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Confab: S’South Opts For 22.5%-50% Derivation

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L-R: Chairman, World Pension Summit for Africa, Mrs Grace Usoro; Co-chairman, World Pension Summit, Mr Harry Smorenberg; Acting Director-General of Pencom, Ms Chinelo Anohu-Amazu; President Goodluck Jonathan; Minister of Finance, Dr Ngozi Okonjo-Iweala; Co-chairman, World Pension Summit, Mr Eric Eggink and Chairman, Senate Committee on Pencom, Sen. Aloysius Etuk, at the World Pension Summit in Abuja last Monday.

L-R: Chairman, World Pension Summit for Africa, Mrs Grace Usoro; Co-chairman, World Pension Summit, Mr Harry Smorenberg; Acting Director-General of Pencom, Ms Chinelo Anohu-Amazu; President Goodluck Jonathan; Minister of Finance, Dr Ngozi Okonjo-Iweala; Co-chairman, World Pension Summit, Mr Eric Eggink and Chairman, Senate Committee on Pencom, Sen. Aloysius Etuk, at the World Pension Summit in Abuja last Monday.

At last, the National Conference, Monday and yesterday debated the thorny issues of resource control, derivation principle and devolution of powers, as it considered the report of its Committee of Devolution of Power, with South-South delegates opting for between 22.5 per cent and 50 per cent derivation.
As fervent debates flourished during the plenary session of the conference following conferees commencement of debate on the report of the Committee on Devolution of Power, expectations were high, and tension beclouded the plenary but the sagacity of the Conference Chairman, Justice Idris Kutugi, who presided, doused the tension.
The committee’s slim-volume submission, loaded with serious issues, focused principally on devolving power from the centre to the federating units; and the issue of resource control.
The report was however applauded by the delegates shortly after it was presented by the co-chairmen, the former governor of Akwa Ibom State, Obong Victor Attah, and the former Inspector General of Police, Alhaji Ibrahim Coomassie.
Critically examined in the report, whose recommendations would be subjected to vote by the conference later, were the issues of resource control, derivation principle, revenue sharing formula, and the development and exploitation of mineral resources nationwide.
The report also examined 68 items cited in the Second Schedule, Part One of the 1999 Constitution, which deals with the Exclusive Legislative List; and 30 items contained in Part Two of the Fourth Schedule bordering on the Concurrent Legislative List.
While most delegates from the South, particularly, the South-South and South-East said derivation should be increased from the present 13 per cent to between 22.5 per cent and 50 per cent, others suggested that it should be reduced further from 13 per cent.
Resource control, perhaps, was the most debated aspect of the report.
Each delegate, depending on where he or she comes from, wanted considerable level of control of resources in view of the adoption of true federalism by the conference while others said the issue did not arise as far as they were concerned.
Those who canvassed the view that states should control their resources said they did so in the spirit of devolution of power which allows the states to only pay taxes or make appropriate financial contributions to the Federal Government.
Others argued that mineral resources in Nigeria are owned in law by the Federal Government as contained in Section 44(3) of the 1999 Constitution, as amended.
Section 44(3) states that: “Notwithstanding the foregoing provisions of this section, the entire property in and control of all minerals, mineral oil and natural gas in, under or upon any land in Nigeria or in, under or upon the territorial waters and the Exclusive Economic Zone of Nigeria shall vest in the Government of the Federation and shall be managed in such manner as may be prescribed by the National Assembly.”
In its report, which is still subject to ratification by the conference, the committee said that after heated discussion on resource control, it unanimously agreed that the issue of derivation should rather be discussed instead of resource control.
It said its decision was informed by the emotive nature of the issue, which in the committee’s view was capable of destabilising the country.
On derivation, the committee said some delegates were of the view that derivation should be increased either in a quantum or gradual manner; while others were opposed to any form of increase.
Instead, some members had proposed the reintroduction of the off-shore/on-shore oil dichotomy in derivation payments; at the same time, while others kicked against it.
The committee said that even the abolition of intervention measures such as the Ministry of Niger Delta Affairs, Niger Delta Development Commission and the Amnesty Programme were robustly discussed.
After long debates which spanned four days, the report indicated that a consensus was reached on the issue to the effect that the status quo be maintained in order to avoid upsetting the existing peace and equilibrium in the polity, which it described as a product of years of political engineering and craftsmanship.
On fiscal federalism which basically deals with how revenues are generated and distributed among the federating units in the federation, the committee concluded that the powers conferred on the Federal Government to keep custody of and determine the terms and manner of fund allocation from the Federation Account negate the principles of fiscal federalism.
The committee spotted what it called imbalance in favour of the Federal Government in the sharing formula, and maintained that the imbalance has adversely affected the performance of the federating units, and therefore asked for a review.
It recommended that the powers of the Federal Government under Section 162(3) of the 1999 Constitution, as amended, to prescribe the terms and manner of sharing national revenue should be exercised through the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC).
The committee argued that RMAFC should at the same time consult the federal and state governments before presenting a draft bill on the matter to the National Assembly for enactment into law.
On vertical revenue sharing, which deals with how revenue is disbursed to federating units, the committee emphasised the need for equilibrium between the central government and the federating units, comprising states and local governments.
It said that it conducted examination of specific development challenges of states and local governments, and concluded that to a great extent, rapid economic and social development could be achieved in the country if the percentage of revenues allocated to states and local governments were reviewed upwards.
It recommended that the sharing formula for funds accruing to the Federation Account among the three tiers of government should be: Federal Government 42.5 per cent instead of the present 52.68 per cent; state governments 35 per cent instead of the current 26.72 per cent; and the local governments 22.5 per cent to replace the current 20.60 per cent.
The committee further recommended that the percentage given to population and equity of states in the existing sharing formula be reduced while that assigned to social development factor should be increased to a higher percentage to ensure accelerated development of all parts of the country.
The proposed sharing formula by the committee is based on: diminished emphasis on principles of equality of states and population; increased emphasis on social development factor; and internally generated revenue.
On mines and minerals including oil fields, oil mining, geological surveys and natural gas, the committee recommended that they should be retained on the Exclusive Legislative List as specified in the 1999 Constitution but should be amended to read thus: “The governments of states where the mining activities take place shall be involved in matters relating thereto; (and that) the government of the federation shall create a special fund to develop mines and minerals in states where such resources are undeveloped.”
According to the committee, the overriding need to bring all other mineral resources of the country,  hitherto undeveloped, into the mainstream development by activating National Strategic Plan for exploitation of minerals to boost their contribution to Gross Domestic Product (GDP), were considered in making this recommendation.
Still on mineral development, the committee recommended a constitutional provision for the establishment of a Special Fund for the development of mineral resources in the country.
It further proposed that 4.5 per cent of the total revenue accruing to the federation should be devoted to this special fund when established.
In addition, the committee wants the Special Fund to be in the form of a Venture Capital Fund, advising that a competent body should be established to administer the fund according to the guidelines that shall be specified by the National Assembly.
Before the presentation of the committee’s report to plenary, a delegate, Professor Awalu Yadudu, addressed the conference to “state his own part of the story” on the raging controversy of “consensus group and the existence of position paper”.
Yadudu debunked insinuations that he was primed to “scatter” the conference as claimed by another delegate but rather insisted that his decision to opt out of the consensus committee was informed by the fact that most of the decisions adopted in the position paper presented to plenary were not part of the recommendations of any committee.
Earlier, an elder statesman, Chief Edwin Clark, had addressed the conference, and harped on the need to put the interest of the country above sectional and personal interest.
Clark expressed regret that the consensus committee constituted to resolve contentious issues that may arise in the course of adoption of the recommendations of committees was “scattered” midway.
The Ijaw leader said he was sad that issues that could scatter or dent the credibility of the conference were being raised close to the end of the parley.
He said everyone must understand that Nigeria “is made up of equal citizens. Nobody is superior to the other. We came to this conference in order to have consensus on contentious issues.”
He appealed to delegates to see the National Conference as an ample opportunity to contribute their quota to the task of reforming Nigeria.

 

Justus Awaji, Abuja

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You Failed Nigerians, Falana Slams Power Minister

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Human rights lawyer, Femi Falana, SAN, has passed a vote of ‘no confidence’ in the Federal Government, saying that the Minister of Power, Adebayo Adelabu, has failed Nigerians.

Falana was reacting to Adelabu’s appearance before the Senate to defend the increase in the electricity tariff and what Nigerians would pay on Monday.

The rights activists also claimed that the move is a policy imposed on the Nigerian government by the International Monetary Funds (IMF) and the World Bank.

Speaking on the Channels TV show on Monday night, Falana said, “The Minister of Power, Mr Adebayo Adelabu has failed to address the question of the illegality of the tariffs.

“Section 116 of the Electricity Act 2023 provides that before an increase can approved and announced, there has to be a public hearing conducted based on the request of the DISCOS to have an increase in the electricity tariffs. That was not done.

“Secondly, neither the minister nor the Nigeria Electricity Regulatory Commission has explained why the impunity that characterised the increase can be allowed.”

Falana also expressed worry over what he described as impunity on the part of the Federal Government and electricity regulatory commission.

““I have already given a notice to the commission because these guys are running Nigeria based on impunity and we can not continue like this. Whence a country claims to operate under the rule of law, all actions of the government, and all actions of individuals must comply with the provisions of relevant laws.

“Secondly, the increase was anchored on the directives of the commission that customers in Band A will have an uninterrupted electricity supply for at least 20 hours a day. That directive has been violated daily. So, on what basis can you justify the increase in the electricity tariffs”, Falana queried.

The human rights lawyer alleged that the Nigerian government is heeding an instruction given to her by the Bretton Wood institutions.

He alleged, “The Honourable Minister of Power is acting the script of the IMF and the World Bank.

“Those two agencies insisted and they continue to insist that the government of Nigeria must remove all subsidies. Fuel subsidy, electricity subsidy and what have you; all social services must be commercialised and priced beyond the reach of the majority of Nigerians.

“So, the government cannot afford to protect the interest of Nigerians where you are implementing the neoliberal policies of the Bretton Wood institutions.”

The Senior Advocate of Nigeria accused Western countries led by the United States of America of double standards.

According to him, they subsidize agriculture, energy, and fuel and offer grants and loans to indigent students while they advise the Nigerian government against doing the same for its citizens.

Following the outrage that greeted the announcement of the tariff increase, Adelabu explained that the action would not affect everyone using electricity as only Band A customers who get about 20 hours of electricity are affected by the hike.

Falana, however, insisted that neither the minister nor the National Electricity Regulatory Commission (NERC) has justified the tariff increase.

The senior lawyer said that Nigerian law gives no room for discrimination against customers by grading them in different bands.

He insisted that the government cannot ask Nigerians to pay differently for the same product even when what has been consistently served to them is darkness.

Following the outrage over the hike, Adelabu on Monday appeared at a one-day investigative hearing on the need to halt the increase in electricity tariff by eleven successor electricity distribution companies amid the biting economic situation in Nigeria.

However, Falana said that nothing will come out of the probe by the Senate.

He advised that the matter has to be taken to court so that the minister and the Attorney General of the Federation can defend the move.

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1.4m UTME Candidates Scored Below 200  -JAMB 

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The Joint Admissions and Matriculation Board (JAMB) on Monday, released the results of the 2024 Unified Tertiary Matriculation Examination, showing that 1,402,490 candidates out of  1,842,464 failed to score 200 out of 400 marks.

The number of candidates who failed to score half of the possible marks represents 78 per cent of the candidates whose results were released by JAMB.

Giving a breakdown of the results of the 1,842,464 candidates released, the board’s Registrar, Prof. Ishaq Oloyede, noted that, “8,401 candidates scored 300 and above; 77,070 scored 250 and above; 439,974 scored 200 and above while 1,402,490 scored below 200.”

On naming the top scorers for the 2024 UTME, Oloyede said, “It is common knowledge that the Board has, at various times restated its unwillingness to publish the names of its best-performing candidates, as it considers its UTME as only a ranking examination on account of the other parameters that would constitute what would later be considered the minimum admissible score for candidates seeking admission to tertiary institutions.

“Similarly, because of the different variables adopted by respective institutions, it might be downright impossible to arrive at a single or all-encompassing set of parameters for generating a list of candidates with the highest admissible score as gaining admission remains the ultimate goal. Hence, it might be unrealistic or presumptive to say a particular candidate is the highest scorer given the fact that such a candidate may, in the final analysis, not even be admitted.

“However, owing to public demand and to avoid a repeat of the Mmesoma saga as well as provide a guide for those, who may want to award prizes to this set of high-performing candidates, the Board appeals to all concerned to always verify claims by candidates before offering such awards.”

Oloyede also noted that the results of 64,624 out of the 1,904,189, who sat the examination, were withheld by the board and would be subject to investigation.

He noted that though a total of 1,989,668 registered, a total of 80,810 candidates were absent.

“For the 2024 UTME, 1,989,668 candidates registered including those who registered at foreign centres. The Direct Entry registration is still ongoing.

“Out of a total of 1,989,668 registered candidates, 80,810 were absent. A total of 1,904,189 sat the UTME within the six days of the examination.

“The Board is today releasing the results of 1,842,464 candidates. 64,624 results are under investigation for verification, procedural investigation of candidates, Centre-based investigation and alleged examination misconduct”, he said.

Oloyede also said the Board, at the moment, conducts examination in nine foreign centres namely: Abidjan, Ivory Coast; Addis Ababa, Ethiopia; Buea, Cameroon; Cotonou, Republic of Benin; London, United Kingdom; Jeddah, Saudi Arabia; and Johannesburg, South Africa.

“The essence of this foreign component of the examination is to market our institutions to the outside world as well as ensuring that our universities reflect the universality of academic traditions, among others. The Board is, currently, fine-tuning arrangements for the conduct of the 2024 UTME in these foreign centres,” he explained.

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Ex-CBN Director Admits Collecting $600,000 Bribe For Emefiele 

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A former Director of Information Technology with the Central Bank of Nigeria, John Ayoh, has alleged that he collected on behalf of the former governor of the apex bank, Godwin Emefiele, a sum of $600,000 in two installments from contractors.

Ayoh, the second witness of the Economic and Financial Crimes Commission (EFCC), disclosed this on Monday while recounting instances where he facilitated the delivery of money to Emefiele, claiming it was for contract awards.

Under cross-examination at the Ikeja Special Offences Court in Lagos by the defence counsel, Olalekan Ojo (SAN), Ayoh admitted to facilitating the alleged bribery under pressure.

The embattled former governor of the apex bank is having many running legal battles both in Abuja and Lagos and is being tried by the EFCC at the Special Offences Court over alleged abuse of office and accepting gratification to the tune of $4.5 billion and N2.8bn.

He was arraigned on April 8, 2024, alongside his co-defendant, Henry Isioma-Omoile, on 26 counts bordering on abuse of office, accepting gratifications, corrupt demand, receiving property, and fraudulently obtaining and conferring corrupt advantage.

Emefiele’s defence, however, challenged the court’s jurisdiction over constitutional matters, urging the quashing of counts one to four and counts eight to 24 against him.

Ayoh, who was led in evidence by the EFCC prosecution counsel, Rotimi Oyedepo (SAN), said the first money he collected on Emefiele’s behalf was $400,000 which his assistant, John Adetola, came to collect at his house in Lekki, Lagos State.

He further told the court that the second bribe of $200,000 was collected at the headquarters of CBN, at the Island office.

He said the money was brought in an envelope, adding that when the delivery person, Victor, was on the bank’s premises, he contacted Emefiele, who insisted on receiving the package directly from Ayoh without involving third parties.

He said when he went to deliver the package, he saw many bank CEOs waiting to see the former apex bank governor.

When questioned if he had ever been involved in any criminal activity, he responded in the negative but admitted that he had facilitated the commission of crime unknowingly.

“I believe I did admit in my statement that I was forced to commit the crime. I don’t know the exact word I used in my statement, but I said we were all forced with tremendous pressure to bend the rules,” he said.

When asked if he opened the envelopes he collected on the two occasions and counted the money to confirm the amount, he was negative in his reply, adding that he did also write in his statement that the money was given to influence the award of contracts.

On whether the EFCC arrested him, the witness said he was invited on February 20, 2024, and returned home after he was granted bail.

Earlier, Emefiele asked the court to quash counts one to four and counts eight to 24 against him, as the court lacks the jurisdiction to try him.

Speaking through his counsel, Ojo, he said counts one to four were constitutional matters, which the court lacked the jurisdiction to determine.

In his argument, citing Sections 374  of the Administration of Criminal Justice Act and 386(2), the defence counsel told Justice Rahman Oshodi that Emefiele ought not to be arraigned before the court on constitutional grounds.

He, therefore, urged the court to resolve the objection on whether the court had the jurisdiction to try the case or not.

The second defendant’s counsel, Kazeem Gbadamosi (SAN), also relied on the submissions of Ojo.

The EFCC counsel, Oyedepo, however, objected, as he asked the court to disregard the decision of the Court of Appeal relied upon by Ojo, saying that the Court of Appeal could not set aside the decision of the Supreme Court on any matter.

Ruling on the submissions of the counsel, Justice Oshodi said he would give his decision on jurisdiction when he delivered judgment as he adjourned till May 3.

He also directed the EFCC to serve the defence proof of evidence on witness number six and his extrajudicial statement.

 

 

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