The Nation Newspaper

Tag: GOVT

  • Alleged diversion of proceeds: Govt official, stockbroker disown Suswam

    Two women, who played major roles in the 2014 sale of Benue State’s shares worth about N9billion, have denied knowledge that ex-Governor Gabriel Suswam and his Finance Commissioner, Omodachi Oklobia, had the intention of diverting the proceeds.

    The women, the Chief Executive Officer (CEO) of Benue Investment and Property Company Ltd (BIPCL), Mrs. Brigid Shehu and the Group Managing Director of a Lagos-based stoke-broking firm, Elixir Investment Partners, Mrs. Clara Mshelia-Whyte, admitted participating in the process leading to the sale of the shares, but denied being parties to the alleged diversion of the proceeds by Suswam and Oklobia.

    Suswam and Oklobia are being tried on a nine-count charge of money laundering. They were, among others, accused of diverting N3, 111,008,018.51k (about N3.1billion), which formed part of the N9,411,708,009.51k (about N9.4billion) recovered from the sale of the state’s shares.

    When trial opened on December 8, a prosecution witness, Junaidu Sidu, told the court how Suswam and Oklobia allegedly connived to divert about N3.1 billion from the share sale proceeds, using a bureau de charge operator, Abubakar Umar of Fanffash Resources Ltd, who allegedly converted the money to $15,800,000 (USD), which he purportedly handed to Suswam in cash at his (Suswam’s) home in Maitama, Abuja.

    But, in their statements, which formed part of the bundle of documents filed in court by the prosecuting agency, the Economic and Financial Crimes Commission (EFCC), both women claimed to have acted at the behest of Suswam and Oklobia.

    Mrs. Mshelia-Whyte said in her statement that BIPC Ltd, during Suswam’s administration, engaged her company, Elixir Investment Partners, to raise N10 billion for the government by selling BIPC’s shares in companies, including Dangote Cement.

    She said they raised about N9 billion, which her company was mandated to pay into three accounts.

    “After the mandate to pay, we honoured their (Benue State government’s) request, but one of the requests bounced back. We contacted the managing director, BIPC, who advised us to contact the commissioner, since she said, as a company, they report to the Ministry of Finance and that the error may have come from them.

    “I called the commissioner for Finance to rectify the error and he said he would come back to me. We later got a board resolution signed by the managing director, BIPC, company secretary and the commissioner for Finance, to go ahead with the payment to Fanffash, and, in the resolution, called it their project account.

    “I called the Group Compliance Officer, Rhoda Onojaife, to conduct a KYC (know your customer) on Fanffash so that we could attach and file. We conducted the KYC to ascertain the identity of the beneficiary and know where the business office is situated for future references.

    “We informed the commissioner for Finance of the KYC. Based on the KYC, we found out that the true nature of the beneficiary is BDC (bureau de change). We did not consider that appropriate, which is why we asked the commissioner for Finance and the managing director of BIPC, who insisted that it is a project account as stated by the resolution and that the shares belong to the state and it has a right to use the proceeds as it deems fit,” Mrs. Mshelia-Whyte said.

    Mrs. Shehu, in a letter dated August 14, 2015 to Governor Samuel Ortom, a copy of which The Nation sighted at the weekend, distanced herself from the “deal,” insisting that only Suswam and Oklobia could explain what happened to part of the share sale proceeds paid into Fanffash Resources’ account.

    The trial of Suswam and Oklobia resumes today before Justice Ahmed Mohammed, during which the defence is expected to cross-examine Saidu.

  • Invest in agric, don urges govt

    Director, Institute of Agricultural Research and Training, Moreplantation, Apata Ibadan, Prof James Adediran, has urged the Federal Government to invest in agriculture and educate Nigerians on the usefulness of the new vitamin A cassava products.

    He spoke a seminar by the college to empower farmers in Ibarapa land.

    Adediran, who was represented by the Deputy Director of the college, Dr. Ayodele Adegbite, noted that agriculture is the only means to eradicate poverty in the society.

    He said: “We can only reduce poverty with our involvement in agricultural products. Before now, there are limited things we can do with cassava, but now, researchers are not sleeping in their quest to discover more things that can be done with cassava, especially Vitamin A cassava. I want to assure you that it is a means to improve the level of unemployment in Nigeria. We want full involvement of Government in agricultural sector.”

    He said cassava can rid the nation of poverty and boost the nation’s Internally Generated Revenue (IGR) if properly managed like oil.

    Researchers, he noted, have discovered many things that could be done with cassava, especially the vitamin A cassava.

    The facilitator of the seminar, Mrs Bisi Adeyemo, who resigned as a branch manager in one of the new generation banks in 2000 to seek for greener pasture in agricultural sector, said the sector is viable enough to address the high level of unemployment.

    She told the forum that she had employed more than 100 workers in her farms, including graduates, saying more are still longing to be part of the project.

    Adeyemo urged the government to support the agriculture sector and encourage Nigerians to patronise the Vitamin A cassava.

  • Govt’s economic direction now clearer, says LCCI

    Govt’s economic direction now clearer, says LCCI

    The Federal Government’s direction has become clearer, following its release of the Medium Term Expenditure Formework (MTEF) and the Fuiscal Strategy Paper (FSP), Lagos Chamber of Commerce and Industry (LCCI) Director-General Mr. Muda Yusuf has said.

    Speaking with The Nation, Yusuf said with the release of the MTEF and the FSP, business operators now have clearer indications of the government’s disposition towards the petroleum Industry Bill (PIB) and other reforms in the oil and gas sector.

    He said the 2016 budget has also given some insights into the economic plans of the administration. “Clearly, the situation with regards to the policy direction of the government is much better today than it was few months ago,” Yusuf said.

    He, however, said LCCI still expects further information and insights into the policy framework with regards to public private partnership and the scope for private sector investment in infrastructure provision. “This is very important in the light of the serious revenue constraints that the government is faced with,” he noted.

    Meanwhile, the LCCI chief has described the scrapping of the fixed electricity charge by the Federal Government through the National Electricity Regulatory Commission (NERC) as ‘laudable’. The fixed charge is that component of the tariff that commits electricity consumers to paying an approved amount of money mostly on a monthly basis, irrespective of whether electricity is consumed during the billing period or not.

    But NERC Chief Executive Officer (CEO), Dr. Sam Amadi, while announcing new electricity tariffs in the country recently, said electricity consumers would no longer pay the contentious and vexatious fixed charge included in the monthly electricity bills issued by the 11 DISCOs in the country. He said consumers would now only pay for what they consume monthly (pay-as-you-consume).

    But Yusuf, who lauded the removal of the fixed charge, said the provision of meters to consumers should be accelerated to put an end to the phenomenon of estimated billing. He said the NERC and the Minister of Power, Mr. Babatunde Raji Fashola (SAN)  had argued that the tariff review was a major plank of the Power Sector Reform and is critical to the delivery of power.

    He said the purpose, according to them, is to make electricity tariff cost -reflective to make investments in the sector attractive and sustainable. “It is difficult to fault this position, especially in the light of the clamour by the citizenry for a private sector driven power sector.  In any event, it will still be cheaper (even with the review) than individual firms or households providing electricity through generators powered by diesel, petrol generators or LPFO,” Yusuf said.

    He was, however, quick to warn that “electricity consumers should not be made to pay for inefficiency or corruption costs.  It is important to evaluate the elements of the current costs especially the integrity of procurement processes and other operational expenditure under the current dispensation. The risk of bloated costs exists and should be addressed.”

    The NERC explained that the tariff review was the result of a transparent, rigorous and credible rate review process that will lead to greater reliability in the provision of electricity. The commission added that with the review, “more people will progressively have access to the grid, more meters will be deployed and the need for self generation would be gradually reduced.”

    However, the LCCI chief pointed out that pricing is only one component (although fundamental) in the power delivery chain. “There are other issues such as availability of gas, security of gas infrastructures; adequacy of investment in gas infrastructure; security and adequacy of the transmission lines; huge indebtedness by the Ministries, Departments and Agencies (MDAs) to electricity distribution companies (DISCOs) and the general framework to mitigate the risk of investment in the sector. All these need to be sorted out in order to inspire investors’’ confidence,” he added.

    On the controversial Central Bank of Nigeria (CBN) Foreign Exchange (forex) policy, the LCCI chief said it is notable that President Muhammadu Buhari during his budget address to the National Assembly assured the nation that the forex policy will be reviewed.

    “One of the challenges of the investment environment is the foreign exchange policy especially the liquidity problem in the foreign exchange market,” he pointed out, adding that “Investors have issues with the exchange controls, the restrictions of importers of 41 items from access to the foreign exchange market, the restrictions on export proceeds, restrictions on the use of debit naira card abroad and above all, the liquidity crisis that has been created in the foreign exchange market.”

  • Establish labour unemployment centres, Oshiomhole advises govt

    The Federal Government has been urged to establish labour unemployment centres across the country.

    Edo State Governor Adams Oshiomhole  made the call in Abuja when he visited the Minister of Labour and Employment,  Dr Chris Ngige.

    He said the call was necessary to enable the ministry have comprehensive database of qualified but unemployed Nigerian youths.

    The governor noted that the administration of President Muhamadu Buhari made it clear that its primary purpose was to improve the welfare of the people. He said that only way to achieve this objective was through job creation.

    Oshiomhole said he benefited from the services provided by labour unemployment centres when he was in his early 20s. “The re-introduction of labour unemployment centres for the unemployed will create opportunity for employers of labour to contact and recruit people who registered.

    “It will also provide opportunity to those who registered to acquire training and also enroll in one form of apprenticeship or the other.

    The centres will also give employers the opportunity to carry out regular trade test, do proper grading of skilled and semi-skilled test among others,” he explained.

    Oshiomhole stated that this is one area the country has neglected over the years and that given the present circumstance, there is need to re-establish these centres.’

    He called on employers to inform the Ministry of Labour and Employment whenever they employ, dismiss and retrench members of staff in their various establishments.

    He also called for the review of expatriate quota for firms and industries operating in Nigeria.

    In his response, the minister told the governor that under his leadership, the ministry would experience turn around.

    He said the ministry would ensure that the aspirations of unemployed youths were met.

    James Ocholi, the Minister of State in the ministry, who praised the governor for his instructive suggestion, promising that the ministry would heed the advice.

  • Govt appeals to striking doctors

    Govt appeals to striking doctors

    The Osun State government yesterday appealed to striking doctors to go back to work in their patients’ interest.

    Through the Permanent Secretary of the state Hospital Management Board, Mrs. Omolara Mopelola Ajayi, the government said though the doctors have the right to ask for their entitlements but they should consider the parlous state of the economy and go back to work.

    Speaking with reporters in Osogbo, Mrs. Ajayi said the government would continue to appeal to the doctors, who have been on strike since September to protest non payment of their salaries.

    She said the state had dialogued with the state chapter of the Nigeria Labour Congress (NLC) over the matter and was still ready to continue dialoguing till the issue is resolved amicably.

    The Permanent Secretary added that Governor Rauf Aregbesola, House of Assembly Speaker Najeem Salaam and notable medical leaders had severally called on the doctors to sheath their swords, saying they would not be tired of asking them to see reason.

  • Oil marketers defy govt orders, sell fuel above N86.50

    Many filling stations across Benin City, the Edo state capital  yesterday shunned the Federal Government’s directive on the new pump price for petrol as they continued to sell the product at either the old regulated price of N87 per litre or above it.

    While majority of the filling stations around Ekenwan, Akpakpava were not selling fuel, only  MEGA station on Sapele road was selling petrol for N86.per litre, with a relatively long queue.

    Also, at an NNPC retail station in Upper Sakponba road, petrol was sold for N87 despite the Federal Government’s directive.

    A fuel attendant told our correspondent on condition of anonymity, that motorist should appreciate them after all “Others are selling for as much as N145-N 150 per litre

    But other independent marketers who were dispensing the product sold to motorists and other buyers at between N115 and N150 per litre.

    It would be recalled that the Petroleum Product Pricing Regulatory Agency on Tuesday announced that retail filling stations belonging to the Nigerian National Petroleum Corporation would from Friday, January 1, 2016, sell petrol at N86 per litre, while other oil marketers would sell the product at N86.5 per litre

  • Ajimobi frowns at ‘give away’ sale of govt property

    Ajimobi frowns at ‘give away’ sale of govt property

    Oyo State Governor Abiola Ajimobi has decried the sale of government land and quarters by his predecessors.

    He said they did not consider the state’s interest.

    The governor spoke at the weekend’s inauguration of the first phase of a multi-million Naira housing estate in Agodi, Ibadan, the state capital.

    He accused his predecessors of selling choice property to their cronies at ridiculous prices.

    Ajimobi pledged that his administration would embark on infrastructural revolution.

    The estate, Olive Court, is located at Agodi Government Reserved Area (GRA).

    It will accommodate 45 duplexes, with the first phase of 15 buildings completed .

    The estate has its independent power supply, sewage system and water supply.

    It is a partnership between the government and UPDC, a subsidiary of United African Company (UAC).

    The governor said the estate was a further demonstration of his administration’s commitment to the development of the state through necessary social and economic infrastructure.

    His words: “This edifice is one of the legacy projects of this administration.

    “It is the actualisation of our dream for the physical infrastructural development of Oyo State.

    “This state must continue to be developed.

    “We are committed to actualising the development of this state.

    “A good leader must not only have dreams but must ensure that the dreams are actualised.”

    Ajimobi said the land had only four buildings designated as Governor’s Guest Houses.

    Instead of selling off choice government property at low prices, he said the governors should have considered the state’s interest.

    The governor added: “This is unfortunate. Even the large expanse of land used for the estate had only four houses designated as Governor’s Guest Houses.

    “How many guests is a governor expected to have that will occupy four houses?

    “So instead of selling four quarters for N20 million each, we said why don’t we look for a firm with quality to convert them into a modern estate to generate revenue for government; hence our resolve to engage UPDC to partner us in our housing revolution drive.

    “Let me invite more investors to embark on housing projects in other areas identified across the state to take care of our housing deficit.”

  • Govt to hands off club ownership, says NFF President

    Govt to hands off club ownership, says NFF President

    NFF President Amaju Pinnick has revealed ownership of clubs will be transferred from Government to communities and individuals as a fallout of the FC Taraba players’ sleep strike outside the State Government house to protest unpaid salaries and allowances.

    Pinnick described the matter as highly unfortunate but has promised that the League Management Company will be made responsible for what transpires further.

    He said: “I want to add that going forward, the best option will be for us to have clubs that are independent of government control; clubs that are owned by communities and individuals. We will inter-face with the Governors’ Forum to kick-start this process.

    “We know it will not happen in a month or two, or even in a year. But our objective is to have clubs that are properly run, and stadia that are so friendly that whole families can go and watch football matches without any anxiety.”

  • Govt must establish courts to fight sub-standard products, says SON DG

    Govt must establish courts to fight sub-standard products, says SON DG

    The Director-General of Standards Organisation of Nigeria (SON), Dr. Joseph Odumodu, has said the fight against sub-standard and fake products in the country will be better tackled with the creation of a special high court that will try importers engaged in such activities.

    He said though the country has lots of laws meant to deal with those who bring in fake and sub-standard products, a special court will be of great help in the fight against fake products in the country.

    Speaking with reporters in Lagos, during a review meeting with International Accredited Firms (IAFs), the SON boss said: “We have enough laws to jail those importers, what I am also lobbying for now is to have a special court, a federal high court that will handle these cases expeditiously, because when people see that it is not going to take five years, but two months to get cases done with, they will have to think twice.”

    While revealing that SON is working with the Chinese government on how to reduce importation of fake products into the country, Odumodu said they are working on product liability and repatriation. He said: “In the last four years, SON has entered into agreement with the Chinese Government, which never happened but there is a renewed commitment coming from the Chinese government, but we need to see this in action.”

    He stressed that such agreement will actually help SON to clean up the market of fake products.

    “If I walk into a shop to get a product and it is substandard, it is the person who sold that product that has the liability and until we are able to trace the product to the original owner, the seller of that product will be in our custody. What we are also saying is that we are putting some responsibility on the retailers and wholesalers. We have told them to ask for documentation before buying a product because they need to protect themselves,” he said.

    Odumodu added that SON’s system going forward must be evidence-driven.

    “If you sell a product to someone and it does not work, you will pay. People should demand their rights. If you buy a product and it does not work, you must return the product and get your full value and if you do not get it, you have a right to respond. If you have a product in the market, it must be registered to enable us capture it into our database so that when the product fails to conform to standards, we will know where to trace it to,” he explained.

  • Govt votes N165.3b for new projects

    Govt votes N165.3b for new projects

    OF the Ministry of Power, Works and Housing’s N282.4 billion capital budget, N165.3 billion will be spent on new projects, a document has shown.

    The cash will be spent on construction of roads, provision of houses, electricity and railway.

    According to the 2016 budget proposal the ministry submitted to the National Assembly (NASS), new electricity projects are estimated to cost about N20.6 billion.

    About N57.7 billion will be spent on the construction of houses, N86.6 billion on new roads and N256 million on railway projects

    Among the projects are rehabilitation of the Lagos/ Sagamu/Ibadan dual carriage way, sections 1 & 2 (N66 billion); rehabilitation of Third Mainland Bridge and underwater works (N34.2 billion) and repair of Enugu/Port Harcourt dual carriage way sections 1,2,3 & 4 at (N13.2 billion).

    The Minister, Babatunde Fashola, during his maiden media conference, spoke of massive roads construction, especially those that will connect the states and those that would promote the economy.

    There are also plans to build houses, especially in partnerships with states. Thus, about 1973 blocks of 7068 housing units will be built in the geopolitical zones and the Federal Capital Territory with the N57.7 billion.

    About N117.1 billion is allocated to repairs and rehabilitation of existing projects.

    Aside, the ministry is expected to repair defense equipment, military barracks and air navigation equipment.

    According to the budget, about N111.7 billion is for road repairs, N601.2 million will be spent on railway rehabilitation and waterways repair will cost N2.5 billion.

    Other rehabilitation projects listed in the ministry’s project include airport/aerodromes (N634.9 million), defence equipment (N650 million), recreation facilities ((N377.2 million), air navigational equipment (N292.3 million) and Defence barracks (N367.7 million).

    There are also the rehabilitation of Apapa-Oshodi Expressway (N4 billion), Construction of new access roads to Apapa/Tin can NNPC depots, Atlas cove to Mile 2 at N1.3 billion, among others.

    The ministry is said to be owing contractors over N250 billion. It was gathered that if the ministry is to pay the outstanding debts from the new budget, it will be little to spend on completing old projects much less embark on new ones.

    As for projects completed but awaiting payments, the following sum has been allocated for major economic routes: Onitsha and Enugu (N173.4 million), Onitsha and Owerri (N102.8 million), major link between Lagos and Ogun states (N115.9 million).