The Nation Newspaper

Tag: Reps

  • N5tr pension funds: Reps, PenCom, PFAs to discuss infrastructure investment

    N5tr pension funds: Reps, PenCom, PFAs to discuss infrastructure investment

    The House of Representatives  has mandated its committees on Pensions, Finance and Capital Market institutions to interface with the Nigerian Pensions Commission (PenCom) and other stakeholders  on the viability of investing part of the N5trillion idle  pension funds in infrastructural facilities.

    The resolution of the House was an offshoot of a motion sponsored by a member, Yusuf Tajudeen, yesterday.

    The motion was passed with dissent from some members.

    While arguing the motion, Tajudeen said there is growing concern over infrastructural decay in all sectors of the country as a result of neglect, ineptitude and lack of planning by successive governments.

    He said the dearth of infrastructure is having far-reaching consequences on the economy of the country.

    He said: “In over one decade of the implementation of the Pension Reform Act, the National Pensions Commission has accumulated about N5 trillion which is mainly in the vaults of commercial banks as free funds characterised by low investment returns and sharp practices by various Pension Funds Administrators (PFAs).”

    According to him, in most countries in Europe, Asia and America, pensions funds are usually invested in the provision of infrastructure as a means to regenerate the funds, grow the economy, sustain meaningful development and met the needs of the citizenry.

    He expressed concern that the consequences of taking  offshore loans and facilities to address the infrastructure needs of Nigeria will, in the long run, bring colossal damage to the economy.

    “The huge infrastructural deficit in all sectors of Nigeria’s economy cannot be achieved through budgetary allocations alone, thus, if no concrete and pro-active investment strategies are put in place to comprehensively address these infrastructural challenges, the nation may be thrown into deeper economic crisis,” he said.

    However, Hon. Pally Iriase and Hon. Lawal (Yobe North/South) sounded a note of caution on the issue.

    Iriase said there is need to be careful so that wrong decisions that would be regretted in the future would not be made on the issue.

    Lawal said members should take cognisance of the fact that already, there is over N80 billion non-performing loans problem in the country and it would be sad if the pension fund becomes a part of that.

    According to him, there might be a scenario in which the retirement benefits of pensioners may not be paid as in the past because of bad investment decisions.

  • Reps want FG to increase budget for rural development

    The House of Representatives on Wednesday urged the Federal Government to give due attention to rural development by increasing the annual budget of the ministry of Agriculture and Rural Development to accommodate the increasing needs of the rural populace.

    The House also mandated its committee in Rural Development to investigate the state of rural developmental projects nationwide and the specific programmes geared towards rural development, and report back within four weeks.

    The House resolutions were sequel to the passage of a motion sponsored by a member of the House, Oladipupo Adebutu.

    Adebutu noted that the main sectors that drive development across the world are agricultural, industrial, communications, education and other allied sectors.

    He said the government has not funded rural development projects adequately, adding that some countries have ministries that cater for rural development and correct developmental imbalances.

    He said, “In 2012, out of N36 billion budgeted for capital projects by the Ministry of Agriculture and Rural Development , only about N3.5 billion, which was provided through the Millennium Development Goals ( MDGs) funding and representing about 4 percent of the entire ministry’s budget for that year, was allocated to rural development.

    “In the 2013 budget, about N39.5 billion was budgeted for capital projects, but only about only N2.8 billion of this amount, again provided through the MDGs funding to the ministry and representing about 5.5 percent of the entire ministry’s budget for the year, was allocated to rural development .

    “The 2014 and 2015 budgets were not much different from those of the previous years.”

  • VC: I was not walked out by Reps

    The Vice Chancellor of the University of Ilorin (UNILORIN), Prof. AbdulGaniyu Ambali, has denied being booed by members of the House of Representatives Education Committee.

    Some national newspapers (The Nation not included) reported that the vice chancellor was being probed by the Economic and Financial Crimes Commission (EFCC).

    The newspapers added that members of the committee walked him out while defending the UNILORIN 2016 budget proposal.

    Prof Ambali made the denial at the weekend while addressing reporters in Ilorin, the Kwara State capital.

    Said he: “I was not walked out of the National Assembly by the House of Representatives Committee on Education.”

  • Reps, Dogara fight over constituency projects

    Reps, Dogara fight over constituency projects

    Some members of the House of Representatives are spoiling for a fight with their leadership over funds for constituency projects in the 2015 budget, amounting to N4.7 billion.

    The Nation learnt that the members accused the leadership of undermining the rules guiding the execution of constituency projects under the defunct Millennium Development Goals.

    A member, who spoke on condition of anonymity, said about N30 million was allocated in the 2015 budget to each member, but was reduced to N13 million by the Speaker, Yakubu Dogara, on the excuse that there was cash backing.

    According to the member, the leadership decided to alter the pattern of executing constituency/MDGs projects through award of contracts.

    He said usually contractors were nominated by members, who also decide on projects suitable for his constituents and take it to the ministry responsible for execution.

    The member alleged that instead of adopting same pattern, the House leadership resorted to purchasing tricycles, motorcycles, generators, etc. which were sent directly to the constituencies.

    The source said the lawmakers were told they should abandon projects for supplies because the “2015 Budget will soon expire”, adding that members were asked to forward names of their contact persons as well as items they want supplied.

    While some of them were said to have complied, some refused when they discovered  the leadership unilaterally awarded the contract for the  items and sent same to the constituencies.

    Another member from the Southeast, alleged that the items sent to their constituencies was far less than the N13 million budgeted, as the leadership spent between N6 million and N7 million for each constituency.

    He said: “My contact person called to say that somebody called to tell him that the items meant for my constituency were at the state capital and that l should go there and pick them up”, he said

    The source said when the House resumes on Tuesday, the aggrieved lawmakers will table the matter, to absolve themselves of any blame from Nigerians.

    “You know there is a perception that everybody in the National Assembly is corrupt.

    ‘’But l am telling you that this is not true. Many of us here still value our reputation.

    ‘’We will not sit back and watch a few individuals destroy the reputation that took us years to build.

    ‘’We shall expose those behind this fraud so that the public will know that not everybody here is involved in shady deals,” he said.

  • Shock as agency presents 2015 budget to Reps for 2016

    Shock as agency presents 2015 budget to Reps for 2016

    The House of Representatives’ Committee on Capital Market, led by Tajudeen Yusuf, was shocked to discover that the Investment and Securities Tribunal (IST) presented same copy of its 2015 budget in 2016.

    This discovery put on hold the budget defence session of the agency.

    Yusuf said: “We expected this yesterday to take the budget defence of the IST but we realised that the budget for IST in the 2016 budget proposal is just an exact copy of its 2015 appropriation. It is word for word, figure for figure. And Items dealt with and completed in 2015 were repeated.

    “We looked into the budget about two weeks ago and, apart from the issue of personnel that the agency treated late in 2015, the 2015 budget for IST was okay.”

    IST Chairman Ngozi Chianakwalam refused to speak with reporters on the issue.

    The Senate, House of Representatives and the Ministry of Finance are to meet to straighten the inconsistencies in the 2016 budget proposal, the chairman said.

    Also, at the same committee yesterday, the MD/CEO of Nigeria Commodities Exchange, Baba-Ari Zaheera, appealed to the committee to assist in an enabling law to make the agency more effective.

    The NCE boss said the passage of the bill on Warehouse Receipt System ( e-WRS) would make the Exchange more relevant in the country.

  • 2016 budget: APC, PDP Reps clash over Amaechi

    2016 budget: APC, PDP Reps clash over Amaechi

    There was a drama yesterday during the budget session of the Ministry of Transportation with the House of Representatives joint committee on Land Transport and Aviation.

    Trouble started when All Progressives Congress (APC) lawmakers felt that questions being asked by a Peoples Democratic Party (PDP) lawmaker, Linus Okorie, at the ministry’s 2016 budget defence was in bad faith.

    The session became rowdy and had to be terminated abruptly after the APC members present at the session told the Minister, Rotimi Amaechi, not to answer the questions.

    Okorie had called the attention of the minister to perceived discrepancies in the budget figures submitted by the ministry and sought clarifications.

    Amaechi told the committee that his budget was tailored to conform with the template given to them by the budget office.

    But some members of the committee, especially from the PDP, were at variance with Amaechi’s explanation, asking further probing questions.

    According to them, the documents presented by the minister were below their expectations and that he should present an acceptable and realistic budget.

    This prompted APC members at the hearing to ask the minister to cease answering the questions.

    However, after a while fray nerves were calmed  and the minister’s team was told to return at a later date with the appropriate documents to continue the defence of the budget.

  • DMO ‘ll rescue economy from meltdown, say Reps

    DMO ‘ll rescue economy from meltdown, say Reps

    Members of the House of Representatives Committee on Aids, Loans and Debt Management, has said that it is only through the instrumentalities of the Debt Management Office (DMO) that Nigeria can carefully come out of the looming economic crisis.

    The Chairman of the Committee, Honourable Adeyinka Ajayi, who yesterday led members of the committee on a familiarisation visit to the DMO said that the debt office was the engine room of the nation’s economy that was always expected to come up with sustainable debt management models for the overall prosperity of the country.

    “While acknowledging the crucial role the DMO has continued to play in the management of the country’s economy, this visit is significant and historic. The DMO is the engine room of the Nigerian Economy whose initiatives have often prevented the economy from going into recession”, Hon. Ajayi said.

    He noted that with the current stiff challenges facing the country as a result of the sharp decline in revenues from the sale of crude oil, the DMO is once again, expected to play a pivotal role in the effort to steer the economy out of trouble.

    The Director-General of DMO, Dr. Abraham Nwankwo praised the Chairman and members of the Committee for the special favour of coming to be with” them and expressed the DMO’s appreciation of the invaluable support and deep collaboration it has always enjoyed from the Committee.

    He said the D-G taken the DMO through turbulent times in the nation’s recent economic experience.

    Speaking on the theme: ‘Brief on the Mandate and Activities of the Debt Management Office’ Dr. Nwankwo recounted the background to the establishment of the DMO and outlined the milestones achieved by the Office since its inception.

    He reviewed the successes recorded by the debt office in revamping the hitherto moribund Domestic Debt Market and the successful launch of the Nigerian flag in the International Capital Market with its debut 500 million USD Eurobond issuance in 2011 and subsequent issuances in 2013 to raise funds towards financing the deficits in the national budget.

    Dr. Nwankwo said the DMO assisted the 36 States of the Federation and the FCT to establish their own Debt Management Departments (DMDs) and the fiscal stabilisation intervention of the DMO which led to the restructuring of the debts owed to banks by some States into long tenured bonds.

  • Reps seek change of Armed Forces procurement processes

    Reps seek change of Armed Forces procurement processes

    Procurement processes for the acquisition of arms and ammunitions for the Nigerian Army and all the security agencies operating in the country should reviewed, the Chairman of the House of Representatives’ Committee on Army, Rima Shawulu suggested yesterday.

    Shawulu, who spoke  during the budget defence of the Nigerian Army which had the Chief of Army Staff (COAS), Lt.Gen Tukur Buratai and other military chiefs in attendance, said a new approach to arms procurement will eliminate some of the controversies surrounding the exercise.

    He said: “The controversies over the purchase of arms and ammunitions or alleged purchase f inferior or substandard arms call for an urgent review of our processes.

    “Indeed our several scholar, leaders and generals have repeatedly affirmed, war is too important to be left in the hands of generals.

    “The world have moved on in most democratic countries, representatives of the people, the parliament is involved in the details of implementation of budgets and procurement processes. “

    Some top military officers have been arrested over a $2.1 billion arms purchase scandal over alleged involvement.

    The former National Security Adviser (NSA) to former President Goodluck Jonathan, Col. Sambo Dasuki (rtd), is presently facing criminal and corruption charges in a court of law over the same issue.

    Similarly,the Economic and Financial Crimes Commission recently arrested a serving senior officer of the Nigerian Air Force in connection with the $2.1 billion arms purchase deal.

    However, the Shawulu-led committee differed on calling retired Service chiefs, who were involved in procurement for questioning.

    Lt.Gen Buratai told the committee that “all the Service chiefs and those involved in the procurement are retired, so we are limited on the extent we can investigate them.”

    Shawulu was of the opinion that the Green Chamber has constitutional power to investigate the arms purchases of the past administration and call anyone for interrogation.

    The lawmaker also expressed concerns over the dilapidated state of the facilities in the 30 military formations and barracks which the committee visited during a recent familiarisation tour.

    He said: “In all, we visited and related with officers in about 30 formations in the six geopolitical zones of Nigeria. Our discovery calls for a review in the way we do things.

    “It is sobering that the officers and men who have dedicated their lives to fighting to keep us safe, live in such scandalous accommodation. It is also shocking that the decay and rot in the system has been left unchecked and our soldiers fighting without the required equipment.

    Stressing the need for adequate budgetary provision for the rehabilitation of 117 barracks across the country, Shawulu, said his committee has sent a letter to Speaker Yakubu Dogara and Senate President Bukola Saraki to increase in the budgetary allocation for the Nigerian Army in the 2016 Budget.

    The COAS said the Army is continuously re-strategising to meet daunting challenges, adding that partial implementation or non-release of budgetary allocations would certainly have negative impacts on campaign plans.

    The budget proposal for the Army is N160.848 billion as against N149.8 billion last year’s Budget.

    In the proposal, N129.654 billion is allocated for personnel cost, N13.301 billion  for overhead and N21.339 billion for capital component.

    Buratai noted that the N160 billion allocation was inadequate for the Army compare to the N520 billion it requested for.

  • Reps panel adjourns indefinitely

    News of a Bristow helicopter crash yesterday forced the House of Representatives’ Committee on Aviation to adjourn its activities indefinitely.

    The News Agency of Nigeria (NAN) reports that the committee was conducting the defence of the 2016 budget by agencies and departments in aviation when it ended its sitting abruptly.

    The committee Chairman, Nkiruka Onyejeocha, said the budget defence could not continue because of the crash.

    According to her, there is no way this budget defence will continue when the aviation industry is currently hit by a helicopter crash.

    “We are humans and it will be inhuman if we go ahead with the defence when we are yet to know the conditions of the passengers on board.

    “We don’t know if the passengers are battling for survival or there are some casualties.

    “For this reason, this session is adjourned sine die,” Onyejeocha said.

  • Drama as Reps panel fails to prove alleged pension scam

    Drama as Reps panel fails to prove alleged pension scam

    The Managing Director (MD) of the Nigerian Railway Corporation (NRC), Seyi Sijuwade has been asked by the House of Representatives to produce contractors that that handled rail construction/rehabilitation projects between 2010 and 2014.

    The MD was requested to produce the contractors as Ehiozuwa Agbonanyima-led ad hoc Committee investigating the project complained that it could not get letters of invitation to the companies even with the addresses provided by the MD.

    However, attempt by the Committee to prove a connection between the NRC and a request for return of N2b pension fund on the management of the corporation by the Committee failed as the MD and his team defended the allegation.

    Trouble began when the Committee, acting on documents before it, asked the MD to explain all he knew and reason behind his request to the Office of the Accountant General of the Federation (OAGF) for a return of N2b or 20 percent of the corporation’s pension fund to the corporation sometime December, 2014.

    In his response, Sijuwade, who was reminded of being on oath, denied making such request to either the AGF or Minister of Finance to return any pension money to NRC.

    “I never at any time make any request to the AGF to return N2b pension fund to the corporation,” he said.

    Insistent on getting to the root of the matter, the Committee asked the Director of Finance, Felix Njoku to take an oath in order to take questions regarding the issue.

    Njoku did and replied affirmatively that there was never any correspondence from his office to the AGF on return of the said pension money.

    Not satisfied, the Committee veered into what the organization did with N2b that was in the corporations’ coffers around the period under review.

    The Finance Director explained that the money was not related to pension and was used to fund on-going contracts at the time.

    He was asked to list the contracts, which he said was impossible at that point but that all transactions were duly documented.

    He promised to make available the records.

    On the issue of contract agreements signed without major signatories but witnessed by the MD and the Secretary, it was explained by a member of the Committee that it was the standard practice for MD and Secretary to witness the seal of the organization in contract agreements.

    The Committee also faulted the award of Jebba Lagos to Costain Construction Company, claiming that it has no competence in railway projects.

    The MD however replied that Costain went through due process and found competent by the approving authority, adding that being a reliable compnay, the company has successfully completed its project.