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The Presidency,
under the late president, Umaru Yar’Adua stopped investigations that
would have exposed the Nigerian beneficiaries of the Siemens bribes,
NEXT has learnt.

A security source
familiar with the exercise explained that the Independent Corrupt
Practices and other related offences Commission (ICPC) had gone deep
into investigating the Nigerians involved when they were stopped by the
late president. While confirming the report, a senior official of the
ICPC, who pleaded anonymity, said: “We had already gone far into the
Siemens scandal, and already found some top Nigerians culpable when we
received a letter from the Presidency directing us to stop
investigations. They told us it what a financial crime and that we
should hands off it and leave it to the EFCC (Economic and Financial
Crimes Commission). They said it was not our duty.”

Folu Olamiti, the
resident media consultant to the ICPC however declined to comment on
the existence of such a directive. He also said the organisation was
not investigating the bribery scandal. “We are not investigating any of
the Siemens, Halliburton, or other such scandals,” Mr. Olamiti said.
The EFCC, which has been investigating the scandal since 16 months ago,
says its investigations are still ongoing. “We are still on it, it is
an ongoing thing,” Femi Babafemi, the EFCC spokesman, said. However our
source insists that the EFCC might continue its investigations forever
unless President Goodluck Jonathan renewed his desire to prosecute the
bribe beneficiaries. Siemens, the Germany based multinational
engineering firm, admitted, in a German court, in November 2008, of
bribing senior Nigerian government officials with 17.5 million euros to
secure government contracts.

Well-known people

Prominent Nigerians
including three former communication ministers: late Haruna Elewi,
Cornelius Adebayo, and Tajudeen Olanrewaju; and a serving senator,
Jubril Aminu were mentioned as beneficiaries of the 17.5million euros
bribe. Siemens paid 395 million Euro to the German government, and $800
million to the US government for paying the bribes. Following public
outcry, late Mr Yar’Adua ordered the company out of Nigeria and barred
them from getting contracts from Nigeria. He, however, reversed his
decision when he visited Germany. Siemens was later awarded another
multi-billion naira contract by the federal government. While reacting
to the non-prosecution of the Siemens bribe takers, civil rights
lawyer, Charles Musa stated “these people are well known, they are on
the Internet, they are in US court papers, and nothing has happened to
them. It is unfortunate.”

Members
of the House of Representatives, on Thursday, condemned the frequent
adjustments proposed by President Goodluck Jonathan in the 2010 Budget,
saying it does not portray the country as a serious nation.

The lawmakers,
during their plenary session, expressed their disappointment with Mr.
Jonathan after the Speaker, Dimeji Bankole, read a letter from the
president proposing yet another amendment to the 2010 Appropriation
Bill, barely one month after he proposed the first amendment.
Consequently, the arrival of the president’s letter stalled the planned
passage of the budget yesterday.

In the letter,
dated July 7, 2010, and addressed to Mr. Bankole and the senate
president, David Mark, the president asked the legislature to approve
the revised Revenue Framework, adjustment to amendment budget proposal,
and amendment to the N639.8 billion supplementary budget.

Mr. Jonathan sought
the cooperation of the legislature in revising the revenue framework to
be based on assumptions for oil production of 2.2 million barrels per
day, and an oil price benchmark of $60 per barrel. This, he said,
follows indications from the Nigeria National Petroleum Corporation
(NNPC) that oil production for the 2010 fiscal year is likely to
average at about 2.2 million barrels per day, as opposed to the 2.25
million barrels per day assumption in the last revision to the revenue
framework.

He added that the
revision will imply aggregate revenue for the federal government budget
of N2.392 trillion, and a deficit of about N1.829 trillion (or 5.6% of
GDP), based on the proposed amendment budget’s level of expenditure.

The president also
sought the cooperation of the legislators to substitute the budgets of
eight ministries, Departments and Agencies (MDA) with revised versions.
According to him, the substitution is a result of reprioritisation of
capital projects by the State House, Nigerian Army, Nigerian Air Force,
Intelligence Community, and the Ministries of Aviation, the Federal
Capital Territory, and Foreign Affairs.

Mr. Jonathan
informed the lawmakers about slight amendments to the Consolidated
Revenue Fund charges, as well as the automatic adjustment to Statutory
Transfers, based on the revised Revenue Framework. He asked for slight
amendments to the budgets for certain MDAs, adding that their
allocations to some projects have either been reviewed or completely
dropped.

He listed the MDAs
to include Secretary to the Government of the Federation; the
Ministries of Information and Communication; Culture, Tourism and
National Orientation; Women Affairs; Federal Capital Territory;
Aviation; the National Planning Commission; and the National Assembly
Office.

Mr. Jonathan also
told the lawmakers that additional funds are required by the Foreign
Affairs to facilitate the posting and movement of ambassadors and
diplomatic staff, which are crucial aspects of the ministry’s statutory
responsibilities, while additional funds are required by the Niger
Delta ministry to commence training programmes for non-militant Niger
Delta youths.

Mr. Bankole had
hardly concluded reading the two-page letter when the chairman of the
House Committee on Appropriation, Ayo Adeseun, complained of frequent
changes in the proposed budget, pointing out that Nigeria will not be
taken seriously following the development.

Mr. Adeseun, a
member of the PDP from Oyo State, who said his committee finished work
on the 2010 Budget at about 4 am yesterday, with a view to passing same
day, informed his colleagues that officials of the executive arm
contacted them about 10 days ago about fresh adjustments to the
document, but that they kicked against it. According to him, agreeing
to it, could amount to bringing the amendments through the backdoor.

The lawmaker, who was livid when he spoke, said the frequent adjustments in the budget will make the country look unserious.

“That practice
almost always throw us into quagmire. This has been a recurring issue.
This is July, and there is no budget for the country. The economy is
dying, nothing is happening. People have been waiting for the budget,
but we keep amending and amending and amending. This does not go well
for us as a serious nation,” Mr. Adeseun said.

Also speaking, the
chairman of the committee on finance, John Enoh, strongly criticised
the president’s fresh request for adjustment in the budget, adding that
the committee had discussed the issue critically and frowned at it.

Mr. Enoh, a PDP
member from Cross River State, who was also angry, told his colleagues
that, as a legislature, “we are not bound 100 percent by any proposal
emanating from the executive.”

Break for budget

Mr. Bankole,
however, calmed the raging lawmakers when he announced that the plenary
sessions would be suspended next week to sort out the issues of the
budget and the outstanding public hearings to be organised by the
standing committees.

Mr. Jonathan had
earlier, in a letter dated May 29, proposed adjustments to the 2010
Budget. In the letter, the president sought to make adjustments to the
budget due to significant revenue shortfalls in both oil and non-oil
revenue, which he noted may continue through the 2010 fiscal year. He
added that this would pose adverse challenges to effectively financing
the budget.

“Given the recent
drop in international oil prices from over 80 dollar per barrel to
under 70 dollar per barrel, it is prudent to revise the oil benchmark
price to a more realistic level,” the President had stated. On the
expenditure, the president said there a was need to review the
aggregate from the about 4.61 billion approved in the 2010
Appropriation Act, and to adjust the budget details accordingly.

According to him,
certain critical items such the statutory transfers, debt services, the
service-wide votes, and other critical expenditure heads which were
inadvertently omitted, or underprovided for, had made it necessary to
provide for them through a supplementary appropriation.

Other key
unanticipated items that needed financing, he explained, were the
negotiated civil service wage increase, Power Holding Company arrears
of monetization, and the 50th anniversary celebration.

“It is proposed to provide for all these expenditure through a supplementary budget,” he said.

The Presidency had in its initial proposal for the 2010 Budget,
pegged the oil benchmark price at about 54 dollar per barrel, but after
several reviews of the fiscal document, the National Assembly passed
the over N4 trillion 2010 Appropriation Act, leaving the benchmark at
about 70 dollar per barrel.

A
broad resettlement scheme to provide schools, housing and major
facilities for the native communities of Abuja, requires over N100
billion, the Minister of the Federal Capital Territory, Bala Mohammed,
said yesterday.

The minister said,
on Thursday, that several efforts at resettling the indigenous
populations of the federal capital, who have been displaced for years,
have failed due to lack of funds and enabling legislations that could
help the administration raise cash independently. He spoke at a House
of Representatives hearing on a new bill that will, if passed, help
strengthen the capacity of the FCTA to source funds from new property
taxes and levies. Mr. Mohammed said such proceeds, if made possible
through the bill presently considered by the House committee on FCT,
will be ploughed into completing a vast resettlement process for the
indigenous people displaced from the federal capital territory, which
has only gulped N25 bn since the inception of the FCTA.

Revenue possibilities

“Given the
opportunity we would now establish the required legal instruments so
that we can be collecting taxes and levies and we will be able to be
self reliant, but we don’t have the legal instrument,” he said. “FCT
can generate N500 billion yearly if given the opportunity and the
required legal instrument to collect levies such as tenement rate,
ground rate and advertisement rate among others. This amount may look
enormous but we can generate it if given the opportunity like other
states in the country.” The FCT administration requested for N15
billion for the major projects for the native dwellers in 2009, the
minister said, but received only N4 billion in last year’s budget. The
administration requires extra N15 billion this year to conclude some of
the ongoing resettlement projects begun by the previous administrations
in Abuja, he added.

In the past weeks, the indigenous populations and other Nigerians,
who have endured housing rents that grow at startling rates, have faced
more complex accommodation conditions after authorities restarted
destroying alleged illegal structures at some suburbs. At Lugbe area,
which is close to the city airport, a recent demolishing of homes
resulted in the deaths of five persons and the displacement of over
200,000 people over controversial residential location presently
contested in court. The FCT administration announced after the
incident, it will forge ahead with the demolitions but is only held
back by the legal action. Mr. Mohammed, who is a former senator, told
lawmakers he sympathises with the difficulties residents, particularly
the indigenous communities, face in Abuja.

The National Bureau
of Statistics (NBS) released its first ever crime and corruption survey
last Thursday in Abuja. The report’s statistics about bribery and its
effects on Nigerian businesses reflected the experiences of many
entrepreneurs in the country.

For instance, it
revealed that 71 per cent of the over 2,200 businesses questioned said
corruption was a major obstacle to their operations, second only to
crime and political instability. Not surprisingly, the police and
customs, as well as utility companies such as the Power Holding Company
of Nigeria (PHCN) were rated as the country’s most corrupt
institutions. Surprisingly, the nation’s courts were rated as one of
the least.

Not many of the
businesses turned to the justice system to resolve their disputes –
only 20 per cent – but of those who did, 84 per cent were satisfied
with their experience. The businesses were split, however, over their
access to information within the legal system. Thirty-eight per cent
felt they were adequately informed, while 27 per cent said they were
not.

It should be noted
that most businesses did not use the legal system at all. Five per cent
said their avoidance was deliberate, as the courts were just too
lengthy and expensive.

Not all good news

Nigerian
entrepreneurs, like their counterparts outside the industry, did not
trust their public institutions. Though anti-corruption body, the EFCC,
was the most highly rated agency among businesses, it only garnered 51
per cent of their votes. The media fared no better, with 43 per cent.
Scores went down even further when the respondents were asked to rate
the honesty of institutions.

The EFCC, still the highest, got 38 per cent of the vote, while the media nabbed 25 per cent.

While the popular
belief is that corruption helps to ‘grease the wheels’ and move
bureaucratic systems along, the report said that the prevalence of
corruption in the country’s public institutions was actually hindering
development.

For one thing,
bribes were often paid for no specific reason and without any
particular effect. Many businesses reported that they paid bribes as a
matter of course, and often, more than once to the same individuals and
institutions.

Bribes also
disproportionately fell on small-scale enterprises which reported
paying more frequently, though in smaller amounts, than their larger
counterparts.

Organizers warned
that the actual numbers might be much higher, as many businesses would
not even say whether they had been asked for bribes or not. Few
businesses reported these incidents to law enforcement, as many felt no
action would be taken.

As Goodluck
Jonathan’s administration steps up its anti-crime campaign, it would be
gratified to know that few businesses saw bribery in a positive light.
Most agreed that the country would be better run with its elimination.

Hopes of more to come

The report was
conducted in 2007 with funding from the European Union and the United
Nations Office of Drugs and Crime (UNODC) and operated in conjunction
with the Economic and Financial Crimes Commission (EFCC). It was
released in December last year after donor organisations reviewed the
data.

Organisers hope to stage another survey to update the report’s information. However, E. G. Thomas, assistant chief statistician at the NBS, said they had to wait for funds.

“This is the first survey on crime and it will be used as baseline
data.” Mr Thomas said. “We know that since the survey, there have been
a lot of changes in government and the structure of things. But we have
no way of knowing whether there has been any improvement or not. Except
we conduct a survey, we cannot know authoritatively.”

The National Union
of Petroleum and Natural Gas Workers (NUPENG) said yesterday that it is
committed to make good its threat to disrupt normal petroleum products
supply to the Federal Capital Territory (FCT), Abuja, from next Monday,
if government fails to accede to its demands.

National president
of the union, Atetse Igwe, who spoke with NEXT in a telephone chat from
Abuja, listed its demands to include improved operational environment,
particularly the repair of the nation’s roads, and the provision of
standard condition of service by multinational oil companies for
majority of its members.

He said NUPENG has
resolved to stop lifting and distributing petroleum products from July
12th, when its 21 days ultimatum contained in its petitions to the
relevant arms of government, including the Ministry of Petroleum
Resources, Labour, the Presidency, and the National Assembly, lapses.

“We have never
hidden our demands to government for the repair of the nation’s roads
networks, which are not only bad, but are more of death traps to our
members.

“We have lost
several of our members and other innocent Nigerians through avoidable
accidents on these roads. If government refuses to meet our demands, we
will have no alternative than to stop fuel supply to Abuja.

“Everybody knows we
deal with a highly volatile product, which, if not properly handled,
will result in serious crisis. We have made our position known
severally to government on the need to maintain these roads. But, it
appears our appeals have fallen on deaf ears,” he said.

Citing the Aba-Port
Harcourt Express Road and the East-West Road as examples, Mr. Igwe
noted that a trip through these routes would present a glimpse of the
ugly experience members of the Union face in transporting petroleum
products to all parts of the country.

“These roads, like
most others across the country, are completely impassable. Yet, we are
expected to lift products from the Port Harcourt Refinery for
distribution in Abuja and other parts of the country,” he lamented.

According to the
union leader, NUPENG has already threatened to withdraw its services to
protest the illegal practice by the multinational companies operating
in the nation’s oil industry, particularly Shell Petroleum Development
Company (SPDC) and Nigeria LNG Limited, which have refused to give
conditions of service to those categories of workers they call ad hoc,
contract or casual workers, despite signing several memoranda of
understanding (MOUs) since 1999.

“Most of these
workers have been with these companies for more than 15 years, without
any condition of service covered by government insurance scheme that
would entitle them for some benefits at the end of service, or in case
of accident or sack. Yet, they are the ones that work to sustain the
country’s economy.

“We are saying, the
practice where our members work for over 15 years and the oil companies
would wake up one day and sack them without any benefit, apart from
their last pay, should stop. We have complained against these issues
for a long time, without any positive action. It appears officials of
the Federal Ministry of Labour are collaborating with these
multinational companies to deny our members their rights,” he said.

Strategic Abuja

On why the union
chose to disrupt fuel supply to Abuja in particular, Mr. Igwe noted:
“We choose Abuja because those who have the power to do something to
resolve our grievances live there. It appears they are busy having fun
at the expense of the rest of Nigerians.

“Every other day
the National Assembly keep fighting over how to increase their salaries
and improve their welfare, without thinking about the deplorable
conditions other Nigerians are facing, in terms of lack of basic
infrastructures like roads, electricity, and other services.”

He decried the
situation where the Nigerian Content Act, recently approved for
implementation in the industry, does not have a single provision that
takes care of the interest of Nigerian workers, in terms of their
conditions of service.

“It appears government is insensitive to the fact that there is no
other oil producing country in Africa that this type of practice is
allowed to continue,” he pointed out.

The National
Assembly yesterday suspended the planned submission of state assembly
resolutions on the constitution amendment, after more than 10 states
failed to transmit the vital document needed to complete the amendment.

An elaborate event
to submit the document, organised Thursday at the House of
Representatives and attended by the senate president, David Mark; the
House speaker, Dimeji Bankole and the two deputies, Ike Ekweremadu and
Usman Nafada, was cancelled after lawmakers said only 22 states have
turned-in their reviews.

Istafinus Gbana,
the Chairman of the conference of state speakers and the speaker,
Taraba State House of Assembly, who was billed to present the documents
to Mr. Mark, said the states were duly informed of the date and will
now have one week to complete their work. “I deeply regret this, that
today, we are not in a position to transmit the resolutions of the 36
states,” Mr. Gbana said Thursday, confirming earlier doubts on the
preparedness of the state legislatures who have recently had days of
contentious hearings on the amendments proposals.

The development has
further widened the uncertainties that have clouded the final passage
of the 2010 amendments, which is expected to be central to the 2011
general elections.*

Sympathy with frustration

Deputy Senate
president and the Senate chairman of the amendment adhoc committee, Mr.
Ekweremadu said he had held consultations for days with the state
speakers and the chairman of the conference of speakers, before
announcing the date for the final submission of the documents and that,
during each discussion, he received assurances that the resolutions of
the states would be ready by Thursday morning, which was scheduled for
the transmission at the House of Representatives.

The Thursday event
had already progressed for a while before officials of the conference
of speakers arrived to announce the failure to collate more than 22
states.

Mr. Ekweremadu said
he “sympathised with the frustration” the defaulting states have forced
on the conference of speakers, and hoped the submission will finally
hold at a later date.

The states yet to
submit their resolutions (even though Mr. Gbana would not give their
names) are now to complete every procedure and turn in the document
within one week, for final transmission, he said.

The constitution requires 24 states to support the amendments to
become law. Mr. Gbana said the group of speakers will proceed with the
submission whether or not states still default.

The
House of Representatives yesterday condemned at the high volume of
importation and production of the sub-standard iron-bars and other
building materials in the country. Consequently, it passed a resolution
urging the government to set in motion the process of reviewing the
legal and regulatory framework for the control and management of steel
importation and production in the country and report back within two
weeks.

It also asked the
executive arm to set up an inter-ministerial committee to accelerate
the development of the iron and steel sector while the Standard
Organisation of Nigeria (SON) and other relevant organization are to
take up their responsibilities seriously. The decisions were sequel to
a motion brought by Mayor Eze (PDP, Imo), who noted that the iron-bars
and rods constitute the most important element in all construction
works in the country. Mr Eze said he was aware that Nigeria is
abundantly blessed with the steel deposits which could serve as a
veritable tool for technological growth and national development. He,
however, expressed worry about the volume of importation and production
of sub-standard iron materials in the country.

The lawmaker also
regretted the consequences occasioned by the use of the items, saying
it has resulted in incessant collapse of buildings and bridges across
the country leading to the loss of lives and properties. Mr Eze,
however, appreciated the efforts made by the SON, Nigeria Society of
Engineers (NSE), and the Council for the Regulation of Engineering in
Nigeria (COREN) to stop the usage of the sub-standard building
materials in the country. The chairman of the House Committee on Steel,
Aminu Shagari, said the use of the substandard building materials in
the country has become worrisome. He, then, proposed an amendment that
an inter-ministerial committee should be set up to develop the steel
sector. Friday Itulah (PDP, Edo) also brought amendment asking the
House to urge relevant organization to wake up to their
responsibilities. Other amendments proposed were, however, defeated.

Honouring Babangida

Also on Thursday,
the House read for the second time a bill seeking to rename the
National Centre for Women Development, Abuja after the late First Lady,
Maryam Babangida, who died last December. The bill, sponsored by Fatima
Raji Rasaki (PDP, Ekiti) is titled, “A Bill for an Act to Amend the
National Centre for Women Development (Establishment) Act, Cap. N15,
Laws of the Federation, 2004 to Enhance the Functions of the Centre and
Rename the Centre after Dr Maryam Babangida, and Other Matters
Incidental, 2010.” Mrs Rasaki, while leading the debate on the bill,
said Mrs Babangida touched the lives of Nigeria women in the country
through her pet project, Better Life for Rural Women, adding that it
would not be too much to name the centre after her.

Abike Dabiri (AC, Lagos) said while working as a journalist, she
reported the activities of the late First Lady for almost four years,
stressing that she (Maryam) successfully executed her pet project.
Others who spoke in support of the bill include Juliet Akano (PDP,
Imo), Peace Nnaji (PDP, Enugu), Sada Patricia Etteh, Chuka Ike-Nwuwa,
and Soli Jibia (PDP, Katsina), some of who praised Mrs Babangida.
Messrs Nwuwa and Maduabum, however, called on women to focus more on
the home front in order to have stability in the family, an argument
which Mrs Etteh faulted. The former speaker said men and women ought to
take care of the home together.

Nigeria has emerged
as the 14th most failed state in the world. With this ranking, it is
one of the 37 countries placed on red alert amongst the 177 countries
considered for the 2010 annual Failed States Index which is conducted
by Foreign Policy Magazine.

It is the night
failed state in Africa, with countries like Somalia, Chad, Sudan,
Zimbabwe, Democratic Republic of Congo, Central African Republic,
Guinea, Cote d’Ivoire and Kenya ahead of Nigeria in a sequential order.
According to the study, common indicators for determination include a
state whose central government is so weak or ineffective that it has
little practical control over much of its territory, non-provision of
public services, widespread corruption and criminality; refugees and
involuntary movement of populations and sharp economic decline.

Criteria for the ratings

The report uses 12
factors to determine the rating for each nation. These include security
threats, economic implosion, human rights violations and refugee flows.

Nigeria declined a
step from its 2009 position while its index rate fell from 99.8 to
100.2, having only Afghanistan, Iraq, Pakistan and Haiti ranked higher
than it.

However, the rating
agency has some cheering news about Liberia and Sierra Leone, two
countries that have in the past being embroiled in civil wars. It said
in a statement: “Sierra Leone and Liberia, no longer rank among the top
20 failing states, and Colombia has become a stunning success story,
while the overall story of the Failed States Index is one of wearying
constancy, and 2010 is proving to be no different: Crises in Guatemala,
Honduras, Iran, and Nigeria – among others – threaten to push those
unstable countries to the breaking point.”

Amongst all the
considering factors, the Nigerian government’s de-legitimatisation of
states, factionalised elites, security apparatus and public services in
governance were all rated to have suffered huge decline. The agency
also rated the level of leadership as poor, military as moderate,
police as weak, judiciary as weak and the civil service also week.

Flawed state

The Fund for Peace
which is also a partner agency in the rating described Nigeria to have
had flawed democratic elections and that the late Umaru Yar’Adua “has
done little to curb the widespread corruption that exists in the
Nigerian government, has been unable to unify the competing religious
and ethnic groups in the country, and has not invigorated the economy.

“The Nigerian police force is highly corrupt, poorly trained, and
has been accused of committing widespread human rights abuses with near
impunity. They have been unable to prevent violent riots in many major
cities, the most serious of which resulted in over 400 deaths in
November 2008. The police have been accused of shooting over 90 of the
victims. The judiciary is poorly trained and underpaid, making it
susceptible to corruption. Civil servants are poorly paid and
consistently fail to perform their duties. Positions are often
appointed based on ethnic, religious, or political backgrounds instead
of merit, and corruption is widespread.”

The
chairman of the National Population Commission (NPC), Samui’la Danko
Makama, yesterday lambasted Nigerians for deliberately refusing to
register the births and deaths of their children.

He regretted that
only 35 percent, out of every five million children born, are
registered. He said that the situation is very unfortunate as other
countries in the world are keeping records of both births and deaths of
their people.

Mr. Makama spoke at a press conference in Abuja commemorating this year’s World Population Day.

According to him,
good demographic data is critical for planning and designing policies
based on future population projections, and for monitoring the
effectiveness of service delivery.

The chairman hoped
that the commission’s focus on the 2010 round of the population and
housing census would produce reliable data. He observed that properly
collecting, analysing, and disseminating data would drive good
decision-making.

Mr. Makama said for
such an undertaking, like the 2010 census to be accurate and reliable,
it must be based on scientific and verifiable collection of demographic
data that would capture not only the size of the population, but also
their composition, characteristics, and future trends.

The
Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC)
yesterday opposed the proposed exclusion of armed forces personnel from
the National Pensions Commission, saying it could undermine the scheme,
which came into effect in 2007.

At a public hearing
on the bill, jointly conducted by the House of Representatives
Committees on Pensions and Public Service Matters, Peter Adeyemi, who
represented the NLC, said, “Whatever the arguments for the exemption,
we in the congress are of the opinion that the National Assembly should
be extremely cautious in considering this proposal, in order not to
return pension to its 2004 era. We should therefore either individually
and collectively desist from taking any decision that will throw the
pension into chaos,” he said.

Mr. Adeyemi,
suggested that rather than allowing the military to exit from the
scheme, government should rather opt for making full contributions for
the military as against the current payment of some percentage for
them. He, however, called for the strengthening of some areas of the
Act to enhance the effectiveness of the scheme.

In his submission,
the President of the Trade Union Congress, Peter Esele, said removing
the military from the scheme could have a ripple effect with other
sectors demanding exclusion.

Mr Esele argued
that the agitation by members of the armed forces could only undermine
the continued workability of the scheme which was introduced to correct
anomalies that allegedly characterised the previous scheme
superintended by the Military Pensions Board (MPB).

The chairman of the
Pension Fund Administrators of Nigeria, Funsho Doherty, said the
proposed amendment to exclude the armed forces would portend danger for
the administration of pension in the country. He said the move cannot
address the problems confronting pension administration in the country.

Earlier, the
chairman of the House Committee on Defence, who sponsored the bill,
said there is nowhere in the world where members of the armed forces
contribute to their pension, saying the system does not conform with
contemporary realities.

Inconsistencies in payments

The chairman,
Military Pension Board, Bitrus Kwaji, a Brigadie-General, supported the
bill, saying the exclusion of the military from the scheme is borne out
of some challenges confronting the contributory pension scheme under
PENCOM.

According to him, ”
The challenges of the contributory pension scheme as faced by military
retirees have now added impetus to the call for reverting to the old
pension system of pay as you go.”

Mr. Kwaji said the
inconsistencies in payments made by the various Pension Fund
Administrators (PFAs) to officers of same ranks and years of service is
a serious challenge to the scheme. He added MPB was repositioned to
effectively cater for its personnel and has complied with the e-payment
policy of government and timely payment of monthly pension to retired
officers.

Also speaking at
the hearing, Muhammad Ahmad, the Director-General National Pensions
Commission, said that before the commencement of the scheme in 2007
there was wide consultation with stakeholders but that the issues
raised would be addressed.

He advised against
policy reversal as it was counter-productive to the development of the
nation. The bill, titled “Pension Reform (Amendment) Bill 2010” scaled
second reading on May 25 this year.