Economy
In a Rancorous Session, Senators Approve Buhari $22.7bn Loan Request
By Jude Opara, Abuja
There was a mild disagreement on the floor of the Senate yesterday as Senators began deliberations on the federal government’s $22.7 billion 2016- 2018 External Borrowing for the execution of key infrastructural projects.
The disagreement began as soon as the Committee on Local and Foreign Debts led by the Chairman, Senator Clifford Ordia, (PDP, Edo Central) made his presentation.
President of the Senate, Ahmad Lawan who presided over the plenary wanted the lawmakers to go to the recommendations and vote, but this was not acceptable to Senate Minority Leader, Enyinnaya Abaribe, (PDP, Abia South) who demanded for a line by line consideration of the report and the recommendations before the voting process.
According to Abaribe, the idea was to avail the senators the opportunity of knowing what in contained in each item, as against the lumping together of the entire package.
At this stage, the chamber became heated as the debate was now a back and forth between the President and the Minority Leader.
As the controversy raged, Senator Gabriel Suswam, (PDP, Benue) made moves to save the situation by moving that the Senate should go into an executive session for about 10 minutes to resolve the knotty issues with special regards to the alleged lopsided allocation of projects captured in the loan.
However, Lawan rejected the call for a closed session, arguing that this would have happened prior to plenary session, adding; “we are at the point of no return”.
Lawan said; “Minority leader, I don’t want this debate to degenerate into partisanship This shouldn’t degenerate into partisanship because this is all about our country, please.
“I recognized you for the two times you raise your hands; the only time I denied you is when you came under order 43 and under order 25(h) and my understanding of the law is at least, you are supposed to intimate me of what you are going to say.
“I am not making any effort to muzzle you. There is nothing wrong in voting against what you don’t want.
“Nobody is saying you shouldn’t do that and if you have anything that will guide us to process this report, you can do that and I think you are getting me wrongly.”
The position of the Senate President was again not acceptable to the Minority Leader who at this point cited Order 14(C) of the Senate Standing Orders as Amended.
He said; “You are putting us in a very impossible situation because you are giving us what we will approve, we either say yes or we say. The way we do our debate here, we must look at each item whether each should go or not to go and this is even about Nigeria.
“This is not about partisanship, so if you want to talk about partisanship, my colleagues here are all complaining that this is lopsided news.
“So, Mr. President, I want to ask on behalf of all our colleagues here that we take this issue item by item and not just pass everything. If we do that, then we don’t need to sit here and do anything.”
At this point, Lawan soft-pedalled and called for a closed-door session, which began at exactly 12.40 pm.
President Muhammadu Buhari, had on November 28, written to the Senate, again requesting for the approval of 2016- 2018 External Borrowing to the tune of $30 billion to be spent by the Federal Government to execute key infrastructural projects across the country.
Recall that the President had sent the same request to the eight Senate under Bukola Saraki in 2016. He had requested for about $30 billion, but the lawmakers rejected the request then as majority voted against it when it was put forward for consideration.
In his recent letter, Buhari explained that the external borrowing plan targets projects that cut across all sectors with special emphasis on infrastructure, agriculture, health, education, water supply, growth and employment generation.
However, many analysts have been kicking against the loan because the projects to which they were tied were said to have been lopsided.
Following the disagreement, the senate went into an executive session where it was agreed that the loan be approved.
Economy
Value Addition is new Standard in Mining Operations – Alake
The Minister of Solid Minerals Development, Dr Dele Alake has declared value addition as the new indispensable standard for mining operations in the country.
Alake made the declaration in a statement issued by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.
The minister had earlier said that the federal government had resolved to ensure compliance to value addition before permitting investors to operate.
He said that his seven-point agenda for the ministry had placed the mining sector on the global front burner since assuming office, which had generated renewed interest from the international community in Nigeria`s mineral resources.
According to the statement, the minister lauded a mining company, African Natural Resources and Mines Ltd.
(ANRML), during an inspection tour in Kaduna State, for its 600 million dollar facility dedicated to the mining and processing of magnetite iron-ore.He described the move as in line with the government`s resolve for value addition, which is especially apt given President Bola Tinubu`s quest to develop the solid minerals, to boost Nigeria`s economic profile and to meet the global upsurge in energy transition.
“The company aligns with our vision of value addition and beneficiation through its processing of iron-ore, and I urge other mining companies to take a cue from them, “ he said.
He reiterated the government`s commitment to abstain from granting mining licenses to companies that lack the necessary plans for value addition.
The minister acknowledged that resilience, courage and laying a solid foundation were critical in contributing to the company success.
He added that such factors also serve as guidelines for President Tinubu`s administration in its efforts for economic transformation.
“ We have set our minds in this administration and invariably in Nigeria to achieve success, that is why Mr President is restructuring the economy.
“When this company (ANRML) started seven years ago, we saw one of the foundations through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice.
“That is what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “he said.
The minister had stated that no license would be granted to companies wishing to enter the mineral sector without presenting a plan for value addition, such as processing and refining which has multiplier effect on the economy. (NAN)
Economy
Life Insurance Records 95% Net Claims in Q4 2023-NAICOM
The National Insurance Commission (NAICOM) says Life insurance business recorded about 95 per cent net claims of the total claims in the fourth quarter of 2023.
A report by NAICOM in Abuja on Tuesday hinted that the record was due to the direct reflection of the ongoing regulatory measures by the Commission regarding claims settlements.
NAICOM said the insurance market average stood at about 71.
4 per cent of the N536. 5 billion gross claims reported at the close of the fourth quarter.The Commission said the market also recorded retention of about 87.7 per cent for the life business, 54 per cent for non-life while the aggregate market average retention stood at 66.
7 per cent for the period.It showed that the insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter.
According to NAICOM, the insurance market recorded a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.
”Major growth drivers in the non-life segment of the market were oil and gas and fire Insurances contributing 27.3 per cent and 24.1 per cent respectively.
”In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continues to decline.
”The premium posted 1.6 per cent as outstanding of all the premiums generated in the market during the period.
”Statistics also shows that the market recorded total assets of about N2.67trillion and capitalisation of N851billion in 2023,” NAICOM said. (NAN)
Economy
No Mining License without Mineral Value Addition Plans-Alake Warns
The Minister of Solid Minerals Development, Dr Dele Alake has warned that no mining license would be issued to prospective investors without requisite plans for value addition on minerals.
Alake gave the warning in a statement by his Special Assistant on Media, Segun Tomori on Tuesday.
He said the Federal Government had resolved to ensure compliance before permitting investors to operate.
He said that his Seven -Point Agenda for the ministry had placed the mining sector on global front burner since assuming office, which had generated renewed interest from the international community in Nigeria’s mineral resources.
He said the support of the executive and the legislature had enabled the ministry to showcase the solid minerals sector globally, resulting in his election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.
According to him, with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent regarding the issue of local value addition.
“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition, like processing, refining and this has a multiplier effect on the economy.
“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell.
“These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, ” he said.
Reports says that the minister had earlier received members of the House Committee on Solid Minerals who were on oversight visit to his office.
The minister commended the lawmakers for their support in repositioning the mining sector, stressing that boosting the economic profile of Nigeria required joint task by both the executive and legislature.
He acknowledged the significant contribution of sub-nationals to mining development, emphasising that state chairmen of Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments. (NAN)