Daybreak, Politics, Entertainment, Sport

Author: Our Correspondent

As Jigawa Health Insurance Scheme Takes Off
By Iyke Obi Durumba
Mallam Fatuhu Ibrahim is a small holder farmer with a fertile plot in Maiadua, Gagarawa LGA of Jigawa state which is part of the state government’s Cluster Farming Initiative. One day his 15yr old son, Khalid, felt a sharp pain in his lower abdomen while working with his father on the farm. By the following morning, he had to be rushed to the hospital where he was diagnosed with a ruptured appendicitis and required urgent surgery.
The cost of the surgery was beyond his normal means as his farm could barely feed his large family. Resorting to native herbs and traditional treatment, his son appeared to get better but sadly passed away.
It is for the prevention of unfortunate cases like Mallam Fatuhu’s son and many other similar cases that Jigawa state recently flagged off the state’s health insurance scheme whose sole objective is to provide universal health coverage for all residents. With the provision of a health insurance scheme, the prospect of achieving universal health coverage in the state has become a reality.
Jigawa is a North Western state whose Human Development Indices are not very attractive especially in the health sector. According to MNCH2, a UK govt funded programme, infant mortality stands at 83 per 1000 live-births and Maternal Mortality Ratio is 1,100 per 100,000 live births.
However, the Gov. Badaru Abubakar led administration has prioritized healthcare delivery in the state by building 83 new Primary Healthcare Centers, four new General Hospitals and two new Specialist Hospitals in the last five years. According to the Governor, paying adequate attention to the physical infrastructure is not enough as affordability of services must also be ensured to enable all Jigawa people have access to quality healthcare. The social health insurance scheme being put in place now is envisioned to provide residents of Jigawa state access to the health services they need without incurring high out-of-pocket payments.
The vision of the state Governor Badaru Abubakar to improve access to quality affordable healthcare received a big boost when the state government launched the State Contributory Health Insurance Scheme for civil servants in Dutse the state capital last week.
The scheme is planned to extend primary and secondary health coverage to people who cannot pay, such as the poor and the unemployed, who will have their contributions subsidized by government at full roll-out.
At the launching on Tuesday, Gov. Badaru Abubakar was officially enrolled and registered in the social health insurance program. The Head of Service was similarly enrolled to kick off the first step in providing accessible healthcare for the people with the enrollment of civil servants. It is estimated that over 70,000 workers (families and dependents) will benefit from health services under this phase of the scheme.
The history of health insurance in Nigeria is rooted in the National Health Insurance Scheme Act of 1999 but it was not until 2005 that the scheme became operational. By 2015, only a disappointing 3% of Nigerians had been enrolled and so, to accelerate the realization of Universal Health Coverage, the 59th Nigeria National Council on Health in 2017 approved states to establish their own health insurance schemes. Following this approval, Jigawa joins other states like neighboring Kano, Lagos, Oyo, Anambra and Akwa Ibom in creating its own health insurance scheme.
Jigawa state government established a health insurance agency called the State Contributory Health Care Management Agency via law No7 of 2019 in Dec 2019 in order to reduce health inequity and improve universal health coverage. The agency is mandated to operate both formal and informal sector health insurance.
To show seriousness and give the scheme the necessary executive support, Gov. Badaru Abubakar released the sum of N100m to the agency as start-up funds within 6months of its existence. This is in addition to providing official accommodation for the agency and the appointment of a management team of six directors and an Executive Secretary.
The agency has so far accredited 160 health facilities to start service delivery in August 2020. Already government workers have started paying monthly premiums for the last 3months in the formal sector of the scheme. Premium payment is according to salary grade and structure.
Under the scheme, there would be a contributory deduction of N4,000 from the salaries of each worker on Grade Level (GL) 14 and above. The state would deduct 3,000 from each worker on GL 10-13; N2,000 from worker on GL 7-9 and 1,000 from worker on GL 1-6.
Dr Mahmud Abdulwahab, Director Programmes, State Contributory Health Care Management Agency, had earlier provided those details in March at a one-day advocacy meeting with labour union leaders drawn from Jigawa Northeast Zone.
The director said the scheme covers a contributor with his or her five dependents to access health care services free on a visit to a health facility. These health care services include both primary and secondary health care services.
Speaking with Daybreak News, Abdulwahab expressed optimism that the scheme will extend to cover other contributors who are not civil servants. “We expect that subsequently we will start operating informal sector health insurance which will cover those people that are self employed,” he said.
“In addition the state government has already started paying to the agency the sum of 75million naira on monthly basis to serve as equity fund. This money will be used to cover for the health services of vulnerable groups that are not either formally or self employed, particularly women and children,” Abdulwahab said.
With a population of nearly 5m people who are predominantly rural-based farmers, the take off of the health insurance scheme will dovetail effectively with the energetic expansion of healthcare facilities to provide citizens like Mallam Fatuhu the opportunity to obtain decent health services when needed. Governor Badaru’s deepest desire of giving the poor and downtrodden a chance at a decent life may have found full expression in the health insurance scheme. Jigawa state has indeed taken a huge leap towards unlocking the wealth in the good health for her people.
August 11, 2020
“We will reclaim Governorship seat in Bauchi” – MMS
Hon. Mansur Manu Soro represents Darazo/Ganjuwa Federal constituency of Bauchi state in the lower chamber of the National Assembly. He was Special Adviser on social interventions to former Governor M.A Abubakar before winning elections to the House of Reps in 2019. The thirty-three year old who is well-known for executing several capital projects from his own pocket has reiterated the National Assembly’s call on the President to sack the Service. He chats with Daybreak Newspapers Deputy Editor Iyke Obi Durumba..
Ques: You’ve been in the House of Reps as a first termer for slightly over one year now, what has been your experience?
MMS: Coming from the executive to serve as a lawmaker is entirely a new experience to me. I find the legislative process in the last one year as very slow. It seems COVID-19 pandemic has successfully hampered our efforts and reduce the productivity of 9th National Assembly.
Ques: In your relatively short time in governance, you’re known for delivering capital projects in your constituency which otherwise the Executive should do.
MMS: Constitutionally, the executive is under obligation to ensure the general welfare of Nigerians but the existing gaps in provision of basic amenities and the passion I have for my people compelled me to sacrifice my personal entitlement as legislator to provide for my constituents. Earlier 2020, the world bank declared that only 25% of population in the North East zone have access to basic amenities.
I have completed the revitalization of 104 hand pump boreholes. Constructed 1-km long reticulation solar powered water system each in Sade, Darazo, Miya, Kafin Madaki and Soro with a fetching point at intervals of every 100metres.
Construction of pediatric hospitals in 4 districts of my constituency: Gabarin, Sade, Miya and Soro have reached different stages of completion. We hope to commission them later this year, Insha Allah and provide ambulances that will connect the hospitals to our 22 wards in Darazo/Ganjuwa Federal constituency.
My objective is to complement the efforts of the executive to reduce to the barest minimum the cases of maternal and child mortality in my constituency. UNICEF indices released in 2018 indicated that 11,455 newborns babies are dying annually in Bauchi state. We’re working to introduce a model that will ensure the effective management of the facilities through a community driven approach based on innovative finance mechanism. We ll work with state government to deploy personnel and where necessary, the community will hire to bridge gap.
We have implemented so many other projects to improve livelihoods of our people particularly women because I owe my allegiance to women of Darazo/Ganjuwa Federal constituency for standing by my candidature.
Next year we will insha Allah move to Education sector to set up science based secondary schools for the gifted in Darazo/Ganjuwa Federal constituency.
Ques: What is your motivation for these?
MMS: Right from secondary school days I have undiluted passion for provision of basic amenities for the use of generality of the people. I love that passionately. If I were to rely on constituencyZIP project, it will take me 22 years to facilitate the construction of school or hospital in all the 22 wards of my constituency– in a situation where I have only 4 years.
I believe you know how the constituency/ZIP projects operate in the National Assembly?
It’s a system where all states are awarded equal allocation irrespective of its size or population. N1.7bn per state for both Senators and House members. The more the number of NASS members the less you get in ZIP allocation. Members from Yobe or Bayelsa has more allocation for instance than members from Kano or Lagos.
So in Bauchi our allocation is N200m and N96m for Senators and House members respectively. Mind you it’s not cash rather to privilege to nominate a project relevant to your constituency which will be domiciled and executed by federal MDA. In the 2020 fiscal year and couple of years before now the sum of N100bn was appropriated however the allocation for principal officers of both chambers is not the same with ordinary members.
There’s difference between budgetary allocation and funds release or execution in Nigeria. Over the last 6 years budget performance hovers around 50-60% so in our case in Bauchi we normally end up with 50% performance which translates to release of N45m for project implementation
Ques: What is your opinion on the insecurity currently ravaging the North West, Southern Kaduna and also the long-running Boko Haram insurgency? Do you think the FG is doing enough to curb it?
MMS: Let me borrow the words of social theorist Max Weber who said that the monopoly of the use of legitimate force in any given territory is the most distinguishing characteristics of a state. Today the government is losing that monopoly to non state actors which is both discouraging and frustrating.
I believe its still not too late for the FG to review its strategies and approach in prosecuting the war against terrorists and other crimes. State Governors in the North have a duty to rise up to this challenge and proffer solution. They have all the resources needed to end banditry and ensure security to lives and property. Bauchi state government ended banditry in my constituency between 2016-2018 using mere Fulani vigilantes. It’s all about commitment of the Governors.
The worsening insecurity levels in the North has a strong correlation with endemic poverty at the grassroots caused by total collapse of local government administration in the country.
Ques: Do you still hold the view that the President should sack the service chiefs?
MMS: I stand by the resolution of both chambers requesting the President to sack the Service Chiefs. They have seemingly overstayed their welcome. The voice of the parliament is the voice of the Republic. Nigerians have spoken through their representatives, the executive should listen to the voice of reason. However the Airforce is doing a wonderful job of bombarding criminals hideouts.
Ques: Your party lost the state governorship, how strong is the APC in Bauchi today?
MMS: With 3 Senators, 8 Rep members, 20 state assembly members I can say without fear of contradiction that APC is the strongest political party in Bauchi State. It’s sad that we lost Governor seat but come 2023 we will insha Allah reclaim it. There’s no doubt that former Speaker Dogara’s return to APC will strengthen the party both at the State and the centre. He’s coming back to our fold with a great deal of experience politically that can add value. We welcome him back to where he rightly belongs.
August 11, 2020
Obaseki, Afrinvest, Primus Bank And The Loot Pyramid.
As elections in Edo State draw closer, it appears Governor Godwin Obaseki will swim in more trouble waters in the weeks and months to come as more breathtaking revelations about his stewardship to the people of the state continue to surface.
Recently, former Governor of Edo State, Adams Oshiomhole, had described Obaseki as a con man. The erstwhile APC national chairman who went on his knees to apologise to Edo people for selling what he described as “a bad product” to them, said he would live to regret his mistakes if he failed to correct them now.
A remorseful Oshiomhole who almost broke into tear, had also told the people how he was manipulated by Obaseki’s mastery in scheming, which eventually earned him access to the state’s treasury.
Obaseki ran a ‘behind the scene’ operation for Oshiomhole during his two terms in office, though as once recounted by Oshiomhole, he (Obaseki) never received any direct remuneration for his service to the goverment in all of these years.
That was a clever plot. Logically, it was Obaseki’s winning point against his estranged boss. It was a ‘Classic’ art of manuevering designed by a genius who knows how to give freely and take back from the people in quantum.
Who in Oshiomhole’s shoes would not have trusted a man who worked closely with him and exhibited saintly attributes with all moral soundness? It only takes a genius to beat someone like Oshiomhole to his game such that favoured him against influencial politicians with former Governor to clinch the party’s ticket. It was strange and voodoo-like.
Oshiomhole was charmed by his would be beneficiary’s hoax and facades, who unknown to all had his eyes on the seat of power to consolidate on what he has taken from the state through the backdoors in the guise of consultancy. Obaseki’s service to the state was more of an investment for future benefits than service to the people as it was made to believe.
Oshiomhole had in one of his public expression of regrets, where he appeared to have been unbind from Obaseki’s charm, said “Obaseki pretended for almost eight years, while he did not believe in what I was doing as the governor”.
Godwin Obaseki’s stance today and the many allegations with evidences told about him have vindicated APC leaders who warned Oshiomhole in 2016 and disapproved of his candidacy.
There is a strong connection between the man Obaseki and strange things as his credentials have proven during his screening by the ruling APC, which of course led to his disqualification by the party over fear of losing the state to the opposition on a platter of gold.
Like some Nigerian leaders, questions about Obaseki remain unanswered. Was his background properly checked before he was given the responsibility to run a state as big and strategic like Edo? These are the untold stories about Obaseki.
Suffice it to say that, while Obaseki was doing what many were made to believe as “community service” to the state, his company, Afrinvest was warming up to feast on our common patrimony to build a business empire from.
With his reelection hope sinking by the day, Edo State purse now serves as his personal purse. In less than four years in the affairs of the state, allegations of billions of dollars against him have become common place in several media spaces.
Even with millions shared among his lerkays to suppress reports about the looting spree ongoing in his goverment, the people’s voice still echoes.
In two separate petitions to ICPC and the Central Bank of Nigeria recently, a group know as Concerned Edo PDP Stakeholders had asked the anti-graft body and the Apex Bank to investigate allegations of corruption against Godwin Obaseki, who they alleged using his office to influence state contracts to his company, Afrivest.
They group had also alleged that Obaseki diverted security votes for the state from 2016 till date in the tune of N7.5 billion into Afrivest Limited bank account.
It was also alleged in the letters that the said security votes of over N7 billion breathing in Afrivest Limited account and other illegally obtained profits, are already signed as start up capital to resuscitate PRIMUS BANK, which Godwin Obaseki, through his proxies is now seeking approval for to operate as a regional bank.
Apart from calling on authorities to investigate the Obaseki’s administration even as the Governor is currently immuned of any form of prosecution as provided by the constitution, the PDP group had called on ICPC to invoke section 19 of the Independent Corrupt Practice and other related offence Commission Act 2000 and immediately swing into investigating Obaseki’s contravention the said section.
The group had wondered how could a man who in 2016, while contesting for governorship, had little personal resources, both as an individual and as the Chairman of Afrinvest Board of Directors, could not raise even N10 million naira in both personal and professional capacity, following years of barely staying above water and was approaching insolvency has suddenly become a billionaire.
The group had also raised eyebrows over a financial boom for Afrinvest Limited since Obaseki became Governor, leading to the firm winning contracts, notably from the Edo State Govenment, and making astounding profits it never posted since its establishment.
Also in the document is how Obaseki abused his office as Governor without the approval of the state assembly single-handedly awarded a N1.8 billion consultation contract on the Water Slorm Project to Afrinvest Limited without justification of the inflated sum and the nature of the contract.
Does this truly contravene Section 19 of the Independent Corrupt Practices and other related offences commission (ICPC), Act 2000? Yes it does.
This is just one among many other contracts awarded to Afrinvest Limited through the influence of Obaseki who continue to use the company as a front and conduit pipe for the diversion of state funds through bogus contracts and budgetary allocations.
There is no way to tell for sure the countless times Obaseki had abuse his oath of office but it could well be that some of the figures of his alleged loot are loot inside a loot inside another loot and everything is just one giant loot pyramid.
Whichever way it falls, Edo people have tolerated one too many big fraud from Obaseki and his co con travelers and it is time to act fast to save Edo State from total bancruptcy.
The people of Edo are calling on President Muhammadu Buhari to save the state from Obaseki and his company. The people have total confidence in him and trust on his anti-graft war.
They are aware that since ascending to the position in 2015, President Buhari’s anti-corruption campaign has targeted widespread graft in Nigeria without sparing any sacred cow.
They hold on the President belief that deeply rooted corruption in Nigeria contributes to income inequality and compromises the legitimacy of the country’s efforts. The people demand justice, holding that it was Buhari’s anti corruption stance that won the hearts of most Nigerians who believe in his anti corruption stance that won him and the APC the 2019 general elections.
August 11, 2020
DMO Tells The World The Facts About Chinese Loans to Nigeria
Against the backdrop of a series of reports credited to several persons on the subject of loans obtained from China, the Debt Management Office (DMO) has considered it necessary to provide substantial details, encouraging the public to be so guided by the facts there highlighted.
On how much loan Nigeria has taken from China, Ms. Patience Oniha, Director-General (DG) of DMO, says as at March 31, 2020, the total borrowing by Nigeria from China was USD3.121 billion (N1,126.68 billion at USD/N361). This amount, according to her, represents only 3.94 percent of Nigeria’s total public debt of USD79.303 billion (N28,628.49 billion at USD/N361). Similarly, in terms of external sources of funds, loans from China accounted for 11.28 percent of the external debt stock of USD27.67 billion at the same date. These data, show that China is not a major source of funding for the Nigerian government.
Shedding some light on the terms of the loans from China, she explains: “The total borrowing from China of USD3.121 billion as at March 31, 2020, are concessional loans with interest rates of 2.50 percent p.a., tenor of twenty (20) years and grace period (moratorium) of seven years. The terms and other details of the loan are available at www.dmo.gov.ng.”
“These terms are compliant with the provisions of section 41 (1a) of the Fiscal Responsibility Act, 2007. In addition, the low interest rate reduces the interest cost to government while the long tenor enables the repayment of the principal sum of the loans over many years. These two benefits, make the provisions for debt service in the annual budget lower than they would otherwise have been, if the loans were on commercial terms,” she states.
Speaking on what were the loans used for, the DG says the USD3.121 billion loans are project-tied loans. The projects, 11 in number as at March 31, 2020, include: Nigerian railway modernisation project (Idu-Kaduna section), Abuja light rail project, Nigerian four airport terminals expansion project (Abuja, Kano, Lagos and Port Harcourt), Nigerian railway modernisation project (Lagos-Ibadan section) and rehabilitation and upgrading of Abuja – Keffi- Makurdi road project, flagging a full list of the projects on www.dmo.gov.ng.
The impact of the loans, in her words, “is not only evident but visible. For instance, the Idu – Kaduna rail line has become a major source of transportation between Abuja and Kaduna. Also, the new international airport in Abuja, has improved air transportation for the populace, while the Lagos – Ibadan rail line when completed, will ease traffic on the busy Lagos -Ibadan expressway.”
In her opinion, the projects also have the added benefits of job creation, not only by themselves but through direct and indirect service providers, a number of which are small and medium enterprises (SMEs).
Her position corroborates the widely accepted view that investment in infrastructure is one of the most effective tools for countries to achieve economic growth and development. Using loans from China to finance infrastructure is thus in alignment with this position.
On the process by which the loans were obtained, Ms. Oniha further states: “The principal process and requirements for borrowing by the government are expressly stated in the DMO Establishment (ETC) Act, 2003 (DMO Act) and the Fiscal Responsibility Act (FRA), 2007. Section 21 (1) of the DMO Act, ‘No external loan shall be approved or obtained by the minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution’ and section 41 (1a) of the FRA, ‘Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low interest rate and with a reasonable long amortisation period subject to the approval of the appropriate legislative body where necessary’, are instructive in this regard.
For detailed information on the borrowing process and required approvals she charges the public to go to “external and domestic borrowing guidelines for federal government, state government and the Federal Capital Territory (FCT) and their agencies”.
Stating the connection among the ministry and the agencies involved in the processes of securing loans, Oniha makes it clear that the Federal Ministry of Finance, Budget and National Planning works with the ministries, departments and agencies (MDAs) under whose portfolio a proposed loan falls and also with the DMO. “Thereafter, the approval of the federal executive council (FEC) is sought. It is only after the approval by FEC that His Excellency requests for the approval of the National Assembly (NASS) as required by section 41 of the FRA, 2007. More importantly, it is only after the approval of NASS that the loans are taken and Nigeria begins to drawdown on the loans,” she also states. In summary, borrowing is a joint activity between the executive (FEC) and the legislative (NASS) arms of government.
The rigor involved in the loan documentation could not miss her explanations; the loan agreements, according to her, “are reviewed by legal officers of the Federal Ministry of Justice and the legal opinion of the Honourable Attorney-General of the Federation (AGF) and Minister of Justice is obtained before any external loan agreement is signed.”
On whether China can take possession of the projects financed by them if Nigeria defaults in the servicing of the loan? Oniha also explains: “Firstly, Nigeria explicitly provides for debt service on its external and domestic debt in its annual budgets. In effect, this means that debt service is recognised and payment is planned for. In addition, a number of the projects being (and to be) financed by the Loans are either revenue generating or have the potential to generate revenue.
It would be recalled that Mrs. (Dr.) Zainab Ahmed the Honourable Minister of Finance, Budget and National Planning, had earlier in the year reaffirmed her position that Nigeria does not have a debt problem but the challenge of under-performing revenues, which makes debt service obligation a struggle for the country. Then, before the outbreak of globally threatening coronavirus (COVID19), she had insisted that at about 19 percent of its gross domestic product (GDP), Nigeria has no debt crisis, but that of revenue.
However, Mrs. Ahmed did acknowledge that there is a problem. According to her, what Nigeria has is a revenue challenge. She also noted that since this problem was identified, the President Buhari-led government has been working hard to solve it by looking at various means to boost revenue. “Currently, Nigeria’s debt is at N25 trillion; that is about $83 billion. And at $83 billion, we are just at 18.99 percent…So, 19 percent debt to GDP. I hear people say Nigeria has a debt problem. We do not have a debt problem. What we have is a revenue challenge and the whole of this government is currently working on how to enhance our revenues, to ensure that we meet our obligation to service government as well as to service debt.”
In recent months, global crude oil prices have plummeted due to an outbreak of the coronavirus across almost all nations of the world. Not long ago, Nigeria’s government revised the 2020 budget oil benchmark from $57 per barrel to $28 while production output was also revised from approximately 2.1 million barrels to 1.7 million per day.
There were key highlights released at the webinar conference by Ahmed which includes plans to defer debt service obligations to 2021 and beyond until macro conditions improve. Shedding further light, the minister had stated, “it is not debt forgiveness; it is just rescheduling of our obligations.”
August 6, 2020
Group calls on Lalong to Resign
By Ugar Ukandi Odey, Jos
A non-governmental organization, Global Centre for Media and Human Empowerment, has called on the Plateau State governor to resign his position as the chairman of the Northern Governors’ Forum with immediate effect.
Speaking during a World Press Conference on the State of the Nation, acting Director General of the organization, Charles Ejoh, said the leadership of the Forum under Governor Simon Lalong has been ” insensitive and lacklustre”.
According to the NGO, the “Northern Governors’ Forum is a betrayal of the trust of the people which is sending a wrong signal to other regions of its inability to secure it’s people”.
The group decried the lame and non-commital attitude of the Forum especially towards the “on-going genocide in Southern Kaduna, and the killing of innocent citizens by armed bandits in other parts of the North”.
Thus, the group said, ” we urge the chairman of the NGF, Barrister Simon Lalong to resign his appointment owing to his poor leadership of the Forum, especially as his own state, Plateau, has also suffered poor governance”.
Ejoh also noted that “the state of insecurity in Nigeria which is orchestrated mainly by killer herdsmen and bandits that are wreaking havoc all over the country is worrisome and problematic”, and accordingly called for the categorization of killer herdsmen and bandits as terrorists.
Ejoh also said that “Nigeria under President Muhammadu Buhari is on the brink of political, economic, and social suicide”.
August 6, 2020
Diplomatic immunity not same as commercial immunity say Malami, Ameachi
By Joyce Babayeju
Minister of Justice and Attorney General of the Federation, Abubakar Malami today joined Minister of Transportation, Rt Hon. Chibuike Rotimi Amaechi to set the records straight on Nigeria’s sovereignty not being at risk in the country’s loan agreements with China.
There is a difference between international diplomatic immunity ‘which has to do with a nation’s sovereignty, independent existence’ and commercial immunity which has to do with a commitment to ensure repayment of loans’, Malami explained while answering questions alongside Amaechi on a TV programme, Tuesday.
He said the misconception is that the National Assembly is looking at the diplomatic immunity as against the commercial immunity of a country when it has to do with loans, adding that there is no concession whatsoever made as it concerns Nigeria’s diplomatic immunity.
“If you talk of immunity within the context of diplomatic immunity which has the implication of the independence of a state and its institutions in its own right, there is no concession whatsoever made by Nigeria as it relates to diplomatic immunity that has to do with its independent existence as a nation, neither was any concession made as related to institutional diplomatic immunity of the Nigerian institutions.
“But when you talk of immunity within the context of commercial sense, that is where I think we need to clarify issues with particular reference to the loans and commercial transactions among nations.
“Concessions relating to immunity for the purpose of provision of commercial guarantee are a normal, traditional ritual. Nations enter into respective interstate agreements and in the course of so doing, surrendering their jurisdictional immunity.
It is on account of that for example that you see Nigeria signing an agreement with other institutions or nations and agreeing to a choice of territorial jurisdiction for the purpose of determining disputes when they arise.
So that is how eventually you see Nigeria submitting to jurisdiction for determination of a trade dispute in UK, in Paris and in other international fora or jurisdiction even when Nigeria as a nation has diplomatic immunity.
“And now that brings you to commercial immunity. The context and the implication of a commercial immunity or sobriety.
It’s indeed embedded in an appreciation that country A requests for a loan facility from country B and then country B is entitled as a matter of right to extract a commitment, an understanding that at the end of the day, the loan advance will eventually be paid. So it is indeed a concession and sobriety, giving an undertaking, providing a guarantee for repayment of the facility when the need arises.
“So commercial immunity is in essence a mere guarantee that allows an advancing state an opportunity, right and power to claim back the financial advances made to a party state and that in its own right is indeed to an asset for the purpose of repayment of the loan.
It is in no way extended to perhaps concession to diplomatic immunity by which you now surrender the rights, privileges and independence of a nation state. But it is a commercial term that is restrictive, exclusive to an asset, a commercial asset for that matter in the event of default,” Malami said.
The AGF added that the clause is a mere guarantee, a commitment that allows an advancing state (the lender) the powers to claim back an asset for the purpose of repayment of a loan and is in no way connected to the sovereignty of a country.
“The bottom line is to appreciate the difference between International diplomatic immunity which in its essence and right is an immunity relating to the independent existence of a state, and a commercial immunity which in essence is a commitment that you are now conceding that in the event of default of payment of an advanced amount of money, you will have the right to now attach the commercial asset of a borrowing state for the purpose of satisfaction. So that is where I think the misconception set in. Misconception to the effect that the National Assembly is in essence looking at the international diplomatic immunity as against commercial immunity which in its own right is operated only to guarantee the repayment of the advanced loan,” he stated.
On his part, Minister of Transportation, Chibuike Amaechi again dispelled the notion that Nigeria’s sovereignty has been signed off to China in obtaining the loans.
He said, “Nobody has signed out anything. A sovereign nation is a sovereign nation, nobody can recolonise us. We must learn to pay our debts and we are paying, and once you are paying, nobody will come and take any of your assets.
Amaechi said the previous administration cannot even be blamed for the loan or clause in the agreement because it is a standard clause.
“We will not blame President Goodluck Jonathan’s government for taking the loan, because like I said, it is a standard clause in every loan agreement. That clause enables the lending country to go to arbitration. It creates an avenue for them to be able to retrieve their funds in the case of a default.
If therefore there’s an asset that has been mortgaged, they must be able to get to that asset. If you don’t waive that immunity, they cannot. It’s a standard clause in every international loan agreement.
“If the National Assembly says we have signed out the sovereignty of our country, so why did they approve? Didn’t they see it before approving?”
August 4, 2020
China scores milestone with launch of BeiDou Global Satellite Navigation System.
By Dr. Austin Maho
In a major landmark on June 23, China successfully launched from the Xichang Satellite Launch Center in Sichuan Province, its latest satellite of the Beidou Global Satellite Navigation System.
By this feat China has significantly boosted it geopolitical clout as the system is a rival to the United States owned and controlled Global Positioning System (GPS)
The launch represents the final step in a series of satellite launches conducted by China throughout the early months of 2020
The final launch on June 23 successfully delivered into orbit the 55th and final satellite of the Beidou third-generation constellation thereby completing the network
Information from Chinese media shows that the launch was “a complete success,” and described by Xinhua news agency shortly after the launch as “a milestone in the nation’s space endeavor”
Chinese President Xi Jinping, himself was on hand to officially commissioned the system at a ceremony at the Great Hall of the People in Beijing, to underscore the importance of the launch.
President Xi declared during the launch that the 55th and final geostationary satellite in was operating successfully having completed all tests.
The BeiDou satellite system started providing navigation services in 2018. According to information from the China Satellite Navigation Office, the system consists of: 3 satellites in geostationary orbit (GEO); 24 satellites in middle earth orbit (MEO); and 3 satellites in inclined geosynchronous orbit (IGSO).
The system offers positioning accuracy within 10 meters horizontal and 10 meters vertical (5 meters in the Asia-Pacific Region); a velocity measurement accuracy within 0.2 meters per second; and a timing accuracy of 20 nanoseconds.
The completion of the third-generation BeiDou system is a development with significant implications for Chinese military capabilities and also offers immense commercial possibilities especially to countries within China’s Belt and Road Initiative.
All Belt and Road countries are expected to benefit form the BeiDou Navigation Satellite System as China is making the system free to member countries. Already there is a BeiDou Navigation System Centre in the North African country of Tunisia. The centre was established in 2018 in Tunis as a Centre of excellence in Africa.
The centre is designed to serve as the gateway for Africa and Arab countries and to further space cooperation between Africa, the Middle East and China.
The system would further aid, land surveying, environmental monitoring, precision agriculture, disaster reduction, and maritime transportation. The siting of the African and Arab Centre of Baidou is a great boost to African countries and an important step in deepening mutually beneficial China Africa cooperation
BeiDou has similar capabilities like the U.S. Global Positioning System (GPS) and the Russian GLONASS network, BeiDou apart from having security applications is a civilian-led program intended for commercial and scientific purpose.
Accorting to analysts, a major advantage of the system over the US GPS system is that as well as being a navigation aid with an extremely high degree of accuracy, the system also offers short message communication of up to 1,200 Chinese characters and the ability to transmit images.
The implication is that, BeiDou can effectively, compete against US GPS, Russia’s GLONASS and the European Union’s Galileo networks.
BeiDou is also a major boost to China’s security as it does not have to rely on US GPS for guiding its missiles, with rising tensions between both countries.
China can easily counter a US intervention in a potential conflict if access to US controlled GPS is denied.
The BeiDou system would also give a boost to China’s economic and political leverage in the years ahead as all countries within the Belt and Road Initiative who would be providdd free access to the network
China have over the years developed its space cabailities in spite of limited cooperation with other countries, which included the construction of a space station, exploration on the surface of the moon among others.
August 3, 2020
Shoprite begins process to leave Nigeria
After series of loses occasioned by policy inconsistency, exchange rate volatility, double taxation among others, Shoprite, Africa’s largest food retailer, is planning to leave the Nigerian market.
In a trading update filed at the Johannesburg Stock Exchange (JSE) today, the retail giant said it was planning to discontinue its operations in Nigeria.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” the update read.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.” the report said
Shoprite launched in Nigeria nearly 15 years ago, opening its first store in Lagos in December 2005. It currently has several outlets across the country
August 3, 2020
Hadiza Bala-Usman and the Nigerian Calamity
By Yemi Adebowale
Hadiza Bala-Usman assumed office in 2015 as the Managing Director of the Nigerian Ports Authority (NPA) with so much enthusiasm. She came with a reform agenda, largely, to block leakages of revenue and to stifle
companies/contractors taking advantage of the NPA to line their pockets with money due to the federal government. Hadiza hit the ground running, tackling the big boys milking the country at the ports. It was as if for once,
all revenues due to government at the ports would be realised and those exploiting the system would become history. But five years down the line, most of the steps taken by this young woman to block leakages have been successfully reversed by the powers that be in Abuja.
Hadiza is obviously tired, but still hanging on for God knows what. Her brawls with our system present some of the contradictions that have kept our country paralysed. They exemplify the tragedy of the Nigerian nation.
Let’s look at the Secure Anchorage Area, created on the Nigerian high sea by a Nigerian private company since 2014 and provides security at a high cost in USD to vessels calling at the Lagos ports. Normally, the business of protecting ships on the sea and our territorial waters is largely that of the Nigerian Navy. This is backed by our laws. Over the years, the NPA assists the Navy with equipment to carry out this task.
Unfortunately, the leadership of the Navy provides the services to the Hosa Wells Okunbo-led firm in charge of the so-called Secure Anchorage Area exploiting foreign ships heading to Lagos ports. Vessels purchased by the NPA for the Navy to secure our waterways are used to service the secure anchorage.
The SAA managers tell ship owners that they run the risk of being attacked by pirates if they don’t use the secure anchorage. Nigerian consumers are paying heavily for this. How? The cost of shipping goods to Nigeria increases with this extra security bill for ships, which is invariably passed on to the final consumers – Nigerians.
Hadiza moved against the cartel, declared the operation of the secure anchorage firm illegal and pressured the Navy to assume its responsibilities. Unfortunately, nothing happened thereafter. The Navy snubbed her and refused to kick out Hosa Wells Okunbo, while the powers that be in Abuja refused to back Hadiza. Of course, one powerful cabal is running the show at the secure anchorage. Hosa Wells Okunbo is a key member of the ruling APC. He dines with any government in power.
His conspirators, the Nigerian Navy leadership inclusive, are Nigerians above the laws of our land. This is why a private company can slice out a portion of our territorial waters and name it, “Secure Anchorage Area”, then, charge foreign vessels in USD for protection. It can only happen in Nigeria.
The big men in Abuja are not concerned about Nigeria’s security and the rising cost of shipping goods to Nigeria. For obvious reasons, those with statutory responsibility for the security of the country’s waterways – Nigerian Maritime Administration and Safety Agency (NIMASA), Marine Police, and the Nigerian Navy – are unperturbed by the activities of the secure anchorage firm.
Early this year, a frustrated NPA wrote to all Mariners in the Lagos Pilotage Area, warning against patronising the Hosa Wells Okunbo’s SAA. It states: “NPA is ensuring a safe NPA Lagos Anchorage (NPA LA) in the Lagos Pilotage District (LPD).
The Secured Anchorage Area (SAA) whose Centre Point Coordinates 06° 17’30N/003° 12’00E and radius of 2.5NM is discontinued with immediate effect. NPA Lagos Anchorage (NPA LA) is now the only designated anchorage in the Lagos Pilotage District (LPD). Owners, Agents and charterers should ensure that the contents of the Lagos Pilotage District notices to Mariners are made known to their Masters and persons in-charge of their vessels and marine operations whilst within the jurisdiction of this Pilotage District.”
It is still business as usual at the SAA. As at press time, Hosa Wells Okunbo and the other schemers were still smiling to the banks with their US Dollars from the secure anchorage, while Nigerians are forced to pay more for goods shipped into the country. Vessels pay $2,500 for the first day at the anchorage and $1,500 for following days. Some stay as much as 30 days before exiting the anchorage. The talk about war against corruption does not apply here. What a country!
Hadiza’s NPA also moved to ensure that the federal government gets full value for its land at Tarkwa Bay, Lagos, by sanctioning Amy Jadesimi’s Lagos Deep Offshore Logistics Base (LADOL) for allegedly violating the terms of the land leased to it in the area. LADOL is profiting at the expense of the federal government by sub-leasing 11.2 hectares of the total 121 hectares leased to it at huge amount without recourse to NPA. The firm is believed to have collected $45 million from Samsung Heavy Industries Nigeria Limited (SHIN) for the sub-leased land for which it paid $524,105 to the NPA.
The land lease was revoked by Hadiza and the firm was granted a fresh lease under new terms, excluding the 11.2 hectares that constitute the premises of the fabrication and integration yard of SHIN. The 11.2 hectares was then leased to SHIN at $219,700 annually. The powerful LADOL mounted pressure on the big boys in Abuja and Hadiza was told to step back. So, LADOL retains its deal with SHIN, and it is still beaming to the bank at the expense of Nigeria.
What about the Calabar Channel dredging contract scam? NPA paid $15 million to a company called Niger Global Ltd for the dredging of the Calabar Channel. Hadiza came in and terminated the contract for non-compliance with due process and requested for a refund of $15 million payment made to the company for lack of evidence of dredging claimed. The firm is yet to make the refund and the promoters are walking free.
The termination of BUA Terminal lease agreement in Port Harcourt, over non-adherence to development plan, has also been tactically reversed. NPA moved against the terminal over health and safety issues. The owner of BUA pressed the Abuja button and Hadiza was asked to step back.
So, what happened to Hadiza and her reforms at NPA? What happened to all her moves to ensure that the federal government gets good returns from its ports and surrounding land? The NPA boss was simply swallowed by the big men in Abuja and some chieftains of the ruling All Progressives Congress.
Hadiza was told to keep off Secure Anchorage, OMSL Limited, LADOL, Niger Global Ltd, BUA Terminal and the rest of them. At the NPA, the hypes about accountability and transparency by the Buhari government have been discarded. This is the tragedy of the Nigerian nation I have been talking about. For Hadiza, I am shocked that she is still parading herself as the Managing Director of the NPA. She ought to have resigned to make a statement. This is the only way we can build a new Nigeria.
August 1, 2020
Chinese loans offer best terms says Ameachi
Transport minister insists Nigerian has capacity to pay back Loan in 20 years at 2.8% interest
Minister of Transportation, Rt. Hon.Chibuike Rotimi Amaechi has reiterated that the Nigerian government has the capability to pay back the loans collected for the construction of rail projects within the stipulated period of twenty years, while noting that Chinese loans offers the best terms and conditions.
Amaechi stated this when he appeared on a live television programme (Democracy Today) aired on AIT in Abuja, Friday.
He said China was the only country given out loans with a low interest rate of 2.8 percent as no country in the world would give out a loan without a guarantee to pay back such loans.
“The trade agreement between Nigeria and China: The first thing is that the ministry of transport doesn’t take loan, everything about loan is directed to the ministry of finance, so I couldn’t have signed any loan because I don’t take loan. What I signed is what is called commercial contract, which is contract between the federal government and CCECC as a contractor, the contract between Nigeria and China is usually signed by the ministry of finance.
“Whether is the ministry of finance that signed it or the ministry of transportation, the issue is that nobody will give you loan free of charge , there must be an agreement and such agreement must contain some terms, that doesn’t mean that you are signing away the sovereignty of the country, no country will sign out its sovereignty.
“What clause 8 does is to say to you, I expect you to pay according to those terms we have agreed, if you don’t pay, don’t throw your immunity on me when I come to collect back the guarantee that was put forward, that is all.
“We are paying the loans. In the same National Assembly sitting, they were told that the 500million dollars loan, we have paid 96 million dollars already, Nigeria is already paying and the 500 million dollars was not taking by us, it was taken by President Goodluck Jonathan in his term and that clause was there.
“Nigeria has the capacity to pay back for the period of 20 years at 2.8 percent, which country will give you that loan? secondly , these loans are not giving to us, they are paid directly to the contractors, once they sign that the job has been done , they pay the contractors and that has never happened before and this project are in place, are they trying to rubbish the fact that there is a railway from Abuja-Kaduna?
“There is no loan in Nigeria either internal or external that is not approved by the National Assembly, none. Chinese government will not even give you a loan without an approval by the National Assembly because if they give you a loan without the approval from NASS that is no loan,” he explained.
Reacting to fears by Nigerians that the country is being sold out to China because of the loans, Amaechi said ” when we stop collecting the loans, then we stop developing because there was no money by the time we came into government, by the time we came the money has been blown away”, he said.
Amaechi further said that the sovereign guarantee and sovereign immunity clause raised by the National Assembly was just a term used to ensure that loans collected were paid back and in the case of a default only the assets constructed with such a loan would be taken back.
According to him, even commercial banks would not give anybody a loan without an asset that can be used to pay back the loan collected, same with the Chinese loan or any other loan in the world.
Hear him, “What you do is you give a sovereign guarantee and that guarantee is the immunity clause they are talking about. When we say I give you a sovereign guarantee and we get immunity clause, the immunity clause is that if tomorrow am not able to pay you and you come to collect the items that we have agreed upon, that these are items that am putting down as guarantee, I can waive my immunity and say no you can’t touch it am sovereign country.
” So, they are saying if you are not able to pay, don’t stop us from taking back those items that will make us recover our funds, so is China our father that will give us money for free? It is a standard clause in every agreement whether is America we signed it with, whether is Britain, any country would want to know that they can recover their money.
“Anybody that is saying he doesn’t know what a sovereign guarantee or immunity is, too bad for the person, because it simply means in trade that I am not giving you this loan free of charge, just like you go to the bank to collect a loan, the moment you don’t pay they go after your assets you put down, that is all about the clause, the Chinese can never come and take over Aso rock and become President or Minister.
” And if the assets you put down become depreciated then you negotiate which assets they can go after. Chinese will never take over what was not constructed with the loan.”
Amaechi said it would be unconstitutional to take a loan not approved by the National Assembly, but for the issue of confidentiality in government he would have published the clauses generating the dusts.
“The National Assembly are aware of all these loans, we can’t take loan without the National Assembly, so ask why they are investigating? The Chinese is just asking us to show them the evidence that we will pay back which is the immunity clause. If we don’t pay, they can take back their assets,” he noted.
Speaking about the Zambia experience, where the country could not meet up with its loan agreement, the minister said that the Chinese government will never take over infrastructure that was not constructed from the money taken.
He also acknowledged that the finance ministry in a payment plan had started paying back some of the loans collected.
“The payment plan is the responsibility of the ministry of finance, ours is to implement the contract. They are meeting the requirements, at any point in time that we need to pay, we’ll pay, adding, “1.6 billion dollars was taken to fix Lagos to Ibadan, we are asking for 5.3 billion dollars to fix from Ibadan to Kano, 3.2 billion dollars to fix Port Harcourt to Maiduguri, then Lagos to Calabar which is about 11.1billion dollars, if those things were done when we had money, will we be here today? The answer is no.”
Amaechi who also called on the National Assembly and Nigerians to appreciate government effort in providing infrastructure said the Itakpe /Warri rail project in the South South which was abandoned for thirty four years by successive governments was fully rehabilitated by the present administration without seeking for loan.
August 1, 2020