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Tag: Intervention Fund

  • Maritime: Stakeholders seek intervention fund

    Maritime: Stakeholders seek intervention fund

    Our Correspondent OLUWAKEMI DAUDA dissects policies that will shape the sector in 2018, benchmarking it on stakeholders’ expectations.

    During the presentation of the 2018 budget to the National Assembly, President Muhammadu Buhari projected that the much-expected rail to link Apapa and Tin-Can Island ports would come on stream by the end of this year. This, the government said, is part of efforts to reposition the sector.

    But the stakeholders in the sector, however, said what they want in addition to what the President promised, is that the government should  formulate an holistic policy that will enable the country maximise the benefits of  its oceans, seas and water this year.

     

    Use the sea to boost economy

    The Association of Nigerian Licensed Customs Agents (ANLCA) President Prince Olayiwola Shittu said the sector needs intervention fund to boost maritime trade. The government, he said, needs to come up with a better intervention fund like they have done in the aviation, manufacturing and agriculture sectors.

    “Nigeria must emulate countries  like Britain, Rome, America, Australia, Canada, Turkey, Norway, Belgium, Greece, Singapore and India on how best to use the sea to boost the economy.

    “Seventy-six per cent of shipping business that takes place in West Africa is done in Nigeria, which means that the country is very important in the continent sea ladder. Maritime trade must, therefore, be of great interest to President Buhari and the Federal Executive Council (FEC) to boost economy. If we get intervention fund from the government and make it available to the people, millions of Nigerians would have gainful employment and that would solve a lot of problem the country is facing now and in the future,” Shittu said.

     

    Ports’ access roads

    The roads that lead to the seaports in Lagos, Warri, Onne, Port Harcourt, Calabar, and Sapele are impassable.

    These ports’access roads have not attracted the government’s attention. Those leading to the Apapa and Tin-Can Island ports in Lagos are so bad that some stakeholders have described them as a “shame to the nation”, despite efforts by the Dangote Group to fix part of the road.

    The Association of Maritime Truck Owners (AMATO) President Mr Remi Ogungbemi and other port users urged President Buhari to fix the road this year.

    “The bad roads have constituted nightmares to consignees, importers, exporters, freight forwarders and other port users who use the roads to evacuate their goods. The chaotic situation on the road is making port users spend hours daily to access or exit the terminals. The Federal Government must support the NPA in fixing the road this year.

    “Importers, truck owners and clearing agents have agreed to give President Buhari and his team the first two months of this year to fulfil part of his projected plans to fix the Apapa roads, reduce the congestion and its adverse effects on business activities at the ports before we can take the government serious on its plans to uplift the maritime industry this year,” Ogungbemi said.

     

    Addressing misnomer in the oil and gas cargoes by NPA

    At the forum organised by the Minister of Transport Rotimi Amaechi in Lagos last year, the management of the Nigerian Ports Authority (NPA) was confronted with protests by some terminal operators over the designation of a terminal operator as the exclusive handler of oil and gas cargoes.

    This, the protesters said, was against the port reforms carried out by the Federal Government in 2006. The operators insisted that the government must ensure that all ports operations are modeled in line with global best practices which recognised only three classes – bulk, container and multipurpose cargo. This, the protesters insisted, is the practice globally.

    The operators and Prince Shittu, however, gave kudos to President Muhammadu Buhari and the management of NPA for initiating last year, an impressive policy that empowered the authority to return to the three classes as it is done across the globe. Shittu and other operators, importers and clearing agents said they hope that the misnomer in the oil and gas designation which was corrected by the NPA in 2017 to enthrone competitiveness and end the unwarranted monopoly must not be allowed to resurface its ugly face this year.

     

    Inauguration of the Command & Control, Communication and Intelligence Centre by NPA

    Shittu said the unveiling of the Command & Control, Communication and Intelligence Centre by the NPA which was seen as one of the giant strides taken by the authority last year and needs to be improved upon this year to boost the government revenue.

    “The facility is a very good facility because it serves as surveillance for NPA’s activities and for security agencies.While commending the authority for the launch of the provisional, final billing and customer portal module of Revenue Invoice Management System (RIMS) to improve its service delivery and reduce revenue leakage, we hope the management of the Authority will ensure that the efficacy of the platform is not compromised

     

    Acquisition of tug boats and dedication of terminal for exports

    “The acquisition of four new tug boats – MT Daura, MT Ubima, MT Uromi and MT Majiya by the NPA was part of the good policy initiated by the authority to improve operational efficiency that must be sustained this year.

    “Ditto the development of a Standard Operating Procedure (SOP) and establishment of  a dedicated terminal to handle exports aimed at diversifying the economy and improving earnings in line with the mandate of the Federal Government. The terminals include Ikorodu Lighter Terminal for Lagos, Shoreline logistics terminal for Calabar Port and Bua Ports. This year, all the terminals must be mandated by the NPA to establish dedicated desks that will handle all documentations on export, receipt of consignment and the loading of vessels to boost the Easy of Doing Business posture of the current administration,” said, a maritime lawyer Mr DipoAlaka.

     

    Restoring investors’ confidence

    An importer, Chief Celestine Davies, said he was happy with the efforts of the authority to restore investor’s confidence in the maritime industry. “The China Harbour Engineering Company has agreed to take up 15 per cent shareholding in the Lekki Deep Seaport project. Dubai Port World also negotiated an agreement with Josepdam Port Services while the Tanger Med Port of Morocco also indicated willingness to develop a green field terminal logistic base.

    “These initiatives must be pursued by the NPA and translate into a more efficient port sector this year, so that the country achieves its vision of housing the leading port in Africa,” Chief Davies said.

     

    National single window policy

    Chief Davies also urged NPA to continue to collaborate with the Nigeria Customs Service (NCS) and Nigeria Sovereign Investment Authority to develop the operational framework of establishing the National Single Window, Ports Community System and Scanning services to address the chaotic clearance of cargoes from the port. The collaboration, the importer said, must be used by the NPA this year in simplifying and harmonising formalities that impede trade.

     

    Making more large vessel berth in Eastern Ports

    Many decades after the Eastern Ports came into being, a flat bottom ship, berthed at the Calabar Port last year. It elated importers and clearing agents. The vessel, MV’ Desert Ranger, weighing about  62,000 metric tonnes, made history as the largest ship to call at the port, despite its draft limitations. The heavy vessel, which sailed from Greece, was laden with 60,000 tonnes of wheat. The 200-metre long vessel, which called at the port after the arrival of large MV Desert Rhapsody was seen as a good omen that must not end with last year. Many importers and clearing agents operating at the Eastern ports gave kudos to the management of NPA for achieving the landmark and specifically urged its Managing Director Ms Hadiza Bala Usman to sustain the tempo this year.

     

    Concerns over ports and harbour bill

    Maritime unions are protesting some aspects of the Ports and Harbour Bill as it relates to retrenchment of staff and harbour operations being ceded to the private sector. A former member of the House of Representatives Mr Moroof Akideru-Fatai said it was good that NPA drew the union’s attention to the fact that the bill would not in any way bring about retrenchment or retirement of staff. “The Bill will  allow the NPA to concession some of its operations but it does not stipulate that harbour operation would be handed over to private company by the authority,” he said.

     

    Making the ports competitive and review of the concession agreement

    The Federal Government, through its agencies, stakeholders said, must do everything possible to make the ports competitive.

    ANLCA Publicity Secretary, Dr Kayode Farinto said: “One of the two approaches adopted by the NPA to achieving this is to have a competitive pricing and tariff regime. The agency has embarked on conducting a study to determine respective tariffs and pricing regimes across the region.

    “Also, the authority also set in motion last year, the machinery to review the concession agreements after the initial 10 years. We believe the effort is to reposition the ports by ensuring that critical issues around equipment deployment and infrastructure deployment are carried out by all parties, as entrenched in the agreement.’’

     

    Executive order and 24-hour port operation

    “The Federal Government last May issued an Executive Order on the promotion of transparency and efficiency in business and sequel to this order, government agencies, such as the NPA, NIMASA and the Shippers Council, commenced implementation of some of the directives at the ports. One of the executive orders mandated 24-hour operations at the Apapa Ports and the NPA. Some of the actions taken by the authority included Pilotage  and Berthing of Vessels on 24-hour basis.

    “We are aware that last June 18, when the Order took off, NPA’s Harbours Department handled 20 vessels after 19.00 hours at Lagos Port in the first two weeks of the commencement of 24 hours operation and we hope that the trust of the Order would not be jettisoned by the management of the authority this year. We also appeal to the government to direct other agencies and terminal operators to also make their tariffs accessible anywhere in the world like NPA.

    “Cargo dwell time (CDT), the average time a cargo remains in the terminal from the point of discharge to the point it exits the terminal, must be improved upon significantly this year. The government must support NPA and the Nigerian Shippers Council in ensuring that human contact, which breeds corruption in the seaports, airports and international land borders are eliminated to boost the campaign for 48-hour cargo clearance regime announced by the Federal Government.

    “About 90 per cent of goods are still subjected to physical examination as against use of the mobile and fixed scanners. A lot of deals devoid of transparency and integrity that are taking place at ports and international land borders must be addressed seriously by the government this year,” DrFarito said.

     

    NIMASA, security and CVFF disbursement

    Indigenous ship owners said they were sad because they had not accessed the Cabotage Vessel Finance Fund (CVFF). A member of the group, Mr Margret Orakuwsi  urged the Minister of Transport RotimiAmaechi to ensure that the money is disbursed this year to boost indigenous capacity id shipping.

    Other stakeholders said they were happy that the NIMASA Director-General Dr Dakuku Peteride brought the issue of the blue economy to the front burner. Maritime, they said, has become a key sector.

    “As an oil-producing and exporting country, as well as a consumer nation, the country is a large market for foreign goods owing to its population. Thus, the industry is key to growth.  To unlocking the potential in the sector this year, policies and programmes on blue economy by the Federal Government are vital. Although, NIMASA is  taken steps to reposition the maritime security landscape. The security of the waterways and the sea must be a key component of DrPeterside’s policy this year,” Alaka said.

    Cabotage Act, Alaka said, must be made to work in areas like the environment, lives and clean ocean.

     

    Shippers Council and intervention fund

    The Nigerian Shippers Council (NSC) needs the maximum support of the Federal and state governments to build the Truck Transit Park (TTPs) and the Inland Dry Ports (IDPs) across the country. The Council must continue with his laudable engagement of the terminal operators and other critical stakeholders to make the ports attractive and competitive.

    Its role as economic regulator transcends the position of the Federal Government on every issue relating to trade and commerce. “Shippers Council is the umpire between the government and the investors at ports. It is not biased and it must be seen to be faired to everybody this year to make the ports attractive and competitive in the sub region,”  Alaka said.

    Its Executive Secretary, Mr Hassan Bello, according to the operators, has what it takes to contribute meaningfully to reviewing the concession agreement and to carry out the reforms in our ports.

  • CBN spent N1.23tr intervention fund illegally, says Senate

    CBN spent N1.23tr intervention fund illegally, says Senate

    Senate yesterday took steps to curb alleged recklessness of the Central Bank of Nigeria (CBN) on use of intervention funds.

    The upper chamber frowned at alleged expenditure of N1.23trillion by the apex bank in 2015 without recourse to law.

    The amount, the lawmakers said, far exceeds five per cent of CBN total revenue in 2014 as provided for in Section 38 of its Act.

    This is contained in a bill sponsored by Senator Rose Oko (Cross River North) and passed for second reading yesterday.

    Senator Oko in her lead debate on the Bill entitled:  “A Bill for an Act to amend the Central Bank of Nigeria Act 2007 to ensure transparency and accountability in the operation of the bank and subject intervention advances to the approval of National Assembly,” lamented that there is no mechanism in place to monitor and track the CBN intervention funds over the years.

    She accused the apex bank of contravening relevant provisions of the constitution and the Fiscal Responsibility Act through extra-budgetary intervention to selected bodies, institutions and agencies under the guise of intervention funds.

    She added that lack of proper tracking of CBN intervention funds has made it difficult for the lawmakers to properly oversee the agency.

    According to her, many countries across the globe such as Ghana, Liberia, Tanzania, Uganda, South Africa , United States of America and others, have windows for such interventions in their economy just as the CBN programme but carried them out in line with relevant laws regulating them and through legislative approval.

    She submitted that aside the N1.23trillion spent by CBN in 2015 as intervention funds far exceeding the totality of five per cent of its revenue in 2014, it almost equal the N1.8trillion voted as capital expenditure for the 2016 budget.

    “The need to bring the CBN Act 2007 in line with provisions of Nigerian constitution by subjecting it to National Assembly scrutiny and approval has become imperative,” she said.

    She listed some of the intervention funds given out by CBN without National Assembly approval in recent time to include “ the N620 billion bailout for five banks, namely Afribank Plc, intercontinental Bank Plc, Union Bank of Nigeria, Oceanic Bank and Finbank Plc, varrious donations to tertiary institution running into several billions; the N300 billion bailout to states drawn from $2.1 billion NLNG’s taxes and dividends to pay salaries.

  • Miners await disbursement criteria for N30b intervention fund

    Miners await disbursement criteria for N30b intervention fund

    Miners under the aegis of the Miners Association of Nigeria have called on the Federal Government to state how it will disburse the N30 billion Mining Intervention Fund released in 2016 for exploration.

    The association’s National Secretary, Mr. Dele Ayanleke, told newsmen in Abuja,that the government would release the criteria and that miners would be involved in the fund’s disbursement.

    Ayanleke recalled that some years back, the World Bank released funds for the mining sector, but they were used for other purposes. He said  2016 was a year full of challenges for miners. According to him, some were attacked and killed during mining. Illegal miners also hampered mining.

    Ayanleke said the Mines Inspectorate Department of the Ministry of Solid Minerals saddled with  monitoring mine sites was incapacitated by lack of funds.

    According to him, the department was willing to work, but lacked empowerment to conduct their oversight functions and to monitor mining sites to know what challenges miners were facing on fields.

    He called on government to provide infrastructure such as access roads and electricity to all mining sites to lessen the burden on miners.

    “Government is meant to construct roads to all mining sites across the country because it is their primary responsibility to do so and miners are to provide educational and health facilities to their host communities,” Ayanleke said.

    He, however, said that the association achieved a huge success in its maiden mining week organised last year.

    A barite miner, Mr. Patrick Odiegwu, also called on government to support miners with mining equipment to ease minerals exploration, adding that lack of equipment had made miners to operate on small scale.

    He said if mining continues on small scale, government would not be able to achieve its diversification plan through the sector.

    “We need world class mining equipment if government wants to diversify the economy through mining sector; no miner can afford to buy one equipment worth N600 million.

  • Senate to probe N213b power intervention fund disbursement

    Senate to probe N213b power intervention fund disbursement

    Senate President Abubakar Bukola Saraki has asked the Senate Committee on Power, Steel Development and Metallurgy to initiate immediate public hearing into the country’s deteriorating electricity generation.

    Electricity generation is said to hover at 3000 megawatts (MW).

    The hearing is to confirm and ascertain claims of non-remittance of funds among the Nigeria Bulk Electricity Trading Company (NBET), Electricity Distribution Companies (Discos) and Generation Companies (Gencos).

    The committee is also to investigate how the Central Bank of Nigeria (CBN) paid the N213 billion intervention funds to the power sector and the usage of the funds.

    The Senate President gave the mandate at the weekend at a stakeholders’ meeting aimed at finding answers to the dwindling electricity generation in the country.

    Saraki said the committee should also consider the role of the Bureau of Public Enterprises (BPE), whose officials serve as board members in the Discos and Gencos.

    He expressed displeasure with the poor electricity supply, especially its negative impact on growth and the need to pull out the country out of economic recession.

    He feared total collapse of the country’s electricity system, if urgent steps were not immediately taken to remedy the situation.

    Permanent Secretary of the Federal Ministry of Power, Works and Housing Mr. Louis Edozien, who led the stakeholders to the meeting, lamented that power generation has gone down to 3000MW/H from a 7000MW/H generating capacity with a 12000MW/H connected load.

    Discos, Edozien said, are presently remitting about 45 per cent of collectable revenue instead of the performance agreement target of 65 per cent.

  • BoI wins LCCI laurels for intervention fund

    BoI wins LCCI laurels for intervention fund

    •Applauded by filmmakers on review of NollyFund

    Bank of Industry (BoI) has won the award for Best Industry Support through Intervention Funds at the 2016 LCCI Commerce and Industry Awards organised by the Lagos Chamber of Commerce and Industry.

    The annual LCCI Awards recognises and promotes deserving corporate organisations and institutions in both the public and private sectors who have exhibited the core values of best business practices, good corporate governance, sustainability, and contribution to the development of commerce and industry in different sectors of the Nigerian economy.

    Among many feats attained by BoI in this regard includes project NollyFund, a creative non-oil sector scheme that has, so far, produced five films, including KunleAfolayan’s much publicized The CEO; The Three Wise Men by Opa Williams; Amina by OkeyOgunjiofor and Anyama by EmemIsong.

    This is aside the bank’s current successful intervention is the N10 billion Youth Entrepreneurship Support (YES) Programme that is designed to address youth unemployment in Nigeria. The scheme has earned the bank considerable accolades both domestically and internationally. Within six weeks of the online business ideas completion, almost 40,000 entries were received, with at least 10,000 beneficiaries expected to emerge within the first year of the Programme.

    Meanwhile, filmmakers have been pouring encomiums on the bank over a recent favourable review of the terms of the NollyFund loan.

    “We are happy to confirm that BOI Nollyfund Product has been further reviewed:

    1) Advisory Fee of N2Million has been waived. 2) Deposit of N2Million by Distribution Companies has been waived. 3) Interest rate is 10% p.a. We shall continue to work with stakeholders to build an amiable industry in Nigeria. Thank you all for the support and feedback,” announced Mrs. UcheNwuka, Head of the Creative Desk at BoI.

    An industry stakeholder and Special Adviser to former Director General of National Film and Video Censors Board (NFVCB), Mr. Emeka Mba, Mr. Obiora Chukumba, says of the development: “Good step @ Uche. Anything and everything necessary to stimulate greater interest of practitioners and investors in creating bankable businesses in Nollywood is always a win-win.”

    For Alex Eyengho, President of Association of Nollywood Core Producers (ANCOP), who had harped on the need for such favourable review, it is “Thanks to the BoI team (Mrs. Uche, Mr. OkeyMadu et al) for being a listening and responsive partner in progress.”

    Also thanking BOI, Mr. OsezuahImobhio, president of Independent Television Practitioners of Nigeria (ITPAN) said; “On behalf of our members (ITPAN) I must say a big thank you to BoI, Uche and her amiable team for working effortlessly towards making things much better for the independent producers. More grease to your elbow.”

    Giving more cheerful news, Nwukasaid BOI is already working on a single digit proposal of between one and nine percent interest rate.

    “This is the best news by far of today! God keep you as you are doing the best for the industry…cheers to you and the team @BOI!” said another filmmaker, Justin Morgan, on Tuesday.

  • On the proposed National (Emergency) Intervention Fund

    On the proposed National (Emergency) Intervention Fund

    The Committee on Devolution of the National Conference has submitted to the Conference a recommendation that a National Intervention Fund be established for the ‘stabilisation, rehabilitation and reconstruction of areas affected by terrorism and insurgency’, specifically in the North East, North Central and North West in the first instance, and any other part of the country where such intervention might be needed in future.

    The draft of the recommendation was carefully crafted by its sponsors to allay fears that it favours the North. But it does and, understandably, there have been some strong objections from delegates from the South-South to the proposal on the grounds that the Fund, when established, should instead be national in scope and execution, and not confined to some parts of the North, even in the first instance as specified by the sponsors of the proposal.

    This objection is real and should not be dismissed. It is no doubt a reflection of the deep ethnic and regional mistrust that continues to dominate Nigeria’s politics, and which makes it difficult for a consensus to emerge on any critical national issue. In this particular case, opposition to the proposal in the South is based on the fear that the South is again being short-changed by being called upon to pay for the lack of economic development in the North, the result of decades of economic mismanagement by its leaders. This deep and lingering mistrust between the North and South divide in Nigeria needs to be addressed and allayed for a consensus to emerge at the Conference on this critical issue of a National Intervention Fund. A consensus has emerged at the Conference for a five per cent increase in statutory allocation from 13 per cent to 18 per cent to the oil producing states from the federation accounts. Most Southern delegates now feel that the proposed five per cent increase in federal spending in the specified Northern states is intended to recover through the back door the proposed increased allocation to the oil bearing states in the South-South from the federation accounts which, on its own, has considerable merits.

    But the motive of those calling for this Fund should not be questioned even if it is intended for the rehabilitation of vast swathes of Northern Nigeria badly affected by the Boko Haram insurgency in which properties and lives have been destroyed, and thousands of people displaced. Even without the insurgency, Northern Nigeria needs more financial and material resources badly to make any economic progress at all, and to reduce the growing economic inequalities between the two halves of the country. When Lord Lugard ‘amalgamated’ Northern and Southern Nigeria in 1914, he admitted that it was largely for economic reasons. It was intended to pay for the administration of the vast Northern colonial territory. But despite the amalgamation, the North has remained economically backward when compared to the South. Yet, in land area, Northern Nigeria constitutes nearly two thirds of Nigeria. Because of its huge size, the North is of overriding political and economic importance to Nigeria. It cannot be ignored and the rest of the country must do all it can to assist the region to develop faster. Economic disparities between the North and South will not promote national unity. It is divisive and cannot be ignored. Nigeria cannot fully achieve its great economic potentials without special attention being paid to the peculiar economic circumstances in Northern Nigeria that have made it less developed than Southern Nigeria. The North has to be dragged along willy- nilly.

    The current Boko Haram insurgency in the North is a direct consequence of this economic divide after decades of economic neglect of the region by its own leaders. The mass poverty in the North was brought about largely by its leaders. This economic neglect is a major source of social and political instability in the region. But something concrete has to be done by way of increased material assistance to the region, even if such assistance represents a financial sacrifice by the other parts of the country. Poverty breeds religious extremism, bigotry, violence and social disorder. The insurgency in the North is more political than religious, as the insurgents attack both Muslims and Christians without any discrimination between the two. It is a rebellion against widespread poverty and social injustice, more prevalent in Northern Nigeria than in other parts of the country. This is why there is some support for the insurgency, particularly among the poor in the region. The primary objective of the insurgency is to discredit and destroy the existing social and political order in Northern Nigeria, which has tended on the whole to increase mass poverty in the region. A poor North will reinforce the regional division in the country and will make national integration more difficult to achieve.

    The insurgency, now spreading beyond the northern fringes of Northern Nigeria, to the heart of the nation in Abuja, will not be deterred by military means alone. This is becoming more and more evident as the military has admitted that it cannot cope with this kind of insurgency for which it is ill-prepared and poorly equipped. The Federal Government is seeking a foreign loan of $1 billion to beef up its security forces. To counter the insurgency, the nation needs a more mobile military that can respond more swiftly to security threats in any part of the country. The Nigerian military is too static to cope with the danger presented by the insurgents. But even a more mobile military will not necessarily solve the problem of insurgency in the North. It will only end when the unemployed youths in Northern Nigeria are given alternative economic opportunities that will make the moral assertions of the insurgents less attractive to them. In fact, the insurgency is now fully embedded in civil societies in the region, drawing its support from unemployed and ignorant youths, including women suicide bombers. In recent weeks, we have had suicide bombings in places such as Kano, Kaduna and Abuja that were previously thought to be safe. This is new and shows that we are now faced with a violent social phenomenon that requires large doses of material resources to resolve. This is why the proposed intervention fund is a step in the right direction.

    However, there are some flaws in the proposal that need to be addressed by its sponsors for it to secure wider support at the Conference. First, it is proposed that the five percent additional federal spending in the designated states, over N200 billion, is to be drawn from the budget of the Federal Government, and not the federation accounts. Funds should not be taken from the federation accounts to address regional problems. This is certainly fair, as the Federal Government has exclusive responsibility for law and order in the country. But the fact of the matter is that the Federal Government lacks the financial resources to meet this additional financial burden. The Federal Government is currently running a large deficit budget dominated by recurrent expenditure rather than capital expenditure. The proposed intervention fund will reduce funds available for capital expenditure which, over the years, has been falling steadily. The Federal Government will be hard put to execute vital capital projects if it is now required to spend five per cent of its budget in the rehabilitation of the designated states.

    Secondly, the proposed intervention Fund will command wider national support if it does not designate any particular states, even if it is only for five years in the first instance. The Fund should be made applicable to all states and parts of Nigeria that require rehabilitation. Such intervention funds already exist in the Delta region to compensate its people for the vast ecological degradation taking place there. It would be far better to leave the proposed Intervention Fund to the discretion of the Federal Government, and not make it mandatory.

    Thirdly, as it stands, the Fund derogates from the powers of the Federal Government as well as the Revenue Allocation Committee to share the national revenue on agreed basis. It will require an amendment of the Constitution for its implementation. It cannot be applied as a mere administrative measure by the Federal Government, even if the funds involved are going to be drawn from the federal budget. It is doubtful that it will secure the necessary support if taken to the National Assembly for passage. The history and record of special intervention funds in Nigeria is a sad one. There are several examples of this, such as the subsidy removal fund (SURE-P) that has simply been diverted to other purposes. These flaws will need to be addressed for the proposed Fund to generate any widespread support, or even enthusiasm.

  • FG establishes power sector intervention fund

    FG establishes power sector intervention fund

    The Federal Government on Monday approved the establishment of Power Sector Intervention Fund with initial deposit of N300 billion to facilitate speedy development of the nation’s power sector.

    President Goodluck Jonathan made this known at an International Conference on Power Sector and Infrastructure Financing at the Presidential Banquet hall, Abuja.

    Jonathan, represented by Vice President Namadi Sambo, said that the setting up of the fund would enable industry players have access to cheap long term funds.

    “To enable industry players have access to cheap long term funds, government is hereby setting up a “Power Sector Intervention Fund”.

    “The financial resources for this special Fund will be pooled from the Federal Government, Development Financial Institutions (DFIs) as well as local and global and financial partners.

    “The Coordinating Minister for the Economy will give details of the operational structure of the fund. But, will essentially, provide avoidable refinancing and unlending services to the sector.

    “On its part, the Federal Government will make initial deposit of N300 billion.”

    Jonathan noted that under the National Integrated Infrastructure Master Plan about 2.9 trillion dollars was needed for infrastructure development efforts between 2014 and 2045.

    He said the energy sector alone needed about 900 billion dollars in the next 30 years, saying that a significant percentage of the amount was expected to come from the private sector.

    The president said that the power sector alone needed 10 billion dollars for Generation and Distribution companies to meet the target of additional 5,000 megawatts in the next few years.

    According to him, the nation’s transmission grid requires an annual investment of about 1.5 billion dollars for the next five years to ensure its reliability and stability.

    Jonathan challenged participants to come up with practical funding strategies and help to facilitate the unlocking of the much needed capital for the infrastructural development in the country.

    He said already the Transmission Company of Nigeria (TCN) had commenced the aggressive implementation of the expansion blueprint funded by a mix of appropriation and funds from financial and multilateral institutions.