Employee compensation takes off

Dupe Olaoye-Osinkolu

Succour may start coming the way of injured workers and families of those who lose their lives on duty as the Employees Compensation Scheme (ESC) takes off with the Federal Government’s inauguration of the newly reconstituted Board of Directors of the Nigeria Social Insurance Trust Fund (NSITF).

The Dr. Ngozi Juliet Olejeme-led Board of Directors was inaugurated by the Minister of Labour and Productivity, Chief Chukwuemeka Wogu in Abuja last week.

The Board, which has tripartite representatives of government, organised Labour and the Organised Private Sector (OPS) is saddled with the responsibility of providing social security protection and safety net for Nigerian workers.

Dr Olejeme was the Chairman of the former Board of NSITF which worked towards and ensured the passing of the Employees’ Compensation Act in 2010, after months of public debates by the upper and lower legislature making it one of the fastest bills passed by the National Assembly.

She said the ECS has formally started, following the assent of Mr President to the Scheme in 2010, adding that it is ‘significant to the transformation agenda of Mr President, especially the social safety nets aspect.’

According to her, the centrality of the ECS in the socio-economic matrix and the Industrial relations system to the well-being of the citizenry cannot be overemphasized. In this regard the ECS ‘which guarantees the welfare and wellbeing of the worker in the event of injury or death in the workplace or in the course of work, is a practical demonstration of Mr President’s commitment to the Decent Work Agenda.’

Describing the ECS as an integral part of the new contingencies of the International Labour Organisation (ILO) Convention 102, Mrs Olejeme expressed optimism that with the representation of the NLC and the Nigeria Employers Consultative Association (NECA) on the Board, the ‘buy-in of Employers and workers across the broad spectrum of the formal economy will enable successful implementation of the scheme as Nigerian workers are part of a global working class network.’

Thanking Mr President for bringing her back to the helm of affairs of the NSITF and entrusting the team with this responsibility of managing the ECS which is very dear to Mr President’s heart ‘we promise to run an all inclusive and harmonious Board that will create a conducive atmosphere for effective and efficient implementation of the ECS.

Drs Olejeme’s boardroom experience spans twenty years. She was a member of the Board of Ajaokuta Steel Company, and Chairman Board of Trustfund Pensions Plc.

She is also a member of the Justice Belgore Committee to Negotiate with organised Labour on the deregulation of the oil sector and also a member of the Dr Christopher Kolade-led SURE.

She is an alumnus of Harvard Business School, USA. and the Wharton Business School, University of Pennsylvania, US.

US Downplays Iran Announcement of Nuclear Advances

The Obama administration is downplaying Wednesday's announcements by Iran that it has a new generation of centrifuges to speed up uranium enrichment and that it is producing nuclear fuel rods. Iran says its nuclear program is for peaceful, civilian purposes. The United States says Tehran is trying to develop nuclear weapons.

Iranian state television broadcast images of President Mahmoud Ahmadinejad watching what it said were 20 percent enriched uranium fuel rods being loaded into an aging reactor that produces nuclear isotopes.

Iran says the domestic production of fuel rods and new carbon fiber centrifuges are major advances in mastering the nuclear fuel cycle, despite U.N. sanction aimed at stopping the process.

U.S. State Department Spokeswoman Victoria Nuland said the fuel rods appear to be intended for the Tehran Research Reactor, which remains under the safeguard of International Atomic Energy Agency inspectors. She said that Wednesday's announcements in Tehran “were not terribly impressive.”

"This is not big news. In fact, it seems to have been hyped. The Iranians have for many months been putting out calendars of accomplishments. And based on their own calendars, they are many, many months behind. This [announcement] strikes us as calibrated mostly for a domestic audience," she said.

The United States and the European Union are trying to close markets for Iranian oil to deprive Tehran of revenue. With the value of the country's currency falling, Nuland said Iran's leaders might be trying to highlight marginal accomplishments to boost domestic public opinion of the government. "Iran is clearly feeling the pressure of its international and diplomatic isolation, of the increasing economic pressure on it, unprecedented sanctions that are growing," she said.

Asked whether Washington is downplaying these events to defuse Israeli concerns about Iran's nuclear program, Nuland said “countries that follow the Iranian nuclear program carefully know precisely what this was and what this wasn't.”

The European Union on Wednesday said it has received Iran's reply to a letter sent nearly four months ago proposing a return to talks on its disputed nuclear program with Russia, China, France, Britain, the United States, and Germany. Nuland said those countries are studying the response. She did not say what the letter said.

Police brutalize resurgent ‘Occupy Movement’ in Lagos

 *teargas Mohammed Fawehinmi on his wheelchair

Ben Ezeamalu

 

The force violently broke up a procession for which they had granted permission. For the second time in four weeks, officers of the Nigeria Police Saturday violently broke up activists and members of civil society who were embarking on a peaceful march in Lagos.

Dozens of tear gas canisters were shot at the crowd and 20 people were arrested, assaulted, and detained at police stations for hours. 

The Joint Action Front (JAF) in collaboration with the Muslim Congress, the Nigeria Bar Association and other civil society groups had planned a memorial in honour of those who lost their lives during the anti-fuel subsidy protests. 

Ten people were killed across the country during the protests, according to organizers of the memorial.

The procession began at about 10 o'clock at the Nigeria Labour Congress (NLC) secretariat, Yaba, amidst a heavy police presence and was planned to end at the Gani Fawehinmi Freedom Square, Ojota, where prayers would be offered for the 'martyrs' by religious leaders. 

"The memorial is for the Muslim, Christian, and other faith-based groups to offer a special prayer session," said Dipo Fashina, JAF's chairperson. 

"It is to further show that religion can be a unifying force towards national unity, social justice and human centred development, rather than a divisive instrument in the hands of the class of exploiters and profiteers," Dr. Fashina added. 

Abiodun Aremu, JAF's secretary, called for an immediate prosecution of the police officer who shot Ademola Aderinto at Ogba, Lagos, among other demands. 

"Part of the demand we are making is that there must be just compensation to the victims," said Mr. Aremu. 

"We have said that they are ten because we have been able to identify that there is one in Lagos, one in Kogi, one in Kwara, and seven in Kano."

"We are taking it up legally to ensure just compensation to them and that the trigger happy police officers must be prosecuted." 

A peaceful movement

At the beginning of the procession, a senior police officer, who arrived at the NLC secretariat, met the organizers of the march and asked that they ensure it was conducted peacefully. 

Leading the procession were Ganiat Fawehinmi, widow of the late activist Gani Fawehinmi; Adegbamigbe Omole, chairperson of the Ikeja and Lagos branches of the Nigeria Bar Association; and Tunde Agunbiade, Lagos State chairman of the National Conscience Party (NCP) among others.

Unlike the anti-fuel subsidy march last month, the peaceful procession was restricted to the service lane of the Ikorodu expressway. 

Dipo Fashina and Ganiat Fawehinmi led the peaceful procession that began from Labour House 

 Police 'force'

As the procession approached Maryland, more than 20 armed police officers, led by the commander of Area F Division, Ikeja, stationed themselves on the Maryland bridge, barricading traffic with their patrol vans. 

It was gathered that another batch of armed police officers had cordoned off the Gani Fawehinmi Freedom Square in the morning. 

The police Area Commander, who put on a bullet proof vest as the procession approached, told the crowd to disperse. 

Efforts by Dr. Fashina and Mr. Aremu to explain that they had, through their lawyer, informed the police about the procession fell on deaf ears as the Area Commander said he had "an order from above" to break up the procession. 

A copy of the notice, written by Bamidele Aturu, a lawyer, and dated February 15, was shown to the senior police officer but he was adamant. 

The organizers, who insisted that they did not need the police permission for their procession, decided to ignore the police and continue their march.

Then the Area Commander gave a signal to his boys who immediately shot tear gas canisters immediately into the air.

The crowd in return pelted the police with stones, an action which seemed to infuriate them the more. More tear gas canisters followed but the activists were unrelenting. 

Mr. Fashina, a former president of the Academic Staff Union of Nigerian Universities (ASUU), dared the armed officers to shoot as he tried to force his way beyond their barricade.

Others stood their ground.

The police officers, on the orders of the area commander, started arresting anyone within sight.

"Arrest him, brutalize him," he barked to a police officer who was on the heels of a journalist. 

About 20 people were arrested and taken to the Special Anti-Robbery Squad (SARS) office, Ikeja, and the Alausa Police Station, where they were detained for hours before their eventual release. 

"We were brutalized, tortured, battered and taken down to police command," said Ishola Musbau after they were released. "They used guns and batons on us, kicking us with their boots." 

Police used tear gas fumes and violence to disperse the procession 

'A wicked act'

Mr. Aremu described the police treatment of the activists as "uncalled for and unacceptable.

"The Area F commander, whose name we are still searching for, elements like that do not deserve to be in the police for one minute," said Mr. Aremu. 

"We have the right to our freedom and that's what we must emphasize because the Lagos State police command cannot justify why that happened. 

"As a matter of fact, the excuses they are giving is that the order is from the IG (Inspector-General), so the IG must defend himself whether he is the one that ordered... without the knowledge of the Lagos State police commissioner," said Mr. Aremu. 

Mr. Agunbiade said that the march was necessary because "it is the only way to make our grievances known to the government." 

"It is unpardonable for an area commander to do what he has done to us today," said Mr. Agunbiade, who was also arrested and detained. 

"We were on a peaceful procession and fighting for our rights and we don't see the reason why the Nigeria police had to take the action they had taken today," he added. 

Chude Achike, JAF's deputy chairperson, wondered why the activists would be detained at the anti-robbery station. 

"Sometimes you tend to think that the police have learnt one or two things in the way they conduct themselves... you want to think something positive about them," said Mr. Achike.

"But it does not take long before they show their true nature and that is that of brutality and intimidation." 

Mr. Aremu said that another march would "definitely" take place. 

"No amount of repressions, brutalization will stop us from doing that until we reap the maximum freedom and happiness that Nigerians deserve," said Mr. Aremu.

 

FG Probes Possible Fraud Over $12.6 Billion Subsidies

Nigeria has discovered a huge discrepancy in the amount of the motor fuel it subsidises and what people actually consume, a legislative committee said, supporting the idea that a government scheme to make petrol cheaper is wasteful and corrupt.

President Goodluck Jonathan's government abruptly removed the subsidy on Jan. 1 but strikes and protests by trade unions and civil society forced him to reinstate some of it, although the pump price was increased by 50 percent.

"What we have here is that 59 million litres were discharged by vessels, but the daily consumption locally was 35 million litres," Farouk Lawan, chairman of a House of Representatives committee probing subsidies, told an Abuja sitting late on Wednesday, in comments broadcast on independent station Channels TV on Thursday.

The comments are likely to further stoke the debate over the fuel subsidy, which economists say benefits wealthy fuel importers and smugglers more than ordinary Nigerians.

"There is a gap of 24 million litres per day being funded by Nigerians as subsidy that was not utilised by them. This of course amounts to overpayment; or in other words, sharp practices," the legislator said.

Critics of the subsidy say fuel importers overcharge for fuel in corrupt accounting procedures and that much of the fuel bought for local consumption is anyway shipped over the border to Cameroon and Benin, where it can be sold for a huge profit by smugglers. Both views seem to be supported by Lawan's findings.

"Smuggling has been encouraged by the system ... if local consumption is 35 million litres per day and we are paying for 59 ... we're making available 24 million litres a day for importers to smuggle out," Lawan said.

Lawan's committee is one of several investigations now in place on Nigeria's energy sector that were spurred by the fuel subsidy row, including a Senate probe into subsidies, a probe by the corruption watchdog into the state oil company and price regulator, and an audit of the entire Oil Ministry.

BLAME GAME

Nigeria imports most of the fuel it consumes because its four refineries are decrepit, producing at only a quarter of their installed capacity. The government buys the fuel then sells it to the public at cheap, subsidised prices.

The committee heard the subsidy paid for 24 million litres per day imported by marketers but not consumed by Nigerians amounted to 669 billion naira ($4.14 billion).

Economists say the fuel subsidy encouraged corruption and the wasteful use of fuel. The government had estimated it would save 1 trillion naira ($6.2 billion) in 2012 by eliminating it.

But Nigerians have always fought against its removal because they consider cheap petrol their sole benefit from living in a major crude oil producer which loses billions of dollars to corruption.

Its removal had doubled petrol pump prices to around 150 naira ($0.93) per litre from 65 naira, but Jonathan on Monday partially reinstated the subsidy, pegging the price at 97 naira.

"Subsidy was paid based on what was discharged; that was the practice I met on the ground," Reginald Stanley, head of the Petroleum Products Pricing Regulatory Agency, which is in charge of fuel imports, told the committee.

Stanley, who took charge of the agency in 2011, said he had changed the system and from Jan. 1, subsidy would be paid only for fuel actually trucked out of the port for consumption.

Stung by accusations of fraud, Nigeria's fuel marketers took out newspaper advertisements on Thursday, saying changes brought into the Petroleum Support Fund scheme in 2007 were to blame for allowing firms without pump stations to claim the subsidy.

"This saw the emergence of 'briefcase' companies (with no asset base nor accountability) in the PSF scheme," the Major Oil Marketers Association of Nigeria said. ($1 = 161.4300 naira)

Nigeria’s parliament is probing whether fraudulent practices by government agencies fueled a fivefold rise in spending on gasoline subsidies in the past three years, said the head of the investigating committee. 

The government is probably paying more than 2 trillion naira ($12.6 billion) to fuel importers to cover the difference between market costs and state-regulated prices for last year, said Farouk Lawan, chairman of a House of Representativescommittee investigating the discrepancies. That’s up from 384 billion naira in 2009 and represents almost half of last year’s 4.5 trillion budget. 

Government agencies that import the fuel were involved in“instances where they either didn’t follow due process, or certain provisions of some laws were abused,” Lawan said in a Feb. 7 interview in Abuja, the capital. Levi Ajuonuma, a spokesman for the petroleum ministry, said the investigation should be completed before making any conclusions. 

Nigeria, Africa’s top oil producer, relies on imports to meet about 70 percent of its domestic fuel needs due to a lack of refining capacity. President Goodluck Jonathan’s attempt last month to scrap the subsidies sparked a week-long general strike and prompted the parliamentary investigation. 

The strike ended on Jan. 16 after Jonathan agreed to limit gasoline-price increases to 97 naira a liter (0.26 gallon). Prices initially more than doubled from 65 naira a liter. 

‘Largest Fraud’

“This is the single largest fraud that has ever been disclosed in Nigeria’s political history,” Clement Nwankwo, executive director of the Abuja-based Policy and Legal Advocacy Centre, said by phone yesterday. 

While the petroleum ministry estimates national fuel consumption of 35 million liters a day, the government paid subsidies on 59 million liters daily last year, said Lawan, a member of Jonathan’s ruling People’s Democratic Party. 

Petroleum Minister Diezani Alison-Madueke on Feb. 7 named Nuhu Ribadu, a former chief of the Economic and Financial Crimes Commission, to head a 20-member task force to monitor revenues and oil production and exports. 

Fuel imports are managed by the Nigerian National Petroleum Corp., or NNPC, the Petroleum Products Pricing and Regulatory Agency, Department of Petroleum Resources, and the Pipelines and Product Marketing Co., which are under the Ministry of Petroleum Resources. 

Nwankwo questioned the ability of the ministry where the alleged corruption took place to investigate itself and said ultimately Jonathan is responsible.

Presidential spokesman Reuben Abati didn’t answer four calls to his cell phone and a text message seeking comment. 

Alleged Violations

“No doubt about that, it happened under his watch,” Lawan said, referring to Jonathan. “But it doesn’t necessarily mean that he knew about what was happening.” 

Lawan declined to give details of alleged violations, saying they would be announced when the eight-member committee is scheduled to release its report in two weeks after listening to testimony from officials from the government and fuel importing companies. 

The central bank has already paid 1.75 trillion naira for last year, Lawan said, and the full cost of the subsidies hasn’t been fully counted because of outstanding payments.

“From the figures that we are compiling now, I can confidently say the figure for 2011 will be in excess of 2 trillion,” he said. 

Naira Pressure

Fuel imports have been a leading source of demand pressure in Nigeria’s foreign-currency market, according to the Central Bank of Nigeria. Since the beginning of the committee’s investigation, demand for foreign-currency to fund fuel imports has eased, central bank Deputy Governor Tunde Lemo told Lawan’s committee at a public hearing on Feb. 7. 

“Perhaps because of the ongoing probe, we have seen a moderation in the demand for foreign exchange especially from the petroleum sector,” Lemo said. Since the start of the investigation, “a lot of order is being brought into the management of the petroleum products.” 

The naira, which has gained 2.2 percent this year, advanced 0.2 percent to 158.85 per dollar as of 2:35 p.m. in Lagos, the commercial capital, according to data compiled by Bloomberg. 

While the exact figure for domestic fuel consumption isn’t known, the petroleum ministry estimates it rose by 3 million liters a day last year from 32 million liters in 2009. 

Average crude prices rose 53 percent to $95.10 a barrel in 2011 from $62.03 a barrel in 2009, according to data compiled by Bloomberg. 

Nigeria is the fifth-biggest source of U.S. imports. The country produced about 2.1 million barrels of oil a day in January, unchanged from the previous year, according to data compiled by Bloomberg. About 90 percent of Nigeria’s crude is pumped by Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Total SA (FP) and Eni SpA (ENI) in joint ventures with NNPC.