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Tag: Federal Govt

Federal Govt tackles unemployment with N10b ‘YES’ project

THROUGH the Bank of Industry (BoI), the Federal Government has taken a bold step to tackle unemployment. It launched a N10 billion Youths Entrepreneurship Support (YES) project to empower youths with revolving loans to start businesses.

Speaking at the launch the launch at Transcorp Hilton in Abuja, Industry, Trade and Investment Minister Okechukwu Enelamah said his ministry would partner all government agencies to create job opportunities.

According to the minister, more than 40 per cent of graduates are jobless and an average of eight million Nigerians join the unemployment market yearly.

Enelamah explained that the ‘YES’ project of BoI was part of the Federal Government’s youth employment scheme, saying that about 36,000 jobs would be created annually through ‘YES’.

He appealed to prospective beneficiaries to repay the loans for the success and sustenance of the project.

BoI’s Managing Director Waheed Olagunju said that a participant under the scheme could access up to N10 million loan with single digit interest rate and repayable over three to five years.

He said that an applicant must present the National Youth Service Corps (NYSC) or higher education certificate as collateral to qualify for the loan with two external guarantors.

Mr. Olagunju said his bank was partnering 11 consultants across the country for the project’s pilot phase.

A special assistant to the Vice President on Youth Development, Mr. Afolabi Imokhuede, said job creation was at the heart of the President Muhammadu Buhari-led administration, adding that the government has a plan to create 3.5 million jobs in the next three years.

Imokhuede, who identified the ‘YES’ project as one of the programmes urged participants to take the ‘YES’ seriously as online courses were now popular means of job creation worldwide.

Kaduna State Governor, Mallam Nasir El-Rufai said his government has concluded plans to partner with BoI on job creation.

The governor said the state had been able to take controlling shares in Peugeot Automobile Nigeria (PAN) with the bank’s assistance.

March 18, 2016
Federal Govt breaks NNPC into four units

•To end fuel import after 18 months

The Nigerian National Petroleum Corporation (NNPC) has been unbundled into four units in a major restructuring of the 39-year-old oil giant.

Minister of State for Petroleum Resources Dr. Ibe Kachikwu yesterday announced the new structure at a briefing in Abuja.

The minister, who is also the Group Managing Director of the organisation, said President Muhammadu Buhari approved the restructuring.

He said: “The new NNPC comprises a lean headquarters and four autonomous business units.”

He told reporters that the restructuring will not lead to job losses.

The four units are: Upstream Company, Downstream Company, Refinery Company and Gas/ Power Company.

According to him, the Upstream Company will now comprise of NPDC and the IDSL. The Downstream Company consists of Retail, NPMC and NPSC, the Refinery Company consists of WRPC, KRPC and PHRC while the Gas and Power is now made up of NGPTC, NGMC and Gas and Power Investment.

Kachikwu said the Federal Government has approved the appointment of Chief Executives for the companies: They are: Bello Rabiu as CEO of the Upstream Company; Henry Iken Obih for Downstream; Anibor Kragha for Refineries and Saidu Mohammed for Gas and Power.

He denied announcing the unbundling of the corporation into 30 companies, saying the GMD is still the Chief Executive of NNPC.

He said what was ignored in his statement about the new structure of the NNPC is that there will be “subsets. Subset is the unbundling. It is not a direct unbundling of NNPC into 30. It means that the subsets of NNPC are being unbundled into smaller numbers of companies. It is totally a different thing and the press got it wrong, please.”

The minister attributed the cause of fuel scarcity to the independent marketers that have refused to import petroleum products that now resulted in NNPC embarking on 100 per importation and supply instead of 50 per cent.

He expressed hope that within one year, the NNPC would overcome fuel constraints and exit importation of products.

The minister said the Port Harcourt Refinery is back on stream, working at “minimal terms.”

He said the corporation has now embarked on supplying one cargo of products daily. Three refineries, he said, are configured now to produce 50% of PMS and 50% of other products.

“The hope is that at the end of the month, the three refineries would have got crude and begin to work. Hopefully, that will soften the pressure,” he added.

The minister explained that even if the refineries are producing at 100 per cent installed capacity there will still be supply gap, stressing that this situation can only be ameliorated when there is completion of Greenfield refineries and modular ones that could be coupled for production.

He said the refineries are operational, they will increase products to a level that Nigeria will commence building a reserve of refined products.

According to him, with the efforts being made to build modular and greenfield refineries Nigeria is targeting fuel export by 2020 when Dangote Refinery becomes operational.

The minister said “when the refineries begin to work, we will see how we can save up and continue our importation process and save up strategic reserves so that in the month of difficulties you can reach out to those before you get your next set of import.

“We are working feverishly trying to see with the Joint Venture Partners how we can come with refineries. We have advertised recently for the collocated refineries.”

On whether government has removed fuel subsidy, he said there is no removal of subsidy but price modulation.

He noted that the government is now saving from the price modulation and it could use the savings to stabilise the market when it is necessary.

According to him, the government will further review the prices of petrol by April, which may lower the cost of fuel.

He said he will always support a reduction of supply by members of the Organisation of Petroleum Exporting Countries (OPEC) in order to increase the price of crude.

The minister said prior to the blast of the Forcados pipeline, Nigeria was producing 2.3million barrels per day

March 9, 2016
Federal Govt backs safety training centre

The Falck Prime Atlantic Training Centre in Ipara, Remo, Ogun State has received the Federal Government’s support for in-country training of public servants. The Minister of Interior, Lt-Gen. Abdulrahman Dambazau, gave the assurance during a visit to the centre. EMEKA UGWUANYI was there.

Falck Prime Atlantic Training Centre in Ipara, Remo, Ogun State isbthe nation’s flagship safety training centre for the oil and gas and allied industries.

The centre, established a few years ago, has facilities and equipment of international standards, the management has said.

Its Managing Director, Mr. Ayo Otuyalo told The Nation that his goal was to make the centre Africa’s number one oil and gas industry health and safety training centre.

He said: “Our objective here is to showcase what we have in-country, he will be surprised at the competence and capability that we can provide in-country, all the facilities we have here are world class, and it matches any training centre anywhere in the world. What we want to do is that you can take advantage of what we have on ground and see how we can provide services to those who require the training in Nigeria.

“Ours is strictly safety training which encompasses various types of fire-fighting, helicopter manning officers, which visit those who work offshore, and helicopters that come to land on platforms. We do confine space training. We train with latest fire-fighting equipment called the Cobra, where we train people with technology for fighting fire, where you don’t need to go into the building because you can fight the fire from the outside the building.”

He said the company prides itself as an example of local content. “We are proud to say we are the flagship of local content because a lot of training that were previously done abroad is being done here. We have several courses that we do here that we are the only one that do it in Africa and because of this; a lot of oil companies have resolved to be their training here. Certain certifications are required to do offshore works in Nigeria.

“I must say we have most of the certifications in-country such as Offshore Petroleum Industry Training Organisation (OPITO) and most of our courses are OPITO certified. We are currently building scaffolding training platform, and we are the only company that has a certificate called CSRS in-country. Some of our clients are Chevron, Shell, Total ExxonMobil and some other companies, and we have capacity to accommodate 100 people a week because training here is not long term,” he added.

Interior Minister Lt-Gen. Abdulrahman Dambazau, during the tour of the facilities, was shown the Emergency Breathing System (EBS) and helicopter underwater escape training (HUET) for emergencies, such as fire outbreak on platforms, among others.

Dambazau said: “I’m very impressed with the facilities we have here for training particularly in the area of fire fighting. We have such facilities here, so we don’t need to send our personnel outside this country. The advantage is we save cost, and we also contribute towards providing employment to Nigerians. We also build capacity faster and more efficiently. I think there is a lot we will do with this company in terms of training our personnel but I won’t say what exactly.”

Otuyalo further noted that Falck Prime Atlantic believes that training should be as practical and realistic as possible. Our highly regarded and qualified instructors are experienced firefighters with practical knowledge of dealing with emergency situations, he said.

According to him, training is conducted with the latest techniques and technology and is delivered in a safe and controlled environment. This allows trainees to receive the maximum benefit from their training should it be required in a real life situation.

Training is delivered in a variety of training simulators and where realistic fire scenarios are created to simulate emergency situations. Our ability to develop and change scenarios means that we can offer training to meet the demands of varied industries, for example offshore energy, maritime and petrochemical.

He said: “Training is conducted to OPITO standards for the offshore sector and for the maritime industries advanced and basic programmes to SCTW 95 standards. In addition basic fire fighting courses are provided for onshore customers covering topics such as fire safety awareness and fire warden training.”

March 3, 2016
Federal Govt, NLC set for showdown over N5.14 trillion pension funds

Federal agencies are considering all options to dance around dwindling oil revenues triggered by tumbling prices of crude at the international market. One of such options is a request by the Mr. Babatunde Fashola, the minister of Housing, Works and Power, to access the N5.14 trillion pension fund to finance critical infrastructure. But, the Nigerian Labour Congress (NLC) has rejected the proposal, reports OMOBOLA TOLU-KUSIMO

“It should thus be avoided immediately before it gains ground within the corridors of power. It is a kite the congress and the generality of workers will not want to see fly in this circumstance.

“Nigerian workers are worried when we remember that it was in the midst of the mess that the public sector had made of the public sector pension fund scheme that the unified pension fund scheme was established.

“The thought of using our pension fund for investment in public sector infrastructure development is highly frightening given the well-known penchant for mismanagement inherent in public sector institutions in Nigeria.

“The future of Nigerian workers cannot be guaranteed under a scheme controlled entirely by crass, profligate and often insensitive politicians famous for their careless handling of public funds.

“We find it difficult to muster any confidence from anywhere to entrust our livelihood in the hands of a group that has historically and systematically decimated our collective resources over the years pauperising us at the slightest opportunity without any conscience.

“Moreover, we want to state that the Minister in all intents has only seen a pool of funds and sees it as something that could be annexed for the usual things Nigerian politicians do with our funds. Our pension fund is managed by the PFAs under the advisory of PENCOM.

“We are therefore at a loss how the minister wants to actualise this stated objective. What will be the mechanism for accessing this fund for infrastructure development without infringing the different laws put in place to manage the fund? Is he suggesting that the fraction set aside for PFAs to invest in public infrastructure development is small and should be a larger chunk?

“Let it be noted that workers in Nigeria have become the weeping boys and girls of every government policies and actions. Whenever there is a down-turn in the economy; wicked and heartless politicians have always turned to workers in search of what they could get from our hard-earned tokens.

“They have cut-down the little perks available to workers without any resistance while refusing to give up on their comforts but have instead increased the size of the budget to service their personal needs; they are currently indebted to workers in some instances and states, up to 15 months arrears and that is not sufficient; they are not paying the now expired minimum wage as prescribed by the law; yet, they are not satisfied; they are sacking workers with reckless abandon just like the 3,000 workers in Imo State last week yet, they are not done.”

Governor Rochas Okorocha reinstated the workers after striking a deal with the NLC on a sharing formula accruing to the state from the federation account.

The NLC chief described Fashola’s proposal as another stone being prepared to be cast at the workers by politicians in their effort at furthering their emasculation.

He said: “The imperativeness of reminding our political leaders that Nigerian workers were not responsible for mismanaging the nation’s economy but the politicians becomes real given their present intentions.

“We cannot therefore be made sacrificial lambs when anything goes wrong with the economy which our politicians have so hopelessly wrecked and continued to rape without any regard.

“It is therefore immoral and careless to subject such fund which is the life-blood of workers to the itchy-fingers of politicians no matter how well intentioned.”

Advising the minister to leave the pension fund alone, the NLC said: “If our politicians could mismanage the huge accruals to our treasuries from the oil and gas sector over the years, is it the pension fund that will be left unscathed?

“In any case, since we are the owners of the fund, we insist that whatsoever benefits that purportedly will accrue to us as a result, we do not want to be part of it.

“We also insist that before anything could be done regarding our pension contributions, we should be the first to know as the custodians of the interests and desires of the workers.

“If Fashola intentionally wants to light the fire of debate on this, let him know that this is where we stand and should immediately bury the idea. We suggest that the MDAs and the government use their well known dexterity and creativity to look for funds elsewhere and take their lustful gaze away from workers’ pension funds.”

“NLC will resist any action or policy designed to turn the nation’s pension funds into one of the sources of fund available for the use of the Federal Government. We will not tolerate this seeming ‘lusting after’ the purse of the pension fund. We will not take kindly to attempts by any politician to expose our life-savings to the vicissitudes of the politics we play in Nigeria today.

“We have always remembered the greed with which successive governments have announced the degree of expansion in the size of the pension fund. When it was N2 trillion, they were watching, when they announced it was N3 trillion, the look on their faces changed; when they said it was over N4 trillion, they began to salivate and now that it has grown to about N6 trillion; it has become a frenzied and delirious attempt to annex it.

“Unfortunately, we recognise all of these in the look on the faces and body language of those in government which has also become heavily expressed and resonated in the sound-bite of Fashola’s proposal. We say a resounding no to the use of pension fund for infrastructural development.”

She said: “The major thrusts of the 2014 Act are the enhancement of the powers of the commission in its regulatory and enforcement activities, enhancement of the protection of pension fund assets, provision of greater opportunity for investment of pension funds in infrastructure and housing development, review of the sanctions regime to reflect current realities, provisions that would facilitate the participation of the informal sector and provide the framework for the adoption of the CPS by states and local government areas.

“In exercise of the commission’s regulatory responsibility, it had issued regulation on investment of pension fund assets to further guide how the pension contributions should be invested.

“The pension assets have been largely invested in Federal Government securities, equities, money market instruments and corporate debt. The Commission has been making efforts to stimulate growth in the economy by introducing new assets classes into the portfolio of the pension funds provided they are allowed by the Pension Reform Act 2014.

In this regard, Infrastructure Funds and Bonds were introduced to bridge the gap in the financing of infrastructure and housing. However, despite the availability of over N3.95 trillion for infrastructure financing, over N156 billion has been taken leaving over three trillion untapped.

PenOp’s position

Chairman, Pension Fund Operators Association of Nigeria (PenOp), Mr. Lounge Egherioude, believes the funds can be released to finance infrastructure, once the due process is followed.

Longe, who doubles as Managing Director, AIICO Pension Ltd, says the PFAs can invest the fund in projects that are well conceived.

According to him, investing the pension funds in infrastructure would generate better returns to pension scheme contributors, adding that nobody needs to be convinced with the minister’s proposal.

His words: “It is not a matter of conviction but a matter of taking each step of its conviction through the right process.

Yes, there is commitment around the table and a lot more energy. There is a realisation that we have nowhere to go and that our backs are against the wall. As it is now, everybody has to contribute his own part, and we, as PFAs, are ready to play our own part. But, the government and all other stakeholders need to play their own part.

“We can invest the fund in projects that are well conceived. This catalyst fund will bring counterpart funding from the international community because if you don’t invest in your country, nobody will invest in it. If you provide the anchor funding, you are likely to attract international investment.

“With the new PRA 2014, I can say that the industry is consolidated. There is more knowledge and commitment. What we need is serious government to see a completely different economic environment.

“What we said during the meeting with the minister is that infrastructure investing requires clear concept and clear contract. There is also the reconstruction and recycle phase of money that has been spent by people paying for the infrastructure.

“All of these will take time because if you are talking about the concept, we have to determine which of the projects to be selected and which we have already discussed. How will the projects be put together, who is going to implement the contract and who is going to have the concession?

“The selection has to be done right. Then we proceed to construction which takes a few years. When will the construction be delivered? This must be stated in the contract. If it is a road project, how are you going to pay the tolls to make the facility refinance itself? These are the things that we need to do. These are the bolts and nuts and the way to move forward.

Managing Director, Zenith Pension, Mrs. Nkem Oni-Egboma, said one would expect that pension fund should provide a sure gateway for the needed finance to fund infrastructural deficit but corruption, policy inconsistency and lack of appropriate investible products have hindered the deployment of pension fund to nation building.

Speaking in Lagos during a symposium organised by the Nigeria Pension Consumer on the “Security and strategic deployment of pension fund in Nigeria for nation building”, Mrs. Oni-Egboma said a suitable investable vehicles like infrastructural bonds and equity with low risk must be created for Nigeria to harness the exponential growth in pension asset and channel it to achieve laudable infrastructural and structural transformation.

She also stated the need for the right policy formulation that will provide conducive ground rules for the funds’ deployment.

Speaking specifically on how to channel Nigeria Pension Fund towards infrastructural development for nation building, she said there is need for capacity building, Public-Private Partnership (PPP) among others.

She explained that pension operators need to acquire necessary knowledge, expertise, skill and resources through the development of appropriate capacity programmes that would enable them play directly in infrastructure investment.

Her words: “There must be a contractual arrangement between a public agency and a private sector entity. Through this agreement, the skills and assets of each sector are shared in delivering a service or facility for the use of general public. The government needs to ensure that all parties are carried along to build confidence with stakeholders.”

“Floating of infrastructure bond targeted at specific public good and infrastructure with clearly defined exit route, private equity – targeted at infrastructural development like ARM Harith Infrastructure Fund for power project; appropriate government policy and stability that would create the enabling environment for the right financing from pension fund and collaboration with Nigeria Mortgage Re-financing Corporation”, she added.

February 16, 2016
Federal Govt, NLC set for showdown over N5.14tr pension funds

Federal agencies are considering all options to dance around dwindling oil revenues triggered by tumbling prices of crude at the international market. One of such options is a request by the Mr. Babatunde Fashola, the minister of Housing, Works and Power, to access the N5.14 trillion pension fund to finance critical infrastructure. But, the Nigerian Labour Congress (NLC) has rejected the proposal, reports OMOBOLA TOLU-KUSIMO

Going by the words of Finance Minister Mrs. Kemi Adeosun, the Federal Government is in talks for concessionary loans worth $3.5 billion from the World Bank and African Development Bank the (AfDB) to finance this year’s budget.

But, the minister says no formal request has been made to the two international financial institutions ($2.5 billion from World Bank and $1 billion from AfDB). She said the government will tie the facilities to specific capital projects after the approval of the National Assembly.

With the budget estimate still undergoing scrutiny, the Minister of Works, Power and Housing, Mr. Babatunde Fashola, has hinted of a plan to access the N5.14 trillion pension funds to develop critical infrastructure.

The hint came on the heels of a presentation by the Director-General of the fund’s custodian – the National Pension Commission (PenCom) – Mrs. Chinelo Anohu-Amazu at the Villa during a meeting with President Muhammadu Buhari and all the 36 governors.

She told the chief executives that as at September, last year, about N4 trillion was available for infrastructure development out of theN5.1 trillion pension fund. According to her, the fund remains an untapped potential.

A World Bank report has said that Nigeria’s infrastructural deficit requires a yearly investment of $15 billion (about N2 trillion) for the next decade in critical areas like housing, transport and power sectors.

In times past, pension funds were invested in equities and bonds and the chunk held in government bonds as against the real sectors such as roads, bridges, hospitals, rail, airports, fee paying universities and prisons, among others.

In other climes, the economic strength of funds from contributory pension schemes play pivotal roles, especially in helping many countries like Canada, Japan, Australia and South Africa, among others, to aid economic growth and development.

Within a decade, pension fund witnessed phenomenal growth from a deficit of more than N2 trillion (about $12.9 billion) in liabilities in 2004 to over N5.14 trillion in total assets as at October last year.

The dilemma has been the inability of the Federal Government to access the funds owing to the strict regulation guiding Contributory Pension Scheme (CPS) to avoid bad management, corruption and policy inconsistency that characterised such schemes in the past.

But, the dilemma has been compounded by the Nigerian Labour Congress’ (NLC’s) rejection of any further involvement in the application and management of pension funds. The organised labour has threatened a showdown should the government tamper with the scheme.

Managers of the funds, including PenCom, the Pension Fund Administrators (PFAs) and Pension Fund Custodian (PFCs), have insisted on the creation of investable vehicles like infrastructural bonds and equity with low risk and the formulation of the right policy to provide a conducive ground rules.

Such measures, when taken, will enable the government to harness the exponential growth in the funds and channel it to achieve laudable infrastructural and structural transformation.

The question is how does the Federal Government meet these conditions to access the funds for the common good?

The pension funds are the proceeds of eight per cent deductions from employees’ salary and 10 per cent of employee’s total monthly emolument contributed by the employer, based on the requirement of the Pension Reform Act (PRA) 2004 as repealed by PRA 2014.

Experts argue that investing the funds in infrastructure development will yield more returns on contributors’ individual savings.

Fed Govt’s call for funds

The Minister of Power, Works & Housing, Mr.Babatunde Fashola has suggested that releasing the funds for investment in critical areas of the economy will be more beneficial.

Fashola, who made the suggestion in a keynote address he delivered at a retreat on “Nigerian Pension Industry Strategy Implementation Roadmap”, said he had foreseen a future for Africa, led by Nigeria, using the resources of the people to build a future for the people.

His words: “For over three decades, we have mouthed the need to diversify our economy in order to open up more sectors for productive activities, income, economic growth and jobs. But, we failed to follow through because of oil resources. It was quick and bountiful income even though there were boom and burst cycles.

“But today’s reality is that we are in another cycle of burst. Oil prices have crashed from over $100 per barrel, and is now hovering around $30 per barrel and there is a real chance that it will fall lower.

“Put very simply, our main source of revenue has taken a big blow. This household has lost its bread winner. However, it is not without options; it has assets; it can raise money; it has savings, such as the private money belonging to pensioners, but it cannot be used like oil money. Whatever is used must return. This calls for a new attitude. There is no free money.

“After three decades of prevaricating about diversification, diversification has walked into the front door of the Nigerian household. We must either embrace it with a new attitude or idle in agony and anguish, until when hopefully the price of oil will rise again, as it will surely do.

“The pension funds, which are under the management of PFAs, will not go into roads, rail, housing, hospitals or universities unless we change our attitude. Perhaps the appropriate starting point will be to acknowledge that pension reforms are just beginning to gain foothold across Africa in jurisdictions like Nigeria, Ghana, Botswana, Kenya and Uganda – to mention a few.

“But perhaps, the biggest and most advanced of the pension funds, especially in sub-saharan Africa, is the South African pension fund. While the sizes of these funds are happily growing, and the number of contributors is increasing, the impact in the quality of life on the continent is not yet anywhere near minimum globally acceptable standards.

“The reason is not far-fetched once we take a look at where the funds are being invested. The funds are largely invested in equities and bonds, and in the case of Nigeria, so much of it is held in government bonds.

“But, while these funds are not serving the real sector, it is tempting therefore to argue that although the pension funds contain contributions of the working class, they do not as yet penetrate enough into giving value to the lives of the contributors.

“Across Africa, there is a visible infrastructure deficit. No country-to-country rail service across most parts. The highways that connect most of the countries such as in the ECOWAS (Economic Community of West African States) region are in very poor shape and these are roads that can easily be built, and tolled to earn income to secure the return of pension funds invested in building them. Air travel is no better. Airports are not of the quality of design and construction or efficiency that is obvious in Europe. These are places where pension funds can be impactful.

“It must be mentioned of course that the attitudes that once mired pension funds management in scandals and lack of transparency, had led to very stringent legislative interventions that limited the scope of activities that pension funds could participate in.

“For example, until recently, the Nigerian pension fund law limited the contributor from using part of his pension to secure a mortgage. How, one may ask, is a person supposed to finance or part finance ownership of a home if he cannot use his own savings?

“In contrast to the mismanagement that used to be the story of our own pension funds, the most prolific of the pension funds in Africa, which is the South African Public Investment Corporation (PIC), has over $150 billion assets under management.

In Nigeria alone, they have $289 million in Dangote Cement , $98 million approved but yet-to-be drawn for Notore Fertilizer, $230 million in MTN Nigeria, $270 million in Erin Energy (formerly CAMAC) and $150 million in Mainstream Energy Solutions (in the power sector of Nigeria).

“By contrast, the question to ask is what is the ‘home based’ pension fund doing? If as I have shown, the visiting pension fund from South Africa has a total of $897 million in our economy.

“The answer is obvious, that is why we are here, that is why my host in their invitation spoke of ‘…suitable investible vehicles with low risk profiles and sufficient comfort…; as the reason that ‘…continues to hamper the drive to make visible economic impact’ in the letter to me. But, I can say that those investible vehicles exist.”

The minister said such funds should be invested in roads that can be tolled, housing, the Fourth Mainland Bridge, coastal road linking several states from Lagos to Bayelsa; the new seaport in Lekki and Badagry, the refinery by Dangote, Ajaokuta Steel, a petrochemical plant in the Niger Delta; the broken textile mills in the North and South of Nigeria that require new equipments and disciplined fiscal, technical and organisational management.

“Such funds”, he went on “could also be used to upgrade prisons in each of the six geopolitical zones that can help strengthen our justice system and decongest the colonial prisons we have kept as relics of our own sense of justice; in hostels for students in the universities, embedded power plants in the universities, most of which have teaching hospitals and provide an opportunity to power education and healthcare and the list is endless.

“It is as long as we can imagine and the time for it is now. This is the biggest opportunity to act towards diversification rather than sloganise about it. This is the time to show that our country and our national economy is bigger than the challenges posed by the dwindling oil prices.

This is the time to diversify and change the face of our economy once and for all. But, the risks that stand in the way are caused by us and they must be changed by us. My recommendations which I concede may not be exhaustive, but which I believe will begin our journey of change that will reduce the risk and increase the appetite of our local pension fund administrators to get their feet wet and test the waters in the place we call home.”

NLC beats the drum of war

Following the minister’s proposal to PenCom and other operators to release the funds to develop infrastructure, the NLC has rejected the deployment of the pension funds for infrastructure. It has threatened a showdown.

In a statement issued by Secretary-General, National Union of Railway Workers (NUR), Mr. Segun Esan, who spoke for NLC President Joe Ajaero titled: “Pension Fund for Infrastructure Development: A Recipe for Crisis”, the president stated the passage of the comprehensive Pension Reform Act (PRA) 2004 was heralded by many as a watershed in the nation’s pension administration.

It reads: “All over the world, pension funds are shielded from the vagaries of the market and the political arena. Its deployment is rather towards activities that would not compromise its value both qualitatively and quantitatively.

“This is borne on the premise that anything that compromises its value puts into jeopardy the lives of many Nigerians that retire daily from active work life and have placed enormous hope on the proceeds collectable from the fund which they have toiled day and night to contribute to since their active working days. The capacity of the fund to deliver on workers expectations at all times and in all situations must be assured and held sacrosanct by all especially policy makers.

“It is on this foundation that the NLC views with utmost anxiety the proposal by the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola that pension funds should be used for infrastructural development.

“This proposal is not only unfortunate but also constitutes a threat to the future of Nigeria workers. We have not seen the details of that proposal and we hope that the minister was just flying a kite or testing the waters and he is therefore not serious about pursuing it. Nevertheless, we make haste to say that this is a very dangerous proposal that exposes and threatens the security and future of Nigerian workers.

•To be continued

February 15, 2016
Federal Govt in order over Dasuki’s re-arrest, says court

Neither the Federal Government nor the Economic and Financial Crimes Commission (EFCC) is in disobedience of any order of the court by re-arresting ex-National Security Adviser (NSA) Mohammed Sambo Dasuki, a court has said.

A High Court of the Federal Capital Territory (FCT), Abuja yesterday ruled that it was wrong for Dasuki to accuse the Federal Government and the EFCC of violating the order granting him bail when there was evidence that he was only arrested after he had earlier been released from the prison upon his meeting the bail conditions.

The ruling delivered by Justice Husseini Baba Yusuf was on an application by Dasuki, in which he had sought, among others, an order restraining the EFCC from proceeding with his prosecution and an order quashing the charge against him.

Dasuki had, through his lawyers, Joseph Daudu (SAN) and Ahmed Raji (SAN), urged the court not to indulge either the Federal Government or the EFCC by proceeding with Dasuki’s trial on the ground that its agency had rearrested Dasuki after the bail earlier granted him.

Dasuki is being tried with a former Director of Finance and Administration, Office of the National Security Adviser, Shuaibu Salisu, a former General Manager, Nigerian National Petroleum Corporation (NNPC), Aminu Babakusa and two companies – Acacia Holdings Limited and Reliance Referral Hospital Limited – on a 19-count charge bordering on money laundering and criminal breach of trust.

Justice Yusuf dismissed Dasuki’s application on the ground that it lacked merit.

The judge, who read out the orders made by the court on December 18 last year, granting bail to the ex-NSA, rejected Dasuki’s claim that the order was violated by virtue of his re-arrest by the Department of State Services (DSS).

He said the court never restrained the complainant (EFCC) from re-arresting the 1st defendant (Dasuki) after his release from prison. He added that since Dasuki admitted that he was released from prison on January 29, having met the bail condition, it was not the court’s business that he was rearrested by another agency of the Federal Government – the DSS – who is not a party to the case.

The judge said his order granting bail to the ex-NSA was not against his re-arrest and that the EFCC could not be blamed for the action of the Federal Government even when they were both Federal Government agencies.

From paragraphs 6 and 7 of affidavit in support of this application, it is clear that after the first defendant/applicant satisfied the terms in Exhibit ‘Dasuki 2’, he was released from from Federal prisons on December 29, 2015. At this point, the order of the court, as far as I am concerned, which was directed at the Comptroller of Prisons, was in my view complied with.

“If the EFCC rearrested the first defendant thereafter, it makes, subject to the circumstances of such arrest, an interference with due administration of justice but it cannot be a disobedience to the order of the court to release the applicant on bail and the reason is because in making the order of bail in favour of the first defendant this court did not make any order against a re-arrest.

“However, the prosecution has debunked assertion that they rearrested the first defendant after his re-arrest from prison and stated that the first defendant is in the custody of Department of State Security Service. I do not agree that because the DSS and the prosecuting EFCC are agencies of the Federal Government, the act of one can be attributed to the other.

“The two agencies are creation of the Constitution with different laws guiding their operations and functions. The argument of Mr. J.B Daudu (SAN) that the agencies act on behalf of the Federal Government and that the agencies act on behalf of the Federal Government and the roles the same agencies played, and that the Federal Government is liable for their action and omission does not impress me.

“The fact that they prosecute on behalf of the Federal Government, is merely to aid the due administration of criminal justice. The agencies have separate identities and personalities vested in each to own property and to maintain action in court of law.

“It is my view that the relationship ascribed by the senior counsel (Daudu) to the Federal Government and its agencies, if accepted, will work greater damage to due administration of justice and otherwise.

“In my view, the approach that suits the approach of this case is for the 1st defendant, having been told that he is being held by a stranger in this case before this court, is to apply for the enforcement of his fundamental rights to personal liberty pursuant to personal liberty under section 46 of the 1999 Constitution.

“Having come to the conclusion that the complainant in this case is not in contempt of my order of December 18, 2015, there is no need for me to consider the arguments of parties which were canvassed in respect of the need or otherwise to stay proceedings in this case.

“At the end, it is my view that the application, filed on behalf of the first defendant, does not have any merit and I hold so. I therefore dismiss same,” Justice Yusuf said.

At the end of the judge’s ruling, prosecution lawyer Oluwaleke Atolagbe, asked the judge for a date for the commencement of trial.

Ahmed Raji (SAN), who represented Dasuki, objected to a date for the commencement of trial. He said his client was unable to prepare for trial because he was allegedly denied access to his lawyers.

Raji urged the court to give a date long enough to enable the ex-NSA get over his current inability to meet with his legal team in view of his current incarceration by “a stranger in this case”.

Justice Yusuf adjourned till March 23 for trial.

February 9, 2016
Federal Govt, MOMAN disagree on N413b fuel subsidy

THE last may not have been heard on the fuel subsidy claims by members of the Major Oil Marketers Association of Nigeria (MOMAN).

A whopping N413 billion was last week approved by the Federal Government for the immediate payment oil marketers’ outstanding claims.

The approval came in the wake of a brewing fuel shortage and stave off another harrowing experience of fuel scarcity.

Barely a week after the approval, the Federal Government and MOMAN are not on the same page over the gesture.

MOMAN, through its Executive Secretary, Mr. Obafemi Olawore, told The Nation on telephone, that foreign exchange differentials and interests on the loans they obtained from banks were not captured in the N413 billion.

Lauding the government gesture, Olawore said MOMAN members’ subsidy claims have not been fully paid by the government.

But Nigerian National Petroleum Corporation (NNPC) spokesman Ohi Alegbe disagreed with the MOMAN position.

President Muhammadu Buhari, he said, approved far above the marketers’ debt portfolio, which he put at about N300 billion.

According to him, the President magnanimously approved the N300 billion thresholds to take care of the members of the Independent Petroleum Marketers Association (IPMAN) and other importers involved in the chain of oil production.

Alegbe said: “The total debt was about N300 billion but to take care of the independents and other importers as well as other costs such as foreign exchange differentials and interests on loans, government approved N413 billion for them.

“Therefore, to say that the amount doesn’t cover the total debts owed the marketers, is just not being fair to the government.”

An acute fuel scarcity in May almost grounded the economy as blue chip companies in the financial and telecoms sectors served their clients and customers notices on plans to close shop. Several flight schedules were cancelled due to non-availability of aviation fuel.

Now that the Federal Government has approved more than the N300 billion being owed major marketers and depot owners, will fuel scarcity become a thing of the past in the country?

In February, Olawore said the Federal Government’s indebtedness to marketers stood at N250 billion as at end of 2014. The amount included the debt owed Depot and Petroleum Products Marketers Association (DAPPMA).

Mobil, Oando, MRS, Total, Conoil and Forte Oil are the members of MOMAN.

Olawore said the association had at that time, written several letters and held consultations with the government for payment of their debt. The major marketers also requested for upward review of their distribution margins, which had been fixed at N4.60 per litre since 2007.

The demand for increase in distribution margins, according to Olawore, was to cushion the effect of operational cost on members.

He said the margins have become inadequate because the salaries of employees and the cost of building retail outlets have shot up, adding that the demand for increased distribution margins died with the immediate past administration.

Olawore said: “MOMAN as at end of 2014 was being owed N250 billion in unpaid subsidies. Out of the N250 billion, N95 billion was the cost of foreign exchange (Forex) and interest on loans while the real subsidy for the marketers is N155 billion.

“We have met with the government and they promised to pay but we have not heard from them since then.”

DAPPMA’s Executive Secretary Olufemi Adewole identified soaring interest as the direct impact of the debts’ non-payment.

He noted that the outstanding bill was a little above N200 billion in April when the Federal Government made the last payment, adding that by the end of May, the debt had risen to N291 billion.

The major marketers and DAPPMA members are jointly owed the subsidy debt. Therefore, with the increasing interest on the loan, the debt will by now be well over N300 billion, he added.

IPMAN’s President Chinedu Okoronkwo, however, noted that his members will also partake in the subsidy payment.

The marketers have since May refused to import fuel. They insisted that until the government clears the arrears, they will not import, leaving only the NNPC as the sole importer.

It (NNPC) has capacity to meet 50 per cent of the national demand of estimated 40 million litres per day of petrol.

Alegbe said it would amount to an abuse of the President’s magnanimity if the oil marketers make further subsidy demands.

Besides, he said the disagreement on subsidy had been lingering from the previous government but because the Buhari administration wanted a smooth flow and distribution of fuel, he approved N413 billion.

According to him, government was verifying the 40 million litres daily consumption claim of the marketers, alleging that the figure would have padded up.

He said daily consumption should be about 30 million litres or even less.

NNPC’s Group Managing Director Emmanuel Ibe Kachikwu spoke of plan by the government to pay whatever is due to the marketers every month beginning from next year.

“From next year, marketers will be paid their dues every month and the issue of payment of interest on loans and undue forex differentials would be eliminated,” Kachikwu said in Lagos last weekend.

According to him, government’s target was to cut down fuel subsidy to between 15 and 20 per cent.

November 11, 2015
Federal Govt, Lagos and Apapa
SIR: Apapa is very strategic to the economy of Nigeria, being a major gateway to the country’s sea ports. The major share of government’s revenue comes from both the Apapa and Tin Can Island Ports. More than 75 per cent of the goods imported into the country come through the ports in Lagos and the major ports in the country are based in Apapa. Apapa is undoubtedly vital to the prosperity of Nigeria.

Unfortunately, in recent time, motorists, commuters as well as business men moving towards the axis have been subjected to untold hardship occasioned by perennial traffic gridlock that has become a recurring decimal along the ever-busy Apapa-Oshodi expressway. The traffic which usually stretches several kilometers is often mostly chaotic at Mile 2 and Julius Berger yard with people spending close to four hours on a journey that should not be more than thirty minutes.

The issues involved along the axis are multi-faceted. One, the Apapa-Oshodi road, a federal government road, is in bad shape and in need of urgent rehabilitation. Second, the nuisance of trailer drivers on the road is a major concern. Not only that they drive recklessly, but they equally park their trailers indiscriminately along the road. The indiscriminate packing of trailers on either side of the road is a serious factor in the painful traffic gridlock that commuters regularly suffer on the road. Third, incessant cases of abandoned vehicles equally constitute a major hindrance to motorists on the highway.

Also, the unprecedented upsurge of petrol tankers on the road is closely tied to the continuous importation of locally consumed fuel in the country. There are more than 50 depots in Lagos, which means there are between 50 and 400 trucks that load in one day. Consequently, a minimum of 3,000 trucks travel to Lagos on daily basis to lift petroleum products. Over 80 per cent of fuel supplies in the country are from Lagos. Hence, tanker drivers come from all over the country to source the products.

The fallout of the current situation on the country’s economy is indeed rather enormous. First, the difficulty in accessing the ports makes it very hard for agents to process their papers for the clearance of goods. The delay in the clearance of goods from the ports, invariably, makes the nation’s ports one of the most expensive in the world. It takes about two to five days for empty containers to be returned back to the port and yet the importers and their agents are made to pay demurrage and levies for a fault that is not theirs. The situation might get worse unless government muster the will to effectively intervene. The traffic crisis has equally resulted to loss of business and enormous man-hours. Indeed, most business interests in the Apapa axis have either folded up or relocated while the value of properties along the axis has seriously diminished.

Evidently, the Apapa- Oshodi chaos is a reflection of the systemic failure in the country. There is a need to creatively look into the petroleum distributive system and bring out more acceptable system of distribution. Equally vital is the need to redevelop the Apapa- Oshodi Road into a modern and world class highway. The Lagos State Government is showing the way forward in this respect with its on-going effort to transform the Badagry Expressway into a world class six lanes highway with BRT and light rail facilities. The Federal Government needs to closely work with the Lagos State government to fully restore the lost glory of Apapa.
- Tayo Ogunbiyi
Ministry of Information and Strategy, Alausa, Ikeja.
July 2, 2015
Federal Govt delegation visits Kano bomb blast victims

A Federal Government delegation, led by Minister of Education Ibrahim Shekarau, visited yesterday the Federal College of Education (FCE), Kano, where 15 students were killed on Wednesday in a bomb blast masterminded by the Boko Haram sect.

About 34 people were injured.

The delegation also visited the injured at the Murtala Muhammed Hospital, Kano.

Also on the delegation were former Jigawa State Governor Saminu Turaki; former Kebbi State Governor Adamu Alero; Senator Bashir Lado (Kano Central); Executive Secretary of the Nigerian National Commission for Colleges Prof. Muhammed Junaid; and Deputy Inspector-General of Police Sotonye Wakama, among others.

Shekarau said there was need to come up with a fresh strategy to tackle Boko Haram.

He said: “We are here on behalf of the Federal Government and President Goodluck Jonathan to sympathise with the management of this institution on the loss of innocent students in the attack by insurgents.

“We also sympathise with the injured, who are receiving treatment in various hospitals, and the entire community, which has been traumatised by this incident. It is our prayers that Allah, in His infinite mercy, grants the souls of the departed peaceful rest and their families, friends, associates and the college community the fortitude to bear this great loss. May He give strength to the injured and continue to protect all citizens.

“It is unfortunate that institutions of learning are being targeted. All hands must be on deck to ensure security of life and property in our institutions.

“This is a challenge to whoever is concerned to go back to the drawing board to generate additional strategies to protect life and property in our institutions.”

The former Kano State governor said: “Security is not a one sector affair; it is everybody’s business. Everybody, including the Federal Government, states, local governments, communities, elders, societies and individuals must be concerned.”

FCE Provost Dr. Rabi Jibrila said it was sad that students were targets of terrorists.

The delegation did not visit Governor Ra’biu Kwankwaso and the Emir of Kano, Malam Mohammed Sanusi III, but ran into the emir at the Murtala Muhammed Hospital.

The emir was also there to commiserate with the injured.

He urged them not to be discouraged by the attack but to return to school and complete their education.

Also yesterday, the Jama’atu Nasril Islam (JNI) condemned the attack, describing the bombers as “blood thirsty”.

In a statement, the Secretary-General of the apex Islamic body in the North, Dr. Khalid Aliyu, said: “JNI received with consternation and shock news of the bomb explosion and senseless killing of innocent students at the College of Education, Kano. This barbaric and callous attack is condemnable in its entirety. It will always raise questions about what the perpetrators want. Is it a conspiracy? Who are these blood thirsty fellows? How did they gain access to the college? Why were they not prevented or arrested? What was the motive behind such heinous act? Isn’t intelligence gathering supposed to aid security operatives and why is it not yielding the desired results? There is much more than meets the eyes. With the security check points across the state, it is hardly imaginable that such a dastardly act could still occur.

“The sporadic gun shots that ensued after the blast is worrisome and calls for practical investigation, which must bring the perpetrators to book and stop recurrence of such devilish acts.

“As Muslims, we take solace in the fact that there is a day of retribution, when all souls shall account for their deeds. We urge government at all levels to take proactive measures to stop the killing of innocent citizens.

“We commiserate with the Kano State government, the Emir of Kano and the families of the victims. We pray to the Almighty Allah to grant the deceased forgiveness and mercy, and those who sustained injuries quick recovery.”

September 19, 2014
Federal Govt to review schools’ resumption

Schools may reopen as from middle of this month, with the anti-Ebola battle going well, it was learnt yesterday.

Health Minister Prof. Onyebuchi Chukwu broke the news to State House correspondents at the end of the Federal Executive Council (FEC) meeting in Abuja.

At the briefing were the Ministers of Information, Labaran Maku, Transport, Umar Idris, National Planning, Abubakar Suleiman and Power (State), Mohammed Wakil.

The Federal Government last month announced October 13 resumption date for all schools.

Chukwu said the expert opinion now, with the strong containment efforts of the government, is that schools can open earlier than October 13.

The new resumption date, he said, will be announced by the Minister of Education, after meeting with Commissioners for Education and other stakeholders, who were involved in fixing the October 13 date.

The Health Minister, who give a weekly report to the Council on the Ebola disease brought to Nigeria by the Late Liberian-American Patrick Sawyer in July, said 296 contacts were under surveillance.

The 296, he said, include 255 in Port Harcourt, Rivers State and 41 in Lagos State.

After three weeks of surveillance in Lagos State, Chukwu said, 320 persons have been removed from the surveillance list.

Enugu, he said, is completely free from the disease. The nurse who left surveillance in Lagos and went to meet her husband in Enugu is free from the disease.

According to Chukwu, as at yesterday morning, the number of confirmed cases is 18, including the index case, the late Sawyer. Of the cases, 14 were recorded in Lagos and four in Port Harcourt.

Those who have been managed and discharged are eight. Seven deaths have been recorded.

Till date, only two persons are under treatment – one in Lagos and the other in Port Harcourt.

Chukwu refuted media reports stating that 60 Ebola contacts were missing in Port Harcourt.

Speaking on the ECOWAS official, Olu-Ibukun Koye, who jumped surveillance and took the virus to Port Harcourt, the Minister said: “One is that at present he doesn’t have the virus in his blood; so, he cannot infect other people but he has high antibodies, which is just showing that he had the disease.”

“He is part of the 18 cases that have been confirmed in Nigeria. He is with us in Lagos, not in isolation because he is not sick anymore, but because of aberrant behavior we needed to be sure that there is nothing further that can prove risky to society.”

On whether Koye will be prosecuted for his actions, Chukwu said: “Regarding what can be done, this is still at exploratory stage. We are looking at three possible areas, one we are asking the Ministry of Foreign Affairs, since he is working for a diplomatic mission, to advise us.”

“Secondly, we also need to look at our laws. What currently our quarantine law provides is too old, it came from the colonial period and I do know that in the National Assembly, there are attempts currently to see how to amend that law and make it up to date.”

The Minister explained the difference between a contact or somebody under surveillance, a patient under quarantine and a patient under isolation.

According to him, a contact is anybody who has had close relationship with the patient and may be put under 21 days surveillance by not leaving their homes. They are contacted through telephones until the period elapses.

A patient, who is quarantined, Chukwu said, is located in a central place outside his home after showing some symptoms similar to that of Ebola.

A patient is said to be in isolation in a particular place outside his home when he or she has been confirmed to have the Ebola Virus Disease.

September 4, 2014