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Monday, 2 April 2012

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Why Jonathan is yet to sign budget

By
•Dr Jonathan 
•Dr Jonathan

THE President is yet to sign the budget because of some technical errors in the document, The Nation learnt at the weekend.
But the Budget Office and National Assembly committees may meet this week to “clean up” the document. After the clean-up, the Budget Office will then advise Dr Goodluck Jonathan to sign the document or not.
After harmonisation, the Senate and the House of Representatives on March 15 passed a budget of N4.88 trillion with a benchmark of $72 per barrel.
The vote was increased from N4.65 trillion proposed by the Executive.
It was gathered that although the budget was passed on March 15, the Executive did not get the details until last Wednesday from the National Assembly.
A source, who spoke in confidence, said: “The main bill was submitted two weeks ago, but the government did not get the details until March 28.
“These details were about 3,000 pages and upon the receipt of these, the Budget Office and the Ministry of Finance worked round the clock to analyse the details.
“The Budget Office had completed the analysis yesterday but it noticed some technical errors in the bill as passed by the National Assembly.
“These technical errors have to be cleaned up before the Budget Office can advise the President to assent the 2012 budget or not.”
Asked to be specific on the technical errors, the source added: “For example, there are some ongoing projects in the Niger Delta but no money was allocated for their completion. The funds meant for the projects were put elsewhere.
“Also, since the National Assembly raised the benchmark to $72 per barrel, it means automatically that statutory funds for the NDDC and the Universal Basic Education Commission (UBEC) will go up. But the reverse was the case in the bill sent.
“We have many other errors like that which we need to clean up.”
Responding to a question, the source added: “There is no disagreement between the Presidency and the National Assembly at all on this budget.”
Another official in the Budget Office said: “The budget has not been sent to the President for his signature because of some “irregularities” with the budget the legislators passed.
“The irregularities noticed in the 2012 budget by the ministry and the Budget Office had to do with some components of the budget like the administrative capital which the Executive had drastically reduced to free up more money for infrastructure development. The National Assembly retained some of the Administrative Capital.
“Administrative capital deals with the funds in the budget set aside for the provision of office furniture and equipment, which the government believes could be forfeited to make more money available for other serious capital projects - in line with the administration’s desire to deliver on social infrastructure.
“Also, the budget figures for the Legislature were said to have been jacked up by the National Assembly. This does not go well with the Executive.”
Despite these irregularities, the Budget Office official said President Jonathan is anxious to sign the 2012 Budget into law.
The official also denied any friction between the executive and the legislature, stating that “the executive has done its ground work to ensure that there is no conflict of interest between both arms of government”.

DERIVATION: The North’s conspiracy against us – Sen Enang

By Vanguard: Emmanuel Aziken, Political Editor & Bartholomew Madukwe Senator Ita Solomon Enang has since 1999 been a pivotal part of the machinery of the Nigerian National Assembly. First as the Vice-Chairman of the House of Representatives Committee on Rules and Business in 1999, and subsequently as chairman of the committee, Enang is believed to have since then had a hand in all enactments to have come out of the National Assembly.
It was not surprising then that upon his election into the Senate to represent the Uyo Senatorial District in 2011 that he was named the Chairman of the Senate Committee on Rules and Business. A lawyer, Enang was born on 23 August 1962 and attended the Presbyterian Teachers Training College, Ididep, Akwa Ibom State (1974-1979) and subsequently the University of Calabar, Calabar between 1980  and 1984 where he read Law.
Enang cut his political teeth with his election as a councilor in 1987. He was elected to the Akwa Ibom State House of Assembly in 1992 before he was elected to the House of Representatives in 1999 to represent the Ibiono Ibom/Itu Federal Constituency. He won re-election in 2003 and 2007 before his election to the Senate in 2011. Enang spoke in an interview on the issues pertaining to revenue derivation and distribution among other issues. Excerpts:
WHERE do you stand on the dispute over the implementation of the derivation principle in the sharing of federal revenue?
I stand on the principle that the derivation principle should be reviewed by raising it upward to between 25% and 50% because the constitution says that it should be a minimum of 13%. It should be raised by way of an Act of Parliament to make it between 25% or 50%. Afterall, under the 1960 constitution derivation was 50%.
Again I want to say that it is only oil that is contributing to the revenue and other solid minerals are not contributing. What I have discovered is that the North has so much solid minerals and even oil but they are not exploiting. It is hidden under what they call “illegal mining”. In Kaduna there are so many solid minerals, but they are  being mined by individuals and sold without anything being paid to government.
In Nasarawa State, the governor, some days ago, even signed a Memorandum of Understanding (MoU) with an agency to prospect and exploit mineral resources for Nasarawa State to earn revenue and increase their revenue. In Bauchi State and the  Chad region, there is oil but it is not being exploited yet. Also in Borno State and Yobe State because these are states bounded by the Chad-Basin.
In the Chad-Basin, which surrounds Cameroun, Chad, Niger Republic and Nigeria, Niger Republic has oil within that basin, which is about 20 kilometers from the boundary of Nigeria. They have exploited oil and even have a refinery there. And it is suspected that Nigerians, big Nigerians of some extractions, own the rigs and the mining rights; and it is them- the big Nigerians, who sponsored and installed the refinery there in Niger Republic. But instead of putting the rig on the soil in the Nigeria end of the Chad Basin, they put the rig in the Niger end and are then exploiting the oil from Niger, paying revenue to Niger Republic.
Senator Enang
Chad has oil, still from the same basin, it is exploiting the oil. Cameroun has oil within the Chad Basin. All the countries around the Chad Basin are drilling oil. Why is Nigeria not allowing the exploitation or exploration of oil in the Chad Basin?
I want you to go to the website of the Energy Commission of Nigeria and look at the address that was delivered last (penultimate) week, by the Director General of Energy Commission of Nigeria, where he said the same thing. That Nigeria is deliberately not exploiting oil in the Chad Basin in Borno, Yobe and all those areas because there is oil that has been discovered there and so much money has been spent by Nigeria in discovering oil in those places.
Is this deliberate, and on whose part?
It is deliberate; it is on the part of Nigeria or Nigerians who are from there. They do not allow the oil to be exploited because, in my opinion, it is to preserve that oil until the one of the South is finished. But it does not work that way; because when they stand to drill oil in Niger, they are drilling the oil that is in that basin.

So even if you are standing in Nigeria, if it is to finish it will still finish because there is this lateral drilling or horizontal drilling that wherever you put your rig there in the oil bed it is the same oil. Within a specific area it does not matter where you stand to drill.  It is just like water, it has a water bed. When you put your rig, you take the water from within that particular area. Therefore Nigeria should, instead of talking of revenue allocation, we should be talking more of revenue generation.
Let every part of this country that has oil minerals cause its own to be exploited. And I believe that if we reach a situation where people or the states are allowed to exploit their own minerals and pay a percentage to the Federal Government, all the states will be able to produce. If you go to Kebbi State, Sokoto State, there is this diamond and lots of precious stones, including gold.
But we have a Ministry and Minister of Solid Minerals?
The minister should resign and the Ministry of Solid Minerals should be scrapped and merged with the Ministry of Petroleum Resources and renamed Ministry of Mineral Resources. So that it will be incharge of all minerals issues, whether it be liquid, solid, petroleum or solid minerals so that it could know that revenue from minerals is revenue from minerals.

A new Northern group has alleged that too much money going to the Niger Delta is breeding corruption in the region
(Cuts in)…

That is not correct. Come to Akwa Ibom State and see come and see how money that is derived from derivation is being put to use. Or is that what has caused the entire Niger Delta to be given less amount of money that is given from the federation account to the Federal Capital Territory (FCT).
The Federal Capital Territory alone uses over N400 billion naira to construct its roads annually. How much of it goes to the Niger Delta? The roads that are constructed in Abuja, in Kaduna, in Lokoja, all those infrastructure in Kaduna, where is the money coming from? It is from oil of the Niger Delta. It is time that other parts of this country that have minerals should allow their minerals to be exploited so that something would go into federation account.
Otherwise, let it be that whoever has mineral exploit it and pay something into the federation account. Let Kaduna State not hide behind illegal exploitation. Let Bauchi State not hide its own oil. Let Yobe and Borno States not hide their oil. Let Kebbi and Sokoto State not hide their diamond and gold.
The Northern Governors are equally calling for the strict application of the offshore/onshore dichotomy in the sharing of revenue.
Offshore where? Offshore from the coast of Nigeria area. What makes that area part of Nigeria is because of the littoral states and all the littoral states suffer the effect. Those areas in the continental shelf became the continental shelf of Nigeria because they belong to part of a state of Nigeria. If they were not part of a state of Nigeria, then you wouldn’t have the right to go and exploit oil on that offshore.
It is offshore the coast of Nigeria, because it is offshore the coast of Akwa Ibom State, Bayelsa State, Rivers State, Delta State, Lagos State, which are part of Nigeria. Can we say that of Cotonou, or Benin Republic? We cannot say because those are not parts of Nigeria. Can we say that of Ivory Coast,  or any part of Ghana? No! Because those are not parts of the coast of Nigeria. They are not part of any state of Nigeria. That is why, since our continental shelf overlaps that of Equatorial Guinea, that is why we have joint development zone with Equatorial Guinea.
If our territories did not overlap, if part of Akwa Ibom State and Delta State and all those areas in Gulf of Guinea and Bight of Biafra were not part of those littoral states in Nigeria, then you would not have a joint development zone for the purpose of producing oil in that area. So that argument does not follow logical.

Ex-militants bomb five Agip oil wells

By Vanguard Reporter (Emma Amaize) YENAGOA — WHILE Christians trooped to the churches, yesterday, to mark Palm Sunday in commemoration of the triumphant entry of Jesus Christ into Jerusalem, suspected ex-militants stormed the National Agip Oil Company, NAOC, with explosives and bombed five cluster oil wells belonging to  the company.
The oil wells, according to information available to Vanguard, are located between River Niger and Tailor creek in Yenagoa Local Government Area of Bayelsa State.
It was reliably gathered that the bombing of the oil wells was led by an ex-militant leader, identified as “Commander” Cairo.
The ex-militant leader, who confirmed that he actually led the “operation” in an interview with Vanguard, yesterday, said: “We, among other things, are protesting the underdevelopment of Niger Delta by the Federal Government.”
Reminded that the President Goodluck Jonathan hails from the same Niger Delta, he (ex-militant leader) said was underdeveloped, “Commander” Cairo said: “It does not matter whether he is from Niger Delta, the problem is that the region is underdeveloped. We will continue to bomb oil installations until they realise that they have to come and develop our region.”
Asked if the ex-militants who bombed the five oil wells did not encounter men of the Joint Task Force, codenamed Operation Pulo Shield, on the way, he said: “We did not meet soldiers and if we met them, we would have killed them.”
He said he was a member of the third phase amnesty programme, adding that he and many others were not accommodated in the post-amnesty programme by the Federal Government after they were wooed to surrender their arms by the government, with promises of rehabilitation and training.
He said: “Tell them, what we will do after this time if they don’t come to develop Niger Delta will be dangerous. We will  bomb vital installations of the Shell Nigeria Exploration and Production Company, SNPECo, in our next onslaught and nobody will be spared.”