38
Tuesday 03 December 2019
BUSINESS DAY
news IGP, not PSC, has power to recruit police personnel – Court …dismisses suit against IGP FELIX OMOHOMHION, Abuja
J
L-R: Mohammadu Adamu, inspector general of police; Abba Kyari, chief of staff to the president; Babatunde Fashola, minister of works and housing, and Mele Kyari, group managing director, Nigerian National Petroleum Corporation (NNPC), at a stakeholders meeting on petroleum products distribution at Presidential Villa in Abuja, yesterday. NAN
Crude theft persists despite multimillion-dollar surveillance contracts DIPO OLADEHINDE
D
espite multimillion dollar pipeline surveillance contracts the Nigerian National Petroleum Corporation (NNPC) awarded to private security companies for the protection of major pipelines across the country, Africa’s biggest oil-producing country is yet to get a grip on oil thieves who brought its oil industry to its knees a few years ago. These pipeline surveillance contracts are awarded with surveillance contractors ostensibly tasked with monitoring sections of oil pipelines, identifying any breaks and protecting them from vandalism. One of such contracts is the popular contract between NNPC and Ocean Marine Solutions (OMS) for the protection of the strategic 87-kilo-
National Economic Council on Crude Oil Theft, Prevention and Control, earlier in September disclosed that 22 million barrels of crude was stolen in the first half of 2019. In July alone, NNPC said Nigeria lost a total of 1.2 million barrels to a combination of crude oil theft, pipeline vandalism and other petroleum wreckages while oil and gas pipeline vandalism rose by 77 percent in June this year with as much as 106 pipeline points breached as against the 60 points vandalised the preceding month. Also, the country’s biggest onshore operator, Shell, which has a network of approximately 4,000 kilometres of oil and gas pipelines and flow lines, said crude oil theft experienced on its pipeline network resulted in a loss of around 11,000 barrels of oil a day in 2018, which was more
metre Trans Forcados Pipeline (TFP) valued at about $18.4 million which sparked huge controversy last year. Some stakeholders claim there are subsisting N9.3 billion pipeline security contracts that the NNPC has with various companies. In justifying these awards, Ndu Ughamadu, NNPC’s group general manager, public affairs division, claimed the corporation lost over 11 million barrels of crude oil, which on face value equates over $800m in lost revenue, due to incessant breaches on the TFP in 2018. But despite these contracts, oil facilities in Nigeria still frequently come under attack from militant groups ranging from small-scale pilfering to industrial-scale theft. Godwin Obaseki, Edo State governor and chairman of the ad-hoc committee of the
than approximately 9,000 barrels a day in 2017. Another cause of worry for stakeholders is that like most of NNPC’s operations, the award of these surveillance contracts has also been an opaque affair. The details of pipeline surveillance contracts are rarely made public, purportedly for security reasons, with government officials frequently citing such concerns to justify withholding information about schemes involving security sector corruption. Also, the security-related nature of these contracts exempts them from competition, transparency, and oversight provisions within the Public Procurement Act of 2007, making them even more prone to corruption and political manipulation than other government contracts. “Pipeline surveillance
ustice Inyang Ekwo of a Federal High Court, Abuja on Monday dismissed the suit brought by the Police Service Commission (PSC) challenging the power of the Inspector General of Police (IGP) to recruit personnel into the force. In a judgment, Justice Ekwo said it was the Nigerian Police Council under the supervision of the IGP that has the statutory power to recruit into the force. The Police Service Commission had accused the IGP of usurpation of power over the recruitment. The PSC filed a suit to challenge the IGP, alleging it was constitutionally empowered to carry out the recruitment exercise. In the motion on notice filed on Sept. 24, with suit number FHC/ABJ/ CS/1124/2019, the commission prayed the court for an order of interlocutory injunction restraining the defendants from “appointing, recruiting or attempting to appoint or recruit by any means whatsoever any person into any office by the NPF pending the hearing and determination of the substantive suit”.
Gbemi Faminu
N
NASS to summon SGF, AGF, finance minister over N400bn pension liabilities ...as unremitted accrued rights hit 12-month high
oint Committees for Establishment and Public Service of the Senate and House of Representative Committee on Pensions have vowed to summon the Secretary to the Government of the Federation, Accountant General of the Federation and Minister of Finance over pension liabilities put at over N400 billion said to be crippling Nigeria’s Contributory Pension Scheme (CPS). The le gislators expressed concern over inability of retirees to access their pensions over nonpayment of accrued rights, non-regular remittance of monthly pensions, and non-funding of Pension Protection Fund by government, saying this could not be taken for granted.
Federal Government workers who retired since December 2018 to date are yet to access their pensions. This follows the non-payment of their accrued rights from the old Defined Benefits Scheme, making it impossible for the Pensions Fund Administrators (PFAs) managing the CPS to commence payment of their pensions. Ibrahim Shekarau, chairman, Senate Committee on Establishment and Public Service, and his counterpart, Hassan Rurum, chairman, House Committee on Pension Matters, made the commitment on Monday at a threeday retreat organised for the lawmakers by the Pension Fund Operators Association of Nigeria (PenOp) taking place in Uyo, Akwa Ibom State.
J
www.businessday.ng
A c c o r d i n g t o S h e karau, pension payment at the Federal or State level should be treated as a first line charge, and any government that does not take this as a priority does not deserve to be there. Shekarau, it would be recalled, established the CPS in Kano State, when he was the governor, and accumulated N9 billion in pension trust fund at the end of his eight years tenure. “We have realised this. The Pension Commission has brought this to our knowledge and my Committee has written a letter to the Senate President and he is concerned, and I believe my counterparts at the House of Representative will also do the same. “I am sure and to be
https://www.facebook.com/businessdayng
Continues on page 39
Foreign import VAT sees biggest slump in 5 years amid border closure
ot only has the move of the Federal Government to close the land border, coupled with its FX restriction on some products, Continues on page 39 resulted in a rise in commodities prices, it has also caused a surge in inflation rate at 11.61 percent as well as further shrink in consumer wallets which reduced trading activities in the economy. Potential fair to Mr President, he is revenue from taxes on imnot aware of this, so we ported goods also plunged. The non-import foreign will engage the executive to understand what the VAT for the third quarter of problem is and find a last- 2019 dropped by 34 percent to N63 billion from the N94 ing solution to it. “The president may not billion recorded in the second know about this because as quarter of the year. This is the chief executive he has also the lowest third-quarter one million and one issues remittance in five years. This was seen in the sectoral and cannot be bothering himself about salaries and VAT report released by the pensions. When salary is National Bureau of Statistics paid, when salary is not (NBS). The report also showed paid, unless is brought to that general VAT remittance for the quarter under review his attention. “We want to pursue this, dropped by 11 percent to N275 and actually if this is the billion, which is also the lowest only thing the 9th National recorded in five years. Trailing closely on the Assembly will succeed in achieving we would have VAT remittance decline was done a lot for this country,” the NCS import VAT which dropped by 6.27 percent to Shekarau said. N61 billion and also the lo•Continues online at cal non-import remittance www.businessday.ng which dropped minimally by
MODESTUS ANAESORONYE, Uyo
The NPF, IGP, the Nigerian Police Council, Minister of Police Affairs and the Attorney General of Police (AGF) were defendants in the case. However, Ekwo yesterday dismissed the PSC’s suit, stating that it lacked merit. The judge held that the plaintiff was unable to prove it has the power to recruit into the force and the court cannot ascribe to the plaintiff power it does not have. Ekwo said though the Police Act gave the PSC the power to promote, transfer, and discipline policemen, it does not confer on it the power to recruit except it is directed by the president of the country, otherwise the power to recruit rests with the Police Council which the IG heads. He, therefore, struck out the suit filed by the PSC to stop the ongoing exercise. “Consequently, I hold that it is the police council under the supervision of the Inspector General of Police that has the power to carry out recruitment into the police force. I hereby make an order dismissing the case for lacking in merit,” Ekwo held. He held that by the provision of Section 71 of the Police
@Businessdayng
0.54 percent to N150 billion. An economic research report released by Renaissance Capital (RenCap), an investment and securities firm, stated that the closure of Nigeria’s land borders could lead to a slowdown in Nigeria’s economic growth in 2020. “We believe the pick-up in inflation, on the back of the border closures, will undermine confidence and demand in subsequent quarters,” the firm said. “This will also counter the positive impact of improving credit growth, resulting in a neutral impact on GDP growth.” According to the Lagos Chamber of Commerce and Industry (LCCI), the border closure by the Federal Government which commenced in August had a ripple effect across the sub-Saharan Africa, especially local producers and traders who are forced to use alternative routes for their exports. In addition to reducing trading activities, the border closure also contributed to the headline inflation which recorded the highest in 18 months. Due to the reduced trading activity, FG’s revenue also dropped which is evident from the tax remittance.
•Continues online at www.businessday.ng