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Tag: showdown

  • NASS workers poised for showdown over pension scheme

    Anxious over alleged multibillion naira manipulations in salary and pension payments, National Assembly employees are  bracing up for a showdown with the management this week.

    Although a much deferred visit by representatives of all Pension Fund Administrators ( PFAs ) has been scheduled for tomorrow, it was gathered that some NASS staff who are aggrieved  by the non-remittance of their pension contributions are now mobilizing to blow open the details of long-running pension racketeering involving billions of Naira between 2007 and now.

    Motivated by anxiety about the likelihood of suffering the same fate as current retirees who now receive less than N10, 000 because of non-remittance of their past pension deductions, some of the staff are said to be pressuring leaders of the National Assembly’s wing of the Parliamentary Staff Association of Nigeria (PASAN) to take a decisive action.

    The Nation gathered that some of the angry staff hope to use Wednesday’s congress of PASAN at the National Assembly in Abuja to mobilize and fix a date for picketing that may cripple work at the complex.

    On May 7, 2013, a similar situation had led PASAN to lead a massive protest over N11 billion salaries and allowances arrears but assurances by the then Senate President  David Mark and erstwhile Speaker of the House of Representatives, Aminu Tambuwal helped douse tensions.

    Although PASAN leader at NASS, Mr. Bature Isa refused to make any comment about the anxieties building up over suspicions about a pension racket and the under-payment of Consolidated Legislative Salary Structure (CONLESS), sources within the union confirmed a readiness to take up issues with management this time.

    “Aside from the CONLESS issue, a lot has been going on in the National Assembly’s pension records since 2007 till date and some top retired officials and a few serving ones may be complicit.

    “Last August, a Level 09 officer from Sokoto who was using a N13 million car was picked up and quietly released by NASS authorities over allegations that N720 million was traced to him and he is still working in the same unit today; nobody probed how much really developed wings through people like him but we only heard that he had paid back some money.

    “There is a general feeling of anxiety and restlessness because many of us now feel that our pension deductions and our future are not safe; how can one retire at Level 12 and be living on only N12, 000 pension merely because he is only getting what the PFA is bringing and nothing from his former place of work?

    “We want PASAN leaders to live up to expectations and also mobilize our retired members to start coming to NASS, to demand for statement of their pension deductions,” the source stated.

    According to another member of PASAN who requested anonymity for fear of serious sanctions by NASS management, two committees that includes some directors at NASS and representatives of workers is working on the issues but workers anxiety remains high because there is a determined ploy to scuttle the committees’ work.

    “We must make effort to ensure that at least 50% of pension deductions is recovered or fully accounted for, under-remittance and non-remittance of pension deductions have been going on since around 2006 and majority of retirees now face a serious situation a most vulnerable period in their lives.

    “The CONLESS arrears that were  approved is supposed to be on a bi-annual graduating basis but they have not been paying such from the National Assembly’s N115 billion allocation.

    “PASAN’ s decision to inaugurate a committee on these issues three weeks ago has compelled the NASS Pension Unit to now produce individual statements from which we now discovered that majority of people had their pensions deducted without remittances being made; you see deduction on pay slips but it is not reflecting on the pension deduction statement that you obtain from the NASS Pension Office.

    “It simply means that they made deductions, pushed it into an account somewhere, in fact, we now understand that they have an escrow account where they put ‘dead’ money; nobody knows how the top directors at the national assembly operate the escrow account.

    “The PASAN congress slated for next Wednesday is primarily to call on union members who are members of the National Assembly’s two committees on pension and CONLESS salary issues to come and brief PASAN members on their discoveries and developments thus far but vested interests at NASS do not want that congress to take place.

    “Each committee comprises three persons from our union and the NASS management has two very senior officials representing them; there are two directors from salary committee and two directors from pension committee.

    “We are hearing that management wants to scuttle next Wednesday’s congress or find an excuse to sack the PASAN Exco out of fear that our any persistence in our ongoing scrutiny could bring headaches for some past and current top officials,” he explained.

    Anxieties over the CONLESS issue and suspicions over the management of staff pensions had been building up for years but on Tuesday, May 7, 2013, hundreds of workers under the aegis of Parliamentary Association of Nigeria, PASAN, National Assembly chapter stormed the complex in protest· over N 11 billion salaries and allowances arrears.

    Assurances by former Senate President, David Mark and erstwhile Speaker of the House of Representatives, Aminu Tambuwal had helped end protests.

    Also, the Senate sitting of Wednesday, May 26, 2010, approved over N 11 billion for the payment of the Consolidated Legislative Salary Structure (CONLESS) in concurrence with the 100 per cent increase in salaries and allowances passed by the House of Representatives on Tuesday, May 25, 2010 for National Assembly workers, including the legislative aides and the staff of the National Assembly Service Commission.

    When contacted, the National Assembly’s Director of Information, Mr. Rawlings Agada said the matter was being unduly blown out of proportion, adding that much of the issues surrounding pensions and CONLESS payments pre-dated his appointment as well as that of the Clerk of the National Assembly.

    He further emphasized that the National Assembly’s management is working seriously with some committees towards resolving all outstanding issues.

  • SSANU set for showdown with varsities over sacked colleagues

    SSANU set for showdown with varsities over sacked colleagues

    The Senior Staff Association of Nigerian Universities (SSANU)  is set for a battle with universities that sacked their members at the staff schools because of the de-harmonisation policy.

    Armed with a favourable judgment from the National Industrial Court (NIC), the union said it was battle-ready to restore its members.

    But  it would spare universities that refused to send SSANU members away during the crisis, it said.

    The union’s National President Comrade Samson Ugwoke spoke  during SSANU, 57th quarterly zonal meeting (Western Zone) at the Lagos State University (LASU), Ojo.

    It will be recalled that SSANU took the sacking of its members at the staff schools to NIC, describing it as a breach of the SSANU-Federal Government 2009 Agreement. The universities-deharmonised SSANU workers, even when the matter was at the NIC, stood their ground, and insisted that the decision was a prerogative of the Governing Council as Federal Government had no hand in it. The union eventually obtained judgment in its favour in December.

    Ugwoke said SSANU was warning the affected universities to recall their sacked colleagues immediately, or risk its wrath.

    Ugwoke said: “The issue is very clear, for those (universities) that do not owe our members, they have done the right thing. But for those who disengaged our members, they must implement the judgment. The judgment is already out and we are awaiting the interpretation from the Office of the Attorney-General.

    He continued: “Already, the Federal Government has set up a multi- ministerial committee from the Ministry of Finance, Budget Office, National Universities Commission, Ministry of Education, Ministry of Labour, as well as Salaries and Wages Commission to look into the implementation. So, whenever the final report comes, we are looking forward to recalling our members, paying their salary arrears, promoting them and paying their promotion arrears.

    “For those universities who listened and obeyed the law by the National Industrial Court, they will have no problem with us, Federal Government knows them.

    “The judgment took place on December 5, last year, and it stated that as far as the (2009) agreement is concerned, wherever you see Governing Council, it implies the Federal Government since government is the proprietor of the universities. So, whether you say ‘Council shall …” or the “University shall …” you are referring to government.”

    Ugwoke was confronted on why SSANU had been at the vanguard of whistle blowing as exemplified in the case of Federal University of Agriculture, Abeokuta; Federal University of Technology, Akure and Lagos State University. But he denied the allegation.

    “Let me correct you by saying SSANU is not a whistle-blowing union, “Ugwoke explained.

    He continued: “Ahead of the whiste-blowing policy, we have always called our management to order.  As it is our tradition, we usually write to the VC when we observe inadequacies and ask him to correct them. We do this because our members are at the centre of administration. But when the money siphoned is colossal and at the detriment of workers and the university, then the next petition will go to the Federal Government.

    “Also note that before these petitions get to the government, the university in question must have ignored our petition or dared us as in ‘what can you do’.  SSANU members are not interested in getting a percentage of the funds in line with whistle-blowing policy. We only want to correct the system. We are not always happy seeing money meant for the university system being siphoned illegally.’’

  • AHEAD OF NIGERIA SHOWDOWN: Cameroon to meet Tunisia March 24

    AHEAD OF NIGERIA SHOWDOWN: Cameroon to meet Tunisia March 24

    •Game holds in Monastir

    Newly-crowned African champions Cameroon have lined up a friendly with the Tunisian national team, Eagles of Carthage, in March ahead of their World Cup qualifier against Nigeria.

    The friendly between the two African powerhouses will take place at the Mustapha Ben Jannet stadium in Monastir on March 24.

    The Tunisian Football Federation announced on their official webpage : “Agreement has just been reached between the Tunisian Football Federation and the Cameroonian Federation for the organisation of an international friendly match on  March 24 at the Mustapha Ben Jannet stadium in Monastir.”

    Before the Indomitable Lions face off against the Super Eagles in August, they will represent Africa at this summer’s FIFA Confederations Cup.

    Nigeria have confirmed a friendly with Senegal during the next international window.

  • Showdown over ’likely’ fuel price hike looms

    Showdown over ’likely’ fuel price hike looms

    There are speculations that the Federal Government is planning to increase the pump price of petroleum products, particularly, Premium Motor Spirit (PMS), popularly known as petrol. But labour has vowed to resist such move, warning that any increase in the price of petrol will result in dire consequences, reports TOBA AGBOOLA.

    A major confrontation between labour and the Federal Government is imminent.
    The National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN), including the Trade Union Congress (TUC), are set for showdown over alleged plot by the Federal Government to increase the pump price of Premium Motor Spirit (PMS), otherwise called petrol.
    Indications that the two labour unions in the oil and gas industry may soon be on collision course with the Federal Government emerged a few days ago when a wave of panic buying of petrol hit some states across the country. There were reports that major petrol stations, including the retail outlets of the Nigerian National Petroleum Corporation (NNPC) had jerked up their pump prices from the official price of N145 to N149 per litre.
    The Minister of State, Petroleum Reources, Dr. Ibe Kachikwu, promptly dismissed the claim, insisting that the Federal Government never announced any change in pump price. He reportedly said later that the government would undertake a review of the pricing template for petrol to forestall a further increase in its pump price.
    Group General Manager, Public Affairs Division, NNPC, Mr. Ndu Ughamadu, also issued a statement in Abuja, denying the report of any pump price increase. “The price is still within the band of N140 and N145 per litre approved on May 11 (2016) by the Petroleum Products Pricing Regulatory Agency (PPPRA), the statutory body in charge of petroleum products pricing,” the statement read.
    He assured marketers and motorists of the Corporation’s readiness to continue playing its statutory role of being the supplier of last resort and ensure energy security for the nation.
    The NNPC further confirmed the availability of over 1.6 billion litres of petrol in the country that would last for 45 days.
    “There was no time the NNPC management met the President to push for a hike in the pump price of petrol to N150 per litre,” Muhammad insisted.
    The Group Managing Director, NNPC, Dr. Maikanti Kacalla Baru, through the organisation’s Chief Executive Officer, Downstream, Henry Ikem-Obih, also denied any plans to increase the pump price of petrol.
    Baru’s position was also supported by his counterpart at the Nigeria Petroleum Marketing Company (NPMC), Mr. Farouk Ahmed, who said his organisation had no intention to double the travails of Nigerians.
    According to Baru, the landing cost of petrol to marketers is N123 per litre just as Ahmed assured that NPMC would ensure availability of fuel at all its retail outlets across the country.
    He, however, lamented that the organisation could not do much to reduce the price of kerosene and diesel since the prices of the products have been deregulated and affected by the current foreign exchange (forex) palaver.

    Marketers seek N165 per litre
    Despite assurances by the NNPC and NPCM that an increase in the price of petrol was not on the table, petroleum marketers are said to have proposed a new pump price of N165 per litre for petrol.
    According to the oil marketers, the present price of N145 per litre is no longer sustainable because of the scarcity of forex to finance fuel importation.
    The marketers claimed that in May 2016 when the price of petrol was reviewed from N97 to N145 per litre, the exchange rate was based on N285 to a dollar, but from June last year till date, the exchange rate had been fluctuating between N305 and N490 to a dollar.
    The marketers, therefore, proposed N165 per litre to cover the cost of forex required for products importation.
    “The recent appreciation in the price of crude oil at the global oil market is another argument favouring the upward review of petrol in Nigeria. The gradual increase in the global oil price impacts the pump price since most of the local fuel consumed locally is imported. Crude oil is refined and imported into Nigeria from other countries, which made the business to be dollarised,” the markerters argued.
    He said despite this, the PPPRA keeps assuring the public that the existing price band of N135-N145 per litre was still okay, therefore, there is no basis for increase in the pump price of petrol.
    Similarly, the NNPC, the oil markerters said, equally assured that there is no immediate plan to increase the pump price of petrol.
    Meanwhile, the price of petrol had reportedly gone up from N145 to N155 per litre in Kano State. The situation is said to have partially shut-down Kano city, with transporters almost doubling fairs.

    Oil workers kick
    NUPENG and PENGASSAN, both under the umbrella of NUPENGASSAN, have warned against any proposed hike in the price of petroleum products.
    According to the unions, the harsh economic condition caused by recession does not support any price increase.
    In a communiqué signed by PENGASSAN President Comrade Francis Johnson, NUPENGASSAN said: “We believe that this is not the right time to review the pricing template of PMS due to the following reason: the country is currently consuming about 40.32 million litres of petrol daily. Prior to now, marketers used to import 70 per cent of petrol while NNPC imported 30 per cent. The major challenge now is that NNPC is the sole importer of petroleum products.”
    The union argued that recession is biting hard on Nigerians hence, any attempt to further review the template will further impoverish ordinary Nigerians, as the additional price will be transferred to the end users of the product.
    The union , however, advised the Federal Government to give forex concessions to oil marketers to enable them import petroleum products and make their margin. This, according to the union, will resolve recent fuel price crisis.
    The union said forex concession should be given to oil marketers to make it easy for them to import petrol into the country so that they can make profit and keep their workforce.
    “We also call on the government to reduce the sundry charges by government agencies such as Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA), including storage charges. This will go a long way to push down the landing cost,” the union added.
    NUPENGASSAN also identified inefficiency as a big challenge. It noted that lightering expenses, which accounts for about N5.08k per litre is an example of such transfer of inefficiency to the consumer. It pointed out that if mother vessels were able to berth on the wharfs that sum would have been saved.
    Johnson said the current margin of N2.00 per litre for storage charge was also inexplicable, adding that there is an urgent need to repair the dilapidated roads scattered across the country, where tankers use for distribution of petroleum products.
    “We suggest that operators of illegal refineries in the Niger Delta should be assembled and trained on better refining. This will create meaningful jobs for them and reduce dependence on imported fuel,” he said.
    The union also suggested that government should block loopholes and abuses in the charges during the collection of petrol imported into the country.
    In addition, the union advised government to set up a Pipelines Protection Agency (PPA) that will guarantee adequate and safe products supplies from the refineries to the various depots in the country.
    “The moribund NNPC depots must be reactivated. The PPA will be saddled with protection of the pipelines throughout the country, with sensors, alarms, well-trained personnel with helicopters and gunships that have night visions to police the right of way,” he added.
    While insisting that the time is not right to review the pricing template of petrol due to the current harsh economic climate, Johnson argued that doing so will further impact negatively on the economy, which the government is trying to pull out of recession.
    “PMS is a stable product in Nigeria and if there is any increase in its price, it will definitely drive up the inflation index. Nigeria depends on the PMS for not only transportation, but to generate power for either home or industrial use, especially the Small and Medium Enterprises (SMEs) which can jumpstart the nation’s economy,” he said.

    TUC warns of consequences
    The TUC has also warned the NNPC not to attempt another hike, saying, doing so will result in dire consequences.
    The TUC, in a statement jointly endorsed by its President and Acting Secretary-General, Bobboi Kaigama and Simeso Amachree, condemned the idea, saying the statement credited to the Group General Manager, Crude Oil Marketing Department of NNPC, Mr. Mele Kyari, that “the nation’s harsh business environment may make it difficult to sustain the current pump price of petrol,” was highly insensitive, describing it as an open invitation to anarchy.
    According to the union, “Congress is surprised that the management of an organisation as important as the NNPC, regularly contradicts itself, with members speaking from both sides of the mouth.
    “The offices of the Minister of State for Petroleum Reosurces and Group Managing Director of the Corporation had earlier said the current price is not sustainable, but assured that there is nothing to worry about.”
    This comment by Kyari, TUC noted, corroborates the general suspicion by members of the public that they were already nursing the idea even at a time Nigerians have been stretched beyond acceptable limits. It warned that the revolution that will follow any further increase will not spare those behind the touted increment.
    “Ours is a country of paradoxes; we export crude and import refined products. Our refineries are still producing far below installed capacity, even with all the reforms said to have been done by this administration. Sadly, all efforts of the organised labour to help by advocating speedy passage of the Petroleum Industry Bill (PIB) have hit the rocks. The only antidote consistently offered by our NNPC big-wigs to the challenges in the oil and gas sector is fuel hike. Very unfortunate,” TUC said.
    The union warned that it would not tolerate inflicting more pains on Nigerians.
    TUC said: “We kick against closure of more factories and we hold the government responsible for insecurity, crime and other vices. They should stop telling us they feel our pains when all they do is to make it worse!.”
    While urging the Federal Government to discard the idea, the TUC said: “We wish to warn and remind all those proposing the ill-advised move that in 2012 the ruling party, then, in the opposition, had told the world that there was no subsidy on oil. We therefore, wonder where this magical “subsidy” that is now being withdrawn by the government came from?
    “We reject the increment because it will translate to unbearable increase in the cost of living in all spheres of life. Failure to adhere to the voice of reason will lead to serious industrial crisis.”

    NLC reacts
    However, the Nigeria Labour Congress (NLC) has urged its members and Nigerians to disregard the speculations that the Federal Government was planning fuel price hike.
    Speaking with The Nation, NLC President, Comrade Ayuba Wabba, said it was not true that the Federal Government was planning anything of such. He said there was a recent meeting between labour leaders and government officials where it was agreed that there would be no fuel price increase.
    “We had a formal meeting in which the marketers, labour union leaders and government officials attended. And government has given us its commitment that there would be no fuel increase. So, I don’t believe in that,” Wabba said.

  • Reps prepare for showdown with Customs boss

    Reps prepare for showdown with Customs boss

    •Panel alleges: Alli ignores invitation on ‘multi-billion insurance fraud’

    The House of Representatives is set for a showdown with the Nigerian Customs Service (NCS) Comptroller General (CG) Col.  Hameed Ali  (rtd) for daring to ignore its invitation to a  panel investigating a multi-billion insurance fraud in Ministries, Departments and Agencies (MDAs).

    It expressed disappointment over the failure of many MDAs to also honour the invitation of its ad hoc committee investigating insurance transactions between 2013 and 2015.

    The lawmakers were particularly irked over the weekend when Ali refused to officially inform the Adekunle Akinlade-led ad hoc Committee on Insurance about his absence at the hearing.

    Ali failed to present the panel with requested full information on NCS’s insurance transactions within the period under review.

    He, however, sent a Deputy Comptroller General (DCG), Human Resources, Warikoru Austin, who came unprepared and  empty-handed without the necessary information requested for by the panel.

    Warikoru, who affirmed rather than swear to an oath with a scripture, further compounded matters when he claimed that, even as head of human resources, he was not aware, neither was it brought to his notice by his subordinates an advertorial by the panel in a national daily containing list of invited  organisations and information required of them.

    Stating that such act of irresponsibility by government officials was regrettable, Akinlade added that letters and physical representation with proofs were made to the headquarters of NCS, yet the Service found it unnecessary to honour the committee’s requests.

    The committee, in response to the DCG, found such claim absurd and made it clear that lying under oath, if found culpable, carries two years imprisonment.

    The committee chairman said legislative committees do not entertain verbal messages in respect of invitations.

    He said: “To entertain verbal messages that the CG has other matters on his desk to attend to is sending wrong signals to Nigerians.

    “We have the mandate of the House to carry out this assignment and we wrote to NCS to that effect. It was advertised in a national newspaper and we sent someone physically.

    “This is unacceptable. The CG must come and make himself available by November 14, else we will use other constitutional means available.

    “We need him to come and clarify issues, for instance, it was discovered that Fortis Insurance brokers underwrote part of cover for NCS, amounting to N105 million. But Fortis management denied it.

    “Meanwhile, we have documents where the money was paid. So, it is important that the head of Customs appears before the committee.”

    Before he was dismissed, Warikoru said though he was aware of the panel’s letter but not the advertorial.

    He said his organisation was still in the process of collating the information requested by the ad hoc committee.

    The committee that also expressed disappointment about the inability of the Federal Housing Authority (FHA) to submit a well-documented presentation on its insurance transactions, noted that it would not wait indefinitely for recalcitrant MDAs to make their submissions.

    The two organisations were asked to appear by November 14 or face further legislative action.

  • Federal Govt, NLC set for showdown over N5.14tr pension funds

    Federal Govt, NLC set for showdown over N5.14tr pension funds

    Federal agencies are considering all options to dance around dwindling oil revenues triggered by tumbling prices of crude at the international market. One of such options is a request by the Mr. Babatunde Fashola, the minister of Housing, Works and Power, to access the N5.14 trillion pension fund to finance critical infrastructure. But, the Nigerian Labour Congress (NLC) has rejected the proposal, reports OMOBOLA TOLU-KUSIMO

    Going by the words of Finance Minister Mrs. Kemi Adeosun, the Federal Government is in talks for concessionary loans worth $3.5 billion from the World Bank and African Development Bank the (AfDB) to finance this year’s budget.

    But, the minister says no formal request has been made to the two international financial institutions ($2.5 billion from World Bank and $1 billion from AfDB). She said the government will tie the facilities to specific capital projects after the approval of the National Assembly.

    With the budget estimate still undergoing scrutiny, the Minister of Works, Power and Housing, Mr. Babatunde Fashola, has hinted of a plan to access the N5.14 trillion pension funds to develop critical infrastructure.

    The hint came on the heels of a presentation by the Director-General of the fund’s custodian – the National Pension Commission (PenCom) – Mrs. Chinelo Anohu-Amazu at the Villa during a meeting with President Muhammadu Buhari and all the 36 governors.

    She told the chief executives that as at September, last year, about N4 trillion was available for infrastructure development out of theN5.1 trillion pension fund. According to her, the fund remains an untapped potential.

    A World Bank report has said that Nigeria’s infrastructural deficit requires a yearly investment of $15 billion (about N2 trillion) for the next decade in critical areas like housing, transport and power sectors.

    In times past, pension funds were invested in equities and bonds and the chunk held in government bonds as against  the real sectors such as roads, bridges, hospitals, rail, airports, fee paying universities and prisons, among others.

    In other climes, the economic strength of funds from contributory pension schemes play pivotal roles, especially in helping many countries like Canada, Japan, Australia and South Africa, among others, to aid economic growth and development.

    Within a decade, pension fund witnessed phenomenal growth from a deficit of more than N2 trillion (about $12.9 billion) in liabilities in 2004 to over N5.14 trillion in total assets as at October last year.

    The dilemma has been the inability of the Federal Government to access the funds owing to the strict regulation guiding Contributory Pension Scheme (CPS) to avoid bad management, corruption and policy inconsistency that characterised such schemes in the past.

    But, the dilemma has been compounded by the Nigerian Labour Congress’ (NLC’s) rejection of any further involvement in the application and management of pension funds. The organised labour has threatened a showdown should the government tamper with the scheme.

    Managers of the funds, including PenCom, the Pension Fund Administrators (PFAs) and Pension Fund Custodian (PFCs), have insisted on the creation of investable vehicles like infrastructural bonds and equity with low risk and the formulation of the right policy to provide a conducive ground rules.

    Such measures, when taken, will enable the government to harness the exponential growth in the funds and channel it to achieve laudable infrastructural and structural transformation.

    The question is how does the Federal Government meet these conditions to access the funds for the common good?

    The pension funds are the proceeds of eight per cent deductions from employees’ salary and 10 per cent of employee’s total monthly emolument contributed by the employer, based on the requirement of the Pension Reform Act (PRA) 2004 as repealed by PRA 2014.

    Experts argue that investing the funds in infrastructure development will yield more returns on contributors’ individual savings.

     

    Fed Govt’s call for funds

    The Minister of Power, Works & Housing, Mr.Babatunde Fashola has suggested that releasing the funds for investment in critical areas of the economy will be more beneficial.

    Fashola, who made the suggestion in a keynote address he delivered at a retreat on “Nigerian Pension Industry Strategy Implementation Roadmap”, said he had foreseen a future for Africa, led by Nigeria, using the resources of the people to build a future for the people.

    His words: “For over three decades, we have mouthed the need to diversify our economy in order to open up more sectors for productive activities, income, economic growth and jobs. But, we failed to follow through because of oil resources. It was quick and bountiful income even though there were boom and burst cycles.

    “But today’s reality is that we are in another cycle of burst. Oil prices have crashed from over $100 per barrel, and is now hovering around $30 per barrel and there is a real chance that it will fall lower.

    “Put very simply, our main source of revenue has taken a big blow. This household has lost its bread winner. However, it is not without options; it has assets; it can raise money; it has savings, such as the private money belonging to pensioners, but it cannot be used like oil money. Whatever is used must return. This calls for a new attitude. There is no free money.

    “After three decades of prevaricating about diversification, diversification has walked into the front door of the Nigerian household. We must either embrace it with a new attitude or idle in agony and anguish, until when hopefully the price of oil will rise again, as it will surely do.

    “The pension funds, which are under the management of PFAs, will not go into roads, rail, housing, hospitals or universities unless we change our attitude. Perhaps the appropriate starting point will be to acknowledge that pension reforms are just beginning to gain foothold across Africa in jurisdictions like Nigeria, Ghana, Botswana, Kenya and Uganda – to mention a few.

    “But perhaps, the biggest and most advanced of the pension funds, especially in sub-saharan Africa, is the South African pension fund. While the sizes of these funds are happily growing, and the number of contributors is increasing, the impact in the quality of life on the continent is not yet anywhere near minimum globally acceptable standards.

    “The reason is not far-fetched once we take a look at where the funds are being invested. The funds are largely invested in equities and bonds, and in the case of Nigeria, so much of it is held in government bonds.

    “But, while these funds are not serving the real sector, it is tempting therefore to argue that although the pension funds contain contributions of the working class, they do not as yet penetrate enough into giving value to the lives of the contributors.

    “Across Africa, there is a visible infrastructure deficit. No country-to-country rail service across most parts. The highways that connect most of the countries such as in the ECOWAS (Economic Community of West African States) region are in very poor shape and these are roads that can easily be built, and tolled to earn income to secure the return of pension funds invested in building them. Air travel is no better. Airports are not of the quality of design and construction or efficiency that is obvious in Europe. These are places where pension funds can be impactful.

    “It must be mentioned of course that the attitudes that once mired pension funds management in scandals and lack of transparency, had led to very stringent legislative interventions that limited the scope of activities that pension funds could participate in.

    “For example, until recently, the Nigerian pension fund law limited the contributor from using part of his pension to secure a mortgage. How, one may ask, is a person supposed to finance or part finance ownership of a home if he cannot use his own savings?

    “In contrast to the mismanagement that used to be the story of our own pension funds, the most prolific of the pension funds in Africa, which is the South African Public Investment Corporation (PIC), has over $150 billion assets under management.

    In Nigeria alone, they have $289 million in Dangote Cement , $98 million approved but yet-to-be drawn for Notore Fertilizer, $230 million in MTN Nigeria, $270 million in Erin Energy (formerly CAMAC) and $150 million in Mainstream Energy Solutions (in the power sector of Nigeria).

    “By contrast, the question to ask is what is the ‘home based’ pension fund doing? If as I have shown, the visiting pension fund from South Africa has a total of $897 million in our economy.

    “The answer is obvious, that is why we are here, that is why my host in their invitation spoke of ‘…suitable investible vehicles with low risk profiles and sufficient comfort…; as the reason that ‘…continues to hamper the drive to make visible economic impact’ in the letter to me. But, I can say that those investible vehicles exist.”

    The minister said such funds should be invested in roads that can be tolled, housing, the Fourth Mainland Bridge, coastal road linking several states from Lagos to Bayelsa; the new seaport in Lekki and Badagry, the refinery by Dangote, Ajaokuta Steel, a petrochemical plant in the Niger Delta; the broken textile mills in the North and South of Nigeria that require new equipments and disciplined fiscal, technical and organisational management.

    “Such funds”, he went on “could also be used to upgrade prisons in each of the six geopolitical zones that can help strengthen our justice system and decongest the colonial prisons we have kept as relics of our own sense of justice; in hostels for students in the universities, embedded power plants in the universities, most of which have teaching hospitals and provide an opportunity to power education and healthcare and the list is endless.

    “It is as long as we can imagine and the time for it is now. This is the biggest opportunity to act towards diversification rather than sloganise about it. This is the time to show that our country and our national economy is bigger than the challenges posed by the dwindling oil prices.

    This is the time to diversify and change the face of our economy once and for all. But, the risks that stand in the way are caused by us and they must be changed by us. My recommendations which I concede may not be exhaustive, but which I believe will begin our journey of change that will reduce the risk and increase the appetite of our local pension fund administrators to get their feet wet and test the waters in the place we call home.”

     

    NLC beats the drum of war

    Following the minister’s proposal to PenCom and other operators to release the funds to develop infrastructure, the NLC has rejected the deployment of the pension funds for infrastructure. It has threatened a showdown.

    In a statement issued by Secretary-General, National Union of Railway Workers (NUR), Mr. Segun Esan, who spoke for  NLC President  Joe Ajaero titled: “Pension Fund for Infrastructure Development: A Recipe for Crisis”, the president stated the passage of the comprehensive Pension Reform Act (PRA) 2004 was heralded by many as a watershed in the nation’s pension administration.

    It reads: “All over the world, pension funds are shielded from the vagaries of the market and the political arena. Its deployment is rather towards activities that would not compromise its value both qualitatively and quantitatively.

    “This is borne on the premise that anything that compromises its value puts into jeopardy the lives of many Nigerians that retire daily from active work life and have placed enormous hope on the proceeds collectable from the fund which they have toiled day and night to contribute to since their active working days. The capacity of the fund to deliver on workers expectations at all times and in all situations must be assured and held sacrosanct by all especially policy makers.

    “It is on this foundation that the NLC views with utmost anxiety the proposal by the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola that pension funds should be used for infrastructural development.

    “This proposal is not only unfortunate but also constitutes a threat to the future of Nigeria workers. We have not seen the details of that proposal and we hope that the minister was just flying a kite or testing the waters and he is therefore not serious about pursuing it. Nevertheless, we make haste to say that this is a very dangerous proposal that exposes and threatens the security and future of Nigerian workers.

     

    •To be continued

  • Army/El Zakzaky showdown

    Let me begin with nostalgia about beautiful, peaceful Nigeria of the 1970s where religious tolerance was manifest, violent cults were unknown and one can travel any time, even all night, without any fear. Today, Nigeria has changed, for the worse, as extremist religious dissidents, communal warriors, violent criminals and other sundry deviants ravage the land.

    One recent incident brought these nostalgic thoughts into bold relief: the army’s confrontation with Sheikh Ibraheem El Zakzaky’s Islamic Movement in Zaria, Kaduna State between December 12-14, 2015. It highlighted the near state of anomie in the land in which various dissident groups have carved out ‘kingdoms’ over which they preside, according to their own rules.  This is why a religious group could so brazenly bar the country’s Chief of Army Staff, Lt. Gen. Tukur Buratai,   from ‘trespassing’ over ‘its territory’!  It is the height of provocation, an arrogant repudiation of state authority denying the army chief’s official entourage passage on a public road. We cannot mince words or become mealy-mouthed in this kind of encounter.

    For law and order to be restored in this country, the authority of the state must be asserted at all times. Revelations since the encounter indicate El Zakzaky runs a fiefdom in Zaria with non members of his movement being literally ‘hostages’, which informed the jubilation by neighbours who felt liberated by the army’s showdown with the sect. That the group had successfully intimidated the former Kaduna State governor, Ramalan Yero, who was denied passage on that road earlier in 2015, must have emboldened El Zakzaky’s faithful to attempt to face down the army chief. It amounted to El Zakzaky, wittingly or unwittingly, inducing his flock to commit suicide. Spiritually and psychologically enslaved religious fanatics are prone to this type of tragedy. An American Christian evangelist had, decades ago, taken his flock to Guyana in Central America and induced them to drink cyanide, a poison, to go to heaven– of course, they all died.

    In relating with the military, we need to understand the mentality of army personnel – soldiers, especially infantry men and commandos, are trained to kill and against the background of humiliation recently suffered by the army from the Islamist Boko Haram insurgents, the El Zakzaky dare would seem to the soldiers one more humiliation by a religious group that cannot stand and should not stand.  I believe the greater blame should be on the leadership of the Islamic Movement for putting its followers in harm’s way. For El Zakzaky who reportedly lost three sons in an earlier encounter with security agents, one would expect some level of soberness. We need to ask: What does the Islamic Movement stand to gain in its mindless, avoidable confrontation with state authorities? How do such confrontations improve their religious purity?  What is the value-added to the Movement?  El Zakzaky, we are told, is a First Class graduate of Economics from Ahmadu Bello University, Zaria. Brilliant guy. Why then has he chosen this path?  Are there no people such religious leaders like El Zakzaky respect who can be a moderating influence on them?  El Zakzaky reminds one of Sir Arthur Conan Doyle, celebrated author of the classic Sherlock Holmes series who once noted, with respect to Prof. Moriaty whose criminal exploits became a European nightmare, that when a brilliant mind turns anti-establishment, to crime, he is most dangerous.

    One wonders whether at any point in time El Zakzaky takes the sanctity of life of his followers into consideration. Why would a leader with such faithful followership, create a situation where such followers become cannon fodder in his confrontation with the state?  An interview in the Nigerian Tribune of Jan. 9, with Isa Waziri Gwantu, a mass communication lecturer at Ahmadu Bello University, Zaria and an El Zakzaky devotee, is illustrative of the frightening level of indoctrination and mindset of those hooked on the opium of religion. Asked why the sect is always having problems with security operatives, Gwantu asserted:  “it is not unconnected to the war declared on Muslims all over the world by ‘globalists’. It is not a secret that the Nigerian security agencies are proxies of the forces behind the ordeals of Muslims in different parts of the world like Palestine, Iraq, Syria, Libya, Yemen, Somalia and Myanmar”. Does this not smack of El Zakzaky followers being brainwashed to perceive security operatives as enemy forces that must be resisted?

    The army has been accused of overkill in its reaction and various bodies are putting the military on the spot. While we await the outcome of the investigations and probes, the public and its component groups must appreciate that in a Nigeria edging towards a lawless jungle, the essence of government is to maintain public order, a responsibility of armed security agencies, and people are better advised not to engage in conduct bordering on anarchy that will incur serious repercussions. It is a practical reality. The army, speaking through the General Officer Commanding (GOC) One Mechanised Division, based in Kaduna, Maj. Gen. Adeniyi Oyebade, at a press conference on January 6, had been unequivocal that it had no apology for the encounter with the Islamic Movement. The GOC had declared: “ The so-called clash was avoidable, the Nigerian Army has no issues with the Shi’ite members … We have problem with those who choose to challenge the authority of the state, who do not recognize the laws of the land…So, in the cause of doing our work we make no apology to any group”. The army, in the circumstances, cannot be expected to surrender to orchestrated public opinion, including those of bleeding heart Columnists and editorial writers, who often fail to call renegade groups and neo-anarchists to order but would rather make excuses for these public-disorder elements. This disposition cannot foster the peace we all so earnestly desire in the land.

    The showdown between the Islamic Movement and the Nigerian Army has lessons for the government and members of the public. A major function of government is surveillance of the environment which entails monitoring activities of groups –religious, communal, cultural, ethnic, professional as well as individuals. Religious leaders should, particularly, come under continuous surveillance, because these leaders have a hold on people’s hearts and emotions that no other institution of society commands. This monitoring is to preempt deviant and hate preaching. But government must also strive to regain people’s trust by being pro-people in its policies. Many perceive government as an oppressive institution from which they escape to seek spiritual refuge in the religions which makes it possible for religious leaders, Muslim and Christian, to play God.

    As for the public, we need to relate with armed security operatives with caution and restraint considering that are often irritable and seem to be permanently under stress.  That is the reality we have to deal with, for now, till our security agencies become more civil. To tauntingly provoke or confront an armed person is suicidal.  Period.

    • Dr. Olawunmi, a Senior Lecturer, Department of Mass Communication, Bowen University, Iwo is former Washington Correspondent of the News Agency of Nigeria (NAN).

  • Youth threaten showdown over Bonny Ring Road

    The youths of Bonny in Rivers State under the aegis of Bonny Youth Federation, have threatened to shut down all the oil facilities and companies in the area over lack of developmental projects.

    The leader of the group, Mr. Simeon Wilcox, a lawyer, at a news conference in Port Harcourt, the Rivers State capital, lamented that 20 years after, the Bonny Ring Road remains uncompleted.

    He said if the abandoned ring road is completed it would link the satellite towns and communities in order to facilitate economic activities within the communities.

    Wilcox noted that the youths would not take it for granted anymore with Shell Petroleum Development Company (SPDC) and other companies operating in the area, if their policies cannot be favourable to the host communities.

    He further stated that the youths are going to sustained protest against SPDC and other companies operating in the area if after two weeks of this press briefing nothing happens.

    “We gathered here today in order to highlight some of the incidences that have brought the gross neglect and blatant disregard for the community. We are not happy that in spite of the economic position of Bonny its people are still living in abject poverty.

    “Bonny has earned the reputation of being one of the most peaceful communities in Rivers State. This is in spite of its socio-economic difficulties such as unskilled workforce, massive youth’s restiveness, agitation, infrastructure deficit and insecurity.

    “We are calling on the stakeholders and well meaning Nigerians to know that Bonny youths will always follow the path of peace and champion the mechanisms that will enhance the peace and harmony enjoyed by the people of Bonny Island.”

     

  • Reps threaten showdown over PIB

    Reps threaten showdown over PIB

    • Claim report is shrouded in secrecy

    In what looks like a desperate attempt to save face, the House of Representatives’ Adhoc Committee on the Petroleum Industry Bill (PIB) is set to lay the report of the contentious PIB on the floor of the House today.

    The Report, which the House Spokesman, Mohammed Zakari claimed was ready in a briefing on 16th October 2014, is being laid today as the House prepares to proceed on break for the forthcoming general elections.

    But the laying of the Report is likely to cause more problems than it will solve as members are angry that the members of the ad hoc committee is proposing laying a report that has not been sighted by House members prior to the laying.

    The Report, which emanated from a technical committee is already causing heated argument between members of the Adhoc committee headed by Mohammed Bawa and members of the House.

    A meeting meant to hold yesterday became a subject of controversy as members claim they went to the venue in the New Building extension numerous times and met no one. The meeting was meant to discuss issues in the report, especially the recommendations.

    But a consultant of the adhoc committee claimed that the report had been distributed three months ago to the offices of members. However, members insist they have not seen any report and that any attempt to railroad them into accepting a predetermined output from anyone would be met with stiff opposition on the floor.

    The irate members wanted to know how the report was generated, especially as members had no input; but were told that the report emanated “from the technical committee.”

    The explanation did not go down well with a member, who is also the chairman of a committee. “What technical committee? I have been treating issues that are in the PIB for the past three years in my committee, I should have an input into the report. I have been to the venue of this supposed meeting numerous times, there was no one there,” he snapped.

    Another member claimed that while on his way to the meeting, he was told that the PIB meeting had ended.

    “To me, the whole thing is looking to be a fraud because there are other Committees that must have one or two input in the report.

    “For instance, issues of environment, climate change are key features of this Bill and to have cut out these critical Committees is questioning the credibility of the report.

    “I can assure you that a big surprise would be waiting for them should they try to lay the report tomorrow (today) because none of those critical Committee were carried along in the preparation of the report.

    “How is it possible that members that were not consulted are expected to vote and hurriedly pass the report on the floor. How can you meaningfully contribute to the consideration of the report?”

    Recall that because of the importance attached to the bill, regional public hearing were held for the PIB in which all the geo- political zones in the country made inputs.

    The delay in the presentation of the Mohammed Bawa- led ad hoc committee’ report has been a subject of debate and great consternation amongst Nigerians who are fast losing hope on the passage of the bill before the expiration of the 7th Assembly.

    The report has also been tainted by a PIB cash-for-passage allegation which the House has debunked.

  • Air traffic controllers threaten showdown

    Air traffic controllers threaten showdown

    Members of Nigerian Air Traffic Controllers Association ( NATCA) have threatened to embark on industrial action next week over failure by the management of Nigerian Airspace Management Agency ( NAMA) to implement the agreement reached on the welfare of its members as well as replacement of ageing air navigation equipment .

    A statement signed by the National Secretary of NATCA , Olawole Banji said members  will down tools effective March 15,2015.

    Banji said NATCA would not inform the management of its  resolve to proceed on strike adding that it has given the NAMA management two weeks to allow for the conclusion of approved process of the proposed harmonised allowances for its members agreed upon on January 18 2015.

    NATCA had in the last weeks threatened to embark on strike following the inability of NAMA management to implement all the agreements reached.

    The Controllers were agitating for improved working conditions especially replacement of obsolete equipment at various locations across the country and their welfare enhancement.

    Meanwhile, the Aeronautical Information Service (AIS ), the body charged with the responsibility of generating information to pilots and the public recently threatened to confront the management of NAMA for playing politics with professional issues in the organisation .

    Babatunde Shittu, AIS president,  in an interview said  the management had relegated its members and make it look as if only NATCA is the professional body in NAMA always agitating for improved welfare  without considering other bodies.

    According to Shittu: “In AIS Manual Document 8126, Chapter 3, Paragraph:  3.1.2.3 refers: AIS officers should be remunerated at least at the same level as personnel in the AGA, COM and ATS Division.’’

    AIS expressed  with great concern and disappointment that the Executive Council (Exco) and the entire Congress of the Aeronautical Information Services Association of Nigeria (AISAN), the umbrella professional body that represents the interest of AIS Personnel in the country, kick against the current harmonization processes being offered by the committee as the said ongoing negotiation is tailored to particular favoured group in the Agency.”

    He warned that they will soon kick start their agitation should government failed to carry  them along.

    “Harmonization Committee, it clearly demonstrate that AIS is not recognised in Nigerian Airspace Management Agency (NAMA) as a professional body, and also observed with frustration that AIS is seemingly neglected to the extent that we are hardly carried along in decision making  that directly or indirectly affect us”

    We are now appealing to  NAMA Management, to go the extra mile to give AIS smooth landing by meeting the standard set by ICAO.

    Shittu called in the management of NAMA to as a matter of urgency train the remaining 122 AIS Officers who were yet to be trained as International Civil Aviation Organisation ICAO requires, to enable them perform optimally.

    He also demanded the  activation of Basic Cartography and GIS Course in Oyo: AIS/Aero Chart Officers were last trained in the program five (5) years ago and to reactivate the course as this will improve the briefing skill of its personnel.

    The AIS president explained that transformation from Aeronautical Information Service to Aeronautical Information Management was imminent; hence the necessity for this training cannot be over emphasised adding that the sensitive training has been abandoned  for over four years calling for the training of the remaining 65 AISOII Officers in order to be integrated properly in the department.

    He lamented the dearth in AIS personnel and the need to address the issue of their professional allowance and that of Airmen.