The Nation Newspaper

Tag: reform

  • Lawyers call for civil justice system reform

    Participants at the 33rd Practice and Procedure Training Course of the Nigerian Institute of Advanced Legal Studies (NIALS) have called for the reform of the nation’s civil law procedure system.

    They said this would facilitate expeditious dispensation of justice.

    The participants, mainly lawyers, spoke at the four-day training workshop on practice and procedure organised by the institute at its Akoka, Lagos office.

    They noted that an efficient civil procedure system would enhance speedy justice delivery and encourage investors to invest in Nigeria.

    In a chat with The Nation, NIALS Director-General, Prof. Epiphany Azinge (SAN), said: “The general impression is that foreign investors are very keen to know how dispute resolution can be handled, if and when the situation arises.

    “To that extent, it is clear that the delay in the administration of justice is one cardinal issue that would work negatively against foreign investment in this country. Until and unless we are able to ensure that there is speedy dispensation of justice, foreign investors will be reluctant to invest. This is because in the event of a dispute, they are not sure of how long it will take to resolve it; hence, so many people seem to be running towards alternative dispute resolution or arbitration, which is faster. “But we can say without equivocation that in this era of ensuring that judges write their judgments speedily and ensure that cases are handled expeditiously, I believe that we are on the right track to attracting foreign investors and giving them hope and confidence. That is, if and when a dispute arises from any contractual agreements, the courts are in a position to handle the cases expeditiously.”

    A former Director of Research of the institute, Prof. Bolaji Owasanoye, facilitated the course on case-flow management.

    He said: “Delay in civil justice system affects governance and economic development. For example, investors will not like to invest in any economy that does not have a credible system of resolving disputes. One of the ways you can improve this is through an effective case-flow management system.

    This empowers the courts, especially the judges to take control of their courts and to monitor, if cases are lagging behind, to find out why cases are lagging behind. Until recent reforms, starting with Lagos State, cases as we knew, you only knew when you started, but you could never tell when you would finish. But in certain categories of cases, the rules time bind start to finish.”

     

  • Ports reform: Govt cedes 60% equity to investors

    Ports reform: Govt cedes 60% equity to investors

    THE Federal Government has ceded 60 per cent equity to investors interested in developing new ports in partnership with it.

    The General Manager, Public Affairs of the Nigerian Ports authority (NPA), Captain Iheanacho Ebubeogu, said the arrangement would boost investors’morale and confidence in the sector.

    Ebubeogu, who spoke on the ongoing reforms at the seaports, said in building new ports through Public-Private Partnership, the Authority has developed a structure that would ensure commitment to the project.

    He said: “We have a structure where the prospective investors come up with 60 per cent of the cost of building the ports and the state where the port is domiciled takes 20 per cent and the Nigerian Ports Authority on behalf of the government, takes the remaining 20 per cent.

    “The importance of making the investor come with 60 per cent, is that he must be sure that his outline business case is genuine and not going to turn the project into a white elephant. In most cases, if we leave the government to bring all the money, we may have problem of deciding where it should be located and its location becomes political and that will mean putting down money down the drain.

    Ebubeogu learnt over time that a businessman who is profit-oriented must put down his 60 per cent if he is sure that his outline business case should be viable, then we shall join him.

    ‘’That is one of the advantages of that structure. The second one is that we will have the business component and attitude on how the port will be run we will get efficiency and everything that is expected of the port.”

    On infrastructure, Iheanacho said though the NPA was not yet there, it is focused on addressing two key issues. He said the youngest of the ports that the Authority have was built 30 years ago, adding: “We have just celebrated the centenary of Port Harcourt Port.”

    He continued: “There is what is called assumed design of the port and that is in response to the size of ships years back, but today ship owners are responding to the economies of scale by bringing bigger ships. So, what we are doing is modernising what we have to cope with the limit of the assumed design of the ports and venturing into building new ports, deep seaports with deeper drafts for vessels.

    “It has two advantages, one is we will achieve making Nigeria the hub for West and Central Africa because the type of ships that will come there are those that will carry about 14,000 TEU (20-foot Equivalent Unit), a term used to measure a ship’s cargo-carrying capacity.

    ‘’Secondly, the cost of maintaining those ports will be reduced because the distance of the channels will be shorter and therefore, dredging cost, marking cost and all other encumbrances that make up the overhead will be drastically reduced.”

    On corruption at the ports, he said it cuts across all agencies at the ports. “If you look at the port, it assumes two responsibilities. It has the supply chain component where the ports terminals and shipping companies belong. The port is also an international border post-led Customs and what everybody is doing is to ensure that we make the port to be electronically operated, to be ICT operated. With that we try to reduce to the barest minimum person-to-person contact that gives rise to corruption. If there is no person-to-person contact, corruption is drastically reduced. The NPA also has an anti-corruption committee and Servicom headed by a general manager and I’m sure other agencies such as Customs are doing the same. We try to ensure that we don’t compromise enforcement on the border posts.”

    Chairman of Ports Consultative Council, Mr Kunle Folarin, said the government would provide an enabling environment to ensure productivity and reduce the cost of doing business.

    “Besides, maritime security is also an arm of government and I think all these are being achieved. What we need to do more is to see that efforts are coordinated and all agencies of government are working to ensure that we arrive at the preferred destination,” he said adding that before the concession, infrastructure, productivity, security and modernisation of the ports are the issues that the NPA had to address.

    “But you can see that every aspect of these issues have been tackled. Certainly, the issue of infrastructure is being attacked,” he added.

     

  • Adoke, others seek mortgage laws reform

    Nigeria’s mortgage laws need reform to bring them up to date with modern needs, experts have said.

    The Attorney-General of the Federation Mohammed Adoke (SAN); Dean, Faculty of Law, University of Lagos, Prof Imran Smith (SAN), and National Legal Adviser of the Action Congress of Nigeria (ACN) Dr Muiz Banire said the existing laws were old.

    But the Minister of Lands, Housing and Urban Development, Ms Amal Pepple said the government had proposed amendments to some of the laws.

    They spoke in Lagos at the Real Estate Lawyers Association of Nigeria (RELAN) 2013 Summit. It had the theme: Foreclosure Law and processes in Relation to Mortgage Security in Nigeria.

    Other speakers were lawyer and International Land/Mortgage Finance expert Ms. Carol Rabenhorst and Managing Director, Aso Savings and Loans Limited, Mr Hassan Usman.

    Pepple, represented by her ministry’s Director Legal Services Ifenyinwa Njokama, believes even the foreclosure law requires amendment.

    She said: “It is pertinent to inform this august gathering that the Federal Government of Nigeria has proposed amendments to the provisions of the Land Use Act which, amongst others, are considered as inimical to efficient and effective mortgage transactions.

    “The process of obtaining consent, which has been considered lengthy and arduous, results in considerable delays in commercial transactions.

    “The attendant negative effect is discouraging investors as well as retarding mortgage transactions in the country.

    “Most players in the industry are of the view that foreclosure law is not helpful to the lender and weighs heavily against it, thereby giving latitude for borrowers to default in the repayment of their loans.

    “Foreclosure processes are also seen to be cumbersome and time-consuming,” the minister said, adding that the government was working to correct the lapses.

    Adoke, represented by his Special Assistant Victoria Mbu, said housing laws must not be complicated.

    According to him, ease and clarity in the process of enforcing mortgages, particularly the foreclosure process, are significant catalysts for achieving the country’s housing targets.

    The minister of justice said it is, therefore, important that investors are able to take possession of their collateral and recover their loans as quickly as possible.

    “The current complicated procedures in our law courts and the unduly slow pace of proceedings cast a dim pall on the chances of achieving growth in these areas.

    “Several options have been canvassed, such as specialised property courts and the de-mutualisation of mortgages, to facililate non-judicial foreclosure.

    “In my view, there is also need to focus on manpower and technology deficits in land registries and cognate institutions to complement any reform in the legal framework,” Adoke said.

    RELAN President Prof Charles Ilegbune (SAN) said lawmakers must re-examine legislations governing mortgage transactions and foreclosure, adding that global challenges call for innovations.

    “There is no better time in our legal jurisprudence to have such as discourse and reflect on a number of questions.

    “Today, Nigeria is at crossroads of its legislations governing mortgage transactions and foreclosure.

    “Did we have the right legislations in this regard in the light of the Land Use Act and the Lagos State Property and Mortgage Law?

    “Have our recovery modes had the intended effects? How can we secure lasting and sustainable growth in the real estate section while restoring the confidence of investors?

    “The continuous growth in the world’s population and the global economy, as well as the increasing demand for mortgages as a form of secured lending will continue to place a huge demand on real estate transactions,” Ilegbune said.

    Smith, who is RELAN Vice-President, said present foreclosure law paradigms are ill-equipped to address borrower, lender and third party concerns.

    He criticised inadequacies in High Court rules and limitation laws which hamper real estate growth.

    Complications, he said, arise from legal provisions for re-opening of foreclosure proceedings, slow judicial process and co-ownership of property as subject-matter of security.

    The UNILAG law dean called for legislations on anti-deficiency, redemption statutes and foreclosure moratoria, and sought more judicial activism regarding constructive trusts and unjust enrichment.

    “There should be an institution to take records of all foreclosure proceedings. Transactions must be registered,” he said.

    Smith further suggested regulation of foreclosure processes that would take cognizance of the interests of the borrower, lender and the public.

    He believes factors to be taking into account by courts when making order should be streamlined, saying: “The court must be guided.”

    Smith also proposed removal or amendment of Section 22 of the Land Use Act “to exclude foreclosures to obviate any doubts as to its non-applicability.”

    He also wants a revisitation of the application of consent in the Lagos State Property and Mortgage Law.

    Smith said a law should be enacted to regulate foreclosure proceedings to allow a mortgagee to recoup their investment.

    Banire said all property laws need a review, adding that they must address present realities.

    “From the international speaker, we have been able to have some hint about what is obtainable in other jurisdiction which we can take into consideration when reforming our own law.

    “Most of our laws on mortgages are obsolete; most of them. Definitely we need to look at them again,” he said.

     

  • Ministry seeks ‘right tools’ to actualise reform agenda

    The Federal Ministry of Trade and Investment has asked for what it calls the “right tools” to enable it discharge its job.

    Minister of Trade and Investment Olusegun Aganga told the Head of Civil Service, Alhaji Baker Aji, who visited him, that the ministry was ready to actualise the government’s reform agenda.

    He said: “For now give us the right tools to do our jobs, that is all we are asking you to prioritise and help us to transform and assist us to work for Nigerians. If you are looking for investment, you compete with everyone from other countries to attract investment to your country. If you are talking about trade it is not just about regional or domestic trade, it is about international trade. You have to understand the language, communicate effectively and negotiate appropriately with your colleagues internationally. You need exposure and training to do the work”.

    Aganga said on assumption of office, he had to grapple with the structure and staff.

    He asked for capacity building for directors in the ministry. He said they need to be trained and exposed to enable them work like their counterparts in other part of the world.

    The minister said there was an opportunity for everyone to transform the economy to address the issues of wealth creation and poverty alleviation, adding that Nigerians are natural entrepreneurs who can run and start their businesses easily. He said the tools to move people from line of poverty to high wages and increase in per capita income is SMEs development.

    He pointed out that that no country has ever historically moved from being a poor to a rich nation without having a strong industrial and related services sector.

    The Head of the Civil Service of the Federation, Alhaji Goni Aji announced the agency’s support for the reform programme of the Ministry.

    Goni said the ministry is very critical to the nation’s economic development and assured the Minister that his office will do everything possible to assist in whatever area the Ministry will require to drive the Reform Programme.

    His words: “Whatever assistance is required to reposition the Ministry to attract foreign partners and investors and improve our national economic development, the office of the Head of Service of the Federation is ready, and we can actually start now”

    He advised the Ministry to start the implementation of the Reform Programme with two or three core departments as pilot departments before implementing same in other departments, adding that the exercise was in line with the earlier directive from the President that any Ministry that was critical to the repositioning of the national economy must, therefore, be professionalised.

    The Permanent Secretary, Ministry of Industry, Trade and Investment ,Mr. Dauda Kigbu in his presentation of the proposed professionalization of the Ministry had said that in order to enhance the effective pursuit of the Ministry’s mandate, and considering the pivotal role it is expected to play in the realization of the Transformation Agenda, the professionalization of the Ministry became expedient.

    He said prior to the engagement of a consortium led by RockHaven, the Federal Public Administration Reform (FEPAR) under the auspices of DFID had undertaken an institutional and functional review of the Ministry.

    The Ministry of Industry, Trade and Investment is among the first pilot Ministries where the office of the Head of the Civil Service of the Federation (OHCSF) have approved reforms that the Federal Public Administrative Reform Programme of Nigeria (FEPAR) is supporting its implementation.

  • Power sector reform to boost Nigeria’s growth, says IMF

    Power sector reform to boost Nigeria’s growth, says IMF

    Implementation of the power sector reform and rebound from floods would boost Nigeria’s growth this year, the International Monetary Fund (IMF) has said.

    The Fund, which said this in the latest edition of its World Economic Outlook (WEO), also projected a Gross Domestic Product (GDP) growth of 6.7 per cent and 6.9 per cent for the country in 2013 and 2014.

    Nigeria’s GDP is projected to be seven per cent this year. The country had recorded a GDP growth of 10.3 per cent, 10.6 per cent, 5.4 per cent, 6.2 per cent, 7 per cent, six per cent, 7 per cent, 7.4 per cent, 7.4 per cent and 6.5 per cent in 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011 and 2012.

    Historically, from 2005 until 2012, Nigeria’s GDP growth rate averaged 6.8 per cent reaching an all-time high of 8.6 per cent in December of 2010 and a record low of 4.5 per cent in March of 2009. The GDP growth rate provides an aggregated measure of changes in value of the goods and services produced by an economy.

    About $2.23 billion revenue is expected by the Federal Government from the sale of the 15 Power Holding Company of Nigeria (PHCN) assets. The funds are expected to be pumped into major infrastructure in the country, including the power sector. Once the power issue is resolved, more economic activities will spring up and this will translate to an increase in the county’s GDP.

    Meanwhile, the Fund also forecast a GDP growth of 5.5 per cent and six per cent for sub-Saharan Africa (SSA) in 2013 and 2014. Specifically, it expects SSA to continue growing at a strong pace during 2013–14, with both resource-rich and lower-income economies benefiting from robust domestic demand.

    The IMF, however, noted: “The external environment is the main source of risks to growth, particularly for middle income and mineral-exporting economies. Given the still-uncertain global environment, countries whose policy buffers are thin and where growth is strong should seek to rebuild fiscal positions without undermining productive investment.

    “Driven largely by domestic momentum in private consumption and investment, as well as exports, sub-

    Saharan Africa experienced robust growth in 2012, continuing a long trend of expansion only briefly interrupted in 2009. At 4¾ per cent, regional GDP growth was slightly lower than forecast in the

    “October 2012 WEO, reflecting mainly the impact of floods on oil and non-oil output in Nigeria and labour stoppages in South Africa.”

    Besides, it observed that headline growth in SSA in 2012 was visibly affected by the interruption of oil exports from South Sudan. The Fund added: “Activity in Mali and Guinea-Bissau was adversely affected by civil conflict; in Mali, 400,000 people have been displaced, half of whom fled to neighbouring countries. On the positive side, Angolanoil production strengthened, and Côte d’Ivoire experienced a sharp rebound in economic activity after the election-related disruptions of 2011.

    “Growth is projected to reach 5½ per cent in 2013, only marginally lower than forecast in the October2012 WEO. The generally strong performance is based on a significant extent on ongoing investment in infrastructure and productive capacity, continuing robust consumption, and the activation of new capacity in extractive sectors.

    The IMF noted that inflation in the region moderated from 10 per cent at the end of 2011 to less than eight per cent at the end of 2012, a trend expected to continue, absent new fuel and food price shocks. It said: ”The improvement in 2012 was particularly marked in eastern Africa, owing to monetary policy tightening and lower food prices associated with a recovery in local food production.

     

    “Some temporary headwinds to these trends have been observed in countries reforming energy subsidies, where the price level has shown one-time increases (Nigeria), and in Malawi, which has experienced some pass-through from depreciation. In sub-Saharan Africa as a whole, inflation is projected to fall further to 7 percent in 2013.”

    Noting that global economic prospects have improved again but the road to recovery in the

    advanced economies will remain bumpy, the IMF said world output growth is forecast to reach

    3¼ per cent in 2013 and 4 per cent in 2014. “In advanced economies, activity is expected to gradually

    accelerate, starting in the second half of 2013. Private demand appears increasingly robust in the United

    States but still very sluggish in the euro area. In emerging market and developing economies, activity has already picked up steam,” it added.

     

  • IMF praises CBN on banking reform

    The International Monetary Fund (IMF) has commended the Central Bank of Nigeria (CBN) for restoring financial stability after the 2009 banking crisis.

    The Fund, which gave this commendation in its concluding statement of the 2012 Articles 1V Consultative Discussion on Nigeria, also lauded the apex bank for its revamp of the regulatory and supervision framework.

    Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually yearly. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies.

    On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarises the views of Executive Directors, and this summary is transmitted to the country’s authorities.

    Available data, according to the IMF, suggest that the CBN has achieved considerable success in its reform agenda, and that these reforms serve as a model for both developed and developing countries.

    A recent Financial System Assessment Programme (FSAP) by the IMF in 2012, concluded that “the Nigerian commercial banking system as a whole, can absorb most credit and market risk shocks, withstand liquidity pressures, and absorb moderate potential losses”. This, according to the Fund, is a welcoming affirmation of a banking sector that was considered to be in a dire condition as a result of the financial crisis only four years ago. “Good financial soundness indicators point to continued improvements in the health of the banking system,” it added.

    When the CBN Governor, Mallam Sanusi Lamido Sanusi, embarked on the banking reform, some stakeholders had raised questions about the genuine and intuitive intentions of the reform agenda.

    This group of stakeholders had no fundamental understanding of the breadth and depth of the rot within the banking system as revealed by the special audit of the banks. If the rot had been left unattended, it would have had far reaching implications for the Nigerian economy.

    The stakeholders with good grasp of the issues applauded the reform agenda, while the doubting Thomases accused the CBN and its governor of witch-hunting perceived enemies. Even, the legislature accused the apex Bank of over-stepping its mandate and acting unilaterally.

    Undoubtedly, these opposing stakeholders failed to pay attention to the fact that regulators in the financial sector usually require swift actions to avoid possible and unprecedented systemic effects that could arise from such actions.

     

  • Civil servants seek holistic reform

    The Association of Senior Civil Servants of Nigeria (ASCSN) has urged the Federal Government to ensure a genuine restructuring of the civil service for an effective service delivery.

    Comrade Alade Bashir Lawal, ASCSN’s Secretary General gave this advice this while fielding questions from reporters at an interactive session in Lagos.

    This advice is coming against the backdrop that the Federal Government was about restructuring the civil service. Head of Service, Alhaji Isa Sali, had given the hint at a strategic planning retreat for permanent secretaries and directors in Lagos that the Federal Government had called for a review of the vision and mission of the civil service.

    Lawal said only a genuine reform would help the government to achieve its planned review of the public service.

    “There should be new ideas to enhance capacity to deliver public services. Restructuring should not be a way to embezzle government fund.

    “In the past, consultants had used reform or restructuring to make money from civil service without any impact. It should no longer be like that,’’ Lawal warned.

    He lamented that civil servants, instead of reporting cases of corrupt enrichment they discover, usually turned the other way for fear of being sacked.

    The union’s scribe further warned of a nationwide strike or court action if Governor Adams Oshiomhole of Edo State failed to reverse the appointment of a retired military officer as permanent secretary in the state.

    He said the appointment contravenes Section 282 Subsection 2 of the Constitution on appointment of civil servants.

    “The appointment of a retired military officer as permanent secretary breaches the provision of the constitution. You can only appoint qualified civil servants as permanent secretaries,’’ he said.

    He urged the governor to reverse the appointment in order not to promote the culture of impunity.

    Lawal said the union had invited the governor to a roundtable meeting without success.

    He added that civil servants in the state were disappointed about the appointment and the recent sack of their colleagues.

    About 22 Chief Inspectors of Education and 19 Local Education Secretaries were sacked recently for not being on their duty posts when the governor paid unscheduled visits to their schools.

  • There are forces against Nigeria’s reform

    There are forces against Nigeria’s reform

    SIR: The nation’s budget for year 2012 is largely oil-dependent to the tune of about N5 trillion despite the fact that India is expecting, for the same period, $70 billion (N10.5 trillion) from software exports alone.

    Perhaps we need to remind ourselves of where both India and Nigeria are coming from. In the 1980s, when the Delta Steel Company (DSC) was being built by a consortium of foreign companies, Mecon of India was serving as consultants to DSC. Mecon seconded many of its experienced engineers to DSC, who were helping to groom their Nigerian counterparts.

    While these highly experienced expatriate Indians were chauffeur-driven in brand new air-conditioned, official Peugeot cars, people in DSC were usually surprised to hear of how some of them were receiving letters from their home office, informing them of the approval of their motorcycle loans!

    This was at a time fresh Nigerian graduates looked forward to buying new cars after just a few years of working. This was before our present addiction for“tokunbo” products.

    India has since transformed into one of the sensational economies including Brazil, Russia, India and China (BRIC) while Nigeria is retrogressing deeper into poverty, which according to figures from the National Bureau of Statistics (NBS), has worsened from 54.7 in2004 to 61.9 in2011. Our state governors are busy bickering over statutory allocation, while their counterparts across the world are aggressively harvesting the infinite opportunities created by globalisation. While we remain on revenue allocation, the world is moving in the direction of technological creativity.

    The real tragedy is that even with the pitiable state of our nation, our entrenched interests are still fighting viciously to ensure that nothing changed. More tragic is the fact that they are using the rest of us, to bring down anybody that tries to change things! We are helping our entrenched interests to ensure that nothing changes, and to deal with each officeholder that refuses to toe their line.

    The Goldman Sachs’ research report for 2007 listed Nigeria among its ‘Next 11’group of countries expected to catch up to the fastest developing BRIC economies.

    That reform might even have been most providential, considering what could have become of the Nigerian economy if the global meltdown that soon followed had met us with a financial sector driven by fragile, under-capitalised banks!

    Similarly, the all-important Petroleum Industry Bill (PIB), which had clearly forgotten the destination of the 12-year journey it started since 2000 with President Obasanjo’s Oil & Gas Reform Implementation Committee (OGIC), is now suddenly contemplating reality! This means that all those years of regulatory uncertainty, blocking billions of dollars of oil-sector investments, are coming to an end. Again, for the first time in our petroleum history, we now have a “Nigerian Content Development Act”, which has transformed the capacity for local participation in the sector.

    • Gabriel Zowam,

    Reform & Process Improvement Expert.

  • Stakeholders seek reform of intervention funds

    Worried by intervention funds’ lack of impact on businesses, stakeholders have called for the restructuring of the funds and the mechanisms for disbursment .

    A communiqué on the recent bi-annual dialogue on the “Impact of Government Intervention Funds in the Transformation of the Nigerian Economy,” by the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), said the fund’s impact was not being felt as currently being implemented.

    For the funds to have the desired impact on businesses, they must be restructured to meet the objectives .

    The intervention funds include the N100billion Cotton, Textile and Garment revival Fund, the Rice Cultivation Funds and the N500billion Cassava Funds, among others.

    The stakeholders involved in the dialogue include NACCIMA; the National Association of Road Transport Owners; Nigerian Association of Small and Medium Enterprises (NASME); NACCIMA Women Group and other independent firms.

    The communiqué noted that in terms of operation, some segments of the business community had been left out of the catchment focus of the funds, while in most cases, amounts offered were too small to make the needed impact, especially in the area of achieving the expected turnaround in operation.

    Participants at the session had identified the impediments to accessing the various funds to include the low awareness on the various intervention funds; the very low percentage of beneficiaries in the funds; and the “significantly” low level of access to the funds, which they blamed on structural compositions and mechanisms of access to the funds.