Connect with us

Economy

Oshiomhole to FG: Don’t Use PENCOM Funds to Finance Budget Deficits

Published

on

APC Chairman, Adam Oshiomohole
Share

  • Urges President to rejig security apparatus
  • We’ll consolidate on our achievements – Buhari 

By Mathew Dadiya, Abuja

The National Chairman of the All Progressive Congress (APC), Adams Oshiomhole on Wednesday, warned against the use of Pension Commission’s(PENCOM) funds to tackle budget deficits, since it was meant to address the critical issues of the masses who contributed the money.

 

The APC National Chairman said this in a remark at the first Presidential Policy Retreat organized by the APC administration.

 

Oshiomhole, therefore, called for a complete overhaul of the President’s economic policies to address inequalities and tackle poverty.

Oshiomhole who lamented that poverty has continued to ravaged Nigerians despite efforts by the current administration to address the scourge, urged governments to stop the use of PENCOM funds as stop gap measures to fund budget deficits and facility for infrastructure development by both Federal and State governments.

President Muhammadu Buhari had declared the retreat open.

Oshiomhole also called for rejig of security architecture in the country. 

He urged the retreat to brainstorm towards getting practical solutions to the problems facing Nigeria. 

On corruption, he urged the government to effectively plug leakages with all the Ministries Departments and Agencies reviewing ‘how’s to achieve it. 

Oshiomhole also recommended long term national economy plan to replace the current Economic Growth and Recovery Plan. 

Acknowledging that so much progress has been made in the past four years in the fight against corruption, economy and security, he said there were still huge challenges and room for improvement. 

“The logic behind introducing the pension scheme under PENCOM, was that the workers’ social capital that they deducted every month which they would not need to draw on until they retire about 30 years  or 35 years later, provide a basis for long term fund,” he explained.

Oshiomhole while speaking further, said: Happily, PENCOM has generated over five to six trillion naira since it commenced operation. Unfortunately, the money is borrowed by government both federal and state and unfortunately it is not available to address the social purpose of the working people whose contributions the pension fund evolved. 

“I asked our expert to recognize that the primary purpose of the workers social capital is that it would be creatively managed and deployed to workers social needs including housing, education and all the other factors. 

“It wasn’t meant to fund government’s deficit, it wasn’t meant to support federal government deficit it was meant to address the primary social purpose of those who work, so that they are sure that by the time they finished their employment that they are retired, they have a modest home to retire to. 

“I think we must visit these issues, address them because this President if he has opposition he is among the rich, if he has supporters he is among the poor. The poor people’s money must be used to addressed the critical challenges of the poor. 

“May God drive our thoughts, our processes and rejig everything so that at the end of the day, those people would say yes sai Baba! We elected him, we trusted him and he has delivered.” he said 

On the economy, he noted that there is the challenge of high rate of poverty in spite of all the efforts and in spite of coming out of recession.

He also pointed out that the rate of economic growth is still far less than the rate of population growth. 

“If our economic growth rate is still lower than the rate of population growth poverty would remain endemic. On the economy, there is the challenge of high rate of poverty, inequality, access to credit and mortgage. 

“Mr President, I know deep in your heart and assessing the basis of our campaign the issue of inequality is primary. We don’t just want to grow the economy, create more wealth, we are also interested in who is benefiting from this wealth and what policy instruments are required to ensure that inequality is addressed and that the average Nigerian people particularly the masses that constitutes the electorate, benefit from the fruit of growth.”

This, he said, will require a review of access to credit and access to mortgage, unemployment, low level of manufacturing cost and the need for diversification of the economy.

He said there is also need to increase revenue, block leakages and ensure budgets deliver services to the citizens. 

He added “I am happy that the National Assembly is here because part of the challenges we have faced over the past five years, is that even though we had control in terms of membership of the National Assembly but we had our budgets been passed five months into the new year. 

“Even that fact alone by itself explained challenges at the level of execution of budget.”

On anti corruption, Oshiomhole said “I believe that we can commendably beat our chests as to the extent to which we have gone in implementing our anti-corruption war but there is need to ensure that our range of actions covers prevention – that is system, involvement of the Nigerian citizens, the society, and the prosecution of offenders. 

“There are many who have said that we should not just pursue corruption, we should deal with how to even prevent it. Many wondered how can a salary earner who desire to have a house but who is paid in 30 days interval where they are paid regularly and he earns a million a month that is even to put the number generously. How can he own a house, if a house cost as much as 10 million naira?” he queried 

Stressing that the banking system is not delivery to the ordinary people, adding access to credit remained a major issue. 

“Let me share my own ignorance, I am unable to understand for example as a worker why in Europe when they are in economic recession they reduce their interest rate, in Nigeria when we are in recession we increase our interest rate. How do we price money at such level and expect that the ordinary people can borrow to set up businesses? 

“We do need practical solutions beyond theories. We need to re-examining our condition what we saw different from what we see elsewhere in the world. 

“If you want to buy a car Mr President, you must have twenty million to pay cash, to have twenty million to pay cash if you are not a big businessman it cannot possibly come from a legitimate salary given the known salary structure in the Nigerian public sector and even the disclosed portion of the Nigerian private sector. 

“So if people desire to buy a car and the banking system is not open to credit the only way is to steal in order to purchase. But we have all travelled round the world, ten percent is enough to own a car if you have  verifiable job and a banking history and you pay in installment, month by month until you deferred the car. 

“As a worker you know the benefit of that if you don’t work and you are fired that car would be recovered by insurance company or whoever is the lender. 

So we do need to review all of these so that in dealing with corruption, we deal with the preventive part. 

“This retreat should critically review our achievements in the first term and map out strategy for the second term. What we  hope to achieve in this Next Level Agenda is clear – challenges, how it should be done. This is why I want to challenge us to look at the following issues amongst others.” he said 

Oshiomhole went on “The need for a long term national development plan to replace the Economic Recovery and Growth Plan which is expected to end in the next few years. 

“The need to improve our revenue through blocking leakages and ensuring that every revenue agency remits to the federation account what is due in a timely manner. 

“Of course, in this we must commend the President for introducing the Treasury Single Account (TSA). But as operators would tell you this policy is there but we must improve our strategy to ensure that leakages that are still there are effectively blocked. 

“So the issue is how? The need for every ministry, departments and agencies to have a strategy plan to review the question of how because to be honest, everybody knows what is wrong. Even more importantly everybody knows what we ought to do, the challenge is one word – how? 

“We know we have a huge number of unemployed people we know there is a need to have them back to work but the question is how?

So the need to put an effective coordinating mechanism to ensure policy coherence and coordination between arms and tiers of government. 

“We need to radically change the budget contents, we need to do everything possible to reduce the recurrent expenditure from the current 70 percent and increase the budgetary allocation to the four sectors that are part of the life of citizens. Namely the health sector, education, agriculture, infrastructure. 

“The more money we spend on recurrent, the less that is available for these critical areas.

It is not acceptable that we spend 80 percent on recurrent and we have some of our children in some states being taught under the tree even during this raining season. 

“There is need for radical decisions to change this so that those millions of poor people who we saw across the states who fanatically believe in the person of our president and through the president, connect with our party, we must put appropriate policies in place to ensure that at the end of the day we can measure how all of the things we have done or we are going to do at the end of the four years has impact on their quality of lives. 

“We need to implement anticorruption strategy in a comprehensive manner that would evolve the system, society and sanction.”

On security architecture, he said “The need to rejig the security apparatus and operational use community policing which is already being discussed but I think we need to go into the specific on the issue of “how.” 

“Because every minute, every second is going as a party founded on the philosophy of social democracy we need to expand programmes that touch on the lives of such as the social housing, social investment programme, access to public healthcare, access to public education and support to small scale industries.” he said.

“The outcomes of this Policy Dialogue will be wholly advisory and implementation will be left to the federal machinery of Government.” he said 

Those at the retreat included Vice President Yemi Osinbajo, Secretary to the Government of the Federation, Boss Mustapha, Aliko Dangote, Jim Ovia and former Prime Minister of Ethiopia, Hailemariam Desalegn. 

State governors included those of Kebbi, Plateau, Kano, Kaduna, Kogi, Imo, Bauchi, Ekiti, Edo, Borno and Lagos. 

President Buhari, while declaring the retreated open, noted that his administration came into office in 2015 at a period of economic recession following sharp drop in the global oil price and years of economic and financial mismanagement.

He maintained that his administration would consolidate on the successes achieved in his first term.

The president said his administration restored economic growth, curbed inflation and shored up external reserves through various monetary and fiscal measures.

He said that his administration has witnessed eight quarters of consistent marginal growth of the economy over the past two and a half years.

“We have made progress in the agricultural sector especially in food production and processing through our Food Security and Anchors Borrowers Programmes, which provide concessionary credit facilities to farmers in crop production as well as large-scale investors in food processing and manufacturing.

“To consolidate on these and other successes, we will continue to provide incentives that will facilitate investments and create jobs in key import substitution programmes.

“In line with the “Next Level Strategy” of our party, the All Progressives Congress, which seeks to consolidate on our achievements over the past four years, this policy dialogue session has been conceived to; “Advise the government over the next four years to deliver on our promises in a manner that reflects true changes to the livelihood of the people.

“Discuss and propose for Federal Government’s approval, key strategies and high impact initiatives to stimulate economic growth and development.”

Concerted effort, he said, requires the convergence of various stakeholders cutting across the private sector, developmental partners, industry experts to dialogue and forge a way forward.

He said his administration is committed to consolidating the successes of the first term and creating an avenue where the Nation’s investments and resources are geared towards sustainable development. 

“We will implement structures that will accelerate speedy execution of these initiatives.

Economy

Value Addition is new Standard in Mining Operations – Alake

Published

on

Share

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)

Continue Reading

Economy

Life Insurance Records 95% Net Claims in Q4 2023-NAICOM

Published

on

Share

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)

Continue Reading

Economy

No Mining License without Mineral Value Addition Plans-Alake Warns

Published

on

Share

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)

Continue Reading

Read Our ePaper

Top Stories

NEWS2 hours ago

Board Sanctions 118 Immigration, Civil Defence Officers

ShareThe Board of NSCDC, Fire Service, Correctional, and Immigration Service, has approved the sanction of 118 personnel for various offences....

NEWS3 hours ago

NSCDC Inaugurates Female Strike Force to Secure FCT Schools

Share The FCT Commandant of Nigeria Security and Civil Defence Corps (NSCDC), Mr Olusola Odumosu, has inaugurated the corps Female...

NEWS3 hours ago

Tinubu Appoints Bello as new Chairman of CCB

Share President Bola Tinubu has appointed Dr Abdullahi Usman Bello as the new Chairman of the Code of Conduct Bureau...

NEWS3 hours ago

170 Incidents of Electrical Installation Vandalism Reported in 2 years in S/East – EEDC

Share The Enugu Electricity Distribution Company (EEDC), says at least 170 incidents of electrical installation vandalism were reported within two...

NEWS3 hours ago

Diri Tasks New SSG on Performance

ShareFrom Mike Tayese, YenagoaGovernor Douye Diri of Bayelsa State, has charged the newly appointed Secretary to the State Government (SSG),...

NEWS3 hours ago

Ogah tasks CAN chair, Nwokolo to account for N100m given by Nwifuru

ShareFrom Godwin Okeh, AbakalikiThe Factional chairman of the Christian Association of NIgeria CAN, Ebonyi state chapter, Alloy Ogah has urged...

NEWS3 hours ago

Adamawa Poly Admits 180 Non-Formal Students For Skill Qualifications Certificate

ShareBy Yagana Ali, YolaThe Adamawa State Polytechnic, Yola have admitted about 180 trainees from the informal sector into various skills...

OPINION3 hours ago

Politics as the Fourth Factor of Production

ShareBy Majeed Dahiru The advent of the industrial revolution in the 18th century in the United Kingdom, continental Europe and...

NEWS3 hours ago

Projects: Wike Thanks Tinubu for the Opportunity to Serve

ShareBy Laide Akinboade, AbujaThe Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, on Thursday commended  President Bola Tinubu...

NEWS3 hours ago

30,000 Tertiary, Primary /Secondary Students Benefit From Ogun Educash Scheme

ShareFrom Kunle Idowu, AbeokutaSo far, no fewer than twenty thousand Ogun State  students in tertiary institutions across the country have...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc