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Protecting Critical Railway Assets

Engr Fidet Okhiria, the Managing Director Nigerian Railway Corporation (NRC), said recently in an interview that the corporation needed about N61.5 billion to carry out maintenance of its facilities in 2022. This is occasioned by vandalization of critical railway assets by vandals.

These vandals have destroyed and stolen multi-billion naira equipment in at least 66 major attacks on the facilities of the Nigerian Railway Corporation in the last ten months. The items stolen and carted away include railway slippers, tracks, nuts, bolts, cables, racks, weld-shear, rods, puder and other accessories.

These vandalzation, which in most cases force the cancellation of train services in the affected routes, took place across eight states and the Federal Capital Territory (FCT). These include Nasarawa, Kaduna, Benue, Enugu, Niger, Plateau, Ogun, Delta, the FCT and Rivers State.

The Port Harcourt-Aba rail attack led to the temporary stoppage of train services on the rail line. The attack on the rail line took place caused the train to derail at Umuzohia area of Oyigbo in Rivers State, a situation he said to be “so dangerous” because of the bushy nature of the area.

Data obtained from analysis of reported vandal incidents revealed that these attacks happened between January and September 2021. Most of the vandalized railway property are sold in black markets, making the corporation lose billions in replacement, maintenance and repairs.

Investigation revealed that federal capital authorities was forced to indefinitely suspend the multi-billion Abuja Metro Rail Line after its track was vandalized 48 times. The 42-kilometer standard rail gauge, which is  the first rapid transit system in the country and in West Africa and the second such system in sub-saharan Africa (after Addis Ababa Light Rail), was launched on July 12, 2018.

Transportation systems such a railway network facilitate the fast movement of passengers and freight and are crucial for societal and economic welfare. An essential part of modern societies, it is expected by the general public that transport systems operate at all times reliably. For railway networks, an isolated event can lead to the disruption of all traffic in this railway section, cascading and fundamental indirect effects resulting in economic losses are possible

However, the rising ugliness of railway tracks vandalization and attacks on railway tracks in some parts of the country is a surprising, sad and complex situation.

Therefore, the risk management within the railway transportation in Nigeria cannot be handled by NRC employees and police alone.  Protecting railway critical assets has to be aligned with public risk management strategies in many places. Because of this,  Engr Okhiria has to put on ground strategy to kick-start such partnerships.  And vital cooperation between various stakeholders at different  levels are needed. Thus the NRC has to cooperate with local governments and settlements along railway tracks, security forces, local hunters,  local vigilante people, the National Orientation agency. Then drones should also be deployed to monitor the rail tracks.

RELOAD DEC 2021 TELESCOP

Ahmed Musa Dangiwa’s Innovations at FMBN to improve Housing Delivery

Musa Ahmed Dangiwa, managing director of Federal Mortgage Bank of Nigeria (FMBN) is a man whose experience covers  the academia, real estate, infrastructure development, banking and  design consultancy, with over three decades experience. He has brought efficiency and transparency into the operations of the FMBN and housing delivery in Nigeria. In his quest for this, he has been making the FMBN relevant to Nigerians. For the first time, the public have begun to see what role this agency is meant to play within the Nigerian real estate space since its creation in 1977.

Of recent is the introduction of a two-week ultimatum time for processing mortgage loan applications of NHS subscribers. The second and equally important thing is the deployment of Fintrak Software Solution to help ease operations of the Federal Mortgage Banks ( FMBN).

On December 3,  2020, Mr. Babatunde Fashola SAN, the Minister of Works and Housing announced the approval of the Federal Executive Council (FEC) for the FMBN to procure and deploy a core banking software application at the cost of N487.39 million from Messrs. Fintrak Software Solution

The implementation of the banking system would be significant and far-reaching. Once operational, it would help the FMBN to create an integrated technology-driven platform to activate its operations. On the back of the digital service provisioning eco-system, the bank would then tackle the many systemic challenges that it has had to contend with over the years due to the largely manual nature of its operations.

Top on the list is fixing the longstanding inability of the bank to update, in real-time, subscribers’ monthly contributions to the National Housing Fund (NHF) Scheme. As manager of the NHF scheme, a pool of funds comprising 2.5 per cent of subscribers’ monthly salaries is deployed towards the delivery of affordable housing.

For quite a while FMBN has attracted much criticisms from workers, stakeholders, and the general public over how it is handling the scheme. However this is due to the multi-stakeholder structure of the NHF operations.  Employers in the public and private sectors are expected to deduct 2.5per cent of the monthly income of workers who are registered with the NHF scheme and remit this to the FMBN.

Many of the subscribers  have complained severally that they are not getting adequate response from neither the NHF or the FMBN over the years.There have been several cases of workers, who after years of working and seeing the monthly deductions from their paychecks, are heartbroken to discover that only a paltry sum had been credited to their accounts with the National Housing Fund because their employer had either failed to remit or remitted only a portion of what was deducted

These have resulted in instances of subscribers complaining that deductions made by their employers from their salaries are not reflected in their NHF accounts due to non-remittances by their employers to FMBN as well as the inability to promptly access details and information on the status of subscriber’s accounts.

Disappointingly,  investigations  have shown that many employers are  quick to  remove the 2.5per cent of worker’s monthly salaries but are unwilling to remit the same to the FMBN.

Fortunately, with the introduction of FinTrak  technology  all these issues have come to an end with the software fully functional. The FinTrak subscriber management component of the application is specifically designed to fix them to ensure a smooth subscriber and customer experience for all workers that contribute to the NHF Scheme.

Two things happen with this technology. One is  that there is now seamless back-end integration with employers in a way that makes deductions from workers’ salaries and remittances to the FMBN more transparent to all stakeholders. NHF subscribers will now get real-time alerts on all transactions on their NHF accounts and stay informed on the status of their accounts.

Second pertains to usefulness to FMBN. It is vital to the operations of the FMBN because the core banking system would help shorten the time it takes for subscribers to access credit from the bank.  This process will help upgrade the overall customer experience of NHF subscribers.

Before 2017, when the Ahmed Dangiwa-led management of the bank took office, it used to take as much as twelve months or more before eligible NHF loan applications were fully processed, approved, and disbursed to applicants to enable them to purchase their homes. Much of the delays were caused by the manual process of documenting and performing due diligence on loan applications that defined the relationship with Primary Mortgage Banks (PMBs), which FMBN, operating as a wholesale back-end mortgage finance institution, uses as fronts to lend to NHF subscribers.

These are some of the systemic issues that the FinTrak Credit Risk Management System, an integral component of the core banking system, is designed to resolve. The FMBN management projects that the software application would streamline the multi-layered mortgage loan process steps and eventually crash the time it takes NHF subscribers to access credit to less than two weeks when implemented. This implies faster mortgage loan application processing and disbursements as well as enhanced customer satisfaction and experience.

Besides that, the attainment of a two-week turnaround time for processing mortgage loan applications would be an outstanding addition to the progress already made by the Dangiwa-led management in this direction over the past three years.

Besides improving turnaround time, the FinTrak Credit Risk Management System by eliminating laborious manual documentation in the credit application and processing brings several other operational improvements to FMBN operations. This includes aiding digital credit scoring and appraisal for improved accuracy; improving the visibility of NHF subscribers’ credit performance in the records of PMBs; as well as ensuring early warning to the banks where the likelihood of delinquency is observed on specific subscriber loans.

Even before now, it is on record that Dangiwa has  injected a lot of efficiency into the operations of the bank. Part of the efficiency improvement effort is shortening the process of NHF refunds, as already observed. Consequently, NHF retirees can now complete the refund processes easily, which is seen as one big step ahead Dangiwa and his management of the bank has taken towards delivering  affordable housing for retirees.

The condensed procedure now ensures prompt repayment of funds to the scheme’s contributors. Monthly NHF refunds and disbursement of NHF mortgage and home renovation loans have increased considerably.

Equally, Dangiwa has broadened  the NHF base to capture the informal sector with the admission of non-salaried people into the scheme. This means that self employed and others outside the organized private sector now have access to affordable housing products of FMB.
some other  initiatives include re-integrating defaulting states into the NHF scheme, as well as aggressive loan recovery. He  opened talks with states that dropped out of the scheme and  he is quite determined to have them back on board the NHF scheme. Considering the various mortgage financing products on offer, he is determined to ensure that no section of Nigerians is denied access to housing development opportunities.

In the area of loan recovery, he is doing much here. His  aggressive loan recovery strategy has improved FMBN loan portfolio quality. The steps taken include engaging debt collectors and automating loan repayment debits from customers’ bank accounts. He has also given priority timely rendition of audited accounts. In fact, he started this as soon as he was appointed in 2017. Then he set-up a task force,  with a mandate to clear the backlog of outstanding financial statements since 2013 by end of 2018.

Business process automation is also strong on his agenda. And he has begun this a long while now. Through that he has deployed technology as an end-to-end business process within the institution, which has to do with the adoption of core banking applications and wide area network that incorporates mobile and internet solutions. With these he has given enablement to key banking processes with direct links to primary mortgage institutions and customers, including credit alerts to NHF contributors. In addition to recapitalization, Dangiwa is exploring other measures

To boost the FMBN’s liquidity and capacity to deliver its mandate, Dangiwa moved the idea of recapitalization and other measures.  For instance, in collaboration with the Federal Inland Revenue Service (FIRS), he is looking out to enlist all corporate organizations for the NHF scheme. By enlisting non-contributing organizations and enforcing compliance, by doing this, he has increased substantially remittances to the NHF and consequently the bank’s capacity to meet the long-term mortgage financing needs of Nigerians.

Dangiwa is tackling headlong a major drawback for primary mortgage institutions, the Land Use Act of 1978 that vests land ownership in the state governors. Other steps towards elevating the industry include the right to foreclose on delinquent borrowers, easing the creation of legal mortgage, perfection of titles and enhanced regulatory policy framework for orderly development and growth of the industry.
Dangiwa  also asserted that the bank would build some housing units in each state and the Federal Capital Territory to address housing deficit in Nigeria.

To draw more investments to the Nigerian Housing scheme, he  proposes that banks and insurance companies contribute five per cent of their profit-after-tax (PAT) as mandatory investments into the NHF as opposed to portions of their loan portfolios of life/non-life funds.

“The proceeds are remitted into a Special Purpose Vehicle (SPV) jointly established by these institutions and FMBN to ring-fence the investments. Proceeds accruing to the SPV are to be invested in either real estate capital market instruments or the financing of large-scale residential housing projects on an affordable but economically viable basis, for a specified tenor and at an agreed rate of return.

“As an incentive, the investments could be computed as liquid assets for banks, profit will be tax-exempted, the investments could be computed as part of the loan to deposit ratio for banks and a set housing for the economically-disadvantaged to count as corporate social responsibility.

“Our intention is to see banks and insurance companies to be good corporate citizens in compliance with the law of the land by investing in the NHF Scheme as stipulated by law but under a risk-sensitive, safe and lucrative arrangement. This provides a win-win solution for them and Nigerians who are in dire need of affordable housing.”

“Based on our projections, it is expected that not less than N100 billion will accrue to supplement the resources of the NHF scheme as mandatory investments from banks and insurance companies if this proposal is implemented.

He noted that despite the shortfall, the NHF scheme has improved its performance significantly. For instance, NHF collections grew by 80 per cent within the last three years by N186 billion to reach a cumulative of N418 billion as of September 2020

It disbursed a cumulative of N265 billion, an increase by over N112 billion (74 per cent) over the N152.5 billion and about 8,700 new homes have been added, a growth of 43per cent, to attain a cumulative 29,133 funded housing units. Similarly, about 5,000 mortgages were originated to grow our portfolio by 26 per cent to a total of 21,587 and home renovation micro-loan grew by over 2,000 per cent from about 2,600 to about 56,000 loans over the past three years.

Already, the NHF Scheme has improved its performance significantly. For instance, NHF collections grew by 80 percent within the last three years by N186 billion to reach a cumulative of N418 billion as of September 2020

Overall, with all the innovations brought by Dangiwa have  brought heft to the operations of FMBN. And now with the Federal Government’s approval and imminent deployment of the Core Banking Solution at the FMBN, the bank is set for historic preformance. For the first time, the nation’s apex mortgage bank is set to have a world-class technology-driven system that would help optimise its operations and ensure a smooth customer experience for all workers that contribute to the NHF Scheme. This is a big boost for affordable housing delivery in the country on the watch of  Mr Musa Ahmed Dangiwa.

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The vital role Companies play in employee retirement planning

Nigeria is number 41 of 43 countries in the recently released Mercer CFA Institute Global Pension Index 2021. Our retirement income system ranks second lowest in Arica and closes to the bottom in the world.

The global pension index is a combination of three weighted factors: adequacy (benefits paid), sustainability (ability to keep paying), and integrity (confidence in the system). Nigeria ranks 19th globally in sustainability, 41st inadequacy, and dead last (43rd) in integrity. This brought our overall ranking to 41st.

There are three common sources of retirement income. These are the government, the employer, and the individual’s own savings. The first two are often not enough while the third requires education, effort, and discipline.

To improve the retirement system, a bill has been passed in both the Senate and the House during the Obasanjo era. Now what can also help is the need for we can call “: Capital Market Development Act”  The proposed Capital Market Development Act should focus on helping workers prepare better for retirement by allowing portability of benefits, encouraging savings, expanding their investment product choices, promoting financial literacy, among other initiatives.

This is encouraging. Realistically though, this will take longer to materialize and there is no guarantee that the enhancements will be enough. But in retirement planning, time is so critical.

This is where employers can play a vital role given that employees spend the greater part of their lives working for a company. Companies say people are their greatest asset. One way to show they care is to help employees prepare for their retirement. Many provide retirement benefits higher than mandated by law. But simply providing the benefit is not sufficient to ensure the employees can look forward to happy days during their sunset years.

We hear many sad stories about retirees. Those who spent all retirement benefits in just a few years and had to work again. Those who went into business and failed. Those who got scammed. Those who could not afford proper medical care. Those who depend on their children who are already raising their own families. These are tales of discomfort and the absence of dignity. Stories that could have been prevented with some help from their employers.

There are a good number of simple and effective steps employers can take to inspire employees to prepare for life in retirement.

— Improve employee financial literacy through awareness campaigns and education via frequent company communications and annual sessions on personal financial planning.

— Orient new employees early and well to the retirement plan so they appreciate it better to participate and contribute more.

— Include a segment about personal budgeting during company or department annual planning because individuals also need to allocate resources efficiently like companies.

— Increase personal financial planning awareness during times of bonuses and sustain this by building a culture for preparing and risk-proofing the future.

— Offer a more detailed retirement planning session for those at least five to 10 years to retirement, so they can put in place a more robust plan to ensure their readiness.

— Conduct a retirement session for those about to retire so they can have a smooth transition for the expected big change in their lifestyle with a lot of free time, limited interactions with former colleagues, and no more set goals to achieve.

— Create an automatic savings and investment program for employees to encourage them to develop the habit early and to enable them to maximize the benefits of long-term saving and investing.

— Use income and loan data of employees, without violating privacy rules, to spot those who may need more financial education or support. Employees with big loans or habitually applying for one can be a symptom requiring some attention.

— Offer a more flexible set of benefits so employees can fully maximize them and help reduce their out-of-pocket expenses, which can improve savings.

— Review and promote programs that support a well-funded employee retirement like contributory plans, stock purchase plans and stock options.

Ultimately, it is the individual who has the primary responsibility for retirement readiness. But employers can extend more help, guidance and support for their people in this effort. I am certain that the care for employees goes beyond employment, especially when we appreciate our staff as people and not mere statistics.

Zeetin-Engineering

Zeetin Engineering to produce electric cars in Nigeria

Zeetin Engineering, an engineering company, is setting up a multi-billion naira factory in Idu Industrial area of the federal capital territory (FCT) to produce electric cars.

Speaking with journalists on Thursday, Robert Azibaola, promoter of the company, said he has invested about N3.5 billion in setting up the place.

Azibaola said, so far, he has not borrowed money from the bank, adding that he is desirous to receive bank facilities that would assist him to accelerate the completion of the factory.

He said the Bank of Industry (BoI) and the Nigeria Export-Import (NEXIM) Bank have expressed their readiness to furnish Zeetin Engineering with a loan facility of N2.5 billion each.
“As a visioner, this is my vision and it is to make Nigeria great,” he said.

“Except we get our act together, the black race globally will not have a proper footing in spite of their inventions in the western countries. This is my personal contribution towards making Nigeria a great country.

“Zeetin focuses on all types of metal works of high-end engineering. It has acquired and installed the most sophisticated production machines (CNCs, Plasmas, 5Axis Milling, Lathes, etc) in the metal works industry in Nigeria.
“With its capacity, Zeetin will be functioning as an OEM (original equipment manufacturer) for Nigeria and will be churning out full-scale industrial product for the Automotive, Aeronautic, Aviation, Railways, Marine, Agricultural sectors, etc.

“The lack of OEMs in the country has been a great hindrance to the growth and development of manufacturing and assembling companies. Manufacturers in Nigeria usually resort to importation of all their spares amidst scarce foreign exchange and lead time.

“When fully operational, most Nigerian businesses in need of specialised spare-parts will get from Zeetin direct and would not be waiting for importation from abroad. Thus, Zeetin Engineering shall be bridging a vital gap.

“Zeetin has array of machines that are for the manufacture of other machines, spares and equipment.

“This is why Zeetin is leading the way to become Nigeria’s proudly OEM (Original Equipment Manufacturer) at full-scale industrial levels for Nigeria.”

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AGF IDRIS ADVOCATES EVOLUTION OF STRATEGIES AND PRACTICES TO MANAGE PANDEMIC-INDUCED FINANCIAL CHALLENGES

The Accountant General of the Federation, Ahmed Idris FCNA has called on managers of the country’s economy, economic experts and critical stakeholders in the country’s economy to come up with strategies and practices that could be deployed in the effective management of inevitable financial challenges such as that caused by the COVID-19 pandemic.

 

Idris made the call at a two-day National Treasury Workshop, in Uyo, Akwa Ibom State with the theme, “COVID-19 and the global economy, implications on the Nigerian national treasury”.

 

The workshop was meant to provide a forum for economic experts, officials of the Federal and State Governments, academia, and the private sector to brainstorm and come up with effective strategies for managing national economies in the face of pandemics and other global disasters.

 

The Accountant General of the Federation maintained that the reality of the pains inflicted on the Nigerian economy and the national treasury by the COVID-19 pandemic has made it overtly imperative to fashion out ways to effectively manage the economy during pandemics and handle any pandemic-induced financial challenges.

 

He tasked the economic experts and government officials to come up with viable ideas that will, among other things, help the country withstand financial shock caused by any pandemic and also help control aggregate cash flows within fiscal, monetary and legal limits to improve the management of critical government borrowings.

 

Furthermore, he said ideas should be evolved that will help establish and sustain the consciousness of and accountability for public expenditure, efficient budget execution and resource allocation as well as effective public service delivery that accords value for money at all times.

 

In his address at the Workshop, the Minister of State for Budget and National Planning, Prince Clem Agba noted that the dwindling revenue profile of the country and the attendant challenges on the cash flow occasioned by the COVID-19 pandemic called for prudent management of available resources and evolution of better, more effective and robust administrative mechanisms to resolve the revenue challenges.

 

He made known that in an effort to mitigate the impact of the pandemic, prevent potentially deep recession and accelerate quick recovery of the economy, the Federal Government had developed three broad strategies namely, provision of economic stimulus packages, mobilization of external support/funding and increased the Non-Oil revenue generation.

 

He said as a result of these measures adopted by the government, health and economic data have continued to be on a positive trajectory despite the impact of the COVID-19 pandemic.

 

Also speaking, the Governor of Akwa Ibom State, Mr. Udom Emmanuel commended the initiative of the Office of the Accountant General of the Federation in organising a workshop to look into ways and means of repositioning the Nigerian economy in a post-COVID-19 era.

 

He expressed optimism that the workshop will come up with ideas and approaches to stimulate and grow the Nigerian economy in a new world put forth by the COVID-19 pandemic.

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ABUJA BRANCH OF ANAN HONOURS AGF IDRIS, OTHERS

The Accountant General of the Federation, Ahmed Idris FCNA, was one of the personalities that were recently presented with Awards of Honour by the Abuja FCT 1 Branch of the Association of National Accountants of Nigeria (ANAN).

The Award presentation was part of the 2021 International Accountants’ Day Celebration by the Abuja FCT 1Branch of the Association of National Accountants of Nigeria (ANAN).

Idris was presented with an Award of Honour for accountable leadership. Other Awardees were honoured for excellence in leadership and humanitarian service, diligence in the line of duty, consistency of purpose in service, entrepreneurship and leadership.

In conferring the Award, the Abuja FCT 1Branch of ANAN noted that the Accountant General of the Federation has promoted transparency, accountability, and probity in the management of public funds through the dogged implementation of the financial management reforms anchored by the Treasury.

In a goodwill message at the occasion, the Accountant General of the Federation, who is also a member of the Association of National Accountants of Nigeria (ANAN), congratulated the Abuja FCT 1 Branch of ANAN for the successful hosting of the 2021 International Accountants’ Day Celebration and other achievements the Chapter has recorded. The AGF was represented by the OAGF Director of Finance and Accounts Mr Lucky Nwagwu.

He noted that the theme of the celebration, “Accountable Leadership in the 21st Century”, was apt as the country needs leaders with high level of integrity, foresight and professionalism to drive positive change.

NEPZA

NEPZA seeks intervention of NASS to boost development of Special Economic Zones

The Nigeria Export Processing Zones Authority (NEPZA) has disclosed that the development of Special Economic Zones in Nigeria to boost economic development also requires the political will to substantially enhance its funding.

This was disclosed by the Managing Director of NEPZA, Prof. Adesoji Adesugba, in a statement issued on Thursday, in Abuja, at the agency’s presentation of its 2022 budget at the National Assembly.

He cited the importance of improving infrastructure investments to improve operations of free trade zones and the need to work with the legislature to increase the development of Special Economic Zones in Nigeria.

Adesugba said, “Infrastructure development in the zones is the ultimate attraction to this concept. We shall not be dissipating too much energy in promoting the concept if the right infrastructures are in place.

“China has about 3000 state-of-the-art free trade zones and has leveraged on them to transform its economy to an enviable form. This is indicative of the socio-economic possibilities embedded in this global concept.

“We need to, therefore, rethink our strategies to improve appropriation and funding of the free trade zones if the country truly aims at using it to accelerate economic growth.’’

He reiterated the need to work with the National Assembly to achieve maximum potential in the development of free trade zones and that what is, therefore, required is the political will to substantially enhance its funding.

Highlighting that failure to work with the National Assembly will make Nigeria finally become a dumping ground for goods and services from other African countries due to the current trade liberalisation regime allowed by the African Continental Free Trade Agreement (AfCFTA).

“Nigeria must become competitive by being a producing nation as opposed to being a consuming nation,’’ he said

He added that the Free Trade Zone Scheme is a wonderful global economic model with the capacity to transform economies, but it is indeed a multi-billion-naira venture, citing that countries that are reaping from this model continually inject funds into it.

“I believe the time has come for the members of these committees to also embark on inspection of some private zones, in order to reshape their perspectives on the potentials of this great scheme to change the country’s economic landscape for the better,’’ Adesugba said.

Hassan Bello

The Achievements of Barrister Hassan Bello at the Nigerian Shippers’ Council

Trade Facilitation, Governance, Intermodal Transportation, Ports Efficiency

Barrister Hassan Bello , Executive Secretary Nigeria Shippers Council (NSC) is part of a new generation of leaders who are visionary in their thinking and who work not only for national goals and development, but for greater global peace, sustainability and prosperity.

At the Nigeria Shippers Council, he fairly balances the interests of ports stakeholders, being  maritime economic regulator, maintaining links with the terminal operators, shipping companies, and freight forwarders, as well as Nigerian Customs, the Port Authority, and many other agencies. The reason for this is the need to develop Nigeria into a preferred destination for cargo in West Africa. And also to ensure an improved intermodal environment, a reduction in seaport congestion and increased cross-border trade between the north of Nigeria and neighbouring landlocked countries.

The Nigeria Shippers Council has broadly two mandates. The first mandate is it being an intervention agency to make sure that there is balance in the transactions between the supplier and the users of shipping services. In this role, it ensures balance between the supply and the demand side of the shipping industry, coordinating all factors. The second mandate is trade facilitation, and the council has done this successfully to propel the integrity of Nigeria international trade. In an interview, Bello talks about the council’s mandates.

“As Nigerian ports economic regulator, the Nigerian Shippers Council negotiates with service providers and government alike while also taking care of the interests of  shippers, playing  the role of a neutral umpire to all parties.  In this regard, the NSC is working with the terminal operators, shipping companies, and freight forwarders, as well as Nigerian Customs, the Port Authority, and many other agencies. The reason for this is the need to develop Nigeria into a preferred destination for cargo in West Africa. Nigerian ports and terminals are in competition with other ports in the neighborhood and we have to attract cargo. Therefore, the Shippers council is streamlining procedures, such that shippers will have no choice but to bring goods to Nigerian ports because of their efficiency.”

The functions of the Council enumerated in its Act, also include such thing as advising the government on shipping services.  That means it will advise the government on adequacy of services, whether shipping services are adequate or not, advising the government on the class of vessels to be used in transportation, advising the government on the quality of the vessel.

Equally, the Shippers council is at the forefront of pushing on to ensure that improved cargo railway service, ICDs, the Truck Transit Parks (TTPs) and the dry ports are all in place, working seamlessly to enhance trade in Nigeria. With all these going on, the NSC is working to improve the country and regional economies, infrastructure and livelihoods. And these have portrayed Barrister Bello as a strategic person with his task of managing. There are many examples of how highways, dry ports buildings, seaports are improving the quality of lives of different Nigerian communities.

The Nigeria Shippers Council is also involved with the National Single Window (NSW) of the Federal Ministry of Transportation to ensure a 48-hour clearance of goods at the ports. This is a National Single Window, whereby all the interface and integration of all system to work seamlessly together. Now there is a committee which include the Nigeria Custom Services, Nigeria Port Authority, Nigeria Shippers Council and some other relevant organizations under the PEBEC [Presidential Enabling Business Environment Council], the ease-of-doing-business organization under the Vice President, which is looking at the National Single Window to remove opaqueness, create transparency and simplify documentation.

With a good staff support made up professionals who are aware of their mandates and know how to execute these mandates, the Nigeria Shippers Council is doing great jobs under the watch of Barr  Bello. The NSC became very potent since 2006 Ports reforms of former President Olusegun Obasanjo  administration and has increased its clout since then.

It has been working harder to encourage the roles of maritime stakeholders, acknowledging it as an important complement Nigeria oil sector development. Its continuing attention to ensure that  things are done right by stakeholders is also a catalyst for Nigerians to take a hard look at themselves and ask how they can do more in the immediate region and work with all actors towards a more prosperous West African sub-region.

Relevant parties objectively and positively view NSC’s relations with them and other relevant agencies, and earnestly abandon outdated concepts of old thinking while doing more to benefit the nations’ development and improve livelihoods, regional peace and stability.

In the closing days of April,  Barrister  Bello made a working visit to the NIMASA headquarters where he met Dr Bashir Jamoh, director-general of NIMASA. The visit was an important move to harmonise rates, operations and to curb delay, corruption at Nigerian ports. And that heralded a great new chapter in furtherance of efficiency, and accountability at the ports. That day, the Nigerian Shippers’ Council (NSC) and the Nigerian Maritime Administration and Safety Agency (NIMASA) agreed to implement joint measures to minimise delay and corrupt practices at the country’s ports.

The two agencies of Federal Government expressed hope that full automation of processes at the nation’s ports would go a long way to curbing human interface, delays and corruption at the ports. NIMASA and the Nigerian Shippers Council thus agreed to harmonize the implementation of Port and Flag State Administration to minimize human direct contact onboard vessels, calling at the nation’s ports in line with provisions in the Nigerian Port Process Manual (NPPM).

Bashir Jamoh of NIMASA disclosed that the Agency’s operation was close to 85percent automated, adding that NIMASA had undertaken an in-house harmonization exercise to reduce human interface and now fully ready for inter-agency harmonization. He also commended the management of the Shippers Council for its commitment to ensuring the success of the introduction of cargo tracking notes in port operations.

He thanked the NSC boss for obtaining approval for the cargo tracking note. He said that would reduce loss of man-hour and assist in exposing non-declaration or under declaration at the nation’s ports, thus improving revenue generation for the federal government.

Talking about the Secure Anchorage Area, Jamoh noted that since the Deep Blue project took over security working closely with the Nigerian Navy, the nation has witnessed a reduction in the number of security breaches at the anchorage.

“We are beginning to record a reduction in attacks in our waters, and we hope to sustain this and later demand a change in status of cost of insurance of vessels visiting Nigerian waters.” He told the Nigerian Shippers Council’s boss.

Responding Barrister Bello said that cost of port operations in Nigeria could be reduced by over 35percent when standard operation procedures contained in the Nigerian Port Process Manual were fully implemented.

“Our Ports are in competition with other Ports in the Region, so we need to strengthen collaboration on the establishment of indicative freight Rates,” the NSC Executive Secretary said.

Vice President Yemi Osinbajo launched the manual on December 9 last year in Abuja, during the 2020 International Anti-Corruption Day. It is a collection of processes taken from the Standard Operating Procedures of stakeholders in the port sector, and it aims to improve operations, service timelines, efficiency, and accountability at the ports.

Another good initiative of the NSC is the idea of dry ports and Inland Containeer Depots (ICDs). The fact that the NSC has grown in strength and is at the forefront of promoting National and global sustainability inspired the government to come up with its “step-up” strategy to build dry ports in different areas of the country. This step is now yielding fruits, and it will help generate foreign exchange for the government as Chad and Niger Republic will take advantage of them.

On Friday May 21, Transport Minister, Rotimi Amaechi, was in Ibadan Oyo State to inspect the level of completion of the Ibadan dry Port. Oyo State Governor, Seyi Makinde was very happy with the port project. At a meeting  he held with Transport Minister  over the dry Port, an elated Governor Makinde, disclosed that the state has plans to invest for 15% equity in the proposed dry port. He also disclosed that the Lagos-Ibadan rail corridor would have a business district created around it.

“We visited the Ibadan railway station and the dry port. I restated that our state government is prepared to invest to get 15% equity in the dry port” the Governor said.

I also confirmed that we had reconstructed the major road around the rail corridor – the 65km Moniya-Ijaiye-Iseyin road. And that our plan is to create a business district around the rail corridor which will include total reconstruction of link roads in the area,” Makinde stated.

Hon. (Mrs) Tolulope Akande-Sadipe K.the Member representing Oluyole Federal Constituency & Chairman House of Representative Committee on Diaspora,  is also happy about Amaechi visit to the Port. She disclosed her role in the project and appealed to Governor Seyi Makinde of Oyo State not to lose the Ibadan Inland Dry Port to Ogun State.

Akande-Sadipe who was a Special Adviser on Projects and Public-Private Partnership to late Senator Ajimobi said that her sweat and the support of her late boss secured the Ibadan Inland Dry Port. She further revealed that the project was conceptualized by her during the last administration.

The lawmaker said “The idea sprung up on a visit to Lagos to see my mother, the traffic from trucks queuing to get into the Apapa ports led to the brainwave that this could be another economic opportunity for Oyo State, which had an advantage based on its geographical position and the new train line from Lagos. Knowing that this would further stir up the economic revival in our beloved Oyo State. I approached the Governor with the idea and he gave his consent to commence the leg work.”

“I contacted Mr. Hassan Bello led Shippers Council through Mr. Anifowoshe who was based in the Ibadan office in 2018 and extensive talks about decongesting Lagos by setting up an Inland Dry Port in Oyo began.”

“The rationale for Olorisha Oko was based on its location as the point where the first phase of the new train line from Lagos to the North passing through Ibadan would terminate. That way, containers could be shipped by train from, Lagos ports to Ibadan and further on with the completion of other stages of the project, as is the case in developed Nations. I and my Bureau of Investment Promotions and Project Office team most especially Mr. Kunle Olusina with the support of our principal, the Governor late Senator Abiola Ajimobi worked tirelessly to make it a reality”. She spoke.

“I put so much effort into making the inland dry port a reality, my sweat and support from Ajimobi secured the Federal government approval of the project during the administration of Koseleri Late Senator Abiola Ajimobi.

The lawmaker noted that the Inland Dry Port would bring about 24,000 direct new jobs and also attract new investors and big corporations to take advantage of the free trade zone. We all know what that will mean to the youths of Oyo State – Job creation, both blue and white-collar

The Oyo State Government and the Federal Government proposed Inland Dry Port was estimated as an investment of approximately a whopping sum of $99,665,626 (N35.9bn), which is expected to ease the pressure on the Apapa Seaport and the perennial gridlock on the Oshodi-Apapa Expressway as well as make the ardous task of import clearance mire accessible to the hitherlands of the SW and the Northern part of the Nation.

Bello at that time said that the project would have equipment parking, truck parking, among other facilities, and would occupy 90 hectares of land, which was provided by the state government.

She gleefully prayed that progress will be made as she looks forward to attending the opening ceremony as a proud daughter of Oyo State.

Full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, linking major cities in the South West including Lagos, Ibadan and Abeokuta.

With the success story of the Ibadan Dry Port, other states have also begun plans for a dry port with Kano State disclosing that its inland port will cost $27 million and would be completed fully in December. The launch of operations at Kaduna appears to have helped accelerate progress on the other ports. In November 2015, five months after the inauguration of the Kaduna facility, Simon Lalong, the governor of Plateau State, said that he was looking into resuscitating plans for an inland container facility. The original plan, conceived as a component of the federal government’s strategy in 2006, had been cancelled by the previous state administration. The state is now once again looking for private investors to develop the project.

It is on record that in March 2006 the Federal Executive Council approved plans for six dry ports to be developed under public-private partnerships using a build-own-operate-transfer model. Eight locations were chosen for the facilities, which will have the same functions as seaports, including the ability to process cargo and clear it through Customs.

The ports, to be located at Ibadan in Oyo State, Isiala Ngwa in Abia State, Jos Heipang in Plateau State, Bichi Village in Bauchi State, Gombe in Gombe State, Bulunkutu in Borno State, Zawachiki in Kano State and Zanfarawa-Funtua in Katsina State, will have a combined capacity of 179,000 twenty-foot-equivalent units. Concessionaires were also approved for the developments, which will be operated by private consortia for 25 years. These include Catamaran Logistics, Dala Inland Dry Port, Dunca Maritime, Eastgate Terminal, Inland Containers Nigeria, Equatorial Maritime and Migfo Nigeria.

All these are made possible through the effort of the Nigeria Shippers Council. Its success in providing  roadmap for sustainable economic development and helping to reduce cost of ports operations along the Ease of Doing business programme of the Federal Government  has been phenomenal with its Executive secretary Hassan Bello at the steering.

Under the leadership of Hassan Bello at the Nigeria Shippers Council, Nigeria is seeing a comprehensive advancement in ports operations and development of intermodal transportation that keeps pace with the rhythm of the modern era, anticipates a promising future, and achieves rates of development and growth that can dazzle the world.

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Saving and Empowering the NYSC Scheme

PRESERVATION of a significant national tool for peace-building, understanding, security, national integration development and future leadership is something that all must take seriously.  This is why many discerning Nigerians find it very disturbing that some members of the national Assembly could raise a motion, calling for the scrapping of the NYSC at a period the scheme is most needed.

No lover of peace, unity and continued development of this country will want this to happen. The NYSC is a vital national tool of integration, and it provides the foundation of national consciousness and identity, and access to leadership and entrepreneurship training as well.

Arguably The TELESCOPE Magazine suspects that some elements in the House of Representatives are scheming to cancel this vital tool, so that they can divert the funds meant for the scheme for their own selfish use. Then how will Nigerian youth have a sense of national belonging? This is evil! It is an agenda of the devil!

The NYSC underpins Nigeria’s philosophy and ideology of tolerance, accommodation, national integration and mutual understanding. The ideology centres on national altruism and equilibrium in advancing the country into the future while doing away with all negative social prejudices and imposition of hierarchy in cultural, social and religious systems.

To attempt to uproot such a vital platform is to throw the country into further chaos. Of course, concerned members of the National Assembly have the right to raise their concerns on security and safety of NYSC members, serving in different areas, a place where they live in away from home. But calling for its scrapping makes no sense at all.

The day they chose to present the motion on the floor of the House of Representatives, they were lucky no stones were thrown at them with a group of young men and women hurling abuses at them. Unarguably, one understands their anger over attacks on corpers in some areas.  Of course, attacks on NYSC members by deviant elements in society is a cause for concern, and must never be allowed. But calling for the scrapping of NYSC scheme is a proposition lacking in logic and intellectual vitality.  To say the least, the bill looks to be a backward trend.

It is becoming a very frightening trend today to see bad behaviours and attitudes displayed by many young Nigerians in almost every corner of the country. Some behave badly and indecently in front of others and think that it is okay to do so.

Many of these bad behaviours and attitudes and violence would have become standards and a culture in younger generation today if not for the moderating influence of the NYSC Scheme. It infuses the youth with nationalism and civilizing values of national integration that make them see others as human beings whose differences,  feelings, opinions, religions  and rights must be accommodated and respected.

Participants of the scheme carry in them the civilizing mission of the NYSC, and are always promoting values of understanding, tolerance and national unity in their immediate environment after the service, promoting national integration and will continue to influence generations in future.

Expectedly, Corps members are supposed to feel happy, safe, secure in any part of Nigeria and not be intimidated by anyone or any group, in any form. And this is where the National Orientation Agency (NOA) and local government councils must come in, educating members of  transport unions, religious organizations, market women leadership,  youth organizations, CDAs and CDCs, local chiefs and community leaders on the need for proper protection and support for corp members posted to their communities.

The NYSC is a national treasure and a must keep, no matter what the circumstance is. These are many pieces of evidence to support this. Unfortunately, those criticizing the scheme do not know its significance and value as a tool of  peace and national integration. Remember, to progress into future, we need peace, unity and understanding to plan that future.

We owe a great debt to General Yakubu Gowon (GCFR) and those who worked with him, especially Prof Adebayo Adedeji, that inimitable legend of exemplary stature, to build the scheme from scratch and to the government of the day, who respects its importance, independence and crucial roles in peace-building,security, national understanding, in the economic, scholarly and democratic life of the country.

The gesture by Preisdent Muhammadu Buhari to employ siblings of the 10 NYSC members killed in Bauchi State during the 2011 general elections gives credence to our belief.  Here is a leader of exceptional insight who looks beyond time from the perspective of where and what Nigeria or the world is today for a peaceful co-existence of Nigerians in times ahead. Praises also go to the NYSC D-G Brig-Gen (Prof.) Shuaib Ibrahim for his stewardship of the scheme. His suggestion to government to re-open NYSC orientation camps last year helped to finish the #EndSARS Protest.

To be the “Richest black nation” in the world, we also need to live in a country with the values of tolerance and accommodation, that is safe, united, secure, healthy and environmentally-friendly. The NYSC makes these a foundation in people’s lives so they appreciate benefits, take ownership of changes and participate meaningfully to achieve goals and visions in life. They abandon negative attitudes and behavior, which are the greatest obstacles to development in Nigeria.

We believe it is time we adequately fund and improve the NYSC . Consistent funding and support for the scheme is needed to enable it to effectively manage and make youth well-trained, self-accountable, properly disciplined to take advantage of evolving technologies, and foster innovative projects and research. We understand it will be a massive effort, when our country is struggling. But remember, there is no future without peace. So all effort must be put into saving and energizing the NYSC  scheme further.

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Oil Price rise and the Challenge of Economic Diversification

Economic prospects of Nigeria and other African oil producing countries of Angola, South Sudan are looking bright with the consistent rise in oil prices over the past few months.  Brent crude has witnessed steady rise of more than 90 per cent since November last year. If the high prices are to hold up for longer, these countries are sure to witness rapid economic revival from the impact of prolonged oil slump and COVID-19, which had weakened their fiscal positions, accumulated reserves. This is especially true in respect to Nigeria, runs a deficit budget. The same situation go on in Angola, not to talk of South Sudan. In Nigeria there is need to invest in repairing local refineries, so that subsidy payment does not eat up the gains of the present wind fall. Nigeria is unique because of its production of Bonny Light crude oil, which is used to fly aircraft.it should be refined in Nigeria.

The latest Regional Economic Outlook (REO) from the International Monetary Fund (IMF) had noted in April that oil prices and early vaccine roll-outs support the outlook for many   economies. The recent increase in oil prices is sure to boost confidence, supporting non-oil GDP, which was projected to expand by 2.3 per cent in 2021, with an assumption of average Brent prices around $60 a barrel.

With the brent prices crossing $72 in the last week of June, various forecasts suggest that crude prices could cross $100 in 2022. A Bank of America Merrill Lynch (BofA) forecast recently said Brent will now average $68 a barrel in 2021, compared to an earlier estimate of $63 per barrel. BofA sees the Brent price averaging as much as $75 a barrel in 2022, up from a previous forecast of $60 per barrel.

Nigeria and many other oil dependent economies were impacted by long term decline in prices since 2016 that was accentuated by further collapse in demand following the COVID-19      pandemic.

Between mid-2014 and early 2016, the global economy faced one of the largest oil price declines in modern history. The 70 per cent price drop during that period was one of the three biggest declines since World War II.

Booming US shale oil production played a significant role in the collapse of oil prices from mid-2014 to early 2016. Efficiency gains in the sector lowered break-even prices considerably, making US shale oil the de facto marginal cost producer on the international oil market.

Although supply side interventions by the Organisation of Petroleum Exporting Countries (OPEC) led by Saudi Arabia have been able to limit the oil slump with limited success, the longer-term sustainability is largely a function of global demand.

Look beyond cycles

While the global oil majors and most analysts do not see oil heading to a new super cycle, they acknowledge that prices still have room to rise from current levels because of a strong demand rebound and expected tightness in supply. Trends and cycles in oil demand and prices will remain a major driver of the Nigerian economy for a long time, just as for the Gulf region. There is now urgent need to double up on the path of economic diversification.

The long-term demand slump and low oil prices had driven home the need to diversify government income streams triggering deep fiscal and structural reforms in many sub Saharan African economies in recent times. At the local level min Nigeria here, government should take urgent steps as follows.

First, the country should make its bottomless well of resources to back its currency- the Naira at a rate of N50 to the American dollar while it should do its refining locally. Despite all the talks about oil going out of fashion, Bonny light stands its ground for many years to come. This is a great weapon in the hand of the Nigerian government to negotiate its loans.  Without Bonny light no aircraft can fly. So Nigeria flies the world and our economists know this! Why not help government with advice?

Two, FG should pour stimulus packages on small businesses and artisans.

Three, the country should stop giving its crude resources away to the West and China in crude form, more or less giving them for free with the present value of the Naira. These people have nothing for Africa. No plan to make Africa rise and China is the worst of them all!  So effort should be made to ban timber export forthwith, whoever needs our timber should come establish factory to process it here.

Four, Nigeria government should scale up agriculture and its value-chain, and export processed products. Three, Nigeria government should activate entrepreneurship and infrastructure. Five, the government should involve in massive human capital development to realize President Mohammadu Buhari vision of lifting 100 million people out of poverty.

The revival in the global oil demand and prices is an opportunity for Nigeria, and African oil countries governments, to accelerate their efforts towards further diversification rather than slipping back to the boom bust cycles dictated by oil market volatility.