The Nation Newspaper

Tag: Fed Govt

  • Fed Govt eyes $2.8b foreign loan to fund budget

    The Federal Government plans to raise $2.8 billion loan abroad  to fund 2018 budget and explore all options to lower costs, Debt Management Office (DMO) Director-General Patience Oniha has said.

    Government has laid out plans to borrow abroad even though interest rates are rising in the United States which could see Nigeria pay a higher premium on this occasion compared with its most recent debt sale in February.

    According to Reuters, the debt office has sent a request for a proposal to banks for an international bond offering, IFR, it said citing sources. “We will explore all options keeping in mind our twin objectives of extending the tenor of the debt stock and lowering costs,” Oniha said.

    However, the parliament needs to approve the new borrowing. Oniha in January said the DMO could tap capital markets or concessionary loans from the World Bank and would consider funding options after the 2018 budget had been approved.

    President Muhammadu Buhari last week signed a record N9.12 trillion budget for 2018 into law, aimed at fostering growth in Nigeria before elections next February, in which he will seek a second term.

    Growth rates in Nigeria have bounced back since the third quarter of 2016, when a recession, its first in 25 years, hit bottom. It exited that contraction last year, largely due to higher oil prices, with the country relying on crude sales for much of its revenue.

    However, growth slowed in the first quarter of 2018 for the first time since pulling out of recession as its non-oil sector struggled. Nigeria raised $2.5 billion through a dual-tranche Eurobond offering in February, selling a 12-year note at 7.1 per cent to raise $1.25 billion and a 20-year tranche at 7.7 per cent.

     

    The February deal was the second international bond sale in less than three months, after the debt office raised $3 billion through an offering of 10- and 30- year bonds in November.

     

  • How we’ll get power to all Nigerians, by Fed govt

    Power generation and distribution have been decentralised to guarantee uninterrupted supply, Vice-President Yemi Osinbajo has said.

    He said availability of power supply will attract more foreign investment.

    The Vice President spoke at a town hall meeting with youths at the Theophilus Ogunlesi University Teaching Hospital (UCH) Ibadan, Oyo State capital.

    He said he was in Ibadan for the provision of solar power in Gbagi Market as he had done in other parts of the country.

    He said:”One of the reasons I am here in Ibadan is to have off-grid power generation and distribution in Gbagi market.  We want to embark on solar power generation in the entire Gbagi Market and we are going to have that in all the markets across Nigeria.

    “For those of you who are following our activities, you will know that we have done it in Sabon Gari in Kano State and in some markets in the East and in Ondo State too. We are doing this not to rely on the traditional sources of power generation again.

    “We also have something we called Illegible Customer Declaration (ICD) which means that industrial areas and big estates can have their own power without relying on the traditional grid.

    “So there are companies that we are licensing to buy power and sell to their customers. This country is too big to have same power source for the whole country and that is why we are trying to decentralise the sources of power generation.

    “Then, we will be able to supply what is left for residential areas that require power in the country.  We have a systematic approach to solving power generation in the country. We are having the power problems because the privatisation was done badly.”

    During the National Micro, Small and Medium Enterprises (MSMEs) Clinic, Osinbajo said 10,392 graduates from Oyo State had been shortlisted for the second batch of N-Power scheme scheduled to begin next month.

    He said 9,220 volunteers benefited in the first batch of the scheme.

    The Vice President said President Muhammadu Buhari had directed that the GEEP programme be expanded to cater for small scale enterprises.

    “We are feeding 230,000 pupils, we have also employed 2,363 cooks in the state, while 14,529 households are benefiting in the Conditional Cash Transfer.

    “It is the hope of Mr President that we should broaden opportunities and make it available to every Nigerian,” he said.

    Oyo State Governor Abiola Ajimobi said the Federal Government had contributed tremendously towards socio-economic development in the state.

    “Close to 37 million MSMEs in Nigeria represent 80 per cent of Nigerian enterprises and they give out 75 per cent employment in Nigeria.

    “Small businesses create more jobs, expand the economy and ensure prosperity. We commend the unwavering commitment of the Vice President to economic development,” he said.

    The event was attended by Minister of State for Trade and Investment Mrs Aisha Abubakar, Alaafin of Oyo Oba Lamidi Adeyemi, and Olubadan of Ibadan Oba Saliu Adetunji.

  • NEITI to Fed Govt: review production sharing agreements

    •NNPC lost N547b in three years, says report

    THE Nigeria Extractive Industries Transparency Initiative (NEITI) has urged the Federal Government to review its Production Sharing Contracts with oil firms.

    The watchdog organisation, in a statement issued yesterday in Abuja, alerted the nation on the urgent need to review the Deep Offshore and Inland Basin Production Sharing Agreements.

    Its Communications and Advocacy Director, Dr. Orji Ogbonnaya Orji, who issued the statement, said the urgency to review the obsolete legislation without further delay is in view of the revenue losses to the federation by the use of the old agreement in computation of revenues to be shared between the government and oil companies.

    NEITI noted that the Deep Offshore and Inland Basin Production Sharing Contracts Act of 1993 provides for “a review of the terms when prices of oil crosses $20 in real term; and a review of the terms 15 years after operation of the agreement and five years subsequently”.

    The agency, however, observed with concern that Nigeria is yet to adhere to this important provision, even now that the price of oil is revolving around $70 per barrel.

    In an occasional paper, which reviewed three years of NNPC’s financial and operations reports, NEITI noted that crude oil production under the Production Sharing Contracts (PSCs) has since overtaken production under the joint venture arrangements.

    A careful look shows that Production Sharing Contracts (PSCs) accounted for 44.8 per cent of total oil production and the Joint Ventures (JVs) contributed 31.35 per cent.

    A historical analysis of this development by NEITI shows that JV companies accounted for over 97 per cent of production in 1998 and PSCs contributed only 0.50 per cent.

    This trend continued until 2012 when PSCs accounted for 37.58 per cent and JVs contributed 36.91 per cent.

    From the publication in 2013, PSCs contributed 39.22 per cent while JVs contributed 36.65 per cent, 2014: PSCs; 40.10 per cent and JVs 32.10 per cent; 2015: PSCs 41.45 per cent and JVs 31.99 per cent and in 2017, the contributions stood at PSCs 44.32 per cent and 30.85 per cent.

    The NEITI occasional paper further explained: “Other companies, comprising Nigerian Petroleum Development Company (NPDC), Alternative Financing (AF) and Independent/ Marginal Fields contributed 2.39 per cent to total production in 1998 and by 2017, this had risen to 24.83 per cent. This figure clearly shows the changing structure of oil production in Nigeria, where PSCs (which contributed a mere 0.5 per cent to total production 20 years ago have dramatically overtaken JVs, which contributed 97 per cent to total production 20 years ago.”

    Between 2015 and 2017 covered by NEITI’s Occasional Paper review, Nigeria produced 2.126 billion barrels of crude oil and condensate.

    The review added:  “Production was highest in 2015 with 775.6 million barrels produced. Production was lowest in 2016 with 661.1million barrels produced, while production in 2017 was 690 million barrels. 2016 was a difficult year for oil production because production was shut in a number of oil terminals.”

    NEITI’s major concern is that now that the PSCs account for about 50 per cent of total oil production and major source of revenues, the delay or failure to review and renew the agreement means that payment of royalty on oil production under PSCs would not be made and computation of taxes would be based on the old rates.

    One striking feature of the NNPC financial operations report is the disclosure that the corporation lost the sum of N547 billion in its operation between 2015 and 2017. Out of this amount, the NNPC Corporate Headquarters recorded the highest revenue loss of N336.268 billion.

    On the contrary, the report revealed that the Nigeria Gas Company made a huge profit of N141.324 billion.

    While NEITI applauds the monthly voluntary disclosures by the NNPC, it is important to note that NEITI through its auditors under the EITI framework has not independently verified the information and data from the NNPC reports.

    The NEITI Occasional Paper series, which reviewed the three years of NNPC operations and financial reports, is the third in the series.

     

     

  • Fed Govt ready to tackle ISIS threat, says minister

    The Federal Government restated yesterday that it had taken seriously the report that terrorist group Islamic State was sending insurgents trained in Syria to Nigeria in a terror exchange programme.

    Minister of Interior Abdulrahman Dambazau said in Abuja that the government would not rest on its oars in securing the country in all situations.

    Dambazau spoke at the presentation of curriculum and training manuals for the Nigeria Immigration Service, (NIS) training institutions.

    The minister said: “When information like this (influx of ISIS members into the country) comes, we do not take things for granted, even if it is not true, because it is security information.

    “Before now, we were prepared to ensure that everything we needed to do security-wisewas done and such information also raises the alarm, we will double our efforts towards that.”

    Also the Nigeria Customs Service (NCS) has directed its Area Comptrollers to intensify the screening process of passengers and luggage.

    A memorandum from the Assistant Comptroller General, Tariff and Trade, Ekekezie K.C, titled “Re: Islamic State of Iraq and Syria threat to attack commercial flights,” read: “I am directed to inform you that in view of the security threat alert presented in the letter, you are to intensify the screening process of alert all passengers and luggages including other measures you may deem fit to forestall potential security breach as directed.”

    Speaking while unveiling the training manuals, Dambazau stressed the importance of training to the security services, noting that henceforth, promotion of personnel and career progression will be tied to trainings and courses attended by the officers.

    He said: “If you travel a lot, you will see what happens in other countries. They solely focus on training and they will be sent on courses to determine your career progression.”

  • Fed Govt to boost milk production

    The Federal Government will begin artificial insemination of cattle at its different research institutes and centres to aid multiplication of cows and increase milk production.

    Minister of Agriculture and Rural Development Audu Ogbeh addressed youths at a “Leadership Clinic” organised by the Guardians of the Nation International (GOTNI) in Abuja.

    Ogbeh said the move will kick-start a programme known as “Milk River Project” which the government was planning to launch soon.

    According to him, the insemination would require the importation of semen from countries like Europe and Brazil, to inject into local cows to be able to produce many calves.

    He said: “A new project is coming, it is known as the Milk River Project. We will start doing multiplications of cows now at different centres. We bring the semen from Europe, Brazil, sort them out according to gender, inseminate the local cows, and it produces calves and at six months, we wean them, sell them at a cheaper rate to youths.

    “They put them at the back of their houses, just ten of them and you don’t need a job for your life.

    “You keep the cows, collect about 25 litres of milk every morning, sell it to a mini processor nearby and earn a lot of money daily.”

    Ogbeh, who advised the youths to get involved in agriculture, said the country had received a request from Malaysia to supply about two million tonnes of soybeans.

    He lamented the high interest rates in the country, saying the Federal Government was working to restructure the Bank of Agriculture (BoA) to reduce the interest rates to a single digit.

    “The youths are in the majority in this country, the old ones will go and you will replace them but it will be very dangerous to replace them without knowing why the failures of the past continue to happen.

    “High interest rates have been the tragedy of Nigeria in the last 35 years. The world is permanently at war, economic war is the most dangerous war a country can experience and to free ourselves, we have to do what India and China have done, intensify local production, create wealth for young people,” he added.

  • NAFDAC urges Fed Govt to establish herbal medicine institute

    THE National Agency for Food and Drug Administration and Control (NAFDAC) has urged the Federal Government to establish a national institute for the promotion of herbal medicine.

    Its Director-General, Prof Moji Adeyeye, made the call in an interview with a correspondent of the News Agency of Nigeria (NAN) in Abuja.

    He explained that traditional medicine was too important to be ignored in the healing process and promotion of healthy living.

    She said several meetings had been held with stakeholders on how to promote herbal medicine in the country.

    “Government should support the idea to establish a National Institute of Science that will conduct researches for the benefit of humanity.

    “The approved herbal products do undergo limited testing due to inadequate resources and we need to add more tests on what we have been doing.

    “We have been working seriously to promote herbal products, there may be a conference by the end of the year on herbal medicine.

    “I personally went into a research on herbal medicine because of the experience I had on my niece, where herbal medicine did wonder by curing her ailment beyond one’s imagination” she said.

    He stated that some developed countries had really keyed into making judicious use of herbal products.

    According to her, 75 per cent of drugs used in China are traditional herbal medicines.

    Adeyeye, a Professor of Pharmacology, said Nigeria had lost so much by not using herbal medicines.

     

     

  • Falana to Fed Govt, INEC: prevent vote-buying in Ekiti and Osun polls

    Lagos lawyer Mr. Femi Falana has urged the Federal Government to enforce the electoral law which criminalises vote-buying in the forthcoming governorship elections in Ekiti and Osun states.

    He said this would ensure the credibility of the elections.

    Falana made the plea in his keynote address at the national electoral stakeholders’ summit organised by Transition Monitoring Group (TMG) with support from the United Kingdom’s Department of International Development in Lagos.

    The frontline lawyer listed various impediments to credible elections, including vote-buying, bribery and conspiracy, noted that there had been no political will to criminalise the offence in Nigeria.

    He regretted that in the last few years, vote-buying and bribery during elections had been mind-blogging.

    Falana said: “In the last three or four elections, between 2015 and now, we have witnessed this disturbing phenomenon of vote-buying on the day of election. It is so embarrassing for us as a people because some of these elections are not monitored by our people alone but all over world. The foreigners will go back home and say that corruption has been institutionalised in Nigeria; that on the day of elections, voters are paid before casting their votes.”

    The lawyer said Nigeria was becoming a laughing stock among the comity of nations due to vote-buying during elections.

    He urged Independent National Electoral Commission (INEC) to use the forthcoming Ekiti and Osun governorship elections to implement the law against vote-buying.

    According to him, cases of vote-buying and other electoral offences are often discontinued by attorneys-general in some states.

    Falana said this had been a drawback on the nation’s desire to ensure credible polls.

    The lawyer called for an independent electoral offence panel, as stipulated in the Justice Muhammadu Lawal Uwais Penal Report, to deal with electoral offences in Nigeria.

    He said: “Many of the electoral offences committed during elections are often times quietly withdrawn by some attorneys-general in some states on the ground that the state is not willing to prosecute.”

    On the premise that many Nigerians were hungry and open to bribery on the day of elections, Falana challenged INEC, political parties and the National Orientation Agency (NOA) to begin enlightenment campaigns that would help Nigerians to demand answers to their problems from politicians.

    He said: “Nigerians across the country must get politicians to be accountable. Those we have elected, we must make them to account and justify why we should renew their mandate. Unless we do that we are not going to get out of criminality. Yes, people are hunger but it is never a justification for them to demand for money before voting.”

    TMG’s Chairperson Dr. Abiola Akiyode-Afolabi said the event was meant to create awareness and provide an opportunity for the public and stakeholders to bare their minds on grey areas in the electoral system that should be revisited to ensure a smooth transition from one democratically elected government to another.

    She called for collaboration between the media and civil society groups, as co-actors in the political space, to strengthen the process and the performances of INEC to ensure free, fair and credible elections in 2019.

     

  • Fed Govt accuses private school owners of frustrating personnel audit

    The Federal Government has accused private school owners of frustrating its nationwide personnel audit.

    The government said some private school owners attacked their enumerators and also refused to present their teachers and pupils for the audit exercise in their schools.

    Executive Secretary, Universal Basic Education Commission (UBEC), Dr Hamid Babboyi, stated these in Abuja when he led  management team and the Chairman Governing Board of the Commission, Dr Mohammad Abubakar, to monitor the exercise in some schools in the Federal Capital Territory, Abuja, on Tuesday.

    He stated that reports by its field enumerators showed that some private school teachers in the FCT had refused to turn up for enumeration, and in some cases threatened the UBEC officials with arrest and lock out.

    Dr. Bobboyi, assured that the ongoing nationwide personnel audit of primary and junior secondary school was aimed at generating reliable data for the repositioning of basic education in Nigeria,

    He denied claims that the audit exercise was for taxation purpose.

    “We are very happy with the progress that has been made. We have to understand that this is the first time in the history of the personnel audit where private schools have been included in the entire process.

    “Initially, in the last two decades it has always been for the public schools. But we felt that without getting data from the private sector and putting all these together to see the kind of education our children are receiving; the number of schools, understand the teachers, and enrollment, we cannot get it right.

    “Generally, we need this information and I think it is something we should be very happy about including the private schools in the exercise,” he said.

    The UBEC boss said data from the personnel audit would allow the federal government plan for the basic education sector which was facing severe challenges.

    The Chairman of the Board, Dr Abubakar, in his remark said the exercise was a huge success in public schools but met resistance in some of the private schools its officials visited.

  • Fed Govt okays N37b cash for prepaid meters

    The Federal Government has taken advantage of the new Meter Asset Provider (MAP) regulations to give a grant of N37 billion to a private sector operator to supply meters to interested Distribution Companies (DisCos).

    Power, Works and Housing Minister Babatunde Fashola, who spoke at the 28th monthly meeting of power stakeholders in Kaduna, said the Federal Government provided the fund based on the demand for meters, given the increasing power generation, transmission and distribution in the country.

    He noted that  estimated billings fuelled conflicts among electricity consumers and the DisCos, adding that the easiest way to restore confidence in the sector is meters provision for customers.

    Fashola said as power continued to increase in generation, transmission and distribution, the demand for meters will increase because more power supply and consumption will likely result in increased  bills.

    He said: “As power supply continues to increase in generation, transmission and distribution, the demand for meters will increase because more power supply and consumption will likely result in increased bills.

    “Estimated billings in these circumstances will become a major cause of distrust and conflict between consumers and DisCos, and meters are the easiest way to build the bridge of trust.

    “On the executive side of government, we are responding by taking advantage of the  MAP regulations to deploy a fund of N37 billion toward supplying meters through private sector.

    “I urge all DisCos who have not taken advantage of this opportunity to quickly do so, or make their own funding arrangements to contract their own meter providers to supply and install meters.

    “I know that Yola DisCo is talking to the meter asset provider for 400, 000 meters. I know that Abuja DisCo is also indicating interest for 250,000 meters.

    “I know that other meter asset providers are also talking to various banks and funding organisations to see how they can get into this business and get licensed by NERC.”

  • Fed Govt opens Mokwa-Jebba road to traffic

    The Director of Highway Bridges and Design in the Federal Ministry of Power, Works and Housing, Mr Sogbesan Adetokunbo, has said the diversion that followed the collapse of a culvert on Mokwa-Jebba road had been completed.

    Adetokumbo told the News Agency of Nigeria (NAN) yesterday in Abuja that the road had been opened to traffic, adding that vehicular movement on it had been restored.

    The director said the diversion was a palliative measure, adding that a permanent solution to the problem was being worked out by the Federal Government.

    According to him, the contractor and the Federal Controller of Works in Niger State are working out an estimate of a permanent solution to the problem.

    Sogbesan said: “As I speak to you, vehicles are going through the road. The contractor and the Federal Controller of Works in Niger State are presently working on the estimate of a permanent solution.”

    The director said the estimate would be determined by the hydrological design either by two or three cell box culverts.

    He said the incident was a collapse of a single cell – one metre by 1.5 metre box culvert – and not a bridge, as reported by some sections of the media.

    Adetokunbo said there had been a threat of the collapse by storm water before the Sunday morning rainfall that eroded the embankment and caused the collapse of the box culvert.

    The director blamed the collapse of bridges and culverts in the country to increase in storm water resulting from massive construction of houses.

    He said: “When there are no buildings, some of the rainwater goes into the soil. But now that there are roofs, almost 90 per cent of rainwater finds its way into culverts and bridges.”

    NAN recalls that the box culvert collapsed on Sunday morning after heavy rains resulting to heavy traffic on Mokwa-Jebba road.