke, wrote a memo to the President for approval of payment in three tranches. Jonathan accepted the proposal but left the final instruction as to disbursement for President Buhari, who was then coming in for his first term of office.

    However, Buhari debriefed a lawyer, who got the “lowest possible sum” but the government hired another lawyer, Bolaji Ayorinde (SAN), to set aside the settlement reached by the Jonathan administration. The parties submitted to full arbitration. However, our reporter couldn’t get who were the Federal Government lawyers that negotiated the contract signed on January 11, 2010.

    Jonathan camp’s account

    An aide to Jonathan, Reno Omokri, at the weekend, said his boss should not be blamed for the $9 billion judgment against the Federal Government.

    Omokri said: “P&ID submits that it entered a gas supply and processing agreement with Nigeria’s Ministry of Petroleum Resources in January 2010. Pursuant to the agreement, P&ID claims that it would build the necessary facilities and then refine natural gas for a period of 20 years.

    “Now, Nigerians should stop there and ponder. This transaction occurred in January of 2010. Former President Jonathan was not President in January 2010. During that time, he was completely shut out of power by an unelected cabal that ran Nigeria during the period of the ill health of the late President Umaru Musa Yar’adua, before the National Assembly courageously intervened on February 9, 2010.

    “That cabal not only fought against the ascension of then Vice President Jonathan to the office of acting President, but went beyond that to take documents including budgets and contracts, to Saudi Arabia, and claimed that the then ailing President Umaru Musa Yar’adua had signed them.

    “Nigerians may recall that the cabal announced on December 28, 2009, that the ailing President Yar’adua had signed a supplementary budget and other documents from his sickbed in Saudi Arabia, without the foreknowledge or acquiescence of then Vice President Jonathan or the Executive Council of the Federation.

    “In fact, a week later, the Conference of Nigerian Political Parties (CNPP) came out with an exposé alleging that the signatures on the documents were forged and Femi Falana (SAN) took up the case in court.

    “The man who packaged and arranged the signing of the contract with P&ID was a member of the cabal and Yar’adua’s minister for petroleum, the late Rilwanu Lukman. Lukman and other members of the cabal treated then Vice President Jonathan with disdain and kept him in the dark about their actions because he had no executive authority, as the then President was unable to hand over to him as constitutionally stipulated due to the suddenness of his ill health.

    “That same cabal has resurrected and has now coalesced around President Muhammadu Buhari, with some of them being made either minister or formal and informal advisers. As a matter of fact, the main man behind that cabal is now one of the closest persons to President Buhari.

    “Nigerians may want to note that while this controversial contract was signed in January of 2010, former President Jonathan only became acting President on February 9, 2010. So, if the Buhari administration is looking for someone to blame for this judgment against Nigeria, it should look at its own cabal.”

    When Jonathan finally took over, according to Omokri, the deal was reviewed and found to be bad for Nigeria, so he insisted that the deal be renegotiated. P&ID refused and instead took Nigeria to arbitration.

    Government’s plan

    The Federal Government said it would do everything to defend the country and its assets across the world following the ruling by the United Kingdom, Business & Property Courts (the Commercial Court) presided by Justice Butcher, which granted P&ID the right to enforce a March 20, 2013 award earlier given against Nigeria by a District Circuit Court in Washington DC.

    The Federal Government, through the Permanent Secretary and Solicitor General of the Federation, Dayo Apata, dismissed the ruling as “completely wrong and obviously unjustifiable.”

    Apata, in a statement, said: “The damages awarded P&ID are clearly unreasonable and manifestly excessive and exorbitant. The courts went far beyond any legitimate protection of the commercial interests to overcompensate P&ID on a, frankly, gargantuan scale, and impose[d] a punitive award on Nigeria.”

    The government has sought an appeal of the judgment of the English Court to secure a stay of execution.

    Central Bank of Nigeria (CBN) Governor Godwin Emefiele reaffirmed Nigeria’s determination to resist the judgment.

    “I am not scared at all,” the CBN governor told reporters. “Since the news about the judgment broke out, we have been discussing with our counsel, and they have advised that there are sufficient and strong grounds on the basis of which we could file a stay of execution and also an appeal against that judgment.

    “We know the implication of that judgment and its impact on monetary policy. That is why the CBN is going to step forward and very strongly too to ensure we defend the country and defend the reserves of the Federal Republic of Nigeria,” he said.

    Need for tidying up contracts

    At the panel session of the conference of the Association of Energy Correspondents of Nigeria (NAEC) with sub-theme “Effects of the sanctity of contract on commercial operations,” held in Lagos, industry experts x-rayed the why contracts terms should be properly tidied up before parties involved in the transaction put pen to paper.

    The experts who include the Group Managing Director, Aiteo Eastern Exploration and Production Company Limited, Mr. Victor Okoronkwo; Commercial Asset Manager, Oando Plc, Mr. Solomon Agba; Head Legal, Department of Petroleum Resources, Mr. Joseph Tolorunse; Director, Business Development, Axxela, Mr. Frank Umole; and Manager, Corporate Planning, Nigeria LNG Limited, Dr Yakie Ogon, stressed the importance of the sanctity of contract.

    According to them, before contracts are signed, the parties involved should envisage future occurrences, possible changes in the market, benefits and losses in long and short terms, among others. It is unhealthy to renege on contracts mid-way because it creates distrust and lack of confidence. Before contracts are signed, all the possible setbacks and challenges should be factored, which is the more reason the National Assembly and the Presidency should expedite action on the passage of the Petroleum Industry Bill.

  • Lai Mohammed: we must work hard

    Minister of Information and Culture Alhaji Lai Mohammed has urged the management and staff of the Federal Ministry of Information and Culture on the need to double their efforts.

    Mohammed, who spoke at the inaugural meeting with the Permanent Secretary and directors of the ministry, said: “My charge to all of us is to please redouble our effort so that we can justify the confidence Mr President has reposed in us. That Mr President has reappointed and posted me back to this ministry is a measure of the confidence he has in me. So I think we all need to work hard.

    “Let me express my joy at the prospect of working again with the Directors that I worked with in the last administration. Whatever success we had achieved was because of the cooperation and collaboration of Directors who worked with us,” he said.

    Mohammed said he would continue to work very closely with the Permanent Secretary and the Directors in order to implement the core mandate of the ministry.

    Read Also: Fashola gets Works as Ngige, Amaechi, Lai retain portfolios

    “There must be synergy between the Minister and the Permanent Secretary and I must say that I have enjoyed a very cordial working relationship with my Permanent Secretary, and I am very glad that that relationship contributed in no small measure to the moderate success we achieved. We need your cooperation because we can’t do it alone,” he said.

    The Permanent Secretary, Deaconess Grace Isu-Gekpe, expressed delight at the reappointment of Mohammed and pledged the readiness of the management and staff of the ministry to support and cooperate with the Minister to enable him to achieve his mandate.

    “It’s actually been my desire to have you back sir. We are all very glad to have you back to continue where you stopped. There is a lot of work here and I believe that you will surely take this ministry to the next level.

    “I want to say welcome back to your family and all of us are ready to work with you to take this ministry and the whole nation, in areas of information and Culture, to the next level,” she said.

  • Dare laments 38 per cent youth unemployment

    Minister of Youth and Sports Development Sunday Dare has pledged to work with relevant agencies and stakeholders to address youth unemployment.

    The minister spoke on Thursday in Abuja at the 2019 International Youth Day, with the theme “Transforming Education’’.

    He lamented the large number of Nigerian youths out of school and the growing number of those unemployed with a pledge to address it headlong.

    “Youth unemployment as at the 2nd quarter of 2018 stood at 38 per cent, according to the National Bureau of Statistics (NBS).

    “We will work hard to reduce this figure by applying principles and objectives that cut across different sectors of development.

    “We must consciously work to provide enabling environment for the Nigerian youth to excel and reach his full potentials,’’ he said.

    Read Also: Veteran Journalist Sunday Dare is new sports minister

    Dare said the ministry would collaborate with relevant agencies of government as well as development partners to improve the employment situation of Nigerian youths.

    “The ministry will seek and explore linkages with other federal ministries, agencies and development partners towards leveraging on technology and innovation.

    “We have already identified ministries such as Trade, Industry and Investment; Communication; Science and Technology; Agriculture, and Education,’’ he added.

    He said the Federal Government was ready to tap into the large population and vibrancy of the youth to fast track national development.

    Dare is to convene a meeting of the various factions of the National Youth Council of Nigeria (NYCN) as part of efforts to resolve lingering issues in youth development in the country.

    In his keynote address, he said: “As a practical demonstration to this cause, I will in a couple of days convene a meeting of critical stakeholders in the area of youth development. Unity of minds and purpose must drive our engagements going forward.

    “In this way the Youth Organisations and in particular, the National Youth Council of Nigeria will be refocused to complement the efforts of Government to expand the reach and advance the cause of transforming education among our youths.

    “Furthermore, Government will continue to collaborate with stakeholders to adequately empower the youth; enhance youth civic engagement and participation in the political processes and in decision-making as well as established institutions,” the minister explained.

    NYCN is split across factional lines with contenders either laying claim to the group’s leadership.

    The Permanent Secretary of the ministry, Mr Olusade Adesola, called on youths to be good ambassadors of the country and contribute to national development.

    The International Youth Day is celebrated yearly, on Aug. 12.

    The 2019 commemoration was postponed in Nigeria because of the Eid-el Kabir festivity.

    The event was attended by officials from UNFPA, NYSC, Ministry of Labour officials and other development partners.

  • Fed Govt to prosecute those behind $9b UK judgment, says Malami

    The Federal Government will prosecute everyone linked with the contract that resulted in the judgment of the United Kingdom, Business & Property Courts (the Commercial Court) which awarded a cumulative sum of $9bn award against Nigeria and in favour of a private firm, Process & Industrial Developments Limited, Minister of Justice and Attorney General of the Federation (AGF), Abubakar Malami has said.

    Malami, who questioned the sincerity of those behind the contract, awarded in 2010, argued that it formed part of the inglorious legacies of past administrations, which this government is being made to grapple with.

    Malami spoke in Abuja on Thursday, while unveiling his agenda on his first day of resumption at the Federal Ministry of Justice. He said henceforth, contract of certain categories will be vetted by the Federal Ministry of Justice before it is signed by any Federal Government agency.

    He said: “Sadly, in spite of the spirited and concerted efforts of the current administration to combat corrupt practices and rent-seeking in all its forms, Nigerians woke up on Friday 16th August, 2019 to the rudest consequences of the underhand dealings of -the past administration that has resulted in the award of $9billion against the Federal Republic of Nigeria by a British court, which ruled that Process and Industrial Development Limited (P&ID) had the right to seize $9billion in Nigerian assets.

    “It may interest you to know that the dispute that led to the arbitration between the FGN and P&ID, which consequently resulted in the said court ruling arose from a twenty (20) year Gas Supply Processing Agreement: (GSPA) purportedly entered with P&ID by the past administration in 2010, which contract the P&ID never performed as agreed.

    Read Also: Malami: what Buhari told me about justice ministry

    “That being said, it must be placed on record that the Federal Government strongly views with serious concerns the underhand manners by which the negotiation, signing and formation of the contract was carried out by some vested interests in the past administration in connivance with their local and international conspirators all in a bid to inflict grave economic adversity on the Federal Republic of Nigeria and the good people of Nigeria.

    “As a government that has the mandate of the people and their interests at heart, we shall not fold our arms and allow this injustice to go unpunished as all efforts, actions and steps shall be taken to bring to book all private individuals, corporate entities and government officials home or abroad and past or present that played direct and indirect roles in the conception, negotiation, signing formation as well as prosecution of the purported agreement,” Malami said.

    Malami, also appeared worried about the impact of public corruption and the connivance of financial institutions in the thriving crime of illicit finance flow out of the country. He said henceforth, financial institutions, linked with financial crimes, will be prosecuted along with the culprits

    The AGF blamed the current increasing hostile political environment and other challenges in the country on the long years of the failure of the judicial system and the lawless acts of the corrupt and unpatriotic few, who always derive pleasure in seeing the nation falters,

    He expressed his commitment to upholding the rule of law and promised to champion a robust reform of the nation’s justice system to make it function effectively in aid of the administration’s policies targeted at building a great and prosperous nation.

    Malami said “We have done much, but the reality is that there is a lot more to be done especially at this crucial time in the annals of our country when the soul of Nigeria is currently being threatened by an emerging class of mutinous elements at a time that our nation needs cohesion like never before. Nigeria is today bedevilled with an existential crisis of nationhood that is threatening to tear the country apart, with needless calls for separation, dismemberment and ill-motivated restructuring.

    “However, a deep reflection and interrogation of the system and issues in my vantage position as Attorney General of the Federation clearly reveal that a critical part of the problem arose from the long years of failure of our justice system, which has consequently created a very vulnerable political environment.

    As we all know that any society where laws are observed in the breach than in the observance, such a society will automatically degenerate to Hobbesian state of nature when life was brutish, whimsical and short a state to which no Nigerian should pray we return as a country.

    “We, therefore, cannot afford to fail on account of the lawless acts of the corrupt and unpatriotic few who always derive pleasure in seeing us fail as a nation. The law must work; it must speak its firm language of justice at all times, no matter whose ox is gored. It is beyond doubt that the law is the secret that binds societies together.

    “As a social engineer and reformer, I am determined as ever before to use the law as a means to shape society, regulate people’s behaviours and balance the competing interests in the Nigerian society because of the ‘defence of the corporate interest of the Federal Republic Nigeria. And the rights of her citizens, are my primary goal as Chief Law Officer,” he said.

    .Malami argued that the major reason “for the seeming failure of our system is the structural defects

    of our constitution and laws, non-adherence to laws, institutional failure of enforcements, and dysfunctionality of our judicial system which only judicial reforms can reverse if we must exist as a nation.”

    The AGF said he will devote his second coming to working on ways to address all the identified challenges by collaborating with other arms of government and relevant agencies of the Executive arm of government.

    Malami assured that under his watch, the Federal Ministry of Justice shall devote its efforts at developing measures to help reverse “this dysfunctional system” by rigorously pursuing judicial reforms targeted at

    achieving some identified objectives.

    They include:

    *To protect the sovereignty, integrity, solidarity, wellbeing and prosperity of the Federal Republic of Nigeria by defending the Nigerian constitution in such a manner that will guarantee the unity and indivisibility. of the Nigerian State;

    *To promote and remain steadfast to the policy thrusts of the President Muhammadu Buhari-led administration by contributing our own quotas to improving security, fighting corruption and fixing the economy for the greater benefit of all Nigerians;

    *To use the instrumentality of our legal system to improve accountability in public financial management with a view to ensuring that the government and its officials, as well as private individuals and corporate entities, are accountable to the Nigerian people under the law;

    *To apply laws in such a manner that abuse of power by private individuals, corporate entities and national authorities are checked in a way that the constitutionally guaranteed rights of the citizens are protected without any form of discrimination;

    *To ensure the processes of enactment, administration and enforcement of the law are open, accessible, just, equitable and efficient.

  • ‘My tribe played no role in my appointment’

    Minister of State for Environment Sharon Ikeazor has said President Muhammadu Buhari never judged her by her tribe or religion in appointing her as a minister.

    Ikeazor, who spoke at a reception organised in her honour by friends and associates in Abuja, said the President judged her solely on the mandate she was given at the Pension Transitional Arrangement Directorate (PTAD) and how she was able to execute that mandate, assuring that she will strive to deliver on her new mandate.

    The minister, who said the turning point her life was the Sosoliso air crash which claimed the life of about 60 children, added that she decided to join politics to help fight social injustice when nothing was done about the crash.

    Read Also: Pensioners applaud appointment of PTAD boss, Ikeazor as Minister

    She said: “I keep saying that the Nigeria of our dream is possible and we can achieve it. How was I able to achieve mine? I joined politics. Politics is life and life is politics. I left the law school in 1985 and followed my father’s footsteps. I didn’t get much satisfaction from law and I got into project management, consulting.

    “The Sosoliso air crash was the turning point in my life. 60 children died in a plane crash and you tell me it is an act of God? It was not an act of God, but pure negligence by those who operated the aircraft and the airport facilities. We protested and there was no action taken. No minister resigned and nothing happened.

    “We the women made up of Catholic Women Organisation and Muslim Women were protesting daily and nothing happened. It was then I decided that I needed a platform where my voice will be heard and I can make the difference and that platform was politics. Which was the most decent political party that I could join and maintain my integrity? It was the Congress for Progressive Change (CPC) under President Buhari. Everybody thought I was crazy, but I was there for a purpose. Buhari was fighting social injustice and I was fighting social injustice.

    “I can stand here before you  today and say that President Buhari never judged me by my tribe or my religion. He only judged me by the mandate he gave me. I am glad that I was able to deliver on the mandate he gave me and I hope to deliver on the next one. Environment is life and so, we must sought out the issues in the environment. Desertification is there, erosion, flooding, climate change, we will work on it with all your support and prayers.”

  • Ngige: 60 per cent of 2019 budget to be rolled over to 2020

    Chances are high that about 60 per cent of the 2019 budget will be rolled over to the 2020 budget, Minister of Labour and Employment Chris Ngige said on Thursday.

    “Part of the reasons why our budget has suffered is that once it suffered distortion down there at the National Assembly, the Executive is reluctant to implement it because they will feel that foreign items have been introduced into the budget,” he said.

    Ngige spoke when he resumed duty at the ministry alongside Minister of State for Labour and Employment Tayo Alasoadura.

    He said: “We have been warned that we must bring back the January/December budget circle. Therefore, the President of the Senate and officers of the National Assembly have, in one voice, requested from us that the budget should come in September and once they get it in September, they will give it to us in December.

    “So, we must do our part and what that mean is that parastatals themselves must submit their budget here and come and defend it. We are going to be serious about that because we hear of budget padding because parastatals invite Assembly members to come and carry padded things into their places.

    “We must stop that and we have to be serious about that any parastatal under this ministry that does that will be sanctioned so that we can live within our means and we can stay within what we have proposed for the work of the administration.

    Read Also: My immediate task is to put minimum wage issue to rest, says Ngige

    “Section 80 and 81 talks about the budget and how it can be used. If we do our work well, it will be a co-administered thing. We can set up committees and agreed on how it can be done so that it does not suffer distortion out there.

    “It is even appropriate that before we do down to the National Assembly to defend our budget, we should have met with our committee to agree on items or what you called budget lines are not supposed to be tampered with by the National Assembly.

    “The National Assembly can tamper with figures and amount because they have the power of the purse. But line items are not supposed to be tampered with because it is the ministry that does the planning of project, the scaling and the final plans as well as the financial implication.

    “The executive must take the lead by putting its house in order. So, I am sounding a note of warning that we must immediately start our budget planning to ensure that we submit it by September.

    “The call circular from the budget office will come, but before it comes, you can be doing your work because you already know that the 2019 budget has not been aggressively executed.

    “From the retreat we had, we now know that about 60 percent of it has to go back into the 2020 budget and rolled over. That was agreed and so, we can start our work ahead.”

    Ngige, who said he never lobbied to be reappointed as minister, said: “I am happy to come back home. A lot has happened within the last few weeks. Many people were busy here in Abuja lobbying to be appointed minister. But I was not around because I had to take my well-deserved vacation.

    “I travelled to Geneva on the invitation of a few of my African friends and from there I went on vacation in the United States of America. I came back a few days before the announcement of the new ministers.

    “The President reserves the right to make appointments because the constitution gives him that power. We are all product of the constitution. I have taken an oath to defend the constitution and I will discharge my responsibilities without fear or favour.

    “My reappointment and redeployment to the Ministry of Labour and Employment is an endorsement of the work  I have done here which is not personal, but collective. We have differences and I drive people because it is my nature.

    He said the disagreement between him and the leadership of the Nigeria Labour Congress (NLC) shortly before leaving office was a family disagreement, which has been resolved.

    Alasoadura said he would have no reason to disagree with Ngige. He said having two ministers in a ministry meant that they must work as a team to actualise the programmes of the government.