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Repealing Pension Bill Will Expose Ex-Governors, Others to Security Risks—Lagos Assembly

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Pension Bill

By Dipo Olowookere

The Lagos State House of Assembly has argued that repealing the law that grants pension and other emoluments to governors and deputies after leaving office would expose them to security risks.

This submission was made on Monday when the bill submitted last year by Governor Babajide Sanwo-Olu to repeal the law was read on the floor for a second time.

The bill is titled A Bill for a law to repeal the law to provide for the payment of pensions and other fringe benefits to public office holders in Lagos State and for other connected matters.

In his argument yesterday, Mr Oluyinka Ogundimu stated that the governors and their deputies and other such political office holders should be made to enjoy some benefits no matter how little.

He also argued that the bill should be amended in such a way that it would not throw former political officers to security challenges since if the original law is repealed, it would mean withdrawing all security agents and domestic staff earlier attached to them.

The lawmaker explained that the bill is to ensure the stoppage of pensions to governors and deputies when they leave office, adding that this decision was in consideration of the country’s current economic challenges.

Another congressman, Mr Tobun Abiodun, in his submission, said he does not subscribe to a total repeal of the law because it would give room to corruption in office, saying provisions should be made available to governors, deputies and possibly speakers after they leave office.

In his contribution, Mr Rotimi Abiru said he supports an amendment to the law instead of a repeal, noting that, “For a person who has served as chief executive of a state, I do not think it is nice denying them of their benefits.”

“I can appreciate that some of them move to other appointments. For these people, there can be a caveat. But for those who serve in that capacity and do not have any other thing to do after office, it may not be something elaborate, but something may be coming to them periodically,” he added.

As for Mr Gbolahan Yishawu, the parliament has the power to make and review laws, especially where it includes one like the pension bill that was passed 14 years ago and needs to be looked at again.

He said the objective of the bill as raised by the executive is to ensure that the state begins to look inward in relation to cost of governance, adding that by virtue of his position as chairman of the committee on economic planning and budget, he has had the opportunity to check the finances of the state and would say Lagos is not very rich, but only has people who effectively manage its resources.

The lawmaker also agreed that the security of the lives of such political office holders when they leave office should be considered urging that the bill be sent to a committee.

The Speaker of the House, Mr Mudashiru Obasa, in his submission, said repealing the law in totality would expose former governors and deputies to security challenges.

“I don’t think we should trash it in totality,” he said as he committed the bill to the House Committee on Establishment with a two-week mandate for a report to be submitted.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Court Dismisses N5.74bn Breach of Contract Suit Against NLNG

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Shedrack Ogboru Macobarb NLNG

By Adedapo Adesanya

A Port Harcourt High Court has dismissed a N5.74 billion breach-of-contract suit filed by Macobarb International Limited against the Nigeria LNG (NLNG) Limited.

The judge, Justice Chinwendu Nwogu, ruled in favour of the gas giant, rejecting all claims by Macobarb in a judgment delivered on Wednesday in the case with suit number PHC/2013/CS/2022, centered on an alleged breach of terms in a contract awarded to Macobarb for access control works at the NLNG plant on Bonny Island, Rivers State.

Recall that Macobarb International Limited, an indigenous contractor, had dragged the NLNG to court claiming over N1Bn (later amended to N5.74 billion) for alleged breaches to a contract (B130142PPI, Access Control) in the NLNG plant area with three years duration.

Justice Nwogu had ruled that the NLNG did not breach its contract with the contractor and that the gas company did not unlawfully deny Macobarb payments.

The judge said work executed by Macobarb did not amount to ‘work done’ as stated in the contract terms except the NLNG approved it as so, and that the provision mandating the person recognized as contract holder nominated by the NLNG as the one to authorize any dealings with the contractor did not mean that he alone could act for the NLNG as relied upon by the contractor.

The judge ruled that the contract holder was a mere day-to-day overseer of the project, and that any official mandated by the NLNG can terminate the contract.

The judge also ruled that the contract did not provide for stand down payment and that the NLNG did not cause delays in the execution of the contract as claimed by the contractor.

The judge also ruled that the payment failures by the NLNG that the contractor claimed affected the contract did not amount to an offence or breach of the contract but that the contractor misused the loan he obtained from banks.

In the end, the judge ruled in favour of all the grounds submitted by the NLNG and none on the grounds by the contractor, and even tongue-lashed the contractor in most of his rulings.

Reacting to the ruling, Mr Shedrack Ogboru, the chief executive of Macobarb, decried the ruling and its ripple effect for indigenous contractors seeking justice against international oil companies (IOCs) in Nigerian courts.

Mr Ogboru said he felt he presented tight case to the court to show that the NLNG breached terms of payments and that the breaches caused slowdown of the execution of the contract, but regretted that the judge did not agree with any of his arguments.

According to him, many indigenous contractors have died as a result of injustices in the hands of the oil majors, noting that it was only in abroad do communities and local contractors get some form of justice, never in Nigeria.

“My case is presented 100 per cent, the NLNG’s case is zero; but surprisingly, the NLNG has rather been upheld, and Macobarb denied. I pity indigenous contractors in Nigerian courts. We are doomed,” he quipped.

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NMDPRA Begins Review of Gas License Holders

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Gas Infrastructure Development

By Adedapo Adesanya

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday in Abuja, kicked off a two-day performance review session with companies currently holding gas distribution licences.

A statement by the regulator said the review was in compliance with the provisions of the Petroleum Industry Act (PIA), which mandates it to ensure and monitor performance parameters of the industry and the quality of service provided by licensed operators.

According to NMDPRA, the review focused on regulatory compliance, operational efficiency and Health, Safety, Environment, and Compliance (HSE&C) standards of the licensed gas distribution activities.

It reiterated that it would continue to work towards enabling proper gas utilisation in the country to meet domestic demands and boost the nation’s economy.

In January, as a way of increasing gas utilisation and expansion in the country, the NMDPRA awarded 10 Gas Distribution Licences (GDLs) to six companies, including a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

The six beneficiary companies include the NNPC Gas Marketing Company, Shell Nigeria Gas Limited, NIPCO Plc, Central Horizon Gas Company, Falcon Corporation Ltd, and AXXELA.

The licenses issued under the Petroleum Industry Act were to help unlock opportunities in power generation, clean cooking, CNG mobility, and energy parks.

The licenses issued covered a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day with over 1,200km of gas distribution pipeline network as well as over 500 customer stations.

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MTN Foundation, Others Launch Digital Agriculture Platform for Ogun Farmers

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AgriConnect Ogun farmers

By Modupe Gbadeyanka

About 1,000 small-scale farmers in Ogun State would be empowered with a mobile-enabled agricultural intelligence launched by MTN Foundation.

The organisation has partnered with the federal government, the Ogun State government, the National Centre for Artificial Intelligence and Robotics (NCAIR), and Huawei to introduce a digital agriculture platform known as AgriConnect.

This initiative will give the beneficiaries access to mobile-enabled agricultural intelligence and digital tools designed to enhance food production.

The selected farmers are from a state-managed database of over 160,000 registered farmers, providing them with mobile-enabled services and digital technologies supplied by Huawei.

“This initiative is intended to enhance food production, ensure food security, and boost agribusiness opportunities across the state and Nigeria at large.

“These are not just gadgets; they are tools of transformation. With this programme, we are boosting productivity, promoting efficiency, and fortifying the cassava value chain. Ogun State is proud to lead in cassava production and equally proud to lead in agricultural innovation,” the Governor of Ogun State, Mr Dapo Abiodun, stated at the launch of the scheme at June 12 Cultural Centre in Kuto, Abeokuta.

He announced the construction of a new cotton processing plant with a capacity to process 100 tons per hour, expected to generate 250,000 direct jobs and position Nigeria as a key player in the global cotton and garment industry.

The governor called on all public and private stakeholders to support the AgriConnect Initiative, stressing that Ogun State is home to the most responsible and best-organised farmers in the country.

Also speaking, the Executive Director of the MTN Foundation, Ms Odunayo Sanya, said, “We strongly believe in the power of technology to drive growth, create opportunities, and empower individuals.

“The AgriConnect Initiative embodies this belief by leveraging both global and local partnerships to provide our farmers with essential tools and resources.

“Access to real-time weather forecasts, market prices, and best agricultural practices will not only support informed decision-making but also significantly improve yields and increase farmers’ incomes.

“Ultimately, this will contribute to economic growth at both the state and national levels.

“For those unfamiliar with the MTN Foundation, since its inception in 2004, we have remained at the forefront of Nigeria’s social empowerment.

“We have invested over N32 billion in projects and interventions that align with national priorities and Sustainable Development Goals.”

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