By Sam Eyoboka, Olayinka Latona & David Oso PRELATE of Methodist Church Nigeria, His Eminence, Ola Makinde, yesterday, joined issues with Nobel Laureate, Prof. Wole Soyinka, describing the latter’s criticism of the Anti-Gay Bill passed by the Senate as unfortunate and regrettable. In a statement by the church’s Media and Public Relations Officer, Rev. Oladapo Daramola, the Prelate said the comments credited to the Ogun State-born professor was an attempt to psychologically bully the lawmakers into taking an unpopular decision and to give approval to an unreligious and non-cultural act. Makinde said such attempt would be sternly resisted by those who believed in sanity and the sanctity of marriage as established by God. He said: “When I read the statements credited to Prof. Soyinka, I was taken aback. His comment is an affront on our socio-cultural and religious values which I find highly unfortunate. “When people look up to us as role models in the society, we must see it as a public trust which must be guarded jealously. I have had times to agree with him (Soyinka) but at this point I completely disagree with him. “I urge members of the National Assembly not to be dissuaded by this kind of comments and insults hauled on them by Prof. Soyinka; rather they should base their actions on the clamour by majority of Nigerians which is overwhelmingly against same sex marriage. “He should apologise to the legislators for telling them to go back to school. Let me ask, is Prof. Soyinka or any of the advocates a product of same sex marriage? I wonder if the conventional marriage had not been upheld as passed down by our fathers, how many of those who are proponents of this ‘evil’ agenda will be in this world today. “The question we should equally ask people like Prof. Soyinka is how many countries in the world have legally recognised same sex marriage? Only 10. “Even the same American government that is castigating the Nigerian government has not accepted this nationally. Just like Mexico, it operates in some jurisdictions in America.”
BY TONY EDIKE ENUGU—Governor Sullivan Chime of Enugu State has slammed a N2.7 billion libel suit against the publication of a story, alleging that the younger sister of his wife had delivered a baby for him. The governor in suit filed at the High Court Registry Enugu is asking for a declaration that by printing and publication of the article,the defendant was liable to the plaintiff for libel. He is also seeking general damages in the sum of N1 billion and another N1 billion as exemplary/aggravated damages for libel. In addition, the governor is also asking for an order compelling the defendant to retract the publication and tender an apology, “which retraction and apology shall be published in the same manner and given the same prominence as the publication of the libel”, as well as in three national daily newspapers with wide circulation in Nigeria. He is also demanding the sum of N7.5 million as cost of the action. The plaintiff in his statement of claim, averred that the words used in the story were intended to refer to “and indeed referred to and were understood to refer to him”. He added that a substantial number of readers of the publication who read the offensive publication remembered the content, while a number of his friends, associates and family members told him that they were shocked and scandalized by the contents of the publication. The governor further stated that the defendant knew or ought to have known that the publication was baseless and false and that it was recklessly and maliciously made as a deliberate and calculated act to disparage him as the defendant, contrary to acceptable standards in the practice of journalism, did not make any attempt to either ascertain the truth of the story contained in the publication “nor did it seek to obtain the plaintiff’s side of the story before rushing to publish same”. The statement further read: “The false, malicious and libelous statements published by the defendant have assassinated the plaintiff’s character and caused him emotional injury and trauma, which injury and trauma still persist at present in view of the non-interaction of the said defamatory statements by the defendant.” Confirming the action, a close aide of the governor said while he (governor) had the highest regards for the media, he was committed to ensuring that not only should any false publication aimed at unjustly bringing him to public ridicule go unpunished, but also that the journalism profession was generally practiced within established ethics and standards.
*Removal ‘ll be injurious to Nigerians — Labour BY OKEY NDIRIBE, DANIEL IDONOR & VICTOR AHIUMA-YOUNG ABUJA – The meeting between the nation’s labour movement and President Goodluck Jonathan over the Government’s proposed removal of fuel subsidy ended in a deadlock yesterday in Abuja, as labour maintained that the removal will be injurious to the citizens and the country. The Federal Government delegation at the meeting led by President Goodluck Jonathan had claimed that the actual cost of petrol supply is N139 per litre and admitted that all Nigerians benefit from fuel subsidy but claimed that the rich benefit more. He also claimed that the current N65 per litre price is so cheap that it encourages smuggling of PMS across the country’s borders. According to a statement jointly issued by the Acting General Secretary of Nigeria Labour Congress (NLC), Comrade Owei Lakemfa and General Secretary of the Trade Union Congress (TUC), Comrade John Kolawole, the Federal Government delegation also presented a document entitled Subsidy Reinvestment and Empowerment Programme (SURE) which listed projects that would be executed with savings realized from removal of fuel subsidy. Amongst the projects listed were the construction or completion of eight major roads and two bridges, provision of healthcare for three million pregnant women, six railway projects, youth employment, provision of mass transit, 19 irrigation projects, as well as rural and urban water supply. The meeting was addressed by President Jonathan, Vice President Namadi Sambo, Finance Minister Dr. Ngozi Okonjo-Iweala who doubles as the Coordinating Minister for the Economy, and Petroleum Minister, Mrs. Dieziani Allison-Madueke. However, the labour movement was not convinced with the explanation given by the Government over its planned removal of fuel subsidy. According to the statement, the Labour Movement noted that out of the projected N1.134 trillion to be saved from the subsidy removal, the Local Government allocation is N202.23 billion, States N411.03 billion and the Federal Government N478.49 billion and concluded that “even if the Federal Government alone were to spend the entire N1.134 trillion, it cannot execute even a fifth of the projects it had listed. It noted that the Presidency’s presentation was simply a repetition of the presentations made by the Babangida and Abacha regimes and the Obasanjo administration, and that none of those promises were kept.”
The Labour Movement also insisted that “if non oil producing nations could refine petroleum products, a big oil producing country like Nigeria has no excuse to be import-dependent”. Labour said Government has basic responsibilities to the populace and not make externally driven prescriptions like the IMF did on SAP under the Babangida regime and that its opposition to fuel subsidy removal is driven by its belief that the people must be considered first in all Government policies. It pointed out that none of the presentations by the Presidency contained facts on the impact of oil subsidy removal on the populace particularly the informal economy where most Nigerians earn a living. Labour further pointed out that some of the statistics presented by the Minister of Finance were joggled to reach false conclusions. President Jonathan in rounding up the session explained that the idea of inviting Labour was not to make it take a decision either in favour or against fuel subsidy removal but to present the government’s position and encourage mutually beneficial discussions. He invited Labour to present its counter statistics and analysis of the Government documents for discussions on a future date which was acceptable to Labour. The Labour Movement also complained about the Federal Government’s tendency to breach agreements citing the non-implementation of the agreement on 2011 Minimum Wage as an example. According to the statement: “While government elaborated on how the savings from subsidy removal will be spent on social infrastructure, Labour responded to say that government has shown consistently that it cannot be trusted considering how agreements and promises have been reneged upon in recent years. “Specifically, labour complained that the Federal Government despite signing an agreement with it and issuing an enabling circular that the N18,000 minimum Wage will be implemented for Federal Public Servants from August 2011, implementation was yet to commence. It concluded that failure or refusal of Government to implement agreements reached is one of the reasons Nigerians do not fully trust government. “President Jonathan in his response said he was shocked to find out two weeks ago that the new wage had not been implemented by the Federal Government. He blamed it on bureaucracy and that he was not informed about any difficulties in paying the new wage. He said he had since directed his ministers and officials to commence immediate payment of the new wage. “In conclusion, the NLC and TUC expect that the Presidency will not remove fuel subsidy until it concludes the consultations with all stakeholders including Labour. Also, Labour is of the firm opinion that given the high level of insecurity in the country, the hardship Nigerians are facing and deepening poverty the removal of fuel subsidy will be injurious to the citizens and the country. Jonathan woos PDP Meanwhile, President Jonathan yesterday met with the caucus of the Peoples Democratic Party (PDP) to brief them on the planned removal of the petroleum subsidy, beginning from the first quarter of 2012. Earlier on Tuesday, the Federal Government committee on the subsidy met at the Presidential Villa, with Vice President Namadi Sambo presiding and the issue of the modalities for managing the entire subsidy were extensively discussed. The president’s meeting with the PDP stalwarts which took place at the Banquet Hall of the Presidential Villa, Abuja, it was gathered, offered the president the opportunity to brief the party leaders the details of the planned removal of the subsidy and the safety nets the government plans to put in place to ameliorate the harsh effect of the removal. Ngozi Okonjo-Iweala, Coordinating Minister of the Economy and Minister of Finance with her economic team were on hand to explain the nitty gritty of the subsidy issue to the party leaders that included acting PDP chairman, the VP, Senate President David Mark; Speaker of the House of Representatives Aminu Tambulwa; their deputies, principal officers of the national assembly, Secretary to the Government of the Federation, ministers, as well as other key political leaders. A source at the meeting told our correspondents that the finance minister took time to explain the implications of government’s continuous retention of the petrol subsidy. The meeting it was learnt was also used to appeal to the party leaders to prevail on their elected officers at the national assembly to support the president’s subsidy removal initiatives. Inside sources said that the meeting discussed extensively on how to prevail on the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and members of the civil society in the country that are determined to frustrate government’s move to enforce the subsidy removal. FG yet to fix take-off date for subsidy removal—Maku THE Federal Government however said yesterday it was yet to fix a definite take-off date for the implementation of the removal of petroleum subsidy. Briefing State House correspondents, after the last Federal Executive Council, FEC, meeting for 2011, at the Presidential Villa, Abuja, the Minister of Information, Mr Labaran Maku, who was joined by Minister of State for Finance, Alhaji Yerima Ngama, said the government was still engaging different groups in dialogue for proper understanding of the subsidy issue. He said: “No take-off date has been announced. The truth of the matter is our country is in a very difficult economic situation to continue to run Nigeria with one third of the budget to subsidise one product which is absolutely a path to a greater difficulty for the economy. We have continued to talk about this because every sector we opened up has produced results”. According to Maku “people who are emotionally talking about it, are not actually addressing what we are saying. Let’s take the media, before now it was only NTA, until government deregulated broadcasting in the country. Before you could not set up a private radio station in this country or a television station, when government deregulated what do we have today? We have private television stations that are now competing with NTA and FRCN. If government decided to control broadcasting in the country all of you would have been out of job. “I know we all feel emotional about subsidy. If you look at the movement of economy all over the world, unless we don’t want to develop this country and move forward, in broadcasting we have seen results. So also is the case in cement production, banking, aviation, and telecommunication,” the minister stated. The minister argued that the increasing nation’s domestic debt put at over N500bn has made the removal of petroleum subsidy inevitable
Following the Tuesday robbery incident at the Okene branches of of Guaranty Trust Bank, United Bank for Africa and Intercontinental Bank, commercial banks in the area have adjusted their time of operation from 9:30 a.m to 1.00 p.m. A notice pasted at the entrance and inside the banking hall of GTBank attributed the adjustment to the Tuesday robbery incident and said that the new operating hours would be in place until further directive from security agencies. Our correspondent observed that tight security measures had been introduced at UBA, Intercontinental and other banks in the city as customers were seen being subjected to a thorough screening before being allowed in. Meanwhile, the Police in Lokoja on Wednesday said that they are on the trail of members of a robbery gang that robbed the branches of G.T. Bank, UBA and Intercontinental Bank in Okene on Tuesday. The Kogi Police command spokesman, Mr Ajayi Okasanmi, who confirmed the incidence to the News Agency of Nigeria (NAN), said that detectives had been detailed to fish out the suspects, assuring that the fleeing robbers would soon be arrested. Okasanmi disclosed that the police had yet to make any arrest but working seriously on clues that might lead to the early arrest of the suspects, as the suspects were unable to cart away money from any of the the banks. He assured the residents that adequate security arrangements had been made for their safety before, during and after the yuletide period, as there was no reason for anybody to live in fear. Okasanmi said that armed policemen had been deployed to all the sensitive points in Lokoja and other major towns in the state while security in bank premises had also been beefed up.
Governor Godswill Akpabio is set to unlock the maritime potential of Akwa Ibom State to accelerate the country’s economic development. As part of the plans, the Akwa Ibom State Government will construct a railroad linking Uyo with Port Harcourt. Speaking at the Nigerian Ports Consultative Council Maritime (NPCC) Summit in Uyo, Akpabio said it was important to link all states, economic zones and mining areas with railways for easy movement of goods and people. He added that it was essential to update the railway system in the country and go for faster and more modern trains. Akpabio listed the maritime potential of the state to include Ibaka Seaport, with one of the longest coastlines in the world and one of the deepest water depths in the country and rich in shrimps, lobsters and other crustaceans. “The Ibaka Seaport would not require perennial dredging because it has a depth of 13-15 metres. It also has the added advantage of proximity and centrality to deep offshore operations and the West Africa Region Joint Development Zone including Sao Tome, Equatorial Guinea, Angola and Gabon. "Added to this is the security and peaceful nature of the community and the availability of ample undeveloped land,’’ the Governor said. He informed the Council of the state government's intention to build an Industrial City, to be known as Ibom Industrial City, in the area the seaport is located. According to him, “The Ibom Industrial City would be an industrial mix of oil and gas-based support services, dock yard and watercraft repair facilities, fertiliser plant, oil refinery, gas-to-liquid projects, petrochemical industries, power plant and the Ibaka Seaport. "It promises to be a self-sustaining industrial city with schools, hospitals, shopping malls, hotels, among others.” He expressed hope that when fully operational, the industrial city would employ 100,000 people, increase the export base of the nation, strengthen the country’s position on the oil and gas map of the world and open the state as one the gateways to the world in the Gulf of Guinea. Akpabio, who hinted that the state government has issued a Certificate of Occupancy for more than 5580 Sq. metres of land to the Nigerian Ports Authority (NPA), commended President Goodluck Jonathan for the Federal Government’s acceptance to develop the seaport. The Minister of Transport, Idris Umar, who was represented by the Managing Director of Nigerian Port Authority (NPA), Omar Suleiman, thanked Akpabio for taking the responsibility of projecting the potential of the state outside the petroleum resources, saying that the infrastructural facilities in the state would assist in the take-off of the Ibaka Deep Seaport. Earlier, the Chairman of the Nigerian Ports Consultative Council, Otunba Kunle Folarin lauded the Akwa Ibom State Governor for taking the initiative to host the meeting. Folarin also pledged to assist the growth of the maritime sector of the state.
BY KENNETH EHIGIATOR LAGOS – The United States Agency for International Development, USAID, and other multi-national collaborators have pledged $82 million towards the fight against scourge of malaria in the country. U.S. Ambassador to Nigeria, Mr. Terrence McCulley, who said this at the launch of Malaria Action Projects for States, MAPS, added that his government was committed to partnering with African countries to build capacity in stamping out malaria. He said: “Under the U S-funded President’s Malaria initiative,PMI, there are plans to work with partners to reduce by half the burden of malaria to 70 per cent of the at-risk populations in sub- Saharan African (approximately 450 million residents), thereby eliminating malaria as a major public concern and promoting development throughout Africa.” MAPS is a USAID- funded integrated malaria project that enjoys PMI support. The MAPS project, which spans five years beginning from 2010 to 2015, will run in six states – Zamfara, Benue, Nasarawa, Oyo, Ebonyi and Cross Rivers. Minister of State for Health, Dr. Muhammed Pate, said Nigeria loses about N132 billion annually to manage malaria illness among its population, leading to depletion of labour force through diseases caused by species of mosquitoes. The minister, who was represented by his Special Assistant, Dr. Labaran Shinkafi, said associated losses include huge man-hour by the nation’s labour force.
SEOUL (AFP) – North Korean leader Kim Jong-Il has died aged 69 of a heart attack, state media announced Monday, plunging the nuclear-armed, famine-ridden and deeply isolated nation into a second dynastic succession. North Korea urged people to rally behind Kim’s youngest son Jong-Un, describing him as “great successor” to the leader who presided over the deaths of hundreds of thousands from hunger but still built an atomic arms arsenal.
South Korea put its military on emergency alert but urged its people to stay calm, and swiftly closed ranks with its close ally the United States. Analysts said there would likely be little turbulence in the North –at least for now. The leader “passed away from a great mental and physical strain” at 8:30 am on Saturday (2330 GMT Friday), while travelling by train on one of his field trips, the official Korean Central News Agency (KCNA) said. It urged people to support Jong-Un, who is in his late 20s and was last year made a four-star general and given top ruling party posts despite having had no public profile. “All party members, military men and the public should faithfully follow the leadership of comrade Kim Jong-Un and protect and further strengthen the unified front of the party, military and the public,” a weeping female announcer, clad in black, said on television. KCNA said Kim died of a “severe myocardial infarction along with a heart attack”. He suffered a stroke in August 2008 which triggered an acceleration in the succession plans. Video footage from China Central Television showed people sobbing on the streets of Pyongyang. “How can I express all the sorrow… I can’t say any more,” a soldier said. Kim’s funeral will be held on December 28 in Pyongyang but no foreign delegations will be invited, KCNA said. National mourning was declared from December 17 to 29. “We must hold high the flag of songun (military-first) policy, strengthen military power a hundred times and firmly defend our socialist system and achievement of revolution,” it said. At the North Korean embassy in Beijing, the capital of its main ally China, the national flag was flying at half mast. China offered its “deep condolences”. North Korea’s propaganda machine has rolled into action to build up the same personality cult for Jong-Un that surrounded his father and late grandfather Kim Il-Sung, the founder and “eternal leader” of North Korea who died in 1994. “The North’s top guys have already sorted out everything and the regime seems to be stable under the new leadership,” said Paik Hak-Soon of Seoul’s Sejong Institute. “I don’t expect any major turbulence or power struggle within the regime in the foreseeable future. “The Kim Jong-Un era has already started.” Analysts stressed that North Korea was entering an uncertain period, although its senior figures were likely to stick closely together for now. “The North Korean elite has a vested interest in maintaining the system and will assess Jong-Un’s ability to protect its interests,” said Bruce Klingner, a Northeast Asia expert at Washington’s Heritage Foundation. South Korea summoned a meeting of the National Security Council and President Lee Myung-Bak called an emergency cabinet meeting. The Joint Chiefs of Staff said it had increased monitoring along the border along with US forces in the country but no unusual activity had been observed. North and South Korea have remained technically at war since their three-year conflict ended only in an armistice in 1953. The United States stations 28,500 troops in the South. Lee had a phone conversation with US President Barack Obama about two hours after Kim’s death was announced at noon (0300 GMT), officials said. “The president reaffirmed the United States’ strong commitment to the stability of the Korean peninsula and the security of our close ally, the Republic of Korea,” the White House said in a statement. Japan, which has no diplomatic relations with North Korea, offered its condolences over the death but also called an emergency security meeting. The news shocked South Koreans and some expressed fears of renewed conflict. “I’m worried there will be a war. I thought it wasn’t true at first,” said student Song Bo-Na, 22. KCNA, quoting a statement from the national funeral committee headed by Jong-Un, said Kim Jong-Il’s body would lie in state in Kumsusan palace where his father’s embalmed body is on display. It said mourners would be allowed to visit from December 20 to 27. Following the funeral, another event to mourn the leader would be held on December 29. Mourning shots are to be fired and three minutes of silence would be observed. All trains and ships will sound their horns. Kim took over after his father and founding president Kim Il-Sung died in 1994, coming to power with a reputation as a playboy with a taste for the finer things in life. But in the mid- to late-1990s he presided over a famine which killed hundreds of thousands of his people. Severe food shortages continue and the UN children’s fund estimates one-third of children are stunted by malnutrition. Kim still found the resources to continue a nuclear weapons programme which culminated in tests in October 2006 and May 2009. The country is believed to have a plutonium stockpile big enough for six to eight weapons. For several months there have been diplomatic efforts to restart six-nation nuclear disarmament talks which the North abandoned in April 2009.
But to return to the cost of fuel, may I inform you that in Iran today petrol sells for an equivalent of N58.40, N30.66 in Kuwait, N32.12 in Qatar, N17.52 in Saudi Arabia, N54.02 in the United Arab Emirate and N15.95 in Libya. And yet our leaders lie to us daily that the N65 we pay is the lowest in the world. And again, I will repeat the words of George Elliot: “What do we live for if it is not to make life less difficult for others?”
An audit report of the activities of NNPC which recently surfaced on the internet painted the corporation as a bazaar where contracts for the importation of products are routinely awarded without regard for approved guidelines and procedures. “We observed that contracts for the importation of petroleum products were awarded to companies and suppliers not listed in the approved pre-qualification list used for the fourth quarter 2008 importation,” it says. The auditors report that among other forms of misdemeanour at NNPC were poor accounting and shoddy record keeping. The auditors also indict the corporation for “leaving its own storage facilities unused and then proceeding to incur additional cost from leasing of third party storage facilities.” The DPK tanks with storage capacity of 18,000 cubic metres at the PPMC depots within the Mosimi area had not been used for three years, even though they are in good condition. The cost of leasing third party facilities is passed on to the government and entered as a subsidy in the books. We know the owners of these storage facilities. They are the people in the boardrooms of NNPC, some elements in the corridor of power and their friends and girl friends. At his inauguration barely seven months ago, President Jonathan assured Nigerians thus: “I know your pains, because I have been there. Look beyond the hardship you have endured, see a new beginning, a new direction, a new spirit.” And now I ask, Is this the new direction, the new spirit, he enjoined? Here is a man who during his campaigns spoke openly of his humble beginnings. He even made a song of his poor boyhood: “In my early days in school, I had no shoes, no school bags. I carried my books in my hands but never despaired, no car to take me to school, but I never despaired. There were days I had only one meal, but I never despaired. I walked miles and crossed rivers to school every day”. I have come to the opinion that the President’s words were nothing but empty sloganeering intended for electoral purposes. For hear him strike the populist note again: “I am mindful that I represent the shared aspiration of all our people to forge a united Nigeria: a land of justice, opportunity and plenty. Confident that a people that are truly committed to a noble ideal cannot be denied the realization of their vision, I assure you that this dream of Nigeria that is so deeply felt by millions will indeed come to reality”. In the light of his determination to heap even more unbearable suffering on the people, the President’s sentiments ring hollow. How is it that a President who only yesterday regaled the country with tales of a humble childhood marked by poverty can so suddenly turn around to pursue policies sure to worsen the already dire poverty of millions of his fellow citizens? The question history will certainly ask him before long is why implement a policy guaranteed to further impoverish the people? Herman Melville, author of the classic American novel, Moby-Dick, said that equality brings “democratic dignity”. The obverse is that inequality breeds human indignity. It is my view that inequality, together with corruption which partly causes and aggravates it, constitutes the twin bane of Nigeria and inform the pessimism of the people. The gap between the rich and the poor is so large now that it is alarming, and this is due mostly to the irresponsibility of government. The people justifiably blame government for their frustrations and pains. Countless promises to improve their lives have been made and wantonly broken. Consequently, government in Nigeria is seen as legitimised fraud sustained by deceit and manipulation, so that even when it speaks the truth the citizenry take it with a pinch of salt. It is a tragedy, but can we blame the people? They have every reason to be suspicious of the “good” intentions of government. The strongest justification for the removal of the so-called oil subsidy is that the funds accrued from the action will be channelled towards infrastructural development. Of course, we have heard this story before. Not once, not twice; not even thrice! What development did previous “oil subsidy removals” bring to the long suffering masses? None whatsoever! I know that no amount of “sweet talk” by President Jonathan and his praise-singers can mitigate the actual suffering of the people or dispel the fears of keen observers of the parlous state of the economy. But in periods of economic disaster, when the needs and welfare of the vast majority were threatened, how did responsible governments in other parts of the world respond? I read as a student about the Marshal Aid Plan which was designed to save Western Europe immediately after the Second World War. During the great depression, a responsive government headed by President Franklin Roosevelt came up with the New Deal. Ditto for Harry Truman who devised the Fair Deal to mitigate the hardship and challenges that assailed the American people in his time. Responsible leaders strive to build a society where all can be happy. Unfortunately for us, the vast majority of Nigerians have had to grapple with pains gratuitously inflicted on them by their own government. Both the weak and strong can live happily where government is determined to ensure their welfare. Such a society is possible but requires vision, prudence and the courage to build it to the applause and admiration of all. As a young secondary school student in the 70s, I used to read monthly journals from Communist China. In page after page of those journals, I saw uniformed Chinese men and women in rice farms balancing two baskets on their shoulders with sticks. China was then a nation of peasants and mostly poor people. I recently returned from a two-week trip to China and could not believe what I saw. Is it the advances in road construction or the efficiency of their transportation system and the skyscrapers of housing projects that dot almost every available space? Virtually every block has a manufacturing concern. They have just built a fast train that can travel at 400 kilometres per hour. That means that you can make the trip from Lagos to Abuja on this train in less than two hours. It also means that you can live in Ado-Ekiti and work in Lagos; it would only take you one hour to commute daily. There is nothing under the sun that is not manufactured today in a China that was a peasant economy some 40 years ago. Proverbs 29, verse 18, says, “Where there is no vision, the people perish”. The trouble with our country today is that we have leaders who have no vision. That is why our nation has everything and paradoxically lacks everything. I am of the opinion that if the government presses ahead with the planned removal of so-called subsidy, then the action would be contrary to justice, good conscience and sound policy. I believe that the action will only result in greater misery, in the further impoverishment of the people. I call on civil society groups, the Nigerian Labour Congress and its allies to position themselves to resist this thoughtless action. I will vote against it on the floor of the National Assembly and equally march against it with civil society groups if the need arises. We all know that poverty is on the ascendancy in Nigeria. This is unacceptable and calls for action. The vast majority of Nigerians live in indescribable squalor. This is the time for us all to engage in direct citizen action, in civil protests. As a Senator who is daily assailed by requests from my constituents, I know that family incomes are the best measure of our living standard. It is a painful realization for me that there is very little that I can do to salvage the hardship of my constituents but what I will never do is to fail to register my opposition to the removal of the so-called oil subsidy, knowing that it is a catalyst for sustained suffering and social inequality. The evidence shows that Nigerians are increasingly frustrated with the failure of government to relieve their suffering. They are perplexed that they remain the perennial scapegoats for government’s successive failure to do what is necessary. They see that it is they who bear the brunt of the years of the corruption and greed of those who occupy high office in collaboration with their contractor cronies. How a government designs or handles policies which have the potential for serious repercussions for the majority, which is usually those at the bottom of the social ladder, speaks volumes for its intentions. Millions of Nigerians cannot afford good education. Neither can they afford good meals or decent accommodation. The masses of the poor are for the most part ill-clad and denied opportunities of escape from poverty due to one harsh economic policy or the other. Yet, Nigerians are not lazy. On the contrary, they are hard-working, dogged and selfless but what is missing are leaders of vision to aggregate their energy and put them to work for the greater good of the nation. This is the tragedy of the Nigerian nation and it is the duty of every citizen to speak against those who seek to perpetuate this unacceptable status quo. I see so many Nigerians who live on incomes so meagre that I wonder how they survive, how they manage to stay alive. Duty and love of my country will compel me to vote against any attempt to further batter the body and soul of the nation. I will vote against the removal of the so-called oil subsidy without batting an eyelid. I will do so in the firm belief that in so doing, I shall be striking a blow against the conscienceless and irresponsible ruling elite. And I shall take it as special obligation beyond the ordinary to lobby my colleagues to vote against it. We must never aid any attempt to further brutalise and punish our people for the negligence of government and the greed of a few. And yet, even though the prospects do not look good, we must not despair because of the irresponsibility and malfeasance that current prevail; rather we should renew our resolve to find a lasting solution to the failure of patriotic ideas, the shocking lack of love of country and concern for the welfare of the people, which has come to define governance in Nigeria. We all know that government is supposed to pursue objectives that would better the conditions of the citizens and not to make their lives unbearable. But I should like to say that a responsible government, in other words a government that is compassionate and that responds to the needs of the people, is possible in Nigeria. Permit me to end this speech then by quoting the thoughtful words of J. F. Kennedy who said: “A society that cannot help the many, who are poor, cannot save the few that are rich”. The Arab spring has validated that assertion just like the evolving Occupy campaigns in the United States. In Europe, we have seen the fall of governments in Greece and Italy and the implications for all irresponsible governments is clear. The people can no longer continue to bear the burden of hardship by subsidizing the rich. Yes, ultimately, it is the poor who subsidise the rich. Distinguished colleagues and friends, ladies and gentlemen, thank you once again for providing me with this platform to share my thoughts on an urgent national issue with you. I also thank you for your rapt attention. In closing, I commend to you the lesson of a song by Chief Ishola Adepoju, that great traditional musician who lived and died in this town: Ayegbe O Ayegbe Ayegbe laiye O e Use kiwo bamu oju o Mo sayagbe sonu Use kiwo bamu oju o Mu ke keji re Aiye mo ju nukan se o Ayegbe. Thank you and God bless.
SECURITY took the highest share of the N4.749tn budget estimates presented to the National Assembly on Tuesday by President Goodluck Jonathan. Jonathan classified security under “critical sectors” and proposed to spend N921.91bn to secure the country next year.
The bane of Nigeria’s economic growth, the power sector, gets N161.42bn; Works gets N180.8bn; Education (excluding Universal Basic Education Commission, Petroleum Technology Development Trust Fund & Education Trust Fund), N400.15bn; Health, N282.77bn; and Agriculture and Rural Development, N78.98 billion.
Others are Water Resources, N39bn; Petroleum Resources, N59.66bn; Aviation, N49.23bn; Transport, N54.83bn; Lands & Housing N26.49bn; Science and Technology, N30.84bn; Niger Delta, N59.72bn; Federal Capital Territory Administration, N45.57bn and Communications Technology, N18.31bn.
The Federal Government has, however, increased the levies and tariffs for the importation of wheat and brown rice to encourage the domestic production of the commodities as well as the utilisation of cassava for domestic use.
In the same vein, the government made all machinery imported for agricultural development and power generation duty free. Jonathan said the budget was based on the Federal Government’s aggregate revenue projection of N3.644trn within the fiscal year 2012, even though the total federally collectible revenue was put at N9.406trn.
The revenue profile as presented by Jonathan for 2012 will operate at a deficit of N1.105tn.
“The aggregate expenditure comprises N398bn for Statutory Transfers; N560bn for Debt Service underscoring the real need to address the rising domestic debt profile; and N2.472trn for Recurrent (Non-Debt) Expenditure. Capital expenditure has an allocation of N1.32tn, representing a 15 per cent increase over the amount approved in the 2011 budget. The emphasis is on the completion of critical infrastructure projects,” he said.
Jonathan also noted that the fiscal deficit was estimated at about 2.77 per cent of GDP in the 2012 budget, compared to 2.96 per cent in 2011, saying it was within the threshold stipulated in the Fiscal Responsibility Act, 2007.
According to the President, the budget is based on assumptions of daily crude oil production level of 2.48 million barrels, up from 2.3mbpd for 2011. He also put the oil benchmark at US$70/barrel, noting that the figure was a cautious revision from the US$75 per barrel approved in the 2011 amended budget.
The budget, he said, is also based on an exchange rate of N155 to US1$, a projected GDP growth rate of 7.2 per cent and a projected inflation rate of 9.5 per cent.
Jonathan said, “Based on the above assumptions, the gross federally collectible revenue is projected at N9.406tn, of which the total revenue available for the Federal Government’s Budget is forecast at N3.644tn, representing an increase of 9 per cent over the estimate for 2011.
“Non-oil revenue is projected to grow significantly in 2012 as recent efforts to reform revenue collecting agencies and the implementation of initiatives to further develop non-oil sectors are expected to yield results.”
Jonathan said the aggregate expenditure of N4.749tn for 2012 was a “modest increase” of 6 per cent over the N4.484trn appropriated for 2011.
“I am pleased to note, however, that the declining share of capital is being reversed so it will account for about 28 per cent of total expenditure in 2012 compared to 26 per cent in 2011. We intend to continue on this path so that by 2015, it will have risen to almost 33 per cent.
“This will also have a salutary effect on our domestic debt profile, which has risen significantly in recent years. We are determined to rein in domestic borrowing, and through this, ensure that our debt is at a sustainable level,” he said.
He also focused on the administration’s commitment to curtail recurrent expenditure, having adopted the policy of fiscal consolidation as evident from the Medium-Term Fiscal Framework.
He said the share of recurrent expenditure in the 2012 Budget proposal was 72 per cent down from the 74.4 per cent in 2011, adding that the government intended to continue on this downward trend up to 2015.
In the same vein, the President said the government was streamlining agencies with overlapping mandates as a way to realign public expenditure.
On the development of agriculture, Jonathan said fiscal measures had been introduced to support the sector, noting that the duty on machinery and certain specified equipment for the sector would, effective January 31, 2012, attract zero duty even as there are plans to put up supportive fiscal policies for the rice and wheat sectors to stimulate domestic production.
Jonathan said, “Government is also introducing policies to encourage the substitution of high quality cassava flour for wheat flour in bread-baking. Bakeries will have 18 months in which to make the transition, and will enjoy a corporate tax incentive of 12 per cent rebate if they attain 40 per cent blending. With effect from March 31st, 2012, importation of cassava flour will be prohibited so as to further support this programme.
“All equipment for processing of high quality cassava flour and composite flour blending will enjoy a duty free regime as incentive to bakers for composite flour utilization. Consultations with the sector to ensure a smooth transition are on-going.
“It is common wisdom that the best way we can grow our economy and create jobs for our people is for us to patronize Nigerian-made goods. This is why we are introducing enabling policies to drive this process. In this regard, we are introducing fiscal policy measures that will encourage the purchase and utilisation of locally produced commodities.
“From July 1, 2012, wheat flour will attract a levy of 65 per cent to bring the effective duty to 100 per cent, while wheat grain will attract a 15 per cent levy which will bring the effective duty to 20 per cent.
“Similarly, there will be a levy of 25 per cent on brown rice to bring it to 30 per cent. In addition, to encourage domestic rice production, a levy of 40 per cent will be placed on imported polished rice leading to an effective duty rate of 50 per cent.
“Effective December 31st, 2012, all rice millers should move towards domestic production and milling of rice, as the levy of 50 per cent will be further raised to 100 per cent. Let me add here that no waivers or concessions will be entertained for rice and wheat importation.”
On power, the President said the government had commenced the implementation of the power road map which aims to create a robust power sector through the privatisation of the generation and distribution of power as well as create an enabling environment for investment.
“Institutional arrangements have been made for a Bulk Trader company to intermediate between power producers and distributors in a market setting, thereby giving Independent Power Producers the confidence to invest in generation capacity.
“Government, in collaboration with our development partners has created a credit risk management initiated to provide partial risk guarantees to give comfort to gas producers in respect of payment. Similarly, effective January 31st, 2012, equipment and machinery in the power sector will attract zero duty,” he added.
Jonathan said the non-oil sector had continued to be the main driver of growth with increased crop production, growth in wholesale and retail trade and increased financial sector activities backed by the banking sector reforms.
He said contributions by the oil sector continued to improve as average daily oil production rose to 2.45 million barrels per day in the second quarter of 2011 compared to 2.35 million barrels per day in the corresponding period in 2010.
He said he had established a committee chaired by the Coordinating Minister for the Economy and Minister of Finance with a mandate to remove the bottlenecks at the ports and another committee made up of private sector users of the ports to monitor implementation.
“We also intend to work hard to improve the infrastructure at the ports. Other impediments such as those arising from bureaucratic and costly paperwork will also be removed,” he said.
Jonathan also said that the new fiscal policy was aimed at creating jobs and laying a solid foundation for sustainable economic growth which would deliver the dividends of democracy to the people.
He further noted that the Youth Enterprise with Innovation in Nigeria programme recently launched in Abuja would lead to the creation of 100,000 jobs through support to young entrepreneurs.
At a hearing yesterday, the Senate announced the names of those benefiting from oil subsidies
The names of companies that shared N1.4 trillion petroleum subsidy funds were made public Friday with Wale Tinubu’s Oando and Sayyu Dantata’s MRS Oil topping the list of beneficiaries. The Senate's joint committee probing the management of petroleum subsidy funds disclosed at an investigative hearing that over 100 companies including construction companies participated in the sharing of N1.426 trillion between January and August 2011, a figure that contradicts that of the Petroleum Product Pricing Regulatory Agency, which it put at N1.348 trillion.
Making the names of the companies public, Chairman of the committee, Senator Magnus Abe complained that some of the companies contained in the list, were construction companies that have nothing to do with oil. He further observed that the companies were too many and put the credibility of their participatory process in question. Abe's also observed that since the public hearing started the PPPRA quickly shut down its website where the comprehensive list of the cartel was contained in a manner that was suspicious. Abe did not name the registered construction companies that benefited from the racket. However, the alleged N450 billion kerosene subsidies owed the Nigerian National Petroleum Corporation (NNPC) by the federal government was debunked by the Petroleum Products Pricing Regulatory Agency (PPPRA) which told the lawmakers that the claims were not in their books. Meanwhile, the executive secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Reginald Elijah disclosed that between 2006 and September 2011, a whopping N3.655 trillion was expended on fuel subsidies. He however differed from the figures – N1.426 trillion submitted by the Nigerian National Petroleum Corporation (NNPC) as subsidies on the products as at August 2011, arguing that the actual figure was N1.348 trillion. The panel also discovered a good number of the marketers did not meet the conditions for pre-qualifications to benefit from the subsidies adding that they are most times in the habit of making false claims; “leading to drain in the nation’s oil and gas industry”. According to the panel chairman, prospective marketers were required to own tank farms (petrol deports) of not less than 5000 metric tonnes, and should be registered with the Corporate Affairs Commission (CAC) as oil companies. “Yet it was discovered that while only 11 marketers own storage facilities, the rest were “throughput” (sharing depots with filling stations) and some were registered construction companies,” he said. Nonetheless, the Group Managing Director of the NNPC, Austin Oniwon told the panel that whereas a locally refined barrel of petrol costs $5, with a subsidy of N11.85 per barrel, the independent marketers were being subsidized with N77 per litre of N138.71, amounting to N12, 243 per barrel. While adjourning sitting to Monday December 12, Senator Abe directed Oniwon to produce total amounts expended on turn around maintenance from 1999 to date, total dividends accruing to NNPC from the Joint Venture Companies, names of accused marketers, investigations conducted, results and subsequent punishments to defaulters at the next sitting. The full list, and their individual haul, as read out by Senator Abe, is as follows: 1. Oando Nigerian Plc. – N228.506 billion 2. MRS –N224.818 billion 3. Pinnacle Construction-N300 billion 4. Enak Oil & Gas –N19.684 billion 5. CONOIl – N37.960 billion 6. Bovas & Co. Nig. Ltd. – N5.685 billion, 7. Obat N85 billion and AP; N104.5billion. 8. Folawiyo Oil - N113.3 billion 9. IPMAN Investment Limited- N10.9billion 10. ACON - N24.1billion 11. Atio Oil-N64.4billion 12. AMP- N11.4billion 13. Honeywell-N12.2billion 14. Emac Oil- N19.2billion 15. D.Jones Oil-N14.8billion; 16. Capital Oil - N22.4 billion 17. AZ Oil- N18.613billion 18. Eterna oil- N5.57 billion 19. Dozil oil- N3.375 billion 20. Fort oil-N8.582 billion. 21. Integrated Oil and Gas- N30.777 billion
