Business
LCCI calls FG to investigate theft before fuel subsidy removal
by Omolola Dede Adeyanju
The Lagos Chamber of Commerce and Industry (LCCI) in a statement signed by its President/ Chairman Dr. Michael Olawale Cole CON has called on the government to make the required effort to identify and investigate the select group of individuals that plundered Nigeria’s national wealth and enriched themselves through the fuel subsidy regime, saying that they should be brought to book to prevent a recurrence of such criminal actions that have destroyed the economy.
The council commended President Bola Tinubu on his second State of the Nation address as the country grapples with the short-term economic hardship resulting from subsidy removal and exchange rate harmonization.
Olawale-Cole stated, “The President’s address showed leadership, responsibility, and accountability, and he demonstrated empathy as he unveiled a broad plan to ease the cost of living pains for Nigerians. He also provided clarity on the palliative measures and strategies for implementation.
“LCCI also commends the President on the palliative plan to support businesses, the working class, and the most vulnerable, as well as a policy intervention to check rising inflation and ensure exchange rate stability. The President covered most of the strategic sectors of the economy, but nothing was said about security, which is a critical factor in national development. The President described the plan to spend the N500 billion ($652 million) package to boost the economy by easing transportation costs, boosting manufacturing, and enhancing food supply. It will also provide conditional grants to at least a million small businesses.”
The President of the Council emphasised that to ensure affordable food prices, it is good that strategic reserves of grains will be released to households, and support for agriculture, including farmland cultivation, will be a priority.
According to him, “These plans demonstrate that the President is listening to Nigerians. The Chamber supports the move to invest in the manufacturing sector. However, it would be pertinent to consider more enterprises as 75 enterprises would not significantly impact the economy. However, we commend the effort to kick-start sustainable economic growth and improve productivity. We believe that if this plan is rigorously pursued, economic growth through the real sector of the economy would be achieved and could revive Nigeria’s sluggish industrialisation and expand the GDP.”
He expressed the wish of the council to call attention to the cost of funds. The plan, he said, “is to offer loans to 75 scalable enterprises with enormous prospects at 9 per cent per annum, repayable over a maximum period of 60 months. The government would need to closely monitor the banking sector in the provision of these loan facilities so that the eventual cost of funds is not above 9 per cent from other banking fees and charges. It may be judicious to stipulate that the total costs of funds is benchmarked to 9 per cent regardless of the charges and fees.
“The focus on improving public transportation, including providing buses to be fueled by compressed natural gas (CNG) for deployment in all the states, is a means to provide affordable transportation across Nigeria. This will help ease the problem of moving persons and goods across the nation. It will also reduce the cost of doing business which burdens most small enterprises.
“The Chamber hereby expresses concerns about the role of the State and Local governments as well as transparency in the implementation of the palliative strategies as the government plans to introduce an Infrastructure Support Fund for the states to invest in critical areas and revamp healthcare and educational infrastructure.”
The chamber urged the government to ensure smooth and promising implementation of the measures and regularly engage the citizens and the organised private sector to ensure accountability.
“There should be proper monitoring and evaluation of the implementation process to ensure benefits to the people.
“We also wish to nudge the government to share in the sacrifice made by Nigerians by reducing the high cost of governance in all its tiers and ensuring fiscal leakages and corruption are strategically dealt with. As we commend the government’s courage in enacting a series of policies, we trust that government would be courageous enough to cut the cost of governance. This will demonstrate to Nigerians that the leaders share in the suffering and sacrifice of the people. The perks available to public office holders are so enormous that it is difficult for the average Nigerian to understand why they suffer so much and those in leadership are unaffected. We urge Mr. President to do the needful, and we expect further announcements on the measure to cut the cost of governance.”
As mentioned, he said, “Security has not been given sufficient attention. It is also of utmost importance to deal with the issue of insecurity because, without security, there can be no prosperity. If the issue of insecurity is not adequately dealt with, the implementation of these strategies could be in jeopardy.
“The issue of oil theft must not be sidelined at this stage, as it has critical implications for the rule of law and our economic well-being as a nation. This will demonstrate that there is a holistic effort to revamp the economy and chart a new path for Nigerians. Government should also track down and apprehend the culprits of oil theft as this will act as a deterrent and communicate powerfully that crime must be punished.
“The fuel subsidy regime is sometimes described as a scam due to the opacity and lack of integrity of the arrangement, and it has indeed become a burden on the economy and a source of enrichment for a select group of individuals. Therefore, the Chamber calls on the government to make the required effort to identify and investigate the select group of individuals that plundered our national wealth and enriched themselves through the fuel subsidy regime. They should be brought to book to prevent a recurrence of such criminal actions that have destroyed our economy. Going forward, the system should also have sufficient transparency, accountability, and integrity, particularly with product pricing.”
By Opeyemi Abdulsalam
The NDIC has identified a issue with former Heritage Bank customers’ account names not matching their BVN records, leading to delays in refunding their deposits.
According to the NDIC, discrepancies in account names associated with former Heritage Bank customers’ BVN numbers are hindering the timely reimbursement of their deposits.
Recall that the NDIC has undertaken to begin payment of the 2.3 million depositors following the withdrawal of Heritage Bank’s operational licence.
The commission noted that 99% of the bank’s total customers had deposits less than N5 million.
The NDIC Managing Director, Mr. Bello Hassan, told the newsmen in Abuja on Sunday that a substantial amount has been paid to depositors without BVN-related issues.
He urged those that are not receiving their payments to visit the NDIC website to complete verification forms, including those without BVN-linked accounts.
He said, “We have already commenced the payment of customers since June 6. We have paid a substantial amount to the customers. What we leverage in making the payment is the BVN of customers. We trace alternate accounts in other banks and pay them their insured amounts.
“There are some that we have challenges linking up because of some discrepancies between the names and others. We are calling on customers who have not received their alerts in their alternate accounts to come forward and complete their verification forms so that we can pay them.”
Hassan stated that depositors with more than five million naira would receive a liquidation dividend.
He mentioned that the NDIC has begun selling the bank’s physical assets and is working to recover loans and advances previously granted by the bank.
According to him, “That is what we use in paying those liquidation dividends. We are not going to wait until we recover everything, no. As we recover, we will also advertise to say that we will pay liquidation dividends so that concerned depositors will be on the lookout for alerts in their accounts.”
By Esther Agbo
The Director of Consultancy & Executive Services at the Nigerian Building and Road Research Institute (NBRRI), Makava David, has revealed that using alternative building materials like bricks and laterite can reduce housing construction costs by 25 to 30 percent, making homeownership more attainable for Nigerians.
He announced this over the weekend in Calabar following a presentation at the Cross River State Ministry of Housing. The presentation detailed NBRRI’s partnership with the Regional Sustainable Energy Centre of Excellence for Sub-Saharan Africa to initiate a 3,000-unit low-cost housing scheme across the state’s three senatorial districts, with backing from international agencies and local banks.
Speaking to journalists after the presentation, Mr. David stated that the use of alternative building materials would make houses much more affordable for the average person.
He said, “The cost of materials now is on the high side, the technology that NBRRI is bringing is mainly the use of locally sourced material used in building houses .
“We will use clay for the blocks, fibre for the roofing sheets and this will practically bring down the cost of the building up to 25 to 30 percent compared to conventional building material.
“The aesthetics is next to none, when it’s cold outside it’s warm inside and when it is hot outside it’s cool inside, that is why we are bringing this technology to the good people of Cross River with a payment period of 30 years, so that our people can have affordable houses they can call their home.
“Our target and the mandate of the consultant is to provide 3,000 units of low cost housing units in the three Senatorial districts of the state, and it takes less time to build once the materials are in place.”
Cross Rivers Commissioner for Housing, Dr. Beatrice Igwe, expressed government support for the initiative, highlighting Governor Bassey Otu’s commitment to projects that improve living standards. She lauded the tripartite meeting as a significant step towards reducing the state’s housing challenges by providing affordable, quality housing.
She noted, “The tripartite meeting you just witnessed is the birthing of a project that can reduce the housing challenges of the people of Cross River with a view to giving them modest and affordable housing.
“Alternative building materials are the future and the way forward. The presentation we have witnessed has shown that if properly executed there will be progress as well as a boost in the availability of low cost housing in the state.
“I can assure the partners , and other stakeholders that our Governor who has always put the people first , will key into any programme that will alleviate the suffering of the people and improve their living standard.
“I believe he will surely key into any good program that will make life comfortable for the common CrossRiverian.”
Project facilitator Sir Clay Ogeh Ekpong noted the state’s housing deficit, which prompted the outreach to both foreign and local partners to initiate low-cost housing estates.
He praised Governor Bassey Otu, describing him as a people-friendly leader, for his full support and commitment to the housing scheme.
Ekpong emphasised that the project aligns with the governor’s vision of providing homes for Cross River residents, significantly reducing housing challenges. He stated that plans are underway to construct 1,000 bungalows each in Odukpani, Ikom, and Ogoja/Yala local government areas.
Additionally, the CEO of RSECESSA, Dr. Ibrahim Aminu, expressed enthusiasm and anticipation for the project’s start.
CEO of RSECESSA, Dr. Ibrahim Aminu, expressed enthusiasm for the project’s commencement, noting that it aims to deliver affordable, high-quality housing without financial strain on buyers. The broader program targets building one million houses across Nigeria and the FCT, in partnership with NBRRI.
Aminu stated, “The partners have already put plans in motion to make the project a reality, the idea of reducing the challenges of housing is one aspect and then using alternative materials to build is another major aspect with a view of giving the people quality for their money without breaking the bank.
“We want to ensure that we bring affordable housing to our people and make sure they can also pay for these houses with ease and no pressures, and after retirement they can own good houses at the end of the day.”
By Esther Agbo
Minister of Works, Sen. David Umahi, has issued a warning that the Federal Government is prepared to terminate contracts with Julius Berger, CCECC, and RCC firms involved in two major South South road projects if they fail to demonstrate commitment within one week.
Speaking in Uyo, the Minister addressed Senate President Godswill Akpabio and other stakeholders from Akwa Ibom, emphasising President Bola Tinubu’s intention to launch the Calabar-Akwa Ibom sections of the Lagos-Calabar Coastal Highway by August.
Umahi specifically identified the Eleme-Onne Section of the East-West Road in Rivers State under RCC, and the Calabar-Itu Road sections managed by Julius Berger and CCECC as projects of concern.
He criticised the contractors for prolonged delays and incomplete work, accusing some of lobbying government officials to avoid penalties from the Works Ministry.
Umahi stated, “By end of this coming week, if Julius Berger fails to re-mobilise to site and CCECC fails to re-mobilise to at least 3 Sessions, their jobs will be terminated.”
Regarding the Eleme-Onne section of the East-West Road, Umahi stated, “The worse of the roads in the entire South South is that Section on the East West Road. RCC has collected over N40 billion. 15km of Road, N156 billion inherited from the past administration.
“We’ve been on them to change their ways. And by the end of next week the 14 days notice of termination will elapse and we will terminate the contract.”
Senate President Akpabio and Akwa Ibom Governor Umo Eno urged Umahi to address other neglected federal road projects in the state and ensure contractors fulfil their obligations to benefit residents and travellers.
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