Jonathan: ECOWAS, Highly Marginalised in Global Trade

President Goodluck Jonathan

President Goodluck Jonathan Thursday said that members of the Economic Community of West African States (ECOWAS) were being  marginalised  in the flow of global trade and investment. The President made this disclosure in his address at the 2nd ECOWAS Investment Forum which commenced in Lagos Thursday . He therefore appealed  for partnership between member states and external partners to ensure that the observed imbalance is corrected.

Jonathan whose speech was presented by Vice President, Namadi Sambo, emphasised that the West African region had shown a lot of promises given the various economic and political reforms that most countries in the region had embarked upon. “In spite of the current global economic and financial markets volatility, West Africa has shown a lot of promises given the various economic and political reforms that a number of our member states had embarked upon. The forum is put in place to demonstrate that the region currently offers tremendous opportunities for foreign investors.

“I am glad to note that   various initiatives of ECOWAS Commission indicate that these objectives of regional integration is being achieved in phases from our ECOWAS Trade Liberalisation Scheme (ETLS), through the Common External Tariff (CET) that has been accepted by all the 15 member states to the current harmonisation of the member states investment laws under the common market. ‘’ With these giant strides, i see our region becoming an Economic Union sooner than expected, where the boundaries that had separated our interaction over the centuries past would become irrelevant,” Jonathan is also the Chairman of ECOWAS Commission added.

He also advised member states to open their financial markets and institutions to other member states within the region as well as to permit local market participants to invest abroad. He said further: “It is my belief that by creating confidence in financial co-operations among member states via regional payment system, regional stock exchange, regional credit data base and the information on investment climate indicators, the region is providing the basis for harmonised single economic space as well as steps towards the common currency aspiration of the community.

“However, more ambitious objectives related to regional  trade-related payment systems can be met only if member states collaborate in these various arrangements and initiatives of the commission towards deeper macroeconomic   convergence.”

2012 Budget: FEC Holds Emergency Session Today

Minister of Finance and Coordinating Minister of the National Economic Team, Dr. Ngozi Okonjo-Iweala

A special Federal Executive Council (FEC) meeting has been scheduled for today at 10am to consider the draft copy of 2012 budget in preparation for its transmission to the National Assembly by President Goodluck Jonathan, soon.

This is to give fillip to the pledge by the Minister of Finance and Coordinating Minister of the National Economic Team, Dr. Ngozi Okonjo-Iweala, that next year’s Appropriation Bill would be presented to the National Assembly earlier this year than in the past.

THISDAY gathered that the emergency meeting of the FEC is sequel to the scheduled trip of Jonathan to the United Nations General Assembly next week. It was learnt that the meeting was brought forward because the cabinet prefers that every member of the FEC was in attendance when such a crucial deliberation would hold.

To ensure that the meeting becomes a reality, the economic team met Thursday, in addition to several other meetings in the Villa, to ensure that the push for an economically and socially viable Nigeria was not a mirage at the end of the tenure of the administration. The meetings, THISDAY further gathered, was part fulfilment of Jonathan’s pledge to continue to provide conducive environment for investment.

This came on the heels of a reassurance by Jonathan that the present administration was prepared to encourage every investor that was ready to put his money into the production sector of the Nigerian economy. He said this when Bayelsa State Governor, Mr. Timipre Sylva, led officials of  Hyundai Heavy Industries of South Korea, to the Presidential Villa. The firm is to build a $7-billion shipyard that is expected to provide employment for over 2,000 youths in the state.

Jonathan told the President and Chief Executive Officer of the company, Mr. Jai-Seong Lee, that his administration believed that foreign investment flow into the country would bolster Nigeria’s efforts at generating more employment for its “youthful” population.

He assured the visitors that he would do all within his powers to support the project. “Hyundai has a long-standing relationship with Nigeria. You have always played a key role in our economy, especially in our oil industry. We appreciate what you have done and we are elated by your latest investment in a shipyard project at Brass,” Jonathan said.

He assured the Hyundai chief that relevant government ministries and agencies would be on ground to give the firm all necessary support to ensure that the shipyard was completed on schedule. Sylva said the company, which investment was a major breakthrough for his administration, would have a turnover of over $20 billion.

He said when completed, the shipyard would build and service ships as well as provide floating vessels for storage and processing of petroleum products - services that are currently being brought into the country from foreign shipyards. “You will agree with me that Mr. President did well by signing the local content law and since then it's been working. This is the first example of how that law can really empower Nigerians.

“Hyundai heavy industries is going to invest about $7 billion and we are going to create initially about 2,000 jobs and for a state like Bayelsa that has youths problem, you know what that means to us and that is why I am very excited and I thought I should bring them to Mr. President to give them words of encouragement which he has done.

“They are going to invest in a shipyard; that means most of the top sites in the oil companies would be built in Bayelsa State. They are going to invest 100 per cent which is the beauty of it. What we are doing is provide the enabling environment. We have acquired the land and we have given it to them and we are building a road to where the industry is to be located. For us, the gain is in the jobs they are going to create and the taxes they will be paying to us when they commence operations,” he explained.

He said construction would start next year, while the first phase would be completed between 2013 and 2014.

Minimum Wage Crisis: ENSG Sues Labour

NLC President, Comrade Abdulwahed Omar

The Enugu State government has dragged labour bodies before the National Industrial Court sitting in Abuja seeking among other things, a declaration that the current industrial action embarked by workers in the state at the instance of Congress is unlawful.

The government in the suit dated 12th September, 2011 in which the NLC and six others including the Chairman and Secretaries of the state chapter of the body and the Trade Union Congress(TUC) are mentioned as defendants, is also asking the Court to declare that the National Minimum Wage (Amendment) Act 2011 merely required an employer to pay every worker a wage that is not less than N18,000 per month and did not apply, to the determination of wages payable generally to other workers or employees in such organization.

The suit furthers seeks a declaration that the 2nd to 7th defendants (all labour leaders in Enugu) cannot unlawfully take part in any strike or engaging in any conduct in contemplation or furtherance of any strike unless and until after they have fulfilled all conditions prescribed by law for calling such actions.

Consequent on the above, it is seeking an order of perpetual injunction restraining the defendants and they represent, jointly or severally, from embarking on, or continuing in furtherance of, any strike/industrial in violation of the provisions of section 31 (6) (a) of the Trade (Amendment) Act or an order of perpetual injunction restraining from embarking on such action until they have fulfilled all conditions prescribed by the relevant laws.

Meanwhile the Court Wednesday granted an application by the government seeking leave to serve the defendants the originating processes including the Motion on Notice for Interlocutory Injunction by publishing in a named National Daily.

The Court presided over by Hon, Justice M.N Esowe also granted the claimant’s application to abridge the period within which the
Respondents are given to respond from 7 to 3 days. The matter has been adjourned to the 21st of September, 2011 for hearing of  the motion on notice.

Customs Agents Seek Ports Concession Review

National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has slammed proponents of single window for the clearance of goods in the nation’s seaports, airports and international borders.

The group, which is made up of seasoned licensed customs agents across the country, flayed the promoters of the project as it was a waste of resources and duplication of the single window platform already put in place by the management of Webb Fontaine Limited and used by Nigeria Customs Service (NCS) for the clearance of goods in the nation’s seaports.

In a position paper it presented to the Chairman of the House’s 12-man Ad-Hoc Committee on Concession Agreement, Hon. Leo Okuweh Ogor, NCMDLCA argued that the process that led to the award of the contract to the management of Single Window Systems and Technology Limited (SWSTL) did not follow due process and transparency, even as it called for the review of the port reforms that led to the hand over of the nation’s seaports to private investors.

Founder of NCMDLCA, Mr. Lucky Amiwero, told participants at the on-going public hearing on concession agreement at the National Assembly that there was no need for the Federal Government to enter into a fresh contract for a facility that was already in place.

Giving an insight into how the present process is presently implemented, Amiwero said: “The question to be asked is why the duplication, the special feature of the new platform, the special features/hardware that will be deployed to take over the present platform and implication in terms of process and procedure to import trading activities due to customised process”.

The Economic Commission for Europe (ECA), United Nations Centre for Trade4 Facilitation and Electronic Business (UN/CEFACT) defines single window as a facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once.

It is a model aimed at eliminating the multiplicity of the processes involved in cargo clearance, which has made Nigeria one of the most expensive countries to do business in the world. SWSTL management had two years ago proposed to the Federal Government its ability to put in place a single window model for the clearance of goods imported into the country.

The proposal, which was accepted by the Federal Executive Council (FEC), mandated the Federal Ministry of Finance to work out the modalities for its implementation.
Amiwero, who is also the Managing Director of Eyis Resources Ltd, contended that going by what is presently in use in the nation’s seaports, airports and international borders, there was no need to bring in a fresh facility for the clearance of cargo in the country.

He also stressed the need to review the various port concession agreements in Nigeria in order to control inflation and harness maritime potential for the good of Nigerians, the government and genuine investors.
He made it clear to members of the Ad Hoc Committee on Concession Agreement that it was wrong to increase port charges arbitrarily.

He bemoaned the high cost of clearing consignments at the nation’s ports. He also condemned the arbitrary increases in port charges by the concessionaires whom he said might have misinformed or misled the government functionaries to achieve profiteering goals by enriching a privileged few Nigerians and foreigners at the expense of the vast majority of the Nigerian people.
Amiwero recalled the events of the pre-port concession era, saying that when the Bureau of Public Enterprises (BPE) advertised the concession of the port in 2003, no fewer than 37 issues were canvassed by the bureau to justify the concession.

According to him, the management of BPE said the port reform would improve efficiency of operations, reduce the cost of cargo clearance, facilitate further development of the nation’s transport infrastructure, eliminate congestion and facilitate the emergence of Nigeria as a hub for the West Africa sub-region.

He expressed regret that five years after the exercise was concluded, the objectives for which it was meant to achieve have not been attained. His words: “Five years after the ports were concession, these objectives, laudable as they appear, are far from being achieved, as cost of doing business at the ports has risen far higher than what used to be.”

Post-Election Violence: Judicial Panel Submits Report

Justice Mohammed Lawal Bello, chairman of the commission

The Judicial Commission of Enquiry set up by the Kaduna State Government to investigate the violence that trailed the April elections Tuesday submitted its report. The commission also said there would be lasting peace and stability in the state if its recommendations were implemented.
Submitting the report to Governor Patrick Yakowa at the Government House Kaduna, the chairman of the commission, Justice Mohammed Lawal Bello, also called on the state government to implement the reports and recommendations of past commissions of enquiry that were set up to investigate other crises in the state.
According to him, 90 per cent of the recommendations were from the memoranda submitted to the commission by the people of the state. He said the commission was optimistic, based on its findings, that majority of the people were in support of harmonious co-existence, irrespective of ethnic, religious or political affiliations.

“If the people are not willing to live peacefully, whatever the recommendations of the commission and however beautiful the plans of government, there is little or nothing that can be achieved” he added.

He disclosed that a total of 255 memoranda were received, and said the commission visited all the internally displaced persons (IDPs) camps, the emirates and chiefdoms, as well as Jaba, Jema’a, Zangon Kataf, Lere and Birnin Gwari local government areas to ascertain the facts on the ground.
While commending the commission for a job well done, Yakowa said his administration would study the recommendations with a view to implementing them to ensure security, peace and harmony in the state.

He decried the non-implementation of reports of previous commissions of Enquiry and assured the people that his administration would make a difference.

Deputy Speaker Picks Holes in Port Concessioning

Deputy Speaker of the House of Representatives, Hon. Emeka Ihedioha,

The Deputy Speaker of the House of Representatives, Hon. Emeka Ihedioha, has faulted   the concessioning of the nation’s seaports in 2006. Ihedioha spoke at the ‘All Mariners’ Summit’, which took place at the Administrative Staff College of Nigeria (ASCON), Topo, Badagry, and expressed regret that despite the fact that the House participated in a committed manner to the port reform processes to move the sector forward in line with the international best practice, the exercise was not fair and transparent. “Today however we have seen that the process was not all fair and transparent”, he said.

The legislator expressed regret that the Ports and Harbour Bill was sent to the National Assembly in August 2006 while the House was on recess, only for the members to discover that the ports had already been concessioned. “In addition, it was not a product of adequate consultation and so the content of the bill did not reflect proper industry expectations and concerns.

However, we engaged both the management of the Nigerian Ports Authority (NPA) and the Federal Ministry of Transport to address these concerns to enable the bill move forward. “But nothing was done till the first week of May 2007 when to our amazement, some provisions of the proposed law were ‘implemented ‘by ‘splitting’ NPA into two autonomous organisations”, he said.

Ihedioha, who was represented by Hon. Opeyemi Bamidele, stated that the House responded by passing a resolution declaring the exercise illegal and called for a reversal to the position of the law.

Noting that the Presidency implemented the resolution in September 2007, Ihedioha, who was the Chairman, House Committee on Marine Transport for four years (2003 to 2007), expressed regret neither NPA nor the Ministry of Transport has come up with an alternative legislation to the bill previously submitted.
“All we hear is that the bill has been floating between the Bureau for Public Enterprises (BPE), National Council for Privatisation (NCP) and the Presidency for four years while our ports are run on a concessioned arrangement, seemingly without an enabling law”, he said.

The Deputy Speaker however gave an assurance that he would ensure the smooth sail of the bill whenever it comes before the lower chamber of the National Assembly.
He also assured that the leadership of the House would take keen interest in and deal appropriately with the recommendations of the planned probe of the concession agreement between the Federal Ministry of Finance and Single Window Systems and Technology Limited.

On Cabotage, Ihedioha said while the Cabotage law came into being before he was appointed the chairman of the House Committee on Marine Transport, “we put in place the requisite legal instruments for its implementation, especially as regards the Cabotage Vessel Financing Fund (CVFF).
“Information available to me is that about $100 million has so far accrued in that account. There are questions as to why the funds are lying in the banks and have not been made available to operators for whom it was set up in the first place”, he added.

The lawmaker also noted that in an effort to boost development of personnel and infrastructure in the sector, the committee included obligatory provision in the NIMASA Act 2007 that guaranteed the putting aside of at least 2 per cent of their revenue for the Maritime Fund.

He explained that the idea was to take funds generated within the sector for the dedicated development of indigenous capacity and infrastructure in the sector. “Once again, information available to me is that about $100 million, including the rolled over funds of the defunct Ship Acquisition and Ship Building Fund (SASBF), has accrued into that account. There are also questions as to why the funds are still in banks and have not been made available to operators for whose benefit it was set up in the first place”, he said.

Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr. Patrick Akpobolokemi, in a keynote address at the summit, noted that the challenge of building capacity for the maritime sector had since been identified as critical to the sustainable development of the sector. Akpobolokemi said it was necessary for Nigeria and the sector to focus on the development of human capacity as the only viable route to harnessing the unlimited potentials in the maritime sector.

The NIMASA helmsman disclosed that the management of the agency has concluded plans to kick start the process of establishing additional maritime academies through the Public Private Partnership (PPP) framework, which would eventually evolve into full fledged maritime component of the oil and gas industry.

FEC Awards N33bn Contracts for Power, Erosion, ICT in Schools

Minister for ICT, Mrs. Omobola Johnson

The Federal Executive Council (FEC) Wednesday approved contracts for erosion control in the South-east, provision of Information Technology in 387 schools across the country, completion of hydro dam in Taraba and remediation of sludge pits at Kaduna refinery and petrochemical company dumpsites at the sum of N33.13 billion.

The criteria for the choice of benefiting schools to be provided with computers and laptops were not disclosed. However, the Minister for ICT, Mrs. Omobola Johnson, said 100 classmate personal computers for students and 21 laptops for teaching, two printers and one server, broadband internet and 5kva solar power equipment would be provided for the schools.

She said that the equipment for teaching ICT across the country would be installed in nine schools in each of the 36 states of the federation, three in the federal capital territory and 10 additional schools in each geo-political zone. The equipment would also cover refurbishment and securing of equipment storage room, provision of wireless mesh and charging platform for each of the schools.

“Council approved the request in order to create a generation of Nigerians with a broad base of theoretical and practical knowledge of ICT on which they can leverage when they step into the labour market, in the cost of N16, 666 million and a total cost of N6, 449 billion with a completion period of 36 weeks each.

Asked where the funding would come from for the ICT in schools projects, Johnson replied: “The funding is coming from the universal service provision fund which is a percentage of the revenue of the GSM telecoms company.

The Communication Act of the USPF which gets contributions from telecom companies and other businesses in that sector so that services can be extended to undeserved and un-served areas in Nigeria.”

Also among the approved power projects was the variation for the upgrading of the hydropower component of the construction of Kashimbila Gamovo multipurpose Dam which would serve the purpose of irrigation, power and potable drinking water for parts of Benue and Taraba States.

The project, however, did not include the hydro component which was supposed to generate 40 megawatts with an augmented budget of N17, 69 billion with 36 months as completion period which was part of government policy for optimising hydropower generation. Council also approved award of contracts for the control of erosion and landslides in parts of the South East for N5.4 billion in Nanka in Aguata local government area of Anambra state, Sakamor/ Nwangene flood and dredging works, Obinagu/ Akpulu/ Enugueze-Umunneobagu in Enugu and channelisation of Iyi Okwu and Iyi udele stream in Ebonyi State.

“Breakdown of the projects are Sakamor/Nwangene flood control and dredging works in Anambra state in the sum of N1.23billion with a completion period of 18months; Nanka recent landslide control works also in Anambra state in sum of N1.111billion with a completion period of 12months; Obinagu/Akpulu/Enugueze-Umunneobagu erosion control in Enugu state in the sum of N1.482billion with completion period of 15months; and the channelization of Iyi Okwu and Iyi Udele stream in Ebonyi state in the sum of N1.544billion, with a completion period of 14months,” Hajia Hadiza Mailafia, the Minister of Environment said.

Remediation contract for the sludge pit of the Kaduna refinery and Petroleum Company dumpsite and impacts negatively on the residents off the area who have said they were more concerned with the impact on the environment and safety than on compensation. The contract was awarded to Messrs Osprey Investments Group in the sum of N1, 811 billion.

Council also ratified the convention on the status of stateless persons which would give impetus to the United Nations Charter on the Universal Declaration of Human Rights so that everyone has a right to nationality.

“Every UN convention is relevant to all member states because in the first instance the idea is to ensure there is nobody in the world that does not have a state. And the convention enables the states to make possible under their laws the rules that will grant every person the right to statehood. And this is why you see in most state the make provision for citizens to naturalized, if for example you want to change your citizenship from Cameroonian to a Nigerian and you have lived in Nigeria for some years and the laws of the country has nothing against you, Nigeria should accord you the citizenship.

“If you are married to a non-Nigerian, the laws of Nigeria should not allow your spouse to be without a state, the law must allow your spouse access citizenship by registration.

All these process you see in our laws where every year we grant citizenship to those that have lived here and do businesses here is in conformity with this UN convention. It is relevant to us, it is relevant to all member of the UN and is relevant to the people world and Nigeria being a frontline African state that has contributed so much to the UN we feel it is not good for us to already have accented to this convention without ratifying it, it is just good for us”, Maku explained.