…Writes NASS for Companies Act Amendment

…Leaves Abuja for Equatorial Guinea

By Mathew Dadiya, Abuja

 President, Muhammadu Buhari has sought the approval of the Senate to borrow about $30 billion for infrastructural development in the country, which he tagged: “Economic Stimulus Infrastructure Fund.

The President’s request was conveyed in a letter to the Senate President, Ahmed Lawan for reconsideration following the rejection of the same request by the eight senate under the leadership of Bukola Saraki in 2016.

Senior Technical Assistant (New Media) Office of the Vice President, Philip Obin disclosed this in his twitter handle @PhilipObin yesterday.

President Buhari said that he decided to represent the request for an external loan of $29.96billion to finance key projects in different sectors of the economy.

According to the Presidency, Buhari informed the Senate that the borrowed funds will fund 39 emergency projects in the Power, Agriculture, Transport & Mining sectors of the Nigerian economy.”

The letter titled: “Request for the National Assembly to reconsider and approve the Federal Government’s 2016-2018 external borrowing plan” reads in part:

“Pursuant to Sections 21 and 27 of the Debt Management Office (Establishment Etc) Act, I hereby request for resolutions of the Senate to approve the Federal Government’s 2016-2018 External Borrowing Plan as well as relevant projects under this plan.

Specifically, the Senate is invited to note that (a): While I have transmitted the 2016-2018 external borrowing plan to the eight National Assembly in September 2016, this plan was not approved in its entirety by the legislature. Only the Federal Government’s emergency projects for the North East’s four states projects and one China Assisted Railway Modernization Projects for Lagos-Ibadan segment were approved out of the total of 39 projects.

“(b). That outstanding projects in the plan that were not approved by the legislature are nevertheless, critical to the delivery of the government’s policies and programmes relating to power, mining, roads, agriculture, health, water and educational sectors. These outstanding budgets are well-advanced in terms of the preparation, consistent with the 2016 date.

“Sustainability analysis undertaken by the Debt Management Office were approved by the Federal Executive Council in August 2016 under the 2016-2018 external borrowing plan.

“Accordingly, I have attached for your kind consideration, relevant information from the Minister of Finance, the specific outstanding projects under the 2016-2018 external borrowing plan for which legislative approval is currently being sought.

“I have also directed the Minister to make herself available to provide any additional information or clarification which you may require to facilitate prompt approval of the outstanding projects under this plan.”

According to the Debts Management Office (DMO), Nigeria’s total external debt stood at $27.162 billion as at June 2019.

If this loan request is granted the nation’s external debts would hit all time high of about $60 billion including the $3 billion being approved by the IMF/World Bank.

…Seeks Amendment to Companies Act

In a related development, President Buhari also sought an amendment to a section of  Companies and Allied Matters  Act (CAMA) with a view to preserving the powers of the Attorney-General of the Federation to approve the registration of companies limited by guarantee.

“Pursuant to Section 58 of the Constitution of the Federal Republic of Nigeria 1999 as amended, I hereby forward the Companies and Allied Matters and other related matters Bill 2019 for consideration and passage into law by the Senate.

“The Senate may wish to note that in this bill, Section 26(5) of the extant companies and Allied Matters Act has been amended to preserve the powers of the Attorney-General of the Federation to approve the registration of companies limited by guarantee and reflect the ease of doing business principles in a veto order (1) of 2017 on the promotion of transparency and efficiency in the business environment.

“While I look forward to the usual expeditious consideration and passage of this bill, please accept the assurances of my highest consideration”, Buhari said in the letter.

Recall that the Senate repealled and re-enacted the CAMA Bill in May 2018 to make it possible for individuals to register their companies from any part of the world.

The bill came 28 years after the passage of the original Companies and Allied Matters Act and is expected to make Nigeria the best country in Africa to do business in.

The bill was transmitted to the president in May but has not been assented to.

The bill, if signed into law, is expected to provide significant benefits to companies by reducing red tape and making it easier to comply with regulatory obligations.

The amendments are aimed at encouraging investments that will allow small businesses and startups thrive, lower costs and ease regulatory burdens. Changes included in the bill will mean that many of the over 75,000 private companies limited by shares which are established in Nigeria every year will be able to incorporate more easily.

In addition, small companies will no longer be required to have a company secretary or hold Annual General Meetings and the requirement for statutory declaration of compliance has also been removed.

Minimum share capital required for companies to be registered has also been reduced to encourage more investments in small companies; and individuals will no longer need a lawyer to register a company.

Leaves Abuja for Equatorial Guinea

Meanwhile, President Muhammadu Buhari will today (Friday) leave Abuja for Equatorial Guinea for a gas summit.

President’s spokesperson, Garba Shehu, said in a statement that leaders of other gas-producing countries were expected to be at the one-day summit, thereafter on return, would proceed to Daura, Katsina State on a five-day official visit.

President Muhammadu Buhari will depart Abuja Friday to participate in the 5th Gas Exporting Countries Forum (GECF) Summit in Malabo, Equatorial Guinea.

“Apart from the Nigerian leader, the one-day meeting will be attended by leaders of major gas producing nations of the world namely, Algeria, Egypt, Equatorial Guinea, Libya, Bolivia, Iran, Qatar, Russia, Trinidad and Tobago, United Arab Emirates, Venezuela, Kazakhstan and Norway, whose countries account for 70 per cent and 80 per cent of global gas reserves and production respectively.

The idea of the GECF was first mooted in 2001 when the First Ministerial Meeting held in Tehran, Iran, while the First GECF otherwise called Gas Summit, took place in Doha, Qatar in 2011 with Nigeria represented at the highest level.

Indeed, President Buhari had attended the Third Gas Summit in Tehran in November 2015. This Fifth Gas Summit in Malabo is the first time the biennial meeting will be hosted in Africa.

Recall that on November 19, 2019, President Buhari had received Mr Gabriel Mbega Obiang Lima, the Special Envoy of President Teodoro Obiang Nguema Mbasogo, who brought a special invitation to the Nigerian leader to attend the 5th Gas Summit as well as thanking Nigeria for her support towards the hosting.

During that visit, the president had noted that, “Nigeria is more of a gas producing rather than oil producing country. That fact had long been established. If we had followed our plans laid out in the 1970s for the gas sector, we should have had 12 trains by early 1980s, instead of being on just six trains,” of exporting Liquefied Natural Gas (LNG).

Nigeria, being home to the largest proven natural gas reserves in Africa – over 202 trillion cubic feet (TCF) – and the ninth largest in the world, the Malabo Summit provides a veritable platform for President Buhari to reaffirm Nigeria’s commitment to the broad objectives of the GECF which among others, seek to “support the sovereign rights of Member Countries over their natural gas resources and their ability to independently plan and manage the sustainable, efficient and environmentally-conscious development, use and conservation of natural gas resources for the benefit of their people.”

The Nigerian delegation will also use the opportunity to discuss current trends in the global gas market, potential policies for the energy sector and opportunities for collaboration.

At the end of the 5th Gas Summit, the Malabo Declaration is expected to be adopted”, Garba said.

President Buhari would be accompanied by the Minister of Foreign Affairs, Geoffrey Onyeama; Minister of State, Petroleum Resources, Timipre Sylva; Minister of Mines and Steel Development, Olamilekan Adegbite; and the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kolo Kyari.