The Nation Newspaper

Tag: bailout

  • Support bailout to states, civil servants tell National Assembly

    Support bailout to states, civil servants tell National Assembly

    The Association of Senior Civil Servants of Nigeria (ASCSN) has enjoined the National Assembly to support the Federal Government’s effort to settle arrears of salaries and pensions owed workers and pensioners through the release of bailout funds to states.

    In a release in Lagos, ASCSN President Comrade Bobboi Bala Kaigama, and the Secretary-General, Comrade Alade Bashir Lawal, said information reaching the union secretariat  indicated that the lawmakers were hatching plots to scuttle the Federal Government’s efforts to settle the arrears of salaries and retirement benefits owed millions of workers and pensioners.

    “We wish to emphasise that money being given to state governments by the Federal Government, under the bailout arrangement, is to be repaid.

    “Thus, while we appreciate the oversight functions of the National Assembly in budget spending and other financial transactions of the Federal Government, we believe that in terms of bailout to state governments, members of the National Assembly should use the instrument of their high offices to ensure that state governors deploy these funds to settle arrears of salaries of workers and retirement benefits of pensioners, who in the first instance, are members of their constituencies,” the Union added.

    According to the ASCSN, if the National Assembly continued to harp on hindering the government from giving bailout funds to states to settle arrears of salaries and pensions, the impression would be created that they were opposed to the welfare of members of their constituencies, whose interest they were elected to pursue.

    It, therefore, urged the National Assembly to drop the idea of querying the legality of the bailout funds, and join hands with the government, the Trade Union movement, and other well-meaning Nigerians to ensure that arrears of salaries and pensions were paid to affected workers and pensioners in order to put the embarrassing and ugly situation behind us.

  • Politics of bailout

    Politics of bailout

    Governors are seeking for fresh bailout from the Federal Government, as if it is their right. They made the declaration at a meeting of the National Working Committee (NWC) of the All Progressives Congress (APC) when they met President Muhammadu Buhari. MUSA ODOSHIMOKHE examines the pros and cons of the bailout.

    When President Muhammadu assumed office, he met many problems begging for urgent attention. One of them was the inability of state governors to pay workers’ salaries. It was so bad that some states owed between six months and one year salaries.

    Workers’ salaries became so challenging that the threat of strikes was imminent in most of the states. Workers actually went on strike, while those yet to do so were warming up for it; making the President to actually feel sympathetic to their plight.

    The President, upon receiving funds from the Paris Club, gave governors the money to settle the backlog of salaries. But, some governors did not apply the money to the problems they were meant to solve.

    Many governors still owe, despite the large sums of money they were given to cushion the effects of the harsh economic realities on workers. Those who managed to pay workers up to date, in no distant time, started owing workers. The situation necessitated renewed calls to authenticate the claims of mismanagement leveled against some governors over the Paris Club refund.

    Bauchi State Governor Mohammed Abdullahi, during the National Working Committee (NWC) meeting of the All Progressives Congress (APC), said Buhari expressed concern that workers were owed salaries. He noted that the last refund from the Paris Club was judicious utilised by the governors.

    At the National Economic Council (NEC) meeting chaired by Vice President Yemi Osinbajo, the governors made it clear that they could no longer cope with workers’ salaries.

    Ebonyi State Governor Dave Umahi who made the disclosure after the meeting, said the request for bailout for states was to offset salaries arrears. He said this could come in form of budget support, the same view shared by his Bauch counterpart, who said that the Paris Club refund is the right of states.

    Umahi said it was  difficult to function well, when what accrues to the state is less than N600 billion from the Federation Account. He said the governors had put in their best to meet workers demand.

    He said: “We came to the understanding that every month, if the total shareable revenue in the federation account is less that N600 billion, the Minister of Finance has to give each state budget support.

    “In the last 12 months and that continued to the second year. States have done very well and have been able to pay their accumulated salary debts. They have equally increased their commitment to infrastructure and revenue generation.”

    The call for bailout has been criticised from different quarters, because it had barely clocked two years, when the Federal Government gave states money for the same purpose they are now demanding.

    Analysts say the state cannot continue to seek bailout to function. They said states must look beyond handouts from the federal government to be able to perform their statutory obligations.

    The Nigeria Labour Congress (NLC) had shown concern on how the money would be used when President Buhari gave them the funds. It pledged to work with the Independent Corrupt Practices and Related Offences Commission (ICPC) to monitor the disbursement of the funds.

    The NLC even directed its affiliate councils to serve as whistle blowers to reports any criminal diversion of bailout funds by the state governments. Despite the pledge, the same complaints had resurfaced again and Nigerians are getting agitated whether fresh bailout will not go the same way.

    Observers say most state governments do not attach much importance to workers salaries. They said government believes that workers could be relegated because on capital projects.

    Commenting on the need to pay workers his salaries as and when due, the Secretary General of Association Civil Servants of Nigeria (ASCSN) Comrade Bashir Lawal said state were defaulting despite the huge bailout received from the Federal Government.

    Lawal added: “In other parts of the world, you pay workers salaries before doing anything else. It is in Nigeria that reverse is the case; the governors prefer to spend workers money on white elephants project because these are avenue for cut corners.

    “Some of the state who had applied the money judiciously, they do not owe workers. Some of them who in spite of the huge them that made them seek the President attention to pay salaries, refused to apply to it when they got the found. They carry on as if the workers could go to hell.

    “The Federal Government is also guilty of the same conduct. It is busy bailing out state and local governments without its own workers. They owed not less than N290 billion promotion areas for its workers. Those promoted from one grade level to the other are still earning the same salary of the last position.”

    The ASCSN scribe, who expressed disappointment over the negligence of federal workers, noted that it would press harder on government to equally bail itself out of the mess that had been in place since 2007.

    He said: “We have made noise, but government is not listening. So, we are prepared and very shortly, we will do something to at least, compel the government to look our side. This indebtedness to workers dates back to 2007 and we are talking of 2017. This is 10 years, it is precarious situation, but we are hopeful that some of the action we intend to take will compel government to address the issue.”

    Others who spoke to The Nation expressed dismay that things are not done properly. They cautioned that government must put its acts right to make Nigerians believe in what it is doing.

    The National Publicity Secretary of Afenifere, Yinka Odumakin, said the idea of bail out for states is fiscal rascality. He added that on budget estimation, there was no money put in place to grant bail out.

    He said states take advantage of the fact that they could go to the Federal Government to seek fund, which would be given to them, to perpetuate laziness, noting that most states have abandoned projects that are laudable for beggarly lifestyle.

    Odumakin added: “Let me say that either in last year or this year budget, there was no money earmark to grant bailout for anybody. The power to expend funds lies with the National Assembly. So, the Paris Club refunds given to state are illegal allocations to them.

    “Again, you don’t need to bail anybody out because the governors would take the money and many of them have mismanaged the funds they have collected from the Paris Club. There has never been any accountability on the money they have collected so far. That has not solve the problem they claimed they got the money for in the first place.

    “What we need at this stage is not for state to run to government to collect money refunded by the Paris Club, the money should be reinvested into productive gesture to turn around the economy. There is no solution in bailout and bailout cannot bailout anybody. It can only bailout the pockets of the governors who are collecting the money.”

    The Chief Executive of the Coalition Against Corrupt leaders (CACOL), Debo Adeniran, said the system is faulty, adding that the federalism practice in Nigeria has not been helpful. He said where true federalism is obtained, the states would be up and doing to take up responsibilities granted them by the constitution. He said they would beef up their internally generated revenue and would not be bothered about running to the federal government.

    Adeniran added: “It is not justified that state would be receiving bailout every now and then. I must say that any business that is not viable should pack and go. When we are talking about the Paris Club Refund, it is expected that the money should go to the Federation Account.

    “The states are entitled to it; however, the federal government owed it a duty to monitor the way the money is applied. That is where the oversight function of the National Assembly is important. The money is not supposed to be spent on recurrent expenditure rather for capital development.

    “So, the bailout of state is not supposed to have continued the way it is now. The earlier bailout was to alleviate the condition of the state and not for them to make an issue they have to continually seek from time to time.”

    He added: “It is only Lagos that I have seen that had not shown interest in the bailout. This does not mean that some of the states are being marginalized. I have to point out that all the states have become so lazy except Lagos in improving their internally generated revenue.

    “They no longer engage in productive activities like agriculture, manufacturing, marketing and other ventures that can add value to the state’s income. They only rely on taxes and possibly do not re-channel the money to the state, to allow tax payers enjoy the outcome of the taxes they pay.”

    Adeniran maintained that the bailout is an affront on the people, urging members of the civil society, the media to keep a close watch on how state governors put to use the money they collect from the federal government.

    The National Chairman of the Unity Party of Nigeria (UPN), Prof. Bankole Okuwa, said state governments are not competent. He said the situation in Ogun State is an aberration. Okuwa said: “The governor does not care about the salaries of its workers. He is busy building roads everywhere which are not needed. Billions of naira are going into the projects, these road have become havens for destitute and robbers.

    Observers said this is the time the workers must rise to demand for a better life. They opined that, workers should look use their voters rights to change the situation.

    They believe the workers whether in states or at the national level could turn the table in their favour by being politically conscious.

    Workers, according to them have a strong weapon they could use during election, citing their voting the rights.

    The people must stop selling their votes to the highest bidders to offer them food, clothes and money during elections. If they consider its imperative to build a future, they must shun those who come to buy their votes during elections, an observer noted.

    Former Secretary General of the Commonwealth, Chief Emeka Anyaoku, believes the solution to Nigeria’s endless problems is for the country to function with six regional units.

    Anyaoku said zones could become the federating units for the country, noting that states seeking bailout would have to square up for productive venture under the zonal arrangement.

    He explained that the 36 states could be retained as development zone within the regions but without full administrative paraphernalia. He added that the present status of Nigeria would continue to attract more debt if something substantial was not done to arrest the drift.

     

  • How Abia managed bailout, Paris refunds, by Ikpeazu

    Abia State Governor Okezie Ikpeazu has explained how the state spent the bailout and Paris Club refunds.

    The governor said his administration spent the funds to settle the backlog of salaries he inherited and improve infrastructure.

    Ikpeazu spoke yesterday in Abuja, the nation’s capital, at the Nigeria Governors’ Forum (NGF) media conference for chief press secretaries and commissioners for Information from the 36 states.

    The governor, who was represented by his deputy, said the state imbibed a culture of transparency in governance by giving quarterly update on the administration’s affairs to Abia State residents.

    Speaking on the topic, titled: Application of the Paris Club Refund to State, Ikpeazu said: “The receipt of the intervention funds has become a source of concern to some analysts, pundits, social critics and political commentators. Some comments have been made in the print and social media which were half-truths and sometimes outright lies.

    “May I use this opportunity to briefly state the facts. Interestingly, the Abia State government received the following intervention funds from Federal Government: Bailout fund of N14.2 billion, first tranche of Paris refund of N10.6 billion and the second tranche of he Paris refund of N5.7 billion.

    “In line with the transparency approach to governance of the current administration, after the receipt of the first intervention (bailout) fund, the Abia State government constituted a committee made up of the different labour union leaders, namely the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), Nigeria Union of Local Government Employees (NULGE), the Nigerian Union of Pensioners (NUP), the Nigeria Union of Teachers (NUT) and the Joint Negotiating Council.

    “The committee took charge of the disbursement of the funds to various areas of greater needs and exigencies.

    “Indeed, the exercise was conducted devoid of government intervention as 100 per cent of funds received were expended in the services of workers’ payments. This exercise was (by all known standards) transparent and applauded by the Independent Corrupt Practices and Other Related Offences Co0mmission (ICPC), which singled out Abia and two other states for their transparency in the disbursement and utilisation of the fund.

    “Fifty per cent of the first tranche of the Paris Refund was dedicated to the payment of workers’ salaries and wages. We also disbursed an additional N600 million to augment the payment of workers’ salaries and wages. Thus, a total of N5.9 billion was spent therein.

    “The second tranche of the Paris refund received by Abia State was 100 per cent spent on workers’ salaries and pensions. This has greatly curtailed the salary arrears and responsibilities of the government.

    “Overall, Abia received N16.3 billion from the Paris Club refund and deployed N11.6 billion to service workers’/pensioners’ wage bill. This translates to a commitment of more than 71 per cent of total receipt to service workers’ salaries and pension.”

    On challenge the state was facing, Ikpeazu said: “The challenge has remained that while trying to clear the backlog of salaries, they keep piling as most of us can testify. This is as a result of the fact that allocations from the centre and the Internally Generated Revenue (IGR) have not been enough to carry the monthly wage bill and other responsibilities.”

    The governor also spoke on the efforts by his administration to ensure that workers get their salaries as at when due by introducing the verification and biometric to curb ghost workers.

    He said: “With the introduction of the verification and biometric exercises, some issues, such as ghost worker’ salaries, padding of salaries, multiplicity of people receiving salaries from various units of the government have been addressed.

    “This has assisted the state greatly, as the monthly wage bill has been reduced from an average of N2.8 billion to N2.1 billion. Thus, from this alone, a savings of about N600 million monthly has been achieved. When extrapolated in 34 months, this amounts to about N16 billion, which would have ordinarily gone into some individuals’ accounts.”

    The governor’s Chief Press Secretary Enyinnaya Appolos said: “The state government has brought about transparency and decency in the system. We have built more confidence on the relationship between the labour unions and the government. This can be attested to by the trade unions leaders and their members in the state.

    “Currently, the Abia State government is up to date with the salaries of its ministries, department and agencies (MDAs). In essence, these are the painstaking reforms we have carried out since the inception of this administration.

    “This does not suggest that Abia is not owing some outstanding salaries.”

     

  • ‘States can’t continue to expect bailout’

    ‘States can’t continue to expect bailout’

    Information and Culture Minister Alhaji Lai Mohammed spoke with Group Political Editor EMMANUEL OLADESU in Lagos on how the country overcame recession, the anti-terror war, the battle against corruption, national security and restructuring. 

    What is the evidence that Nigeria is out of recession?

    The same evidence that Nigeria was in recession is the same evidence that Nigeria is out of recession. Technically, when a country goes into recession, it has recorded two has recorded two consecutive quarters of negative growth in the Gross Domestic Product (DGP), which is measured by the services and products the country has achieved. If you have a negative growth two consecutive quarters, then, the country is said to be in recession. And we have been in recession in the last five quarters. But, we have come out of that recession by the second quarter of this year. The important thing about recession is that first, it is not good for economic growth and what is pleasing in this particular recovery, is that it was led, not by the oil sector, but by the non-oil sector of the economy, notably agriculture, mining, construction, manufacturing, electricity and creative industry and the like. Why this is pleasing to us is that, one of the first things we realized when we came in was that we have been operating a defective economic structure, which is overtly dependent on oil. The government decided that it will divert Nigerians to the area of agriculture, manufacturing, mining, construction, creative industry and other service industry so that if there is inactivity in the oil sector, it will not affect us the way it has affected us in the past. Among other reasons, the main reason for recession was that the price of crude dropped from over 100 dollars to as low as 20 dollars in an economy that failed to invest in infrastructure, save for the raining day, pay its debt when there was a boom. It was quite injurious. So, we decided that henceforth, we will diversity our economy. I am to say that, even throughout the quarters when we were in recession, agriculture and mining were not in recession. They were always recording positive growth. By the second quarter of 2017, agriculture and mining, manufacturing, electricity have improved.

    How do you measure the impact of that on the wellbeing of the citizenry?

    Coming out of recession is like the person has been very ill. He has been in an intensive care. Now, he is moved out of the intensive care. He is now in the general ward. He has not been discharged. He will not go to the farm the very next day. He won’t begin to visit people the very next day. It will take time for other parts of the body to wake up. So, what happens when you get out of recession? Number one, it gives confidence to the operators of the economy, principally the investors. And foreign investors; it gives them confidence about the economy. That invariably translates into more jobs and better productions. For instance, in the second quarter of 2017, we recorded a 95 per cent increase in foreign capital inflow. In the first quarter of 2017, we attracted only 902 million dollars, but by the second quarter, we attracted 1.792 billion dollars, which was about 95 per cent increase in foreign capital that was brought in. Our trade balance has improved positively. We import less, we export more. Our foreign reserve between October 2016 and August 2017 has reached almost 80 million US dollars. These are indices that shows the reawakening of the economy. The multiplier effect has to be felt. Then, you will see there will be more jobs created, prices of food will go down and it will impact on the lives of common Nigerians.

    Workers in many states are still in pains over the non-payment of salaries. When should states expect the next phase of bailout from the Federal Government?

    This is a very important question. I think as much as a searchlight is being brought on the Federal Government, we must not fail to understand that we run a federal system of government, whereby each level of government also has direct access to revenue accruing to government. The constitution also gives them certain responsibilities. I think the fact between 2015 and 2017 the Federal Government released over 1.6 trillion naira bailout shows how caring it has been. This is in addition from what they receive as federal allocation every month. I think the government at the centre has shown enough passion, enough commitment and enough concern for the welfare of Nigerians. It is not under obligation to give any money to any state, but because we wanted to soften the impact of the recession, because we wanted to make sure that workers don not go hungry, because whoever works must be happy, that was why the government made available the 1.6 trillion in the last two years. For one to appreciate that, it is more than one quarter of the total budget in 2016. That was what the Federal Government gave out in the last two years. All states and local governments should ensure that money meant for bailout are meant to pay workers, supplement workers’ wages, supplement payment to contractors and make life more abundant for the people in the states. At the end of the day, every citizen belongs to one state or one local government.

    How cordial is the relationship between the executive and the National Assembly now?                                                               

    I think both arms of government have realized that there is the need for cooperation. Yes, once in a while, there are differences, there are spats. But, overall, it is an experiment and it is work in progress. Daily, we begin to understand one another better. I think what has really impressed me recently is the improved working relationship between the executive and the judiciary. About two weeks ago, the judiciary on its own said it will set up courts for trying corruption cases and its directives are out to all the chief judges to ensure that they nominate or put aside one court each where the cases will be tried. They first of all set up a monitoring committee on corruption and financial crimes cases. I think this is a good turning point in the relationship between the judiciary and the executive. Both arms of government are now aligned and are convinced that corruption is unarguably the greatest threat to our corporate existence.

    How do you react to complaints by some leaders of the ruling party that they are being sidelined from the affairs of the Federal Government?

    All such complaints are being looked into.

    What is the status of the anti-terror war now?

    I think the war against terror has been largely won by government. I always like people to remember that, when we were sworn in on May 29, 2015, 24 local governments in the federation were under the sovereign control of Boko Haram terrorist. By this control, I mean, not only were they physically present in those local governments, they set up parallel government; they hoisted their own flags, levy taxes. They had a judicial system of government alien to Nigeria. I can say without any fear of contradiction that they do not hold sway again in that manner in any local government of the federation. There is no doubt that Boko Haram has been severely degraded. They do not have the kind of capacity they had before. Before 2015, they were active. They were attacking. And they were operating in about 12 states of the federation-Sokoto, Kano, Borno, Niger State. Even, the federal capital was not immune. They were attacking at will. As a matter of fact, in those days, people went to churches and mosques with their hearts in their mouths. I think all that has ceased now. Again, if you look at the Northeastern part of the country, which was largely inaccessible before; for some years, schools were closed, roads were closed. They have all been reopened. If there is any further proof that normalcy has returned to the Northeast, I think one of the finals of the Nigerian football matches recently was played in Maiduguri between and MFN and El-Kanemi Warriors. It is ample proof that peace has returned to the Northeast. Yes, we are battling with humanitarian crisis in the region. But, it is not limited to the region. It extends to the entire Lake Chad and the government has been proactive. It set up two committees. The infrastructure there has been destroyed. Government is fixing them and ensuing that normal life returns to the area. We are also addressing the issue of several people who have been displaced, to take care of their welfare. It is a commitment that we made. Our goal is to ensure that, not only do we have to win the war on the battlefield, but we also ensure that the people return home in peace and continue their normal life.

    And what about the twin battle; the anti-corruption war? What is the status of the war because people are complaining that it is not easy to secure conviction in cases involving high profile people?

    I think this is why we are so excited about the new collaboration between the executive and the judiciary. Now, the looters took comfort in the congestion in our courts. They play a game of encouraging obstruction in the judicial system. Now, with the creation of separate court to try corruption cases, there is no longer any hiding place. The corrupt official, no matter how highly placed, cannot go scot free.

    Opinion is divided on the deployment of troops to the Southeast for ‘Operation Crocodile Smiles and Python Dance’…

    I think we must stop criticizing the issue of security. It is a dangerous game. Everywhere in the world, the security is important. The military has a role to play; to protect, secure our borders and ensure the territorial integrity of Nigeria. We must not attempt to politicize it. We must not attempt to localize it. A situation whereby some people in one part of the country will say no is not acceptable. You may have your local concerns, agitations. But, the military should be completely be immune from that. The military should defend the territorial integrity. Otherwise, you will have a situation whereby a group will say, oh, you can’t pass here; another group will say you can’t pass there. Who is going to defend us? We should stop politicizing the issue of security. It is a serious matter.

    IPOB was once described as a terrorist organisation by the Federal Government. A foreign organisation said it cannot be categorised as a terrorist group. What is the status now?

    I think Nigeria as a sovereign nation does not need the permission of another country to declare any particular body a terrorist organisation, once it is done within the ambit of our own law. And what the world needs today is collaboration and cooperation in the fight against terrorism. Alqueda was pronounced a terrorist organisation by the US, by the western world. We cooperated with them. If we have not done so, the issue of Boko Haram would have been much difficult to handle. I don’t think we need the permission of any nation to declare a particular body a terrorist organisation. It is in the interest of world peace and stability that countries collaborate with one another over what IPOB means to Nigeria. We are glad that, even the governors of the Southeast that IPOB claims to represent, have dissociated themselves from IPOB. What they are seeking for is not self-determination. MASSOB has been around much longer than IPOB. As long as they did not cross the line and they did not publicly solicit for arms, making insurgent statement that, if you don’t give us Biafra, what we have done will be a child’s play, attacking the military, erecting checkpoint and extorting money. That is not self-determination. It is a terrorist act. As far as we are concerned today, IPOB remains proscribed.

    What is your assessment of the performance of the 2017 budget?

    Now, when people complain about the performance of the budget, I think the budget was passed around June. I don’t think it is fair to be asking about its performance three months later. We are still addressing the bureaucratic bottlenecks about procurement. For me to procure, I need to advertise for six weeks, after which I will analyse all the bids, contact all those that are qualified and then contact the Bureau of Public Procurement and go to Federal Executive Council. It is burdensome. The real issue is that we have to overhaul the procurement process. There are many requirements that may slow down governance. A person is bidding; you asking for his tax clearance, evidence of whether he has paid his contributory pension scheme. I don’t think this kind of requirement is helpful. Part of the mandate of the Committee on ease of Doing Business is to identify the statutes and recommend them for overhauling.

    What lesson has government learnt from the late passage of the budget?

    There are two issues that may affect development. One is the late passage of budget. The other would be the revenue; the finance. When budget is passed late, one of the challenges is weather. You cannot build or construct during the raining season. You have to wait for the rain to stop. Fertilizers must reach farmers before the start of planting. These are some of the setbacks of late passage of budget. But, this year, we will submit next year’s budget by October to the National Assembly and hopefully, by December, it will be passed.

    Is the Federal Government prepared for restructuring?

    The president is clear on this matter. There are some legitimate demands. But, the question is: what do we mean by restructuring? Restructuring means different things to different people. To some, it is simply about resource control where every state will have control over its resources. To some, it is going back to the former three or four regions. To even some, it is the creation of more states. To some, it is the devolution of powers to states. Each of these will have to be examined. The APC committee is going round the country today to collate opinions. So, when we get the aggregate of the views, there will be need for constitution amendment. Restructuring will be about the amendment of the constitution.

  • Another bailout for Discos?

    SIR: The Minister of Power, Works and Housing, Babatunde Fashola, at a forum in Kano recently expressed government’s readiness to give N39 billion loan to Distribution Companies (DISCOs) to meet electricity meter supply. He was quoted to have said the fund was meant to help them bridge the over 10 million metering gap.

    The last time one checked, neither the federal government nor the ministry of power was listed as a commercial bank where individuals or companies take loans. The idea of assisting private businesses to flourish with government funds when several unfinished people-oriented government projects dot all the nooks and crannies of Nigeria is a disservice to the nation – tantamount to robbing Peter to pay Paul.

    Before privatisation, the proponents sold a utopian gold-plated private sector where only the new companies have the technical-know-how and magic wand to ensure uninterrupted power supply without due consideration to their human and financial capabilities.  Do not forget that the companies were even dashed out to cronies as political patronages and also at ridiculous prices. Competences were utterly sacrificed on the altar of mediocrity in the selection processes of companies. Did Aliko Dangote grow his business empire by seeking for undue favour or running cap in hand to government for loan?

    What should bother government more is the level of disregard for extant rules guiding privatisation by the operators not assisting them with loans. The Discos were given the mandate to meter existing customers six months after take over. They are in breach of that mandate after four and half years and none was sanctioned. How many distribution companies have fulfilled their payment obligations to Nigeria Bulk Electricity Trader (NBET)? The latest Nigerian Electricity Regulatory Commission Q1 2017 Report on “DISCOs Performance” scored Ikeja Distribution Company 54% out of sundry key performance indicators employed in appraisal while Kaduna Distribution Company scored 5.8%. The government of former President Goodluck Jonathan gave out a whopping sum of N213 billion intervention fund in 2015 for the same reason adduced by Fashola without any commensurate improvement or result. What internal control mechanisms have government and the ministry of power placed to ensure checks and timely reimbursement?

    The question is: Do DISCOs deserve another government loan? From the onset, the ideal situation would have been to allow those who took over the existing power assets to invest from the scratch in brand new companies of theirs to compete with NEPA or PHCN.

     

    • Sunday Onyemaechi Eze,

    sunnyeze02@yahoo.com

  • ‘Niger Delta indigenes need bailout for modular refineries’

    ‘Niger Delta indigenes need bailout for modular refineries’

    Ijaw Youth Council President, Pereotubo Roland Oweilaemi, is a lawyer. In this interview with AKINOLA AJIBADE, he speaks on conditions for peace in the Niger Delta region, restructuring and the need for a bailout for the region’s indigenes interested in owning modular refineries and marginal fields, among others.

    Two years into President Muhammadu Buhari’s administration, what is your take on peace in the Niger Delta?

    Peace in the Niger Delta is inevitable and must be achieved irrespective of who is at the helm of affairs. It is important and we are working tirelessly to ensure that there is peace in the Niger Delta and Ijaw territories, and the government at the centre is trying to settle down to attend to some of our demands. It is expected that we give them some time to dress the table and attend to the problems of the Niger Delta people

    Do you buy into the modular refineries programme, especially in view of the criticism that they are not profitable?

    With due respect, I don’t want to agree that modular refineries if properly handled are not viable. I don’t agree with the proponents of that ideology. Modular refinery is a good gesture by the Federal Government. It is just to move away from oil theft, to move away from illegal oil bunkering. but the worry is that the people, who are supposed to be empowered to do this are not the ones in charge. I mean the Niger Delta people,  the Ijaw people, who are involved in one form or the other, but are not doing the oil business properly. This is the essence of modular refineries. We find out that the government is not giving the sons and daughters of the Niger Delta the opportunity to own and operate modular refineries because the conditions to get them are very stringent.The financial involvement is very huge and we do not have that kind of money. So, we are calling on the Federal Government to relax these conditions to enable us also own and operate modular refineries, so that the peace we expect will continue to be part of the Niger Delta region.

    Are you aware that DPR has reduced the initial deposit from $1million to $150,000?

    Yes, I am aware and that’s still too much? It’s too much, we want further reduction. We have the oil, but we have not been managing this oil. We don’t have a stake in it so it should be relaxed. It should be brought down that we might also participate as equal owners in the project.

    Do you have colleagues in the Niger Delta, who have applied to  the DPR , because it said it was waiting for people to submit applications?

    How can you apply for something that you knew from the onset that you cannot start? You know the requirements, you have been given the requirements and from the word go, you know that you can’t do it. There is no miracle, conditions are stringent. We can’t apply and get it concluded logically, that is why we are saying that they should relax the conditions for us to be co-owners. You can’t say that the process is open and they expect people from Niger Delta, people from Ijaw extraction, to apply. How will they apply for something that they know that they won’t get at the end of the day? You already know the condition. The involvement, the logistics to put together to get a modular refinery is huge, that is why we are saying they should bring it down please.

    Do you expect a bailout or something similar for Niger Delta indigenes?

    That is what we expect. As a matter of fact, we are calling on the government to give us a time frame of about five to 10years, to get the modular refineries set up for a group of youths in the Niger Delta and say that from a particular time of the year, pay a certain amount to the Federal Government and at the end of the payment, you will become the owner of the refinery. That is palliative.

    So, what are you doing to reach out to those in authority concerning this particular issue?

    Yes, we were talking to them. I was with my elder brother, the Special Adviser on Amnesty, and we had fruitful discussions on how we will ensure that there is peace in the Niger Delta region. Of course, you will agree with me that where there is no peace, you can’t  attract  development, so, it is our responsibility to ensure, as youth leaders, that there is peace in the Niger Delta. That is the only panacea for development in the Niger Delta and we expect the government at different strata to do some basic things for us to get this peace we are looking for.

    Ogoni cleanup, do you see the project ongoing?

    It is unfortunate that we don’t seem to see what should be happening  now on site. The process is slow and we are not pleased about it. Ogoni is not the only place, it is peculiar, but it is not the only place that requires cleanup in the Niger Delta. There are so many places that are bastardised, our farmlands are gone, our aquatic life is gone, everything is gone. Our mothers cannot farm, they cannot fish. So, we need cleanup in almost every place in the Niger Delta, but you must start it from somewhere and that is why the government has decided to start from Ogoni. However, the speed we expected is not the speed we see on ground. I am calling on the government to ensure that Ogoni cleanup exercise is given priority attention.

    Federal Government plans marginal  fields bid round before the end of this year. How prepared are the Niger Delta youths to take advantage of this opportunity?

    We are very ready and capable to own and operate marginal fields, but the problem is that some people say we are not capable. We have gone through a lot of skills acquisition. We are being trained. We have Ijaw sons and daughters, people from the Niger Delta that can own marginal fields and operate it successfully.

  • No to bailout of Discos

    SIR: I wish to draw your attention to the travails the former members of staff of the defunct Power Holding Company of Nigeria (PHCN) are going through due to non-payment of their severance package. As I write, over 5,000 have not been paid a dime, terminal benefits, gratuity and other entitlements. Even those that were paid, up till this moment, their terminal allowances such as leave, housing, annual productivity bonus, 16 months arrears, etc. have not been paid as agreed before the eventual takeover by the so-called un-identified investors. The former staff are dying on daily basis as a result of man’s inhumanity to man. In addition, over 1,000 death benefits have not been paid.

    If I may ask: Is there any visible difference between the pre and post privatization? Are we not still hovering between the traditional 4,000MW plus? While South Africa and Egypt, with less than 100 million in population are generating over 60,000MW. What an irony!

    When you appointed Babatunde Fashola as the Minister of Power, Works and Housing, everybody was jubilating, thinking that light has come at the end of the tunnel. With due respect to the honourable minister, I think the only visible achievement he has recorded so far is the tariff-increase. Maybe the ministry is too big for him to handle. The minister would have written his name in gold if he had vigorously pursued the payment of the entitlements of these helpless, shortchanged Nigerians to the fullest.

    May I appeal to you to use your good offices as a matter of urgency to compel the authorities concerned to pay these people their severance/terminal benefits. Since there is no going back on the privatization exercise, according to Minister Fashola, there should be no going back on the payment of their entitlement period!

    Lest I forget, I was made to understand that the federal government is working towards another bailout for the Distribution Companies (DISCOs) for the metering of electricity consumers. It is high time you break your silence and ask questions on the happenings in the power industry. Notable Nigerians like the former Vice President, Atiku Abubakar, Senate President Bukola Saraki, Speaker Yakubu Dogara and business mogul, Aliko Dangote have all lent their voices to this illegality. In February 2015, the Central Bank of Nigeria (CBN) gave loans to the GENCOs and DISCOs. The apex bank disbursed a total sum of N182.6 billion to Nigerian Electricity Market Stabilization Facility (NEMSF) and barely some days later, it gave another sum of N39.53 billion to the second batch of beneficiaries.

    These are interventions from the apex bank which I expect the CBN governor to comment on, whether it is legal, logical and acceptable norm to sell a so-called non-performing company to someone and later give the person money to help run the company?

    CBN governor Emefiele forgot to tell us what the money was used for, and what necessitated the so-called intervention. Your Excellency, please, for history and posterity sake, do not approve any further bailout for the companies. After all, they promised to invest their monies in the companies. So, where are the so-called investments?

     

    • U.S. Ladan (Snr),

    Jos.

  • Bailout funds and Senate’s verdict on Ugwuanyi

    Bailout funds and Senate’s verdict on Ugwuanyi

    RECENTLY, members of the Senate Committee on State and Local Government Administration led by its Chairman, Senator Abdullahi Gumel, were in Enugu State on an oversight function on the utilization of bailout funds released to states by the federal government.

    The senate committee, after scrutinizing the Enugu State’s record on the above subject matter, rated Governor Ifeanyi Ugwuanyi as the best governor in the utilization of the federal government’s bailout funds in the country.

    The committee chairman applauded the administrative ingenuity of the governor in managing the funds, describing it as “impressive and in line with the principles of accountability. He noted that Ugwuanyi was “transparent and prudent in the use of the funds in a way the committee had not experienced anywhere else”.

    While appreciating the peaceful atmosphere in the state and the innovation applied by the state government in management of the funds, Gumel urged other states to take a cue from Enugu.

    According to him, “we have gone through the books. And as far as the bailout funds are concerned, everything is in order. In fact, Enugu State has even gone further because we haven’t seen this in any other state.

    “They gave us the list of all the beneficiaries as it was prepared by the banks. This is an innovation and we are reflecting it in our report. We are not doing it because Ugwuanyi was our colleague; we are doing it because we have seen with our eyes.”

    Prior to the presentation of the report, the committee had earlier on arrival paid a courtesy visit to the Government House, Enugu, where they were received by the governor.

    The governor, while addressing the senators, noted that their legislative function was a very important assignment that promotes the enthronement of accountability and transparency in the management of public funds.

    He informed them that the N4.207billion bailout fund his administration had received was judiciously deployed for the purposes of liquidating the outstanding pensions and subvention to parastatals, agencies and departments.

    He explained that although the state had applied for bailout funds from the federal government, totaling N40.9 billion, “we received only N4.207billion to be used for the liquidation of outstanding pensions and subvention to parastatals, agencies and departments”.

    Throwing more light on the fund’s utilization, the governor expressed his elation at his administration’s prudent utilization of the fund. His words: “Distinguished Senators, I am happy to announce that we successfully utilized the funds for the stated purposes, as you would confirm from the records (to be) made available to you by the State Ministry of Finance.

    “You will also be furnished with the details of how we applied other funds released to the state by the Federal Government within the life of this administration.”

    While commending the federal government for the “bold and timely initiative” in providing states with bailout funds for use in addressing critical issues of development, Ugwuanyi equally used the opportunity to further appeal for the refund of over N22 billion the state government has spent on the reconstruction and rehabilitation of some federal roads in the state.

    The senate committee had also during the courtesy visit thanked the governor for receiving them and applauded his administration’s achievements, especially in the areas of good governance, infrastructural development and payment of workers’ salaries, explaining that the visit was in furtherance of their legislative oversight duties to ensure transparency and accountability.

    From the foregoing, it could be boldly stated that Ugwuanyi has exceeded all expectations in the face of the daunting economic challenging in the country and still remains committed to fulfilling all his promises to the people of the state in line with the manifesto of the Peoples Democratic Party (PDP).

    Against all odds, the governor has, through his administration’s peace and grassroots development initiatives, brought good governance and massive infrastructural development to the doorsteps of the people of the state, especially the rural dwellers.

    With the regular payment of workers’ salaries; display of commitment to accountability, transparency and prudent management of the state’s lean resources; simultaneous execution of 35 development projects across the 17 local government areas, among other critical infrastructure in the state; it is obvious that the senate’s verdict on the governor is a valid endorsement of his visionary leadership and managerial prowess.

    It is note-worthy that the verdict coincides with the recent award conferred on the governor by The Authority Newspapers as “The Outstanding Governor of the Year 2016 on Economic Development and Infrastructure”.

    While presenting the notification letter for the award to the governor at the Government House, Enugu, the Managing Director of the newspaper, Mr. Madu Onuorah, noted that “The rate of development is outstanding, especially with regards to infrastructure, in spite of the fact that Enugu State is not an oil producing state and therefore, gets little from the Federation Account.

    “And you don’t have cluster of businesses and major urban centres like some surrounding states to tax in order to lift up the state’s Internally Generated Revenue (IGR). It is still a surprise that with the development going on here, Enugu is one of the few states in the Nigeria to pay workers’ salaries as and when due, and as I understand, by the 25th of every month.

    “A trip round Enugu State shows your indelible imprints. It is all too glaring to be ignored. You’re not a man who goes for half measures. You’re a man whom Nigeria needs at a time like this as you are the new face of the Nigerian spirit that won’t give up even in the face of challenges but opt for a noiseless but massive development of the state’s infrastructure.”

    From all indications, there is no doubt that Ugwuanyi is treading on the path of vision and greatness and therefore, should be encouraged to take Enugu State to an enviable height.   Enugu State is truly in the hands of God!

  • Ekiti workers to EFCC: monitor bailout funds

    Ekiti workers to EFCC: monitor bailout funds

    Civil servants in Ekiti State have called on the Economic and Financial Crimes Commission (EFCC) and Organised Labour to monitor the bailout package to be released soon.

    An interest group, Enlightened Workers’ Forum (EWF), claimed that only N5 billion of the N9.6 billion received from the Federal Government last year was used to pay one month salary to workers while pensioners’ benefits were not paid.

    In a statement in Ado-Ekiti yesterday by EWF Coordinator Mike Bamidele, the workers advised the Federal Government not to pay the new bailout funds into the state’s account.

    The workers suggested that the funds should rather be paid into a dedicated account that will have the Permanent Secretary, Ministry of Finance and the Accountant General as signatories.

    Besides the EFCC, other bodies that should be represented in the disbursement are the national secretariats of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

    “The team should demand from the state the salary vouchers and order payments directly into the accounts of individual workers and the same should be done for pensioners.

    “The fund should be protected in such a manner that no governor would have any form of control over it.”

  • Bailout: Aregbesola’s aide says disbursement was transparent

    Bailout: Aregbesola’s aide says disbursement was transparent

    An aide to the Governor of Osun State, Oluremi Omowaiye has said the state can’t be blackmailed on the disbursement of the bailout fund from the federal government because the N34 billion given to it was disbursed transparently.
    Speaking during a radio programme monitored in Ibadan on the recent protest retirees to the assembly complex, he explained that a request of N64.4 billion to cover salaries, allowances, pensions and gratuities and N23.9b were requested to offset the outstanding arrears of salaries, allowances, pension and gratuities of local governments workers by state but the Central Bank of Nigeria (CBN) only approved and released N25.87 billion to cover just salaries and allowances of state workers, leaving out pension and gratuities while only N9.117b was approved and released by the CBN for arrears of salaries, allowance also leaving out local government pension and gratuities just as it was done for their counterparts in the state.
    He explained further that no fund was released for pension and gratuity by CBN despite the fact that it was included in the request of N64,327,492,947.01 for state workers and N25,871,920,000 for local government workers.
    Omowaiye said to further display high level of transparency in the disbursement of the loan, the state government and the labour unions agreed to supervise the disbursement in line with the CBN guideline, an apportionment of a committee headed by the first NLC President, Comrade Hassan Sunmonu, with labour unions and other stakeholders as members to monitor the fund and the revenue from other sources.
    He added that despite the fact that pensioners were not captured in the bailout fund released to the state Governor Rauf Aregbesola magnanimously ensured that both state and local government pensioners benefited from the bailout fund.
    He further stressed that It was important that he debunk insinuations aimed at blackmailing Aregbesola’s administration that bailout was mismanaged.