The Nation Newspaper

Tag: Fed Govt

  • Should Fed. Govt. hands off refineries?

    SIR: I read the views expressed by a former acting Governor of Kogi State, Chief Clarence Olafemi, in The Nation of May 16, to the effect that “government should hands off refineries if it was intent on eliminating corruption in the sector.”

    I disagree with his view. There are many misconceptions about a lot of issues in Nigeria. One of which is that the Federal Government need not be in charge of directing the economic affairs of the nation. Government, they say has no business in business.

    We have forgotten very quickly how the government of President Roosevelt averted the recession of 1923, 1929-1933 caused by the American private sector. That recession almost plunged the world economy into a catastrophe. Roosevelt’s “new deal” economic programme helped staved it off.

    Presidents George Bush and Barack Obama’s economic policies which entailed spending public money to prop up the economy cushioned the effect of the 2008 world recession caused by banks executives who gave out loans to people who couldn’t pay off their debt. General Motors and many other private companies got a leeway and jobs were protected. Governments worldwide did the same thus averting economic disaster.

    Ninety-nine percent of the refineries in OPEC member countries are run by the public sector while two of the most successful airlines in the world “Emirate” and “Etihad” are run by their various governments.

    The privatisation of the power sector in Nigeria has shown clearly that it isn’t as though that government can’t run establishment but the fact that whether private or public, workers fall prey to the systemic rot in the country.

    Of what positive effects have the privatisation programmes of Presidents Olusegun Obasanjo and Goodluck Jonathan from 1999- 2007 and afterwards been to Nigerians?

    The problem with Nigeria is the lack of visionary leadership which is important in the development of a nation. No matter the potential wealth of a country, if the leaders aren’t visionaries, the country would never develop. The Book of Proverbs 29:2 captures it succinctly, “when a good man rules the people rejoice but when a bad man rules they groan with agony.”

    There is no country in the world that can survive without its government. Could we please put things in proper perspective?

     

    • Essien Idiong,

    Port Harcourt, Rivers State.

  • Fed. Govt. lack of coherent policy on physically challenged

    SIR: It is now one year and nothing has changed, nothing new has occurred as far as physically challenged people are concerned in Nigeria. Ordinarily one would have thought that the euphoria of change which came with the Buhari-led government would have translated into positive difference for the physical challenged people but unfortunately the situation is no!

    President Buhari must act fast.  Bad as it may, the remaining three years could also usher in tremendous changes and substantive difference in the lives of the physically challenged who are desperately in need of succour at all fronts.

    The problems have to do with the inability of the federal government to recognize the physically challenged as the most important minority group in the country; as well as its inability to also recognize the physically challenged as a substantive economic unit. The moment the federal, state government and local governments can come to terms with these two facts, things will be handled differently in the area of disability. It will become very easy for the government to plan efficiently, easier for government to pull a large population out of poverty and for government institutions at all levels to broaden the allocation of resources.

    Some of the urgent ideas that will benefit physically challenged people include:

    1). A small and medium enterprise (SME) fund for physically challenged people.

    There has been a lot of talk, a lot of written materials and a lot of      policy debate on SMEs but none have been considered specifically for people that are physically challenged. It is time that we set up a special SME fund for physically challenged people which is interest-free and guaranteed by the federal government. There are a lot of physically challenged people endowed with talents and skills but because of the challenge of funding they are trapped in poverty.

    2). Upgrading and expansion of all schools and institutions of physically challenged people. Since we cannot build new schools and facilities for the physically challenged people, why don’t we then upgrade all existing facilities, retrain teachers and tutors? This endeavor should be passed to all private institutions because more work is being done at the private level than even the public sector.

    3) Grant scholarships to physically challenged to study. There is urgent need to educate our physically challenged citizens to expand their knowledge and skills. Albert Einstein, the father of science was considered disabled and he still changed the world hence we must take the chance and invest more in the capacity of the disabled

    4)  Free health policy. Most physically challenged people are poor and they retain the highest figure in poverty statistics, they do not have access to health and generally they are being discriminated against, it is high time that the government and the private sector steps in to grant free health services to the physically challenged people

    5)  Sports Academy for physically challenged people. The gains and exploits which our physically challenged citizens have recorded at the paralytic games home and abroad is enough to inspire us to action but still we won’t. They have earned a place in our sporting history with all the medals and accolades they brought home. Nigeria is full of talents in various sporting activities; javelin, short-put, weight-lifting, handball etc. but they lack befitting sport facilities and trainers. The Federal Government should immediately set up a standard state of the art sports academy equipped with trainers, materials and facilities specifically dedicated to the physically-challenged.

     

    • Hon. Adeyemi Abidemi Adebola

    Lokoja.

  • Fed Govt urged to protect property

    The Federal Government has been urged to protect  its properties nationwide. Besides, it should encourage harmonious relationship with states where the properties are to protect concessionaire’s interests.

    Mr. Olu Adenodi,  Chief Executive Officer of BHS International, the concessionaire to the Tafawa Balewa Square (TBS), who made this call in Lagos, urged the government to secure a “no objection approval” for the concessioned properties to  check the hurdles on leaseholders’ and investors path.

    He noted that the government’s failure to fulfil its obligation to asset ownership will put the concessionaire in a precarious position and hinder its financial obligation to lenders and investors.

    Adenodi warned that if such properties are not adequately protected or checked, host state governors where Federal Government properties are situated or located may be tempted to show interest, with a view to converting or taking over such facilities from the Federal Government.

    “It could also expose the Federal Government to damages in several billions of naira as seen in the old Federal Secretariat in Ikoyi, Lagos, transaction, where an Arbitration Panel has ruled in favour of a concessionaire ordering the Federal Government to pay a huge sum as damages for breach of contract,” he warned.

  • Fed Govt audits military payrolls

    Fed Govt audits military payrolls

    The Federal Government has begun a special audit of the payrolls of the Armed Forces comprising of the Army, Navy and Air Force.

    Minister of Finance Mrs. Kemi Adeosun yesterday in Abuja met with the Continuous Audit Team looking into the alleged payroll infractions in the military.

    Adeosun said the audit was “urgent and critical, given the recent revelation of payroll leakages in the military. We have challenges with the payrolls of the Armed Forces and we have plans to bring in all the ministries into the IPPIS before the end of the year, but in the interim, we just thought that it is necessary to respond to the allegations and revelations of the excesses of their (military) payrolls”.

    The government, she stated, wants “to investigate to be sure that the information is true and to take steps to ensure that the measures we have put in place to check such abuses are adequate, to improve the controls and to give more assurance that every Naira that is going to the military for their payrolls is actually valid”.

    The Permanent Secretary, Ministry of Defence, Mr. Danjuma Sheni, while speaking at the meeting, said: “The special audit was initiated following the revelations of huge payrolls frauds that had taken place in the military with a view to ascertaining the current position. The Minister of Defence and I have been particularly concerned about the adverse reports in the papers about certain activities concerning the payroll of the Air Force.

    “This initiative will bring about integrity, transparency in the payrolls of the Armed Forces. I speak on behalf of the services too.  The Army, the Navy and the Air Force are fully on board in this initiative. We look forward to the conclusion of this assignment and we are sure that ultimately, the military will be better for it.”

    The head of the Continuous Audit Team Mr. Mohammed Dikwa, who is Director of Special Projects Ministry of Finance, said they have met “with all the services and have agreed that we will forge ahead in that direction. We have so far drawn a roadmap on how to go about this.  First, we will get the military on to the Government Integrated Financial Management Information System (GIFMIS) platform which is an IT based system for budget management and accounting of the federal government and then we will migrate to the Integrated Payroll and Personnel Information System (IPPIS)”.

    He also disclosed that “about 726 Ministries Departments and agencies (MDAs) are already on the GIFMIS platform and about 400 MDAs on the IPPIs.  We hope that the security agencies and the others left will be brought on board as soon as possible”.

  • Fed Govt files amended charge against Kalu

    Fed Govt files amended charge against Kalu

    The Economic and Financial Crimes Commission (EFCC) yesterday, at the Federal High Court, Abuja, filed a 32-count amended charge against former governor of Abia State Orji Kalu, for alleged money laundering.

    EFCC in 2007 preferred 96 counts, including money laundering, against the ex-governor, his company, Slok Nigeria Limited, and Jones Udeogo.

    Kalu and his co-defendants were accused of diverting the state’s fund while he was governor between 1999 and 2007.

    The News Agency of Nigeria (NAN) reports that their re-arraignments were stalled following a pending appeal involving the third defendant, Slok Nigeria Limited, at the Supreme Court.

    Counsel to the third accused, Chief Solomon Akuma (SAN), told the court of the subsisting appeal at the apex court. He, therefore, urged the court to adjourn the proceedings to allow parties sort out the appeal.

    But prosecuting counsel, Mr. Oluwaleke Atolagbe opposed the application. He said Section 306 of the Administration of Criminal Justice Act (ACJA) 2015, prohibited stay of proceedings in a criminal matter at the trial court on account of a pending appeal.

    Atolagbe argued that the appeal in question was similar to the two previous appeals involving Kalu and Udoego, which the Supreme Court had decided on March 18.

    According to him, the apex court dismissed the accused persons’ objections to the charge preferred against them.

    Justice Chikere Anwuli granted the application and subsequently adjourned the suit till June 30.

     

  • Fed Govt opts for dialogue with Labour to prevent strike

    Fed Govt opts for dialogue with Labour to prevent strike

    Following threats to embark on a nationwide strike over the new fuel price, the Federal Government plans to hold talks with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

    Secretary to the Government of the Federation (SGF) Babachir David Lawal might lead the government’s team which will include some ministers, it was learnt last night.

    The two Labour centres at the weekend gave a 72-day ultimatum to the federal government to reverse the new petrol price of N145 cap or face mass action including strike and lock outs.

    A top official said yesterday that although the ultimatum is illegal, the Presidency will still give room for dialogue.

    The source said: “The government is inviting the NLC and TUC leaders for dialogue on the new pump price.

    “We will rather engage the labour unions than confronting them. Dialogue will allow them to appreciate why the government opted for the deregulation of the sector.

    “The position of the Federal Government is that the ultimatum by the labour unions is illegal because it is not a trade dispute.

    “It is about pricing. Why can’t they declare trade dispute when GSM operators came on board, charging as much as N30,000 per SIM card?

    “Is the telecoms sector not better now with deregulation? This government will certainly not inflict pains on the masses.”

    NLC President Ayuba Wabba said yesterday that Labour was not averse to dialogue.

    According to him, the NLC has received a text message from an official of the Federal Ministry of Labour, and it is ready to discuss as soon as a letter of invitation is sent.

    He said: “When we receive a formal notice, we will be there. We are ready for discussion and we are not running away from any discussion. You know also that every issue must be addressed on the round table where we can put all the parties together and all the arguments. So, anytime we receive notice of meeting, we will make ourselves available.

    “I saw a text message from a director in the Federal Ministry of Labour proposing a meeting. But we are waiting to receive a formal letter because you cannot rely on a text message. I received the text message that there will be a meeting, but I know there will be a formal letter. In the text, they said there will be a formal letter to us tomorrow (Monday) morning. So, once there is a letter, we will have some discussions.”

    Asked whether the meeting will take place in the ministry, Wabba said: “I don’t know where the meeting will take place. But anywhere they want us, we will make ourselves available. But I think the issue is at a higher level now. I am hoping on that. But at any level they want to engage us, we will be ready to engage the issues towards finding a lasting solution”.

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu, is expected to brief the House of Representatives today on the hike in the price of the petrol from N86.5 to N145.

    The House at the weekend summoned an emergency closed-down session to hear from the nminister before taking a position on the issue.

    Though the leader of the House, Femi Gbajabiamila who was at the stakeholders’ meeting held before the announcement of the decision , rationalized that the decision was in the best interest of the nation, some lawmakers argue that the House ought to debate the issue.

    Speaker of the House Yakubu Dogara, had said on Thursday that the House will collectively take a decision on the matter when it comes before them in plenary to ensure that the overall interest of all parties involved are protected.

    He had said: “We are the House of the people so we don’t judge. I do not want to come out with an opinion because I know that the matter, very soon, will come to the floor of the House of Representatives and as the presiding officer, I don’t want to give my opinion before that time.”

  • Fed Govt set to partner labour unions

    Fed Govt set to partner labour unions

    Secretary to the Government of the Federation (SGF) Babachir David Lawal has assured the leadership of Labour Unions that the government of President Muhammadu Buhari is prepared to partner them to achieve peace and security across the West African Sub-region, and prosperity for all.

    He spoke yesterday when a delegation of the Trade Unions of West Africa (OTUWA), led by the President, Comrade Mademba Sock, visited him in his office yesterday.

    A statement by the Director of Press in the office, Bolaji Adebiyi, hailed the decision of OTUWA to relocate its headquarters to Abuja. He observed that the proximity of the union to the Economic Commission of West African States (ECOWAS) will enhance the anticipated cooperation with the regional body, which will impact positively on the activities of OTUWA.

    He assured the delegation of the Federal Government’s help in settling down in Abuja and urged the Executive Secretary, who is a Nigerian, to direct any request through appropriate government channels.

    Sock said the union, after many years of inactivity, is now eager to contribute to the development and integration of the West African sub-region to justify the dream and vision of the founding fathers of ECOWAS.

    He emphasised that the union will partner governments in West Africa to lead workers to transform the sub-region and accelerate the socio-cultural, economic and political integration of its people.

    Sock hinted that the union will, between May 11 and 13, hold a Strategic Planning Workshop in Abuja to draw up a five-year plan of activities for OTUWA.

    The workshop, he said, is supported by the International Labour Organisation (ILO) and participants are drawn from Labour Organisations in the sub-region, across Africa and major global unions.

    He solicited the Federal Government’s support for its activities, including the allocation of land for its permanent site/training institute.

     

     

  • Fed Govt to complete 34 priority projects this year, says minister

    Fed Govt to complete 34 priority projects this year, says minister

    The Federal Government yesterday unveiled 34 priority projects to be accomplished this year.

    The Federal Executive Council (FEC) met to approve the document presented by the Ministry of Budget and National Planning. Vice-President Yemi Osinbajo chaired the meeting.

    Briefing State House correspondents at the end of the meeting, Minister of State for Budget and National Planning Zainab Ahmed, said the Executive was expecting the final copy of the 2016 budget from the National Assembly for the President’s assent “today or tomorrow”.

    She was accompanied by Minister of Information Lai Mohammed; Minister of State for Industry, Trade and Investment Aisha Abubakar; and Minister of State (Foreign Affairs), Khadija Bukar Abba.

    She said: “We presented 34 strategic priority programmes that need to be realised within 2016. Each of these projects has very clear deliverables and targets and indicators which will be measured to ensure that the respective Ministries, Departments and Agencies (MDAs) deliver on what we are committed to implement.

    “These 34 specific areas are grouped into four major objectives. The first is policy, governance and security; second is diversification of the economy; the thirdý is creating support for the poor and the vulnerable and the forth is reflating our economy through investment.”

    According to her, the 34 priority projects were approvedý for implementation by FEC.

    The Ministry of Budget and National Planning will track and report to the Council on the performance of the key prority areas quarterly.

    She added: “The 34 priority areas that we need to implement in 2016ý are categorized into six thematic areas.

    “There is policy, governance and security and one item from that is to achieve and maintain a capital spending minimum of 30 per cent in an annual basis starting from 2016. The objective of doing that is to reflate the economy and enhance employment generation capacity for the productive sector.

    “Another area is to achieve an appropriate exchange regime. The Central Bank of Nigeria (CBN) is leading this particular action. The objective is to achieve a predictable exchange rate by the end of 2016.

    “There is also a target for us to increase low interest lending to the real sector, the focus is to achieve an interest rate that is single digit, maybe nine per cent and the purpose is to increase output and growth. Again the Ministry of Industry, Trade and Investment along with CBN are taking action on this.

    “We also have a target to maintain a stable debt management strategy so that we can ýoptimise the local and foreign debts that we have and the Ministry of Finance and the Debt Management Office will be taking action on this.

    “On the thematic ýarea of diversifying the economy, we plan to implement measures to achieve self-sufficiency and become a net exporter of certain number of agricultural produce the first one being rice. We plan to attain self-sufficiency in rice production by 2018, in tomato paste 2016 and also increase local production of maize, soya beans, poultry and livestock. The deadline for these will be announced later in the year.”

    She added: “The Ministry of Agriculture is still trying to work out details. It means we will stop importing and we will get to a point when we will start exporting.

    “We also have plans to expand the agro allied sector to intensify local production of cassava, cocoa, cashew nuts, fruits and sesemi seeds and the Agric Ministry is also leading in that area.

    “There is also plan to make use of 5,000 hectares arable land ýin 12 River Basin Development Authorities and to utilise 22 dams  for commercial farming by prospective investors and the objective is to extend farming so that it can become and all-year round activity and that there is productivity all-year round.

    “There is a plan to implement a road map  to increase priývate sector investment in tourism, sports and the objective is to increase investment in the service sector, thereby increasing job creation and youth employment.

    “The power, rails and road ýis also a very important priority area. There is a number of specific activities but one of them is to optimise up to 7,000 megawatts installed capacity and to ensure the associated infrastructure to ensure we transmit and distribute this capcity in the maximum operational level that is obtainable and also to conclude the privatisation of NIPP plants and improve management and performance of TSA.

    “The Ministry of Power, Works and Housing is leading in this regard. The target deliverables is to increase the availability of power, thereby enhancing investment,  productivity and employment and business growth in our country.

    “There is also the priority objective of resolving all issues on ýgas pricing. The availability of gas is very key to the availability of power to the nation; so, gas pricing is a priority and is currently being addressed and will be finalized and payment will be provided to the gas suppliers who are being owed significant amount of money.

    “And also there is a plan to conclude the road map development. The objective of all of these is to increase investment, and gas peaks supply to the oil industry.

    “There are plans to complete the Kaduna-Abuja-Ajaokuta ýrailway lines  in 2016. We are also revising the National Rail Masterplan, which is commencing construction of the Lagos – Kano standard Gauge Rail line and also to finalise the negotiation regarding the  Calabar-Lagos rail line.

    “Of course, the objective of this is to increase availability of mass transist, to relief pressure on road infrastructure.”

    Mrs Ahmed said there was also a plan to rehabilitate and construct 31 major projects and restore the degraded sections of some major highways and improved connectivity over a distance of 210,093  kilometers through public works maintenance, Public Private Partnership (PPP) and other interventions.

    The fourth thematic area, she said, includes oil and gas reforms.

    She said: “One of the key objective is to adopt and execute a comprehensive national oil and gas policy, which is supposed to be the road map for the petroleum industry development diversification as well as privatisation and also to adopt and execute a road map for the stoppage of gas flaring in our country.

    “We are setting a three-year deadline to achieve self-sufficiency in  refined petroleum productsý and to become a net exporter of petroleum products.

    “The objective of this is to increase domestic supply of refined products and to reduce demand on foreign exchange for importing refined products in our country.

    “The ministry of petroleum is pushing for this. There is also a plan to push for the passage of the Petroleum Industry Bill (PIB) in conjuction with the National Assembly.

    She added: “Nigeria has been classified as one of the countries that is very poor in terms of ease of doing business,ý so we have a target to move 20 places up the ranking from 169 to 149. We are going to do this by implementing a number of measures specifically targeted at fast-tracking business approvals, acquisition of land titles, issuance of visas for persons seeking to come into our country and do business.

    “The sixth area is the investment in the lives of our people by implementing various social projects, covering health, education and the essence is to bring succour to the poor and vulnerable to achieve the targets set by the Social Protection Policy, which is ýcurrently under production. Almost every ministry has a role to play in this.

    “On health sector, we plan to rehabilitate 5,000 primary health centres in 5,000 wards in 2016. The objective is to deliver affordable health care services to Nigerians as closed as possible to their homes.”

    “Let me emphasis that when we say we want to move towards a predictable exchange rate in the country, we are not planning to devalue the naria. The CBN and the money policy committee is working on this and will be concluded and made available to the country to enable users be able to predict the exchange rate at any point in time,” Mrs Ahmed said

    She said: “On the 2016 budget, I must say the executive and legislature have worked very hard putting things together, reviewing the details of the budget and it is at its final stage.

    “So maybe between today and tomorrow, the National Assembly will start the process of transmitting the details to the President.”

    The Minister of State (Foreign Affairs), Mrs Ahmed said, presented the notes of the President’s visit to Washington DC for the Nuclear Summit to FEC.

  • Fed Govt mulls zero JV funding for oil exploration

    Fed Govt mulls zero JV funding for oil exploration

    • Nigeria, Texas trade hits $15b

    The Federal Government would adopt the zero funding model for JV operations from next year, the Minister of State for Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Ibe Kachikwu, has said.

    Kachikwu, who made this known at the ongoing Offshore Technology Conference in Houston, Texas, U.S, said the step became necessary following the arrears of Corporation to the various Joint Venture (JV) projects,

    Kachikwu, who was represented by the Group Executive Director, Gas and Power, NNPC, Seidu Muhammed, said the zero JV funding is to be adopted in view of the long debt of cash calls of over $5billion owed by the NNPC on behalf of the government over the years.

    He said  government has a very big funding challenge, and unable to meet its JV counterpart funding, lamenting the current realities in the epileptic operational condition of refineries, and the high level of poverty in the communities where these oil firms operate, among others.

    Under this model, he said, the operating companies would no longer wait for the NNPC counterpart funding before going on with operations and projects’ implementation. They will get funds and go ahead with implementations, while the NNPC’s bureaucratic processes of approval including endorsement by the National Assembly continues. The operators of the JVs will deduct costs at the end and remit what are due to NNPC.

    Kachikwu added that the Ministry of Petroleum Resources and the NNPC are carrying out interventions in the security issues, noting that such intervention in pipeline security has yielded fruit with three major pipelines including Escravos and Forcados linked to operation of the refineries. He also extended hand of partnership to the private sector to help in the refineries.

    Meanwhile, the Mayor of Houston, Sylvester Turner, has said the oil and gas trade between Nigeria and Houston has become a success story as it reached $15 billion.

    He stated this in his special message to Nigeria’s Small and Medium Enterprises (SMEs) and Houston’s Original Equipment Manufacturers (OEMs) in this year’s Nigeria Content Investment Forum in Houston, Texas.

    According to him, the existing close ties between Nigeria and Houston have made many oil companies to open offices and associates in Nigeria. “330 Houston companies have businesses and trade connection with Nigeria,”he said,  adding that Houston is ranked Nigeria’s largest U.S gateway for international trade and for greater partnership.

    To further strengthen Houston/Nigeria oil and gas trade, the Mayor said in 2011, United Airlines opened direct flight to Nigeria from Houston to Lagos, linking two major energy cities.

    “This flight has promoted robust connections, and Houstonians and Nigerians have benefited greatly from this connection,” he added.

    Turner thanked the organiser of NCIF and publisher of Sweetcrude Reports, Mr. Hector Igbi kiowubo for the vision of the forum, which seeks to continue to grow credible partnership, fostering industry support and participation, cultivating new and innovative ideas  and initiatives that will be mutually beneficial to Nigeria and Houston.

  • Fed Govt subsidises petrol with N12.88 per litre

    Fed Govt subsidises petrol with N12.88 per litre

    The Federal Government has said it would pay subsidy on petrol from the recoveries made in the first quarter of this year.

    This is contained in the latest Petroleum Product Pricing Regulatory Agency (PPPRA) template released in Abuja.

    It said  between January and March, the Federal Government was able to save about N10 billion as a result of selling the product above the Expected Open Market Price.

    According to the new template, the expected open market price of the petrol has risen to N99.38 per litre for independent and major oil marketers and N98.62 per litre for retail outlets owned by the Nigerian National Petroleum Corporation (NNPC).

    It added that the expected open market price was the actual price of the product without subsidy and was based on the current exchange rate of N197 to a dollar.

    It said at the current price of N86 per litre at NNPC retail outlets, the Federal Government was paying N12.62 per litre as subsidy on the product and N12.88 per litre as subsidy for other oil marketers’ price of N86.50.

    A breakdown of the template revealed that for NNPC retail outlets and independent and major oil marketers, the landing cost of PMS imported into the country was N84.32 and N85.08 per litre respectively,

    It stated that the distribution margin, which include retailers, transportation, bridging fund and dealers margin among others stood at N14.30 for both the NNPC and other marketers.

    According to the statement, this brings the current expected open market price to N98.62 and N99.38 for NNPC retail outlets and other marketers respectively.