COVER
Niger Delta : Senate Summons Budget, Finance Minister
By David Torough and Eze Okechukwu, Abuja
National Assembly joint committee of the Senate and House of Representatives has summoned the Minister of Finance, Wale Edun and his counterpart in the Budget and Economic Planning Ministry, Abubakar Bagudu to appear before it in furtherance of the budget defence for the Ministry of Niger Delta Development.
The summon was a sequel to the appearance of the Minister for Niger Delta Development, Abubakar Momoh, before the joint committee chaired by Senator Jide Ipinsagba on Thursday next week.
During the interface, a member of the committee, Senator Seriake Dickson, raised a motion to adjourn the sitting indefinitely until both Ministers of Finance and Budget and Economic Planning appear with the Minister of Niger Delta Development to shed more light on the poor budgetary envelope for the Ministry of Niger Delta Development, fund released for projects among others.
Earlier, the minister had shared with the joint committee the 2023 budget performance and answered questions about project execution, project abandonment, fund releases, and a commutative debt portfolio of the ministry totalling over N50bn.
Momoh said for the 2023 budgetary provision of N11bn only N4bn was released from the capital budget which represents about 37% which he described as inadequate to meet the challenges of the region.
He said, “this gross inadequate budget has led to project abandonment and unpaid projects and so, this paucity of funds can lead to the derailment of the mission and vision of the ministry.”
While answering questions on training and empowerment for women and youths in the region, the minister said there was nothing the ministry could do, if money is not released for training and empowerment and as such, the training and acquisition of knowledge is slowed down.
“We have signed a performance bond with the president but with a paucity of funds there’s nothing we can do.
The purse of the nation is in your hands as lawmakers; we need you to empower the ministry to deliver.
“We do hope that with your approval, you will give us support for more and better funds released in the 2024 budget,” he explained.
On whether Mr. President was aware of the situation in the Ministry of Niger Delta Development, the minister said, “I cannot say he’s aware – it would be pretty difficult for the president to know all the details of happenings in all the ministries.”
The minister agreed with the legislators on why the government cannot award contracts without payments amidst a litany of abandoned projects.
He said, “I share your view. The government cannot continue to award contracts to people and would not pay.
“The system of securing cash is cumbersome. Sometimes you award a contract without knowing how much you have in your purse.
“I am talking of a cash plan system which is giving a lot of headaches. If a contractor completes his job, it’s expected that within one or two weeks they should get payment but you have to apply for it and upload it to the Ministry of Finance, which delays the system. You need to intervene in this regard.”
The minister added, “When I was outside, I saw things the way you’re seeing it now but now that I am inside, I now understand. On a poor budget performance of 37%, I agree it’s poor. It’s a statement of fact. I also share the issues you raised on the procurement process.
“I agree with that in entirety. I want to say one thing – we are in a transition year, and you cannot expect performance to be higher than 40%.
“I came on board in August when they were still running the 2022 budget and not quite a while ago they started running the 2023 budget. Once the National Assembly passes this appropriation, we will start work in earnest. You can be sure of speedy completion of projects.”
On the 2023 budgetary provision of N10bn, the minister said, “This sum cannot construct 3km of road in the heart of the Niger Delta. We need to also ask if there were adequate resources for all of these. The answer is no. We have requested additional funding even through Sukuk but we are still waiting for a reply.”
He said, “The staff in the ministry know how I operate. If you give me money today to complete a project, give me 3 months and see action if I will not deliver. On the 2024 budget, I will monitor them to make sure they are executed and I will hold my directors responsible if anything fails.
“On signature projects – we need to ask ourselves what we mean. The Ministry of Niger Delta has a star project which is the East-West road which was my focus when I came on board. But I was told that since 2021 it has been reversed to the ministry of works which should be a star of signature projects for the ministry.
“This is an interventionist ministry such as maintaining peace in the region which doesn’t signify a signature project. Left to me, the sum of N18B being the envelope for the year 2024 can be put on three signature projects and I will ask the president to come and commission projects but we cannot do that because being an interventionist ministry handling 9 states, we have to spread the projects”.
Momoh concluded by saying, “What I can assure you is that with me in the Ministry of Niger Delta Development, things will be done differently, I can tell you authoritatively”, he assured.
Dickson in commendation said, “You’re a very experienced person and we know that with you, the ministry is in good hands. We are ready to encourage and support you.”
He moved the motion for the suspension of the budget defence and it was seconded by Senator Mudashiru Lukeman.
Managing Director of the Bank of Industry (BOI), Mr Olasupo Olusi has reaffirmed the bank’s commitment to supporting local manufacturing in Nigeria.Olusi said this when he visited the GU Ebeco facility and inspected ongoing projects at the Nisa Medical and Zeberced Group at the Idu Industrial Layout, Abuja yesterday.
He expressed delight at the progress made so far at the various facilities while commending the chief executives of the organisations, urging them to do more. During the visit to the GU Ebeco, the BOI boss emphasised the importance of job creation and the need for their products to proudly bear the “Made in Nigeria” label.Olusi praised GU Ebeco’s progress over the past seven years, applauding its expansion into a national enterprise with over 1,500 employees and several facilities across the country.“I am very happy with the fact that BOI has supported this enterprise for the last seven years. It is wonderful to see that it has grown.“It employs 1,500 staff, and operates a national distribution system. We are proud of the significant role GU Ebeco is playing in the Nigerian manufacturing landscape,” he said.The BOI boss also commended the loan repayment performance of the company saying it had taken multiple facilities from the BOI. He encouraged other young entrepreneurs to stay focused, while assuring them of BOI’s commitment to supporting them and Nigeria’s industrialisation efforts.Responding Mr Ebere Uzozie, Managing Director of GU Ebeco, expressed his appreciation for the continued support from the BOI.“We are grateful for the Bank of Industry’s backing. Their loans have helped us expand and create lasting change. We now have 34 facilities, and we are debt-free.” We are optimistic the visit will mark a new chapter for the company, and will ensure further growth and partnerships that will contribute to Nigeria’s industrial future,” Uzozie said.at the Zeberced Group, its Managing Director, Mr Aydin Kurt, said that Nigeria had lots of potential and could be the future of the world.While acknowledging the country’s potential in industrialisation, he emphasised the importance of producing locally in Nigeria rather than relying on imports.Kurt also appealed for more collaboration with the BOI to promote industrialisation, create jobs and help grow the economy.“I cannot do it alone. we have to come together and create a synergy to attract different investors to come and also invest in this country.“This is our vision we have a lot to share with you, and thank you once again for visiting our corporations,” he said.Responding, the BOI managing director said that the bank was keen on infrastructure and committed to supporting industrious infrastructure.“This project is very important to us and a critical objective for the county and, in that spirit, we have decided that we will continue to support the proliferation of industrial parts across the nation.Why yours is so unique is because it has a plan for Micro Small and Medium Enterprises (MSMEs) which is very important.“We have a mandate to support that particular segment of our economy because they are the ones that champion job creation and most of the growth of the economy is attributed to them,” Olusi said.The BOI boss thanked Zeberced Group for the opportunity while commending the groups’ vision, energy and optimism to carry the project forward.“We look forward to our partnership. Like I said, we all want to be parts and parcel of this project, we have already given you some money to implement it, and we will see how we can do more.“As you expand we will support, but you have to also show us the job creation numbers, and make sure your goods are branded made in Nigeria,” he said.The News Agency of Nigeria reports that GU Ebeco is a furniture company while Zeberced is a construction company. NAN
By Tony Obiechina, Abuja
Federal Road Safety Corps (FRSC) has unveiled an app to boost efficiency and mitigate the impact of road accidents in the country.Speaking at the event yesterday in Abuja, the Secretary to the Government of the Federation (SGF), George Akume explained that the app was designed to digitalize FRSC operations for effective traffic management.
The SGF who described the current rate of accidents as a great concern to the present administration, urged the FRSC management to involve stakeholders in the implementation of the app to monitor motorists and curb the excesses of FRSC officers and personnel. The Chairman, House Committee on Road Safety, Abiodun Adeshida said the National Assembly was ready to review the 2007 Federal Road Safety Corps Act for more efficient service delivery.The Kenyan Ambassador to Nigeria, Isaac Parashina said African countries have a lot to learn from the FRSC’s experience in addressing the high rate of road crashes across the continent.According to the him, Africans must come together and provide homegrown solutions to address road safety challenges.In his welcome remarks, the Corps Marshal FRSC, Shehu Mohammed stated that the innovation was part of efforts to align with the Renewed Hope Agenda of President Bola Tinubu’s administration on the use of the new technology to strengthen the commitment of road users and enhancing road safety operations.Mohammed said the corps would embark on aggressive sensitization in all motor parks and town hall meetings for stakeholders to key into the new technology.The Director-General of the Federal Radio Corporation of Nigeria (FRCN), Dr. Mohammed Bulama expressed confidence that the new technology would bring sanity to Nigerian roads.Dr Bulama commended FRSC management for the new operational initiative and pledged FRCN’s continued support to every program to reduce death and enhance economic activities in the country.The Acting President, National Union of Road Transport Workers (NURTW), Isa Ore said leaders in the transport sector would contribute to the success of the application in saving lives on the highway.Other stakeholders in the transport sector promised to support FRSC in enforcing traffic laws and protect lives and property on Nigerian roads.
By David Torough, Abuja
Minister of State (Oil) Petroleum Resources Heineken Lokpobiri yesterday denied that the Federal Government is responsible for the Tuesday increase in the price of petrol, saying it is a function of deregulation.The latest hike in the price of petrol has pushed up transport fares by over 50 percent in major cities across Nigeria.
The increase implemented by the Nigerian National Petroleum Company (NNPCL) Retail Management ranges from N855 to N897 per litre, depending on the location from the previous N568-N617. Independent marketers have adjusted their prices to between N930 and N1,200 per litre of petrol.The minister denied FG’s involvement while addressing State House correspondents after a meeting with Vice President Kashim Shettima in Abuja.Shettima had summoned Lokpobiri along with the Group Managing Director of Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari and the National Security Adviser Malam Nuhu Ribadu over the recent hike in the price of petrol.Lokpobiri said, “This sector is deregulated. And we believe that with the availability of products, the price will find its level.“What is important is that the product is available in the country. Between now and weekend, there will be availability of the product across the length and breadth of the country.“We believe that by the time there is availability of the product across the country, the price itself will stabilise.”Mr Ogbugo Ukoha, Executive Director, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said regulatory efforts were geared toward stabilising supply of petrol in the country, which he said would impact positively on stability of price.Okuoha said, “The objective of the regulator is to ensure that there’s increased operating hours from all loading depots; vessels are being cleared promptly and extended hours where safety can permit truck outs as well.“More importantly also is the reinforcement of the support being given to local refinancing, because with increased production there will be higher supply, which will stabilise the price.”Despite making its product available, the Federal Government has not started lifting petrol from the Dangote Refinery.Yesterday, Dangote Group refuted the claim in the media that NNPCL is currently lifting petrol from its refinery and selling at N897 per litre.A statement signed by the Group Chief Branding and Communications Officer, Dangote Group, Anthony Chiejina said the company has not yet finalised any contract with NNPCL.The statement entitled, “NNPC yet to lift our petrol” reads, “Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per litre” published in the BusinessDay Newspapers of Wednesday, 4 September 2024.“We would like to state that NNPCL has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.“Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPCL.“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we cannot determine, fix, or influence the product price, which falls under the purview of relevant government authorities.“We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter.“We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country.”
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