The Nation Newspaper

Tag: Proposed

  • Cautious optimism over proposed ban on palm oil import

    Cautious optimism over proposed ban on palm oil import

    Prompted by the need to boost local production and halt the huge import bill for palm oil, valued  at N116.3 billion in 2017, the National Assembly has renewed the push to ban the importation of palm oil and its allied products. It is envisaged that this will conserve foreign exchange, create jobs and boost the economic diversification push. However, with palm oil refineries operating at 30 per cent installed capacity, there are fears that without first addressing the product’s demand/supply gap, the proposed ban will amount to putting the cart before the horse, Assistant Editor CHIKODI OKEREOCHA reports.

    The Senate, has renewed the call to ban the importation of palm oil and its allied products. It came at an auspicious time, which was, perhaps, why it enjoyed an overwhelming support of members of the Upper Chamber of the National Assembly and, indeed, operators and stakeholders in the palm oil value chain.

    Although the fresh push to ban the importation of the product came at a time the Federal Government’s diversification agenda, anchored on increased agricultural production and export, was gathering momentum, the move has come under scrutiny by some experts and critical stakeholders.

    Some of them, who spoke with The Nation, described the proposed ban as a welcome development. They were, however, quick to point out that at the 30 per cent installed capacity of the crude palm oil refineries, banning the importation of the product without first addressing its demand/supply gap would be tantamount to putting the cart before the horse

    For instance, the General Manager, External Affairs, PZ Cussons Nigeria Plc, Mr. Muhammed Tahir, said he supports the move to ban the importation of palm oil into the country as this would boost local production. He, however, told The Nation that at present, the crude palm oil refineries operate at about 30 per cent installed capacity.

    The implication of this, he said, was that there was the need to ramp up local production by addressing the issues around the supply of crude palm oil to the refineries. According to him, at 30 per cent installed capacity, the refineries cannot meet demand by individual and industrial users. To him, addressing the demand and supply gap for palm oil is important before banning its import.

    The upper chamber of the National Assembly, recently started fresh move to ban the import of palm oil and its allied products. Waxing patriotic, Senator Francis Alimikhena of the All Progressives Congress (APC), Edo State, said the importation of the product was a threat to the government’s campaign on diversification.

    The lawmaker, who sponsored the motion, titled: “Urgent need to halt the importation of palm oil and its allied products to protect palm oil industry in Nigeria” and also led the debate, recalled with nostalgia that Nigeria, before the 1970s, was a global powerhouse in palm oil production and export.

    Alimikhena, however, lamented that the country lost her leadership position in the global palm oil trade, forcing her to import about 450, 000 tons of palm oil to the tune of N116.3 billion in 2017 alone. He, therefore, insisted that the government must reverse this trend.

    The lawmaker was right. Nigeria was the world leading producer of palm oil in the 1950s and mid-1960s. She was reportedly supplying about 645,000 Metric Tons (MT) of palm oil yearly to markets across the world and boasting an enviable global market share of about 43 per cent.

    Palm oil alone accounted for 80 per cent of Nigeria’s export earnings. It also created millions of direct and indirect employment opportunities for Nigerians. Malaysia, one of the Asian emerging markets, was even said to have obtained the oil palm seedling with which she built her thriving oil palm business from Nigeria.

    Although the Asian Tiger has since refuted this claim, it, nonetheless, underscored Nigeria’s towering status and visibility in the global palm oil industry. Curiously, from controlling over 40 per cent market share, Nigeria has since lost her grip on the business. She  accounts for a paltry seven per cent of total output.

    Malaysia and Indonesia have since surpassed Nigeria as world’s leading palm oil producers and exporters, retaining the second and first position, respectively. Sadly, Nigeria, as at 2016, fell to an unenviable fifth position.

    While Indonesia produces 32 million tons of palm oil, Malaysia boasts 17.7 million tons. And they have been exporting palm oil products to Nigeria. The country, which was once the bride of the international palm oil business, is now a net importer of palm oil to meet her growing domestic demand.

    Africa’s largest economy has between 450, 000 and 500, 000 tons annual palm oil supply shortage, made up of about 300, 000 tons of Technical Palm Oil (TPO) for the production of soap and about 200, 000 tons of Special Palm Oil (SPO) used in the food industry.

    The fact that much of these are  being met through imports, with the attendant humongous loss to Nigeria in foreign exchange is something Alimikhena and, indeed, other concerned stakeholders cannot comprehend hence the current wave of campaign to reverse the trend.

     

    Private operators support ban

    This time, the public sector (Senate) is in the vanguard of the renewed push to return Nigeria to its glory in palm oil production and export. However, the imperative of repositioning the sector to contribute to diversification is not lost on the private sector, which includes farmers, refinery operators and companies that utilise palm oil as raw material for production.

    To them, the proposed ban bode well with the private sector’s age-long agitation to embrace the Backward Integration Policy (BIP) to encourage local production and ultimately, create jobs and conserve foreign exchange. This was why, for instance, the Plantation Owners Forum of Nigeria (POFN) has thrown its weight behind the move.

    The Forum through its Executive Secretary, Mr. Fatai Afolabi, said the Senate’s move deserved the commendation and support of all Nigerians. According to him, the importation of palm oil and allied palm products were threats to Federal Government’s campaign on diversification of the economy through increased agricultural production and exports.

    Afolabi was particularly peeved that Nigeria, which once held sway in palm oil production and export, imported about 450,000 tons of the product valued at N116.3 billion last year. He, therefore, urged the Federal Government to halt the importation in order to boost local production.

    As far as POFN and indeed, other private sector operators are concerned, Nigeria has no reason spending scarce resources importing the product when Mother Nature has strategically positioned her to call the shot in global palm oil production and export.

    For one, Nigeria and indeed, most parts of Africa, especially West Africa, lie in the world’s oil palm belt – a region which produces the best results for oil palm plantations. Also, she was, and is still, endowed with enormous human resources and fertile arable land to support large scale cultivation of palm oil.

    According to experts, Nigeria’s all-year-round hot weather, a lot of sunshine, abundant rain, rich, deep, flat and permeable soil, among others, are some of the features that make Nigeria most suitable for cultivation of oil palm plantations.

    While hot temperatures allow the oil palm to grow many leaves and, as a result, produce more fruit, oil palms need a lot of sunshine to grow well. It also needs access to water and mineral salts deep in the soil to do well hence the need for a permeable soil like Nigeria’s.

    But, sadly, the country has evidently failed to translate these huge advantages into maintaining a strong position in palm oil production and export.

     

    Where Nigeria got it wrong

    According to experts, Nigeria put the wrong foot forward and lost its economic bearing when she turned her back on agriculture following the discovery of crude oil in commercial quantity in the 70s. Before independence, agriculture was Nigeria’s economic mainstay, with more than 70 per cent of the population engaged in the sector.

    Alimikhena observed, for instance, that apart from various food crops produced in the country, Nigeria was a major producer of palm oil/kernel, cocoa, groundnut and rubber. But following the discovery of crude oil in commercial quantity, agriculture was neglected, while attention was shifted to oil.

    While acknowledging that Nigeria is endowed with the land and manpower to boost palm oil production, the lawmaker noted that the focus should be directed towards returning to pre-independence status in palm oil production. “We have no business importing palm kernel or any oil palm product from any country,” he pointed out.

    Alimikhena said the focus should be directed towards returning Nigeria to pre-independence status in palm oil production, noting that importation was hurting the local palm industry and depleting the nation’s foreign reserve.

    He also said it was threatening the industry’s viability into which many Nigerians have sunk huge sums of money in support of government’s export promotion drive. He expressed hope that if the palm oil industry is fully developed, it will guarantee mass employment and boost the nation’s foreign exchange earnings.

    Some of his colleagues in the Senate could not agree less, with Senator Theodore Orji (Abia-PDP), saying, for instance, that there was need to establish a special fund to encourage local production of palm oil.

    Orji expressed concern that many oil production plants were moribund. While pointing out that palm oil used to be a major income ear      ner for the country, he said unfortunately many plants are dead.

    For Deputy Senate President Ike Ekweremadu, the importance of reviving the palm oil industry cannot be over-emphasised. He, therefore, said there was need to properly position the sector to play its role as one of the major income earners for the country. He added that reviving the sector will boost employment.

    However, those  critical of the fresh move to ban the importation doubt if the Federal Government has the political will to do so let alone follow up with the introduction of policies targeted at encouraging local production.

  • JOHN OGU: Why I proposed to my wife on the pitch

    JOHN OGU: Why I proposed to my wife on the pitch

    Nigeria and Hapoel Be’er Sheva playmaker, John Ogu, made the biggest media headline not playing football for club or country. He got the attention of reknown cable networks, among them CNN, when he popped the ‘Will You Marry Me?’ question to his fiancée two years ago.

    Joined by his teammates after a memorable 5-2 league win, on the pitch, Ogu said he popped the question to a stunned Ada (now Ada Ogu) who covered her face while trying to fight back happy tears before thousands of Hapoel Be’er Sheva fans.

    Hear him:  “The credit really should go to my brother and friend, Anthony Nwakeame. We were in the dressing room and I asked him how best to propose to my wife. My idea was to pop the question at a restaurant during lunch or dinner.

    “But he told me that since we were playing the next day, I should speak to management and pop the question after the game in full glare of the fans. Right there, I spoke with the director and he said I could do it after the game. I was scared because I thought we might lose and we won’t be in a happy mood. But I accepted.

    “We won the game 5-2 and to my biggest surprise, the fans did not leave the stadium and my fiancée came forward and I went on my knees and popped the question. It was the finest moment of my life and my teammates and fans celebrated with us for hours.

    “My wife was pleasantly surprised too. Later, I received calls from my friends all over the world who saw it on television and even on CNN,” Ogu stated as he speaks more about is wife whom he calls his ‘best coach’ as well as his loving daughter in this interview with TAIWO ALIMI. Excerpts…

    Family life

    My wife is the greatest thing to happen to me. I remember how I proposed to her vividly because it was after a match. Her name is Ada Ogu and we have a daughter that I love very much. My wife is today my best coach. She watches all my matches and criticises me afterwards for what I did not do well. She is also passionate about the sport.

    As for my daughter, I don’t think I would like her to play football. Personally, I think football is too physical for women. My apology to all female footballers because I feel it’s meant for men. This is not to disparage ladies playing football. Her mum would like her to play tennis while I would like it if she plays basketball. But if she chooses football, I won’t stop her. I will not if it is her choice.

    Sunny side of Ogu

    I watch football and highlight of games whenever I want to relax. Football is my life and even when I’m relaxing I’m watching football. I watch football a lot. I watch past games and the best way for me to relax is to watch football. When I am tired I slot in a football tape and I feel energised. Football is it for me. I also like basketball.

    I used to see myself as a banker. But football just killed everything. If I wasn’t playing football I probably would see myself as a manager of a big bank in Nigeria.

    Pressure from family and friends

    I feel that very much. I understand that the country is hard and things are really tough. Even the young and coming players are too desperate and they often come at you begging for money. They can really be on your face and it is scary at times. When I was on the street playing football, it was tight too and sometimes it was so bad that I would steal my mum’s money to go to match venues. Sometimes I got transport fare from my coach, but the dimension that people go to now is even scary. I feel the pressure and I always do my best to help out.

    Formative years

    Like every other footballer, especially in this part of the world, I started from the street. I imbibed football passion from the street. We would move from our street to the next and to far ones while playing football and from there the passion just grew. God blessed me with a talent that could not be hidden and I have to show it to the whole world.

    Youth career

    It was at Starlet FC that I learnt all I needed to know about football as a teenager. It was here that I learnt the basis of football, how to kick the ball and a lot of other things that I needed to know as a kid. There are two coaches that I would never forget; Coach Atta, who hails from Calabar, the South South of the country, taught me the rudiment of the game while Coach Baresi (not real name) taught me that how to be disciplined and respect other players.

    We used to go to competitions where we played other teams and that helped me a lot. It was there that I met an ex-international who offered to help me go abroad. I spent some months in his camp and from there they arranged for me to travel to Europe and that is how I started my professional career. From there I moved to Portugal and was in Portugal for three seasons before I moved to Israel where I am today.

    Parental support

    To be honest, it wasn’t difficult to convince my parents to allow me go out play football. My dad and mom supported me fully and not once did they stop me from exhibiting this God given gift. But, again I knew this is what I wanted to do in my life right from my young age and all I needed to do was to know how badly I needed to do it. I’m lucky to have parents that gave me free hand and supported me. It is not all parents that do that but mine gave me more than 100 per cent support and thanks to them for it.

    Portugal experience

    The experience in Portugal was not devoid of bitter taste because it was my first real professional experience. There were tough moments and I remember that at a point my team played a match with eight players because we had to go without salary for four, five months.

    At that time, some players could not even sign their contract. But my agent had told me that I should be patient and that I would move out soon. It was a tough time but I learnt a lesson that defined me and would help me to face the future like a true winner.  For me, I had a contract with them and my agent said I should play and whenever I chose to move they would allow me leave as free agent.

    I decided to stay and play and in a particular match we played eight players against 10. It was a tough match for us but the experience toughened me. I know it happened for a reason and it is in my past now.

    Nigerian league

    I did not play in the Nigerian league before going abroad. But I would like to experience it before I end my career. I will come back home to play for a team in Nigeria. I think it is high time that we promoted our league. If you watch Brazilian players, they go back to their home country at a point in their career and play there.

    It is a way to give back and grow the league. I would rather come back to Nigeria to play than to play abroad without getting paid. This is the time to appeal to our ex-players to give back and help grow the league in Nigeria. That would help bring back the sponsor and the fans into our stadium. I’m 100 per cent sure that I will come back to play in Nigeria.

    Toughest team and player ever played

    I’ve played a lot of players. When I am on the field I see every opponent as good and so I don’t underrate them. I’ve played against brilliant players such as Xavi and Pirlo and I respect them. But football is a team play and therefore I play for my team members and they play for me too.

    Most Cherished career moments

    It must be winning my first professional title in Israel and wining it the following year again. The back to back thing simply freaks me out. I do no imagine that that I would achieve this so soon in my career. I am really happy to play in Israel. Winning the league shield back to back is a special one for me.

    Most disappointed moment

    So far, it is missing the World Cup. I was part of the team that qualified Nigeria for the last World Cup but I had issues with my club and that affected me badly. I did not make the final list to the World Cup for that reason. I can still remember how it feels to date.

    Racial abuse

    I’ve not experienced racial abuse in my career. I don’t really pay attention to that kind of things. I am more focused on trying to prove myself and helping my team win games. I have not come across it in my career and s I don’t know how it feels. It is really a bad though.

    I can’t imagine being called a monkey because I have dark skin. The closest that I have experienced in Israel is for fans to chant when they feel you have dived in the box to gain a penalty for your team.

    Retirement plans

    I would love to coach one day but it is still a long time to come. It is something for the future. In five, six years, maybe I would begin to look into that. But what I would really like to do is football management.

    That is what I have passion for. I see myself like a director of a club.

  • Re: Much ado about proposed Pension Act amendment

    I read with interest the publication with the above title published in The Nation of Monday, September 11, and marveled at why anybody would argue against the proposed amendment of some sections of the Pension Reform Act (PRA) 2014, which is intended to address the plight of retirees.

    One of the proposed amendments of utmost concern to me is the payment of 75% lump sum and the comments credited to the President of Nigeria Union of Pensioners (NUP), Abel Afolayan to wit: “We are aware of the bills seeking to revise certain portions of the PRA 2014. Our position is that it is too early to revise the Act. The PRA 2004 was revised and repealed into PRA 2014 and we believe it should be allowed to run for sometime. When we fully explore the provisions, we can then know the sections that are due for revision”.

    “In the case of the 75% lump sum bill, for instance, we believe that it will not be in the best interest of the retirees. This is because when a retiree is allowed to pull out 75% lump sum from his RSA, the remainder 25% will not be enough to provide monthly or quarterly pension payments and as such will be back to the problem of old age poverty”.

    I wish to ask if it must take a decade to review a section of an Act that is not serving its intended purpose, which should be for the interest of the retirees/pensioners. It is most unfair for the PFAs to be enjoying 75% of pensioners’ funds carting away huge returns on investments for their owners while the pensioners who ought to benefit from the contributory pension scheme suffer with miserable monthly pension amounts.

    Where those who argue against 75% lump sum got it all wrong is that, they believe retirees are far spent and cannot manage any business of their own; therefore they are only good to receive monthly stipends until death speedily come calling.

    Most pensioners were retired in their late 40s or early 50s. They are still very young, active and energetic to fend for themselves and their families, especially as most of their children are still in secondary schools, universities and other tertiary institutions of learning. Experiences garnered by the pensioners over the years of active service when employed in productive capacity would not only add to the country’s Gross Domestic Product (GDP), they will also be employers of labour thereby reducing the level of unemployment in the country.

    Most politicians who occupy positions of leadership and authority as president, governors, senators, House of Representative members, ministers, commissioners, etc. are above 60 years of age; yet they discharge their duties, make important decisions and evolve policies for the good of the society. The retirees should be paid their 75% lump sum so that they can put it to productive use. This will enable them to have substantial and adequate funds free from any cost to commence their businesses and take care of their basic domestic needs which include food, shelter, clothing, school fees for their children, etc.

    We all know that it is impossible for retirees to source funds from any financial institution to establish any business given the unfavorable and stringent lending criteria. So, why keep greater part of a pensioner’s retirement savings, which is designed to kick-start his business with a Pension Fund Administrator (PFA), who will be handing down some miserable amount every month to the retiree in the name of monthly pension, when he can manage his funds and not only better his estate but also become an employer of labour and add to the country’s GDP?

    This injustice is likened to a debtor who deliberately pays his creditor in bits instead of in bulk as appropriate.

    The contributory pension scheme as the name implies is a savings scheme, which ought to be used to commence a new life after retirement. An inactive person with the present miserable pension amount soon dies out of poverty, frustration and misery.

    The fear that payment of 75% lump sum would have ripple effect and cause financial shakeup is unfounded and does not hold water, because the funds would be paid out through the financial institutions (banks) to accounts of retirees held in the commercial banks. The retirees would withdraw the funds from their accounts according to their needs and thus funds are injected into the economy as productive capital for economic activities, which will further galvanize the country’s productive capacity and invariably boost our GDP. Thereafter, the funds would ultimately get back into the financial system in the normal cycle of velocity of money.

    Also, the regular monthly pension contributions from employers and employees of the public and organized private sectors will continue to replenish the pool.

    Pension contributions are warehoused with Pension Funds Custodians, mostly banks from where the funds are invested to yield returns for stakeholders. Pension Fund Administrators should guard against any envisaged effect of divestment from government securities before maturity, by ensuring that the proportion of pension funds invested in treasury bills, certificates and bonds are spread in such tenor intervals as to ensure quick conversion to cash. This will enable the PFA’s to quickly raise adequate funds to accommodate certain ratio of obligation to the pensioners, no matter the quantum without affecting maturity of investments. Acid Test Ratio should be observed by PFAs in their portfolio mix, to eliminate any threat of financial shocks under any circumstances and at all times. In fact, the PFAs should start now to accumulate funds from monthly contributions to meet payment of 75% lump sum before the proposed bills are passed into law.

    PenCom argued that it is trite that lump sum should not be fixed. Rather, what should be implemented is a minimum replacement ratio as monthly pensions. This is said to be 50% of last pay. Is the present 25% lump sum not fixed? Of course it is, as would the 75% when passed into law.

    As a pensioner under the present scheme, I do not receive up to 30% of my last pay as monthly pension.

    Presently, pensioners are witnessing old age poverty, dependency, insecurity and misery. He who is on the ground need not to fear a fall, rather what is uppermost in his/her mind is how to get up. Payment of 75% lump sum is the springboard that will give the pensioner/retiree the leverage to stand up and start all over again.

    Catering for old age therefore includes payment of 75% lump sum, to enable pensioners start a new business life.  Fifty) to 55 years old person is still very active, with a whole lot of experiences garnered during active service years to make success of his/her business with funds from his RSA, which is devoid of any cost of funds or interest element.

    For an individual who earned about N91, 000 as monthly basic salary, excluding other allowances while in active service and at retirement receives approximately N24, 000 as monthly pension, is he not impoverished already? If he/she still has a child in the university, would N24, 000 monthly pensions pay the child’s school fees, feed the family in a month and accommodate other domestic needs?

    Why didn’t the pension scheme operators and regulators deem it fit all these years to ensure that the minimum pension guarantee framework as stipulated in the PRA 2014 was set-up and funded to alleviate the pensioners situation?

    Must this kind of situation arise before such laudable provisions of the act are considered, articulated and put in place by the operators and regulators of the scheme for the benefit of the pensioners?

    It is expected that the Pension Fund Administrators would oppose the proposed bills because they are the ones benefiting from the status-quo. They would rather have 100% of contributions in retirees RSAs and make astronomic returns for their owners every financial year, to the detriment of the pensioners who are paid miserable monthly pensions and denied the opportunity of owning their own businesses due to lack of capital.

    For foreign investors to have invested heavily in some major PFAs is an indication of high rate of returns on investment for operators of the PFAs, all to the disadvantage of the pensioners who are condemned to old age poverty and consequent death by the status quo.

    What needs to be done is to prepare would be retirees for life after retirement, by organizing workshops and seminars where they would learn trades, acquire skills and managerial capabilities that would set them on the part of entrepreneurship to own their own businesses. One to two months should be dedicated to this training before retirement, to adequately prepare and equip the retirees with the proper mindset to succeed in any chosen field of endeavor as entrepreneurs. The Industrial Training Fund (ITF) should pay attention in this direction and collaborate with government departments, agencies, ministries and private sector organizations to achieve the desired results in this regard.

    The federal government is constantly seeking avenues to raise funds for our SMEs at single digit interest. This problem would be solved to a greater extent with payment of 75% lump sum, which is free from any cost of funds.

    On the other bill seeking to open at least one branch in each geo-political zone, to make it easy for pensioners to access their PFAs, it is a welcome development. This will bring the services closer to retirees who have limited funds to embark on several fruitless trips in pursuit of their entitlements.

     

    • Obi writes from Umueze Village, Aguata Local Government Area, Anambra State.
  • AUPCTRE kicks against proposed sale of national assets

    AUPCTRE kicks against proposed sale of national assets

    The Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees (AUPCTRE) on Tuesday condemned the idea of selling the National Theatre, Iganmu, to fund parts of the 2018 budget.

    This idea had been floated by the Director General of Budget Office, Mr. Ben Akabueze, when he appeared before the House of Representatives Joint Committees on 2018-2020 Medium Term Expenditure .

    The national assets to be sold, according to Akabueze, also include the Tafawa Balewa Square, and some selected power plants under the National Integrated Power Projects (NIPP).

    Akabueze had argued that these assets were “generating too little revenue” for the government to continue operating them under the current fiscal weather.

    But AUPCTRE, which held a vociferous rally at the National Theatre protesting the move, described the planned sale as insensible.

    National Theatre Branch Chairman of AUPCTRE, Mr. Dayo Akogun, noted that this was not the first time the Federal Government was attempting to sell the historic monument.

    Akogun pointed out that the public perception of the National Theatre as a show of shame mismanaged by civil servants was now outdated as the edifice had received a facelift within the eight months tenure of the new Artistic Director, Tar Ukoh.

    “They told a great lie that there is no water, no electricity, no air conditioning in the National Theatre,” Akogun said.

    Before the rally swung into full gear, Akogun led a team of journalists through the Theatre’s multiple conference rooms and cinema halls, which dazzled with light and cold comfort from the air conditioning. However, at a point, the power supply was interrupted and it took several minutes before the generators kicked in.

  • Aremu opposes proposed Pension Reform Act amendment

    Nigeria Labour Congress (NLC) chieftain Issa Aremu  has advised stakeholders to reject the proposed controversial bill seeking to exclude the Police, Customs, Civil Defenders, Immigration and Economic and Financial Crimes Commission (EFCC) from the Contributory Pension Scheme.

    The bill, being sponsored by a House of Represtatives member,  Oluwole Oke, has passed second reading.

    In a statement in Kaduna, Aremu, also the chairman of the Interim Management Committee of First Guarantee Pension Fund Administrator, said Pension Reform Acts of 2004 and 2014, were outcomes of executive bills, which addressed the delicate interests of pensioners, government and the economy.

    He added that a private-member bill informed by “narrow and vested interest consideration” could not do justice to all.

    The labour leader also said any private-member bill, which seeks to erode the gains of the 13-year-old N7 trillion contributory pension scheme, in terms of coverage and resource pools, is “counterproductive” and should not be encouraged.

    He said pensions of the workers in security services were better secured in a national contributory scheme than the old “unfunded and unsustainable, discredited  Defined Benefits Scheme (DBS).”

    According to Aremu, until the recent contributory pension reform, all stakeholders bore witness to ugly features of corruption, inefficiency and share looting, which he claimed characterised  the old DBS.

    He added that to return to the old era means “bringing back corruption to pension administration through the National Assembly”.

    He advised the National Assembly  against what he called  ”the pitfalls  of frequent  self-serving out sourced amendments” of the Pension Act.

    He observed that the pension Act has just been amended through executive/all inclusive review two years ago, adding that with all it’s globally acknowledged successes the contributory pension covers only seven million workers. He added that to  further ask for exclusion of the security agencies only undermines the scheme with all the attendant negative implications for Nigerian economy just coming out of recession.

    Aremu, therefore, called all National Assembly members to reject the bill, saying it would not do any one any good.

  • Oyo lawmakers to consider proposed €5m foreign loan

    Oyo lawmakers to consider proposed €5m foreign loan

    The Oyo State House of Assembly has forwarded the five million Euro loan request sent to it by Governor Abiola Ajimobi to the House Committee on Appropriation and Agriculture for further consideration.

    The loan is said to be for the procurement of multipurpose tractors to enhance farming.

    The Aseembly, presided over by Speaker Michael Adeyemo, spoke after deliberating on the request letter from the Executive, seeking the permission of the lawmakers to get the loan.

    Deliberating on the letter, Deputy Speaker Musa Abdulwasi hailed the Executive for enhancing agricultural development in the state.

    He urged the Executive to make judicious use of the fund to promote agricultural development.

    The lawmaker representing Ibadan North II, Segun Olaleye, said the matter should not be discussed on the floor of the Assembly but at the caucus meeting.

    But the Speaker said the matter should be discussed on the floor of the Assembly, adding that it was in the interest of the residents of the state.

    According to him, the essence of the matter required that reporters should witness the deliberation.

    Another lawmaker, Segun Ajanaku, supported Olaleye’s position, saying the matter was sensitive and needed not to be discussed in the open.

    The Speaker directed that the matter be forwarded to the Committee on Appropriation and Agriculture to deliberate on it on September 25 and present the report to the Assembly during Tuesday’s plenary for deliberation.

    The lawmakers hailed Ajimobi for his relentless approach towards reviving agriculture.

    But they said the review of the loan content and context by the Assembly was important before approval could be given.

  • Proposed tariff hike

    •Govt should not succumb to undue pressure from electricity firms

    Once again, Nigerians are confronted with the question of which comes first: the egg or the chicken, with the report that electricity consumers might soon have to pay more. Going by the report, the consumers may have to part with between N2.89 and N7.45 more per kilowatt hour (kwh) anytime from now. According to the report, the Nigerian Electricity Regulatory Commission (NERC), which is in charge of electricity tariff, has completed receipt of complaints on the new tariff after the expiration of a 30-day window. The review, according to reports, is necessitated by current economic realities. The proposed tariff however has to receive the blessing of the government before its implementation.

    As we have always argued, we have nothing against tariff increase per se. After all, the power sector is not immune from the country’s economic vagaries, the exchange rate and all. Our disagreement however has to do with the issue of prepaid meters which the electricity distribution companies are reluctant  to give their customers, for obvious reasons. Yet, it was clear a long time ago that one of the most contentious issues in the electricity sector is that of appropriate billing of customers.

    Indeed, many Nigerians had expected that this would be sorted out as soon as the new investors took over. Unfortunately, more than three years down the line, the issue has persisted even as the arbitrary billing by the electricity distribution companies is being resisted by more Nigerians. We wonder why Nigerians make a fetish of nearly everything. In neighbouring Ghana, prepaid meters are found all over the cities and even in the remotest parts of the country. How come the meters have to become something we would be debating for more than three years?

    In our view, the Federal Government should have reviewed the contracts with the electricity firms a long time ago. They had shown early in the day that the challenges in the sector were beyond their ken. The ideal is for Nigerians to have constant supply of electricity but it amounts to double jeopardy for them not to have electricity and yet be made to pay for what they never used.

    The complaint of lack of funds by the distribution companies to buy prepaid meters would appear laughable given that the power sector was among the various companies, individuals and parastatals that donated N21.27 billion during a fund raising dinner organised by the Peoples Democratic Party (PDP) on December 20, 2014 in Abuja. Indeed, the power sector alone coughed up a whopping N5billion, in what former information minister Jerry Gana said was the contribution by his friends and associates in the power sector, to the campaign. This huge amount would have gone a long way in procuring many prepaid meters for electricity consumers at the relatively lower exchange rate at that time. How can companies that embarked on that subversive generosity now turn round to complain of lack of funds to run their operations? The donation to the Jonathan campaign was made public; who knows how many other such avoidable expenses the companies have incurred which they now want Nigerians to pay for through crazy bills?

    Much as we do not support the Federal Government turning itself into a Father Christmas for the electricity firms, we would readily support any reasonable assistance it could render to them if it is convinced they genuinely require such. For instance, the government should expedite action on the more than three million prepaid meters that it promised would soon be rolled out under its intervention programme.

    We are not happy that the distribution companies have continued to demonstrate a lack of capacity to tackle their problems. Rather than concentrate on service delivery, they have kept emphasizing increase in tariff as if that would automatically translate into improved power supply. It would be sad for the government to allow tariff increase without evidence of their seriousness to bill Nigerians only for electricity consumed. Firms in the power sector won’t have any motivation to be efficient if they can always slam bills indiscriminately on their haples customers.

  • On the proposed army varsity

    SIR: It was reported recently that the Nigerian Army plans to establish a university in Biu, Borno State. According to details released to the media, the university is billed to take-off September next year.

    Establishing a university for the Nigerian Army is a welcome development as it will serve as a means of accommodating admission seekers who don’t make it into other universities. It could serve as a research centre which will develop solutions to enhance our security infrastructure at a time the nation is being confronted with myriad of security challenges.

    Despite all the good purposes the university may serve, however, caution must be exercised before going ahead with the university. It is one thing to establish a university, and quite another to ensure its viability. As of now, no Nigerian university makes the list of top 1000 universities in the world, which brings to question the quality of our institutions.

    Currently, the federal government has established universities in every state of the federation but these universities have not achieved the aim of their establishment. They are confronted with financial, administrative and labour-related issues. Salaries are not paid as and when due, research grants are not available for lecturers, some universities cannot afford diesel to fuel their generators, while some can’t provide potable water for their students. Some do not have a functional website while those who do update it for admission purposes only.

    The timing and location of the army university is wrong considering some factors. Currently the army is still battling with the Boko-Haram menace which is taking a toll on its scant resources. Establishing the university at this time will deplete the funds of the ministries of education, defence and army at the same time.  Besides, why do we need to start a new university in Biu when we have the Nigerian Defence Academy in Kaduna which is a degree awarding institution? Equipping and expanding  the NDA will cost less for the government than establishing a new university in a fresh location considering the economic reality of the country  at this moment.

    Equipping the existing universities should be a national priority. To make them more viable, necessary equipment should be provided for the students as some science-based universities still use kerosene stoves as Bunsen burners in their laboratories. Incessant industrial actions by ASUU and other labour unions in the universities should be addressed and salaries paid promptly. Funding for education should be increased from its current inadequate state so as to make these universities work.

    Before we go ahead with the Army University, the existing rot in our public universities must be addressed.

     

    • Adesina Tosin Nathaniel,

    adesinatosin1@gmail.com

  • Controversy over proposed assets sale lingers

    Controversy over proposed assets sale lingers

    The controversy raised by Federal Government’s proposed sale of some national assets to cushion the effects of the recession has refused to abate. Despite clarification by Minister of Budget and National Planning Udoma Udo Udoma that government was considering selling only some non-critical assets, the debate still rages. Some argue that the idea is wrongly-headed, others say the government could sell part of the assets and retain some level of ownership. Assistant Editor OKWY IROEGBU-CHIKEZIE reports on the divergent opinions on the matter.   

    The desire of Minister of Budget and National Planning, Senator Udoma Udo Udoma, to put the economy back on track having been hit by a recession is not in doubt. However, if the proposed sale of some national assets is his idea of revamping an economy severely battered by recession, it is doubtful if he will get a smooth sail.

    Since the Federal Government, through the minister, announced the proposal, a groundswell of opposition has continued to trail it, with many Nigerians arguing that the proposed sale was wrongly-headed and will not be in the interest of citizen. Others, however, argue that the move will help raise capital and consequently improve the nation’s foreign reserves, calm investors and in the long run, stabilise the economy.

    Apparently to calm the controversy generated by the proposal, Udoma, last week, in Lagos, clarified that government was considering selling only some non-critical assets to raise fund.

    Apart from plans to generate immediate larger injection of funds into the economy through assets sale, the minister said: “The President’s Economic Management Team is working on advance payment of licences renewal, infrastructural concession, use of recovered funds, et cetera to reduce funding gaps and ensure implementation of fiscal stimulus/budget priorities.”

    However, not a few Nigerians have refused to be swayed by Udoma’s explanations. For instance, organised labour not only rejected the move, but also warned the Federal Government against yielding to calls to sell some national assets. Labour even vowed to resist the move.

    The Nigeria Labour Congress (NLC) President, Comrade Ayuba Wabba, said for instance, that an asset such as the Nigeria Liquefied Natural Gas (NLNG), which yields over $1 billion to the nation every year, is valuable asset, that should be treasured.

    Under the proposed sale, which government said was aimed at bridging the funding gap in the budget and also boost the nation’s dwindling foreign reserves, it planned to dispose part of its 49 per cent shareholding in NLNG, including some aircraft in the presidential fleet, as well as four refineries in Warri, Port Harcourt and Kaduna.

    Frontline industrialist Alhaji Aliko Dangote was one of those who advocated the sale of national assets to cushion the biting effects of recession on the economy, including NNLG, which is believed to the nation’s cash cow. But the idea, particularly the sale of NLNG, did not go down well with many Nigerians.

    For instance, Wabba argued that embarking on such venture would be fruitless. He recalled how sale of national assets in the past failed to add value to Nigerians because it was skewed in favour of only few individuals at the expense of the citizenry.

    “It is on record that dividends in excess of $1billion have been accruing to the national coffers annually from the gas company over the past 12 years. These calls are more worrisome when one considers the history of sovereign assets divestiture in the past.

    “Where are the proceeds from sale of assets in the power sector for instance? With the benefit of hindsight, it is obvious that these assets were distributed to favour individuals and surrogates of the ruling elite without any appreciable benefits to Nigerians,” Wabba said.

    The labour unionist has an ally in Dr. Dan Nkwocha, a lecturer at the Department of Sociology, Imo State University, Owerri. Describing the proposed sale as “wrongly-headed,” he said it would not benefit Nigerians, because government does not have the necessary policing structures and mechanism to ensure that the assets to be so disposed are managed and run efficiently for the benefit of Nigerians.

    Dr. Nkwocha pointed out that the experience of Nigerians with the sale of state-owned assets such as Power Holding Company of Nigeria (PHCN), Nigerian Telecommunications Limited (NITEL), and National Fertilizer Company of Nigeria (NAFCON) among others does not encourage Nigerians to support the proposed sale of more national assets.

    “Where are PHCN and NITEL?”, the university don asked, accusing investors who bought over the assets of “reaping from where they did not sow.” According to him, the new owners took advantage of government’s lack of effective policing agents to deny Nigerians the benefits of efficient and cost-effective services post-privatisation.

    He said, for instance, that despite the sale of the assets of the defunct PHCN a few years ago, Nigerians are yet to breathe a sigh of relief by way of improved electricity supply. He lamented that rather than enjoy improved electricity supply, “Nigerians have become victims of the rapacious profiteering antics of the new core investors who daily fleece electricity consumers for services not rendered.”

    While admitting that the economy is currently in dire straits, requiring measures to pull it out of recession, Nkwocha said rather than sell national assets, government should begin aggressive diversification of the economy by exploiting opportunities in the agric and solid mineral sectors, as well as encouraging manufacturing.

    The Trade Union Congress of Nigeria (TUC) also condemned the proposal to sell the assets, saying that the Federal Government should prepare for civil turbulence if it proceeds to sell the assets. According to the Congress, proponents of the idea are Nigeria’s enemies.

    “The TUC warns those calling for the sale of national shareholdings in NLNG and concession of the country’s airports to drop the idea if they do not want to incur the wrath of workers. Those suggestions are disgraceful and portray them as enemies of the state,” its President, Mr. Bala Kaigama, and Acting Secretary-General, Mr. Simeso Amachree, said.

    Before Udoma made his clarification, the Senate had unanimously rejected calls for the sale of strategic assets. Some of the senators alleged that it would impoverish the majority of Nigerians that are already traumatised by the parlous state of the economy.

    Specifically, the Deputy Senate President, Senator Ike Ekweremadu, said only non-performing assets should be sold. According to him, selling productive assets will be unfair to the next generation, pointing out that countries such as United Arab Emirates (UAE) and Saudi Arabia guard their assets jealously.

    Some of the non-performing assets, which Nigerians wanted sold, are aircraft in the presidential fleet. There have been reports, for instance, that in the past 15 months since President Muhammadu Buhari came into the saddle, government had spent a huge sum of N5 billion to maintain nine aircraft in the presidential fleet.

    Opponents of the proposed sale of assets argued that selling income yielding assets will be counter-productive. To them, it makes greater sense to sell the non-performing assets, which require a huge sum of money maintenance. They noted, for instance that selling five of the aircraft in the presidential fleet and other unproductive assets will help raise money, which can assist address some of the economic crisis bedevilling the country.

    Proponents kick their heels in

    Despite the overwhelming opposition against the proposed sale of some national assets, the Federal Government has some allies. The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the umbrella body for the organised private sector, is one of them. Its President Chief Edem Bassey was emphatic that “there is nothing wrong in selling national assets that are no longer useful or efficiently operated by Federal Government.”

    Governor of Central Bank of Nigerian (CBN) Godwin Emefiele also threw his weight behind the proposed sale. He said when the idea of selling the national assets was first conceived in 2015, it was reported that the move had the potential to yield a whooping $40 billion to the nation.

    Emefiele, however, said that with the current flexibility in the market, sales output from the assets could only yield between $10 billion and $20 billion at present. Nevertheless, he said the assets could still be sold, but with a caveat that the Federal Government could buy back such assets when the economy eventually recovers.

    Similarly, the former CBN Governor, now Emir of Kano, Sanusi Lamido Sanusi, said the option of selling the assets could be explored with the consciousness of preserving notable interests in such assets by making the sale transparent and also positioning it to yield expected value.

    Push for options takes centre stage

    Although, the Manufacturers Association of Nigeria (MAN) said it was not averse to the proposed sale of some national assets, government must maintain some of ownership in the assets should they be sold.

    “Dangote spoke our mind. We are not saying government should sell its shares completely in the NLNG, which is worth $15 billion. They can sell part of it and still maintain some level of ownership,” MAN President Dr. Frank Udemba Jacobs, said.

    The MAN president noted by maintaining some level of ownership, “Nigeria will generate money to beef up her foreign reserves and engender confidence in the investing community, both domestic and international.”

    Also speaking, the Acting Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Shettima Abba Gana, said selling the assets will be an unwise decision.

    Instead, he advised the government to secure loans from the International Monetary Fund (IMF) and subsequently deploy revenues realised from the assets to offset the loans over a period of 10 or 20 years.

    Abba Gana reasoned that after the loans would have been offset within a decade or two, the nation would still continue to enjoy the income from such assets. He cautioned that Nigeria should not sell valuable assets such as NLNG and other strategic national resources to meet short-term financial obligations.

    Similarly, the President, National Union of Petroleum and Natural Gas (NUPENG), Igwe Achese, said instead of selling the assets, the Federal Government should attract investors by building refineries and set the tone for economic recovery through short, medium, and long-term economic measures to alleviate the plights of traumatised Nigerians.

    Will government jettison the proposal and embrace these options? That is the big question. Although, it is yet to come out with complete list of assets to put on auction, and the modalities should it go ahead, what is clear is that the move would not be a jolly ride if it eventually makes up its minds to dispose of the assets.

  • Seven reasons he has not proposed

    TIMES without number, I keep hearing complaints from single ladies complaining about their boyfriends/lovers unwillingness to make the relationship permanent by proposing. So ladies, after showing a guy love and affection, committing your time, efforts, and/ or resources to the relationship, he is still unwilling to put a ring on it, why? Some of the reasons are found below, enjoy.

    1. He is not ready for marriage. Marriage is a big commitment that should only be entered when one is physically, emotionally, and financially ready for it. The financial situation in the present day Nigerian society has led to many putting off marriage as long as possible. However, the unwillingness to commit to marriage does not mean that people are willing to be celibate. Going into relationships with no intention of making any form of commitment has become a way of life. Therein lies the conundrum; ladies, the guy you are with might tell you he loves you so that you can continue to date him, and give your body to him even though he has no intention of marrying you. He might only want sex, not marriage so it’s up to you.
    2. You are not his type. Many men have an idea of the idea of the kind of women they would like to settle down with, but until they meet that woman, they are quite capable of making-do with ‘Miss available’, until ‘Miss Right’ appears, when she does, ‘Miss Available’ is shown the way out. So it might be in your own best interests as a lady to save yourself for the man who will marry you, not simply for a series of boyfriends to toy with.
    3. He is in love with someone else. You might want to ask why he would date you if he already has someone he loves. Well, many men like variety, others may be in long distance relationships, for some others, the object of their affections might not be making her body available, so bros has to find a way to sort himself out.

    4 .He dislikes your attitude. A relationship is an opportunity to study a person’s character at close quarters, not sample each other’s bodies. When a man decides to settle down, he is not likely to make an emotional decision and marry you only because he loves you. Most men will study the lady, if not do some background check of her character. This is where the character of a lady is of utmost importance. Some ladies simply lack manners, or as we put it here in Nigeria “Have no home training”, some have rubbished themselves by making themselves the village mattrass in the name of love, or looking for a husband, so when Mr Right comes along it becomes a problem. For some others, they have a reputation for being rude, or are dirty, lazy, or what have you. So you might want to check your attitude.

    1. Your belief systems are different. Even though a lot can be said for inter religious unions, the fact is that not many men are willing to marry outside their faiths, especially if the lady is unwilling to adopt the religion of her man. The reason is simply that many men want order in their homes, and having a wife of the same faith makes it easier to raise children who will toe the family line.
    2. You don’t have a means of livelihood. Many ladies want to marry men who are established in careers or businesses, yet have no visible means of livelihood of their own. Ladies, the syllabus has changed! Go to school, or learn a trade, and find a job. It will not only provide your needs, but also give you some self-respect. Many men no longer want women who will be liabilities, while some even require that their wives be able to contribute something. Having said that, being fully engaged in some sort of job will make it easier to say no to predators that are willing to pay for your favours without offering a future (marriage).
    3. You like money too much. I can’t count the number of times I have heard Nigerian guys complain about our ladies, saying that our ladies love money too much. This might be the reason some ladies are willing to date married men, or even become second, or third wives, rather than marry a struggling young man. Could there be any truth in that assertion? The truth is that no one wants to be loved for their possessions, we all crave to be loved for who we are, not what we have. The economic condition of Nigeria has made many of our ladies money minded, so much so that they put more emphasis on the size of a man’s bank account than the content of his character. Unfortunately, they will have more than enough time to regret their choices.