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Tag: Fed Govt

  • FAAC: Fed Govt, states, councils share N698.7b

    The Federal, states and local governments yesterday shared N698.710 billion for September.

    Minister of Finance Zainab Ahmed, who presided over the monthly Federation Account Allocation Committee (FAAC) meeting, stressed the need for the tiers of government to save.

    The Minister told members of the committee to maintain transparency and save for the rainy day.

    A communique by the Technical Sub-Committee of FAAC after its meeting which held on Wednesday and signed by the Accountant-General of the Federation Ahmed Idris noted that the distributable statutory revenue for the month was N569.281 billion and the total revenue distributable for the month stood at N698.710 billion.

    “Crude oil export sales increased by 0.17 million barrels resulting in increased revenue to the Federation of $8.48 million. However, the average unit price dropped from $77.10 to $75.69. There was shutdown of pipelines which resulted in shut in of production at various pipelines. Revenue from Royalties increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) decreased significantly.”

    The breakdown for the month of September shows that the gross revenue available from the VAT was N79.154 billion as against N114.542 billion distributed in the preceding month, resulting in a decrease of N35.388 billion.

    The report also indicated that while the federal government got N277.197 billion, the state and local governments got N172.810 billion and 130.534 billion respectively. Derivation (13% of mineral revenue) amounts to N52.596 billion and cost of collection/transfer and FIRS Refund was put at N15.572 billion.

    “The distributable Statutory Revenue for the month is N569.281 billion. The total revenue distributable for the month (including VAT and Exchange Gain Difference) is N648.710 billion.

    The report of the committee on the Excess Crude Account (ECA) was stepped down and withdrawn to enable the committee to rework and represent it at the next meeting.

  • Fed Govt committed to payment of outstanding pensions, says PTAD

    THE Pension Transitional Arrangement Directorate (PTAD) has assured Nigerian pensioners of government’s commitment to offsetting the balance of the 33 per cent pension increase.

    It pledged to keep paying monthly pension of the senior citizens.

    Reacting to an ultimatum by the Nigeria Union of Pensioners to picket the directorate and other government agencies responsible for the payment of pension, the management of PTAD said it was collaborating with the Federal Ministry of Finance to ensure that the arrears was paid.

    PTAD said it has since cleared the outstanding 33% pension arrears for the Police Pension Department (PPD). It added that the only outstanding at the moment was 12 months of arrears for the civil service pensioners.

    According to the PTAD, pensioners from the parastatals were owed various months.

    The statement added that Minister of Finance Zainab Ahmed was committed to ensuring that pension backlogs are cleared.

    The minister, the statement noted, is working with PTAD and relevant government agencies to make sure that the backlog of outstanding pension arrears are cleared as soon as possible.

    The statement reads: “The attention of Pension Transitional Arrangement Directorate (PTAD) has been drawn to calls by the Nigeria Union of Pensioners (NUP) and the Federal Universities Pensioners Association (FUPA) over the non-payment of the balance of the 12 and 36 months arrears respectively of the 33% pension increase to pensioners.

    “For the record, the backlog of the 33% pension arrears has been owed since 2010 as a fall out of the upward review of the minimum wage to N18, 000.00. Though the increment had been approved, it was not implemented immediately thus creating accumulated arrears of 42 months.

    “PTAD commenced payment of the 33% pension payment increase in October 2014 and ensured that all arrears for the year 2014 were paid in December 2014. In 2016, the backlog of the 33% pension arrears for the Customs, Immigration and Prisons Pension Department was fully paid.

    “In the same year, 12 months’ pension arrears were paid to pensioners under Civil Service, Police, Parastatals Pension Departments. In November 2017, the Federal Government, through PTAD, further paid six months arrears across board to pensioners under Civil Service, Police and Parastatals Pension Departments.

    “Please note that the Federal Government has regularly made monthly pension payments to all retirees under the Defined Benefit Scheme (DBS) on PTAD payroll.”

  • Huawei, Fed Govt to train 1000 civil servants in ICT

    Huawei Technologies has signed a Memorandum of Understanding (MoU) with the Federal Government to train 1000 civil servants in Information, Communication and Technology (ICT).

    Huawei Vice President of Middle East, Mr  Xue Man at the signing ceremony in Abuja yesterday, said the ICT for Change training was part of the organisation’s effort to be more localised and fulfill its Corporate Social Responsibility (CSR).

    Man said that in fulfilling the company’s social responsibility, Huawei was not looking at simple material donation, but mind enlightenment and talent cultivation.

    “The ICT for Change training is aimed at empowering civil servants with fundamental ICT knowledge and skills.

    “The training will enable them to keep pace with the rapid advancement of ICT technology and the increasing demand for digital transformation-government and smart city capabilities.

    “With our rich experience in ICT, we will design and deliver the programme with our best subject matter experts.

    Secretary to the Government of the Federation (SGF) Mr Boss Mustapha, commended Huawei for the initiative as it exemplified government’s partnership for private sector organisation to drive its implementation policies and programmes.

    Mustapha said, “the ceremony marked another historic day in the annals of the current administration and the Federal Civil Service as the second phase of ICT for Change MoU is signed between the FG and Huawei.”

    He said that the first phase of the programme tagged: “Seed for Future that commenced in January 2017 and concluded early 2018 achieved the training of 2000 youths by Huawei as part of their contribution to national development.

    “This empowerment programme complements government, youths and students development initiative and job creation.

    The SGF said that the second phase of the programme would be jointly anchored by Huawei and Galaxy Backbone.

    Head of Service Mrs Winifred Oyo-Ita said: “The training will go a long way in helping government in one of goals in the 2017 to 2020 civil service reform which is capacity development for our civil servants, especially in area of technology know how.”

    Galaxy Backbone Managing Director Yusuf Kazuare, said Huawei and Galaxy currently owned digital infrastructure to connect all Federal Government entities across the nation.

     

  • NHIS crisis: Fed Govt, House to the rescue

    • Council, students issue threats

    The crisis rocking the National Health Insurance Scheme (NHIS) is far from being over. The governing council that suspended the schemes executive secretary has threatened to quit if its decision is reversed. Students’ unions are also plan to storm the NIHS office today. But the Presidency and the House of Representatives are intervening, report VINCENT IKUOMOLA, VICTOR OLUWASEGUN, ABDULGAFAR ALABELEWE and YINKA ADENIRAN.

    For the Executive Secretary of the National Health Insurance Scheme (NHIS), Prof Usman Yusuf, this is not the best of times.

    His suspension, the second in less than 18 months, has pitted workers’ unions within the scheme against one another.

    The embattled NHIS boss had showed up at work a day after his ‘indefinite suspension’ last Thursday by the scheme’s Governing Council.

    The unions staged protests and counter-protests on Monday.

    Security agents had hectic time controlling the organised protests staged by three unions at the NIHS Abuja headquarters by pro and anti-Yusuf.

    The unions are the Association of Senior Civil Servants of Nigeria (ASCSN), Medical and Health Workers Union of Nigeria (MHWUN) and Nigeria Civil Service Union (NCSU).

    According to the Governing Council, Yusuf was suspended over alleged gross misconduct.

    Other allegations against him include: fraud and severe infractions, public procurement infringement, unlawful staff posting, willful defiance of Council directives, violation of Federal Government’s Treasury Single Account (TSA) policy and superfluous arrogation of projects.

    Health Minister Prof Isaac Adewole had on July 6, last year suspended Yusuf over similar allegations.

     

    Students’ union bodies plan protest

     

    The National Union of Nigerian Students (NUNS) said it has mobilised and concluded plans to storm the NHIS office with other students unions tomorrow.

    The mission is to sack Yusuf from office.

    The students’ union body said, aside the fraud and sundry allegations against Yusuf, “Tertiary Institution Students’ Health Insurance Program (TSHIP) under the NHIS supervision has become another fraud and scam”.

    In a press statement by its spokesman Ibrahim Olawale Seriki, NUNS said: “While this is considered as bad precedence for our generation and those unborn, NUNS, National Association of University (NAUS), National Association of Polytechnic Students (NAPS) has jointly resolved to launch an action against this shameful act targeted at rubbishing the integrity of dear country and administration of President Muhammadu Buhari particularly as we approach electioneering year.

    “The NHIS ES earlier suspension by Health minister in July 2017 was over N919 million fraud allegations which he refused to honor until his controversial reinstatement in February 2018 by the Presidency.

    “The TSHIP under the supervision of NHIS has become another fraud and scam, it is best described as gambling on students’ lives, students are forced to pay the sum of N3, 500 each per session for TSHIP a charge increased recently from N2, 500 with approval of NHIS despite it woeful effectiveness and serial complains of poor and inconsistent fulfilment of statutory roles of HMOs by Students across the country.

    “Students have not benefited from this programme as expected, students die on daily basis following poor implementation of TSHIP, it is assumed to be a conspiracy between NHIS management and HMOs to defraud the students as well endanger their lives as we bank on imaginary health insurance policy (policy which does not work in real sense).

    “A student of the Emmanuel Alayande College of Education, Oyo State, is medically stranded with no aid from TSHIP; the Federal Polytechnic, Ado Ekiti, lost a student to reckless TSHIP; the Federal University of Technology Minna lost a student to the same failed insurance program; a 100 level student of the University of Abuja died recently over ineffective TSHIP, just as a student of same university (a victim/survival of an accident with permanent disability) is yet to get compensation and one is still financially stranded in National Hospital as we speak among many others too numerous to mention.

    “The incessant refusal of executive secretary to suspension to pave the way for a thorough investigation is a pointer to guilt and culpability stand of the ES even before the investigation, hence, the students’ move to act in defence of the constituted authority and restoration of sanity in our system towards complimenting the effort of Federal Governments’ fight against corruption and most ultimately to end the failed TSHIP and continuous murder of students by HMOs under the NHIS supervision with ineffective and fraudulent TSHIP programme.

    “Nigerian students, lovers of justice, admirer of rule of law, crusaders of due process and life savers are hereby invited to join us as we move to eject the adamant suspected Fraudulent ES who is refusing to stay aside from office for investigation on tomorrow (Thursday, October 25,)

    “Our prayers are the immediate vacation of the ES from office until investigation is concluded and immediate probe of TSHIP Programme and discontinuation of the program by NHIS.”

    But the Federal Government reinstated him on February 6, 2018, after an administrative panel found him not guilty of the allegations of abuse of office and maladministration.

    Yusuf officially resumed work on February 8, 2018, after he was given the clean bill.

    A protest staged by members of the NHIS chapter of ASCSN to prevent Yusuf from gaining access into the office, was countered by their NCSU colleagues.

    The situation that almost degenerated into security breach was however contained with the intervention of a combined team of police, Nigerian Security and Civil Defence Corps (NSCDC) and Department of State Services (DSS) operatives.

    But the Senior Special Assistant (SSA) to the President on Media and Publicity, Malam Garba Shehu yesterday said the Presidency has stepped into the NHIS crisis.

    Shehu, who featured on Channels Television Sunrise Daily in Abuja, said the Secretary to the Government of the Federation (SGF) Boss Mustapha and Health Minister Prof Isaac Adewole, had intervened in the NHIS crisis with a view to finding lasting solutions.

    The SSA noted with regret that the NHIS crisis had been ethnicised and politicised by some interest groups within and outside the agency.

    Shehu said: “Did the board follow due process in suspending this gentleman? There are opinions that said ‘no they haven’t’.

    “Again, we all have to do the right thing all of the times. I don’t deny the fact that there is a lot of work to do – (the crisis) is complicated by the fact that the whole thing about the NHIS has been ethnicised and politicised.

    “Even a political party was issuing a statement on matters that are unknown to it. I’ll tell you one thing, as we speak now, you know that no matter whatever mistakes this gentleman may have made, and that is to be proven because I don’t have the records to say yes or no, he has launched a major reform in that institution, which had blocked access to public resources.

    “Money from the NHIS is not money belonging to government, it is money taken from your salary, from my salary.

    “If we have been enlisted, we are supposed to get treatments when we fall ill. Then, you should ask the question, in 13 years of the NHIS, how many Nigerians have received the treatments.

    “Yet, you have HMOs, these vendors, taking N5 billion every month, money that is just being shared and somebody came and said, `look, this can’t go on’ and with strong support from this administration, the N5 billion has been reduced to N1.3 billion.

     

     

    “And even at then, the administration is not satisfied. We want to see healthcare delivered to the citizens of this country. So, there is a lot of work to do.’’

    The presidential aide, who stated that he was not in the position to challenge the allegations of wrong doings levelled against the executive secretary in some quarters, however, maintained that the two chambers of the National Assembly had previously cleared the executive secretary of the allegations against him.

    He also dismissed the accusation of “double standard” by the Buhari administration while dealing with cases of corruption being levelled against public servants or political office holders in the country.

    According to him, it was wrong to compare the case of former SGF Babachir Lawal to that of the NHIS scribe.

    “Well, there is no double standard there either than to say that the pictures that the government is looking at, many Nigerians, perhaps, may not be seeing those pictures,’’ he added.

     

    Fading faith in scheme

     

    The Nigerian Medical Association (NMA) yesterday called on the government to strengthen Nigerians’ faith in the scheme.

    The Association, which described the health insurance scheme as a vital tool in the attainment of the Universal Health Coverage, harped on the urgent need to improve enrolment to the scheme, which is currently put at less than five per cent coverage.

    Oyo NMA Chairman, Dr. Akin Sodipo made the call yesterday at the NMA House at a press conference to kick-off the weeklong annual event to celebrate medical and dental practitioners in the country.

    The event christened: “2018 Physicians Week” which is to run from October 21 to 27, is said to be “in recognition of the sacrifices and dedication to the wellness of their immediate communities and the Nation at large, and to also look at those factors that militate against the provision of effective healthcare by the Nigerian doctors.”

    The celebration themed: “Universal Health Coverage- Leaving no one behind”, according to Sodipo is chosen after analysing key issues affecting “our health care delivery system vis-à-vis quality of lives of Nigerians and in line with the aims and objectives of the Sustainable Development Goals (SDGs) 2015.”

    He said the UHC will enable everybody and all communities access the needed promotional, preventive, curative, rehabilitative and palliative health services.

    Sodipo said: “The healthcare delivery in our country is still largely out of pocket which constitutes about 70 per cent of our health expenditure as opposed to the recommended 30-40, abysmal low coverage by NHIS which is still less than five percent, poor budgetary allocation to health (less than five per cent of the total budget), inequitable distribution of human resources for health with inverse distribution of health personnel compared with the population with over 70 per cent of health personnel serving 30 percent urban dwellers as against less than 20 per cent health personnel serving over 70 per cent population living in our rural areas, generally low doctor/health workers to patients ratio, low per capita income, poor access to healthcare facilities among others.

    “In recognition of the importance of health financing in the achievement of UHC, a fundamental strategy to address our abysmal poor health indices, there is urgent need to improve enrolment in our National Health Insurance Scheme (NHIS) from the current less than five per cent coverage. Nigerians are increasingly losing hope in NHIS as a tool, which is vital to the attainment of UHC.

    “To achieve UHC, it is, therefore, important to strengthen the NHIS and explore other health care financing system like community-based health insurance which some states have keyed into. This scheme will significantly cater for the informal sector especially the rural dwellers.

    “There is also the need to ensure that our leaders muster enough political will for quality and effective healthcare services in Nigeria.”

    The NMA also called on the Federal Government to immediately constitute the council of the MDCAN and its sister profession, the Pharmaceutical Council of Nigeria (PCN).

     

    House investigate suspension of NHIS boss

    The crisis rocking the National Health Insurance Scheme (NHIS) got the attention of the House of Representatives yesterday. The Green Chamber said it will investigate the suspension of the scheme’s Executive Secretary, Prof Usman Yusuf.

    The House passed a resolution to raise an ad-hoc committee to investigate the issue.

    The House resolution was sequel to the adoption of the prayers of a motion of urgent importance by a member, Diri Douye (PDP, Bayelsa) on the floor yesterday.

    Moving the motion, the lawmaker said the latest NHIS crisis came barely five months after the executive secretary was ‘controversially’ reinstated by President Muhammadu Buhari from an indefinite suspension slammed on him by his supervising  Health ministry on July 2017 over similar alleged gross misconduct, corruption and nepotism.

    Douye noted that the suspended executive secretary flouted the authority of the NHIS Council by violently breaking into the Abuja Head Office of the Scheme on Monday, “aided by almost 50 heavily armed policemen and overpowered the security men.

    “The staff at the premises, including women were indiscriminately teargassed and manhandled.”

    “This very critical sector, on which the hope of our universal health delivery is  hinged, far from being a theatre of health it has degenerated into a theatre of war, with so many scandals in recent times.”

    Duoye’s colleagues condemned the scandals while contributing to the debate, with a member, Tobi Okechukwu (PDP, Enugu), lamenting: “this government claims to come and fight corruption but it is so sad that this impunity is happening”.

    Edward Pwajok (APC, Plateau), however, cautioned his colleagues not to be judgmental since the motion is investigative.

    According to him, “it does not need debating as it is investigative in nature.”

    When Speaker Yakubu Dogara called for a vote on the motion, it was passed by the majority.

     

    Council threatens to resign if suspension is reversed

    •Leave us out of your problems, HMOs tells ES

    The crisis took a fresh dimension yesterday as members of the Governing Council threatened to vacate office should the presidency reversed Yusuf’s suspension and investigation of infractions against him.

    This is as the Health Maintenance Organisations (HMOs) urged the executive secretary to leave it out of its problems with the scheme governing council.

    Announcing the suspension last Thursday, the council said the executive secretary would not be allowed into the office premises for the administrative panel investigating the allegations to do a thorough job.

    But, the executive secretary insisted that the council lacked the power to suspend him, hence their directive to him to proceed on indefinite strike would not stand. Challenging the council, Yusuf argued that only the President who appointed him has the power to remove him from office.

    Speaking to The Nation on the lingering issue, a source within the scheme doubted the possibility of council members working with the NHIS boss given their experience with him.

    The source who pleaded for anonymity noted that Yusuf was in the habit of flouting the directives of the council.

    Responding to the question on what would be the council’s next line of action should the Presidency quash the suspension and investigation instituted against the NHIS boss, the source said: “You see, one thing is clear, since this council was inaugurated till date, nothing has happened at the scheme. No instruction given to the ES was carried out. So, if he should be reinstated by the Federal Government, it is clear that the council and the ES can’t work together. So, we have to review that relationship.”

    When pressed further to know if the council members would resign, the board member said: “We will walk away. We cannot work with him anymore. The council will work away. We can’t work together.

    “The issue is this, in the course of this discussion; we need to clarify who has the superior power. The council formulates policies, serves as checks and balances to the management of all agencies.

    “So, if there are infractions, it is the prerogative of the council to question those infractions and investigate those infractions and whoever is been investigated shouldn’t be seating on the council as at that time. So the law is very clear about that.”

    Reacting to some of the allegations against the Council by Deji Adeyanju, a social crusader, Lekan Ewenla, representative of the HMOs on the Board of the NHIS governing council said there was no correlation between the HMOs and the infractions raised against the executive secretary.

  • Fed Govt begins payment to ex-Nigeria Airways workers

    THE Federal Government has begun the payment of 50 per cent entitlements of ex-workers of the defunct Nigeria Airways, who have successfully completed verification exercise.

    Chairman, Nigeria Airways Elders Forum Mr. Godwin Jibodu confirmed the development to the News Agency of Nigeria (NAN) yesterday in Lagos.

    Jibodu said the government had kept to its promise to start crediting the bank accounts of the beneficiaries, who have completed the verification process.

    He said: “I can confirm that some of our people have started receiving alerts and it is wonderful news to us. The payment comes three days after a pensioner completes the process.

    “We are very grateful to the President Muhammadu Buhari-led administration for finally coming to wipe our tears away after all these years.

    “The government has given hope to these pensioners and now, they will be able to attend to their health issues and other responsibilities.”

  • Fed Govt extends 2016 N-Power beneficiaries’ stipends beyond two years

    WITH two-year tenure of the  2016 N-power beneficiaries ending in December, the Federal Government has decided to extend payment of the stipends of the Batch 1 beneficiaries.

    A statement by the Senior Special Assistant on Media and Publicity, Laolu Akande, said the funds for the continued payments have already been provided for in the 2018 budget.

    He said beyond the payments of stipends, the Federal Government is also exploring further options to seamlessly transition the beneficiaries from the government job programme to positions where they are able to earn a sustainable income through a plan designed to enable them become valuable, all-rounded employees, employers or entrepreneurs.

  • Fed Govt pays N700m to vulnerable poor in Oyo

    The Federal Government yesterday said it had disbursed, through the National Cash Transfer Office (NCTO), about N700 million to over 12,000 households considered as vulnerable poor in Oyo State.

    The money, the government said, was shared between January, last year, and last July to move the vulnerable poor from poverty.

    The figure, which was drawn from 19 local government areas of the state, the government said, would have a multiplier effect on the socio-economic welfare of the citizenry.

    Addressing reporters yesterday at a three-day training programme on savings and group mobilisation for local government cash transfer facilitators in Oyo State, the Head of the state’s Cash Transfer Unit, Mr. Oladipo Ezekiel Oyekola, said the Federal Government remained committed to helping the extremely poor households and vulnerable groups of people out of poverty.

    He said N662,680,000 had been paid to 12,806 beneficiary households since the programme started in January, last year.

    Oyekola, while emphasising government seriousness and commitment to the programme since inception, added that payment has been made up till July, 201.

    According to him, the programme is targeted at extremely poor people and it was carefully designed by the Federal Government to ensure that the money gets to the real beneficiaries.

    Urging the participants at the training programme to use the knowledge they acquired to help the beneficiaries in their communities, Oyekola said from the 19 local government areas, which came on board, 12,806 households are currently benefitting from the programme.

    He added that the remaining 14 local government areas will soon come on board.

    Oyekola said: “And when they come on board, the total number of beneficiaries will be added to the existing 12,806 beneficiaries. When we started initially, the Federal Government appointed Stanbic IBTC Bank. We followed them to communities to capture the beneficiaries. Bank accounts were opened for them initially. So, when we started payment in January, 2017, the bank sent to the individuals the bank accounts they had opened.

    “But there was the problem of network. We have some communities where there were no branches of Stanbic IBTC; even we have some local government areas with no financial institutions at all.”

  • Union to Fed Govt: ensure compliance with labour laws

    The National Council of Industrial Global Union Federation in Nigeria has called on the Federal Government to enhance its monitoring duties towards ensuring employers’ compliance with labour laws.

    The National Vice-President of the union, Comrade Issa Aremu, made this known to newsmen at a press conference marking the Decent Work held in Lagos.

    The Vice President said inspection, monitoring and enforcement of labour laws by the Federal Ministry of Labour should be effectively scrutinised.

    “We demand that the Federal Ministry of Labour under the leadership of Dr. Chris Ngige stand up and renew its commitment and will to further enhance its monitoring duties and ensure that every employer complies with the provisions of our labour laws.

    “We look forward to fundamental changes in the operations of the ministry and improved inspection, monitoring and enforcement of labour laws” he said.

    The union also demanded the termination of all forms of employment offending human dignity and denying workers access to benefits. It described precarious work as an erosion of basic workers’ rights.

    “We demand immediate end to all forms of employment that offend human dignity and deny workers access to living wages, social protection and denial of the right to join the union.

    “We ask the employers to respect the law and where the law is observed in breach, the ministry of labour and other agencies if Government should enforce the law.

    “Precarious work has led to increasing erosion of basic workers rights such as freedom of association and collective bargaining.

    “The use of temporary/casual workers has led to depletion in union membership and capacity to organise in all sectors that include oil and gas, chemical and non-metallic, steel and engineering, electricity and textile” he said.

  • Fed Govt to float N100b second tranche Sukuk bond

    The Director-General, Debt Management Office (DMO), Ms Patience Oniha, yesterday expressed optimism that the second tranche of N100 billion sukuk bond would be floated before the end of the year.

    Sukuk or Islamic Bond is a financial instrument structured to generate returns to ethical investors without infringing on the Islamic law, which forbids interest payments.

    Oniha told the News Agency of Nigeria (NAN) in a telephone interview that the DMO had made significant progress to ensure successful issuance of the bond before year end.

    “June was when the budget was approved and Sukuk is a project that was also approved in the budget.

    “We will float it; we have made significant progress; we will issue it this year,’’ she said.

    Oniha said the second tranche would be specifically for infrastructure development just like the first one issued in September 2017.

    She said that the DMO was working with the Ministry of Power, Works and Housing on the projects earmarked for the second tranche of the N100 billion Sukuk bond.

    The DG also expressed optimism that the second tranche would be oversubscribed, based on the feelers from investors and the public.

    “We still have auctions regularly, we issue FGN Bonds and they have been oversubscribed. So, whether liquidity is tight or not, we have got good demands. In terms of sukuk, I think from the feelers we have got from investors and the public, it is a product the people want to associate with,’ Onoha said.’

    Some of the roads funded by the bond include the Ibadan-Ilorin Road, Kolo-Otuoke-Bayelsa-Palm Road, Enugu-Port/Harcourt Road, Kaduna Eastern By-Pass, Kano-Maiduguri Road and Loko-Oweto Bridge over River Benue, among others.

     

  • Fed Govt, Bayelsa, Akwa Ibom, Rivers to raise panel within 90 days

    ALL revenue lost to oil exploring and exploiting companies due to wrong profit sharing formula under the Production Sharing Contracts (PSC) since August 2003, the Supreme Court ordered yesterday.

    It directed the Federal Government to initiate moves to recover the funds from the oil giants.

    The court’s seven-man panel, led by the Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, gave the order in a consent judgment given yesterday in a suit filed by Rivers, Bayelsa and Akwa Ibom states against the Federal Government in 2016.

    The states, who sued through their Attorneys-General, agreed to an amicable settlement, which was reduced to terms of settlement.

    They filed the terms of settlement on April 6, 2018 and the apex court adopted it as its judgment.

    The terms of settlement were signed by the Attorneys-General of the three states – the late Emmanuel Aguma (Rivers), Kemasuode Wogu (Bayelsa) and Uwemedimo Nwoko (Akwa Ibom) as well as the lead counsel for the AGF, Mr. Lucius Nwosu.

    The Permanent Secretary of the Federal Ministry of Justice, Mr. Dayo Apata, signed as the witness.

    By the agreement, the AGF is expected to work with the three states to “immediately set up a body and the necessary mechanism for recovery” of all the lost revenue since August 2003.”

    The court directed that the AGF to, within 90 days, put in place the mechanism for the recovery of the lost revenue.

    The three states which had jointly filed the suit marked SC.964/2016, in the names of their respective Attorneys-General, contended that the Federal Government had been short-changed of its supposed shares of an estimated earnings of $1,149,750,000,000, under the Production Sharing Contracts for the period between 2003 and 2015.

    According to them, the huge loss suffered by the Federal Government is due to the failure of the minister of Petroleum Resources for over 15 years to activate the re-adjustment of the sharing formula (the PSC) of 60 per cent share of oil profits to the Federal Government and 40 per cent to the oil companies.

    They argued that the Federal Government had suffered huge losses under the PSC because of non-compliance with Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act which was said to have come to effect since January 1, 1993.

    The plaintiffs faulted Section 8(1)(f) of the Production Sharing Contracts between the Federal Government and the oil companies, which makes provision for the 60 to 40 per cent sharing agreement.

    They stated that, under the Deep Offshore and Inland Basin Production Sharing Contracts (PSC) Act, there ought to be an upward re-adjustment of Federal Government’s share of oil profit “in a manner as to become economically beneficial to the Federal Government” whenever the price of crude oil exceeded $20 per barrel.

    The states argued that the PSC which provides for the current sharing formula between the Federal Government and the oil companies could no longer be valid because the oil prices had since overshot the $20 per barrel.

    When the case came up on November 14, 2017 Abubakar Malami (SAN), listed as the sole defendant, indicated his preparedness to explore an amicable settlement of the suit.

    Following AGF’s request, the apex court adjourned to give room for the parties to negotiate.

    Other parties in the suit were said to have met with the AGF in his office on March 20, 2018, and agreed to settle, and later came up with the agreement filed as terms of settlement on April 6, 2018.

    With the agreement adopted by the court on Wednesday, the Federal Government has agreed to implement prayers (a) – (c) in the suit.

    Prayer (a) is “a declaration that there is a statutory obligation imposed on the defendant (the AGF/FG) pursuant to Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act, Cap D3 Laws of the Federation of Nigeria 2004, to adjust the share of the Government of the Federation in the additional revenue accruing under the Production Sharing Contracts if the price of crude oil at any time exceeds twenty dollars ($20) per barrel in real terms to such extent that the Production Sharing Contracts shall be economically beneficial to the government of the Federation; and a fortiori the component Federating States of the Federal Republic of Nigeria especially the 1st, 2nd and 3rd plaintiffs.”

    With regard to prayer (b), the court declared “that the failure of the defendant to accordingly adjust the share of the Government of the Federation in the additional revenue in the Production Sharing Contracts…” constitutes “a breach of the said Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act” and has affected the total revenues of the Federal Government and the states.

    Prayer (c) is therefore, a consequential order of the apex court, “compelling the defendant to adjust the share of the Government of the Federation in the additional revenue under all the PSC in Nigeria’s oil industry within the Inland Basin and Deep Offshore areas as approved by the defendant from the respective times the price of crude oil exceeded twenty dollars ($20) per barrel in real terms and to calculate in arrears with effect from August 2003 and recover and pay immediately all outstanding statutory allocations due and payable to the plaintiffs arising from the said adjustments.”

    By the agreement, parties agreed as follow:

    “That reliefs (a) (b) and (c) in the Amended Originating Summons relating to the larger interest of the Federal Government of Nigeria and the entire citizenry of the Federal Republic of Nigeria and which therefore shall be diligently implemented.

    “That the Hon. Attorney General of the Federation on behalf of the Defendant working jointly with the Plaintiffs hereby undertake to immediately set up a body and the necessary mechanism for recovery of all lost revenue accruing to the Federation Account arising from, associated with or pertaining to relief (C) above in the past and up till the date of full recovery and accruing in future or an acceptable instalmental payments thereof within ninety (90) days next from the date of execution of these presents or its being made judgment of this Honourable Court.

    “That the solicitors of the plaintiff and or their nominee professional advisers shall be members of that body and necessary recovery mechanism set up by the Honourable Attorney General of the Federation in (b) above.

    “That the cost of the recovery in clause b. iii (b) above shall be netted off and payable from the Gross recovered sums from time to time prior to placement of the net recoveries in the Federation Account.

    “That the 13 per cent (per cent) derivation due to the plaintiffs shall be paid to them upon recovery in accordance with Section 162 of the 1999 Constitution as amended.”

    Bayelsa State Governor Seriake Dickson described the verdict as victory for the littoral states, according to a statement by his Adviser on Media Relations Fidelis Soriwei.

    According to him, even before the first offshore swamp oil well was discovered under the particular Act by the Nigeria AGIP Energy, the price of crude oil had exceeded $20 per barrel being used as a benchmark to share oil revenues in the state.

    He stressed that in spite of the express agreement that shares from the oil revenue accruable to the Federal Government should be adjusted, the benchmark being used by the multinational oil firms has been static at 20 Dollars per Barrel to date.

    The governor, who spoke on behalf of his Rivers and Akwa Ibom states’ colleagues, said that the judgment demonstrated “the primacy of the law in the socio-economic emancipation of the people of the Federal Republic of Nigeria through the instrumentality of the government and people of Bayelsa, Akwa Ibom and Rivers States.”

    Dickson stated further that the implication of the judgment was increase in revenues accruable to the federating states under the extant revenue sharing formula.

    He said: “We commend the Supreme Court of Nigeria for upholding the Rule of law. The courageous intervention of the Supreme Court in this case and other cases is what is needed to bring confidence to the long-suffering people and communities of the Niger Delta and the country at large.

    “This judgment shows clearly that the judiciary is ready and has the courage in deciding cases to uphold the rights of oppressed people.

    “We call on other courts in the judicial system to rise to the occasion in order to give the assurance that oil majors and oil block owners operating in our communities will respect the laws of the land.”