Business News
Buhari’s rejection of the NHF Bill, a step in the right direction?
The highly anticipated National Housing Fund (NHF) bill, 2018, which had been awaiting Presidential assent, was eventually rejected by President Mohammadu Buhari.
The highly anticipated National Housing Fund (NHF) bill, 2018, which had been awaiting Presidential assent, was eventually rejected by President Mohammadu Buhari.
This was communicated to the Nigerian Senate via letters sent by the President, which was read during yesterday’s Senate Plenary session. Alongside the NHF bill, the President also declined to append his signature to seven other bills.
The other seven bills rejected
The President, for the umpteenth time, rejected seven other bills which included: the Ajaokuta Steel Company Completion Fund Bill, 2018; Chartered Institute of Training and Development Establishment Bill, 2018; Nigerian Aeronautic Research Bill, 2018 and National Institute of Credit Administration Bill 2018.
Other bills rejected are: Small and Medium Entrepreneurship Development Agency Bill, 2018; Federal Mortgage Bank of Nigeria Bill 2018 and National Biotechnology Development Agency Bill 2018.
President Buhari’s reasons for rejecting the NFH bill and the other bills were revealed by the Senate President, Dr Bukola Saraki.
Why Buhari rejected the NHF Bill?
Nairametrics had earlier reported that analysts differ on the implications of NHF bill on the economy. The President reportedly cited several reasons why he could not assent to the proposed NHF bill.
“the compulsory investment requirement imposed on commercial banks, merchant banks, insurance banks and pension fund, administrations of the minimum of 10% profit before tax into the National Housing Fund will be destructive punitive to a number of industries and sectors of the Nigerian economy including cement, manufacturing, banking, insurance, pensions and may also impact adversely affect the average Nigerian worker.”
Ajaokuta Steel Company Completion Fund Bill and others also rejected
As for why the Ajaokuta Steel Company Completion Fund Bill was rejected, the President stated that:
“appropriating $1 billion from the Excess Crude Account is not ”the best strategic option for Nigeria at this time of budgetary constraints, and the nation cannot afford to commit such an amount amid competing priorities”.
The Federal Mortgage Bank of Nigeria Bill 2018
The President justified his decision to decline the Federal Mortage Bank of Nigeria Bill. According to him, the bill failed to spell out in detail, the required qualification and experience threshold of the directors and senior management staff with specific reference to developmental banking, risk management and mortgage loan administration experience.
“The provisions in section 9(2) provided that liabilities of the federal mortgage bank shall be discountable with the Central Bank of Nigeria without specifically stating in the bill that this is subject to usual criteria for normally accessing the rediscounted window of the Central Bank of Nigeria.”
The National Institute of Credit Administration Bill 2018:
The president also rejected this bill. The reason why is because of the bills’ provision that every bank staff and workers of other financial institutions, must hold a National Institute of Credit Administration licence before they are eligible to practice as credible managers. He said the provision “portends a recipe for crisis.”
20 bills already rejected in 2019
The development brings the number of bills President Buhari has rejected in 2019 to twenty. An earlier article by Nariametrics has highlighted all the bills recently rejected by the President.
What is next for NHF bill after rejection?
Considering the grounds upon which the President declined assent on the NHF bill, Nigerians can still expect a revised NHF law in operations soon.
The rejection may be a step in the right direction as the President cited reasons that the contents of the newly proposed NHF laws will severely affect economic agents in the country. This decision may be good for the economy.
Going forward, all hands must be on deck, as important industry stakeholders and experts must be brought on board to embark on a comprehensive review of the NHF laws that will bring prosperity to the Nigerian people.
Energy
Nigeria imported over 55% of cooking gas consumed in October 2020
55.47% of cooking gas consumed by Nigerians in October 2020 was imported, according to a recent report by the PPPRA.
Nigeria imported 55.47% of cooking gas, known as Liquefied Petroleum Gas (LPG), consumed in October 2020, with the remaining 44.53% sourced and supplied locally.
This is according to the monthly LPG supply data, provided by the Petroleum Products Pricing Regulatory Agency (PPPRA). The data confirmed steady growth in the import of LPG, compared with the previous month (19.6%) and the corresponding period of 2019 (13.2%).
- Data released by the PPPRA indicated that the total quantity of LPG both imported and sourced locally in October 2020 was 123.27 thousand Metric Tonnes in Vacuum (MT (Vac)).
- Out of this, 68.37 thousand MT (Vac) was imported, and 54.90 thousand MT (Vac) was sourced locally.
(READ MORE: EndSARS: A day by day timeline of the protest that has brought Nigeria to its knees)
- Imports grew by 19.6% in October, compared with September and by 13.2% compared to the corresponding period of 2019.
- On the other hand, LPG sourced locally declined by 30.8%, compared with the previous month. However, it grew significantly by 219.3% compared with the corresponding period of 2019.
- NIPCO, with Port of Discharge at BOP, Apapa and PWA, Lagos, was the highest importer of the commodity into the country in October 2020, with 32.67 thousand MT (Vac) of LPG, representing 47.8% of the total import and 26.5% of total LPG supplied in the period under review.
- The other importers, according to the data, includes Matrix Energy, 12.46 thousand MT (Vac); Algasco LPG Services Limited, a subsidiary of Vitol, 13.82 thousand MT (Vac); Prudent, 5.63 thousand MT (Vac); and Hyson, 3.80 thousand MT (Vac).
- The origin of the imported LPG was the USA and Equatorial Guinea. The USA supplied 50.27 thousand MT (Vac), representing 73.5%, while Equatorial Guinea supplied 18.10 thousand MT (Vac), representing 26.5%. Imported LPG was discharged at BOP, Apapa; Matrix Jetty, Warri; PWA, Lagos, and Prudent Energy Jetty, Oghara.
(READ MORE: FG gives reasons for fuel subsidy removal, discloses alternative to kerosene)
- NIPCO was responsible for 26.42 thousand MT (Vac) of the total 54.90 thousand MT (Vac) sourced locally in October 2020; Algasco sourced 13.20 thousand MT (Vac); Stockgap Fuels Limited sourced 8.19 thousand MT (Vac), and Rainoil sourced 7.08 MT (Vac).
- The origin of the locally sourced LPG was NLNG, Bonny and BRT. NLNG supplied 47.82 thousand MT (Vac), representing 87.1%; while BRT supplied 7.08 thousand MT (Vac) representing 12.9%. Local LPG was discharged at PWA, Lagos; Rainoil Jetty, Lagos; Lister Jetty, Apapa; and Stockgap Jetty, Port Harcourt.
What this means
The 30.8% decline in local supply compared to the previous month is particularly worrying, considering the huge proven gas reserves in the country estimated at over 200 trillion cubic feet.
However, the 219.3% increase compared to the corresponding period in 2019 may mean that all is well. The 55.1% increase in locally sourced LPG from 35.40 thousand MT (Vac) in August to 54.90 thousand MT (Vac) in October 2020 appears to further confirm there may be no cause for alarm.
Notwithstanding the improvement, the country needs to make concerted efforts towards developing facilities and capabilities needed to improve local production of LPG, since it has abundant gas reserves.
What you should know
It may be argued that efforts are being made towards improving on what is currently obtainable. In this context, Nairametrics reported that the country has increased its LPG storage capacity to 69,968 Metric Tonnes. The latest addition being the 8,400 MT Tonnes capacity built by Techno Oil in Kirikiri, Lagos.
Coronavirus
COVID-19: AstraZeneca vaccine could be 90% effective against the virus
AstraZeneca has said that its vaccine being developed in collaboration with the University of Oxford could be 90% effective.
British pharmaceutical company, AstraZeneca, announced that the COVID-19 vaccine it is developing with Oxford University is 90% effective and also prevented 70% of trialists from falling ill.
This was disclosed by AstraZeneca on Monday and reported by Reuters and Bloomberg. AstraZeneca said its vaccine was 90% effective when a half dose was issued, followed by a full dose 30 days later.
AstraZeneca joins other major pharmaceutical companies including Pfizer and Moderna in the race to develop a vaccine for the pandemic.
What they are saying
Oxford University said it could be 70.4% effective and tests on two dose regimes show that it could be is 90%.
The company expects to have up to 200 million doses by the end of the year and produce up to 700 million doses by the first quarter of 2021.
The new vaccine also answers issues of vaccine storage and distribution, as it can be kept at basic refrigerator temperature for transport, making it much easier to transport, compared to Moderna and Pfizer’s vaccines.
What you should know
Nairametrics reported earlier this month that Pfizer Inc disclosed that its experimental vaccine, which is jointly developed with BioNTech was more than 90% effective in preventing COVID-19, based on initial data from a large study, in the ongoing phase 3 trials.
Last week, Pharmaceutical company, Moderna Inc, stated its COVID-19 vaccine is 94.5% effective in treating coronavirus, after preliminary analysis of a large late-stage clinical trial.
ENDSARS
#EndSARS: Insurance firms can seek refund after indemnifying victims – MD, NICON Insurance
NICON MD has stated that it is possible for the insurance firms to be compensated by the FG after victims have been indemnified.
The Managing Director and Chief Executive Officer (CEO) of NICON Insurance Limited, Mr. Muhammadu Bagudu Hussaini, has advised Insurance firms to maximize certain provisions in the constitution that guarantees their refund after compensating victims of the recent #EndSARS protest, opining that it is possible for the insurance firms to be compensated by the Federal Government of Nigeria.
He made the disclosure during an interview with the Daily Trust, where he decried the high level of losses encountered during the protest and the imminent high claims on insurance firms, which if care is not taken, might affect liquidity in the system.
Mr. Hussaini stated that the government has the machinery to pay the insurance companies without recourse to treasury, but he was quick to point out that it is a dormant machinery.
What they are saying
Elucidating his points, Mr. Hussaini said: “There will be a large volume of claims which the insurance industry would have to pay. I have no doubt about the capacity of the insurance industry to meet its obligations on claims that may arise from the destruction across the country.
“However, two issues would arise because the context of the claims are huge and would come in at the same time. There will be no spread, thus this will impact the finances of the underwriters and may destabilize their finances.
“What happened was as a result of breakdown of law and order. Section 14 (2b) of the Nigerian Constitution vests the duty of guaranteeing security and providing for the welfare of the citizens in the hands of government – the executive precisely. I will look at the damages from the protest as a failure of the government to provide security and welfare for the citizens.
“The section says the security and welfare of the people shall be the primary purpose of government. Thus, insurance companies have a subrogation right – the right to recover from the government their funds after they pay the claims arising from the destruction.
“Therefore, I advise the insurance companies to pay their claims and seek refund on the basis of Section 14 (2b) of the Constitution of the Federal Republic of Nigeria.”
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