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  • FG, domestic airlines battle legally over proposed national carrier-Nigeria Air

    FG, domestic airlines battle legally over proposed national carrier-Nigeria Air

    FG, domestic airlines legal battle kicks off

    The Federal Government has assembled a legal team to challenge the suit filed by domestic airlines seeking to stop the establishment of a proposed national carrier-Nigeria Air.

    It was learnt on Monday that the legal team of the government and a 10-man group representing the domestic airlines, would meet in court on Thursday in Lagos over issues pertaining to the proposed national airline.

    The reporter had exclusively reported on November 14, 2022, that the national carrier project might be stopped by the court as domestic airlines had taken the Federal Government and Ethiopian Airlines-its foreign technical partner and majority shareholder-to court.

    The 10-man legal team representing the domestic airlines include Nureini Jimoh, SAN; Prof. A.B. Ahmad; Prof. Y.B Hassan; Emmanuel Dike; Habiba Nuhu; Ashraf Yusuf; Abubakar Nuhu; Zainab Maiyaki; Opeyemi Ajekigbe; and U.F Abdullateef.

    The hearing for the suit between the Federal Government and domestic airlines is due to be heard on Thursday, November 24, 2022, findings by The reporter have shown.

    Officials of domestic airlines close to the suit confirmed the suit is slated for a hearing on Thursday.

    “The battle begins on Thursday. Our lawyer has confirmed to us the suit will be heard on Thursday, November 24, 2022. The Federal Government lawyers will also be coming to represent the government. Our team of lawyers will be present,” a top official of a local carrier who chose to speak on condition of anonymity told The reporter on Monday.

    “After the court hearing on Thursday, the Federal Government will be expected to file its comprehensive defence within one month. Failure to do that means it won’t have the opportunity again,

    Meanwhile, the Managing Director, Top Brazz Aviation, one of the local carriers listed on the court paper, Mr Roland Iyayi, said he believes the domestic carriers have a strong case the court will decide upon.

    He said, “We are absolutely prepared to pursue this. Based on what we presented to the court, we believe we have a very strong case. On the basis of the documents that we have presented, we believe we have a very strong case.”

    Iyayi further explained, “Domestic airlines are not averse to having a national carrier. What we are saying is that the structure and the design that is being put together by the Honourable Minister of Aviation is a bit of an issue which we believe is not going to help the Nigerian state in a long term.

    “We have also come to find out that there are undue privileges that are going to be given to this new carrier which domestic airlines are not enjoying. For instance, the government is proposing a 15-year tax moratorium. This is not a national carrier that is being presented, this is simply a flag carrier. We believe that ultimately, the Nigerian public will not benefit. There will be unfair competition.

    “These are the issues we took to court, asking the court to determine whether or not we have a case. Already, ET has listed Nigeria Air as its subsidiary on its website. We are talking about unfair competition, contrived outcomes, lack of transparency and undue privileges that will ultimately result in a distorted market. At the end of the day, we will decimate the domestic market to the detriment of the consumers. In the absence of being unable to sit around a table to negotiate, we are left with no other choice but to go to court before it becomes too late.”

    FG legal team

    It was also gathered that the Federal Government had assembled a team of lawyers from the Federal Ministry of Justice, with some of them serving in the legal department of the Federal Ministry of Aviation, to challenge the suit by the domestic airlines.

    Sources at the justice and aviation ministries confirmed that the Director of Legal Services at the FMA, Liman S.S., would lead the team on Thursday.

    “They have many lawyers at the Federal Ministry of Justice and you know they work in a team,” a source at the aviation ministry, who requested not to be named, as he was not authorised to speak on the matter, stated.

    Asked whether the ministry would engage the services of a private law firm, the source replied, “I can’t confirm that but I don’t think that will happen. This is because most times, for such issues, they don’t just engage external lawyers to do it.

    “Rather they do it by themselves, don’t forget that the Attorney-General was named as a defendant in the suit. So I doubt if they will take it to a private firm. This is not the kind of issue that they will take to a private law firm.”

    Also speaking on the issue, the official at the Federal Ministry of Justice stated that the head of legal services at the aviation ministry would lead the team.

    “The head of the legal team at the Ministry of Aviation, who is from Zaria, Mr. Liman S. S., is the one leading the team of lawyers to challenge the suit.

    “They have many lawyers in the legal department and these lawyers are to handle the case, except when there is the need for additional hands.”

    But in a text message official response to our correspondent, the spokesperson of the Federal Ministry of Aviation, Eunice Akro, described the suit by the Airline Operators of Nigeria as uncertain.

    Aviation ministry reacts

    She pointed out that the FMA had yet to be served with the court processes of the suit.

    Akro said, “The AON suit against the establishment of a national carrier is uncertain. We are aware of the rule that prevents discussion on matters that are already before a court of law.

    “The Federal Ministry of Aviation and perhaps the other defendants in the suit are yet to be served with the court processes of the suit and the court order for the ex parte application.”

    The reporter also reported last week that Federal High Court, Lagos Judicial Division, on November 15, 2022, issued an order of interim injunction restraining the Federal Government from executing the proposed establishment of the national carrier – Nigeria Air.

    But the Federal Government, through its Minister of Aviation, Hadi Sirika, declared on the same day that no law in Nigeria could stop the national carrier project.

    On their part, domestic airlines alleged that the sale of shares of the proposed airline violated the Companies and Allied Matters Act, as well as that of the Securities and Exchange Commission.

    The document containing the Federal High Court’s order of interim injunction, with reference: FHC/L/CS/219/2022, indicated that the registered trustees of the Airline Operators of Nigeria were the plaintiff in the suit.

    It named the four defendants to include Nigeria Air Limited – first defendant, Ethiopian Airlines – second defendant, Senator Hadi Sirika (aviation minister) – third defendant, and the Attorney-General of the Federation (Abubakar Malami) – fourth defendant.

    This followed The PUNCH’s earlier exclusive report on November 14, 2022, that the national carrier project might be stopped by the court due to the suit by the domestic airlines.

    The report stated that about eight local airlines and their association took the government to court on Friday, listing Nigerian Air, Ethiopian Airlines, Minister of Aviation, Hadi Sirika, and Attorney-General of the Federation, Abubakar Malami, as defendants.

    Among other prayers, the indigenous airlines want the court to stop the national carrier deal and withdraw the Air Transport Licence already issued to Nigeria Air by the Federal Government/Nigerian Civil Aviation Authority.

    They also claimed that the firm which served as Transaction Adviser for the transaction was incorporated in March last year and alleged that the company was linked to the aviation minister.

    The local airlines further alleged that ATL issued to Nigeria Air did not pass through the normal security clearance.

    Responding to the prayers of the plaintiff in the documents sighted on November 15, 2022, the court ordered that “an order of interim injunction is granted restraining the defendants either by themselves, agents, privies, principals or any other persons whosoever from executing the proposed or draft ‘national carrier establishment and agreement between the Federal Government of Nigeria (represented by the 3rd and 4th defendants) and the strategic equity partner (the 2nd defendant) or giving effect to and or suspending the sale and transfer of the shares and operations of the 1st defendant by the 2nd defendant pending the determination of the motion on notice.

    “That an order of maintenance of status quo by all parties in this suit from taking any further step(s) in relation to the subject matter of this suit pending the determination of the motion on notice is granted.

    “That an order of accelerated hearing of this suit is granted.”

    Aviation minister’s position

    But the aviation minister stated on same day that no law in the country would stop the Federal Government from setting up an airline for Nigeria.

    Sirika, who was in Lagos to commend the successful completion of the 18/L runway of the Lagos airport, also stated that he had yet to receive the court papers as regards the suit instituted against the proposed national carrier.

    He had said, “I am not aware that anyone is in court. I don’t have any court papers; otherwise, I am not interested. I cannot see any rational court that will say that I am stopping somebody from establishing a company, because Nigeria Air is a limited liability company known to the Nigerian laws in the Corporate Affairs Commission.

    “If anybody wants to come and invest in that company, there is no law in Nigeria that stops him from doing so. If there are foreigners coming to invest, nobody stops them from investing. You can own a company 100 per cent. What would you say to Shell, Unilever, and Julius Berger?

    “There are companies in Nigeria registered by Nigerian law and people are coming to invest. This is what we want. We want Foreign Direct Investment. If people or Nigerians are investing in the airline with over $200m in Nigeria and so what? We want more of them”.

    Sirika wondered why domestic airline operators would claim that they were not carried along in the setting up of the proposed Nigeria Air.

    “I heard that the airline owners said that they were not carried along. If you were there at the National Assembly, I told them where I met them like the Max Air, Azman, Air Peace, Ibom Air, everybody where I met them and told them to please come and partner in this airline and own it,” he said.

    Sirika added, “I told them that it is meant for the private sector. I told Air Peace to come and invest in this one and one of them said to me that I should make it formal. I said to him that I met you in your own place, met with you and invited you and told him that I have put it in all places as adverts.

    “I also put it in The Economist, on television, and also put it on the website. How formal can that be? I always beg them and said all stakeholders are invited to be owners of the airline as private sector people. Nobody will say he was not invited.”

    The minister insisted that the national carrier project was in order, stressing that the Federal Government would forge ahead with the establishment of the proposed airline.

    (Punch)

  • FG, British High Commission mum over IPOB’s alarm of planned attack on High Commissioner during SE visit

    FG, British High Commission mum over IPOB’s alarm of planned attack on High Commissioner during SE visit

    The Federal Government and the British High Commission in Abuja were mum Thursday on the warning issued by the Indigenous People of Biafra (IPOB) asking the British High Commissioner to Nigeria, Catriona Laing to halt planned travels in the South East warning that such trips could be “suicidal”.

    In a statement issued by its spokesman, Emma Powerful, and made available in Awka, Anambra State capital, on Thursday, IPOB alleged a plot by unnamed persons to kill the British envoy in the area and blame its members for it.

    Powerful, who accused the high commissioner of “Hatred against the Igbos and Biafra” said the group would not want to harm Ms Laing but asked that she “Must as a matter of life and death suspend all her planned activities involving travels” in the South East.

    In a statement issued on May 6, the British government said though it does not change its position against recognising IPOB as a terrorist organisation, as requested by the Nigerian government, they would however not grant asylum to anybody linked to the group’s violent activities.

    The IPOB claimed it got the information about the alleged plan to assassinate the envoy through its intelligence arm, the M-Branch.

    “We wish to advise the British High Commissioner, Catriona Laing to be more conscious of her environment. We, as well call on the British High commissioner to shelve her regular visits to different parts of the Nigerian countryside especially the Biafraland otherwise referred to as the South East.

    “The reason for this sincere security advice is to save her life. Despite her hatred for Biafra and Igbos in particular, we have optimal respect and value for the sanctity of life, especially visitors to our land.

    The statement alleged that the plot was an “Orchestrated conspiracy to perform a sacrifice big and powerful enough to strengthen the potency of the British hatred against the Igbos and Biafra. Such high profile plan is zeroed toward using a highly placed person capable of making headline news globally as a scapegoat.

    “Their aim is to quash the agitation for self-determination and to kill as many Indigenous Biafrans as possible and other residents in Biafra land”.

    Powerful said IPOB does not wish the British envoy dead, “However, if she ignores this advice and walks into the trap already set by enemies of Biafra struggle that will be considered suicidal”.

    According to the statement, IPOB had never attacked British persons, citizens, institutions, investments and properties of any kind, and does not have such intention now or in the future notwithstanding being at the receiving end of the British unpleasant attitudes, Igbophobic, Biafraphobic and stringent policies.

    The group also accused presidential spokesperson, Garba Shehu and those it called “co-cabals” of hatching plans to tarnish the image of ESN and IPOB.

    No comment from FG, High commission

    Segun Adeyemi, spokesperson for the Minister of Information, Culture and Tourism, Alhaji Lai Mohammed declined comments when contacted on Thursday.

    Also, the Head of Communications at the British High Commission in Abuja, Dean Hurlock, promised to revert to our reporter but failed to do so up to the time of filing this report.

    When reminded to respond to the enquiry, Hurlock replied: “We don’t have any for you right now. Sorry.”

    On whether the British High Commission still disagreed with Nigeria’s view of labelling IPOB as a terrorist group, he insisted that they still stand on the position.

    Warning shows depth of insecurity in the S/East – Don

    Two political scientists and international relations scholars who commented on the issue Thursday night said the warning showed the seriousness of the security challenge in the South East and a plot to score political points on the part of IPOB.

    Professor of Political Science and International Relations, Lagos State University (LASU), Sylvester Odion yesterday said the advisory issued by IPOB to the British High Commissioner shows the high level of insecurity in the southeastern part of the country.

    In a chat with Daily Trust last night, Odion said the British diplomat could be a target for the role Britain played during the Civil War when it supported the federal government against Biafra.

    He said the IPOB warning has only underscored the depth of the insecurity in the South East and the seeming control of that region by IPOB terrorists.

    “It is very dangerous for any VIP to go at this moment. Even Igbo people who are indigenes of the South East, many of them are afraid to travel talkless of a big target.

    The university don warned the British Commissioner that traveling to the South East could be risky even as the US and the UK had issued travel advisory for their citizens against going to the East and other parts of the country.

    “Perhaps it might be in their interest to warn the diplomats not to travel there and even I do not also see the reason why the diplomats want to travel to the East when both the US and Britain have issued travel warnings in certain parts of Nigeria.

    “It is in that context that it can be seen and if they are hostile to the British diplomats, it could not be unconnected also with the role that they played when Nnamdi Kanu was to be extradited from Kenya without the British intervening on behalf of someone who is believed to be a British citizen.”

    On his part, a lecturer with the Department of Social Sciences, Kano State College of Arts, Science and Preliminary Studies, Dr Kabiru Sa’id Sufi, said the main reason for the statement is to embarrass the federal government and send wrong signals to the international community.

    He explained that “The main reason behind the statement is to embarrass the federal government of Nigeria and to overblow the situation out of proportion. But then, not many people can look at it from that angle.

    “There is every possibility that that statement may send jitters to a lot of quarters and hamper diplomatic fizzles and send wrong signals.

    “I think it needs to be downplayed. The federal government on its part has to counter the statement and also issue a reassurance statement, not only to the diplomatic visitor but to all and sundry that it is up and doing.

    “The statement has a lot of implications, especially coming at a time when the president has just complained about the absence of direct foreign investment in the country. It is a great signal to the international community that some parts of the country are not safe and secure.

    “Secondly, there is every possibility that countries can issue travel advisory to their citizens against traveling to some parts of the country, which will also have some political and economic implications on the country.

    “It also shows the enormity and magnitude of the crises in the region is beyond what local media is portraying and is beyond what people know and believe to be the extent of the crisis. So, it has so many implications,” Dr Sufi added.

    (Daily Trust)

  • FG warns Facebook, other social media platforms against promoting IPOB

    FG warns Facebook, other social media platforms against promoting IPOB

    The Federal Government has said, henceforth, it would monitor closely, activities on Facebook and other social media platforms.

    This, the government stated, was to ensure compliance with its demand that Facebook and other social media platforms put an end to the use of their platforms by the proscribed Indigenous People of Biafra (IPOB) to incite violence and instigate ethnic hatred in the country.

    Minister of Information and Culture, Lai Mohammed, stated this in Abuja at a meeting with a team from Facebook.

    Mohammed told the delegation that since IPOB had been proscribed and classified as a terrorist organisation, Facebook had no justification for yielding its platform to the organisation to further its campaign of hate and destabilisation of the country.

    “I have called this meeting to enable us to discuss the increasing use of Facebook by separatists and anarchists, especially those of them based outside the country, to instigate violence and ethnic hatred in Nigeria.

    “For whatever reason, they seem to have now chosen Facebook as their platform of choice. And their tools include disinformation, incendiary statements and hate speech. They use Facebook broadcasts to reach their followers who are in thousands. They tag those opposed to their violent ways as ‘saboteurs’ who must be attacked, maimed and killed. They use both English and their local language as it suits them,” Mohammed said.

    Mohammed further said the activities of IPOB have real-life implications, saying: “By purveying hate and inciting violence, people are getting killed, while private and public property are being attacked and destroyed. Security agencies and other symbols of government are their choice targets.’’

    The minister also said despite the numerous complaints to Facebook on the activities of IPOB, nothing has been done by the company to curtail the group’s excesses on the social media platform.

    (Sun)

  • FG insists Malami, Amaechi, Emefiele, Ngige must resign

    FG insists Malami, Amaechi, Emefiele, Ngige must resign

    President Muhammadu Buhari has officially written Governor of the Central Bank of Nigeria (CBN), Godwin Emefelie, and heads of agencies like the Federal Inland Revenue Service (FIRS), Revenue Mobilisation, Allocation and Fiscal Commission, among others seeking to contest the 2023 general elections to resign.

    This directive by President Muhammadu Buhari’s was contained in a circular issued, yesterday, and signed by the Secretary to the Government of the Federation, Boss Mustapha.

    Buhari had at the Federal Executive Council (FEC) meeting on Wednesday directed his appointees who have indicated interest in vying for elective positions to resign.

    However, to clarify confusion in certain quarters regarding the fate of the appointees who are not cabinet members, Mustapha said Buhari had further directed that heads of extra-ministerial departments, agencies and parastatals of government, among others to resign.

    “Consequently, Mr President has directed that the affected office holders aspiring to run for various offices in the 2023 General Elections, should tender their resignation on or before Monday, May 16.

    “For the avoidance of doubt, this directive affects all ministers, heads and members of extra-ministerial departments, agencies and parastatals of government, ambassadors as well as other political appointees who desire to contest for elective offices,’’ SGF said.

    According to him, for smooth running of the machinery of government and foreign missions, the affected ministers are to hand over to ministers of state where they exist or to the permanent secretaries, where there is no minister of state.

    “Ambassadors shall hand over to their Deputy Heads of Mission or the most senior foreign officer in line with established practices.

    “Similarly, heads of extra-ministerial departments, agencies and parastatals are to hand over to the most senior directors/officer as may be peculiar to the organisation, in line with the service wide circular No. SGF.50/S.II/C.2/268 of Dec. 4, 2017,’’ he said.

    It was, however, unclear if President Buhari has the powers to order Emefiele’s resignation or dismissal as the Act establishing the CBN emphasises its independence from external influence.

    Meanwhile, Emefiele, yesterday, met with President Muhammadu Buhari, after which he declared that “there will be news.”

    He had earlier gone to court to challenge the public service rule that requires public office holders to resign their positions before contesting for elective positions.

    Asked to react to the story that the President had directed him to resign forthwith, Emefiele said: “There is no news now, but there will be news. You heard me, I said there is no news but there will be news.”

    When reminded that given his current position, his ambition was creating anxiety among Nigerians and the international community, Emefiele replied: “Let them have heart attack; it’s good to have heart attack. I’m having a lot of fun.”

    A group of farmers had procured the N100 million presidential nomination forms of the APC for Emefiele, a move he said lacked his backing. Nonetheless, videos have emerged of several vehicles adorned with Emefiele’s presidential campaign materials, suggesting a plan to contest the poll.

    •Court joins PDP, others as defendants in CBN Gov’s suit

    A Federal High Court, Abuja, yesterday, ordered the PDP and two others to be joined in a suit filed by Emefiele over his presidential ambition.

    Justice Ahmed Mohammed gave the order after the PDP and two other lawyers, for themselves and on behalf of members of Save Nigeria, Our Fatherland, moved their motions to the effect.

    Emefiele, through his lawyer, had, on Monday, approached the court with an ex-parte motion, seeking the court’s interpretation as to whether he could run for the 2023 presidential primary while he holds as governor of CBN.

    He had sought an order of the court, restraining the Federal Government from removing him from office over his presidential ambition, pending the hearing and determination of the substantive matter.

    He also prayed the court to stop the INEC from taking any action against him in the bid to contest in the presidential primary by virtue of his office.

    The CBN governor made the prayers in an ex-parte motion dated and filed on May 9 by Chief Mike Ozekhome seeking an order of maintenance of status quo ante bellum pending the hearing and determination of the substantive suit.

    Emefiele, in the suit, sued INEC and the Attorney-General of the Federation (AGF) as 1st and 2nd defendants respectively

    (Sun)

  • FG accuses PDP of plotting another EndSARS protest

    FG accuses PDP of plotting another EndSARS protest

    The Federal Government has accused the Peoples Democratic Party (PDP) of plotting another round of EndSARS protest and peddling lies about the government of President Muhammadu Buhari.

    Minister of Information and Culture, Alhaji Lai Mohammed told a press conference in Abuja, yesterday, that though there is nothing wrong in having a viable opposition, the PDP went too far in seeking the country’s destruction through its utterances and actions.

    In its reaction to the weekend national convention of the All Progressives Congress (APC) held in Abuja, at the weekend, where a new National Working Committee of the party was elected, a day after, the PDP, in a statement by the its spokesman, Debo Ologunagba, the party said it was “appalling to see APC leaders come out one after the other at their national jamboree to spew out lies and false performance claims on the economy, infrastructure and security even in the face of biting economic hardship, high cost of living, excruciating fuel emergency, lingering crisis in the education sector and escalated insecurity that was happening real time and simultaneously when the ridiculous claims of achievements were being made.”

    But, the Federal Government accused the PDP of advocating the destruction of Nigeria by threatening to unleash another round of EndSARS on the country and deliberately misinforming Nigerians on the APC government.

    “…As you know, the folks on the other side have been doing everything in recent times to overheat the polity, distort the achievements of our Administration and spread misinformation. Yes, it is very cold out there for the hungry and desperate opposition, but every indication is that they don’t even want to wait for the 2023 elections before testing their popularity or acceptability at the polls.

    “How else does one explain their court case seeking the declaration of our convention as illegal? How do you explain their threat of another EndSARS that pushed Nigerian to the brink? How do you explain their glaring misinformation regarding the nation’s state of affairs?

    “There is nothing wrong in having a fiery and viable opposition in a democracy. We were there before and we remain the ones to beat in terms of a determined, viable and relentless opposition. But, in our time, not once did we advocate the destruction of Nigeria just because we couldn’t have our way. Not once did we seek to gain power via a desperate court action. If you destroy the country you are seeking to govern, what country will you govern? Must you cut your nose to spite your face?

    “In their most recent act of desperation, they sought to erase seven years of unprecedented achievements by the Buhari Administration. In the most egregious show of shamelessness and a blatant refusal to be remorseful, they even had the audacity to express righteous indignation that the damage they inflicted on the country in their 16 years of misrule has not been totally undone in just seven years. In other words, those who brought the country to its knees are now accusing those working hard to repair things of non-performance. They said they are ready to rescue Nigeria. Pray, where do kidnappers rescue their victims? These same guys who kidnapped the fortunes of their country are suddenly posing as rescuers. Caveat Emptor; buyers beware! Nigerians beware!” government said.

    The minister dismissed the opposition party’s claim that the PDP government handed over $550 billion economy, with single digit inflation and a much reduced debt profile.

    “Ask them what infrastructure did they leave behind? Ask them how many motorable roads did they leave behind? They frittered away our gains from oil sales. How many times, on paper, did they launch the second Niger Bridge? How many times did they launch reconstruction of the Lagos-Ibadan expressway on paper?

    “We are not saying that opposition should not critique. What we are saying is that they should not promote anarchy because we didn’t do that in our time. They wrecked the the economy and we are rebuilding it. They wrecked the country’s infrastructure and we are rebuilding them?…When PDP left, 21 states could not pay the salary of their staff. They should stop re-writing history while we are alive..”

    Asked if he was satisfied that the APC government has ameliorated the sufferings of Nigerians, in light of the present economic situation in the country, Mohammed replied: “I’m very proud of this administration’s efforts to ameliorate the suffering of Nigerians. Before we came, there was nothing like the National Social Investment Programme (NSIP).

    “They gloat that Nigerians are suffering under our watch. But we say that while they laid the ground work for today’s suffering with their mismanagement of national resources at a time of plenty, we have introduced unprecedented measures to alleviate the suffering of Nigerians, especially the very vulnerable. Our NSIP is the biggest of its kind in sub-Saharan Africa. The N-Power benefits one million people; the Government Enterprise and Empowerment Programme (GEEP), has benefitted four million people; the National Home Grown School Feeding Programme (NHGSFP) is providing quality meals daily to 10 million primary school pupils, in addition to empowering over 100,000 cooks and the same number of small holder farmers in the local areas where the schools are located; the Household Uplifting Programme (HUP), which has the Conditional Cash Transfer (CCT) as its flagship intervention, provides N5,000 monthly grants to almost 2 million eligible households across the country, in addition addition to the 1 million Urban Poor who are benefitting from the Conditional Cash Transfers, under the directive of Mr. President to further expand the programme due to the Covid-19 Pandemic.”

    On the double digit inflation raving the economy, the minister noted that, “ inflation is a global issue. On petrol scarcity: if only they did the needful (in overhauling infrastructure), we would have been benefitting from increase in crude oil prices today.”

    (Sun)

  • ASUU: FG not showing interest in public Universities

    Two days to the expiration of the warning strike by the Academic Staff Union of Universities, the National President of the union, Prof Emmanuel Osodeke says “nothing tangible has been done”.

    Saturday PUNCH reports that the union had on Monday, February 14, 2022, declared a total and comprehensive four-week warning strike.

     

    The strike, according to the union, was due to the failure of the government to implement the agreement the Federal Government signed with the union in 2009.

    ASUU had also accused the Federal Government of working against the deployment of the UTAS, a payment platform designed by ASUU in lieu of the IPPIS payment system.

    The Minister of Labour and Employment, Chris Ngige, had summoned meetings with the union and other ministries and agencies in a bid to change the mind of the striking lecturers.

    The minister in an interview with The PUNCH had also said that ASUU’s demands were currently being implemented.

    But Osodeke said nothing tangible had been done.

    In an interview with Channels Television, which was monitored by Saturday PUNCH, Osodeke said, “Nothing tangible has been done so far. We have met with the Minister of Labour twice.

    “We gave a room for them (NIREC) to intervene and they did. What we see is a lack of will and lack of interest in the public university system.

    “The strike didn’t need to last more than one week if the government had taken it seriously. When they had problem in Ukraine where the sons of the rich were studying, we saw how fast they released money, but in the country where the children of the poor are studying, nothing has been done.”

    Meanwhile, the General Assembly of the Committee of Vice-Chancellors of Nigerian Universities has called on the Federal Government to be proactive and embrace dialogue in a bid to resolve the ongoing disagreement between ASUU and the Federal Government.

    The VCs made this call in a communiqué issued at the end of their 80th meeting held in Abuja on Friday.

    The committee added that Nigerian universities would not be able to withstand the consequences of a prolonged strike.

    The PUNCH reported that ASUU on February 14, 2022 embarked on a four-week warning strike following the failure of the Federal Government to implement the agreements it signed with the union.

    The union had also said it would go on a total and comprehensive indefinite strike should the government fail to honour its demands before the end of the one-month warning strike.

     

    The communiqué partly read, “Members expressed regret that the nation’s public universities are witnessing another strike action resulting from a trade dispute with the unions.

    “It expressed the need for the Federal Government to be proactive and dialogue with the leadership of the union to ensure an amicable resolution of the crisis.

    “At the heart of the dispute is the public universities’ funding, which members noted was grossly inadequate.”

    “The meeting noted that public universities might not absorb the consequences of another prolonged strike by the union if the outstanding issues were not quickly resolved.”

    On the issue of fake admissions, the committee decried the high rate and resolved to schedule a meeting with the Registrar of the Joint Admissions and Matriculations Board.

    The vice chancellors added that members decried the issue of illegal admissions into public universities and resolved that an urgent meeting with the JAMB Registrar to draw his attention to the matter with a view to ending the act.

    The communiqué further read, “The meeting noted that the way Vice-Chancellors are summoned by various committees of the National Assembly was improper. The meeting suggested that a meeting with the leadership of the National Assembly was necessary to find a better process of engagement.

    “The committee saluted the efforts of the Committee of Pro-Chancellors in raising this matter with the Visitor. It advised that there should be constant follow up to ensure that Mr. President grants the request to lift the embargo.

     

    (Punch)

  • FG accuses ASUU of not meeting Govt’s demand

     

    The Federal Government has said it’s still waiting for the Academic Staff Union of Universities (ASUU) to upgrade and return the Universities Transparency Accountability Solution (UTAS), which failed the integrity test.

    National Information Technology Development Agency (NITDA) Director General, Kashifu Inuwa, spoke to State House Correspondents at the end of Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo at the Council Chambers, Presidential Villa, Abuja.

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    ASUU has been on strike since February 14 over a face-off with the Federal Government which included the non-acceptance of UTAS as the payment platform to replace the Integrated Personnel and Payment Information System (IPPIS).

    While government insisted that UTAS has failed the necessary tests that should qualify it to be used as a payment platform, ASUU accused the government of not being ready to accept its alternative platform to the IPPIS.

    Asked to give update on UTAS being one of contentious issues that led to the ongoing ASUU strike, Minister of Communications and Digital Economy, Isa Pantami, said he acted on the letter from the Minister of Labour and Employment, Chris Ngige, requesting a review of the submission and the technical ability of the software of the system, by forwarding it to NITDA for action.

    “They (NITDA) conducted their analysis, their testing and sent same back to me, and I drafted a cover letter which I forwarded to the Minister of Labour and Employment and copied the minister of education, minister of finance, budget and national planning, and also office of the accountant general of the federation and even National University Commission.”

    Giving clarification on the position of UTAS, Inuwa said: “When we received the request to review, UTAS, you know, building complex system like UTAS that involves employees’ personal data, and also payment system, we have to subject it to do best practice tests before approving. Normally, when we are reviewing that kind of system, we perform three tests.”

    “Firstly, because when you’re building system, it’s not just about the technology, you need to consider the people that will use this system and the process. If you don’t align people, process and technology, you will never get result. No matter how good the technology is, if the people don’t understand how to use it, they won’t use it. And if the process is different from the way the people work, also, they won’t use it. So, that is a process of building technology.

    “Again, you need to get the business requirement. What do you want to achieve? So, it’s not the technology that will come first, it is the business requirement, what do you want to achieve, then you need to identify the capabilities you need to achieve, that is your business objective.

    “Part of the capability is the technology you need to bring in and the people that will operate the technology before you start thinking of the technology, because technology is always a tool that will help you to achieve an objective or to do your work. If you bring the tool before knowing what to do with it, it will be useless.

    “So, when they came, we said okay, fine, we will do user acceptance test, ASUU you’ve built this system, but you are not the one that will use the system. There are people in bursary, and all those in finance that will use this system. So, we need to do user acceptance test with them, let them come and show the system, let them see if it can help them to do the work there.”

    (Sun)

  • FG urges NLC to call ASUU to order

    The Federal Government has asked the Nigeria Labour Congress (NLC) to advise its affiliate, the Academic Staff Union of Universities (ASUU), to abide by the provisions of the Trade Disputes Act by calling off its ongoing strike.

    Minister of Labour and Employment, Chris Ngige, made the call when he spoke at the opening ceremony of the 2022 edition of the National Labour Advisory Council (NLAC) in Lagos, yesterday.

    The minister, in a statement by the ministry’s spokesperson, Charles Akpan, in Abuja, also urged the council to discuss as part of its agenda, a workable recipe that appropriately conciliates disputes with associations that are not properly registered as trade unions to ensure they fully abide by the provisions of the law.

    He said: “What will be the relationship with workers’ organisations that are not properly registered as trade unions? The Labour Act is there and it says the minister can discuss with them. But they don’t fully conform with legal provisions, especially in terms of style of negotiation and conciliation. NLAC should, therefore, come to the aid of the country here.

    “Even though the Trade Disputes Act permits the minister to apprehend and deal with these workers that have not been registered as unions, you can also see that when dealing with them, you encounter problems because they do not fully understand the nuisances or obey the labour laws as it should be.

    “If you are a union, you give adequate notice before proceeding on strike. If you are a union too and your strike is apprehended, you go back to your work while necessary adjustment is made to give you justice. NLAC is expected to get the workers’ side of the tripartite to live up to their responsibilities in this regard.”

    The minister noted that some associations in critical sectors of health and education such as Nigeria Medical Association (NMA) National Association of Resident Doctors (NARD) are in actual fact, not properly unionised. NMA and NARD are not a trade union. They are an association of workers.

    “The university teachers are registered under ASUU and are affiliated to the NLC but that affiliation is only in name. It is not, because they don’t obey the Labour Act as it concerns conciliation.

    “For example, ASUU declared a month-long strike and called it a warning strike. It did not notify its employer, the Ministry of Education, nor did the union notify me, the minister of labour, that there is a breakdown in negotiation. I know they had some discussions which were in limbo but I should be notified properly so that I can arrest the breakdown and bring it forward for proper conciliation.

    “Now, I apprehended the dispute in consonance with the Labour Act. They came for conciliation, only for them to go back and continue the strike. This is illegal. The law is that once a dispute is apprehended, everybody returns to status quo ante. The law also says if I arrest a dispute and the party or parties are not ready to conform, I should transfer the dispute within 14 days to either the Industrial Arbitration Panel or to the National Industrial Court of Nigeria in line with Section 17 of the Trade Disputes Act. But I’m concerned that if I do this suo motu, this will not solve the problem getting our children back to school outright

    “So, I’m using this opportunity to plead with the NLC to which ASUU is affiliated, to call them to order, make them obey the law, to let them know what the Trade Disputes Act says and as university teachers, who are even teaching industrial law, to abide by the law. They should call off that strike. That strike is not appropriately instituted. I have conciliated, and made sure the issues in disputes have been decisively dealt with.”

    (Sun)

  • Senate disapproves FG’s plans to borrow $200m for mosquito nets

     

    The Senate Committee on Local and Foreign Loans on Tuesday kicked against the proposal by the Federal Ministry of Health to borrow $200m  under the Malaria Programme to buy mosquito nets in the 2022 budget.

     

    The committee’s condemnation was in response to the Ministry of Health’s submission about its intention to borrow the amount for purchase of mosquito nets for 13 vulnerable states.

     

    The Permanent Secretary in the Ministry, Mahmuda Mamman had justified the proposal before the panel.

     

    He said, “The loan if approved by the National Assembly and accessed, will be used to medically fight malaria in the 13 orphan states which cover 208 local government Councils and 3, 536 primary health care centres”

     

    Angered by his submission, Senator Ibrahim Oloriegbe and other senators present descended heavily on the Permanent Secretary and the Executive Secretary, National Primary Health Care Development Agency, Dr.Faisal Shuaib.

     

    Oloriegbe wondered why N450m was budgeted for Malaria treatment in the proposed 2022 budget and yet, plans being made to borrow $200m for the same purpose.

     

    He said, “This is unacceptable. We should be able to put our feet down when dealing with these donor agencies or creditors  as regards loans to be taken and what it should be expended on.”

     

    “Don’t we have local manufacturers of mosquitoes nets and malaria drugs in Nigeria to patronise with the loan even if approved.

     

    “This is a clear case of money and jobs for the boys by creditors luring you for loans and railroading you on what it should be spent on.

     

    “Washington or whatever creditor offering the loan, should stop giving us money with one hand and taking it back with another hand through railroaded spending,”  he said.

     

    Other members of the committee like Senators Adelere Oriolowo (APC Osun West), Abba Moro (PDP Benue South) and other, also blamed the Ministry for coming up with such idea.

     

    The N450m already budgeted for fighting the scourge in the alleged vulnerable areas, according to them, was enough.

     

    They angrily asked the permanent Secretary to explain how the idea was arrived at and how it will be implemented.

     

    The Permanent Secretary in his response said subsidiary arrangement had been made with all the states involved through required signing of agreement.

     

    In his further clarification, the Executive Director, National Primary Heal Care Development Agency, NPHCDA, Dr. Faisal Shuaib noted that the $200m was for importation and local production of mosquito nets.

     

    The panel however demanded the total needs of the agency to ascertain if there was need for borrowing.

     

     

     

     

    Source: www.punchng.com

  • FG spends 2.89tn on debt servicing

     

     

    The Federal Government has said that it spent N2.89tn on debt servicing between January and August.

     

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this during the public presentation and breakdown of the highlights of the 2022 appropriation bill held in Abuja on Friday.

     

    According to Minister, in the first seven months of the year, total expenditure made by the government stood at N8.14tn out of which N2.88tn was utilised for debt servicing, N2.75tn was spent on overhead cost, while N1.75tn was expended on capital projects.

     

    On revenue, she said that the government generated a total of N3.9tn comprising, Company income tax of N547.5bn; Value added Tax collections of N235.7bn, customs collections of N338.6bn and other revenues which amounted to N1.7tn.

     

    With a debt servicing cost of N2.89tn and total revenue of N3.9tn, the federal government spent about N74 per cent of its revenue on debt servicing within the review period.

     

    Zainab said, “For the 2021 performance, between January and August, revenue generated was N3.93tn which was 73 per cent of the prorated target. Out of this amount, CIT and VAT collections were N547.5bn and N235.7bn respectively representing 121 percent in the case of CIT and 148 per cent in the case of VAT of the prorated target.

     

    “Custom collections 338.6bn represents 99 per cent of prorated target. Other revenues amounting to N1.7tn of which the federal government independent revenue of N691.36bn while GEOs revenue was N873.5bn.

     

    “On the expenditure side, N8.14tn representing 84 per cent of the N9.71tn prorated expenditure from January to August has been spent.

     

    “This performance includes expenditure estimates of Government Owned Enterprises (GEOs) but doesn’t include project tied loans

     

    “Of the expenditure, N2.89tn was utilized for debt servicing, while N2.57tn was utilised for personnel cost including pension and gratuities. As at the end of August, N1.75tn has been expended for capital projects, of this amount, N1.723tn represents 81 per cent of the aggregate provision for Ministries Department Agencies’ capital prorated, while N36.01bn is expenditure from GEOs.

     

    “So the story here is that the revenue performance aggregate is 73 per cent but the fact is that the non-oil revenue performing very well above the target, while the oil and gas revenue is lagging.

     

    She added that the government borrowed the sum of N3.65tn between January and August to finance its N4.3tn fiscal deficit. The rest of the deficit was covered by proceeds from the sales of government assets through the privatisation process and a drawdown of bilateral and multilateral tied loans.

     

    “As at August we had a fiscal deficit of N4.29tn, this is against the prorated target of N4.61tn and we financed this deficit by utilization of N136.77bn from proceeds of the sales of government assets through the privatisation process, also by drawdown of bilateral and multilateral tied loans in the sum of N473.12bn and new borrowings of N3.65tn from both domestic and foreign sources,” she said.

     

     

     

     

     

     

    Source: www.punchng.com

     

  • FG generates 73% of its 2021 targeted revenue.

     

    Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, says the the Federal Government has generated N3.93 trillion, being 73 per cent of its targeted N7.9 trillion revenue for 2021.

     

    She made the disclosure on Friday in Abuja, at the Public Presentation and Breakdown of the Federal Government 2022 Appropriation Bill.

     

    The News Agency of Nigeria (NAN) reports that President Muhammadu Buhari presented the N16.39 trillion 2022 Appropriation Bill to a joint session of the National Assembly on Thursday in Abuja.

     

    According to Buhari, total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion, including grants and aid of N63.38 billion, as well as the revenues of 63 Government-Owned Enterprises (GOEs).

     

     

    Described as a budget of Economic Growth and Sustainability, it was predicated on a conservative oil price benchmark of US$ 57 per barrel with daily oil production estimate of 1.88 million barrels per day.

     

    The minister said the exchange rate of N410.15 per US dollar and projected Gross Domestic Product (GDP) growth rate of 4.2 per cent and 13 per cent inflation rate, were also taken into consideration.

     

    Ahmed said that of the generated revenue for 2021, the Federal Government’s share of oil revenues was N754.2 billion, representing 56.3 per cent of performance of the prorated sum.

     

    She added that non-oil taxes revenues stood at N1.15 trillion, representing 115.7 per cent, which was above what was targeted in the 2021 budget.

     

     

    On the expenditure side, the minister said that N8.14 trillion had been spent out of the N9.71 trillion prorata budget, adding that it was inclusive of expenditure estimates of Government-Owned Enterprises (GOEs), but excluded project-tied loans.

     

    Giving a breakdown of the expenditure, Ahmed said that N2.87 trillion had been expended on debt service and N2.57 trillion for personnel cost, including pensions, while N1.79 trillion had been expended for capital projects.

     

    Speaking on the 2022 Appropriation Bill, Ahmed said that the N16.39 trillion proposed to be spent was 12.2 per cent higher than the initial 2022 Medium Term Expenditure Framework (MTEF).

     

    She said that of the amount, N10.132 trillion was projected to be generated as revenue and N6.26 trillion which was 3.39 per cent of GDP as deficit would be financed majorly by borrowing.

     

    According to her, to fund the deficit, N2.51 trillion would come from domestic sources, another N2.51 trillion from foreign borrowing, N1.16 trillion from multi- and bi-lateral loan drawdowns and N90.7 billion from privatization proceeds.

     

     

     

    For the revenue, she said that N3.53 trillion would come from oil, N2.13 trillion from taxes, N1.816 trillion from independent revenue, N1.728 trillion from retained GOEs and N924.31 billion from other revenue sources.

     

    On expenditure, she said that recurrent expenditure, which is non-debt spending, was estimated to cost N6.83 trillion, while aggregate capital expenditure was pegged at N5.35 trillion and N3.61 trillion would go for debt servicing, while N292.7 billion would provide for retirement of maturing bonds to local contractors and suppliers.

     

    Speaking on critical sectoral allocations, Ahmed said that defence and security sector, at 15 per cent, would get N2.41 trillion, infrastructure at 8.9 per cent N1.45 trillion and education sector 7.9 per cent of the budget at N1.290 trillion.

     

    For the health sector, 5 per cent of the total budget at N820.2 billion and social development and poverty reduction programmes at 5.3 per cent of the budget would get N863 billion.

     

    Ahmed, however, said that the 2022 budget was expected to further accelerate the recovery of the nation’s economy.

     

    “We are optimistic of attaining more inclusive GDP growth as we focus on achieving our objective of massive job creation and lifting millions of our citizens out of poverty.

     

    “Early passage of the 2022 budget for implementation from January 1 will significantly contribute towards achieving government macro-fiscal and sectoral objectives.”

     

    She said that though revenue currently remains the nation’s fiscal challenge, government remained committed to the effective implementation of the Strategic Revenue Growth Initiatives (SRGI).

     

     

     

     

     

    Source: www.vanguardngr.com

  • FG squeezes Private Sector out Bonds Market

    Indications have emerged that the Federal Government’s bond issues are squeezing the private sector out of the bonds market as it has raised over N4.7 trillion, far above what private sector organisations have been able to raise from the Nigerian capital market, Year-to-Date, YtD August 2021.

     

    The private sector raised N802 billion in corporate bonds from the capital market for the same period.

     

    Consequently, analysts and capital market operators have criticised government’s excessive borrowing from both internal and international markets without considering the revenue to service the debt even as it has reached the alarming point of crowding out the productive real sector.

    Analysts posited that the crowding out effect on the private sector poses grave danger to the capacity of the real sector to create wealth and generate productive employment. They thus advocated low interest rate environment for the private sector to be encouraged to raise debt capital (corporate bonds).

     

    Sukuk, Green, Euro bonds

     

     

     

    Meanwhile, the Federal Government had issued Sukuk bond, Green bond and Eurobond. Federal Government bonds are the most liquid and capitalized bonds on the Nigerian Exchange Limited, NGX.

     

    The Federal Government issues bonds in the primary market through the Debt Management Office, DMO at its monthly auctions and these bonds are subsequently listed on the exchange for trading.

     

     

     

    These bonds are backed by the full faith and credit of the Federal Government of Nigeria and are semi-annual, coupon-paying bonds. Income earned on FGN Bonds is tax-free.

     

    Financial Vanguard findings from data obtained from NGX showed that the Federal Government had raised over N4.7 billion which were listed on the exchange, Year to Date, YtD, August 2021while about N802 billion of corporate bonds in various categories were raised and listed accordingly.

     

     

     

    The various companies that have taken advantage of the low performance in the fixed income market to raise bonds at rates below 10 per cent to the tune of N802 billion includes three issuers namely, Dangote Cement Plc, N300 billion MTN Nigeria Plc, N100 billion and BUA Cement Plc, N115 billion. They raised over 60 per ent of the total bond raised in the market.

     

    Other issuers include Fidelity Bank Plc which raised N41.213 billion; Flour Mills of Nigeria Plc raised N29.8 billion; Nova Merchant Bank raised N10 billion; Emzor Pharmaceuticals raised N13.7 billion; while Mecure Industries accessed the market for N3 billion.

     

     

     

    Others are CardinalStone Financing SPV Plc which raised N5 billion; C& I Leasing Plc (N10 billion); CERPAC (N15 billion), and Coronation Merchant Bank, N30 billion.

     

    Analysts, market operators react

     

    Reacting, analysts and Vice Chairman, Highcap Securities Limited, David Adonri said: “Both externally and internally, government has taken and is still taking more debt. This is increasing the risk of sovereign default and economic nightmares.

     

    “The hard currency earning capacity of Nigeria may also not be sufficient, now and in near future, to enable government service mounting foreign debt.”

     

    Lamenting the crowding out effect of government borrowing, Adonri said: “Internally, the borrowing has now reached the alarming point of crowding out the productive real sector.

     

    This poses grave danger to the capacity of the real sector to create wealth and generate productive employment. In every capitalist economy like ours, government has primary obligation through policies and actions to prevent any crowding out effect and to ensure larger capital formation by the private, productive real sector.

     

    “Excessive borrowing by this government at the expense of the private sector which is the engine room of the economy, brings to question the soundness of their economic strategy.”

     

    On debt servicing, he said: “The careless use of debt as a financing tool is fraught with calamitous dangers. Even more disheartening is when the debts are principally used to finance consumption or to unwisely finance few secondary infrastructure (roads and rail).

     

    “These will neither enhance the productive momentum of Nigeria’s light industries nor make the economy self-reliant. The disorderly growth of the economy this administration is pursuing can only mislead the country into an abyss if public borrowing is not curtailed to lower cost of funds so that production will be competitive.”

     

    “Nigerian government is reckless in its financial management. Their expenditure is far beyond revenues and safe debt level.

     

    “If they do not retrace their steps by instituting prudent financial management and also promote development of primary infrastructure ie, engineering infrastructure (technical education, metallurgical industry, electric power industry, chemical industry and modern energy industry), through private sector initiative, the only outcome will be continuation of economic wailings” he noted.

     

    Analyst and Head of Research and Investment at Fidelity Securities Limited, FSL, Victor Chiazor, said: “The Federal Government will continue to lead in terms of raising debt capital given the interest rate environment in the country.

     

    “Private sector borrowing does not thrive under high interest rate environment as such borrowings most times become toxic for their business. The interest rate environment needs to be low for the private sector to be encouraged to raise debt capital.

     

    “This expansionary measure will also improve economic activities as the economy will benefit from higher level of business activities as against when businesses are unable to raise required capital to grow their businesses because of the fear of being unable to meet debt obligations.”

     

    In his own comment, analysts and Managing Director, APT Securities & Fund Limited, Mallam Garba Kurfi said:

     

    “The market is big enough to accommodate both. Don’t forget PFAs manage over N13 trillion which are ready to invest. I still believe the state governments are free to visit the market or World Bank for funds, especially for development.

     

    “Kaduna State has done same and look at the development going on. Lagos State has visited the market for a state bond.

     

    The economy is feeling the pressure as the Gross Domestic Product, GDP half-year rise to five per cent. Without borrowing the economy will not recover fast.“

     

    Reacting as well, analysts and Chief Operating Officer, InvestData Consulting Limited, Ambrose Omorodion said: “From my own view, the market is to service the government and private sector, government crowding out private sector due to their huge and continued borrowing locally and internationally is not good but borrowing at a low rate is opportunity for the private sector to approach the market for funds but many are not taking advantage of this.

     

    If the government lowers its borrowing rates to manage the high cost of servicing debt, funds will flow to equity space in search of better returns, especially as these companies’ earnings are becoming stronger to support share price and payout at the end of the day.”

     

     

     

     

     

     

    Source: www.vanguardngr.com