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Senate, Reps Investigate N483bn Intervention Loan Disbursements, NIMASA
By Eze Okechukwu & Ubong Ukpong, Abuja
The Senate yesterday revisited an alleged uneven disbursement of intervention loans to the tune of N483 billion by development financial institutions among the six geopolitical zones in the country.
The Senate raised a seven-man an Ad- hoc Committee to carry out a holistic investigation into the matter and report back in four weeks for further legislative action.
Chairman of the Committee is Senator David Umahi.
Other members are senators Babangida Oseni, Ali Ndume, Sani Musa, Tokunbo Abiru, Ipalibo Banigo and Chizoba Chukwu.This followed the debate of a motion by Senator Ali Ndume (Borno South), which was supported by 64 other senators on the need to holistically investigate the disbursement of loans by Development Bank of Nigeria, NIRSAL and related Banks to micro, small and medium scale enterprises (MSMEs) in Nigeria from 2015 to date.
Our Correspondent recalls that the same motion by Ndume and three others was investigated by an ad- hoc committee in the 9th Senate and a report was submitted by the panel headed by Senator Sani Musa (Niger East).
Deliberating on the motion at plenary yesterday, the Senate noted that the huge disparity and uneven distribution of half a billion Naira to states in the six geopolitical zones of Nigeria and the states in the country in 2021 by the Development Bank of Nigeria called for concern.
“Aware that the Bank’s Annual Integrated Statutory Report 2021obtained on 13th July, 2022 from the organisation’s website showed that the Bank disbursed a loan worth Four Hundred and Eighty Three Billion Naira (N483,000,000,000) only out of which only 11 percent went to the 19 states of Northern Nigeria, while 47percent went to Lagos State alone.
“Also aware that the 13 percent of the loan that went to the North totals about about Fifty Three Billion , One Hundred and Thirty Million Naira (N53,130,000,000) while the 47 percent that went to Lagos State alone totals Two Hundred and Twenty Seven Billion and Ten Million Naira (N227,010,000,000) only..”
According to the breakdown of the loan presented by Sen Ndume, “the South West got 57 percent worth N274,740,000,000; South South got 17 percent worth N81,940,000,000; North Central got 11 percent worth N53,020,000,000; South East got 9 percent worth N43,380,000,000; North West got 5 percent worth N24,100,000,000; North West and North East got just One percent worth N4,820,000,000.”
Recall that the Development Bank of Nigeria exists to alleviate financing constraints being faced by Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria through providing finances, partial credit guarantees and technical assistance to eligible financial intermediaries on a market – conforming and fully financially sustainable basis.
Senator Ndume also noted that the top five sectors considered for the loan were oil and gas (42.0 percent), manufacturing (16.0 percent) , agriculture, forestry and fisheries (7 .2 percent), trade and commerce (6.3 percent), and transportation and storage (3.5 percent),
However, there was mild drama as senators took time to dissect the motion. It started with Seriake Dickson (PDP, Bayelsa). No sooner than he suggested an additional prayer for the Ad- hoc investigation to be extended to look at all intervention loans by the CBN including Covid- 19 palliative, Anchor Borrows loan etc than it was dropped on the pretext that it will make the assignment of the ad- hoc committee unending.
However, in his contribution earlier, Sen. Orji Uzir Kalu (Abia North) said loans are gotten after due application and following the satisfaction of requisite requirements including bank guarantees.
For Olamilekan Adeola (Ogun West), Senator Ndume had the notion that his North East zone was short changed but forgot that the development financial institutions had laid down procedures to disburse loans. He however appealed that the motion be given a second look if Ndume felt bad about the facts.
Sen. Sani Musa (Niger East) who headed the former ad- hoc committee said it should be noted that there is difference between bank loans and palliatives.
While agreeing that development institutions has criteria gor granting loans, he said the institutional framework might not be strictly followed.
He disclosed that 65 percent of loans disbursed by DBN has been repaid.
Musa also said interest of northerners in applying for the loan may be restricted by religious belief that no interest should be paid on.loans while financial institutions take 17 percent on loan.
But Ndume interjected him saying he perfectly understood the workings of development institutions and their requirements. He claimed he got information presented from the website of the DBN and microfinance institutions involved.
A financial expert and retired banker, Sen. Isah Jibril advised that the DBN among other institutions is not wholly Nigerian but has foreign bodies like the World Bank and International Monetary Fund (IMF) as investment partners and they have their criteria which cannot be compromised by the Nigerian system.
He advised that Nigerians that failed to meet such requirement should approach other less cumbersome institutions such as the Bank of Industry and Bank of Agriculture.
Reps Investigate NIMASA over Fictitious Contracts, Funds Mismanagement
The House of Representative has set up an Ad-hoc Committee to investigate the allegations of Fictitious Contract award, gross mismanagement of Funds, as well as lopsided placement of Directors by the Nigerian Maritime Administration and Safety Agency, NIMASA.
This was sequel to a motion of urgent national importance brought before it at plenary yesterday, by Hon. Kingsley Chinda, Hon. Victor Ogbuzor, Hon. Cyril Hart Hon. Manu Soro and Hon. Manuchim Onwuzuirike.
The lawmakers observed in the motion, that the recent developments in the award of questionable and phoney contracts, fraudulent forex transactions, lopsided placement of Directors and other unwholesome and corrupt practices in the Nigerian Maritime Administration and Safety Agency (NIMASA).
They further noted that there have been several allegations of questionable, inflated and fictitious contract awards particularly for non-operational speed boats, security surveillance contracts and Deep Blue
Water Contract, revenue leakages as well as in the award of contracts to cronies of the Director-General and other top management staff of the agency
The legislators equally raised concerns about alleged under-remittance of debts owed the country by Shipping firms, with the consent and connivance of the agency.
They informed the House that the agency was alleged to have entered into a very dubious contract with a firm known as XPO Marine Limited’ for the lease of six speed boats, each at the rate of $173,930.00 monthly, without a Need Assessment for such facility being carried out by the relevant departments of the agency adding that the said XPO Marine Limited had earlier been indicted for defrauding the agency to the tune of $80,000 in revenue.
They said that they were aware of the security surveillance contract called Deep Blue Water Contract’ suspected to be conduit pipe by the management of the agency to pilfer funds.
They equally explained that the security contract tagged National Integrated Surveillance and Waterways Protection’ was also said to have been awarded to an Israeli firm HSLI Systems and Technologies Limited at the cost of $195,300,000.00, despite an existing facility which was a simple internet subscription via Lloyds Intelligence Platform for such operations.
The lawmakers said they were also cognizant of the fact that the agency was also said to have an existing surveillance system, called Lloyd’s List Intelligence, meant for tracking the movement of vessels on Nigeria’s Exclusive Economic Zone, EEZ.
They said there was evidence that the agency’s legal department had counseled against the consummation of the contract on grounds of some fraudulent claims in the agreement, but same was not heeded by the management.
The lawmakers also kicked as they expressed worry over other allegations such as abuse of office and lopsided appointment and placement of Directors of the Agency in favour of some interests to the detriment of others and in breach of S. 14(3) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, as well as other unwholesome practices within the Agency.
“We are aware of allegations of high level corruption against the DG and top management of the agency in the form of withholding of remittable revenue by Gas Shipping Nigeria Limited, Daddo Marine Limited, Blue Seas Marine Services, Transocean Support Services Limited, leading to loss of huge revenue to the Federal government. Others are the award of contracts to the DG’s cronies and other top management staff of the agency in clear violation of the Procurement Act and other Financial Regulations. Such companies include COT Engineering Limited, Well Mann Construction Company
Limited, Retin Technical and Commercial Service Limited, Messrs. De-PK Ventures Limited, amongst others,” they said.
They further said these allegations were of grave nature that should not be swept under the carpet or dismissed with a wave of the hand, particularly as it relates to economic losses on the part of the government.
Consequently, the Ad-hoc Committee was mandated to thoroughly investigate all the allegations and report back within three months for further legislative actions.
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FG to Fund Key Science and Technology Projects through PPP
By Tony Obiechina, Abuja Federal Government says it will consider using private sector funds through Public Private Partnerships (PPPs) as a funding option for certain key projects in the Ministry of Innovation, Science and Technology.This was disclosed when the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Oseodion Ewalefoh, paid a courtesy visit to the Minister of Innovation, Science and Technology, Mr Uche Nnaji.
The meeting which was at the instance of the ICRC DG, sought partnership between the two government bodies to harness PPPs to advance critical projects that can boost the economic and technological growth of the nation. Speaking during the meeting, Dr Ewalefoh said that science and technology, if properly deployed, can serve as a key driver of the economic growth and progress of Nigeria.“Many countries around the world have used Science and Technology to drive the economic growth and prosperity of their country and people.“We are here to brainstorm with you and find ways by which we can deepen the usage of science and technology for the advancement of our country.“Over the last two decades, countries and businesses have harnessed technology and innovation for upscaling their economy and improve the efficiency in their service delivery.“That is where we want our country to go, and we believe that is the vision you are championing under the renewed hope agenda of President Bola Ahmed Tinubu.“It is, therefore, my aspiration that your ministry will partner with the ICRC to see areas where we can champion private sector funding through Public Private Partnership to develop some of the projects specific to the ministry,” he said.The DG informed the Minister that there was already a collaboration with an agency under its purview but stressed that there were other key areas where PPP could be harnessed to deliver laudable projects in the Ministry.He added that the commission has streamlined its processes to accelerate PPP project delivery and deliver important services to the Nigerian people, pointing out that some key private sector operators have already verbalised their desire to work with the Ministry in a PPP arrangement.In his remarks, the Minister expressed his excitement at the appointment of Dr Ewalefoh as the DG of ICRC, saying that the DG’s wealth of experience will revolutionise the PPP sphere in Nigeria, adding that, indeed, a square peg has been placed in a square hole.The Minister emphasised that the Ministry served as a key enabler of economic growth and has had the support of President Bola Ahmed Tinubu demonstrated through major approvals granted the Ministry.He said that the President had given approval for methanol production, saying that although the implementation process were still being finalised, foreign direct investments for the project has reached over $1.5 billion.“We want to go into beneficiation of raw materials and we have the presidential executive order number 5 to back it, such that we don’t have to export our raw materials, but process it to a level before exporting. We are looking at doing green hydrogen, too,” he said.He stressed that Nigeria could make a lot more from cassava export than it was currently making if the raw cassava was processed before export.“We believe that with ICRC, we will partner in doing things right and enabling us to forge a better outlook for most of these projects.“In methanol, we are going to involve ICRC more closely to see the way forward and how it can benefit the country better.“I am happy that you are here; coming here shows that you know what you are doing. You are taking services to those that need it,” he said.COVER
Suspected Herdsmen Attack Benue Community, Kill 15
From Attah Ede, Makurdi
Gunmen suspected to be Fulani armed militia, on Wednesday night, reportedly invaded Anyiin town in the Logo Local Government Area of Benue State.
Multiple reports indicated that no fewer than 15 persons were killed in the attack, leaving several others with varying degrees of injuries while yet to be ascertained number were missing.
The attack, which was said to have been launched at about 6:30pm by the well-armed Fulani herders, caught the community unawares as the invaders reportedly emerged from different locations shooting at everyone in sight.
The attackers, who were said to be numbering about 200, were reported to be wielding AK-47 rifles and other sophisticated weapons, operated for about three hours.
An eyewitness and community leader in Anyiin town, Chief Joseph Anawah, said the armed herders overwhelmed security operatives stationed in the town because of their large numbers.
He said it was a coordinated operation, stating that the alleged Fulani terrorists took residents of the town unawares, surrounded the town and shot sporadically.
Anawah said some of the villagers who ran for their dear lives were caught in an ambush laid by the invaders.
He listed some of the victims to include: Mr Orihundu Ati, a retired primary school supervisor and the son of a kindred head.
Also killed was a son to a Chief of Staff to a former Logo council chairman, Tordoo Suswam and a relation of a late District head of Ukemberagya, Zaki John Chembe.
Anawah listed Ukemberagya, Tswarev, Mbawar, Gov, Mbainange, and Tombo among neighbouring communities earlier displaced by the invaders and whose residents were taking refuge in Anyiin before the latest attack.
The community leaders appealed to the federal government and the Benue state government to revive an abandoned Mobile Police barracks project along Akwana-Anyiin-Wukari road to secure the lives and property in the communities.
They lamented that farmers in the affected communities could not harvest their crops because they were being killed and abducted on their farms by the armed invaders.
According to them, communities along the Benue-Taraba border are the worst hit by the marauders’ incessant attacks.”This is the second attack in one month by the Fulani terrorists. On Oct. 9, they attacked Ayilamo town, the headquarters of Tombo Council Ward and killed scores of people. As I speak, people are deserting Anyiin town for fear of the unknown”, Chief Anawah said.
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Nigerians Among Most Malnourished in Sub-Saharan Africa – Abbas
By Ubong Ukpong, Abuja
Speaker of the House of Representatives, Tajudeen Abbas yesterday described growing malnutrition and food insecurity as great threat to Nigeria’s economic stability and public health.
Inaugurating the Local Organizing Committee for the National Assembly summit on nutrition and food security in Abuja, the Speaker reiterated the urgent need for legislative action to restore the country’s productivity and public health.
Abbas who was represented by Deputy Speaker, Benjamin Okezie Kalu noted that Nigeria’s rate of malnutrition is among the highest in sub-Saharan Africa.
He noted that malnutrition, especially among children, stunts physical and cognitive development, impacting long-term educational and economic potential and contributing to broader societal challenges.
The Speaker assured the lawmakers’ full support for the committee’s initiatives, urging collaboration with State Houses of Assembly to create a unified approach to combating food insecurity.
He said, “The need for this National Summit on Nutrition and Food Security has never been more urgent.
“This organizing committee’s mission is to foster collaboration across ministries, engage both public and private sectors, and create a platform for lawmakers, experts, and community leaders to address the root causes of food security challenges.”
The chairman of the committee, Chike Okafor said there is malnutrition across Nigeria, particularly in the north spiking by 51 percent among children.
He described the situation as a humanitarian crisis exacerbated by recent floods in Adamawa, Maiduguri, and Jigawa, which have disrupted food supplies nationwide.
According to him, the summit will help to in the formulation of policies to tackle food insecurity.