Business
FG set to unbundle Nigerian Railway for concession
By Seun Ibiyemi
There are indications that the Federal Government has concluded it plans to unbundle the Nigerian Railway Corporation(NRC) for concessioning to investors.
Minister of Transportation, Engr.Mu’azu Jaji Sambo, disclosed this during a press briefing at the World Maritime Day (WMD) event in Lagos.
“I want to see the Nigerian Railway Corporation that was abandoned revived. Before I came, plans were on to unbundle the agency. You can’t have an agency that its owner, regulator and operator are the same time. Sometimes you cant run it competitively.
“Government has invested a lot of money in fixing the rails, both standard and no-standard gauges. We can give out some of the lines to private operators to run and let the system be very competitive. This is my vision for the NRC. I pray that my team joins me in running this vision,” Sambo said.
He noted that a situation where an organization would act as owner, regulator as well as operator, cannot make for competitive progress, adding that plans were already on ground to unbundle the corporation before he even came on board as minister.
He debunked the rumour in some media circles claiming that the Federal Government loses N30billion monthly as a result of shutting down of Kaduna – Abuja rail corridor, stressing that it was not true.
Meanwhile, the Minister has raised fresh hopes of disbursement of the Cabotage Vessel Financing Fund ( CVFF), to enable Nigerian ship owners acquire new vessels that comply with International Maritime Organization (IMO) rules on gas emissions.
Sambo, expressed his desire to quickly disburse the CVFF to enable indigenous ship owners acquire new fleet.
He called on ship owners and the Nigerian Maritime Administration and Safety Agency (NIMASA) to provide recommendations on the kind of vessels to acquire with the CVFF.
He said the need for new technology to drive the Maritime sector has not only become necessary but imperative, stressing that no nation can afford to ignore a sector that employs millions of people globally, which is responsible for the transportation of at least 70% of globally-traded goods, and is a major contributor to the GDP.
He that it is therefore imperative that developing countries like Nigeria should take advantage of this declaration by the IMO to explore more partnerships, demand an inclusive and fair distribution of global resources and deployment of relevant technology to aid decarbonization, and control of marine plastic litter and biofueling.
He described this year’s WMD theme,“New Technologies for Greener Shipping” as apt and urged governments and stakeholders to meet the challenges that come with greener shipping.
“Let me reiterate that we all need to recognize that our commitment to a greener future in the maritime industry comes with certain responsibilities on the part of government and private sector stakeholders in the sector. It comes with the responsibility to train and retrain our workforce in order to prepare them for the inevitable innovation and transformations of the future that will certainly impact jobs and skills, he said.
He said that, “As a country, we must not lose out in the future race which will require a workforce of new skills and competencies.
“On maritime institutions, particularly the Maritime Academy of Nigeria, Oron, and the Nigerian Institute of Transport Technology (NITT) must therefore begin to re-calibrate the curricula to begin to address these requirements of the future. Furthermore, a green future equally implies the commitment by the private sector, to invest in more modern platforms and assets which will meet the emission levels of the future.”
In her opening remarks, the permanent Secretary in the Ministry of Transportation, Dr. Magdalene Ajani, noted that the WMD celebration was conceived in 1978, to provide opportunity for maritime member states, and the maritime community as a whole to focus attention on the importance of shipping, maritime safety and protection of marine environment.
“It was also intended to promote IMO’s activities, achievements and objectives in the short, medium and long term, as well as organise events focusing on themes chosen by IMO every year’s,” he said.
In demonstration of its leadership in the Sustainability space, leading financial institution – Fidelity Bank Plc – has emerged the first bank to publish its 2023 ISSB-Compliant Sustainability and Climate Report in the Nigerian banking industry.
Hosted on the bank’s website on 30 June 2024, the report provides insights into the Bank’s Governance, Strategy, Risk Management, Metrics and Targets around Sustainability and Climate-related risks and opportunities, Human Capital, Community Efforts, amongst others in the 2023 financial year.
“2023 marked a pivotal point in our sustainability journey. We became a signatory of the UN Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking (PRB) and the UN Women’s Empowerment Principles (WEP). These associations go beyond mere statements of membership – they actively integrate sustainability and climate-related goals into our core business strategy and daily operations.”
“We believe innovation and transparency are essential for building trust in our strategies and achievements. As we progress towards sustainability, we remain committed to our diverse stakeholders including our dedicated workforce, esteemed shareholders, and valued customers”, remarked Mr. Mustapha Chike-Obi, Chairman, Board of Directors, Fidelity Bank Plc in the report.
The document, which was prepared in accordance with the requirements of IFRS S1 and S2, highlights the bank’s achievements and aspirations as pacesetters within the financial services sector.
Speaking on the bank’s strategy on Sustainability and Climate change, Mr. Kevin Ugwuoke, Executive Director/Chief Risk Officer, Fidelity Bank Plc, stated, “Our 2023 Sustainability and Climate Report details our commitment to continually situate ESG and Climate-related risks & opportunities considerations at the core of our business operations and activities as we constantly explore means of meeting our corporate objectives in a manner that significantly reduces the negative environmental and social effects. We are glad to be the first bank to publish its report as this emphasizes our market leadership in the Sustainability space and we commit to do more to increase our positive impacts in all aspects of sustainability.”
It would be recalled that Fidelity Bank was recently listed amongst the top Nigerian banks in ESG performance according to a survey commissioned by the Independent Project Monitoring Company (IPMC) Limited.
To access the Fidelity Bank 2023 Sustainability and Climate Report, please visit https://www.fidelitybank.ng/documents/Fidelity_Bank_Sustainability_Climate_Report_2023.pdf
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
The Nigerian Content Development and Monitoring Board (NCDMB) on Wednesday constituted a Joint Working Team (JWT) with the Gas Aggregator Company Nigeria (GACN) Limited on gas utilisation and commercialisation.
Speaking at the inauguration at the Board’s liaison office in Abuja, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, acknowledged the correlation between the mandates of the Board and GACN, noting that the collaboration would stimulate gas market expansion and sustainable development and monitoring of the midstream and downstream activities as relate to the Nigerian oil and gas subsector through commercialisation opportunities.
The Executive Secretary, who was represented by the Director, Monitoring and Evaluation, Mr. Abdulmalik Halilu, announced that the aim of setting up the Team is to jointly develop a roadmap and strategise on new modalities for achieving collaboration and coordination among key stakeholders towards the effective commercialisation of Nigeria’s gas resources, thereby enhancing market penetration, fostering investment, and promoting sustainable growth in the Nigerian gas subsector.
While highlighting the responsibilities to the newly inaugurated Joint Working Team, he further charged members to work harmoniously to revisit, review and execute the Terms of Reference.
In his response, the Managing Director, Gas Aggregator Company Nigeria Limited, Mr. Chijioke Uzoho, stated that the Federal Government declaration of “Decade of Gas” is focused on transforming Nigeria into a gas-powered economy by 2030 through a series of policy reforms, gas supply projects maturation, gas infrastructure expansion, capacity building and robust investment attraction strategies.
He assured of initiating the mobilisation of compressed natural gas (CNG) facilities in the host state that houses the Local Content Board, “to encourage the use of CNG as automobile fuel in Nigeria,” adding, “we (GACN) need to develop favourable market-based policies and a natural gas transmission and distribution network; increase availability and access to CNG refueling stations and public awareness; begin with bi-fuel/dual-fuel automobiles in the state and country at large.”
Mr. Abdulmalik Halilu (NCDMB) and Mr. Chijioke Uzoho (GACN) will serve as co-chairpersons on the steering committee. Other members from the NCDMB include Ms. Tassalla Tersugh, Mr. Adedamola Aderibigbe, Mr. Ibrahim Sule and Mr. Brilliant Okon. Representatives from the GACN are Oche Agbese, Tari Mayor-Bright, Somkene Tassie, Muhammed Abdulhamid, Kufre Medo and Ekene Ebenebe.
The terms of reference of the JWT cover three key activity areas, namely, Market Development Initiatives and Strategies, Collaborative Coordination of Industry Events, and Industrial and Innovative Park Development.
By Esther Agbo
Next week, the two chambers of the National Assembly are expected to receive the 2024 Supplementary Appropriation Bill from the presidency, which includes funding for the presidential jet and proposed minimum wage.
The Chairman of the Senate Committee on Public Affairs, Yemi Adaramodu, confirmed this notion, noting that the supplementary budget is projected at around N6.6 trillion, though he said this figure is not official.
“We will receive the supplementary budget next week; N6.6 trillion is a bandit figure, it is not yet official.”
Upon approval, Nigeria will be managing four budgets in the 2024 fiscal year. Recently, the National Assembly extended the implementation period for the capital component of the N21.83 trillion 2023 budget and the N2.17 trillion 2023 supplementary budget to December 31, 2024.
Adaramodu also stated that the supplementary budget would include the national minimum wage. While the Senate has not yet received the minimum wage bill, he emphasised that any proposal from the executive would undergo public hearings involving key stakeholders before a decision is made.
Regarding the speculated N70,000 minimum wage, Adaramodu refrained from confirming or denying it, emphasising the need for caution to avoid controversies stating, “The minimum wage will be captured in the 2024 supplementary budget. Once we receive the bill, whatever the president submits is not necessarily what we will approve. We will hold public hearings involving all critical stakeholders to agree.”
On the proposed presidential jet, Adaramodu mentioned that the Senate would approve it if justified, despite public criticism.
“The request for the presidential jet has not yet come to us. If we can justify it, and we think it’s doable and will not affect budgetary provisions for Nigerians, we will approve it. We won’t let public criticism prevent us from approving something important,” he emphasised.
Adaramodu clarified that Senate President Godswill Akpabio was misunderstood when he said the Senate would approve the jet regardless of public sentiment. He explained that Akpabio meant that the Senate would approve it if necessary.
The proposed budget also includes funding for four projects: the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road, and ongoing railway projects requiring federal funding.
The Minister of Budget and Economic Planning, Atiku Bagudu, informed a joint committee of the National Assembly that the budget would be partly funded by the N50 billion Presidential Infrastructure Development Fund (PIDF), currently held by the National Sovereign Wealth Investment Authority (NSWIA) and also a proposed $2.5 billion loan from the World Bank, he however revealed that the World Bank management is scheduled to convene soon to decide on the loan approval.
Bagudu also highlighted that the budget would support the rehabilitation of dams and irrigation schemes to boost production and allocate funds for Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) projects to enhance energy competitiveness.
Bagudu emphasised that the proposed bill would finance the rehabilitation and expansion of dams and irrigation systems to boost economic production. Moreover, the supplementary budget would allocate more resources to support Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) projects to improve energy competitiveness. The Trans-Sahara Highway will also receive funding from the supplementary budget.
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