₦airaland Forum

I think our environmental regulators are not serious at all in terms of getting result. If they want to enforce this kind of payment, they first have to get the public involve and allow the public to drive up the sentiment. Thats what the media and PR firms are for, engage their services. At the end of all the buzzing, it makes the legal proceedings go smoothly for the host country.

I doubt that? Check the pending global oil spill cases concerning all these MOC's. Its a neverending court cases. The $18 Billion Chevron, Ecuador case is still in court tomorrow. The $22 billion chevron, brazil lawsuit is still ongoing. The MOC's understand the game and they are ready to play, even if it lasts for another 100 years. MOC's will continue to spill products, host countries will continue to slap fines, cases get ramped up in the unending legal battles while attorneys of both sides makes shitload of money. At the end of the day, who benefits?

LONDON—Royal Dutch Shell RDSB.LN -0.04%PLC could face a record $5 billion fine from authorities in Nigeria for an oil spill off the coast of the West African country last year, an amount that dwarfs similar fines in the U.S. and Brazil.

Shell pushed back hard against the penalty, proposed by federal authorities seven months after some 40,000 barrels of oil leaked at Shell's Bonga offshore facility.

"We do not believe there is any basis in law for such a fine," said a Shell spokesman. "Neither do we believe that Shell Nigeria Exploration and Production Company has committed any infraction of Nigerian law to warrant such a fine."

The large penalty comes at a time of heightened concern over the safety of offshore oil production, following BP BP.LN +0.26%PLC's disastrous Deepwater Horizon explosion and oil spill in the Gulf of Mexico in 2010. Shell is currently facing intense scrutiny from U.S. authorities and environmental groups as it prepares to drill for oil offshore Alaska.

The fine is particularly severe in comparison to other recent incidents. Based on Shell's estimate of the 40,000 barrels of oil spilled in the Bonga leak, the fine equates to around $125,000 a barrel.

By comparison, BP could face a fine under the clean water act for the Deepwater Horizon spill of up to $1,100 a barrel if it isn't found guilty of gross negligence, or $4,300 a barrel if gross negligence is proved.

U.S. oil company Chevron Corp. CVX -0.33%could have to pay between $8,000 and $10,000 a barrel for its spill of 3,000 barrels of oil offshore Brazil, according to recent comments from that country's regulator.

The ultimate size of the fine will still have to be approved by a committee of Nigerian lawmakers, who Monday heard submissions from the National Oil Spill Detection and Response Agency, or NOSDRA, on what an appropriate penalty would be, according to local media reports. NOSDRA will have to justify to the House Committee on the Environment why Shell should pay such a large amount.

Nigerian lawmakers were told to consider imposing the fine Monday by Peter Idabor, head of NOSDRA, according to local media reports. Mr. Idabor defended the decision, saying the $5 billion penalty was consistent with similar fines in other oil-producing countries like Venezuela and Brazil, the Vanguard newspaper reported.

If lawmakers decide to endorse Mr. Idabor's recommendation, the fine will be the largest ever imposed on Shell. Even in Nigeria, where the firm has pumped commercial oil since the 1950s, Shell's biggest charge to date was a $40.5 million court-imposed fine for a series of spills in Ogoniland dating back to the 1970s.

Shell was forced to halt production from the 200,000 barrel-a-day Bonga field in December after a leak occurred during a routine tanker loading operation. The result was one of Nigeria's worst oil spills in more than a decade.

However, Shell claims that none of the crude reached land and that much of the leaked oil dispersed naturally in the water or evaporated. Some crude did wash up along the Western Niger Delta coastline, which Shell cleaned up, despite expressing doubts that it originated from Bonga.

"[Shell] responded to this incident with professionalism and acted with the consent of the necessary authorities at all times to prevent an environmental impact," the company spokesman said.

http://online.wsj.com/

The federal government owes the Nigeria National Petroleum Corp (NNPC) for improper, informal loans used to cover a range of expenses, from a presidential helicopter to maritime security, a report of a partial audit say.



The audit, prepared by an outside organisation given access to accounts of the NNPC as part of a government effort to improve transparency at the firm, raises doubts over its independence.

Africa's biggest oil producer and key supplier to the United States is pinning its future oil industry hopes on turning the debt-ridden NNPC into an independent profitable company emulating Brazil's Petrobras or Malaysia's Petronas.

NNPC has a budget agreed by parliament. Other revenue it collects from oil production is meant to be passed to the government accounts, but industry experts say powerful interests tap money before it is sent through official channels.

According to sources involved in the external audit, it will show outstanding debts owed to the oil company by a number of ministries and state agencies. The company paid for a $14 million presidential helicopter, and is owed $106 million by the state power firm and $124 million by a maritime security agency.

State governors are threatening to take the federal government to court over illegal tapping of oil revenues that should be shared with local government.

The finance ministry and NNPC declined to comment on the debts and the presidency and oil ministry did not respond to requests for reaction.

"We are aware of many of these debts, obviously it isn't an ideal situation," an NNPC source told Reuters on condition of anonymity.

State agencies in debt to NNPC should be funded through the budget, so such loans add to transparency concerns.

The NNPC needs its own funds to pay for joint ventures with foreign oil companies, some of which have lain dormant due to a lack of state investment.

"It does highlight the extent to which NNPC has been drawn into the more opaque areas of government - and will give ammunition to those critics who say it has operated at least partly as a slush fund for government," Antony Goldman, Nigeria oil expert at PM Consulting said.

"It points to the huge difficulties in making independent a corporation with such a complex web of assets and liabilities, at least some of which appear not to have been contracted solely on a commercial basis."

Numerous earlier reports and audits have concluded that corruption has been rife within NNPC. Last year, Transparency International and Revenue Watch ranked NNPC as one of the least transparent oil companies in the world.

A parliamentary report in May uncovered a $6.8 billion fraud involving a government gasoline import subsidy, which is partly run by NNPC.

That report said NNPC was accountable to no one. It said the company owed oil traders, including privately-held Trafigura , $3.5 billion in unpaid bills.

Nigeria risks its 2 million barrel per day oil production declining in the next few years if it fails to reduce political uncertainty, corruption and criminality.

A long-awaited Petroleum Industry Bill (PIB), due to go to parliament for debate within days, is supposed to spin off some assets and replace the NNPC with a new, independent and partially listed National Oil Company (NOC). A copy of the PIB seen by Reuters is thin on detail, however.

The draft PIB also states that the oil minister will oversee all institutions within the industry, raising question marks over how independent the NOC would be.

President Goodluck Jonathan replaced the managing director of the NNPC and three other senior directors last month in efforts to improve transparency and accountability.

And Nigerian Women are the most religious women in the ...

I don't know why this bill is not getting all the attention it deserves since 2009. Its a shame our law makers will rather debate how to share money than to debate how to raise patriotic and progressive future generation. This bill need to scale through the house, because I believe If we study our history well enough, we'll understand what makes it great. If we understand what makes it great, we'll learn to cherish it. If we cherish it, we'll want to preserve it. If we want to preserve it; we'll fight against injustice of any kind, religion speculation, boko harram, sectionalism, disintegration of any kind and for social development. I believe this bill have a chance to rewrite the history of this country.

He is a fellow of the Historical Society of Nigeria and a Reader in History at the Department of History and Strategic Studies, University of Lagos. With over 26 years experience in lecturing history, Godwin Onyekpe, in this interview with MOTUNRAYO ABODERIN says a generation without indepth knowledge of its history is a lifeless generation.

The Historical Society of Nigeria presented a bill to the National Assembly to make history compulsory in secondary schools. What’s the latest?

The bill was presented in the first place because the Historical Society of Nigeria was very much worried about the decline of History and we thought that if care was not taken, our children would lose the history of their country. We felt the fortunes of History were fast declining. Having interacted with the Ministry of Education and other government agencies, we were asked to send a bill to the National Assembly.

We prepared the bill that stated that History should be made compulsory in schools. This bill was sent to the National Assembly in 2009/2010 at the time the sixth National Assembly was in power. Since then, we haven’t got feedback from the National Assembly. However, I’m optimistic that the bill would be passed because it’s for the nation’s benefit.

The bill is for the purpose of getting official endorsement of History as a compulsory subject in the nation’s secondary schools. If History is not encouraged at the secondary level, they may not be able to study it at the university level. Many students at tertiary level lack background knowledge of History because they did not take it at secondary school level. But we are saying that pupils should be exposed to History early enough in the career development. The bill is to get official endorsement of the subject at the secondary level.

Why is HSN interested in making history compulsory in secondary schools?

A child may be very brilliant, but if the child lacks the historical knowledge of his nation, his analysis of issues will be superficial. Our history is being ignored. Children are now interested in knowing the history of western world rather than their own history. They are not interested in studying it as a subject. They prefer to study Government because the syllabus is not heavy and can be completed in two or three days.

However, HSN is saying that History should not be ignored. It plays a key role in nation-building. This is the time to build the interest of our children in history because they are the leaders of tomorrow. We all must understand our past and know the way problems were solved in the past. When you don’t know the history of something, how will you know the way to handle that thing? Nigeria will move forward when our leaders go back to our history.

Does Nigeria have leaders who are history-conscious?

No. It’s sad to say, but Nigeria lacks leaders who are history-conscious. And it would be impossible to produce a successful generation. The present is a product of the past. And the past is the foundation of today, and today is the foundation of tomorrow. There is always that inter-organic connection between the past, present and the future. Historical knowledge helps to cast life on the problems of the society.

The United States of America, the former USSR and the rest encountered problems which Nigeria is encountering. So, knowledge of their history and how they solved their problems would give us light on how to solve ours. You don’t operate in a vacuum. Every profession has a past. There must be something to fall back on. Nigeria needs documentation on how to find solutions to its contemporary problems. A society that is not historically conscious cannot have a sense of history. That society is bound to repeat the problems of the past.

What role can the government play in promoting history in schools?

The government could also assist by encouraging the development of historical centres where pupils can visit. It could also fund research and financially support the development of historical centres. Historical centres need to be established. Through their establishment, the society will be more conscious of its history. Pupils would also be interested in the subject, because they will have a picture of what they are being taught in class. We must provide the theoretical and practical aspects of history.

Why are pupils disinterested in History as a subject?

I believe they think when you study History, you would become a teacher. But this is not true. There are so many professions that are linked to History. One can become a diplomatic officer, a family historian, and the likes.

Also, historians have marketed themselves well. Until historians promote our profession, it would be looked down upon. During my time, we had to study History of West Africa from the earliest time to 1,800, history of empires and kingdoms, abolition of slave trade and colonial rule among others. It was very extensive. So the HSN had to review the syllabus to make it more interesting for pupils. For history, it’s not area covered that matters, rather it’s the understanding of the significance of history for example or the relationship between the past of Nigeria and today that matters. If it’s 10 topics that are taught, that’s fine. As long as pupils have a good grasp of the subject, the nation will be the better for it.

What other measures is HSN embarking upon to promote History in schools?

We plan to award prices to the best History pupil in our various geo-political zones. We also plan to take the award to the university level. Aside the awards, we have gone ahead to set up regional historical societies that would promote local community history. This also must be enforced. School pupils should know the history of Lagos and then the history of Nigeria. From micro studies we will progress to macro studies.

What happens if the bill is not passed?

Why won’t the bill be passed? It must. We are very optimistic and we have done what we can do. However, if the bill is passed, pupils would benefit a great deal. However, the bill was sent when the sixth National Assembly was in power, so change of power could have affected the bill, but we will monitor the progress of the bill.

What is your message to the National Assembly?

The HSN would want to appeal to the National Assembly to look into the bill. We have tried every possible means to make ourselves heard. It’s high time the nation realised that we cannot relegate our history to the background. A nation without knowledge of its history is a lifeless nation. If this bill is passed, the nation would benefit.

What you do is not as important as the reason behind it. Your masters program will not mean that much to you, if you don't have enough reasons for starting the program in the first place. Start with reasons why masters program will be a good long term fit for you or reasons why you should and how you can utilize your current degree.

Amen

To those of you who are thinking Vulcan monopoly down the line, what exactly are we getting all worked up for? This is a 180 kbpd. How much petrol, diesel, jet fuel, kerosene and others are going produced from this refinery? At the most, they'll probably produce 45 kbpd of petrol, 63kbpd distillates (inluding diesel, jetfuel and kerosene). This is assuming that the plant will be a very complex refinery which i doubt. What impact will these products/figures have on local demand and supply? Don't forget that all our current refineries have installed capacity 445 kbpd.

In summary, I think this is a good development. MOU is a good start, it doesn't really translate into a full functioning refinery. There are other dynamics that plays into building the refinery itself including getting actual funding, design timeline, securing crude oil and others. Plus this is a good FDI into the country assuming the plant eventually get built...and not that people are just trying to play with our collective intelligence.

I hope this is not a ploy to secure oil blocks...with the promise to build refineries and other infrastructure. Just like some companies are doing now.

Although the Constitution of the Federal Republic of Nigeria, 1999 (CFRN) was preceded by a nationwide debate organised by the Constitutional Debate Coordinating Committee (inaugurated on November 11, 1998), it has never been regarded as a genuine product of the people of Nigeria. This is mainly because the Military Government had a dominant influence on its contents, whereby it endorsed many practises of the military era which were more unitary than federalist. There have therefore been persistent calls for change.

In response to these persistent calls for amendment of the Constitution, the Presidency and the National Assembly have initiated several review exercises in the past in which Lagos State government always participated actively.
On Thursday, September 15, 2011, the National Assembly again inaugurated a Committee on Constitutional Review aiming for a holistic review of the CFRN and further amendment to its provisions. This is expected to be the first major amendment that will cover several significant subjects in the Constitution. However, this exercise does not aim at a general review of the Constitution. It seeks to proceed only on the following selected areas: (1) Devolution of powers; (2) Creation of states; (3) Geo-political zones; (4) Traditional rulers; (5) Local government; (6) Land Use Act, NYSC Act and Code of Conduct; (7) Fiscal federalism; ( Immunity clause; (9) Mayoral status for Abuja; and (10) Nigeria Police. My presentation, therefore, will be limited to these areas put up for consideration by the Senate.

Devolution of powers

The defining feature of federalism is the autonomy of each government that makes up the Federation. Our political experience and long era of military rule has, however, resulted in the Exclusive Legislative List being loaded excessively in favour of the Federal Government at the expense of the state governments. The effect is that whilst the states are precluded from performing several important constitutional responsibilities, the Federal Government is equally unable to function effectively as it holds legislative and executive powers on matters of local concern which over-stretch its administrative and supervisory abilities.

It is therefore the position of Lagos State that the principle of appropriateness (i.e., which order of government is more appropriate to deal with and effectively supervise a particular subject) should guide the sharing of powers between the federal and state governments. We therefore recommend that the items on the exclusive list be substantially reduced to reflect the principles of appropriateness and state autonomy.

In particular, state legislatures should have or share jurisdiction on subjects like police, criminal records, prisons, evidence, establishment of air and seaports, railways, electric power generation and distribution as well as the taxation of incomes, profits and capital gains.

Creation of more states

It is the position of the Lagos State government that the Nigerian federation does not at this time require the creation of additional states. This view takes into consideration the huge cost which the administrative machinery and personnel of the new state will entail. Most states are currently not sufficiently viable to justify further subdivisions.

Also, we want to draw attention to the largely untapped administrative potentials of the existing local government councils, which can easily be used to cater for local or sectional interests. Indeed, it may well be that the agitation for more inclusiveness in governance and for rapid development may be better addressed by the creation of more local governments than it can be done by the creation of more states.

Recognition of six geographical-political zones

The six geo-political zones represent an informal division of the Federal Republic of Nigeria along the lines of geography and ethnic sub-group. Though not recognised by the Constitution, the zones have become representative of a political configuration of sort. Thus, it is not uncommon to have political appointments and decisions recognising this loose arrangement. This has led to the clamour for the recognition of the zones in the CFRN.

However, we do not support the inclusion of the zones in the Constitution. Recognition of a body in a constitution presupposes that it will have a definite purpose or responsibility and its composition, leadership and administrative structure will have to be defined.

Since the geo-political zones are not intended to be regional governments, their inclusion in the Constitution may cause unnecessary confusion as to their status or significance. Section 14(3) is comprehensive enough to reflect the federal character of the country and the need to promote national unity.

Role for traditional rulers

Lagos State government recognises the institution of traditional rulership. However, traditional rulers do not derive their relevance and authority from the Constitution. Unlike the Federal Government and state governments which are created by the Constitution, and local governments which are created by laws made pursuant to the Constitution, the institution of Obaship predates constitutional governance in Nigeria. Their appointment, removal and terms of office are regulated by the traditional norms of the people which are peculiar to each town/village and cannot be uniformly regulated by the Constitution.

Also, it should be noted that the idea of federalism involves the surrender to a central authority of only those functions which are best regulated and discharged in common. It is therefore contrary to our federal intent to seek to unify diverse cultural traditional institutions in the Constitution. Subjects of local peculiarity must be kept with the sub-national entities. Each state should therefore be encouraged to use their relevant Obas and Chiefs Laws rather than make it a constitutional matter.

Local government

The Nigerian Constitution makes it compulsory that local government councils shall be the administrative organs of states. However, the duty to legislate the establishment of the councils as well as their structure, functions and finance is left to the State House of Assembly (s.7).

The Constitution also provides (schedule 4) that LGCs will participate in the socio-economic affairs of the state. Although local governments are guaranteed a share of the funds accruing to the Federation Account, their share is in fact required to be allocated to the relevant states for the benefit of the LGCs in accordance with the applicable state law (s.162(5). It is thus clear that while states are federating units of Nigeria (s.2), the LGCs are intended as administrative structures to assist the state governments in bringinggovernment closer to the people. In this context, any proposal to confer LGCs with autonomy, distribute funds directly to them, create a new legislative list and make them into federating units would be erroneous.

The use of number of LGCs in revenue allocation has also created an obvious imbalance to the disadvantage of some states. It is best to keep LGCs out of the Constitution and allow each state to create the number it considers appropriate for its local administration. It seems therefore that the proper thing to do is to leave the local governments out of the Constitution or vest the entire responsibility for them in the states and amend the Constitution accordingly by deleting or amending, as the case may be, all sections that introduce them into the Constitution such as 3(5), 7(1), 8, 167 and part of the First Schedule dealing with boundary descriptions.

Removal of certain enactments from the constitution

Currently, section 315(5) of CFRN incorporates certain enactments as part of the Constitution. These are the National Youth Service Corps Decree, the Public Complaints Commission Act, the National Security Agencies Act, and the Land Use Act. The section further provides that these enactments ‘shall not be altered or repealed except in accordance with the provisions of section 9(2) of the Constitution.’ This provision has served to freeze the affected enactments by making the process of their amendment the same as the one for amending the Constitution.

It is therefore the position of Lagos State government that the Land Use Act be separated from the Constitution and made applicable only to the FCT. Land has always been and should remain a residual matter for the State Houses of Assembly to legislate upon, hence the Land Use Act should become Land Use Law of the states. In this way, land legislation in Nigeria can be more flexible and reflective of changing practices and experiences through appropriate amendments by the state legislatures.
Also, the NYSC Act, though of significant national importance, does not merit special status above other Acts of National Assembly. However, National Youth Service should be made an exclusive legislative matter for the National Assembly to regulate.
As regards the Code of Conduct, we subscribe to the view that it should be retained in the Constitution as a minimum prescription applicable to all officials or public servants at all levels of government. Each state should, however, be free to impose higher standards on its officials through state laws or service regulations.

Fiscal federalism

Revenue allocation is central to the existence and functioning of both the Federal Government and federating states. The current revenue allocation formula by which the Federal Government takes as much as 52.68 percent of centrally-collected revenues in the Federation Account, leaving the states and local governments with 26.72 and 20.60 percent, respectively has created a glaring and unacceptable imbalance in the financial resources of the three tiers of government.

Having regard to the constitutional allocation of functions as it currently exists, the Lagos State government proposes the following for adoption as the new Revenue Allocation Formula for Nigeria: Federal Government - 35 percent; State Governments – 42 percent; Local Government Councils – 23 percent. However, if functions are moved from the Exclusive List to the Concurrent or if they are made residual, the formula should be further adjusted.

Also, if LGCs are expunged from the Constitution, the states will have to fund their councils with a proportion of their revenues as may be decided by the State House of Assembly.
In the event that local governments are removed from the Constitution as we propose, our government accepts the recommendation of the Femi Okunnu Committee and proposes a further amendment to the revenue allocation formula as follows: Federal Government – 25 percent; State Governments - 45 percent; Derivation - 25 percent; Intervention/Support Fund - 5 percent.

In addition, we take the view that derivation should not be limited to petroleum alone. It should be applicable to all resources and all revenues collected into the federal purse.
Further, the right of all Communities in the management and exploration of resources within their territories should be guaranteed by the Constitution.
Also, it is necessary to guarantee the integrity of the entire process of revenue allocation by appointing an Accountant General for the Federation to manage the Federation Account, as distinct and different from the Accountant General of the Federal Government. In fact, we think it is an anomaly for Federal Government officials to bear titles suggesting absolute nationwide jurisdiction when they are officials of the Federal Government only.

Nigerian Police

It is view of Lagos State government that the unification of the main security apparatus of the Federal Capital Territory as well as the 36 state governments and 768 local government councils has proved inefficient in a country of over 150 million persons who belong to various ethnic groups with distinctive population, language, landmass, religion and cultural attitudes. It is therefore the position of Lagos State government that the Constitution should confer power on a State House of Assembly to establish State Police with clear jurisdiction and well-articulated protocols for the regulation of its relationship with the federal force.

Judiciary

It is the position the state government that the appointment, remuneration and discipline of judges of the state High Court should be the exclusive responsibility of each state of the Federation. The functions now conferred on the National Judicial Council with respect to state High Court Judges should be part of the judicial powers of the states which ought to be carried out by the State Judicial Service Commission. We are also of the view that interlocutory appeals should terminate at the Court of Appeal, thereby reducing the time spent on litigation.

Furthermore, the scope of jurisdiction of the State High Court as provided in the 1979 Constitution should be restored. In other words, the State High Court should enjoy unlimited jurisdiction except for the jurisdiction conferred on the Federal High Court, which should be limited to Federal Government revenue, admiralty, intellectual property matter and criminal jurisdiction as may be conferred by an Act of the National Assembly.

In essence, the jurisdiction of the Federal High Court as provided in Section 230 of the 1979 Constitution should be restored. In the same vein, the jurisdiction of the National Industrial Court should be limited to matters of collective labour relations, collective bargaining and resolution of trade disputes.

Rotation of executive offices

It is the position of the Lagos State government that inclusion of provisions relating to rotation of executive offices in the Constitution is antithetical to the unity of the country, and its federal essence. Rotation of executive offices is not an antidote to the challenge of federal character unless the system of rotation will accommodate each of the over 250 ethnic groups and sub-groups in the country.

Gender and special group

Section 42 of the Constitution has already made comprehensive provisions for gender and special groups. If the essence of proposed inclusion of provisions relating to gender and special group is to ensure that discrimination is avoided, the solution should be for each state to give effect to section 42 of the Constitution through appropriate laws.

Immunity clause

It is the position of Lagos State that the immunity clause as provided in Section 308 of the 1999 Constitution should be retained in our constitution. The clause is more for the protection of the office, rather than the officeholder. It preserves the dignity and ensures the effectiveness of administration.

While it is regrettable that there may have been actions which are indicative of abuses of the privilege by some officeholders, the privilege of immunity is not for the benefit of the officeholder. It is for the benefit of the people he serves. The immunity attaches to his office, not his person, so that he will be unfettered in using that office to serve the people. The immunity is therefore appropriately limited to preventing him from being arrested or being summoned or compelled to appear in court.
If this were not the case, it is possible that the officeholder can be severely inhibited from carrying out his duties if arrest warrants or court summons are repeatedly issued and served on him.

Retention of the clause would prevent unfounded allegations of criminality against top public officials which, if allowed, would bring massive distractions. Even where the allegation that necessitates trial relates to corruption or other criminal offences, it is trite that time does not run against investigation and prosecution of offenders. What would have been achieved with the removal of the immunity clause could still be achieved at the expiration of the tenure of the serving officials.

Mayoral status for the Federal Capital Territory Administration

Lagos State is in support of the proposal to amend the Constitution to confer elective mayoral status on the Federal Capital Territory. This will give the administration a measure of autonomy and make the Mayor accountable to the people.

Special status for Lagos

Of course, there can be no better occasion to restate the case for fiscal support in the Constitution for Lagos State in her capacity as a former capital of the Federal Republic to continue to support the infrastructure that serves millions of people who choose Lagos as their home.

Being an excerpt of a position paper presented recently by the governor at a public hearing convened by the Lagos State House of Assembly on the National Assembly’s proposal to further amend the 1999 Constitution of the Federal Republic of Nigeria.

The Manufacturing Association of Nigeria (MAN) launched Thursday last week, in Lagos, its Blueprint for the Accelerated Development of the manufacturing Sector in Nigeria.

MAN recognises the fact that transforming the manufacturing sector into a dynamic and virile sector of the Nigerian economy is a central part of the strategy of the Vision 20:2020 which envisages a long term intensification of the country’s industrialisation process and a movement towards a knowledge-based economy. To make this realizable, MAN felt the need to articulate a blueprint for the fast development of manufacturing in Nigeria to complement the vision of government.

MAN has an ambitious plan. According to its projections, as revealed by Kola Jamodu, president of the Association at its 40th Annual General Meeting in question in Lagos, the manufacturing sector’s contribution to GDP, which currently stands at a little over 4 percent, could actually improve significantly to between 15 and 18 percent in the next five years, if the recommendations in the Blueprint are considered and implemented.

It is good news that the document is based on an integrated approach that addresses the important role of manufacturing, particularly small and medium Enterprises (SMEs), in the generation of substantial employment. If SMEs must generate employment, they must be in good shape to do so, that is they must be equipped with all the ingredients that will give them the muscle to perform.

SMEs in Nigeria have a problem. What is the problem? Basil A.N. Onugu of St Clements University gave the answer to this in a study titled ‘Small and Medium Enterprises in Nigeria: Problems and Prospects’ published in 2005.Th study was a dissertation submitted to St Clements University in partial fulfillment of the requirements for the award of the degree of PhD in Management.

This study was undertaken to find out if the SME sub-sector in Nigeria has performed its critical role of driving the country’s industrial transformation and development as it has done in other developed countries; and if not, why, and also to identify remedial measures. The study thus investigated the performance of the Small and Medium Enterprises sub-sector of the Nigerian economy, its problems and prospects and recommended measures to make the sub-sector virile and vibrant in order to play the crucial role it is expected to play.

A total of 300 SMEs were randomly selected from a cross section of a population of 1,500 SMEs spread among all the states of Nigeria including Abuja and covering virtually all forms (Sole Proprietorship, Partnership, Private and Public Limited Companies etc) and kinds (Services, Manufacturing, Processing, Oil & Gas, Educational etc) of business took part in the study. Eleven banks were also selected for the study. Participants were selected through a simple random sampling process. Two sets of questionnaires were constructed, one set for the SMEs and the other for the Banks and administered on the participants. The responses to the questionnaires were complemented with personal interviews of the key operators by the researcher.

The major findings of this study include the following:

SMEs have played and continue to play significant roles in the growth, development and industrialization of many economies the world over. In the case of Nigeria, SMEs have performed below expectation due to a combination of problems which ranges from attitude and habits of SMEs themselves through environmental related factors, instability of governments and frequent government policy changes and somersaults.

The top ten problem areas of SMEs in Nigeria in decreasing order of intensity include: management, access to finance, infrastructure, government policy inconsistencies and bureaucracy, environmental factors, multiple taxes and levies, access to modern technology, unfair competition, marketing problems and non-availability of raw materials locally. Thus managerial problems represent the greatest problem facing SMEs in Nigeria while non-availability of raw materials locally is the least problem.

The potentials and opportunities for SMEs in Nigeria to rebound and play the crucial role of engine of growth, development and industrialization, wealth creation, poverty reduction and employment creation are enormous. The realization of this requires a paradigm shift from paying lip service to a practical radical approach and focus on this all-important sector of the economy by the government realistically addressing the identified problems.

While SMEs themselves need to change their attitude and habits relating to entrepreneurship development, the governments (Local, State and Federal) need to involve the SMEs in policy formulation and execution for maximum effect. There is also the dire need to introduce entrepreneurial studies in our universities in addition to emphasizing science, practical and technological studies at all levels of our educational system.

Promoters of SMEs should thus ensure the availability or possession of managerial capacity and acumen before pursuing financial resources for the development of the respective enterprise.

The MAN Blueprint is expected to deal with the problem confronting SMEs as revealed here by Onugu.
The former President Olusegun Obasanjo, who was guest speaker at the Thursday launch, made an argument similar to Onugu’s. He said “manufacturing cannot exist on its own, that it has seven brothers or sisters that must go hand in hand” with it. “They are like children joined together in the womb of manufacturing, their mother. If any of them is deformed then manufacturing will be adversely affected.” He listed these siblings of manufacturing as agriculture, infrastructure, finance, marketing, distribution/trading/retailing/export, tourism and mining. Talking about agriculture for instance, Nigerian agriculture is largely small holder farming. And the entire value chain that the present administration is currently emphasing its development – processing, packaging, distribution/sales, export are small players-dominated.

Finance has is big problem for small businesses either because they are not well packaged for loans they are demanding or they do not have the required collateral or they are ignorant of several other sources of funding other that the traditional banking source. Others like marketing, distribution/trading/retailing/export, tourism and mining are small enterprises turfs. Go to Jos for instance and see what players are involved in mining. Obasanjo wants all these relations of manufacturing strong, healthy, empowered, if all must be well with manufacturing. The National Association of Small Scale Industries (NASSI) will welcome this most heartily.

“Our strategy must involve well planned series of actions in each of these sectors mentioned. They either grow together or the stunting of one affects the other. The dramatis personae of this project are governments at all levels including government at community levels, financial institutions, marketers and distributors, exporters and export facility managers. There must be coordination at the highest level of government,” Obasanjo said.

Thus, like Onugu, Obasanjo argued the need for government at all levels to be involved in growing businesses. Like Onugu also, he also cited the issue of policy inconsistency. For him, Nigeria is bedeviled with a stunted manufacturing growth because our policies and ideas on this subject have been disjointed. “We have never had a consistent industrial policy. We lack vision or sustained mission, we have poor attitude,” he argued.

The MAN Blueprint is a welcome one. The document provides general and sector-specific action plans and addresses critical questions relating to manufacturing sector and proposes a bold set of reforms which, if embraced, are capable of unleashing the full potentials of manufacturing in the economy, particularly in the area of creating substantial and sustainable employment. Large as well as small enterprises stand to benefit greatly from the blueprint.

No be where ground dey man tey dey argue fight

Lady Amaka: He doesn't have money to help him but has 1.8million to pay cash? Some relatives nawaoo but the younger brother went to the extreme.

Common people. Do you know how he was able to raise the 1.8 million?
Why do we have this entitlement mentality? Because he's my brother or my sister, he/she have to set me up, have to give me money for my upkeep, have to take care of my family responsibilities. I think this method of reasoning, attitude clearly deserves total overhall. The only person responsible for your life is you. Don't blame your brothers, cousins, and others for your woes

How come this issue is not getting public attention and relevancy it deserves?

Our leaders are always talking about the problems and leaving out the solution. Whats David Mark solution to this endless Bokoharam issue?
While i do agree with him upto an extent that Religious Fundamentalism could be part of the problem, it is not the only problem. Poverty also plays a role. It will be so difficult to convince and recruit someone who's not battling with financial issues.

Omonpp: How can u compare Mechanical to Chemical
Mechanical Engineering is the mother of ALL.

How?

Looking at the argument from a "control and leadership" perspective, I will choose chemical engineering over mechanical engr. In terms of design, process schematics, process optimization, budgeting and others...chemical/process engineers takes the lead. They dictate to mechanical engineers what needs to be done. Chemical engineers practically own and control the project. They determine what other disciplines are required for the project.

While I acknowledge the importance of both disciplines; I believe that a critical upstream and downstream grassroots/revamp project cannot move forward without the expertise of chemical/process engineers, but it can proceed without mechanical engineers.

I agree with the author about the problem.

But, why is everybody so quick to point out the problem without preferring solution, or becoming part of the solution? Ghandi said "be the change you see in this world today". If you don't like something, accept the responsibility for changing it. The author then lost me when he said this "Stop prodding me to come home because you got a good job for me". Aren’t we suppose to be canvassing professionals to come back home; people that can contribute knowledge, expertise and other positive ideas that can help spot economic progress.

This is where majority of us get it wrong. We stay away in white man's country and want to help fix Nigeria's problem by writing alone. This is not enough. We have to act our writing, push for the change we believe in, lead the course in order to create a future we believe in. We cannot fight a war by sitting on the sideline, we have to be in it if that’s our believe.

You guys should stop this propaganda. It doesn't and shouldn't matter where the leader comes from as long as he/she is from Nigeria. What should be of concern to many is the true antecedents of the would be leader. Is the person the appropriate candidate for the job? Is he qualified to lead the country because the country belongs to all of us? Does the person have the integrity, character, competency and the zeal to solve our collective challenging problems? Let us put an end to all these ethnic, religious, and sectional sentiment that continues to regress our economy and use the right yardstick to elect the right candidate.

How come people are not talking about these people? Can we have this on the front page

This is a line of credit, loan and not grant. It will be a good idea to share with people the interest rate on the line of credit. Is the money going to the government, Nigerian businessman or is this money going to be given to Indian business people to do business in Nigeria. How is this money to be utilized down the line? We have to be careful of free, grants, aids and everything indians.

dayokanu: The Buhari administration identified indiscipline as the bane of the nation's ills and therefore decided to fight it in all its ramifications. Hence the pre-occupation of the regime was the launching of the different phases of the War Against Indiscipline (WAI) which has become a household word in may Nigerian homes. There were five phases of WAI, namely :-

a. Queuing (March 20, 1984)

b. Work Ethics (May 1, 1984)

c. Nationalism and Patriotism (August 21, 1984)

d. Anti-Corruption and Economic Sabotage (May 14, 1985)

e. Environmental Sanitation (July 29, 1985).



Other highlights of the regime include :-

1. The suspension of the 1979 Constitution in January 1984.

2. The dissolution of political parties and ban on political activities in January 1984.

3. The freezing of accounts of political parties and corrupt ex-political office holders in the Second Republic in 1984.

4. The trimming down of the country's Civil service labour force in 1984.

5. The change of colour of the nation's currency notes (except the fifty kobo note) in April 1984 to stop currency trafficking. The exercise rendered almost half of the estimated N6 billion in circulation worthless at the expiration of the change.

6. The deportation of illegal aliens on the 14th of April, 1984 and 9th of August, 1985 respectively.

7. The clamp down on economic saboteurs with the legal backing of the Miscellaneous Offences Decree No. 20 of 1984.

8. The launching of the Expanded Immunization Programme (EPI) in May, 1984.

9. The initiation of counter trade in Petroleum products in May, 1984.

10. The wrestling of a major concession from OPEC in 1984 to increase Nigeria's oil production quota from 1.3 million barrels to 1.45 million barrels per day.

11. The adoption of stricter austerity measures in 1984 and 1985 to further revamp the economy which include:

i. The closure of the Nigerian borders in January 1984 to stem smuggling.

ii. The setting up of taskforce to check bunkering as a result of expert's estimation of a loss of one million Naira a day under the civilian government.

iii. The slashing of the basic travelling allowance (BTA) from N 500 to N 100 per annum in 1984.

iv. The introduction of N 100 airport special levy for travellers going outside Africa.

v. The reduction of the home remittance for foreigners to 25 per cent in 1984.

vi. The abolition of the Approved Users Scheme, the General Concessionary Rates of Duty and the Compulsory Advance Deposit Scheme.

vii. The introduction of a new Customs Tariff, which reduced the range of import duties from between zero and 500 per cent to between 5 per cent and 200 per cent.

viii. The granting of import duty exemption to only twenty items including agricultural implements, air craft, fuels, lubricants, educational films, technical assistance materials etc.

ix The introduction of the Advanced Import Duty Payment Scheme.

x. The imposition of a levy on dormant companies.

xi. The promulgation of the Finance Decrees to amend the Income Tax Act of 1969.

xii. The halving of civil servants' leave entitlement in January, 1985.

12. The trial and conviction of ex-politicians who illegally enriched themselves or their political parties.

13 In 1984, Nigeria's recognition of the Sahara Arab Democratic Republic (SADR) on November 11, 1984.

14. The encouragement of substitution of imported raw materials with local raw materials to boost the growth of industries.

15. The encouragement of self sufficiency in agricultural food production.

16. The promulgation of a series of decrees aimed at revamping the economy and inculcating discipline. The most controversial being the Public Officers (Protection Against False Accusation) Decree No 4 and the Miscellaneous Offences Decree No. 20 of 1984.

17. The rescheduling of the nations's short term trade debts valued at over =N=5 billion and the subsequent issuance of promissory notes to the uninsured creditors.

18. The procurement of new Air Buses by Nigeria Airways in 1985 to boost air transportation.

19. The victory of Nigeria's Under-17 Team (the Golden Eagles) at the Kodak World Cup Soccer Competition in China in August, 1985.

Bros, thanks for posting this.

Guys, I think you're barking at the wrong tree. Your propaganda will not work.
In this kind of political dispensation, age is an asset not a liability.

Kobojunkie: I don't think Buhari should run again. I would rather we get a new person with the same Iron hand instead. Nigeria is tired of these group of old warlords . . . we need new ones.

Name one Nigerian person that fit that description and that also controls similar political influence.

Court strikes out suit against Ribadu committee, others

A Federal High Court, Lagos has cleared a legal hurdle that could impede the operations of the committees set up by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to carry out some reforms in the petroleum industry.

One of the committees is the Petroleum Revenue Task Force, headed by a former Chairman, Economic and Financial Crimes Commission, Mallam Nuhu Ribadu.

Justice Mojisola Ishola-Olatoregun on Tuesday struck out a suit challenging the propriety of the committees and the powers of the minister to set them up.

The PRTF was constituted following widespread allegation of fraud in the amount expended on fuel subsidy in 2011.

The two other committees that their existence is being challenged are Governance Control Task Force, headed by Dotun Suleman; and National Refineries Special Task Force, headed by Dr. Idika Kalu.

Gabriel Amalu, a Lagos-based lawyer, had instituted the suit, contending that the the committees existence amounted to an unconstitutional delegation of the powers of the minister and those of the agencies and other parastatals in the ministry to “quasi-committees”

He had also asked the court to give an order restraining the operations of the committees.

Olatoregun-Ishola struck out the matter on Tuesday due to lack of diligent prosecution.

The striking out of the matter for lack of diligence was on the grounds that all the parties in the suit and their counsel were absent at Tuesday’s proceedings.

The plaintiff had said Alison-Madueke set up the committees to deal with “fundamental issues” and to make “sweeping reforms” in the petroleum industry when those charged with the responsibilities are not public officers.

Joined as parties in the suit were the Attorney General of the Federation, Mr. Bello Adoke, a Senior Advocate of Nigeria, the Minister of Petroleum Resources, Alison-Madueke and heads of each of the committees.

The plaintiff had contended that the setting up of the committee infringed on the ministerial powers of Hononourable Minister of Petroleum Resources Provided by section 5(1) of the Constitution as amended and section 13 of the Petroleum Act Cap P10 Laws of the Federation of Nigeria 2004.

Interesting

THE Edo State governorship election fixed for July 14, 2012 may have suffered a setback as the Federal High Court, Abuja Division, yesterday barred the Independent National Electoral Commission (INEC) from using the collapsible transparent ballot boxes patented by Bedding Holdings Limited without the consent of the firm. The court, presided over by Justice Adamu Bello, also declared as “illegal” the deployment of the collapsible transparent ballot boxes for the 2011 general elections by INEC without the consent of the patent’s owner.

Delivering its verdict in a suit filed by the plaintiff, Bedding Holdings Limited, challenging the legality of the use of the boxes for the elections without its consent or authorisation, the court held that the electoral body went beyond its powers when it used the said boxes knowing that it had no right to its patent.

Bedding Holdings Limited as plaintiff had approached the court contending that it had subsisting exclusive and bonafide patent right to the collapsible transparent boxes used by INEC for the conduct of the 2011 polls.

The indigenous firm, which specialises in general fabrication and manufacture of steel metal products, said the collapsible transparent ballot box was among many of its innovations duly registered with exclusive patent right issued to it by the Registrar of Patents in the Federal Ministry of Commerce and Industry. The Certificate of Registration of the Patent Right Number RP 12994 and Registration of Industrial Designs Rights Number RD 5946 on the boxes was issued by the ministry to the plaintiff on January 12, 1998 for a five-year period.

It alleged that INEC violated its rights by its failure to seek its approval before awarding the contract for the procurement of the boxes used for the 2011 general elections.

Following a memorandum by INEC, the Federal Executive Council (FEC) on November 24 had approved a contract for the procurement of 150,000 units of the ballot boxes at the unit price of N13,000 with a total sum of N1.950 billion to EMCHAI Ltd.

In his submission on behalf of the plaintiff, John Okoriko submitted that “the plaintiff was palpably shocked to learn from the media on November 25, that INEC had, using fraudulently and falsely contrived documents, successfully sought and obtained the ratification of FEC for the award of the contract of yet another 150,000 units of the collapsible transparent ballot boxes without the prior consent, licence and authority of our client being the rightful owner of the patent and copyright design.”

Okoriko had prayed the court to hold that the contract as well as the use of the boxes in utter disregard to the plaintiff’s patent rights was contrary to the clear provisions of Section 6 (1), 19 and 25 of the Patent and Design Act, Cap P2 LFN, 2004.

After distilling the issues, Justice Bello upheld the claims by the plaintiff and also declared illegal a parallel patent right issued to EMCHAI over Envopak Ballot Boxes purportedly issued by the Ministry of Commerce and Industry, sometime in 2006.

He held that “the patent right of the plaintiff over the ballot boxes took priority over the subsequent registration issued to EMCHAI.

Any action or actions whatsoever and howsoever taken or purported to have been taken by INEC and other defendants relating to the ballot boxes without the prior and express licence, consent, authority and approval of the plaintiff is unconstitutional, illegal, unlawful and therefore null and void.”

However, Justice Bello struck out the name of the Attorney-General and Minister of Justice as fifth defendant to the suit on the ground that the office was in no way affected by the reliefs sought by the plaintiff.

Other defendants to the suit are the Registrar of Patents, Federal Ministry of Commerce and Industry, Emchai, Tambco United Ltd, Anowat Project and Resources Ltd., INEC and its Chairman, Prof. Attahiru Jega.

The judge granted all the reliefs sought in the suit on the ground that the facts and evidence preferred by the plaintiff were neither controverted nor denied by the defendants.