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Tag: Senate

  • Senate to Presidency: avert looming fuel crisis

    •Govt, petroleum marketers agree on settlement of unpaid claims

    THE Senate yesterday asked the Federal Government to take immediate step to avert looming fuel scarcity in the country.

    The upper chamber said the advice became even more compelling with the Christmas festivities by the corner.

    But the Government and petroleum marketers have agreed on the settlement of outstanding claims and assured that operations at all depots and sales would continue until further notice.

    The Senate’s position followed the alarm raised by Senator Kabiri Marafa over alleged failure of the Federal Government to honour its obligation to pay oil marketers.

    Marafa, who is Chairman Senate Committee on Petroleum (Downstream), told his colleagues that the grim reality was that if measures were not taken to pay the oil marketers their outstanding entitlements, the country might be the worse for it.

    The Zamfara Central senator in a motion unanimously adopted told his colleagues that the Federal Government was yet to pay oil marketers about N1 trillion outstanding entitlements accumulated over the years.

    He said the controversial debt dated back to President Olusegun Obasanjo administration.

    The Senate also urged the government to direct the relevant agencies to immediately pay the subsidy arrears as approved by Federal Executive Council and the National Assembly.

    However, a statement signed by the Special Adviser to the Minister of Finance on Media and Communications, Paul Ella Abechi, said the assurance not to disturb activities at the depots was jointly reached and signed by officials of the Federal Government and representatives of the petroleum marketers in Abuja after a joint meeting.

    The meeting, he said, had senior government officials from Federal Ministry of Finance, the Debt Management Office (DMO), the Nigerian National Petroleum Corporation (NNPC), the Central Bank of Nigeria (CBN), the Budget Office of the Federation, the Office of the Accountant-General of the Federation and the Petroleum Products Pricing Regulatory Agency (PPPRA) in attendance.

    Representatives from the Depot and Petroleum Products Marketers Association (DAPPMA), Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN) also attended the meeting.

    Abechi noted that “while expressing satisfaction over the arrangement being made by the Federal Government to settle their claims, the petroleum marketers assured members of the public of availability of petroleum products.

  • Senate approves disbursement of N338b to states, contractors

    TWO states – Delta and Taraba are to share N102.3 billion of the N338 billion approved yesterday by the  Senate for disbursement as settlement for inherited local debts and contractual obligations.

    The funds approved for the two states are reimbursement for projects they executed on behalf of the Federal Government. About N43.5 billion will also be disbursed on contractual liabilities.

    Another N193 billion was approved for outstanding claims of 269 verified companies.

    Further breakdown of the N102.3 billion showed that Delta State will receive N67.9 billion and Taraba State (N34.3 billion) as refunds for expenses incurred on Federal Government projects.

    The approval followed yesterday’s adoption of the report of the Senate Ad-hoc Committee on Promissory Note Programme and Bond Issuance.

    Chairman of the Committee and Deputy Senate Chief Whip, Francis Alimikhena, presented the report.

    Alimikhena explained that the N43.5 billion was approved the settlement of contractual liabilities.

    The breakdown is as follow: N37 billion to Setraco Nigeria Limited; N4 billion to Bouygues Nigeria Limited; N346 million to Simidia S & I International Company Limited; N210 million to Hamdala Homes & Agency Limited as well as N960 million to Lejmej Nigeria Limited.

  • I ‘ll sponsor Media Welfare Bill in Senate, says Adeola

    SENATE Committee on Local Content Chairman Senator Solomon Adeola (APC, Lagos West) has pledged to sponsor a bill in the Senate for the protection and adequate welfare for journalists in the performance of their constitutional role in nation-building.

    He stated this at a media interaction with members of Nigeria Union of Journalists, Lagos Council at Ladi Lawal Press Centre, Ikeja over the weekend to kick-start his re-election campaign for the largest senatorial district.

    Adeola, who sponsored 15 bills in the 8th Senate with two of them passed by the National Assembly as constitutional bills, said he is motivated in making this pledge as a result of the fact that most of the major media establishments in Nigeria have their headquarters and origins in his senatorial district with many journalists as his constituents.

    “As part of my legislative agenda for the 9th Senate, if elected, I want to double the number of bills that I sponsor for passage by the Senate. I will be working with you, NUJ to sponsor a bill for the welfare of journalists in Nigeria. The bill will address by law the issue of salary of journalists in terms of adequacy and sanctions for non- payment over long periods without any consequences, security for journalists in the course of their duty as well as compulsory insurance.

    “The issue of Media Salary Scale for journalists should also be backed by legislative enactment,” the senator stated.

    He added that his stint of over 10 years in a media organisation in the finance department gives him an insight into the financial and other challenges facing journalists in Nigeria, s

    Adeola stated that in all the areas of functions of a lawmaker at the highest legislative body he has discharged his duties creditably to merit re-election for a second term, adding that in addition to his bill sponsorship and active participation in debate at plenary, three of his motions led to investigative committees pursuant of the oversight function of the parliament.

    Chairman of NUJ, Lagos Council Dr. Quasim Akinreti hailed the senator for making it a tradition of kicking off his campaign from the NUJ interaction. Akinreti added that there is need for the senator to do more in the area of welfare of journalists with many journalists as his constituents either as residents or workers in the largest senatorial district in Nigeria.

  • Senate seeks suspension of new tariff on alcohol, others

    Senators yesterday urged the Federal Government to put on hold the implementation of the excise tariff increment on alcoholic beverages and tobacco products.

    The upper chamber said the suspension should be in force until all stakeholders  have been consulted.

    It said the discussion with stakeholders should pave the way for consensus on the implementation .

    The resolutions followed the adoption of the report of the Senate Committee on Finance which considered “The urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction.”

    Chairman, Senate Committee on Finance, Senator John Owan Enoh, presented the 16 page report at plenary yesterday.

    The increase in the excise tariff rates on alcoholic beverages and tobacco products was approved by President Muhammadu Buhari after the adoption of the recommendation of the Tariff Technical Committee of the Federal Government.

    Read also: Violence rocks Akwa Ibom Assembly

    The main reason for the increase in the excise rate is said to be government’s drive to increase revenue generation and the belief that taxation has proved to be a veritable tool in controlling the consumption of alcoholic beverages as they have negative health effect on consumers.

     

    The resolutions followed the adoption of the report of the Senate Committee on Finance which considered “The urgent need to review the excise tariff increment in order to save local distillers of beverages from looming extinction.”

    Chairman, Senate Committee on Finance, Senator John Owan Enoh, presented the 16 page report at plenary yesterday.

    The increase in the excise tariff rates on alcoholic beverages and tobacco products was approved by President Muhammadu Buhari after the adoption of the recommendation of the Tariff Technical Committee of the Federal Government.

    The main reason for the increase in the excise rate is said to be government’s drive to increase revenue generation and the belief that taxation has proved to be a veritable tool in controlling the consumption of alcoholic beverages as they have negative health effect on consumers.

    The Manufacturers Association of Nigeria (MAN) believes the increase will give more competitive advantage to foreign products because they will not be affected by the increment.

    MAN which described the increment as “outrageous as it stands at 500 per cent” warned that “if the new rate is fully implemented after the three years incremental period, it is believed that a number of the local manufacturers will have no other option than to suspend operation.”

    It suggested that 35 per cent increment at maximum should be implemented by the government as it will guarantee the survival of the industry rather than 500 per cent increment which will put the entire industry in a very difficult situation.

    But the Senate said an increment of not more than 50 per cent at maximum should be adopted, “as it becomes necessary for the Federal Government to increase the tariff in order to boost revenue as the rate will provide more leniency to the affected manufacturers and give more hope for the survival of local firms.

    The upper chamber also resolved that there is need to increase the import duties of foreign alcoholic beverages and tobacco products in order to give local firms more competitive edge.

    It urged the government to sensitise and carry along the producers and consumers of alcohol and tobacco products to understand the need for the increase and its advantage in adding to the economic fortune of the country.

    The Senate agreed that if the new excise tariff is allowed to be implemented by the government, it will stand at about 500 per cent after the three years incremental period.

    It also said if the tariff is fully implemented without review, it is capable of compelling affected companies that cannot stand with the new rate to either shut down or relocate their full operation to neighbouring countries with favourable and flexible taxation policies for the sector.

     

  • Anger in Senate over troops death in Boko Haram attack

    Committees to probe killings, welfare

    Lawmakers to visit officers

    SENATORS yesterday bemoaned the reported killing of 44 soldiers attached to the 157 Task Force Battalion in Melete, Borno State by Boko Haram insurgents.

    A sombre atmosphere enveloped the plenary as the lawmakers took turns to condemn the “monumental loss”.

    The casualty figure and details of the attack remained hazy yesterday. Some sources said the figure was higher than 44; others said it was not up to that.  Military spokesmen did not respond to inquiries by our reporters.

    The upper legislative body ordered its committees on Army and Defence to investigate the killings and examine the welfare and wellbeing of troops engaged in counter insurgency operations.

    The senators also resolved to visit officers and men of the Nigerian Armed Forces on the counter insurgency campaign in the Northeast.

    Their resolution followed a motion by Deputy Majority Leader Bala Ibn Na’Allah (APC, Kebbi South) at the instance of the Senate President.

    Na’Allah decried the plight of military personnel fighting insurgency in the Northeast, stressing that one of the officers killed in the attack was his cousin.

    After observing a minute’s silence in honour of the fallen soldiers, the lawmakers resolved to pay a condolence visit to the Chief of Army Staff and families of the slain soldiers.

    The senators plan to conduct a “thorough” investigation into the circumstances surrounding the killings and the welfare of soldiers. The standing committee on Army was mandated to carry out the investigation.

    Other contributors, including Deputy Senate President Ike  Ekweremadu, bemoaned the hazardous tasks of men and officers of the Armed Forces fighting Boko Haram.

    They called on the Federal Government and the military authorities to adequately equip the personnel and address all welfare-related issues.

    Senator Andrew Uchendu (APC, Rivers East), suggested that the Senate shut down for the day, instead of just observing a minute’s silence for the slain soldiers.

    Uchendu said: “Mr President and dear colleagues, I have no reason to doubt the figure of the 44 dead soldiers. But if that figure is correct, then this Senate must come out and show massive concern, not just one-minute silence.

    “We must shut down for one whole day in honour of those fallen heroes.”

    The plenary was brought to an abrupt end.

    There were reports that about nine farmers in the community were killed in the attack.

    Read also: Senate bemoans killing of 44 soldiers by Boko Haram

    Addressing journalists shortly after the plenary session, the vice chairman, Senate Committee on Army, Senator Ibrahim Danbaba, deplored the “lackadaisical attitude” of the committee.

    According to him, the situation in the Army would have been different if the committee had lived up to its oversight responsibilities.

    Danbaba blamed the chairman of the Army Committee, Senator George Akume, for the lapse, saying there was a clear case of dereliction of duties on the part of Akume.

    He lamented that the committee had remained dormant since Akume assumed its headship in 2017.

    Some soldiers were allegedly killed on Monday when insurgents attacked the 157 Task Force Battalion in Metele, Guzamak Local Government Area of Borno State.

    A large cache of arms, ammunition and military equipment were reportedly carted away by Boko haram fighters during the raid.

    The Monday evening attack was described as a huge setback for troops fighting to end insurgency.

    All efforts to confirm the incidents last night proved abortive.

     

  • Senate to accelerate amendment of NDIC Act

    The Senate Committee on Banking, Insurance and Other Financial Institutions has expressed a strong Commitment for the accelerated amendment of the Nigeria Deposit Insurance Corporation (NDIC) Act, 2006, to eliminate the gaps that have hindered the full realization of the public policy objectives of the implementation of the Deposit Insurance System (DIS) in Nigeria.

    The Chairman of the Committee, Sen. (Dr.) Rafiu Adebayo Ibrahim, made the remark when he led his team on an oversight visit to the Corporation on Tuesday, this week.

    The Committee was warmly received by the MD/CEO of the Corporation, Umaru Ibrahim, FCIBN, mni, along with members of his management team.

    The MD/CEO updated the Committee on the recent activities of the Corporation including the response of the NDIC to the revocation of the licences of 153 Micro-Finance Banks (MFBs) and 6 Primary Mortgage Banks (PMBs), by the Central Bank of Nigeria (CBN).

    Members of the Committee were informed that the Corporation had already commenced the payment of depositors of 25 MFBs and the deposits verification of 50 others.

    He listed the challenges encountered by FMBs in particular to include non-performing loans, insider credit and abuse, non-compliance with extant regulations on their establishment and the overbearing indulgence in other fringe operations, along with poor earnings.

    The NDIC boss further used the opportunity to inform members of the Committee of the strong resolve and commitment of the Corporation to assist in the investigation and prosecution of all those who contributed to the collapse of the defunct Skye Bank.

    On the issue of the long suffering depositors of Savanah Bank, Fortis MFB, Aso Savings and Union Homes, the MD/CEO expressed the view that unless the enabling Act of the Corporation was speedily amended, the Corporation was handicapped in acting to end the plight of depositors of the institutions.

    Using the case of Savanah bank as an example, the MD/CE added that the NDIC Act, as presently enacted, inhibits the Corporation to reimburse depositors since their bank licences were yet to be revoked due to protracted litigation. The NDIC boss thereafter made appealed to the Committee to amend the NDIC Act.

    Responding, the Chairman of the Committee commended the Corporation for the excellent quality of its reports on the supervision of banks which have become the benchmark in the industry.

    The chairman however expressed concerns over the recent policy of the CBN which raised the minimum capital requirements for Microfinance Banks in Nigeria from N20 million to N200 million, and N100 million to N1 billion, and N2 billion to N5 billion for unit, state, and national MFBs respectively, adding that the policy will be inimical to the objectives of the financial inclusion strategy.

    The meeting ended with both institutions pledging to work harmoniously to confront emerging issues in the industry such as Block-chain Technology, Financial Inclusion, Cyber Crime, Digital Banking, Consumer Protection and the provision of credits to MSMEs.

  • Senate invites Amaechi over Eastern rail line

    THE Senate yesterday invited Minister of Transportation Rotimi Amaechi to appear before its joint committee on Land Transport and Local and Foreign Debts over alleged exclusion of eastern rail lines.

    Amaechi is summoned to tell the upper chamber why the eastern rail corridor, Port Harcourt to Maiduguri, was allegedly excluded in the scheme of rail expansion and modernisation.

    The invitation of the minister followed the adoption of a motion by Deputy Senate President Ike Ekweremadu on alleged exclusion of the eastern rail corridor in the ongoing modernisation of rails.

    Senator Enyinnaya Abaribe raised a similar motion last year when he prayed the Senate to put on hold a foreign loan for rail lines due exclusion of eastern rail corridor in the rail expansion plan.

    Amaechi told the Senate that there was no plan to exclude the Southeast area in the rail modernsation scheme.

    He assured that the area will be included in the 2018 borrowing plans of the Federal Government.

    Ekweremadu said yesterday that the exclusion of the eastern corridor in the rail modernisation scheme is not good for the country.

    He urged the Senate to intervene and prevail on the Federal Government to take steps to include in the rail line expansion project.

    Chairman, Senate Committee on Local and Foreign Debts, Senator Shehu Sani, who supported the motion, said it appears there is no commitment on the part of the Federal Government to pay attention to eastern part in the rail development programme.

    Senate Leader, Ahmad Lawan, who also supported the motion, noted that General Electric, which ought to have handled the project, has not abandoned it.

    Senate President Bukola Saraki said the issue of equity should be considered in the distribution of railway projects.

  • Senate mulls laws to encourage new listings

    The Senate plans to make laws that will encourage listing of companies on the Nigerian stock market.

    Deputy Chairman, Senate Committee on Capital Market, Mr. Foster Ogola said Senate will make laws that will encourage new listings as well as help to revamp the capital market and make it more vibrant.

    Ogola spoke when he led members of Senate Committee on Capital Market on oversight visit to the Securities and Exchange Commission (SEC) in Abuja.

    According to him, the Senate will consider legislation that will improve investments in the capital market by ensuring that the regulator is able to perform its responsibilities efficiently.

    Ogola stated that the Senators were on oversight visit which is done periodically look at what the Commission is doing and see how the Senate can support the SEC in their work.

    “We are here to look at your performances within the year, challenges you encountered and explore ways the Senate can help to make you perform better as the apex regulator of the Nigerian capital market. As the apex regulator of the capital market, we expect inputs from you on ways to deepen the market and make it more vibrant and if there are ways we can assist with relevant legislations we are willing to do so to grow the capital market and ultimately our economy,” Ogola said.

    A member of the Committee, Sen. Mohammed Shaaba Lafiagi expressed the need for more interface between the Senators and the SEC in a bid to look at specific issues and find ways of solving them.

    In her remarks, Acting Director General, Securities and Exchange Commission (SEC), Ms. Mary Uduk commended the Senators on their efforts aimed at ensuring adequate legislation for the capital market.

    Uduk however appealed to the lawmakers to assist in ensuring that government owned companies list on the exchange. This she said will boost investors’ confidence as well as attract investments from foreigners.

    “We have very big government corporations that can be listed and that will give foreigners comfort to list too on the exchange. If this happens, it will be good for our market and also give confidence to investors,” Uduk said.

    She disclosed that the Commission has embarked on a number on initiatives to boost investors’ confidence as well as deepen the market.

    She pointed out that at just concluded Capital Market Committee meeting last week, one of the decisions reached was to give an extension in the deadline for regularization to December 31, 2019. This is in a move to ensure more investors regularize their accounts thereby reducing the volume of unclaimed dividends in the Nigerian capital market.

    Uduk told the Senators that the CMC considered the issue and decided it’s best to give investors more time to regularize their multiple accounts in order to derive the benefits from their investments.

     

  • Lack of quorum forces Senate to adjourn for one week

    THE Senate yesterday adjourned plenary because it failed to form quorum for the day’s legislative business.

    The upper chamber fixed the next legislative day for Tuesday, November 20, 2018.

    Senate Minority Whip Senator Philip Aduda, who spoke under Order 10(3), drew the attention of his colleagues to the lack of quorum and the need for the adjournment.

    Aduda reminded the chamber that the Order states that a session of the Senate can only be held when the required quorum of 37 members out of 109 is formed.

    He moved that the Senate should adjourn sitting till the next legislative day.

    Deputy Senate President Senator Ike Ekweremadu seconded the motion.

    Ekweremadu said: “I rise to second the motion ably moved by Senator Aduda but let me add that we are more than 10, but certainly not up to 38.

    “We are somewhere between 15 and 20. Just for the record we are not less than 10 but less than 20.”

    Senate President, Bukola Saraki, put the motion to a voice votes.

    It was overwhelming adopted by the 20 senators in the chamber.

    Senate Leader Senator Ahmed Lawan noted that “having adopted this motion, it is mandatory that we stand down all the items on the Order Paper to the next legislative week, precisely next week Tuesday, November 20, 2018.”

     

     

     

  • Senate, CBN on collision course over MTN $8.1b fine

    AN alleged attempt by the Federal Government to reduce the $8.1 billion fine imposed on the communication giant, MTN, to $800 million is causing ripples in the Senate.

    It was gathered that the Federal Government, working through the Central Bank of Nigeria (CBN), may have resolved to cut the $8.1 billion fine to $800 million through the back door.

    The Senate alleged yesterday that the planned reduction of the fine was a matter of interest to it.

    The upper chamber noted that though it was not particularly against whatever the government would want to do with the MTN fine, it should be intimated why the reduction became necessary.

    The Senate also said how the percentage of reduction from $8.1 billion to $800 million was arrived at is of interest to it.

    The upper chamber said that it was interested to know what informed the penalty of $8.1 billion in the first instance.

    The Senate in 2017 adopted a resolution largely exonerating MTN of alleged illegal repatriation of $14 billion out of the country.

    Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Adebayo Ibrahim, told reporters yesterday that the CBN failed to implement Senate resolutions before conducting another investigation into the alleged infraction by MTN.

    Ibrahim said his committee would immediately demand the CBN’s report on the matter to be better informed.

    He said the only way Nigerians would know what transpired between the CBN and MTN on the $8.1 billion fine was through a detailed report.

    Ibrahim said: “The last time we heard about this issue was when we had a little retreat last two weeks in Lagos, where they (CBN) did the presentation of their biannual activities to the committee (Senate Committee).

    “We took them up on the issue, and the bank, that’s the CBN told us how they did the investigation.

    “We’re taking them up based on the fact that we have investigated did and we saw what happened.

    “All our resolutions were passed to them, and they did not even implement the resolutions before saying they’re going into another investigation.

    “They said their investigation was based on a petition from a law firm and their stand was that the penalty was correct.

    “So, if from the information you have now, it will be ridiculous for them to say they’re bringing the penalty down from $8.1billion to about $800million. That will be ridiculous for the CBN.

    “What they told us that day was that they were going to give us the report from when they started the investigation to date and their discussion with MTN.

    “So, if that’s the case, they have to answer to Nigerians through us in the Senate Committee to the legislature, what informed the penalty of $8.1billion?

    “And what information have they now gathered that informed the reduction to $800million.

    “I don’t know what percentage of reduction you can call that. Is it not up to 1000?

    “So, we will be interested to know that. We’re not against whatever they’re doing, but they will have to explain to Nigerians. Did they take the decision they took against MTN in a hurry, a foreign direct investor like MTN?

    “We took into consideration the role of MTN in the economy.

    “That’s why we did a very thorough job, and we believe we did a thorough job, that they did not steal any money then, that was our own assertion, though they repatriated.

    “By then, CBN said all the places where some infractions to the law or guidelines where they gave them waivers.

    “That was our position. So, we will be interested in the investigation.

    “We want to know what informed this decision. We as a committee and as a Senate will be interested.

    “They will have to explain. As I sit here, I believe it may not be true.

    “If it is close to the truth, then they will have to explain to Nigerians.

    Asked if the committee is likely to take up the matter

    Rafiu said: Definitely, I will call the Clerk to ask them that we are expecting their report as promised in the retreat. “In the report, if we find anything close to this, I will let you know.

    “We will write them and probably give ultimatum for the report. This is a very sensitive thing to the economy.

    “All of us know they (MTN) committed a lot of resources in Nigeria; so we don’t want them to be used as a yardstick as to how the Nigerian government treats investors.”

    The Senate adopted a report last year largely exonerating MTN of alleged illegal repatriation of $14 billion out of the country.

    The upper chamber also asked the CBN to sanction Stanbic IBTC Bank “for improper documentations in respect of capital repatriation and loan repayments” on behalf of MTN.

    This followed the consideration of the report of its committee on Banking, Insurance and other Financial Institutions which investigated alleged unlawful repatriation of $13.92 billion from Nigeria.

    MTN accepted the Senate report saying: “We welcome the report. We will study it in more detail. As we’ve placed on record previously, we have always insisted that our actions have been compliant with the law in this regard.”

    On CBN, Senate said the apex bank’s failure to properly regulate foreign exchange should be condemned.

    It also asked the bank to propose amendments to current regulation to foster economic growth and improve Nigeria’s foreign currency inflows.