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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 and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Government

Atiku Blasts Tinubu, Says President’s Haphazard Approach to Fuel Subsidy Caused Current Economic Crisis

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atiku-abubakar

Former Vice President Atiku Abubakar has slammed President Bola Tinubu’s handling of the fuel subsidy crisis, referring to him as “TPain.”

Atiku attributed the current economic challenges facing Nigeria to what he described as the “haphazard and disingenuous approach” of the Tinubu administration to fuel subsidy management.

In his statement posted on X on Thursday, Atiku bemoaned the escalating inflation rate, stating that it is severely impacting the lives of Nigerians.

He lamented that despite the growing hardships, Tinubu appears unfazed by the plight of the citizens.

According to him, the haphazard and disingenuous approach of the current administration to fuel subsidy management has been the reason the nation is witnessing current economic crisis.

He said as things stand, there will be no let up in the escalating inflation rate, which is drowning the material well-being of Nigerian populace.

The former VP said it is even more worrying that Tinubu, whom he referred as “T-pain”, is undisturbed by the hardship in the country.

The nickname ‘TPain’ for Tinubu emerged as a play on the first letter of his name and the name of American rapper and producer T-Pain, sparked by frustrations over the rising cost of living under his administration.

The earliest mention of the term on social media dates back to April 2024.

However, it gained significant traction around September 16, after a user on X used it while discussing the President’s visit to Maiduguri to console flood victims.

The term has gained traction on platforms like X and Instagram.

 

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Government

LG Autonomy: Senators Disagree as Governors Allegedly Mandate Chairmen to Move Allocations Into State Accounts

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Senate President Akpabio

Some members of the Nigerian Senate have expressed displeasure over alleged moves by state governors to thwart the feasibility for the implementation of the Financial Autonomy granted to the 774 Local Government Councils across the country by the Supreme Court in August this year.

There was hot debate amid confusion on Wednesday in the Senate soon after the sixth item which has to do with Petitions was handled when Senator Tony Nwoye from Labour Party in Anambra North came up with a Point of Order which was sustained by the President of the Senate, Senator Godswill Akpabio.

Nwoye who came through orders 41 and 51 of the Senate Standing Rules, moved a motion on alleged moves by some state governments to circumvent the implementation of the judgement on LG Autonomy through counter laws from their respective State House of Assembly.

As he was still speaking to his colleagues at the hallowed Chamber, Nwoye ran into confusion over the matter, just as he told the Senate that nine other Senators had co-sponsored the motion.

He specifically alleged that some State Governors are already using their House of Assembly to enact laws that would mandate respective local government councils in their states to remit monies into State/Local Government Joint Accounts ruled against by the Supreme Court.

Immediately he rounded off his presentation containing six prayers for enforcement of the judgement and seconded by Senator Osita Izunaso, APC Imo West Senator Adamu Aliero, PDP Kebbi Central raised a constitutional point of order for stoppage of debate on the motion.

Adamu Aliero who cited section 287 of the 1999 Constitution that makes Supreme Court Judgement enforceable across the country, urged the Senate not to overflog the issue.

Aliero said the Supreme court judgement is enforceable across the country, adding that there is no need for the parliament to be debating anything that has to do with it.

Agreeing with Senator Aliero, Akpabio raised another constitutional issue as he called on the attention of Senators to section 162 sub-section 6 of the 1999 constitution.

The section according to Akpabio, created the State/Local Government Joint Account, which has to be amended in paving the way for full implementation of the Supreme Court Judgement.

Akpabio said what the Senate needs to do is to carry out required amendments of certain provisions of the constitution as far as local governments autonomy is concerned so as to ensure that local councils have their separate accounts.

But before taking a final decision on the motion, the sponsor, Senator Nwoye hurriedly raised order 42 of the Senate Standing rules for personal explanation on the motion the same time, Senator Abdulrahman Summaila Kawu, (NNPP Kano South) raised a similar point of order.

The simultaneous points of Order brought confusion into the session with many senators rushing to the Senate President for a personal consultation, which eventually, made the Senate go to an emergency closed-door session at exactly 12: 46. pm.

Recall that the Supreme Court had in early August this year, barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 Local Government Areas, LGAs, in the country.

The apex court ruled that it was illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.

The Supreme Court had maintained that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.

In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.

Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.

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Government

I Knelt Down, Begged Wike for Peace to Reign in Rivers – Fubara Reveals Amid Tension 

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Siminalayi Fubara

Amid the growing political tension and upheaval in Rivers State, Governor Sim Fubara, has revealed that he has done everything possible for him to prevent the current panicking situation in the state.

According to him, he practically knelt down for his estranged political godfather, Nyesom Wike and begged him to let go of their feud, but the former governor rebuffed his pleas.

While speaking on a television political programme, Fubara went into memory lane on how he had strived to please the current Minister of the Federal Capital Territory Abuja, saying he (Fubara) kept all understanding with Wike.

The governor said he has been showing understanding in order not to expose the state to violence but added that the minister thwarted his good intentions for the state, hence the violence that has enveloped Rivers.

According to him, “There is nothing I have not done on this earth for peace to reign. I can tell you the number of times I have knelt to beg that let’s allow this issue to go. I have done everything.”

He therefore urged Wike, his predecessor, to allow peace to reign in the state by letting go of Rivers State.

Fubara stated that the current troubling situation in the riverine state has gotten to a point where Wike needs to let go and allow peace in the state.

Investors King had reported that Rivers was thrown into crisis on Monday, a day after the swearing-in of 22 winners of the controversial Saturday local government elections in the state.

The swearing-in of the chairmen from other political parties other than the ruling Peoples Democratic Party, had enraged Wike’s camp as hoodlums began attacking local government council secretariats, burning office equipment, files, chairs and tables, and equipment.

Disturbed by the ugly development, President Bola Tinubu had directed the Inspector General of Police, Kayode Egbetokun, to secure Rivers State’s local government secretariats following the arsons.

Meanwhile, Olabode George, former deputy national chairman of the PDP, urged Wike to allow Fubara to work.

In a statement, George said asked Wike to leave Fubara alone and allow him to fastrack dividends of democracy for his people.

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