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MDAs Take Over Assets Sales From BPE

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  • MDAs Take Over Assets Sales From BPE

The Federal Government has sidelined the Bureau of Public Enterprises in the process of giving out key assets and infrastructure in several critical sectors of the economy, including aviation, petroleum and railways to private operators as concessions.

Investigation by our correspondent showed that a number of Ministries, Departments and Agencies of the government had sought and obtained approval from President Muhammadu Buhari to handle the concession of assets in their domain rather than channel the process through the government’s privatisation agency.

However, some of the assets slated for concession by the affected MDAs are already listed for commercialisation, sale or concession in the BPE Act. These include the airports, the Nigeria Railway Corporation and the Nigerian National Petroleum Corporation.

In the Ministry of Aviation, for instance, the Minister of State for Aviation, Senator Hadi Sirika, recently constituted the Project Steering Committee and Project Delivery Committee to handle the concession of some airports to private investors. The BPE is not represented in the committees.

Sirika is the chairman of the Project Steering Committee, which has the responsibility to provide the general direction and steer the course of public-private partnership project concessions in the aviation sector.

Inaugurating the committee, the minister said the driving force behind the Federal Government’s resolve to concede the airports was overriding national interest in ensuring the establishment and sustenance of world-class standards in both infrastructural development and service delivery.

Other members of the committee are the ministry’s permanent secretary; relevant chief executive officers; director-general of the Infrastructure Concession Regulatory Commission, director of planning in the Ministry of Transportation; representatives of the ministries of Justice, Budget and National Planning, and Finance, and the deputy director of the PPP unit in the ministry, who serves as the secretary.

The Project Delivery Committee, which has the ministry’s director of planning as chairman, is mandated to monitor and evaluate, as well as carry out impact assessment of PPPs/concessions to ascertain value for money on investment; make recommendations to the steering committee on matters of policy reappraisal, review or changes, as may be necessary.

The parent Ministry of Transportation, which is in charge of the railway transportation, has also been in negotiations for the concession of some rail lines.

Investigation by our correspondent showed that although the BPE was represented in the committee put together to handle the concession process, its proposal for competitive bidding was rejected.

It was learnt that the ministry preferred to negotiate with few identified companies rather than open a bidding process that would be “winding and long.”

The Federal Government had recently announced that General Electric would take over the management of the Abuja-Kano rail line under a concession plan between January and March 2017.

At the Ministry of Petroleum Resources, the NNPC, working in collaboration with the ministry, has also sought and received approval for the concession of the nation’s four refineries.

The spokesperson for the NNPC, Mr. Garba-Deen Mohammed, who confirmed this in a telephone interview with our correspondent, however, said there was no plan for the sale of the Nigeria LNG Limited, where the NNPC has majority shareholding.

Mohammed said what the corporation had received was an approval for the rehabilitation and upgrade of the refineries, which would be handled through concession.

According to the ministry, about $1.8bn is required for the rehabilitation of the four refineries.

Investigation by our correspondent also showed that the BPE’s proposal for part sale of the refineries was rejected.

It was gathered that the agency had proposed equity sale of 51 per cent if the government was interested in retaining interest in the refineries instead of sinking funds that were not available into rehabilitating them.

However, the NNPC spokesperson said the government would not spend money on the rehabilitation of the refineries, adding that while it would maintain ownership of the refineries, private operators would be invited to repair and upgrade them with their money, which they would be allowed to recover later.

Mohammed said although the corporation had received proposals towards this end, the process would start when it was advertised.

“We have received proposals. They are waiting for adverts. Once that is done, the refineries should be in good shape within a period of 12 months,” he explained.

Our correspondent also learnt that the failure of the government to constitute the National Council on Privatisation 17 months after it came to power emphasised the negligence of the privatisation agency.

The NCP supervises the BPE and there are decisions that the latter cannot take without the approval of council, which is usually chaired by the Vice President.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israel Gaza

Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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