The Nation Newspaper

Tag: Fed Govt

  • Firm lauds Fed Govt’s backward integration

    Firm lauds Fed Govt’s backward integration

    Euro Global Foods and Distilleries Limited, Ota, Ogun-State, has thrown its weight behind the Federal Government’s backward integration policy, saying that the policy has once again proved the thinking of the government right.

    The firm, a multinational, attributed the high demand of its products and subsequent posting of good profit to the policy.

    Its Managing Director, Mr. Manish Uniyal, said after seven years of operation, it has achieved 85 per cent local content in raw material sourcing.

    He commended the government’s policy of patronage of alternative local materials, noting that it is almost immuned to the challenges faced by other companies in the country as a result Foreign Exchange (forex) challenges.

    Uniyal said: “As a proud member of Sona Group of Companies that comprise about a dozen leading companies providing pioneering and cutting-edge products, we have no choice but to key into the government’s policy of exploiting alternative local raw materials.”

    He said some of their products have won international awards of quality and standards as a result of their high compliance to regulatory requirements.

    Uniyal said the company has over 20 world-class products, such as Aqua Euro premium table water, produced for healthy living as well as convenience and prestige. Others are power bitters, Sabrina –dry gin, Blue Lagoon, Czar Vodka, Schnapps, Savanah and several brands of biscuits.

    He said the company offers each segment the product that suits it at competitive price despite the  economic situation. He also said the company beats competition by using strategic economic and management plans to drive its production and marketing processes.

    Uniyal reiterated his confidence in the economy, pledging the company’s commitment to grow and automate its production processes.

    He expressed confidence that the company’s products will be available across the 36 states within the next two years.

    According to him, the company maintains a high degree of industry standards and strict adherence to regulatory requirements from Standards Organisation of Nigeria (SON) and National Agency for Food, Drug Administration and Control (NAFDAC).

  • DMO to Nigerians: invest in Fed Govt’s savings bond

    DMO to Nigerians: invest in Fed Govt’s savings bond

    The Director-General, Debt Management Office (DMO) Abraham Nwankwo yesterday in Kano stated that the newly introduced Federal Government of Nigeria Savings Bond is designed to empower Nigerians across board with the financial capacity to acquire and live better lives.

    Nwankwo who spoke to representatives of business groups and trade unions during a workshop to sensitise people on the programme, said statistics have shown that Nigeria is witnessing economic growth, but regretted that the growth,  “does not truly reflect in the quality of lives of majority of Nigerian citizens.

    “This prompted the Federal Government to introduce the FGN Savings Bond, which could be afforded by barbers, water vendors, beans cake sellers and petty trader.” He added that before now, the existing FGN Bond is  of benefits to solely  cooperate institutions and wealthy individuals.

    He said it was against this backdrop that the Federal Government came up with its avings bond aimed at achieving  an all inclusive economic growth.

    “The savings bond is targeted at low income earners, artisan, and rural dwellers, with the view that they lend money to the Federal Government from which the government can resort to the provision of infrastructural development and address various public demands with resorting to borrowing,” he added.

    He said the bond was designed in a manner wherein rural communities could key into it, without going through the rigours.

    He pointed out that the savings bond will be traded on the floor of the Nigeria Stock Exchange (NSE).

    On the differences between the newly introduced savings bond and ponzi schemes, he said people’s investment are secured, pointing out that the bond is secured by the Federal Government.

     

    He added that the saving bond cannot default owing to the guaranty that it is backed by the Federal Government.

    He dismissed the perception in certain quarters,  that the Federal Government introduced the bond to bully other  players in the sector, adding that the aim of the government is to enable Nigerians to plan and execute  their  intended future projects by investing in the bond to accumulate whatever amount they require to carry their spelt out project.

  • Reduced piracy in Onne: Investors praise Fed Govt, OGFZA

    Investors have commended the Federal Government and the leadership of the Oil and Gas Free Zones Authority (OGFZA) on the decline in pirate attacks around the Onne Oil and Gas Free Zones.

    They said the huge scale back in the incidence of piracy followed representations to the federal authorities by OGFZA on security concerns in the area.

    In February, the Managing Director of OGFZA, Umana Okon Umana,   had written  to the National Security Adviser, Maj.-Gen.Babagana Monguno (rtd), to draw attention to deteriorating security around the seaport, marked by increase in the incidence of piracy and its consequential impact on investments in the area, particularly in the oil and gas free zones.

    The initiative by Umana led to a security meeting with the Flag Officer Commanding (FOC) Eastern Naval Command, Rear Admiral James Oluwole, and a subsequent deployment of several warships and patrol boats to secure the region and provide safe passage for commercial shipping.

    The better protection for shipping in the region’s waterways has helped to significantly bring down the rate of pirate attacks on shipping, as well as sabotage of oil and gas facilities in the area, Oluwole said at an interaction with the management of OGFZA.

    Also, the Terminal Operator of Indorama/Eleme Petrochemicals Limited at Onne Free Zone, Manjunath Gowdara said: “Security has improved since the Umana administration came into office. For about three months now, there’s zero incidence of attacks both on land and at sea.”

    Port security report states that Indorama security alert level has been lowered from level two to level one in the wake of the significant improvement in security around the free zone.

    The Operations Manager of Brawal Oil Services Limited, Michael Agha and the Commercial Manager of the company, Ifeanyi Odili-Nwamana, made similar remarks, stating that the new management of OGFZA, has helped to improve security in the zone.

    “There has been improved security and reduced militancy in the port,” Agha said, adding that the management of Brawal is pleased with OGFZA chief for his efforts at addressing security challenges in the port,, especially the issue of abandoned vessels at the quayside.

    Both managers said Brawal has complemented the efforts of government by putting many measures in place to improve security in the free zone.

    The General Officer Commanding (GOC) 6 Division of the Nigerian Army, Maj.-General Enobong Udoh,  also assured Umana  of adequate security when the OGFZA chief visited the GOC  in his office at Bori Camp in Port Harcourt.

    “We have made specific security arrangements to protect lives and property, as well as oil and gas assets in the region. I want to assure you that the 6 Division of the Nigerian Army will always support OGFZA,” Gen. Udoh said, adding that the 6 Division was established and headquartered in Port Harcourt to regularise and perfect all the previous ad hoc security arrangements set up to address security challenges in the Niger Delta.

  • Dons to Fed Govt: reduce oil losses

    Nigeria will not only  lose its top oil producing position on thec ontinent to Angola but will also find it difficult to meet its budgetary expenditure if the militant attacks which led to the shut-downs of its oil facilities continue, experts have said.

    They are Dr Adedayo Ayoade, Senior Lecturer, Energy Law, University of Lagos and Prof Adeola Akinnisju, an energy economist at the University of Ibadan.

    According to them, Angola has maintained a daily crude oil production of 1.672 million barrels per day (bpd), while Nigeria’s figure fell by 156,900 barrels per day to 1.269million bpd in March, from 1.426mbpd recorded last February.  Consequently, the country lost its status as Africa’s top oil producer to Angola, according to the Organisation of Petroleum Exporting Countries (OPEC).

    Ayoade said the loss of Africa’s number one spot to Angola by the country is not the problem, but that its ability to generate enough revenue for improved economic activities.

    He said the country has lost N83billion as reported by the media, adding that the economy would be in jeopardy if the trend continued. He said the Federal Government was finding it difficult to meet its budget proposal, due to fall in the international prices of crude oil, arguing the country would experience a dip in revenue in the event that the fall in oil output persists.

    Ayoade said: “The price of oil picked at $57 per barrel. When that happened, Nigerians were elated as well as believing that problems such as low revenue and its attendant impact on the economy would end soon. We should forget the loss of top position to Angola and focus on how to boost production to generate more revenues and further meet our fiscal needs.’’

    He said the loss in Africa’s top spot to Angola was a wakeup call for the industry to redouble its efforts, through production of crude oil, urging the Federal Government to provide a more conducive environment to enable operators to produce more oil and drill new wells.

    This, he said, the indigenous oil exploration and production companies and the International Oil Companies (IOCs) could only play well when the disruptions caused by militants in the region is minimised.

    Also, Akinnisiju said the reduction in crude oil production would lead to a corresponding decrease in revenue accruable to the Federal Government and by extension the external reserves.

    He urged oil firms to increase production to bring the much- needed growth to themselves and the country.

  • Fed Govt, states, local govts share N467.8b

    Fed Govt, states, local govts share N467.8b

    The Federation Accounts Allocation Committee (FAAC) yesterday shared N467.807 billion among the three tiers of government for last month.

    According to the Accountant-General of the Federation (AGF), Ahmed Idris, the gross statutory revenue of N331.583 billion received for the month was higher than last month’s N290.163 billiion by N41.420 billion.

    He noted that despite the increase in the average unit price of crude oil per barrel from $44.74 to $52.86, the revenue from Federation Export sales dropped by $6.6 million.

    Addressing a news conference after the meeting in Abuja, Idris attributed the decline to crude oil export volume.

    “Production suffered during the period due largely to leakages in the pipelines arising from sabotage, shut down of terminals for turnaround maintenance and the Force Majure declared at Forcados and Brass Terminals that were still in place.

    “There was, however, a noteworthy increase in revenue from oil royalty. Also, significant increases were recorded from companies’ income tax, import and excise duties and Value Added Tax.”

    The Accountant-General noted that the distributable statutory revenue for the month was N299.930 billion.

    Idris added that N6.330 billion was refunded by the Nigeria National Petroleum Corporation to the Federal Government.

    The AGF said: “There is a proposed distribution of N22.259billion from Excess Petroleum Profit Tax account. Also, exchange gain of N66.967 billion is proposed for distribution. The total distributable for the current month including VAT is N467.807 billion.”

    The Federal Government received a share of N189.243 billion, states got N127.994 billion and 774 local government areas received N96.000 billion.

    The chairman, Commissioners of Finance Forum, and Commissioner of Finance from Adamawa State, Yinusa Mahmud, said the revenue in the month under review increased by N38 billion.

    “The price of oil is promising and that the federal government is doing much to sustain peace in the Niger Delta,” Mahmud said

  • Fed Govt links Suswam with militant groups in Benue

    Fed Govt links Suswam with militant groups in Benue

    •Court urged to ignore ex-governor’s request for freedom

    THE Federal Government has accused former Benue State Governor Gabriel Suswam of having links with some militant groups in the state.

    It claimed to have information linking Suswam with the militant group that recently attacked Zaki Biam.

    The government claimed possession of a security report from Benue State government, which said the state will become ungovernable should Suswam be released from incarceration.

    The government made these claims in a counter affidavit filed by the Department of State Services (DSS) against a fundamental rights enforcement suit at the Federal High Court in Abuja.

    Suswam, who is being detained by the DSS, is challenging his continued detention without trial.

    The counter-affidavit, which was served on Suswam’s lawyer early yesterday, stalled proceedings.

    Suswam’s lawyer Adedayo Adedeji informed the court that he had served the DSS with his application since April 19, but that DSS only served him with its counter-affidavit yesterday morning.

    Adedeji said: “However, this morning at about 9.45am in the court, I was served with counter-affidavit and a written address in opposition to the motion.”

    He said he would reply to the counter-affidavit and seek a date.

    Adedeji’s attempt to move an ex-parte motion earlier filed, seeking to compel the 1st respondent to unconditionally release Suswam, was refused by the judge, who noted that it was no longer necessary as the respondents have joined issues with the applicant.

    In the main suit, Suswam is seeking a N10 billion compensation for unlawful incarceration and violation of his rights. He also wants to be released unconditionally.

    He urged the court to direct the respondents to tender public apology to him in seven national newspapers for the “illegal arrest and detention”.

    Suswam also asked for an order of perpetual injunction restraining the respondents, particularly the DSS, from torturing him and if proved that he had been tortured, the court should “nullify any statements, documents or other materials that may have been extracted or obtained” from him under “such unwholesome and constitutionally prohibited circumstances”.

     

     

  • Fed Govt to re-fleet NCAT with 20 trainers’ aircraft

    THE Federal Government has begun phasing out obsolete aircraft at the Nigerian College of Aviation Technology (NCAT), Zaria, as the college took delivery of DA42NG Trainer Aircraft yesterday.
    The DA42NG Trainer Aircraft is built by Diamond Aircraft Industries of Austria and is the first to be delivered from the 20 required by the college.
    Speaking on the occasion in Zaria, Minister of State (Aviation), Senator Hadi Sirika, said: “The Federal Government is in full support of the re-fleeting of trainer aircraft at the NCAT, Zaria.
    “The acquisition of the new aircraft was a commendable initiative by the institution as well as the re-fleeting of its old aircraft used for its training.”
    He said the Federal Government was committed to the nation’s aviation masterplan.
    Rector and Chief Executive of NCAT Capt. Abdulsalami Mohammed said: “Honourable minister, as you already know, there are currently 29 trainer aircraft in the college. These aircraft used for training – TB 9, Trinidad TB 20 GT and Beech Baron 58 – are old, the earliest being purchased 15 years and quite expensive to fuel and maintain.
    “In the light of this, the college initiated moves at re-fleeting its trainer aircraft. It is thrilling for us that we are gathered today to witness the culmination of that initiative.”

  • NUPENG to Fed Govt: create agency to protect pipelines

    NUPENG to Fed Govt: create agency to protect pipelines

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has appealed to the Federal Government to create a Pipeline Protection Agency (PPA) that will be saddled with the protection of pipelines.

    Its President, Comrade Igwe Achese, gave the advice in Lagos, saying the agency should be well funded and equipped with modern gadgets like alarms, sensors and helicopters and gunships with night vision.

    Commending the Nigeria National Petroleum Corporation (NNPC) for re-opening Mosimi Depot, NUPENG said the development would make distribution of petroleum products to the South- west easy and reduce the pressure on petroleum tankers that throng the Lagos axis to load.

    He urged the NNPC to also re-open the  System B line so that petroleum products could be dispensed through that line.

    According to him, the NNPC should go further to reactivate and re-open other moribund depots in  the county.

    Achese lauded the corporation’s management under Dr. Maikanti Baru for the increase in refining capacity of the four refineries by 29 per cent.

    He added that the new model of each refinery purchasing crude oil at export parity price, processing and selling the products on its own account was in order.

  • Fed Govt approves 48hr for import, export trade deals timeline

    Fed Govt approves 48hr for import, export trade deals timeline

    The Federal Government has approved the reduction of documentation requirements and timeline for import and export trade transactions to 48 hours.

    A circular to authorised dealers, signed by the Central Bank of Nigeria (CBN) Director, Trade and Exchange Department, W.D. Gotring explained that the revised documentation requirements and timeline for processing Form ‘NXP’ include the Revised Import Documentation: Bill of lading, Certificate of Origin (formerly Combined Certificate of Value of Origin), Commercial Invoice and Exit Note (formerly Exit Gate).

    Other documentations are Form ‘M’, Packing List, Single Goods Declaration and Product Certificate. Other revised export documentation include Bill of Lading, Certificate of Origin, Commercial Invoice, Single Goods Declaration, Nigerian Export Proceeds (NXP) Form, Clean Certificate of Inspection (CCI).

    The CBN said the timeline for processing Form ‘NXP’ by the authorised dealers shall be a maximum of 48 hours from the receipt of the application subject to appropriate documentation.

    “Authorised dealers shall submit returns to the CBN on compliance with the 48 hours timeline. All authorised dealers are therefore advised to note and bring the provisions of the circular to the attention of their customers,” the circular explained.

  • Fed Govt, DISCOS clash over revenue accounts

    Electricity distribution companies (DISCOS) are kicking against the Federal Government’s plan to centralise their revenue accounts.
    The decision is being taken by the Federal Government because of the DISCOS’ poor monthly remittances.
    In a statement yesterday, the Association of Nigerian Electricity Distributors (ANED) said such a move amounts to the nationalisation of the DISCOS, which were franchised when the Federal Government unbundled the Power Holding Company of Nigeria (PHCN) Plc.
    The association recalled that the Nigerian Bulk Electricity Trading Plc (NBET) repeatedly published that the DISCOS remitted only 30 per cent of their monthly energy invoices in 2016.
    The Market Operator (MO), an arm of the Transmission Company of Nigeria (TCN), Mr. Moshood Saleeman, the Executive Managing Director, had in October last year, at a market participants’ workshop in Abuja, said if the poor collection continued, the DISCOS’ revenue accounts may be escrowed.
    But ANED’s Director of Research and Advocacy, Mr. Sunday Oduntan, who signed the statement, warned: “Any attempt to centralise or escrow the DISCOS’ revenue accounts would be tantamount to nationalisation or appropriation of the DisCos.”
    Oduntan said such action will negate the objectives of the National Electricity Power Policy, 2001 (NEPP) and the Electric Power Sector Reform Act, 2005 (EPSRA), of a private sector-owned and managed electricity sector.
    The statement reads: “It would also send very wrong signals to domestic and international investors that Nigeria is not fully open for private sector investment and that we are still partial to the old habits of nationalisation, preventing the injection of the cheap and sorely needed capital injection that is critical to the rehabilitation and improvement of electricity infrastructure.”
    Oduntan said it will be improper to have a, supposedly, private sector-owned and managed business having the government as the manager of its revenues.
    ANED advised the Federal Government to avoid any consideration of regulations or action that intrudes into corporate responsibilities of procurement, financial management or personnel management.
    “Relative to procurement, we are not aware that Nigerian Communications Commission (NCC) issues regulations to guide the internal procurements of the telecommunication companies; Central Bank of Nigeria (CBN), that of the banks; or the Department of Petroleum Resources (DPR), that of the oil companies”, the association said.
    The power investors also said they learnt that the government was planning to call for the declaration of eligible customers for the electricity market.
    Kicking against the move, Oduntan said that the minister can make such declaration only “when a competitive market exists in the Nigerian Electricity Supply Industry (NESI).”
    ANED said such competitive market, driven by efficiency, presence and utilisation of industry contracts does not exist now. It said the minister under Section 27 of the EPSRA 2005, has authority to determine “end-use customers’ who then constitutes eligible customers.
    The investors, however, said Section 28 of the Act requires that the DISCOS must be compensated for any reduction in their ability to “earn permitted rates of return on their assets” or any inadequacy in their revenues, as a result of such determination.
    They warned: “What this means is that, consumers will have to suffer an increase in their electricity tariff, to accommodate this premature declaration of eligible customers.”