General
SERAP to Block Use of N17trn Pension Funds by Governors
By Modupe Gbadeyanka
The plan by the 36 state governors to borrow N17 trillion from the pension funds is not going down well with the Socio-Economic Rights and Accountability Project (SERAP).
The group has now written an open letter to President Muhammadu Buhari to block this move, arguing that this would be “detrimental to the interest of the beneficiaries of the funds, especially given the vulnerability of pension funds to corruption in Nigeria, and the transparency and accountability deficits in several states.”
In a letter dated December 5, 2020, SERAP, through its deputy director, Mr Kolawole Oluwadare, described this proposed plan by the governors as “patently unjust and contrary to the letter and spirit of the Nigerian Constitution 1999 [as amended] and the Pension Reform Act.
According to the organisation, “This proposed borrowing faces the risks of corruption and mismanagement, and would ultimately deny pensioners the right to an adequate standard of living and trap more pensioners in poverty.”
“Rather than devising ways to address pensioner poverty, governments at all levels would seem to be pushing to exacerbate it,” the letter said.
SERAP, which copied the Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami, expressed “serious concerns that the proposed borrowing by the 36 state governors from the pension funds would lead to serious losses of retirement savings of millions of Nigerians.”
According to the group, “Many state governors have repeatedly failed to pay workers’ salaries and pensions; several states are failing to pay contributory pension.
“Therefore, allowing state governors to collect a windfall of pension funds at the expense of pensioners who continue to be denied the fruit of their labour would amount to double jeopardy.”
“Fiduciary duties require public officers to ensure that pension funds are managed solely and exclusively for the benefit of pensioners, and to consider the socio-economic and human rights impact of pension investment decisions on the intended beneficiaries,” it added.
SERAP said President Buhari must urgently instruct the Director-General and board of the National Pension Commission (NPC) to stop this move because “it would also be very difficult to hold state governors to account for the spending of pension funds, as states have persistently failed to account for the spending of public funds including security votes.”
“Transparency is a key instrument in the spending of any pension fund investment, as it is necessary to ensure the accountability of the funds. However, several states routinely claim that the Freedom of Information Act is not applicable within their states.”
“Pension funds should not be used to make up for the failure of governments at all levels to cut the cost of governance, and the persistent refusal to reduce wastage and corruption in MDAs, as well as failure to obey court orders to recover life pensions collected by former governors and their deputies, and public funds collected by corrupt electricity contractors who disappeared with the money without executing any power projects,” the group submitted.
Recall that recently, the Governor of Kaduna State, Mr Nasir el-Rufai, who is the Chairman of the National Economic Council Ad Hoc Committee on Leveraging Portion of Accumulated Pension Funds for Investment in the Nigeria Sovereign Investment Authority (NSIA), stated that N17 trillion could be sourced from the pension funds for projects in the states.
By Adedapo Adesanya
The Dangote oil refinery has commenced operating its polypropylene facility in Lagos.
Polypropylene is a thermoplastic polymer that is commonly used in plastic packaging, textiles, reusable shopping bags, surgical equipment, household chairs, and kitchen utensils.
According to S&P Global, the starting up of Dangote’s 830,000 metric tonnes per year polypropylene site was one of the last outstanding milestones for the oil refining and petrochemical complex in its commissioning sequence, which has been taking place since January 2024.
“Polypropylene production has now started, with supplies being distributed in 25kg bags, and has already threatened to upend the domestic market,” two market sources had told Platts, part of S&P Global Commodity Insights.
When it becomes operational, the Dangote facility is set to become Africa’s largest polypropylene production site, producing from two polypropylene units with capacities of 500,000 metric tonnes per year and 330,000 metric tonnes per year.
The President of the Dangote Group, Aliko Dangote, previously set out hopes that the complex would fully cover some 250,000 metric tonnes per year of domestic demand for polypropylene.
S&P Global cited that the new capacity could quickly capture market share in the existing polypropylene homopolymer market, which has so far been concentrated at Indorama Eleme’s Port Harcourt refinery in Nigeria and drawn imports from the Middle East.
The company had previously said its $2 billion petrochemical plant located in Ibeju-Lekki, Lagos State, is designed to produce 77 different high-performance grades of polypropylene in the country.
With a turnover of $1.2 billion, the Dangote Petrochemical plant, situated alongside the Dangote Refinery, is positioned to cater to the demands of the growing plastic processing downstream industries, not only in Africa but also in other parts of the world.
Speaking then, Mr Devakumar Edwin, now the Vice President of Dangote Industries Limited, said the Dangote Petrochemical will drive massive investment in the downstream industries, generating huge value addition in the country, creating employment, increasing tax revenues, reducing foreign exchange outflow, and increasing the country’s Gross Domestic Product.
“We have 77 types of polypropylene, which can be used for different purposes, and we can produce it from our petrochemical plant. Currently, the plant is capable of producing about 900,000 tonnes of polypropylene per annum. Our Petrochemical plant should be the biggest in Africa,” he said.
By Adedapo Adesanya
The candidate of the Peoples Democratic Party (PDP) in the 2023 governorship election in Lagos State, Mr Olajide Adediran, popularly known as Jandor, has announced his return to the All Progressives Congress (APC).
Mr Adediran, along with his supporters, switched back to the ruling party on Monday at a media briefing held at Liberty Place, Adeniyi Jones Street, Ikeja, Lagos.
This comes after a closed-door meeting between Jandor and President Bola Tinubu in Aso Rock, Abuja last week, where undisclosed matters were discussed.
Jandor previously resigned from the PDP, citing indiscipline and anti-party activities, betrayal by the party leadership on the eve of the Lagos governorship election.
He also lamented false claims of an alliance that misled PDP supporters into voting for another candidate, presumably the candidate of the Labour Party.
Following his resignation from the opposition party, Mr Adediran, who was previously a member of the ruling party in the state, met President Tinubu in Abuja to inform him of his decision to return to his initial political family.
Before meeting with Mr Tinubu, Jandor also held talks with several political leaders, including former Vice President Atiku Abubakar, former military President Ibrahim Babangida, former Head of State General Abdulsalami Abubakar and 2023 SDP Presidential Candidate, Mr Adewole Adebayo.
Jandor ran alongside popular Nigerian actress, Ms Funke Akindele, but they came third at the 2023 Lagos polls after the incumbent, Mr Babajide Sanwo-Olu, polled a total of 762,134 votes to emerge the winner of the contest.
The candidate of the Labour Party, Mr Gbadebo Rhodes-Vivour, polled 312,329 votes, while the PDP candidate scored 62,449 votes.
By Modupe Gbadeyanka
The Rivers State House of Assembly may have commenced the process of removing Governor Siminalayi Fubara from office.
This is because the legislative arm of government in the state has served a notice of alleged misconduct against Mr Fubara and his deputy, Mrs Ngozi Odu.
The Governor had been at loggerheads with a faction of the parliament in the past months, especially because of his fallout with his political godfather and predecessor, Mr Nyesom Wike, who is currently the Minister of the FCT.
Last week, after a Supreme Court judgment, Mr Fubara went to re-present the 2025 budget to the Rivers Assembly led by Mr Martin Amaewhule, but he was locked out.
Last Friday, the Assembly, which has 27 members loyal to Mr Wike, indefinitely adjourned plenary.
In a notice obtained by Channels Television, the state parliament said the decision to serve the Governor the notice was in line with the Nigerian Constitution.
“In compliance with Section 188 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and other extant laws, we the undersigned members of the Rivers State House of Assembly hereby forward to you a Notice of Gross Misconduct by the Deputy Governor of Rivers State in the performance of the functions of her office,” the notice read.
Recall that last week, during a media chat, Mr Wike disclosed that heavy would not fall if his successor is impeached by the Rivers Assembly.
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