₦airaland Forum

Bidding consortiums with ties to former military president, General Ibrahim Babangida (rtd), former Chief of General Staff, Vice-Admiral Mike Okhai Akhigbe (rtd), as well as business moguls, Messrs Femi Otedola and Ernest Azudialu, will join other foreign and local investors, who will know their fate today as the National Council on Privatisation (NCP) opens the financial bids for the six generation companies (gencos) being sold under the privatisation programme.

The generation companies include the 300 megawatts (mw) Kainji Hydro Power Station in Niger State; 600mw Shiroro Hydro Power Station, also in Niger State; and the 482mw Jebba Hydro Station in Kwara State.

The other stations, which are gas-fired, include the 414mw Geregu Power Station in Kogi State, as well as the 360mw Ughelli and 120mw Sapele Power Stations in Delta State.
Other investors, whose companies will be entering the trenches for the acquisition of the six assets, include Mr. Tony Elumelu; a former senator, Brig-Gen. Tunde Ogbeha (rtd) and Col. Sani Bello (rtd).

A total of seven bidders were prequalified to have their financial bids opened today. The bidders to watch include Ampirion Power Distribution Limited, a consortium jointly owned by Israeli-based BSG Resource Limited, State Grid Corporation of China and their local partner Forte Oil Plc, an oil and gas marketing and distribution company largely owned by Otedola.

Ampirion was prequalified to have its financial bids opened for Geregu, where it is the sole bidder, and Ughelli Power Stations.

Matching up against Ampirion for the Ughelli power plant will be Transnational Corporation of Nigeria Plc (Transcorp), which is chaired by Mr. Tony Elumelu, whose company Hiers Holdings has the single largest stake in the conglomerate. Another contender for Ughelli is Phoenix Electricity.

Contenders for Sapele Power Station include JBN-Nestoil (Julius Berger Nigeria Plc-Nestoil), which is promoted by Azudialu. JBN-Nestoil will be competing for Sapele against CMEC Energy.

Meanwhile, North South Power Company Limited, which is promoted by Babangida, was the only consortium that submitted bids for the Shiroro Power Station and shall remain the sole bidder for the hydro power plant today.
In the case of Kainji, the other hydro station up for grabs, Mainstream Energy Solutions Limited, promoted by Bello, Akhigbe and Ogbeha, was the sole bidder for Kainji Power Station. Kainji will be sold as bundled company with the Jebba power station.

An NCP source explained that since the two stations are powered by the same river source, they could not be sold separately to different investors as the investor that acquires the station upstream could block the water source that powers the station located at the lower end of the river.

These bidders are expected to be represented by their financial and legal advisors at the financial bid opening, scheduled to take place at 9.30 am at the Transcorp-Hilton Hotel, Abuja.

Following in the path of previous transaction, the highest bidders will be announced as the preferred bidders (subject to final approval of the NCP), following which negotiations will take place on the payment terms and the execution of share purchase agreements before the assets are handed over to the winning consortiums.







http://www.thisdaylive.com/articles/power-assets-sale-ibb-akhigbe-others-enter-final-lap-tuesday/125954/

take note the 3days is on ABUJA ALONE.NICE ONE FG

The Chairman Board of Trustees’ (BoT) chairman of the Arewa Consultative Forum, Lt Gen. Jeremiah Useni (rtd), has said that Vice President Namadi Sambo, the highest ranking political office holder from the geopolitical north, does not have the clout to rally the north together, while the 19 northern governors were interested in political gains in 2015 rather than suing for peace.

Speaking in an exclusive interview with LEADERSHIP WEEKEND, Useni said the ACF had on several occasions, tried to provide a platform to foster northern unity and seek solutions to its problems, but with little cooperation from those with political authority.

The media aide to the vice president, Umar Sani, however, said that his principal was very capable and able to lead to the north politically or otherwise but every action of his must be seen to be patriotic and not regional in nature.

Sani said, “The vice president is not only a northern leader. His duties are guided by the constitution and the constitution gives powers to the president and it is what Mr President tells him to do that he will do. What clout is he talking about if he has no constitutional powers?”

He continued, “The vice president is guided by the overall national interest. He must subordinate himself to Mr President and deliver on their electoral promises.”

Useni also chided northern elder Mallam Adamu Ciroma for only having political interests while blaming former president Olusegun Obasanjo for using regional groups like the Middle Belt Forum to divide the north.

Speaking on the north’s unity, he said, “Take Sardauna for instance, he was a rallying point for both Muslims and Christians. He was a leader, but today so many leaders have emerged from the north. In fact, we have no leader, who can rally the north?

“We have senior officers from the north, the vice president is the most senior government official from the north today, but can he rally the whole north? That is why I said we have leaders but I don’t think we have a leader now who would make a clarion call and everybody would follow like during the Sardauna period.”

Speaking on the lack of development, poverty and insecurity in the north, he said, “These are things that unless we sit down and do something about, it will be too bad for us. We at the ACF are doing our best to ensure that things don’t get out of hand.

“We organised a conference in December last year and we invited all the governors. The vice president who represented the President came and most of the governors came but they left almost immediately without listening to the issues raised and possible solutions.”

Only the host governor, Useni said, stayed to the end. “So, are we at the ACF going to implement anything? We are not the executive body, not the judiciary and we don’t have the finance to tackle these problems. How do you think we can make a headway with this?”

On leaders who only speak for political interests, Useni said: “But some people, for reasons best known to them, maybe they have not been heard for a long time and they want to be heard now or they want you to know that they are doing something, will start segmenting the north, which is very unfortunate.

“There is the issue of Mallam Adamu Ciroma coming out to say that a particular candidate is the northern candidate for the recent presidential election. That is for a party. After that, did you hear anything from them again? The committee members are alive but did you hear anything from them about the north again?”

He said, “Look at the Middle Belt Forum, which I don’t belong to anyway, because Obasanjo was using them to kill the north. They say they are different from the ‘core north’. Which one is ‘core north’? Why am I chairman of ACF Board of Trustees? If they are ‘core north’, I am from Plateau State.

“So after Obasanjo left, did you hear anything? Even that time they had no office. I used to challenge them to show me their office. You can go to ACF and see the office. All these are for selfish interests.”


http://www.leadership.ng/nga/articles/35407/2012/09/22/northern_unity_crisis_useni_slams_vp_sambo_obasanjo.html

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AN Action Congress of Nigeria (ACN) chieftain and a member of the House of Representatives (Akure South/Akure North), Ifedayo Abegunde (a.k.a Abena), has been arrested by the Ondo State Police Command over his alleged involvement in the shooting of Labour Party (LP) members around the state capital on Thursday.

About 12 LP members and passersby were hit during the shooting at Irowo, Arakale, Eyinke, Eleye, Odopetu, Gbangbalogun and Oritagun quarters.

The victims are currently receiving treatment at different hospitals in the state capital.

An impeccable source at the command who preferred anonymity said Abegunde, spotting a white guinea attire with a black cap, was whisked away by detectives to the Criminal Investigations Department (CID) at the State Headquarters, Igbatoro Road, at about 1:05 p.m.

Some ACN chieftains, including a former Commissioner for Finance, Mr. Wale Akinterinwa, were seen around the CID office making frantic calls and discussing in hushed tones.

According to the source, Abegunde’s arrest was effected following series of complaints about his alleged sponsorship of political violence in the Federal Constituency, especially the latest incident which temporarily shut down one third of Akure for about five hours.

“The Honourable was brought to this office this afternoon to answer some questions over the shooting that scattered the town yesterday and other issues that his Akure people have complained about him, especially thuggery.”

Abegunde was said to have been grilled at the CID office and had not been released as at press time.




http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=99440:police-grill-acn-lawmaker-on-ondo-shooting&catid=1:national&Itemid=559

Banks Stopped From Lending To Otedola, Dantata, 417 Others

Obinna Chima
In a move aimed at strengthening financial stability and instilling discipline in the banking sector, the Central Bank of Nigeria (CBN) has barred banks in the country from extending further credit to 113 companies and 419 directors/shareholders, including those belonging to Mr. Femi Otedola, Alhaji Sayyu Dantata, Sir Johnson Arumemi-Ikhide, former Power Minister, Prof. Bart Nnaji, Mrs Elizabeth Ebi and Dr. Wale Babalakin.

The CBN arrived at this decision as a result of the reluctance by the debtors to pay back their loans despite the purchase of the debts at an agreed price by the Asset Management Corporation of Nigeria (AMCON).

In a new circular dated September 17, and obtained exclusively by THISDAY, the central bank stated that the restriction would apply to individuals, organisations, companies as well as principal shareholders and directors of companies where the outstanding value of loans purchased by AMCON amounted to N5 billion or above as at the day of purchase, without regard to the actual amount paid by AMCON.

The circular, which was signed by CBN’s Director, Banking Supervision, Mrs. A. O. Martins, stated that “it has become necessary to stop debtors who failed to repay their loans to banks and had these loans subsequently transferred to AMCON, from further enjoying credit facilities from Deposit Money Banks (DMBs) until they fully repay agreed outstandings to AMCON.”

The circular, which was accompanied by a detailed list of the blacklisted debtors, showed that worst hit by the directive are Zenon Petroleum, owned by Otedola, which was indebted to banks to the tune of N192.4 billion; MRS Holdings Limited, which belongs to Dantata – N119.98 billion; Seawolf Limited – N98.32 billion; Arik Air Limited, belonging to Arumemi-Ikhide – N85.481 billion; NITEL Plc/M-Tel – N71.547 billion; and Capital Oil and Gas Limited, which belongs to Ifeanyi Ubah – N48.014 billion.

Others include Falcon Securities, whose Managing Director, Mr. Peter Ololo, was arraigned alongside several bank executives in 2009 by the Economic and Financial Crimes Commission (EFCC) – N162.9 billion; Rockson Engineering Limited, owned by Arumemi-Ikhide – N60.475 billion; BGL Securities – N6.44 billion; Rahamaniyya Oil & Gas Limited – N46.38 billion; Bi-Courtney Limited – N20.214 billion; and Geometrics Engineering, owned by Nnaji – N19.76 billion.

The restriction also applies to: Aero Contractors Company, owned by the family of Olorogun Michael Ibru - N32.579 billion; Tinapa Business Resort – N18.509 billion; Nestoil Limited, belonging to oil and gas entrepreneur, Ernest Azudialu – N13.506 billion; Dorman Long Engineering – N9.667 billion; Ascott Offshore Nig. Ltd, belonging to former banker, Henry Imasekha and the Berkley Group – N64.728 billion; Gitto Constuzioni – N11.838 billion; and Dansa Foods – N14.880 billion, whose directors, Sani and Abdul Dangote, are the brothers of business mogul, Alhaji Aliko Dangote.

Commercial banks were also directed not to grant further credit to Cross River and Zamfara States because of the failure of the Tinapa Business Resort and Accountant General, Ministry of Finance, Zamfara to pay back loans collected respectively.
The restriction, according to the central bank, came into effect from the date of the circular and shall remain “until full liquidation of agreed indebtedness to AMCON”.

For Zenon Petroleum whose initial debt of N192.423 billion was priced by AMCON at N140.999 billion, the memo showed that “negotiations are ongoing and with fairly clear roadmap”. It also revealed that MRS Holdings’ debt of N119.986 billion, acquired by AMCON at a price of N91.620 billion has been “restructured and is performing”.

Similarly, while the remark on Seawolf’s debt of N98.328 billion that AMCON priced at N88.496 billion was put at “negotiations ongoing,” it showed also that Arik Air’s debt of N85.481 billion which was acquired by AMCON at N62.970 billion has been “restored but there is a moratorium”.

It also showed that while Capital Oil and Gas’ N48.014 billion has been “restructured and awaiting performance,” Rockson’s debt of N60.475 billion, which was acquired by AMCON at N36.331 billion, is still “pending”.

To ensure compliance, the CBN warned that any bank that flouts the guidelines would be made to make an immediate provision of 100 per cent of total principal and interest outstanding in the account of the customer and related parties, in addition to whatever regulatory penalties the CBN may decide to impose.


http://www.thisdaylive.com/articles/banks-stopped-from-lending-to-otedola-dantata-417-others/125575/

Contrary to reports by some Online Journals {Not Leadership}, the Bank of America and Wells Fargo bank in the United States have confirmed that the Embassy of Nigeria in the country had never operated any bank account with them.



Some Online Journals had recently alleged the Nigerian Embassy in Washington DC of laundering a huge sum of money into the United States on behalf of some state governors and government oficials through some accounts claimed that the Embassy operated with the Bank of America and Wells Fargo bank, an offence they claimed made both banks to close down the Mission's bank accounts with them.



The report further stated that the monies were allegedly wired into the Nigerian Embassy’s bank accounts with Wells fargo and Bank of America by some state governors and other government functionaries with the arrangements that the Embassy would make the money available to them on arriving the United States.



It also indicated that the Nigerian Permanent Mission to the United Nations under the leadership of Ambassador Joy Ogwu was also using its bank accounts to launder money for top government functionaries.



In an investigation that took LEADERSHIP's correspondent in the United States several weeks to conclude, both the Bank of America and Wells Fargo bank were able to confirm that the Nigerian Embassy in Washington DC never operated any bank accounts with them but the innocence of the leadership of the Nigerian Permanent Mission to the United Nations could not be confirmed as the officials of the banks promised to send their findings to our correspondent by mail.



During the investigation, both banks presented their banking records for the last five years to further prove that the embassy of Nigeria did not bank with them as claimed by the journals.



However, when our correspondent visited the office of Professor Adebowale Adefuye, the Nigeria's Ambassador to the United States last Friday, he said that the allegations were just made to tarnish his good image, stressing that he had never involved himself in any kind of fraud in his life.



He said: "It was so sad that these guys were writing those fake stories to bring the good image of the embassy into disrepute. I was surprised when the House of Representatives invited me to appear before its committee in Abuja and give an account of the runnings of the finances of the Embassy. I showed them everything they demanded from me and they got to know that the allegations of fraud against me were baseless"



"We have never operated any accounts with those two banks they mentioned in their reports. The only bank we were banking with is M&T Bank but in January, 2012, the bank advised the embassy to close down its accounts as a result of the Patriot and Bank Secrecy Act that imposes stringent monitoring requirements on the country's banks requiring them to track and report all activity occurring within foreign embassies bank accounts"



"We had issued a press statement to say that there was no iota of truth in the media publications which said that the US President directed some banks to close down the accounts of our embassy over an allegation of money laundering. I want to note that African Embassies have within the past one year been facing problems banking in the U.S.



"The problem arose as a result of the PATRIOT’S ACT by which stringent compliance regulations were imposed by the U.S. government to prevent possible money laundering that might be used to finance terrorist activities, and the compliance regulations involve a large amount of paper work and staff time, so many banks thought that the amount of staff time and energy spent in fulfilling these strict compliance regulations is not justified by the profit they make in keeping the Embassies Accounts"



Meanwhile, checks by our correspondent at the corporate headquarters of M&T Bank indicated that the bank did not actually close down the accounts of Nigerian embassy in the United States over money laundering as indicated in the reports by the online journals.



A top official of the bank in Washington DC who attended to our correspondent said that the bank only advised the embassy to close down its accounts as a result of the Patriot and Bank Secrecy Act that imposed stringent monitoring requirements on the country's banks requiring them to track and report all activity occurring within foreign embassies bank accounts.




The official further told our correspondent that the bank, through Mr. Peter Senica, an official in charge of Embassy Banking, had advised the Nigerian embassy to close its account by March 31st 2012.



The letter dated January 3, 2012 and signed by Mr. Senica reads in parts: “I am writing to advice you that M&T Bank is exiting the relationship with your Embassy effective March 31st, 2012. We recommend that a new account relationship be opened with another financial institution before March 31st 2012 and that you begin using their services once established.”



“In order to ensure a seamless transition of your day to day business we suggest that your M&T account be close by you before March 31st deadline since items and checks presented by for payment after that date will be returned unpaid.”



“If your account remains open after March 31st 2012 M&T Bank will mail a check to your attention for the remaining account balances minus any service charges if any. Any direct deposit or automatic debits for the accounts will not be accepted after March 31st ,2012, so you should discontinue these arrangements with your depositors/creditors accordingly.”



Mr. Senica further said in the letter to the Nigerian embassy that the United States banks see this action merely as a business decision in line with the 2004 directive by the treasury departments wherein they state that the treasury department cannot compel banks to keep embassy accounts open, if they reach the conclusion that it is most cost effective to close these accounts.



According to an earlier report by LEADERSHIP correspondent in the United States, the US Department of States had earlier absolved the embassy of Nigeria of any complicity in the allegation of fraud and money laundering made against the Mission by the online bloggers.


Then, the Spokespersons of the US Department of States who reacted to the report during an chat with LEADERSHIP, said that the United States government did not order any bank to close down the accounts of both the Nigerian embassy in Washington DC.

The official continued that no allegation of fraudulent activities against the leaderships of both Nigerian Missions had been brought to the knowledge of the government of her country.

She further said that the United States government has not received any information that the Ambassadors Adebowale Adefuye and Joy Ogwu-led administrations at both the Embassy in Washington DC and Permanent Mission in New York were involved in laundering money into the country on behalf of some State Governors and top government functionaries as reported by the Online Journal.

The United States official did not tell LEADERSHIP if the Permanent Mission in New York had ever operated or still operates bank accounts with Wells Fargo and Bank of America but, she confirmed that no bank account belonging to both Missions was closed down as a result of money laundering.

“I have just checked through all our records and there is no report that the Nigerian Embassy and the Mission in New York involved in frauds. It is not also in our records that any bank was ordered to close down their bank accounts. I cannot actually say if the Permanent Mission in New York did or still operates any form of accounts with Wells Fargo and Bank of America, but the Embassy in Washington had no accounts with the said banks” she told our correspondent.


http://www.leadership.ng/nga/articles/35278/2012/09/20/investigation_nigerian_embassy_had_no_account_us_bank_america_wells_fargo_bank.html

jp philips: @karlmax

i am very impressed with your post and i must commend you for defending jonathan without lies,unlike dedeike the Nazi witchdoctor. kudos!!

Nevertheless, there are some aspects of your post that needs some clarification.

You mentioned the elumelu probe panel and asked me to google it, that i have done and here are my findings;

i will wish to reiterate here that from the 4th page of this thread i have never denied the fact that jona organised the NIPP, you can browse backwards to clear your head.

Back to Elumelu, after the probe, Elumelu told Nigerians that the ''NIPP WAS A FRAUD'' and nothing was on ground.

I went to egbema in imo state and i ran into a power project still under construction with a huge NIPP sign post.

I again travelled to calabar and saw a multi billion naira sub station fully operational with a huge sign post NIPP, then i had my personal doubt.

It wasnt long after the probe that a company called Rockson engineering invited an independent foreign journalist who toured all the NIPP site just to prove that Elumelu lied.

I wasnt in a hurry to draw conclusions not until most companies who par took in the NIPP PROJECT alleged that elumelu was asking them for a bribe.

To cut a long story short, elumelu was later indicted of bribery, he was disgraced and his report discredited.


My question is this; why did a smart guy like you bring up the testimony of a thief without credibility to prove your point?


Let us assume that elumelu was falsely indicted, (which is not so), where did all the assets for privatization appear from if Elumelu was right?


Most jona's suoporters have agreed that jona has not completed any power project from scratch, the improvement in power as experienced in some parts of the federation came from where?

I believe we can safely esponge Elumelu from the realistic power equation.

Another challenge i have is this:

is it a crime for jonathan to roll out his own noble ground breaking initiatives while he continues with the good works of his predecessors?

Is it a crime? Dont you think that Nigerians deserve better? The most populous black nation in the world, the giant of africa? The 5th largest oil exporter in the world with a production of nearly 2.5m barrels of crude daily?


In his booklet, jona smartly passed on the improvement in power as his brain child which is crimminal even when his projects have not come on stream.
he never mentioned any input of his predecessor.


Is jona indirectly telling Nigerians that the much touted change and fresh air is all about organising old projects and stealing its glory wholly?

Once again, thank you for defending jona without lies and i hope you will do same while answering the questions i raised.

since u are familiar with the elumelu probe and agree with him that there was nothing on ground!.now GEJ took over and lunches his POWER ROAD MAP when he took over and here are what he has achieved so far just less than 2yrs of his administration
President Goodluck Jonathan, no sooner than he came into office last May, conducted a review of the Power Sector Reform and the National Integrated Power
Projects (NIPP). Dr. Jonathan consequently launched the Road Map for the Power Sector Reform on August 26, 2010, to fast-track the implementation of the EPSR Act of 2005. The Road Map seeks, among other things, to strengthen policies and institutions to grapple effectively with the challenges of the power sector reform, including that of efficient private sector investment and management, and of effective government regulation of the sector. For the first time, the country now has a far-reaching and realistic plan for the reform of the power sector, identifying requirements to achieve stable power supply in the entire value chain from gas to generation, to transmission and distribution. The Road Map has set a definitive plan with timelines for medium and long terms goals. Nigeria’s telecommunications sector in which telephone lines rose from under 400, 000 to over 80 million in less than 10 years is a testimony of the
potential of reform to replace scarcity with abundance.
 
The power sector has, under President Jonathan, enjoyed unprecedented government attention. The administration, as soon as it came into being, set up the Presidential Action Committee on Power (PACP) which meets every Tuesday, with the president himself chairing and the Vice President serving as Alternate Chair. The PACP sets policy and grants expedited approvals for critical decisions for the implementation of the power sector reform. The Jonathan administration also set up, shortly after it was inaugurated, the Presidential Task Force on Power (PTFP) as the implementation arm of the PACP; the PTFP supervises the day-to-day implementation of steps to restore confidence in and reform the power sector. Considerable and sustainable successes have been recorded on both the reform and service delivery fronts.

Indices of Progress in Creating a Private-Sector-Led Power Industry
i. New, experienced and credible Commissioners of the Nigerian Electricity Regulatory Commission (NERC) have been sworn in and have commenced work on a Multi-Year Tariff Order (MYTO), which will be attractive to investors, to ensure the commercial viability of the market and, of course, be fair to consumers, especially the urban poor and rural dwellers. 

ii. The Nigerian Bulk Electricity Trading (NBET) Plc has been incorporated. It will purchase electricity generated in the country on behalf of the distribution companies until they mature by attaining credit worthiness. This is to ensure there will be no stranded electricity in the country or economic losses to the stakeholders.

iii. Independent Power Producers are being contracted by the Bulk Trader to generate an additional 6, 000 megawatts by 2014, almost 3, 000 megawatts of which will be available by 2013. 

iv. A World Bank Partial Risk Guarantee (through the Federal Ministry of
Finance) for the Bulk Trader to protect investments in generation plants against
political and other risks and further boost investor confidence is being finalised.

v. Investor confidence is growing. For instance, as many as 331 companies across the globe have expressed interest in investing in the state-owned eleven distribution and six generation companies slated for privatization this year. (It is not altogether surprising that so many firms, including some of the world's most respected ones, have shown interest in Nigeria’s power sector. In October 2010, a highly successful Presidential Retreat for power sector investors was held at the State House, Abuja. Among participants were Siemens of Germany, Rolls Royce of the United Kingdom, General Electric of the United States, Goldman Sachs of the United States, JP Morgan of the United States, Marubeni of Japan, Standard Bank of South Africa, Esser of India, ABB of Sweden and Switzerland, etc.  Before Expressions of Interest (EoIs) were called for the seventeen state-owned power enterprises, eminently successful road shows were held in London, New York, Dubai, Johannesburg and Lagos to apprise the business community of immense investment opportunities created by the ongoing power sector reform. Nigeria has, of course, always provided an excellent return on investments. Immediately the telecoms sector was liberalised, for instance, Nigeria became the cash cow for major GSM operators. Buoyed by the experience of these companies, Bharti Telecoms of India only a few months ago invested billions of dollars to acquire the majority stake in the Nigerian operations of Zain. If the liberalisation of the Nigerian telecoms market could bring tremendous good to both investors and the Nigerian people since the early 2000s, the opening up of the electricity sector will cause a revolution because, among other reasons, power is a much bigger sector than telecoms the world over. In other words, the ongoing power sector reform will cause a major employment escalation with electricity workers enjoying salaries and conditions of service comparable to those of their colleagues working in the telecommunications sector.)

vi. Payment of N57 billion arrears of monetized benefits to PHCN workers owed since 2003 when the Federal Government adopted the policy of monetization of benefits to public officers.   

vii. The government’s determination to address the workers’ concerns and rights by ensuring the prompt payment of benefits to PHCN employees once government’s stake in the distribution and generation companies is diluted.

viii. The government’s decision to reserve a reasonable percentage of shares in the distribution and generation companies for PHCN employees so that they can become part owners of the firms.
 
Indices of Improvement in Service Delivery and Projections for the Future

i. Design and implementation of extensive rehabilitation, replacement and maintenance of assets across the fuel-to-power, generation, transmission and distribution chain of the power sector.

 ii. Conception and planning of 700 KV Super Grid to boost the capacity of the national grid to handle increase in generated power beyond the next decade, enabling Nigeria to be one of the first countries in the world to be on the cutting edge of power transmission technology.

 iii. Initiation of gas-to-power projects to address current and future demand from power generation plants. The launch of a Gas Revolution programme in March, 2011, by President Jonathan underscores this focus.

 iv. Fast-tracking delivery from NIPP facilities: One of the projects, at Olorunsogo, now contributes 113 megawatts to the national grid. 690 megawatts will be produced by December 2011 and an additional 1,000 megawatts will be available by the end of 2012. On the whole, the NIPP will generate a total of 4770 megawatts by December 2013.

 v. 6, 000 megawatts will be generated before the end of 2014 by IPPs like Dangote,
Lafarge, Notore, SuperTex, Wemco, Geometric Power, Chevron, ExxonMobil, Total Fina, Hudson Power, AGIP, Negris, and Mabon Energy.

vi. A superior management system of power supply is now in place. As a result, system collapses are now a rarity. The nation has experienced only two system failures this year, a sharp contrast to the past when we experienced system collapse three or four times every month.

 vii. Prevention of wild fluctuations in power supply: supply has been stabilized at 4, 000 megawatts peak availability, the highest ever in our national history. A whopping 1,000 megawatts has been added to power supply since President Jonathan assumed office less than a year ago.

 viii. Installation of about 3, 000 distribution transformers and associated power equipment and accessories nationwide.

 ix. Many Nigerians are enjoying more hours of power supply because of the
rehabilitation and recovery of existing generation plants.

x. More households and businesses will benefit from the increased generation and enjoy increased hours of electricity as deficiencies in the distribution and transmission networks are progressively eliminated through the refurbishment and upgrading of facilities and a general modernization programme. (Ironically, the ongoing comprehensive rehabilitation programme has caused a number of areas to be without electricity for several hours and sometimes for days and weeks; power supply to these areas has to be interrupted for the rehabilitation to go on. PHCN Management has just been directed to explain what is going on to the public and apologise to the people so affected for the inconveniences caused by the disruptions.)


xi. The power sector will be expanded to drive GDP growth so that Nigeria will generate more than the irreducible 40,000 megawatts needed to make the nation become one of the world’s twenty largest economies by 2020.

 Conclusion

The Road Map for the Power Sector Reform provides light at the end of the tunnel. The Road Map is bringing to an end five decades of underinvestment and inefficiency in Nigeria’s power sector. Ten billion dollars worth of investment is expected in the sector annually for the next decade. (Apart from companies like Esser of India which has since last October pledged to invest $2 billion in the next few years in our nation’s power sector, there are firms from Europe which have pledged to invest up to $20 billion in Nigeria in the next couple of years if Nigeria sustains its present reform pace.) Currently, 70 percent of power supply in Nigeria comes from state-owned power plants, but with the ongoing reform 70 percent of power supply will come from the private sector in the next three to four years. As our experience with telecommunications has demonstrated eloquently, Nigerians will soon begin to take regular supply of quality power for granted. The provision of critical infrastructure like electricity is the foundation needed for Nigeria’s economic takeoff. Truly, Nigeria is a miracle waiting to happen. And I hope when he commissions the transmission and generation plants that are been built accross the nation before his tenure expires which he started and completed would you take back ur words?

jp philips: answer the following questions,

how is the SWF funded?

How was the ECA funded?
Leave the comittee and the managers out of it. Leave the legallity out too,

We are talking about money so tell us the source.

Mention one single power plant jonathan started and have finished from the scratch? Just one?
You can include transmission stations if you like.

Dont dabble into issues you dont understand, the NIPP was initiated and funded in part by OBJ, the plants have come upstrream with various challenges,

jonathan brought the amicable prof who organised the already existing NIPP.

Who takes the glory, the man that thought it out, planned and funded it in part before he left

OR

the man that organised it.

Be the judge yourself, hoping you are an adult

while you think about that, has there been a revolutionary initiative from joboy's administration like the NIPP?

Please mention one.

Obasanjo thought of NIPP, consolidation of banks etc, what is that ground breaking achievement of jona?

Lemme guess, printing textbooks of achievements which includes; surfacing of roads, purchase of coaster buses, paying off millitants, enthronement of cabalocracy


You think im stup!d abi

your post shos hy nigeria is why nigeria is where we are today. so before u can say the fg is working it has to continue with the culture of abadoning projects that it didnt start like the previous government.GEJ wOULD HAVE TO ABANDON PREVIOUS PROJECTS THAT HIS PREDECESSORS STARTED AND START AND FINISH IS OwN BEFORE U CAN SAY HIS wORKING ?.THANK YOU FOR FURTHER CEMENTING MY BELIEVE IN THIS ADMINISTRATION.BUT I wANT U TO KNOw THAT THE DAYS OF wASTAGE IS OVER IN NIGERIA wE CANT BE ABANDONING PROJECTS BECAUSE A PARTICULAR ADMINISTRATION STARTED IT.BUT IT IS ON RECORD THAT THE SO CALLED NIPP U CLAIMED OBASANJO STARTED, wE ALL SAw DURING THE HOUSE PROBE ON POwER AFTER HIS TENURE,wHAT wAS ON GROUND,AND THE OUTCOME OF THE PROBE INCASE U DONT REMEMBER wHO SENATOR ELUMELU IS U CAN GOOGLE AND FIND OUT.This made power reforms an imperative going forward. And this too needed relevant legal amendments. Former president, Olusegun Obasanjo initiated power reform in 2005 by enacting the Electric Power Sector Reform, EPSR, Act, which liberalised the environment and created the Nigerian Electricity Regulatory Commission, NERC. The Act broke the monopoly of the federal government in power generation and replaced National Electric Power Authority, NEPA, with the Power Holding Company of Nigeria. In search of efficiency, the government unbundled PHCN by creating 18 successor companies. By the Power Reform Act, 17 of the 18 successor companies were to be privatised; only the Transmission Company of Nigeria, TCN, would remain in the hands of the federal government. All the 18, including TCN, would be managed by the private sector to ensure efficiency and high productivity.



Jonathan’s government quickened the implementation of the Power Reform Act of 2005 to ensure full private sector buy-in into the promising Nigerian power market. With the co-operation of the National Assembly, he paid off N57 billion monetised benefits 0f 47,000 PHCN staff which they were owed since 2003. Next he set up the Presidential Action Committee on Power, PACP, which became the highest decision making organ for the electricity sector, with himself as the chairman, and ministers and heads of agencies whose offices deal directly and indirectly with power development as members. The Presidential Task Force on Power was also established to implement PACP decisions.



From the EPSR Act, the government developed the Road Map for Power Sector Reform. President Jonathan launched it in Lagos on August 26, 2010. It clearly mapped out the power sector development up to 2015 with definite timelines. Nnaji who was upgraded to the power minister in June 2011 has been dutifully implementing those milestones. According to him, “The targets have not been met as we would have liked, but the strategic objective remains incontestable, in fact, inviolate.” Nigerians can attest that this is so because of the intense activities forward despite counter advocacy by entrenched selfish labour interests. Nnaji confirms that the 17 successor companies of PHCN would definitely be privatised this year by the Bureau of Public Enterprises, BPE. As a prologue to this, Manitoba Hydro International of Canada just won the bid for the management of the 18-firm TCN. The Bulk Electricity trader, BET, has been set up, with the chief executive and board of directors appointed. The BET’s role is to provide guarantees to power generation companies to produce as much electricity as they can with the assurance that it will be paid for. In the marketing mix. The BET will continue to operate until the distribution firms become creditworthy; while World Bank is providing Partial Risk Guarantee to the BET.

nagoma: With GEJ so called liberalism we have too many presidents, . We have Boko Haram President, MEND president and top level contractor, fuel subsidy presidents, kidnapping presidents, and so on. If he continues even I may become a presiden of something. It is not liberalism my friend it is incompetence - get it right.

SO ALL THESE PRESIDENTS U MENTIONED ALL BECAME PRESIDENTS UNDER GEJ ADMINISTRATION? I wOULD LIKE TO HEAR YOU REPLY SIR

adam adamu: As for me, i think the President is trying his best to see to rapid growth of this country by having the best socio-economic status. Afterall, he has spent more than 1year in the office or have you not seen that Agricultural and Power sectors are improving? Looking at what those that spent four years called "Achievements", we'll know that President Goodluck Jonathan is coming up and with our sincere support, he will get there.

DONT MIND THOSE THAT CANT SEE OR FIND OUT wHAT IS GOING ON IN THEIR COUNTRY.

1025: for the singular reason that we are arguing whether jonathan is doing well or not makes it clear that he is not doing anything.
all of us have eyes. we see our roads, hospitals, schools and we feel the impacts of security problems.
as we speak, there is fuel scarecity in abuja and lagos. as we speak, our first lady is in a hospital not in nigeria but germany.
if 155 pages of achievements cannot take care of our first lady's health and we cannot have fuel which many countries of the world look up to us for provision, then we need a prophet to confirm that jonathan has done well.
giving awards to 5 million nigerians does not change the price of garri in the market.
make available certain products is one thing then the cost of getting these products will be another topic.
if jonathan is well convinced that he has done much, he will not need all these adverticements here and there. let your works speak for u.
in nigeria today, we see some level of improvements on the power sector and we do not need 155 pages to feel that in our homes.
let the govt do what they swore oaths to do. after people will be asking why husbands and wives go into aso rock and one of them will not come back. why will they come back when they always go against their oaths?

kindly speak for yourself and those who dont see anything good about this government.you and those group of people may not see anything good in this government,while those that believe in the tranformation agenda of the government tap into it while those that dont can keep critisizing the fg on social media even the so called opposition are tapping into it.if our past leaders had done half what this administration has done am sure we wont be where we are today.like i said speak for urself dont use THE PHRASE ALL OF US

jp philips: refuting the obvious makes one to look as moronic as dedeike.

Take a close look at the picture i attached, that pic is a project site of JMS a state govt contractor doing airport to uzuagha road.

That lebanese is doing ''road survey and markings''

are we saying that Nigerians cannot do these jobs?

Why are the jonathan's witchdoctors decieving Nigerians on indegenisation.

I have showed evidence that jonathan has zero implementation frame work for the 70% indegenisation he is touting as achievement.


That contract was awarded by the rivers state ministry of works.
If govt itself doesnt care about indeginization, why is Dedeike and other jonathan's witchdoctors disturbing my peace?

stop beating around the bush and issue ur own rebuttal to what he wrote and also provide links like he did and stop cluthching on straws like the others

“The presence of National Assembly is not sufficient to draw the Senate into the ring. The real and imminent urgency may not have been reached to warrant the intervention of this court. To this extent, the court must exercise its powers with caution as an arm of government. The procedure and guideline provided for in section 143 (1) to (9) are so elaborate and impeachment should not be undertaken so casually so as not to send wrong signals to foreign investors” the court noted.

These sections provide as follows,
143(1) The President or Vice-President may be removed from office in accordance with the provisions of this section.

(2) Whenever a notice of any allegation in writing signed by not less than one-third of the members of the National Assembly:-
(a) is presented to the President of the Senate;
(b) stating that the holder of the office of President or Vice-President is guilty of gross misconduct in the performance of the functions of his office, detailed particulars of which shall be specified,

the President of the Senate shall within seven days of the receipt of the notice cause a copy thereof to be served on the holder of the office and on each member of the National Assembly, and shall also cause any statement made in reply to the allegation by the holder of the office to be served on each member of the National Assembly.

(3) Within fourteen days of the presentation of the notice to the President of the Senate (whether or not any statement was made by the holder of the office in reply to the allegation contained in the notice) each House of the National Assembly shall resolve by motion without any debate whether or not the allegation shall be investigated.

(4) A motion of the National Assembly that the allegation be investigated shall not be declared as having been passed, unless it is supported by the votes of not less than two-thirds majority of all the members of each House of the National Assembly.

(5) Within seven days of the passing of a motion under the foregoing provisions, the Chief Justice of Nigeria shall at the request of the President of the Senate appoint a Panel of seven persons who in his opinion are of unquestionable integrity, not being members of any public service, legislative house or political party, to investigate the allegation as provide in this section.

(6) The holder of an office whose conduct is being investigated under this section shall have the right to defend himself in person and be represented before the Panel by legal practitioners of his own choice.

(7) A Panel appointed under this section shall -
(a) have such powers and exercise its functions in accordance with such procedure as may be prescribed by the National Assembly; and
(b) within three months of its appointment report its findings to each House of the National Assembly.

( Where the Panel reports to each House of the National Assembly that the allegation has not been proved, no further proceedings shall be taken in respect of the matter.

(9) Where the report of the Panel is that the allegation against the holder of the office has been proved, then within fourteen days of the receipt of the report at the House the National Assembly shall consider the report, and if by a resolution of each House of the National Assembly supported by not less than two-thirds majority of all its members, the report of the Panel is adopted, then the holder of the office shall stand removed from office as from the date of the adoption of the report.


they wont be able to muster the mandated two-thirds majority of what is required by the constitution in their own house.they should stick to hat they know. wasting our resources

Kobojunkie: The house and senate can.

yes they can,is not only the REP that has been making noise like dogs about impeachment?.please they should focus on the pib bill and stop chasing shadoWs

sashbaby: Am not sorry to say we have a retaaaA.rd for a president. It's just a case of night dream for dedeike. Wake up pleeeeAse.

Why dont u refute hat dedeike Wrote so that We knoW Who needs to Wake up betWeen you tWo

the house of REP alone cannot impeach GEJ. THE COURT HAS ALREADY SAID THAT.so they should keep exibiting their lack of knoWledge of the constitution.foolish people

nice one fg.apart from abia state correct me if am Wrong, no other state has said anything about hoW much they received and What they intend to do ith the subsidy money they collected.and nigerians are not asking or holding them to account

The Peoples Democratic Party (PDP) has vowed to take the Rauf Aregbesola government and the Infrastructure Bank, based in Abuja, to court over a N17.8bn loan recently given to the Osun State government by the Bank.

The state chapter of PDP in a statement issued by its chairman, Alhaji Gani Ola Oluwa at the weekend, said the party’s lawyers had been instructed to look at the propriety of the N17.8billion loan for the dualisation of a 45km road initially billed to cost N8billion.

The managing director of the Infrastructure Bank Plc, Mr. Adekunle Oyinloye, last month announced in Abuja that the bank was giving the Osun State government the N17.8billion loan to fund the Osogbo–Ila-Odo Road Dualisation project.

The PDP said it decided to challenge both the terms of the loan and especially the N17.8billion cost of the project which was actually designed by the Olagunsoye Oyinlola administration as the second phase of the Gbongan-Osogbo- Ila Odo- Kwara boundary road with a total cost of about N8billion. According to the PDP, the 23 km Akoda- Osogbo first phase of the project, including the massive second Osun bridge, was constructed and completed by the Oyinlola government with about N3billion.

The party noted that even at that price, the then opposition Action Congress of Nigeria (ACN) said N3billion was too much for a 23km road, stressing that it is waiting to see how the ACN government would justify the almost N18billion cost for the 45km road in the savannah part of the state.

It added that it would also ask the court to determine whether it was proper for the Aregbesola government to commit the state to such huge indebtedness without the approval of the state House of Assembly and without the contract going through the due process.
The PDP further stressed that it was also interested in knowing whether it was just sheer coincidence that all the principal actors in the transactions, including the contractor, were from the same town in Kwara State with the wife of the governor of Osun State.
It said this became necessary following insinuations that the Kwara man behind the firm that got the contract is a brother-in law of Aregbesola and that there is also a link with the Infrastructure Bank boss, Oyinloye who also hails from Kwara State.



http://www.thisdaylive.com/articles/pdp-to-sue-aregbesola-over-n17-8bn-road-contract-loan/125103/

By James Emejo

The Nigerian economy grew by 6.28 per cent in the second quarter of this year, driven by non-oil sector growth, while inflation fell for the second straight month in August helped by tight monetary policy, the latest economic data from the National Bureau of Statistics (NBS) have shown.



GDP growth accelerated in the second quarter, up from 6.17 per cent in the first quarter, which was the lowest quarterly rise in three years.

“The non-oil sector was driven by growth in activities recorded in the building and construction sector, while oil sector output decreased, compared to the second quarter of 2011,” the NBS said in its report released Sunday.



The economy is expected to expand at a slower rate this year, after rising 7.4 per cent in 2011, due to disruptions to oil production and economic weakness in developed countries that buy its gasoline-rich crude.

The Consumer Price Index (CPI) dropped to 11.7 per cent year-on-year in August, down from 12.8 per cent in July, largely due to a fall in food inflation which dropped to 9.9 per cent in August from 12.1 per cent the previous month, the NBS said.



Average crude oil output from Africa's largest producer rose marginally to 2.38 million barrels per day (bpd) in the second quarter, from 2.35 million bpd in the first quarter. This was down from 2.45 million bpd in the second quarter of last year.

Oil accounts for more than 80 per cent of Nigerian government revenue and around 95 per cent of its foreign exchange earnings.
The report said high interest rates and lower food prices had helped temper inflation.



“The relative moderation in the index is attributable to the relative slower rises in both the food and 'core' indices partly as a result of aggressive monetary policy initiatives by the Central Bank of Nigeria (CBN), base effects and a much lower rise in several food prices,” the bureau said.

The CBN had, among other things at its last monetary policy committee (MPC) meeting, raised banks' cash reserve ratio (CRR) to 12 per cent from 8 per cent in a bid to curb inflation and discourage speculative activities at the foreign exchange market.



The CBN monetary policy committee will meet next week and while the inflation numbers will feed some private sector demand for a loosening of monetary policy, some analysts are expecting rates to remain at 12 per cent, as they have been since November last year. The rate decision will be announced tomorrow.

Other reasons given for the 8.5 per cent drop in inflation include base effects and a much lower rise in several food prices such as yam, tubers and vegetables due to the harvest season.



The NBS said: "In particular, the Food Index exhibited a sharp increase in August 2011. The implication is that year-on-year changes in August this year were muted due to higher prices in August of the previous year.

“In August this year, most classes under the food index increased, but again, only in relative moderation."
According to the report, the composite Food Index dropped year-on-year by 9.9 per cent to 135.9 points in August from 12.1 per cent in July.



Meanwhile, the urban inflation rate stood at 14.4 per cent year-on-year, while that of the rural component recorded a year-on-year increase of 9.7 per cent.

According to the NBS, the urban all items index increased by 0.69 per cent month-on-month, while the corresponding rural index also increased by 0.66 per cent, compared with the previous month.
The NBS report noted that on a month-on-month basis, core index increased by 0.6 per cent during the same period.



“The rise in core index is attributable to higher prices of clothing, medical services, hotel and restaurant prices, and accommodation services, among others. The average 12-month annual rate of rise of index was 13.3 per cent for the twelve-month period ending August 2012,” it stated.

Continuing, the report also noted that percentage change in the average composite CPI for the 12-month period ending in August 2012 over the average of the CPI for the previous twelve-month period was 11.8 per cent.



It added that the corresponding 12-month year-on-year average percentage change for urban and rural indices was 12.4 and 11.4 respectively.


http://www.thisdaylive.com/articles/nigerian-economy-grows-6-28-as-inflation-eases-to-11-7-/125152/

Hope the AC.N won't claim the project like they nomally do,and I hope they give the FG credit for this project

Mandelaguy: The fresh air continues. This is a welcome upward trend,and with the infrastructuralnroad map already set and the 2013 projections, we are on the right track kudos goes to GEJ and his functioning team. For those ministers and ministries still sleeping,this should serve as a wake up call because they cannot afford to under perform.

my brothrer as the haters grumble and hate, nigeria is moving forward.

The Northern State Governors Forum may well be on its way to challenging the constitutionality of the Onshore/Offshore Act based on a previous Supreme Court verdict and the assertion that the Act negates constitutional provisions that give control of the country’s territorial waters to the federal government.

While former speaker of the House of Representatives Aminu Bello Masari has absolved himself from engineering the passage of the Act, suggesting it was a political compromise among the presidency, governors and National Assembly, he said there was no reason why it could not be revisited.

Believing there is a good chance the Supreme Court could strike out the Act, a Senior Advocate of Nigeria, Yahaya Mahmood, has advised President Goodluck Jonathan to seek a political compromise to the impasse rather than allow the northern governors to head for the Supreme Court.

A close aide to the chairman of the forum, Governor Muazu Aliyu of Niger State, told LEADERSHIP Sunday that taking their case to the Supreme Court remained an option for them unless an agreement was reached with all stakeholders.

Mahmood said: “In 2002, the attorney-general of the federation engaged Chief Rotimi Williams and Alhaji Abdullahi lbrahim, SAN, to file a suit in the Supreme Court on behalf of the federal government against the 36 states.

“The claim was for the court to say or determine what is the boundary of each of the littoral states for the purpose of calculating the amount of revenue accruing, i.e., 13% pursuant to S.162(2) of the 1999 constitution.

“The states were Akwa lbom, Bayelsa, Cross River, Delta, Lagos, Ogun, Ondo and Rivers. The states filed counter-claims which were not relevant except the claim asking the federal government to render an account of monies in the Federation Account.

“The Supreme Court held that the powers and authority of the federal government over the entire maritime belt or territorial waters of Nigeria are beyond doubt; consequently, the littoral states lack control of or authority over territorial waters of Nigeria.”

That judgement, Mahmood said, began the on-shore offshore debate. “In 2004, the National Assembly, through an Act, abolished or abrogated the dichotomy, in essence setting aside the judgement. If the littoral states have been judiciously using the 13% on the host communities, the matter would have been settled by now.” he said.

“And each littoral state gets almost 10 times what, for instance, Benue and Sokoto states get monthly. A political solution should be found. But as a lawyer, I tell you that the 2004 Act is unconstitutional. The northern states can go back to the Supreme Court. But President Jonathan should not allow that. He should be just and settle the matter politically.”

Masari on his part said, “When in 2003 we came, it was re-introduced; and this time when it was re-introduced, it was done after the parties involved – the Governors’ Forum and everybody - agreed to come out with a political solution that would be acceptable to all.

That was why it was reduced from 500 to 200 nautical miles. For anybody now to come and say we should blame Mr. A or B, I think they missed the point. This Act was a compromised position of the governors, president, political parties and the National Assembly.”

He continued: “I could remember when we were discussing the issue with the former president, he said he envisaged a situation where maybe after 10, 20 years with the offshore exploration, maybe over 70 to 80 per cent of all the oil will be on the offshore, so that the pressure on onshore-offshore will cease.”



http://www.leadership.ng/nga/articles/34962/2012/09/16/onshoreoffshore_controversy_northern_governors_may_go_supreme_court.html

source:http://www.thisdaylive.com/articles/rising-foreign-reserves-spur-positive-outlook-for-economy/125093/

As the foreign reserves portfolio of the Federal Government rises on the eve of this month’s Monetary Policy Committee Meeting of the Central Bank of Nigeria, economic watchers say Nigeria may be on the march again to hedge its economy against potential challenges, reports Festus Akanbi

Riding on the back of the current impressive showing of the nation’s external reserves, there has been an outpour of commendations for the Federal Government’s fiscal discipline and effective coordination, with analysts saying the impact of the reserves build-up will soon manifest in the state of the nation’s economy if sustained. As at September 7, the nation’s foreign reserves was put at $39,848,103,938.1 and with the economy having the capability to finance its imports for over eight months, analysts say the development has the potential of engendering confidence in the economy. And as the Monetary Policy Committee of the Central Bank of Nigeria (CBN) sits to review the existing monetary policy in Abuja this week, analysts say the odds favour either a retention of the existing rates or a marginal cut in the MPR in view of the fluidity of foreign exchange into the economy. According to those who took this position, recent policies put in place by the CBN and the favourable scenario from the international oil market has combined to ease tension from the naira. A breakdown of the foreign exchange flow showed that the forex reserves increased by $407 million or 1.03 per cent, from $39.351 billion recorded on September 4, 2012 to close at $39.758 billion on September 6. Also, between August 6 and September 6, the reserves rose by $3.35 billion, a development which analysts described as beneficial to the Nigerian economy.

Favourable Oil Market
The renewed enthusiasm, according to economic watchers, could be attributed to the upward trend in the prices of crude oil at the international market. For instance, the price of OPEC basket of 12 crudes stood at $112.32 dollars a barrel last Monday, compared with $111.55 the previous Friday, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Bonny Light (Nigeria), Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). The Nigerian National Petroleum Corporation had said about 85 per cent of the increase in the reserves was from crude oil, with the country’s crude oil production hitting a record high of 2.7 million barrels per day on August 1. The development is coming at a time the CBN is planning to convert more of the nation’s foreign reserves from the dollar into the Chinese Renminbi or Yuan. The CBN had said in a statement in March that it had converted $500 million of the country’s external reserves into the Yuan in the last six months. CBN Governor Sanusi Lamido Sanusi had said the aim was to gradually increase the Yuan holdings to 10 per cent of the reserves.

According to a Financial Times report, together, Nigeria and Tanzania bought bonds worth Rmb 500 million out of the Rmb 2.5 billion three-year issue from the China Development Bank, the Chinese state development lender. The forex reserves had fallen by 1.4 per cent month-on-month to $36.40 billion as at July 25, from $36.93 billion recorded a month earlier. The $53 million decline, according to analysts, was as a result of falling oil prices and strong dollar demand. The reserves had plunged in the month of June, dropping by $1 billion to $36.768 billion on June 28, from $37.768 billion on June 6, 2012. Apart from the favourable oil price, financial analysts explained that the current build-up of external reserves by the Central Bank of Nigeria (CBN) was a product of new regime in forex market. This is because; the apex bank no longer appeared to be desperate about foreign exchange market unlike in the previous year. Unlike in previous years when the apex banks was compelled to pump more dollars at the official exchange market in order to stabilise the naira, there seems to be a cautious approach these days.

Market operators also explained that the sanity introduced into oil importation in the wake of the recent oil sector probe and the attendant scrutiny given oil importers’ requests have drastically reduced pressure from the foreign market. The CBN sold a total of $10.18 billion at the Wholesale Dutch Auction System in the first half of this year. For instance, while CBN sold and offered a total value of $14.85 billion at the weekly Dutch Auction System (WDAS) in the first quarter of last year, foreign exchange sales were less than forex offered by $285 million by half-year 2012. Half year WDAS forex supply for 2011 was $14.85 billion, as against $10.45 billion in 2012, representing a decrease of 29.70 percent. The last time the foreign reserves rose to almost $40 billion was exactly two years ago.

New Target
The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had said that the government was targeting $50 billion in foreign reserves by the end of the year. At a meeting with the Organised Private Sector in Lagos recently, Okonjo-Iweala said there was the need to build up the reserves to $50 billion before December, adding that this would help the country to stand on its feet in the event of any global economic recession.

Reserves include the excess crude account (ECA) and the $1billion seed capital of the Sovereign Wealth Fund. It emerged at the last meeting of the Federal Account Allocation Committee (FAAC) that the balance in the ECA stood at $7.5 billion. The Finance Ministry has an end-2013 target of $50 billion reserves including an ECA balance of $10 billion. In his reaction to the impressive showing of the revenue stream to Nigeria, Samir Gadio of Standard Bank, London said: “There is no doubt that an oil-producing country like Nigeria should have posted a massive consolidated fiscal surplus amid elevated oil prices, but the continued monetisation of excess crude account proceeds (N810.1billion in Q3:11 alone) prevents any qualitative improvement in this area, particularly given the imbroglio over the effective launch of the Sovereign Wealth Fund.”

Experts, however, expressed the hope that the nation’s fund managers will be able to resist the temptation of frittering the reserves in the same manner the excess crude account was frequently tampered with. The concern is that the continued disbursement of ECA proceeds has left Nigeria virtually without fiscal savings. Had the accumulation of fiscal savings resumed in late 2009-2010 after the global economic crisis, aggregate FX reserves would now be hovering around $60-70 billion.

Sustaining the Tempo
From the organised private sector came the warning that the tempo of the build-up of the external reserves could be sustained if Nigerians are disciplined and are able to control their appetite for imported goods. Speaking with THISDAY last week, former chairman, Nigerian Economic Summit Group, Mazi Sam Ohuambuwa, described the rise in the nation’s external reserves as a welcome development. According to him, by building up the reserves, the Federal Government is consciously building a strong currency, a development he said would further increase the confidence of external investors in Nigerian economy. When the fear of a possible erosion of the reserves was raised, given the fact that similar upward trend was recorded during President Olusegun Obasanjo administration, Ohuambuwa said Nigerians had learnt their lessons. “I believe we are now wiser,” he said, adding that it was the shortage of revenue at the period that forced government to tinker with the foreign reserves and excess crude account.

He said, “If we are able to control our appetite for foreign goods and further build the reserves, then our economy will be better for it.” One of the experts that were fascinated by the rise in external reserves is the former President, Association of National Accountants of Nigeria, Dr. Samuel Nzekwe, who noted that, “What this means for the economy is that our currency will start getting some respect when compared to other currencies world over. It means that Nigeria as a nation now has solid financial backup.
“Creditors will not be able to say no to our requests for imports in terms of credit facilities and so on and so forth, because they know that we have money to pay. That means we have the required purchasing power.

“It is going to give weight and confidence to our currency both internally and externally. The confidence in our naira will be boosted and when you consider all these, you will agree that generally it will have a positive impact on our economy.

Another voice from the organised private sector was that of President, Lagos Chamber of Commerce and Industry, Mr. Goodie Ibru, who noted that the steady increase in reserves would boost the country’s financial image in the international community, adding that investors would have confidence coming to invest in Nigeria. He, however, noted that government should look for ways to consolidate the gains in external reserves by improving the nation’s infrastructure.

He said, “Our reserves are rising and this is good for Nigeria. Investors will be impressed knowing that we can pride ourselves on robust reserves. However, the government should look at how to develop our decaying infrastructure this time.

Ike Abonyi

In a fresh move to reinvigorate the anti-graft war in the country, the Economic and Financial Crimes Commission (EFCC) is beaming its searchlight on the judiciary and is at present closing in on five high court judges.

Inside sources at the EFCC head office in Abuja revealed to THISDAY that the judges believed to have engaged in serious corrupt practices are from federal and state courts. Two of them are said to be state Chief Judges.

They will soon be arrested along with their accomplices. The arrest could be as early as this week, THISDAY learnt.

It was learnt that useful information on the financial dealings of the judges in question have been obtained and would soon be made public.

But the EFCC sources refrained from disclosing the names of the judicial officers for fear that such may undermine ongoing investigation.

THISDAY learnt that the huge in-road believed to have been made to confront corruption in the judiciary has come after a long and thorough investigation in the sector.

Judiciary watchers told THISDAY in Abuja at the weekend that the development if well handled would be major breakthrough in the anti-graft battle because of the strategic place of the sector in the anti-graft crusade in the country.

Since the crusade against corrupt public officers in the country started, the focus has been on the other two arms of government, the executive and legislature.

The third arm of the government, the judiciary, has not been touched as such, although corruption in the sector is believed to have largely contributed to the slow pace of the anti-corruption battle.

Anti-graft bodies in the country like EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have severally accused the judiciary of dragging them back because of delays and often frivolous injunctions engendered in the handling of cases against allegedly corrupt public officers. A frustrated EFCC has canvassed the establishment of a separate court for the trial of corrupt persons but this has not succeeded.

But the judiciary has also accused EFCC and ICPC of doing shoddy job in their investigation before bringing cases to court.


http://www.thisdaylive.com/articles/corruption-efcc-moves-intojudiciary-closes-in-on-5-judges/125100/

THERE is a growing concern that Lagos Area Councils may go into bankruptcy in their

helmsman’s quest to raise about half a billion naira, inspired by an obsession of Mr. Tinubu with unseating the incumbent governor of Ondo State, Dr. Olusegun Mimiko.



The news is coming in the wake of a reported constitution of a committee of strange political bedfellows by the party at the center, the Peoples Democratic Party, to join the scramble for the coveted Alagbaka Government House.

Although Tinubu’s Action Congress of Nigeria and the Peoples Democratic Party spend so much time coming after each other in criticisms, they now seem to have found a common cause in trying to unseat Mimiko.

Sharpedgenews.com’s investigations have also revealed the readiness of some contending political parties in Ondo State governorship contest to adopt a break or burn strategy.

The ruling Peoples Democratic Party, in spite of its poor visibility across the state, according to allegations made available to different sources, has moved in logistics and personnel from outside the state “who would deploy overt and covert strategies to declare victory.”

And the PDP has validated what was initially treated as a mere speculation by naming Vice President Namadi Sambo and former Ekiti State governor, Ayodele Fayose, as campaign co-ordinators in a state where both men are non-indigenes.

The Action Congress of Nigeria, ACN, which has consistently maintained a distant third in respected opinion polls on the Ondo State election, is allegedly relying on “false assurances” from Ogbeni Rauf Aregbesola, who is the governor of Osun State, to ensure that Ondo State burns if it cannot be electorally wrestled from incumbent Governor Olusegun Mimiko.

Both the Peoples Democratic Party and the Action Congress of Nigeria sources deny any plan to visit mayhem on Ondo State, saying people are attracting too much meaning to the “normal political rhetorics that must be expected.”

However, Mimiko’s supporters claim that even if the high-level importation of high profile mercenaries like Sambo and Fayose by the Peoples Democratic Party can be excused, “what about how Aregbesola and Tinubu who are openly encouraging thugs and police to intimidate their Labor Party supporters?”

The directive from the leadership of the Action Congress of Nigeria for local government councils in Lagos State to make available 7 million naira each to prosecute the party’s electoral war in Ondo State is the latest in a series of desperate moves.

The Eko Citizens Forum, an assemblage of Lagos indigenes, raised the alarm on Thursday in a statement signed by its President, Fisayo Frantos, declaring that it made the move to enable the public know how the resources of Lagos is being plundered.

Describing the ACN's ambition to capture Ondo state as an impossible mission, the group alleged that all the 57 local councils in Lagos state were compelled to donate N7m each “to the Operation Capture Ondo State purse, using a camouflage dustbin purchase as a decoy at the end of which about N.5b was realized because some councils considered very buoyant were made to pay more than N7m.

“All the councils were instructed to make the said amount available under the guise of supplying them with dustbins with the Bariga LG boss, Sulaiman Omoyele Hakeem a.k.a Oris as the co-ordinator,” the group said.

Declaring the move as “illegal and a systematic way of robbing Lagosians of their resources,” the group said “we believe the money will eventually end up in some people’s personal account because we all know it is impossible for the Labour Party government to be defeated in Ondo state, so why using decoy to siphon our own money?” the Forum queried.

“Ondo people should not see Lagosians as enemy. The foe here is the leadership of the ACN which we hear has also instructed all other Southwest state’s in its control to make some amount available for the same purpose.

“We are alerting Ondo people to be vigilant and we are still investigating details of our resources that have been channeled to run Osun state because the fact that the ACN leader and its Chairman are from Osun does not mean hard earned money of Lagos tax payers should be used to run the state."

The group said it is criminal and high level deceit for a party that prides itself as democratic and yearning for the betterment of the country to divert money meant for the good of the people of Lagos state to pursue fruitless goal.

"There is no doubt that the councils need dustbin in the face of the decadence in our Urban pride, but why should money collected for the purpose of the goal be diverted to capture another state where its government is reputed to be among the best in the country.Will the people of that state watch a good government slip off them" the assembly asked rhetorically.

The group thus called on "the people of Ondo to resist usurpers under whatever guise. We also call on Lagosians to stand up and challenge those looting you blind.”

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http://www.sharpedgenews.com/index.php/news/top-stories/1679-lagos-councils-forced-to-raise-n5bn-for-tinubus-desperate-bid-to-install-governor-for-ondo

jmaine: Okay ooh!! . . .Mutallab and Dantata . . . . . Always available to hit the jackpot of money milking machines . . . . .

MY BRODA I TIREOO.

Patrick Ugeh





The Managing Director of Sahelian Power SPV Limited, Dr. Jamil Gwamna, has denied the involvement of the Vice-President, Namadi Sambo, in the company.

Sahelian Power SPV is one of the companies bidding for one of the successor companies of Power Holding Company of Nigeria (PHCN), Kano Distribution Company.

Sambo is the Chairman of the National Council on Privatisation (NCP), was allegedly linked to the company.

The NCP supervises Bureau of Public Enterprises (BPE), the organisation charged with the responsibility of privatising public assets from which the Federal Government is divesting.

But in a statement made available to THISDAY, Gwamna described Sahelian Energy as a consortium comprising Incar Power Limited, IPL, promoted by Alhaji Umaru Muttalab, and Dantata Investment and Securities Limited, promoted by Alhaji Aminu Dantata.

Others in the consortium are Sahelian Energy and Integrated Services Limited (SEIS), promoted by Yusuf H. Abubakar, Highland Electricty Limited (HEL), promoted by Alhaji Kashim Bukar Shettima and Kayseri Ve Civari Elektrik T.A.S. (KCETAS), a Turkish electricity generation and distribution company.

“The promoters of these companies are highly responsible northern entrepreneurs,” Gwamna said.

Giving the background of the outfits, he explained that Incar Power Limited was incorporated as a partnership in 2011 in Nigeria to provide services in the energy sector with emphasis on distribution, transmission, generation and sale of electric energy in Nigeria and the West Africa sub-region.

He said Dantata was incorporated in 1975 while SEIS was incorporated in 2008 in Nigeria as an energy company to carry out the business of planning, development and delivery of energy, energy infrastructure, utility provisions (oil, gas and power), integrated and energy management services.

According to the Sahelian Power boss, Highland Electricity Limited was incorporated in 2008 as a special purpose vehicle for power distribution while KCETAS was incorporated in Turkey in 1926 to provide electricity, and that it was into generation, distribution and retail sale of the product.

He said since winners of the bids would soon be announced, it would be unfair for anybody to impute undue advantage to the consortium should it win the Kano Distribution Company, emphasising that Sambo had absolutely nothing to do with it.





http://www.thisdaylive.com/articles/phcn-privatisation-vp-not-part-of-bidding-firm/124932/

“The presence of National Assembly is not sufficient to draw the Senate into the ring. The real and imminent urgency may not have been reached to warrant the intervention of this court. To this extent, the court must exercise its powers with caution as an arm of government. The procedure and guideline provided for in section 143 (1) to (9) are so elaborate and impeachment should not be undertaken so casually so as not to send wrong signals to foreign investors” the court noted.

These sections provide as follows,
143(1) The President or Vice-President may be removed from office in accordance with the provisions of this section.

(2) Whenever a notice of any allegation in writing signed by not less than one-third of the members of the National Assembly:-
(a) is presented to the President of the Senate;
(b) stating that the holder of the office of President or Vice-President is guilty of gross misconduct in the performance of the functions of his office, detailed particulars of which shall be specified,

the President of the Senate shall within seven days of the receipt of the notice cause a copy thereof to be served on the holder of the office and on each member of the National Assembly, and shall also cause any statement made in reply to the allegation by the holder of the office to be served on each member of the National Assembly.

(3) Within fourteen days of the presentation of the notice to the President of the Senate (whether or not any statement was made by the holder of the office in reply to the allegation contained in the notice) each House of the National Assembly shall resolve by motion without any debate whether or not the allegation shall be investigated.

(4) A motion of the National Assembly that the allegation be investigated shall not be declared as having been passed, unless it is supported by the votes of not less than two-thirds majority of all the members of each House of the National Assembly.

(5) Within seven days of the passing of a motion under the foregoing provisions, the Chief Justice of Nigeria shall at the request of the President of the Senate appoint a Panel of seven persons who in his opinion are of unquestionable integrity, not being members of any public service, legislative house or political party, to investigate the allegation as provide in this section.

(6) The holder of an office whose conduct is being investigated under this section shall have the right to defend himself in person and be represented before the Panel by legal practitioners of his own choice.

(7) A Panel appointed under this section shall -
(a) have such powers and exercise its functions in accordance with such procedure as may be prescribed by the National Assembly; and
(b) within three months of its appointment report its findings to each House of the National Assembly.

( Where the Panel reports to each House of the National Assembly that the allegation has not been proved, no further proceedings shall be taken in respect of the matter.

(9) Where the report of the Panel is that the allegation against the holder of the office has been proved, then within fourteen days of the receipt of the report at the House the National Assembly shall consider the report, and if by a resolution of each House of the National Assembly supported by not less than two-thirds majority of all its members, the report of the Panel is adopted, then the holder of the office shall stand removed from office as from the date of the adoption of the report.




SINCE THIS IS WHAT SECTION 143 OF THE CONSTITUTION SAYS ABOUT IMPEACHMENT OF THE PRESIDENT.THE SPEAKER AND HIS GOON SHOULD NO KNOW THEYARE EMBARKING ON A WILD GOOSE CHASE AN EXECISE IN FUTILITY ,THE HOUSE OF REP CAN CONTINUE BARKING LIKE DOGS AS THEY DONT HAVE WHAT IT TAKES TO IMPEACH JONATHAN

omoeso: U need to watch CNN now, most Arab and northan Africa nations are damostrating now setting cars and buildings on fire.
SUDAN- German and American embassies on fire
LEBANON- KFC and other American companies on fire. 20 dead and over 30 injured.
IRAQ- police having tough times with protesters
YEMEN- police using tear gas and rubber bullets on protesters
EGYPT- hundreds wounded as protest continues
LIBYA- more buildings on fire
PAKISTAN- violent on streets burning American flags
TUNISIA- US embassy breached. Building on fire

I just pray say nothing of such happens here in 9ja and our security officers will be ready incase of any uprising...

wOULD all this rioting,killing of innocent people, looting and burning of the property of innocent people not ADD CREDENCE TO THE FILM THEY ARE PROTESTING ABOUT.ARE THESE NOT THINGS THAT THE MOVIE PROTRAYED ABOUT ISLAM ?

Published on September 14,2012
Nnamdi Felix / Abuja

A desperate attempt by the National Chairman of African Liberation Party, ALP, and serial Presidential election contender, Mr. Emmanuel Osita Okereke to stop the House of Representatives from commencing impeachment proceedings against President Goodluck Jonathan before a Federal High Court siting in Abuja collapsed on Friday as the court declines to make the requested order.

The legislators had issued the impeachment threat against the President over the shoddy manner the presidency was handling the implementation of the Appropriation Act of 2012 which implementation level was abysmal as at the time the House went on recess. They threatened to commence impeachment proceedings against Jonathan if he fails to implement the budget 100% by the time the House resumes from its annual vacation by Tuesday, next week.

http://pmnewsnigeria.com/2012/09/14/court-refuses-to-stop-jonathans-impeachment/


In refusing to grant the order to forestall the commencement of impeachment proceedings against President Goodluck Jonathan, the court held that it must be very certain that the impeachment proceedings has begun and on course before it can entertain the suit so as not to interfere with the responsibilities of the Legislative arm of government.

The presiding judge, Justice Gabriel Kolawole further stated that sections 143 (1) of the 1999 constitution requires a joint impeachment resolution of both arms of the National Assembly before the president can be removed and observed that the Senate was not made a party in the suit. He thereafter held that by not joining the Senate as a party to the suit, that the motion ex-parte cannot succeed.

Furthermore, the court observed that it is not be a proper occasion for it to grant ex parte order against the. Speaker and the House of Representatives as its consideration of the reliefs sought by the Mr. Okereke largely benefits the president who is also a defendant in the suit making the situation a contradictory one.

Justice Kolawole averred that section 143 of the nation’s constitution empowers the National Assembly to remove the President from office but that the section makes it mandatory for both chambers of the National Assembly and noted that no single arm of the legislature can remove the President. Both chambers must act together but the Senate was however not a party in the suit.

“The presence of National Assembly is not sufficient to draw the Senate into the ring. The real and imminent urgency may not have been reached to warrant the intervention of this court. To this extent, the court must exercise its powers with caution as an arm of government. The procedure and guideline provided for in section 143 (1) to (9) are so elaborate and impeachment should not be undertaken so casually so as not to send wrong signals to foreign investors” the court noted.

These sections provide as follows,
143(1) The President or Vice-President may be removed from office in accordance with the provisions of this section.

(2) Whenever a notice of any allegation in writing signed by not less than one-third of the members of the National Assembly:-
(a) is presented to the President of the Senate;
(b) stating that the holder of the office of President or Vice-President is guilty of gross misconduct in the performance of the functions of his office, detailed particulars of which shall be specified,

the President of the Senate shall within seven days of the receipt of the notice cause a copy thereof to be served on the holder of the office and on each member of the National Assembly, and shall also cause any statement made in reply to the allegation by the holder of the office to be served on each member of the National Assembly.

(3) Within fourteen days of the presentation of the notice to the President of the Senate (whether or not any statement was made by the holder of the office in reply to the allegation contained in the notice) each House of the National Assembly shall resolve by motion without any debate whether or not the allegation shall be investigated.

(4) A motion of the National Assembly that the allegation be investigated shall not be declared as having been passed, unless it is supported by the votes of not less than two-thirds majority of all the members of each House of the National Assembly.

(5) Within seven days of the passing of a motion under the foregoing provisions, the Chief Justice of Nigeria shall at the request of the President of the Senate appoint a Panel of seven persons who in his opinion are of unquestionable integrity, not being members of any public service, legislative house or political party, to investigate the allegation as provide in this section.

(6) The holder of an office whose conduct is being investigated under this section shall have the right to defend himself in person and be represented before the Panel by legal practitioners of his own choice.

(7) A Panel appointed under this section shall -
(a) have such powers and exercise its functions in accordance with such procedure as may be prescribed by the National Assembly; and
(b) within three months of its appointment report its findings to each House of the National Assembly.

( Where the Panel reports to each House of the National Assembly that the allegation has not been proved, no further proceedings shall be taken in respect of the matter.

(9) Where the report of the Panel is that the allegation against the holder of the office has been proved, then within fourteen days of the receipt of the report at the House the National Assembly shall consider the report, and if by a resolution of each House of the National Assembly supported by not less than two-thirds majority of all its members, the report of the Panel is adopted, then the holder of the office shall stand removed from office as from the date of the adoption of the report.

The court subsequently refused the ex parte application and ordered that the defendants be served with the processes to enable them have their say before the matter can be determined and adjourned indefinitely to enable the Chief Judge re assign the case file to a regular court as the court’s annual vacation ends today.

Mr. Okereke had in the ex parte motion prayed the court to grant an interim order restraining the leadership of the House from proceeding with the impeachment as it was capable of distracting the president from discharging his duties.

Listed as defendants in the suit are the Speaker of the House of Representatives; the House of Representatives’ the National Assembly; the Attorney General of the Federation and Minister for Justice and President Goodluck Jonathan.

In his affidavit in support of the originating summons, Okereke stated that the move to impeach the president from office for non implementation of 100 percent of the 2012 budget in July 2012 is heating up the polity and averred that the September deadline issued by the House for 100 percent implementation of the budget which is three months earlier than the end of 2012 calendar year and six months from the end of the 2012 budget / fiscal year is a disguise to cause political turmoil.

He also stated that he and his party, the African Liberation Party, ALP, still nurse the aspiration to occupy the Presidency and that their aspiration may not be possible in a heated polity.

18.3 Billion Loan Scandal: “I STAND BY MY DECISIONS AS GOVERNOR” Says OYINLOLA TELLS PROBE PANEL

Former Osun state governor, Prince Olagunsoye Oyinlola on Thursday appeared before the commission of Inquiry set up by the Rauf Aregbesola administration to probe contracts and financial transactions of his government declaring that he had no regrets and took full responsibilities for all his actions.
He spoke as the panel commended
the vision of the former governor in establishing the Osun State University and the openness with which the former governor explained his stewardship in seven and a half years to the panel.
The panel chairman, Professor Femi Odekunle speaking in response to Prince Oyinlola’s submission before the panel, said as a university administrator and teacher himself he could testify to the fact that after seeing six campuses of the university which Oyinlola told the panel was built with N4billion, it was well conceived and executed.
Odekunle also commended the former governor for honouring the invitation of the commission, an action he declared marked him out as a gentleman.
Prince Oyinlola had informed the panel that all actions taken by his administration were in the best interest of the state just as he affirmed that he took great care in ensuring that due process was diligently followed by making sure that the state executive council and the House of Assembly approved such.
He explained that the initial resolve of his government was not to take any loan given the experience of the state with a second republic loan taken for the unexecuted Ilesa and Ejigbo water schemes which had remained an albatross on the state but was convinced by the House of Assembly to shift grounds in other to ensure that the 2010 budget succeeded.
“During my budget presentation in November 2009, the House of Assembly advised me against my position of not wanting to take loans to execute capital projects on the ground of budgetary low performance. We were also encouraged to seek alternative sources of funding by an assurance that refund of excess deductions from Osun State allocation by the Federal government which was then put at about N70 billion would be received. It was based upon the above two reasons that we agreed to obtain the loan to finance the priority projects of Government. The conception was therefore that of the people of the State through their representatives in the House of Assembly. The loan was approved by the Executive Council of the State and the members of Osun State House of Assembly.
“When I said the House of Assembly initiated and approved the N18.3billion loan which my government took, I want to make it very clear that the House was made up of 15 PDP members and 11 ACN members. It was a mixed House and there was no division when those actions were taken by the House,” Oyinlola said.
He added that the application for the loan was written by the Ministry of Finance which negotiated the loan on behalf of Government and adding that he believed taking the loan was the best his government could do during that time of global financial meltdown.
“Disbursement of the loan was done through appropriate agencies of government. It was disbursed on projects as approved by the Osun State House of Assembly to be funded from the loan that was procured also with the consent of the House of Assembly. It is necessary to state that the projects under reference were contained in the Appropriation Law for the relevant year.
The total loan approved was N18.38 out of which a sum of N10.1 billion was spent on projects approved by the Osun State house of Assembly. About N1.8 billion out of the disbursed N10 billion was repaid to the bank, leaving a total of about N8.2 billion as net indebtedness of the State Government to the bank as at the time our administration vacated office,” he said.
Prince Oyinlola said the panel should note that his government after seven years took N18.3billion loan while his successor within its first two months in office took N25billion loan from the First Bank declaring that he (Oyinlola) was a major stakeholder in the affairs of Osun state as his own father was one of the four traditional rulers that won independence for Osun division which eventually became Osun state .
He added that the upgrading of nine Government Technical Colleges with the bulk of the loan was his idea based on his experience during a tour of Israel where he discovered that youth unemployment and dearth of skilled craftsmen could be addressed by implementing the concept. He added that the project, if the Rauf Aregbesola administration had not stopped it two months after it took over, would have met the goal of giving unemployed graduates the opportunity to acquire vocational skills from the institutions.
He however stated that he took full responsibility for two projects that could not be completed as conceived by his administration listing the projects as the Free trade Zone and the state Hotel project. He disclosed that his administration committed N1.5billion to the Free Trade Zone project and N430million to the hotel project but lamented that the private investors who were to contribute 70 percent of the total cost did not fulfill their own side of the agreement while efforts “to use the law” to address problems that arose out of the two projects were on when he left office.
On the wisdom in building six stadia across the state, Prince Oyinlola stressed that he was very conversant with the decision of the founding fathers of the state that each of the six zones of the state must develop simultaneously adding that the same idea informed the multi campus structure of UNIOSUN.
Besides, he said the recent woeful performance of the Nigerian contingent to the 2012 Olympics showed that for Nigeria to get it right in sports, it must provide the right facilities that would develop the potential in the youths.