The Nation Newspaper

Tag: licences

  • Govt begins issuance of mining licences online

    The Federal Government (FG) has launched a portal through which investors can apply and acquire mining licences and permits.

    Minister of Mines and Steel Development, Dr Kayode Fayemi who stated this, said the portal will also handle mineral titles’ application, online payment of royalties & fees, and adatabase for revenue drive.

    He said the project goal is to increase provision of reliable information and knowledge to enhance promotion of investment in the sector using technology driven innovation.

    Fayemi who spoke yesterday in Abuja at the Unveiling of the Integrated Automation and Interactive GIS Web Portal said: “ The overall objective of the project is to increase provision of reliable information and knowledge to enhance promotion of investment in the sector using technology driven innovation. This would in turn help increase the sector’s GDP contribution significantly.

  • Time out!

    •At last, FG withdraws would-be refinery investors’ licences 10 years after

    With nothing to show more than 10 years after handing out the first batch of refinery licences to would-be investors, the Federal Government may have settled on wielding the big stick. At the sidelines of the just-concluded Offshore Technology Conference (OTC) in Texas, United States, Minister of State for Petroleum Resources, Ibe Kachikwu, stated that he had directed the Department of Petroleum Resources (DPR) to ensure the withdrawal of the expired licences immediately. In all, some 25 out of a total of 32 licences said to have exceeded the two-year grace given them by the agency to commence the production of petroleum products are said to be affected.

    While this latest twist was expected, playing the Pontius Pilate as the Federal Government is wont to do in this instance is, quite frankly, opportunistic. To start with, if we understood the business of refining crude petroleum to be a high-tech, highly capital intensive affair, the all-comers affair under which entities that would ordinarily not have emerged as serious contenders in the fuel marketing chain were awarded licences to build refineries, would pass for unspeakable.

    While that represents one side of the matter, the other side is that the Federal Government not only went to sleep after farming out the licences, it also failed to take into consideration the concerns of the hitherto knowledgeable players in the industry – a factor largely blamed for their decision to stay clear.

    Today, we must admit that the terrains have changed considerably from what it was some 10 years ago. One indication is that the issue of cost recovery and the debate on subsidy that it spawned – a major pillar of liberalisation – is certainly far less acrimonious than it was 10 years ago. For, as painful as the last fuel price hike was, a consensus that somewhat emerged was that the old regime of subsidy and its associated corruption is neither sustainable nor desirable any longer.

    That Dangote refinery is pushing aggressively towards the realisation of its 650,000 barrels per day (bpd) refinery has since shifted the debate from whether it is doable to one of how to get it done. This is where the failure to turn the sod would appear to suggest that the licencees have a far lot more to learn about the business than they are willing to admit. We therefore think the Federal Government is right to seek to close the chapter. Part of that would of course mean pushing more aggressively to bring serious investors on board.

    That is why we welcome the announcement by Kachikwu of the decision by Agip to build a 150,000 bpd refinery in Port Harcourt. That, were it to happen, would be a major boost not just to the current efforts towards local sufficiency in refined products but also in the area of deepening the government’s liberalisation efforts. Considering that the decision is strictly a business one, we would have expected the announcement to have come from Agip rather than the minister. All the same, Nigerians cannot wait to see it happen.

    Even at that, nothing in the signal by Agip makes the process a done deal. Indeed, if there is lesson that the matter of botched licences has taught, it is that nothing can be taken for granted.  Government’s responsibility is to continually engage the would-be investors until the final investment decisions are made. It is about time Nigeria began to harness its vast oil reserves and endowment in natural harbors to become a global leader in refining.

  • NAFDAC, SON to fast-track grant of licences, approvals

    NAFDAC, SON to fast-track grant of licences, approvals

    The National Agency For Food, Drugs Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON), have undertaken to grant licenses and approvals to Small and Medium Scale Enterprises (SMEs) within 90 days,

    They gave the commitment to the Acting President, Yemi Osinbajo, during a follow-up meeting he had with the Abia State Governor Okezie Ikpeazu, and SMEs stakeholders from the state and some Federal Government regulatory agencies in Abuja.

    Osinbajo had called on the  government’s regulatory agencies to act as catalysts of beneficial change and to take responsibility for facilitating businesses in the country. “We must see ourselves as agents of some catalytic change, we must take some responsibility to make profound changes possible,” Osinbajo told regulatory agencies, according to a statement endorsed by the Senior Special Assistant on Media & Publicity to the President Office of the Vice President, Laolu Akande.

    The Acting President had visited Aba to kick-off the Presidency’s MSMES Clinics where medium and small scale businesses are brought together in one spot with Federal Government regulatory agencies they interface with.

    At the meeting, also attended by the Industry, Trade and Investment Minister-Dr. Okey Enelamah, and the Minister of State in the ministry, Mrs. Aisha Abubakar, the Acting President directed both NAFDAC and SON to give specific timelines within which they would grant licences and approvals required of them by business interests.

    SON Director-General, Mr. Aboloma Osita, who attended the meeting announced that within 60 days,  the agency will issue required approvals, while the Acting Director-General of NAFDAC, Mrs. Yetunde Oni also said within 90 days the agency would issue all required licenses.

    Both officials said the timing starts from the day the requests are submitted.

    According to the Acting President, regulatory agencies such as NAFDAC and SON would be judged by how many people, businesses they are able to support “to achieve the greatest public good.”

    He commended the Abia State governor for his drive, adding that ‘Made-in-Aba’ products are now acquiring a mark of quality.

    Said he: “like I said during my visit to Aba, you can’t have any serious kind of industrialisation in this country, without a focus on Aba.”

    He also met with the Governors of Cross Rivers, Senator Ben Ayade; Akwa Ibom, Mr. Emmanuel Udom and Ebonyi State, Mr. Dave Umahi, alongside top officials of the National Boundary Commission, led by the Director-General, Dr. Muhammad Ahmad, to review updates on boundary  and boundary demarcation issues.

     

  • ‘Withdraw licences of lawyers who abuse judicial process’

    ‘Withdraw licences of lawyers who abuse judicial process’

    Lawyers who deliberately abuse the judicial process by employing delay tactics should have their practice licences withdrawn, a Senior Advocate of Nigeria (SAN), Kemi Balogun, has said.

    According to him, several cases are delayed by lawyers who file frivolous applications even when they know they are on the wrong side of the law.

    Balogun said such practice, which to him amounts to misconduct, has persisted because perpetrators have not been sanctioned to serve as deterrent to others.

    “Some of us view it (deliberate delays) as misconduct. In other climes, the licences of such ones will be seized. The moment lawyers get disciplined, legal practice will be better, and the economy will be better for it” he said.

    Balogun, who chairs the Law Week Committee of the Nigerian Bar Association (NBA), Lagos Branch, spoke in Lagos at a briefing on the event to hold from October 5 to 8, with the theme: Judicial Independence and the Democratic Process.

    According to him, some foreign investors avoid Nigeria because of how long it takes to resolve commercial disputes.

    The SAN recalled that an investor took a multi-million dollar investment to another African country where cases are decided in less than five years, unlike Nigeria where he said cases last up to 15 or more.

    Balogun said the law week’s opening ceremony would be chaired by former Supreme Court Justice, George Oguntade. Former NBA president Olisa Agbakoba (SAN) will give the keynote address, while there will be technical and breakout sessions featuring over 10 SANs and other experts.

    On why the theme was chosen, Balogun said: “The theme is especially germane in light of perceived assault on judicial independence and the deleterious impact such anomaly may have on our nascent democracy.”

     

  • NACCIMA lauds CBN for money transfer licences

    NACCIMA lauds CBN for money transfer licences

    The Nigerian Association of Chamber of Commerce Industry, Mines and Agriculture (NACCIMA) has lauded the Central Bank of Nigeria (CBN) for licensing 11 more International Money Transfer Operators (IMTOs)  in the country.

    This, it said, was a part of efforts to liberalise the foreign exchange (forex) market, ensure liquidity and make forex available.

    Its President, Dr. Bassey E. O. Edem, said the policy was a step in the right direction in ensuring that remittances from the Diaspora remained a viable source of forex for the economy.

    He advised the apex bank to reconsider its stance in its earlier circular, where it stated that IMTOs were required to remit their foreign currencies to their agent banks in Nigeria for disbursement in naira to the beneficiaries while the foreign currencies’ proceeds were to be sold to Bureaux De Change operators for onward retail to end users.

    NACCIMA, he said, believes the policy would create room for sharp practices within the forex parallel market. He advised that the beneficiaries of foreign currencies’ proceeds be allowed to determine when they would sell their proceeds and at what rate.

    According to him, this would create a situation of multiple suppliers and sellers to meet the demand in the parallel market and reduce the pressure on the inter-bank window.

  • ‘More infrastructure licences coming’

    ‘More infrastructure licences coming’

    The Nigerian Communications Commission (NCC) has said it will license more broadband operators to complement existing ones in order to achieve the 30 per cent broadband penetration target of the Federal Government as enshrined in its National Broadband Plan (NBP).

    Its CEO, Prof Umar Dambatta, who spoke at MUSON Centre, Lagos, during the Building Industry Consulting Service International (BICSI) annual Middle East and Africa (MEA) Conference and Exhibition, said part of the plan of the Commission was to complete the licensing of infrastructure providers (Infracos), adding that two operators have been licensed to offer services in Lagos and \northcentral Zone under Phase 1 licensing round.

    Represented by NCC Director of Technical Standard and Network Integrity, Mr Fidelis Onah, he said availability of infrastructure remained the backbone for affordable, reliable and ubiquitous broadband services across the country.

    He said the commission was already putting in place the required infrastructure to accelerate broadband penetration.

    He said: “The NCC will continue to drive and support high speed connectivity and infrastructure which is the bedrock of ICT growth and development to end users through initiative such as license Infracos on a regional basis to provide fibre and wholesale transmission services on a non-discriminatory, open access and price regulated basis. Phase 2 licensing of Infracos for the remaining five geopolitical zones will commence soon. NCC will create an enabling environment for easy and efficient deployment of fibre optics transmission network; continue ongoing talks and discussions with various levels of government to facilitate speed in the processing of permits, harmonisation of tax regimes and ease of deployment of infrastructure including right of way charges; enhance competition in the market and improving consumer choices; classification of telecoms infrastructure as Critical National Infrastructure.

    “The mobile revolution is still ongoing. The broadband revolution is about to commence; the solid metro and backbone ICT infrastructure required to carry and sustain the huge amount of data to be generated is already being planned to be put in place.

    “This will yield the growth, development and increase in GDP that is necessary for Nigeria to take her place in the league of ICT savvy nations.”

    He said it took effective distribution of infrastructure to have services permeate all nooks and crannies of the country.

  • CBN okays 2,998 BDCs’ licences

    CBN okays 2,998 BDCs’ licences

    The operating licences for 2,998 Bureaux de Change (BDCs) that met the N35 million mandatory capital base have been confirmed by the Central Bank of Nigeria (CBN).

    The number, up by 34 from the previous approval, wass in line with the bank’s plan to deepen the foreign exchange market by getting more BDCs involved in the retail end of the market, ahead of the implementation of its newly introduced flexible exchange rate policy.

    Prior to the confirmation, 2,964 BDCs were operating.

    The data, released by the bank at the weekend, showed that 34 BDCs recapitalised in the last three months, bringing the total number of operators to 2,998.

    The CBN has also refunded nearly the N100 billion mandatory caution deposits to all the BDCs, after it stopped operators from accessing forex from official windows.  Each licenced BDC got N35 million.

    A circular by CBN’s Director, Financial Policy & Regulation, Kelvin Amugo, said the decision followed  developments in the in BDCs’operations in the economy, prompting the apex bank to refund the mandatory caution deposit of N35 million each to all registered BDC operators.

    He however, said the regulator will retain the N1 million licencing fee paid by each of the operators. Amugo urged all eligible BDCs to apply for refund of their caution deposit, attaching evidence of payment and bank transfer details.

    The CBN also spoke of a plan to reopen the banks’ dollar window, shut earlier in the year, for the licenced BDCs.

    Reacting, President, Association of Bureau De Change Operator of Nigeria (ABCON), Aminu Gwadabe described the cash refund as a welcome development.

    He described the development as an indication that the CBN has finally shut its doors to the BDCs. He said since the caution deposit was to enable operators’ access the official forex window, the stoppage of dollar sales to BDCs by the CBN means the fund should be refunded.

  • NAICOM’s operational licences delay worries stakeholders

    NAICOM’s operational licences delay worries stakeholders

    About one year after the National Insurance Commission (NAICOM) published names of potential brokers and an insurance company in the national dailies, the Commission is yet to grant many of them operating licences to carry out insurance services in the country.

    The delay has sparked agitations amongst the affected stakeholders and experts who fear the regulatory body has closed the insurance market from keen investors.

    The potential brokers’ names published shortly before the exit of the former Commissioner for Insurance, Fola Daniel from office, named 18 brokerage firms and an insurance company that had sought licences to operate in broking and underwriting capacities. The publication precisely was on June 29, 2015. The commission asked the general public in the publication to raise objections on any reason why they should not be granted operational licences.

    “The general public is hereby put on notice that the under listed firms have applied to obtain operating licences from the NAICOM to transact business as insurance brokers and company respectively. In accordance with extant laws, members of the public are requested to notify NAICOM within 21 days of this publication, either in writing or through the call centre numbers stating any objection or reason why any of the firms should not be registered or granted operating licence,” NAICOM said in the publication.

    But 21 days has since passed, and almost one year after, the commission has not indicated receipt of irregularities against these companies. While the commission is yet to license the only insurance company, Heirs Insurance Limited on the list, it has given licence to seven broking firms including Stanbic IBTC Insurance Brokers, a subsidiary of Stanbic IBTC Bank Plc, RSM Insurance Broker, Riskbridge Brokers, Titan Brokers, BI-Meck Brokers, Tespaurath Brokers and Hiscover brokers.

    The brokerage firms on the waiting list are Elohim Insurance brokers, Okikiaje Insurance Brokers, Destiny Insurance Brokers, Date Palm Brokers, Green Pacific brokers, LMC Brokers, Avenues Brokers, Topflight Brokers, Eleazar brokers, Banksome Brokers, and ARU & Jay Brokers.

    Meanwhile, some industry observers who express worry over the development said some of the investors yet to be granted licence have huge potentials that can turnaround the insurance market.

    For instance, an observer who does not want his name mentioned said Heirs Insurance is a potential market developer. It is a fully-owned subsidiary of the Heirs Holdings Group, owned by Chairman of UBA, Tony Elumelu. It is managed by professionals with experience in banking, law, business strategy, insurance and risk management.Heirs specialises in investing in Africa and already have investment in the health sector, agri business, real estate and hospitality, oil and gas, power and the financial services sector.

    He stated that with an industry that barely recorded shareholders fund of N349.4 billion, gross premium of N30.5 billion, assets of N838.6 billion, insurance penetration at 0.3 per cent, density at 10 with global ranking at 61, there is need for NAICOM to allow fresh and big investors to come in.

    Another industry observer said there is  large untapped market in the industry that can increase insurance penetration. He urged NAICOM to encourage new perspective to drive penetration and create more awareness in the country.

    He noted that before NAICOM got to the level of publishing names of potential companies, it would have carried out all checks especially financial and security checks.

    He said: “Names of companies seeking operational licences were published by NAICOM in case there was any objection from the public. Presently, the Commission has been silent and has not disclosed that it received any report on them from the public.

    “It is 11 months now and I think NAICOM should make its intentions about the rest of companies known. Some of these companies have the potential to turnaround the market and they should be granted license to operate.”

  • Mining licences renewal fetches Fed Govt over N500m

    As the 30-day ultimatum given to owners of dormant mining licences to renew them elapses today, the Federal Government has made over N500million from the renewal of the licences.

    More than half of the owners of the dormant licences published for revocation have for the past few days been rushing to beat the deadline to avoid losing the licences.

    The Minister of Solid Minerals Development, Dr. Kayode Fayemi, had over a month ago warned that government was set to revoke over 1,500 mining licences and leases on account of dormancy.

    According to a source in the ministry, Nigeria has been losing a lot of money from the non operation of the licences and about 8,000 jobs have not being created as a result of it.

    The source said: “As the revocation deadline drew near, a lot of people have been rushing over to renew their licences.

    “Over N500million has  so far been raised so far from dormant licence owners coming to renew their licences which is good for the country. These dormant leases were just sitting there and not generating any revenue for the country.

    “The truth is that if these licences were active, it would have created about 8,000 jobs which were not there because the licences were dormant. But with the re-activation of these licences, jobs will be created in the industry.”

  • DPR denies withdrawing private licences

    DPR denies withdrawing private licences

    The Department of Petroleum Resources (DPR) has denied withdrawing licences for private refineries.

    The DPR, in a statement yesterday, said: “In line with our commitment to entrench transparency in oil and gas regulation, we wish to make the following observations about private refineries: There are three stages of licensing for establishment of private refineries in Nigeria namely; Licence to Establish (LTE), Approval to Construct (ATC) and Licence to Operate (LTO).

    “DPR granted LTE to 21 companies with a validity period of 18 months in 2002. In 2004, 17 of the earlier LTE were granted ATC for a 24-month validity period.”

    The department said in 2007, it reviewed the existing guidelines and a new guiding document, “Guidelines for the Establishment of Hydrocarbon Processing Plants in Nigeria”, was introduced to ensure that only committed investors were licensed.

    Based on these guidelines, there were 25 private refinery licences granted to companies with 21 in the Licence to Establish (LTE) category, while four in the Approval to Construct (ATC) category, the statement said.

    The DPR added that three of the 25 licensed companies were billed to construct conventional stick-build plants and 22 to construct modular units with a proposed combined refining capacity of 1,429,000 barrels per day (bpd).

    “The public and stakeholders are assured that DPR has not withdrawn the licence of any private refinery. Rather, the department is in alignment with government’s aspiration of improving Nigeria’s refining capacity by strengthening its oversight function of the petroleum sector in Nigeria,” it said.