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  • Adoke’s counter-narrative

    When people aspire to high office, perhaps, they think about the opportunity to make a difference, for good or for bad. For those that get the opportunity, the experience lasts for a lifetime. For Mohammed Bello Adoke, SAN, former Attorney General of the Federation, AGF, his experience as a public servant brought him career fulfillment and status as a reformer during his time in office. That experience has now left him with a seemingly endless fight for survival and vindication.

    In his new book, Burden of Service: Reminiscences of Nigeria’s Former Attorney-General, which hit book stalls in Nigeria on September 16, Adoke bares it all. He lets us into his world, chronicling the events and emotions that preceded his appointment into the number one legal office in the country. He offers insight into his thought process as AGF and renders an insider perspective on many events that took place during the tenure of former President Goodluck Jonathan. Most interestingly, Adoke poured his heart out about his involvement in the OPL 245/Malabu Oil saga that is now drawing critical international attention.

    Although Adoke states that his book is not just about OPL 245, it is that subject that will be the highlight of the book for many of his readers. The intricacies of the deal reached between oil giants Royal Dutch Shell and ENI of Italy on the one hand, and the Federal Government of Nigeria and Malabu Oil and Gas Limited on the other hand, are now being unravelled by multiple authorities across international borders. The Economic and Financial Crimes Commission, EFCC, has also launched its own investigation into the deal.

    A brief history of the deal, from all accounts, begins with late Sani Abacha’s “Indigenous Exploration Programme”, which sought the allocation of oil blocks to indigenous companies. This included the potentially very lucrative OPL 245, which was allocated to Malabu Oil and Gas Limited in 1998 for a concessionary fee of $20 million.

    Enter Olusegun Obasanjo’s civilian government in 1999. Former President Obasanjo issued Malabu Oil and its technical partner, Shell, an Oil Prospecting Licence, OPL, for the oil block, based on a Joint Operating Agreement between the two. Obasanjo, who was Minister for Petroleum in his government, revoked the license five weeks later, despite assurances given to Malabu Oil and its partner.

    In 2002, Obasanjo’s administration awarded a Production Sharing Contract to Shell for the same oil block for a signature bonus of $210 million. Malabu Oil kicked, dragged the House of Representatives into the matter and went to the courts. Obasanjo’s administration was forced to settle and recognise its claim by re-allocating the oil block back to Malabu Oil, despite having signed a new agreement and received $1 million from Shell. That settlement was reduced to a consent judgement of the Federal High Court in 2006. It was then Shell’s turn to raise hell, and it opened investor-state arbitral proceedings against Nigeria in 2009.

    While shopping for technical partners, Malabu Oil approached ENI. ENI was interested in partnering with Shell on the project. Malabu’s refusal to work with Shell, and Shell’s proceedings against the government over its own claim to the oil block created complications that necessitated the government stepping in, according to Adoke, to facilitate some kind of arrangement. In the end, Malabu agreed to be paid off with about $1.1 billion for the oil block and the federal government agreed to receive the funds on behalf of Malabu Oil in an escrow account controlled by the government. The government also received the full signature bonus of $210 million. According to Adoke, the Federal Government, and his, involvement was limited to facilitating this deal in 2011. The deal apparently saved the country from a possible multi-billion dollar award in Shell’s investor-state arbitration, as well as solved the complication that had been inherited from the previous administrations.

    The story of OPL 245 is a tricky, winding tale, made more complicated by the emergence, from the woodwork, after the deal was concluded, of two ‘brokers’ that facilitated the deal and representatives of the Abacha family claiming a stake in the deal. Emeka Obi and Ednan Agaev, the ‘brokers’ who claimed a combined sum of $290 million from Malabu, have now been convicted in absentia by English courts.

    Dan Etete, former Petroleum Minister in Abacha’s regime and alter-ego of Malabu Oil, is the central character in the whole affair. He is also on trial in Italian courts, and is thought to have been the major beneficiary of Shell’s payment, along with many Nigerian government officials. There are simultaneous investigative proceedings and prosecutions concerning the deal in Italy and Switzerland, in addition to the earlier convictions in England and possible suits in the United States and Netherlands.

    Adoke finds himself caught in the middle of the Malabu storm because he was AGF at the time funds were disbursed to Malabu, or at least, that is what it looks like. His predecessors in that office, post 1999, were involved in one way or another in the eventual deal that legalised, on the face of it, the disbursement of $1.1 billion to Etete’s Malabu Oil. Surprisingly, only Adoke has now somehow been paired with Dan Etete by the EFCC in its investigations and prosecution in Nigeria. An arrest warrant has been issued for the pair.

    If Nuhu Ribadu, the pioneer chairman of the EFCC was described as the attack dog of the Obasanjo regime, Ibrahim Magu, the current acting chairman of the commission, is a raging bull that is difficult to control, even by his employer. He fixates on a target and embarks on a crude and ruthless campaign of what more easily appears to be persecution, rather than prosecution, in most cases. That style, of media persecution and image bastardization of persons yet to be adjudged guilty, is an EFCC trademark that has been escalated under Magu.

    Buoyed by a public scarred by corruption and therefore easily taken in by the slightest whiff of a financial scandal, the EFCC milks the mills of public opinion with a professional touch, on the way to delivering shoddy prosecutions that rarely lead to any satisfactory results. The agency’s specialty is indiscriminate raids and confiscation of property even while cases are pending in court. Nigeria truly needs a determined anti-graft agency, but not at the cost of reason, procedure and individual rights.

    Adoke makes many assertions in his book, including some that pointedly accuse Magu of persecution. However, his principal claim on the question of OPL 245 is that he had no interest in the deal outside his duty, in his official capacity as AGF. Charges drawn against Adoke have been found lacking in substance by Abubakar Malami, the current AGF, and same has been transmitted to the EFCC. One would not attempt to interfere in a lawful investigation and prosecution, but the seeming focus on the former AGF in a sea of possible suspects with a greater involvement is a quite telling.

    There is of course the question of why the ex-AGF has not come to defend himself at the courts. It is an important question. In the light of his account and many other circumstances related to this case, his reluctance may be understandable. All the things wrong with the OPL 245 deal happened behind the scenes, and one can argue that Adoke’s role was not behind the scenes. However, the government appears to need a scapegoat and Adoke is in mortal fear that it might be him. Quite unfair.

    There is undoubtedly something fishy about the deal, with the convictions and sustained trial on-going in the case in other jurisdictions. The possible implication of very powerful Nigerians in the scandal puts a dangerous twist to it. With the alleged related assassination of at least one person, a Corporate Affairs Commission official, which was implied in one foreign media report, the case is no ordinary case. Without speaking to Adoke’s guilt or otherwise, his cautious and continued exile seems to make some kind of sense. If for nothing else, his book portrays someone desperate to reclaim his good name, rather than melt into the background, in guilt.

  • Expensive tourism

    Of course, medical tourism doesn’t come cheap. But the information that Nigerians spend more than $15bn yearly to seek medical treatment abroad shows just how expensive medical tourism can be.

    An American physician, Stephen Hunt of the University of Pennsylvania, gave an insight into the considerable amount of money Nigerian leaders and other individuals spend annually on medical tourism. He told journalists at the University of Ibadan, Oyo State, on September 14:  “We are in the Department of Radiology, UCH, and had a conference in UCH last week where there were physicians from the US to start interventional radiotherapy training. More than $15bn is spent yearly by Nigerians to travel abroad for medical reasons. We can reduce that if people are trained here so they won’t have to spend a lot of money. When they travel, they are not just paying for the medical service; they are also paying for food, accommodation and flight. It won’t be that expensive if it can be treated in Nigeria.”

    The situation is complicated by the reality that a large number of medical doctors continue to leave the country for greener pastures abroad because of the poor healthcare system, demoralising remuneration and deteriorating hospital facilities. The exodus of doctors has escalated in the last two years, according to an investigative report. Nigerian doctors continue to pursue professional and material fulfillment in the United States, the United Kingdom, Canada, Saudi Arabia and Kuwait.

    For example, Chairman of the Nigerian Medical Association (NMA) in Lagos State, Dr Saliu Oseni, was quoted as saying: “It will be difficult to give a total figure of doctors that have left the service of the Lagos State Government since 2017, but to be conservative, no fewer than 50 to 60 doctors left the system every six months. Some of them leave for greener pastures abroad.”

    Also, in Kaduna State, a 2018 survey showed that, in less than a year, no fewer than 21 doctors left at least one hospital for other countries, or greener pastures elsewhere in the country, because of bad conditions of service. The NMA First Vice-President, Dr  Mingeh Tijo, said: “On the average, studies have shown that about 700 doctors leave the country every year.”  Public hospitals, which serve the majority of the population, are at the centre of the crisis.

    There may well be a connection between medical tourism by Nigerians and the remarkable exodus of Nigerian doctors. Medical travellers seek a better health system because of their health needs, just as medical doctors seek a better health system because of their professional and material needs. Those who seek healthcare abroad believe they would benefit from “most advanced technology, better-quality care for medically necessary procedures and quicker access for medically necessary procedures.” A healthcare system that cannot sustain doctors is likely to encourage those who need healthcare to look elsewhere.

    It is said that health is wealth. This explains why Nigerian medical travellers are willing to spend so much to get healthcare abroad, particularly when they can’t get the desired healthcare in the country. It is disappointing that the authorities have allowed this situation to persist. Indeed, people in power encourage medical tourism by their bad example of travelling abroad for medical purposes at the slightest opportunity.

    The exodus of doctors is a sad reflection of the state of public hospitals in the country. The situation calls for increased government expenditure in the health sector to provide an enabling environment for the country’s doctors. It also calls for a better economy. It is a shame that Nigerian-trained doctors are forced to take their expertise to foreign lands to the detriment of their compatriots.

    The development of the health system is a critical factor in the country’s pursuit of progress. There is no excuse for neglecting the health system.

  • Welcome to the real world!!!

    Certainly, you must have heard this statement a few times. Perhaps it was said to you or to someone else but the connotation is usually the same. It is usually said in the context of someone receiving a rude shock from life’s experiences. People welcome him or her to the world of reality, as though such a person has just awoken from a fantasy world.

    Michael was desperate for an admission into higher institution. He often thought he would do anything not to stay home for another year. Eventually, he was admitted and then realised that getting good grades was another matter entirely. While trying to relate with complex courses and more complex lecturers, people told him, “Welcome to the real world!”

    He worked hard until he was in his final year. Suddenly, he got so tired of school that the few weeks till graduation seemed like eternity. Michael couldn’t wait to see the “real world”! Well, he graduated but stayed home for a while. Soon, his parents began to ask him what his plans were! “I thought they missed me. Shouldn’t they let me stay around without being bothered?” He thought to himself. Few days later, Michael wanted to enjoy a day out with his friends so he asked his parents for money but they said, “You are a graduate now you know? You should earn your own money.” Welcome to the real world!

    Fed up of his parents’ fuss, Michael decided to get a job. “I am a graduate after all”, he thought, “there will be something out there for me”. When he went searching, however, he met several graduates who had been on the street for years looking for a job. He even saw someone who graduated the year he matriculated. And they all told him, “Welcome to the real world!”

    But what does this really mean? What is this real world?  A world full of failed dreams and hopelessness? Why do people feel proud to share stories of woes and failures? Why do they seem eager to tell someone attempting to succeed about the number of years they spent trying until they failed, and why the newcomer should also stop trying? Why wouldn’t anybody tell Michael about the rich and the successful in the land? Was it because they didn’t want to have false hope or was it because they feared he might actually succeed and leave them behind?

    The world was the way it was when Bill Gates became one of the richest men on earth. As a man thinketh in his heart, so is he. What you see in your world is what it will be. Think about it; people always say things are impossible until someone achieves it. Trying and failing is not the worst thing that can happen to us; the worst thing is not having the courage to try at all. Most successful people have catalogues of failures to show but they didn’t stop there. While it is true that there are several examples of failed dreams around us, there are also several achieved dreams too, only if we choose to look critically. He who explains success away as others’ birthright will miss success.

    Some people believe that dreams can be stupid. They say dreams are not realistic. Of course, dreams are not realistic! They are larger-than-life. If dreams are realistic, they won’t be dreams! Dreams are projections into a desirable future. Your dreams must be bigger than your present or your future is in trouble.  Dreams are cheap. It doesn’t cost a thing to dream of yourself being the best person in your business. In fact, you can do it right now. That is, however, the first step. That you can dream means you have liberated yourself from the limitations of the “Real World”. You must now wake up and purse that dream with everything you’ve got until you achieve. Never mind people, never mind situations, just go for it.

    Thanks for reading my article today. I would really love to hear from you. So, do share your views with me by sending SMS to 07034737394, visiting www.olanreamodu.com and following me on twitter @lanreamodu. Remember, you are currently nothing compared to what you can become. This can be your year if you want it to be!

     

  • Micro pension: Contributors’ lifestyle may delay scheme

    The need by women in the informal sector to save to buy gold for collateral for loans or resell when in need of cash may  threaten the micro pension plan.

    Also, potential contributors who bought land and properties in instalments for their long-term cash-flow generation and the culture of reliance on children for old age support may be another problem.

    An actuarial scientist and chartered insurer, Dr. Pius Apere,  stated this at a pension conference in Lagos.

    Apere, who is also the Managing Director of Achor Actuarial Services Limited, said informal sector employees might have other long- term investments generating income like dividends.

    He stated that the low uptake of Micro Pension Plan (MPP) of the Federal Government is as a result of its voluntility, low public awareness and negative perceptions (lack of confidence) about pension products and fund management with low pension benefits.

    He said there was the need for enlightenment to create awareness of old age risks and benefits of saving for old age over bank savings account.

    He however noted that the 40 per cent withdrawal option is a good incentive to attract micro pension contributors.

    Speaking on the administration of micro pension, he said high capital investment in IT infrastructure (a driver for financial inclusiveness) is needed to mobilise contributors at grassroots with high volume of records keeping required.

    He said: “High tendency for contributors to operate Retirement Savings Account (RSA) as bank savings account due to over flexibility of the contingent withdrawal option, is the leading administrative hassle for the Pension Fund Administrators (PFAs).

    “To reduce administrative hassles, contributors are to complete a monthly income and expenditure planner at registration as a guide to what they can conveniently in a month.

    He disclosed that Section 6.5.3 (ix) of the micro pension guideline has created high expectation for micro pension contributors to benefit from Guaranteed Minimum Pension (GMP) at retirement, even if their RSA balances are too low to qualify for GMP as required in section 6.5.3 (x) of micro pension Guidelines.

    “But there is reputational risk for the entire pension industry as micro pension retirees will be aggrieved when GMP expectation is not met due to more use of contingent withdrawal option.

    “This will create a strain on Pension Protection Fund (PPF) as high number of retirees likely to qualify for GMP benefit due to conversion from micro pension plan to mandatory contribution option. It is highly unlikely that the PPF established to fund the GMP as stated in section 82 of PRA 2014 will be sufficient to cover the GMP liability,” he added.

  • Buhari’s double shuffle

    It is settled in labour relations that he who hires has the authority to fire.  That is what applied to the amiable, industrious and proud daughter of Adiabo Okurikang in Odukpani Local Government, Cross River State, Mrs. Winifred Ekanem Oyo-Ita, until last week the head of service of the federation.

    Her story is well known but the facts may not have been fully established. President Muhammadu Buhari has only exercised the powers vested in him by asking Oyo-Ita to step aside, temporarily, to allow a thorough investigation of the allegations of abuse of office against her.

    Her replacement is by no means a push over in the federal civil service and service to the country. Folashade Yemi-Esan, a first-class dental surgeon, and proud alumnae of the University of Ibadan, began her career in the Federal Civil Service at the Federal Ministry of Health after graduation in 1987 from the nation’s premier university.

    She rose to the position of permanent secretary in 2012 when she first served as permanent secretary, service policy and strategy in the Office of the Head of   Service of the Federation.

    Her tour of duty has seen her serve as permanent secretary in the Federal Ministry of Information and the Federal Ministry of Education, among others. She was, until her recent elevation as head of service last week, the permanent secretary at the Federal Ministry of Petroleum Resources. Her selection was probably endorsed by President Buhari on account of her vast experience and being the most senior permanent secretary in the federal civil service.

    But perhaps more significant is the decision of President Buhari to extend the tenure of seven permanent secretaries who were expected to retire, at various dates, between September and December. By presidential fiat, the lucky seven distinguished public officers have had their tenures extended by one calendar year beginning this October.

    So how did the president acquire this executive power, some well-meaning people may ask? Others, more discerning, have also observed that the president had in the recent past granted extension of tenure to military chiefs, to wit, the chief of defence staff and the service chiefs – heads of army, air-force and the navy.

    The Nigerian Constitution at Section 171 (2) d empowers the president to appoint persons to hold or act in appointive offices at his pleasure. It is also his prerogative to determine the duration of such appointments, although extant rules stipulate a maximum of 35 years in service or 60 years age, whichever comes first.

    Section 171 (1) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), unambiguously vested in the president, the power to appoint persons to hold or act as the Secretary to the Government of the Federation, Head of the Civil Service of the Federation, ambassadors, high commissioners or other principal representatives of Nigeria abroad as well as permanent secretaries in the ministries, departments and agencies.

    In clear terms, Section 171 (2) is explicit on the power of the president on who may be appointed, act or be removed as permanent secretary in any ministry or head of any extra-ministerial department of the Government of the Federation  or ‘howsoever designated’.

    Beyond acting within the confines of the law, many analysts would also agree that President Buhari  has a moral responsibility to ensure that the fabric of the federal civil service is not unwittingly eroded by the sudden departure of seven permanent secretaries within three months. The consequential impact of such depletion of well-trained and tested civil servants cannot be in the interest of the nation and the effective delivery of the programmes and development agenda of the Buhari administration.

    Going down memory lane, it is instructive to remember that before the appointment of new ministers, specifically between May 29 and August 21, permanent secretaries ran the affairs of ministries, department and agencies.  Besides, prior to the inauguration of the cabinet, the Office of the Secretary to the Government of the Federation organised a presidential retreat for ministers and permanent secretaries where nine priority areas of government where identified to be jointly executed by ministers and permanent secretaries.

    It is also expected that these permanent secretaries have a crucial role to play in the avowed intention of the executive arm of government to kick-start the process for the 2020 budget, and working in collaboration with the National Assembly, to return to the January-December budget cycle. Furthermore, the creation of the Ministry of Humanitarian Affairs, Disaster Management and Social Development while demerging four others, and thus expanding the bureaucracy, underscores the need for experienced hands to nurture them to stability.

    One other solid consideration for the tenure elongation is the fact that the process for finding replacements for the seven permanent secretaries due for retirement is multi-layered and may take up to three months.  By tradition, to climb to the peak of the federal civil service, those on the directorate level go through thorough security screening after written and oral examinations.

    The sudden exit of Mrs. Oyo-Ita as head of service may not necessarily affect this process. However, it may not be expedient for government to allow the loss of personnel who have garnered experience, become fully matured but have not yet attained the retiring age of 60 years. Certainly the nation can benefit more from their wealth of experience!

     

    • Kareem writes from Abuja.

  • Women in creative industry explore opportunities

    Experts and women in the creative industry converged on Oriental Hotel, Victoria Island, Lagos recently for a three-day business summit to widen their horizon as entrepreneurs on opportunities in their businesses.

    Organised by AMFEST EXPO Project, the summit, which had as theme: African Women in Arts & Culture, featured professionals in the creative arts industries – music, film, fashion and food.

    Managing Director, City 105.1FM, Lagos, Mrs. Doja Allen, urged participants to build a brand and a fan base for their music, adding that there is need for female artistes to see themselves as entrepreneurs. She noted that  women should not ignore the need to start small, but with an intention to grow their art-form and audience beyond their geographical locations.

    Mrs. Allen cited the examples of Yemi Alade and Tiwa Savage as artistes who have grown to become voices for their generation by putting together a creative team that is hard working, strategic and  staying resilient enough to weather the storms in their careers. She pointed out that the famous and successful artistes deliver their craft on local and international platforms.

    She said African women possess the power and voice, which they should use to their advantage. “Women professionals should think of long-term successes in their careers than brief and fickle popularity,” he said.

    She also stressed the need for African women to support and encourage one another in the journey to becoming a voice in the global music industry.

    Like the Ghana edition of the conference, which held two months earlier, the summit brought together women experts and business leaders in different disciplines in the creative industry to discuss the value chain and growth of the creative sector.

    Experts and participants explored how creative industry practitioners can leverage the size of the African market for better economic returns. To make this happen, ways to always deliver quality products and services, networking beyond Nigeria for artistic and cultural exchanges were highlighted along with the importance of gaining access into the markets of other geographical locations.

    Each panel was sector-based and led by a leading expert in the field. An international chef, investor and hospitality expert, Mr  Shile Jadesinmi, led the session on  African cuisine culture while talks on the creative arts was led by the Chief Human Resource Officer of MTN Nig. PLC, Mrs Esther Akinnukawe.

    Other panel leaders were author Mrs Bibi Bunmi Apampa for writing, Tonia Ahanor for the modeling industry and  Busola Olugbemileke for film business.

    The AMFEST EXPO Project Director, Mr Olukayode Adebayo, announced Kigali, Rwanda and Dubai as locations for the remaining meetings for 2019. Adebayo explained that the creative industry holds massive opportunities for wealth creation for practitioners, adding that it is strong enough to unlock economic prosperity for Nigeria and other African nations, if well harnessed.

  • Fed Govt, Access Bank list N30.3b bonds

    The Federal Government has listed its latest issuances under the Federal Government of Nigeria Savings Bonds (FGNSB) on the Nigerian Stock Exchange (NSE). The Federal Government listed two new issues totalling N295.94 million.

    The listing of the sovereign bonds came a day after top-tier bank, Access Bank Plc, listed a corporate bond valued at N30 billion.

    The new listings by the government included a two-year N91.11 million 11.15 per cent series 60 bond, which is expected to mature in September 2021 and a three-year N204.83 million 12.15 per cent bond due to mature in September 2022.

    Access Bank listed a N30 billion seven-year 15.5 per cent fixed rate subordinated unsecured bond, which is due to mature in 2026.

    The Federal Government had, in March 2017, introduced the Federal Government of Nigeria (FGN) Savings Bond (FGNSB) to woo retail investors to the sovereign debt market and deepen capital formation. The minimum subscription was fixed at N5,000 while the maximum was pegged at N50 million. With a fixed quarterly interest payment of above 13 per cent, the FGNSB offers guaranteed return.

     

  • Pension complaints and solutions

    JOSHUA: Dear Omobola, my name is Joshua. I retired as a Seargent on grade level 05 step 4. My date of first appointment is January 20, 1986 and that of retirement is March 1, 1997. I have done verification in Abuja. Please I have no money. Kindly tell the pension boss that she should pay my pension. I am helpless.

    PTAD: The pensioner’s complaint has been reviewed by the operations department. He will be paid as funds are allocated and released by the Federal Government.

    ISA: This is from one of the Pre- 1996 Railway pensioner in Nasarawa State. My name is Isa. Our 18 months’ arrears (part of 52 months) since the time of former President Goodluck Jonathan is yet to be cleared.

    Also, Railway pensioners are the least paid nationwide.

    Kindly use your good offices to  solve our problems. Thank for being there for us.

    PTAD: It is an assumed liability by some group of pensioners in the Nigeria Railway Corporation. The group is yet to forward any supporting documents.

    SUNDAY: I retired in June 2003 from the service of the former government agency changed to National Clearing and Forwarding Agency. I received my pension from March 2008 to April 2018. But they stopped it after April and I don’t know why. Please help me.

    PTAD: If Mr Eshiet has been verified, we advise that he sends a  scanned copy of his verification slip to complaints@ptad.gov.ng. If he has not, he can visit our Abuja or Lagos office with his employment documents, BVN and original stamped bank statement from April, last year till date to be verified and monthly pension payment resumed if eligible.

     MRS ONIYE: God bless The Nation Pension column. My name is Mrs. Oniye. I retired from the Federal Government College, Idoani in April,1999, on Grade 2 Typist, G.L 5 Step 10. My gratuity was paid on June 7, 2007. I have not been paid any monthly pension. Please help me contact the Pension Transitional Arrangement Directorate (PTAD) on non-payment of my monthly pension since 1999.

    PTAD: The pensioner is advised to send her complaint, name and account details to complaints@ptad.gov.ng. Her telephone number as provided is not reachable.

    ALICE: Well-done and thanks for The Nation’s concern on pensioner’s matters.My name is Alice. I am a state pensioner with federal share. I retired on April 30, 2008 without payment till date. My pensioner number is annonymous. I did verification since August 2017 but PTAD has not paid me till date. Kindly assist. Thank you.

    PTAD: The pensioner’s complaint has been investigated. She will receive payment as funds are allocated and released by the Federal Government.

  • PTAD verifies Southeast pensioners

    The Pension Transitional Arrangement Directorate (PTAD) has intensified in its verification of pensioners to enable them receive their pension entitlements in the Eastern part of the country. Omobola Tolu-Kusimo reports

    Over 10,000 pensioners of   federal parastatals, agencies and institutes from the Southeast under the Defined Benefit Scheme (DBS) have been verified by the Pension Transitional Arrangement Directorate (PTAD).

    This was achieved during the fifth phase of the parastatals pensioners verification in the region. The exercise, which started on Monday, August 26, was carried out in Awka, Enugu  and Owerri.

    The Nation learnt that owing to the large turnout of pensioners in Enugu and Owerri, the directorate approved a six-day extension for the center in Owerri and a four-day extension for the Enugu centre.

    PTAD Executive Secretary, Dr Chioma Ejikeme, who gave the approval, said the extension was to ensure that eligible pensioners and Next-of-Kin, who presented themselves, were verified, stating that the exercise recorded an average daily turnout of 344 pensioners.

    According to her, the exercise did not include Customs, Immigration and Prisons pensioners, Civil Service pensioners, Police pensioners, and  parastatals pensioners who had already been verified by PTAD.

    She said the next phase of the parastatals pensioner verification in the Northwest region started last Monday and is expected to end next Wednesday.

    Mrs. Ejikeme advised that pensioners do not have to travel to the state or location they retired from to be verified. “They can be verified at any of our centers that is within the geo-political zones where they reside.

    “All pensioners living outside the country will be verified whenever they visit the country provided they show proof of residency outside Nigeria. Such proof should be provided in advance via PTAD email which is info@ptad.gov.ng.

    “All Letters of Introduction for new enrollees (those not on payroll) must be personally signed by the Chief Executive Officer of the Agency to be acceptable for verification.”

    Mrs. Ejikemee said continuous mobile verification would be conducted for sick and infirm pensioners. The original documents of the pensioners must be brought to the verification venue, together with proof of infirmity for authentication, before mobile verification can be scheduled.

    Pensioners have, however, lauded the Director’s commitment to verifying and enrolling them on the payroll.

    A pensioner, Adedeji Adebanjo, said he retired from federal service since 2005 but was recently enrolled into the payroll by PTAD.

    He said since his verification last year, he has started receiving monthly pension and also received his arrears.

    Mrs Florence Orji added that the directorate has become very sensitive to the plight of pensioners.

    She said the staff of the Directorate showed care and love to them on the day of her verification.

  • Push for Nigerian flag carriers

    Since the liquidation of Nigeria Airways in 2004, attempts by the government to set up another national carrier, Nigeria Air, have been largely unsuccessful. Experts say aviation business, including airline ownership and management, is better left to the private sector, KELVIN OSA-OKUNBOR writes

    The Minister of Aviation’s pronouncement that  Nigeria  Air remains a priority has triggered a huge debate in the sector on the necessity, or otherwise, of a national carrier.

    There is an ageement, however, by experts that Nigeria needs a functional carrier. The argument is whether it should be government- driven, or left in private hands.

    Nigeria Airways Limited, which operated for many years as a national carrier failed, and was shut down by the government.

    Its experience in the 56 years of its existence showed that public ownership of airlines was no more fashionable. Nigeria Airways Limited was established in 1958 as a national carrier but liquidated  in 2004.

    In the last few decades, efforts by the government to achieve a national carrier after the collapse of Nigeria Airways Limited have not gathered any steam.

    Rather than dissipate energy on a national carrier, experts say the government should flow with the global trend of empowering private sector operators as flag carriers.

    The Federal Government approved N47.43 billion for the Nigeria Air project in the 2019 budget.

    Efforts by the government to partner with many organisations to deliver a national carrier since the dying days of the Nigeria Airways Limited have not yielded any positive result.

    From the failed Air Nigeria, which was to come out of Nigeria Airways to Nigerian Global Airlines promoted during the Olusegun Obasanjo-led administration to Nigerian Eagle Airlines and the latest Nigeria Air promoted by Minister of Aviation, Captain Hadi Sirika, none have been delivered.

    Given the huge capital flight by foreign carriers, can setting up a national carrier block such gap? Should the government go ahead with the project? This debate has engaged the attention of industry experts and stakeholders.

     

    Clamour for a national carrier

     

    President Muhammadu Buhari, on assumption of office on May 29, 2015, expressed concern over Nigeria’s lack of a national carrier .

    He said the establishment of such a carrier was not only justifiable by economic considerations, but for strategic national interest, national pride and job creation potential.

    The presidential interest was fueled by the unending challenges faced by domestic carriers after the N300 billion intervention fund did not yield positive results.

    Buhari said his administration would act quickly to redress the situation. He directed that the committee saddled with the task of setting up the national carrier to look into the causes of the failure of the Nigeria Airways and other private airlines before arriving at the model that will meet the aspirations of Nigerians.

    Last week, Minister of Aviation Captain Sirika said there was no going back on the project. He stated this when Transaction Advisers submitted the outcome of their research to the government. He said the national carrier was in the pipeline as the Transaction Advisers had concluded their baseline studies and were moving to the next level.

    Sirika said: “Every Nigerian is asking for the national carrier. That is why the project is on course.“

    It is against this background that some experts have called on the government to jettison the idea of a national carrier and embrace the model of private sector-led flag carriers obtainable in some countries across the globe.

    Some of them argued that the government as a regulator in the aviation sector had no business in setting up an airline, but should encourage private sector investors by creating a conducive environment for them to thrive.

    In an interview, Chairman of Airline Operators of Nigeria (AON) Captain Nogie Meggison said the government should have no business in setting up a national carrier, but empower existing private sector airlines as flag carriers.

    According to the leader of the umbrella body of indigenous carriers, the government should empower domestic carriers by reducing multiple aeronautical and airport charges to actualise the bilateral air services agreement it signed with many countries.

    What really is the difference between a national carrier and a flag carrier?

    Difference between national and flag carriers

     

    According to the experts, a national carrier is floated by the government as sole shareholder, to operate in the name of the government and represent the government in all aviation-related bilateral services agreements.

    But, a flag carrier is a privately- owned airline that, by agreement, is designated to represent a government and fly on behalf of the government, representing it on all bilateral-designated routes.

     

    Flag carriers

     

    Since the demise of the Nigeria Airways, many carriers, including Arik Air, Aero Contractors, Medview Airlines, Air Peace, Overland Airways and Dana Air have been playing the role of flag carriers, flying the country’s flag in many countries, where they are designated.

     

    Experts’ views

     

    A former Director of Human Resources at the defunct Virgin Nigeria, Victor Banjo, recently spared a thought for the proposed national carrier. He said the project lacked the requisite structure for success.

    He said the proposed national carrier would lack accountability, fairness, transparency and independence.

    He said: “From the outset, Nigeria Air was doomed to fail because the four pillars of corporate governance were missing. In terms of transparency, too much was shrouded in secrecy for a project a huge chunk of taxpayers’ money was to be committed, and time will tell if it will move from being premature to a stillborn.”

    But, Sabre Travel Solutions President, Gbenga Olowo, said the government should empower existing flag carriers, rather than dissipating energy and resources in setting a national carrier.

    To him, existing flag carriers should be supported through policies that enable them forge alliances as global players .

    His words: “This is easily achievable through economic policy of cooperation, collaborations, mergers and acquisitions; review of all existing Bilateral Air Services Agreement (BASA) through periodic schedules for equity and immediate reversal of all multiple entry points in Nigeria to single entry points.”

    On his part, African Aviation Services Limited Chief Executive Officer Nick Fadugba said though the idea of a national carrier was welcome, but for it to succeed, it would need a sound business plan, strategic industry partners, adequate funding, an experienced management team, well-trained staff, a fleet of modern aircraft, a comprehensive route network, on-time performance, good customer service and no government involvement.

    The Chairman, House of Representatives Committee on Aviation, Nnolim Nnaji, has said Nigeria needs strong flag carriers to enable it play on the continental sphere.

    Nnaji said the country had remained passive in the continental aviation market in recent years, despite its huge daily passenger traffic. However, to him, floating a fully government-owned airline might not be an alternative.

    According to him, the committee will work closely with the Federal Government to ensure that competent local airlines are supported to assume the status of flag carriers and operate internationally.

    An aviation analyst and member, Aviation Round Table, Olumide Ohunayo, said setting up a national carrier was not the best option, but empowerment of existing flag carriers to enable Nigeria actualise its over 75 bilateral air services agreements.

    He said: “We are on the verge of starting a new national carrier after many false starts, from Air Nigeria in 1993 to Nigeria Air in 2018. Twenty-six years, and we are still going round in circles. During this period, the best we got for our efforts was Virgin Nigeria, which within six years had all certifications and numerous offers for partnership.

    “We are toeing that line with the new national carrier project of acquiring five aircraft and flying to international destinations almost immediately without any base or foundation, just the government’s support without requisite funding.

    “If having a national carrier is felt to be a must, then the cost, risk and lessons from other airlines should be seriously considered.”

     

    More reactions

     

    Flag carriers said they could do more if they get the necessary support from the government . The support, they said, could come in the form of reducing multiple charges, improved air navigation infrastructure, establishment of aircraft maintenance facility and more involvement in international aero politics.

    On his part, Chairman of Air Peace Allen Onyema said: “We need more support from th government. We need to be protected from multiple taxation and the debilitating effects of poor airport infrastructure. We need the government to review the multiple designations given to foreign airlines operating into the country.

    “We need the government to appreciate the contributions of indigenous airlines. We have been exposed to unrelenting hostility. We need the government to help us play the international aero politics that have been working against Nigerian airlines for a long time. Countries protect their airlines against marauding foreign airlines. The local airlines provide jobs for the citizens of their countries hence, the immense protection they get. Recently, Airlines in America complained against the several frequencies given to the heavily-subsidised Gulf states’ airlines. The US Government responded with measures that deterred those Gulf airlines. The US Government needed to protect US jobs by protecting their indigenous airlines.

    “You do not need a national carrier to do the needful. You do not need a national carrier to protect your indigenous businesses. Why did the government want to establish a national airline in the first place?”

    Onyema continued: “Government was rightly worried that no Nigerian indigenous airline was doing well on the international scene. The government noticed a very serious imbalance in our BASA protocols and wanted to bridge it. So government went into it for a reason. Though there were genuine reasons for that plan to set up an airline, it was the belief of not only indigenous airlines but also the discerning aviation world that Nigeria should rather find out why its indigenous airlines have not been able to plug the hole. All we need is total support of our government and we will all get there. National carrier is no longer an idea the world over

    “America with its economic might and aviation prowess (manufacturers of world’s most popular planes) does not have a national carrier. They have flag carriers in Delta Airlines, United Airlines, American Airlines and a host of others flying the flag of America. Britain does not have a national carrier any longer. British Airways is no longer a national carrier since the 80s.

    “Nigeria Airways was a failed airline, it died just as other national carriers worldwide,” he said.

     

    How the government could

    assist flag carriers

     

    Legal luminary Olisa Agbakoba, a Senior Advocate of Nigeria (SAN), a few years ago mooted the idea of a “Fly Nigeria Act” which prescribes that all government officials flying on its bill must patronise Nigerian flag carriers.

    He said that was one of the ways the government could retain huge funds taken out by foreign carriers in tickets sales.

    Agbakoba said other countries, including United States initiated the Fly America Act to support US carriers.

    Besides Agbakoba, other industry players, including former spokesman of  Nigeria Airways Limited, Mr Chris Aligbe, said such legislative instrument would empower indigenous flag carriers.