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Ozone depletion: When stakeholders sought to validate Kigali Amendment paper on Montreal Protocol

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Ozone depletion: When stakeholders sought to validate Kigali Amendment paper on Montreal Protocol

Nigeria is in the first group of A5 countries that want to replace HCFCs with ozone-friendly hydrocarbons, according to the Montreal Protocol. Innocent Anoruo was at a workshop in Lagos where stakeholders gave their nod to the treaty

UNIDO ozone layer
L-R: Amir Sabry, Bert Veenendaal and Etienne Gonin

“We are here today to validate all the work we have done” to stop the depletion of the ozone layer, were the words of Mrs. Ozunimi Iti, United Nations Industrial Development Organisation (UNIDO) representative who came from Vienna, Austria, to attend the event.

In her goodwill message from the UN body at the Stakeholders’ Workshop for the Validation of Nigeria’s HPMP Stage II Proposal, Iti said UNIDO’s projects go beyond stopping the depletion of the ozone layer, to helping stakeholders adjust to new trends that protect the environment from dangerous gases.

The workshop that took place on Wednesday, July 26, 2017 in Lagos was attended by about 150 participants from Ministries Departments and Agencies (both federal and states), United Nations bodies, Refrigeration and Air-conditioning Services (RACS) industrialists and the media.

Montreal Protocol Nigeria
A view of participants at the workshop

The Hydrochlorofluorocarbons (HCFC) Phase-out Management Plan, or HPMP, for Nigeria was approved at the 62nd meeting of the Executive Committee (ExCom) of the Multilateral Fund (MLF) for the implementation of the Montreal Protocol, which will result in the complete phase-out of 407.7 ODP tonnes of HCFC in the country by January 1, 2040. United Nations Development Programme (UNDP) is the lead Implementing Agency (IA) while UNIDO is the Cooperating Agency (CA).

Declaring the workshop open, the Permanent Secretary, Ministry of Environment, Shehu Usman, urged the participants to brainstorm on the strategies for HPMP Stage II and make meaningful contributions for a quality document.

Represented by the Director, Pollution Control and Environmental Health, Charles Ikea, he said: “We have made considerable progress in the implementation of Stage I of the HPMP project. The Pilot Plant for the production of High Grade Hydrocarbon Refrigerants to be used as alternatives to HCFCs in the R&AC servicing sector has since been completed and commissioned in 2015.

“We are in the process of fashioning out ways of commercialisation of the plant. The System House project has also been completed this year, and we are preparing for commissioning of the project later next year.”

The Montreal Protocol (MP) on Substances that Deplete the Ozone Layer (a protocol to the Vienna Convention for the Protection of the Ozone Layer) is an international treaty designed to protect the ozone layer by phasing out the production of numerous substances that are responsible for ozone depletion. It was signed by 46 countries in September 1987.

Usman noted that the government of Italy has also offered to support the HPMP Stage II project as a bilateral partner, adding that all sectors will be continuously sensitised and engaged in the process, particularly the foam and RACS sectors. “We also encourage the acquisition of skills for refrigeration technicians and improve service delivery through the development of a certificate scheme for the technicians.”

He informed the participants that the Kigali Amendment was adopted at the 28th MOP to the MP in 2016 in Kigali, Rwanda. “By the amendment, HFCs, which are potent greenhouse gases are now added to the list of substances to be controlled under the Protocol. Parties agreed to cut the use of HFCs by 85 per cent by the late 2040s. First reductions by most developed countries are expected in 2019. Most developing countries will follow with a freeze of HFCs consumption levels in 2024.”

He re-affirmed the ministry’s commitment to the MP and its ODS phase-out programme.

UNDP Programme analyst, Montreal Protocol and Chemicals Unit, Etienne Gonin, disclosed that submission from the workshop would be submitted to MLF latest August 7, 2017 (Montreal time), for it to be discussed at the next meeting. “And we want it discussed,” he added.

Gonin said the production facility of the HC in commercial scale, which cost Egypt $5 million, may cost Nigeria up to $8 million. This, he told EnviroNews, is because of differences in production in different countries.

UNDP Senior Expert, Foams, Bert Veenendaal, added that the risk in the project is low, and that the process can be replicated anywhere in the world.

David Omotosho, fondly referred to as Father of Ozone, who came in from the United States for the workshop, said the phase-out strategic plan for the foam sector is expected to be approved by MLF between November and December 2017, and the conversion of thermo ware phases II and III in parallel up to February 2018. He added that the project is expected to be completed in 2021.

After a break, the stakeholders came back to demand that sensitisation should be taken to the grassroots, especially in the rural areas, who use these chemicals in their homes, not focusing only on industrialists.

However, Idris Abdullahi of the National Ozone Office (NOO) promised that when funding comes, “we plan to use task force to implement the Kigali Amendment.”

Before giving his vote of thanks, Abdullahi said the adoption of the Kigali Amendment “is a win-win situation for Nigeria, as we are aware of natural hydrocarbon sources for refrigeration.”

Countries like the Republic of the Marshall Islands and Mali have ratified the Kigali Amendment.

The Kigali Amendment was adopted in October 2016, and will enter into force on January 1, 2019 if 20 or more parties to the Montreal Protocol ratify it by that time.

Countries that ratify the Kigali Amendment commit to cut the production and consumption of HFCs by more than 80% over the next 30 years. It is expected that this will avoid up to 0.5° Celsius warming by the end of the century, while continuing to protect the ozone layer, according to UN Environment.

N3.38bn AfDB facility to boost potato production in Plateau

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N3.38bn AfDB facility to boost potato production in Plateau

The Ministry of Finance has secured a N3.38 billion loan for Plateau State for the mass production and development of the Irish potato value chain.

irish-potatoes
Irish potatoes

Briefing State House correspondents after the Federal Executive Council (FEC) meetings on Wednesday, July 26 2017, Finance Minister, Kemi Adeosun, said the loan was secured from the African Development Bank (AfDB) for the development of the Irish potato value chain, and that the project is expected to create 60,000 jobs.

Adeosun revealed that Plateau State would be providing N599 million as counterpart funding for the project.

Adeosun disclosed that the loan has a five years moratorium thereafter whatever remained of the loan would be paid at the rate of 1% in 20 years.

She said the loan would be used to develop the Irish potatoes value chain in 17 local local government areas of the state.

The implementation would be jointly executed by FADAMA project and a unit in the state Ministry of Agricuture. About 70 percent of the loan would be used for the provision of infrasture, extension services, impoved planting and marketing.

The whole exercise according to the minister is aimed at boosting production and minimising wastages.

It was gathered that the idea was muted during the President Goodluck Jonathan’s government by former Minister of Agricuture, Dr. Akinwumi Adesina, for the development of the value chain for selected roots and tubers in the country. Adesina is currently head of AfDB.

Plateau State is Nigeria’s largest producer of Irish potatoes.

N650m fraud: Court releases Akinjide’s international passport

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N650m fraud: Court releases Akinjide’s international passport

Justice Chuka Obiozor of the Federal High Court in Lagos on Wednesday, July 26, 2017 ordered the immediate release of the international passport of former Nigerian minister, Oloye Olajumoke Akinjide, to enable her proceed to Germany for medical treatment.

Olajumoke Akinjide
Olajumoke Akinjide

Akinjide is standing trial before a Federal High Court, Ibadan, Oyo State, alongside a former Nigeria Senator, Ayo Adeseun, and one Olanrewaju Otiti over alleged N650 million fraud.

Though Akinjide was granted bail on self-recognisance, the trial judge, Justice Joyce Abdulmaleek, had ordered her to deposit her international passport pending the conclusion of her trial.

In seeking the release of Akinjide’s international passport on Wednesday, her lawyer, Chief Bolaji Ayorinde (SAN), told the court that the application, which was dated July 12, 2017, was based on the recommendation of the National Hospital, Abuja, which stated that her client needed a foreign medical treatment.

He also sought an order of the court for the release of the international passport to Akinjide, anytime she may need it for other foreign medical trips.

Ayorinde told the court that the prosecution has promised not to oppose the application.

He also told the court that his client is not a flight risk being a politician, that she will come back to the country to face the trial.

EFCC counsel, Mohammed Aliyu, confirmed being served with the application and informed the court that his Commission is not opposing the application.

But Justice Obiozor said the only condition the will make him to grant the application is if Chief Ayorinde will guarantee that the former minister will return back to Nigeria after her treatment, which the learned silk agreed to.

Upon agreeing to the court’s condition, Justice Obiozor ordered the EFCC to immediately release the former minister’s passport, to enable her travel to Germany for medical treatment.

The judge however ordered that the former minister must not stay beyond 30 days and refused her application to be traveling at will.

The former minister, Akinjide, Senator Adeseun and Olanrewaju Otiti, are standing trial before an Federal High Court, Ibadan over alleged N650 million fraud.

They were arraigned alongside the former Petroleum Minister, Diezani Alison-Madueke, on a 12-count amended charge bordering on conspiracy, unlawful conversion and stealing of N650 million in the build up to the 2015 general elections.

During their arraignment, it was only Akinjide and Otiti that were present in court, and they both pleaded not guilty to the offences.

Following their not guilty plea, the court granted them bail on self-recognisance.

By Chinyere Obia

Ogba Zoo: Obaseki to issue Executive Order to halt deforestation

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Ogba Zoo: Obaseki to issue Executive Order to halt deforestation

Governor Godwin Obaseki of Edo State says he intends to issue an Executive Order that will stop further deforestation and encroachment on the land belonging to the Ogba Zoological Garden and Nature Park in Benin City, the state capital.

Ogba Zoo
The Ogba Zoological Garden and Nature Park in Benin City, Edo State

The governor made the disclosure recently while receiving the report of a committee set up by the government to investigate the allegation of encroachment on the land belonging to the zoo.

Obaseki said his administration would no longer entertain any applications from any community for the purpose of deforestation.

“The Secretary to Edo State Government, Osarodion Ogie, will set up a team that will ensure full effect of this report within this month, July. There will be no delay at all regarding this report,” he assured.

He maintained that his administration would set up a forestry commission that would come up with clear policies on how to protect the state’s forest resources.

The governor assured the members of the Ad-hoc committee that the patrimony (Ogba Zoo) would be re-acquired no matter who has encroached on the land.

“I want to assure you that our patrimony will be re-acquired. We will do all that is needed to re-establish the zoo the way it ought to be, no matter who is involved,” he added.

Obaseki described as sad, the attitude of those who were given the responsibility to protect the asset as they did the contrary. “We as a government have a clear mandate from the people to re-establish the essence of governance. We will implement the report without fear or favour,” he promised.

Earlier, the Chairman of the Ad-hoc Committee and Solicitor General/Permanent Secretary, Ministry of Justice, Oluwole Iyamu, said their work was hindered by the lawlessness of the people in the area where the investigation was carried out, as they had to work under the protection of the police, the Department of State Security Service (SSS) and the military.

He advised government to rely on security agencies in enforcing whatever decision that would be arrived at after studying the report because, he added, the area had become a lawless zone.

Iyamu said the committee observed that the major challenge facing the Zoo was the failure of institutions, governance and the people in authority.

He expressed shock “that an institution like Ogba Zoological Garden and Nature Park has no survey plan but just a sketch which attempts to demarcate or describe what the zoo should look like.”

Iyamu added: “The crisis of the Zoo began in year 2,000 during the administration of Chief Lucky Igbinedion which reserved land for some communities for deforestation. The lack of coordination between the Ministry of Environment and the Ministry of Lands and Survey led to the encroachment on over 17 hectares of land belonging to the zoo. As at today, over 60 per cent of the original land belonging to Ogba Zoo has been taken over by land developers with construction work currently on-going.”

Maternal, child health: Programme welcomes second social entrepreneurs’ cohort

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Maternal, child health: Programme welcomes second social entrepreneurs’ cohort

The healthymagination Mother and Child Programme has announced its second cohort of social enterprises that will receive training and mentorship aimed at improving and accelerating maternal and/or child health outcomes in Africa.

Robert Wells
Robert Wells, Executive Director of healthymagination

Launched in March 2016 by GE and Santa Clara University’s Miller Centre for Social Entrepreneurship, the programme aims to continue to accelerate health innovations in sub-Saharan Africa.

After a rigorous application and evaluation process, 14 organisations were selected to be in the programme’s second cohort of social entrepreneurs and accelerate maternal health outcomes across Africa with impact areas.

The organisations are: Afya Research Africa, Cedars Diagnostics, doctHERs, Early Reach, Liberian Energy Network, Maternity Foundation, MDaaS, MOBicure, Neopenda, Sevamob, Sisu Global Health, Southlake Medical Centre – under LiveWell, SubQ Assist, and Totohealth Tanzania.

The organisations represent Benin, Botswana, Ethiopia, Ghana, Kenya, Liberia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Zimbabwe, among others. The second cohort of entrepreneurs is currently attending a three-day, in-person workshop in Johannesburg, South Africa.

The kick-off workshop, according to the organisers, packs core business principles into a powerful forum facilitated by senior-level Miller Centre mentors and GE business leaders. The programme is designed to help the organisations acquire business fundamentals, improve their strategic thought processes, and articulate business plans that demonstrate impact, growth and long-term financial sustainability.

“Solving local health challenges calls for locally-adapted interventions and innovations, and Social Entrepreneurs in sub-Saharan Africa are playing a major role in this regard.” said Robert Wells, Executive Director of healthymagination. “The healthymagination Mother and Child programme will continue to provide them with mentorship and in-depth training, accelerating health innovation and furthering our goal to increase the quality, access and affordability of maternal and child health.”

“GE’s mission to work on better health for more people is evidenced by our continuing partnership to help social enterprises scale their impact,” commented Dr Thane Kreiner, executive director of Miller Centre for Social Entrepreneurship. “This cohort’s impact aligns with the target indicators for United Nations Sustainable Development Goal #3. Miller Centre is honoured such amazing social enterprises applied to this Mother & Child accelerator programme.”

The kick-off workshop will be followed by a six-month, online accelerator programme with in-depth mentorship from Silicon Valley-based executives and local GE business leaders. The accelerator and mentorship programme will culminate in a “Premier Pitch” event in Africa where the 14 organisations will present their respective enterprises to an audience of potential investors.

“Nurturing a vibrant social entrepreneurship ecosystem is key for sustainable healthcare development and is a major focus area for GE in Africa,” said Farid Fezoua, President & CEO, GE Healthcare Africa. “Through their various initiatives to strengthen mother and child care, these social entrepreneurs are bringing innovative approaches to tackle some of Africa’s biggest challenges and this is truly exciting. By leveraging GE’s domain expertise and the business-building skills imparted by Miller Centre’s Silicon Valley mentors, we are honoured to provide mentorship and guidance to these great organisations.”

California governor endorses climate bill to extend state’s cap-and-trade programme

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California governor endorses climate bill to extend state’s cap-and-trade programme

Governor Edmund G. Brown Jr. of California State in the US on Tuesday, July 25, 2017 signed the AB 398 Bill, which extends and improves the state’s world-leading cap-and-trade programme to ensure California continues to meet its ambitious climate change goals.

Governor Edmund G. Brown Jr.
Governor Brown gives remarks ahead of signing ceremony on Treasure Island.

Introduced by Assemblyman Eduardo Garcia (D-Coachella), the bill seeks to prolong California’s cap-and-trade programme through 2030.

“California is leading the world in dealing with a principal existential threat that humanity faces,” said Governor Brown at the signing ceremony. “We are a nation-state in a globalising world and we’re having an impact and you’re here witnessing one of the key milestones in turning around this carbonised world into a decarbonised, sustainable future.”

The Governor signed the legislation on Treasure Island, the same location where Governor Arnold Schwarzenegger signed AB 32 (the California Global Warming Solutions Act of 2006), which authorised the state’s cap-and-trade programme more than a decade ago.

“Thanks to bipartisan support California was able to extend its historic cap and trade programme which protects our environment and preserves our nation-leading economic growth. Governor Brown and legislative leaders from both parties came together to ensure that California continues to march toward a clean, prosperous future.

“I want to especially thank Assembly Republican Leader Chad Mayes and his Republican colleagues for following in the footsteps of great Republicans like Teddy Roosevelt and Ronald Reagan, who both recognised the importance of fighting for clean air and water and natural spaces. I hope politicians around the country can learn from the example set in Sacramento last week. Republicans and Democrats were able to come together to pass legislation that helps clean up our environment for our children while at the same time supporting a booming economy,” said former Governor Schwarzenegger.

AB 398 strengthens and extends the state’s cap-and-trade programme, which would have expired without legislative action. The programme, along with other state carbon reduction measures, ensures California will meet its SB 32 target to reduce greenhouse gas emissions 40 percent below 1990 levels by 2030.

“As the Trump Administration seeks to undermine our nation’s climate leadership – the world is looking to California. We are proving that growing an economy and protecting the environment is not an either-or proposition; we can and will continue to do both. Today’s extension of our landmark cap-and-trade programme, coupled with our effective clean energy policies, will move us forward into the future and we plan to take the rest of the world with us,” said Senate President pro Tempore, Kevin de León.

Edmund G. Brown Jr.
Governor Brown after signing AB 398

“There’s an old expression, ‘think globally, act locally.’ The cap-and-trade and air quality bills the Governor is signing into law this week do both. With these bills we are continuing California’s global leadership on climate change and, at the same time, bringing direct air quality improvements to local communities that have been most harmed by pollution. California is once again showing you can succeed by being visionary and practical at the same time,” said Assembly Speaker, Anthony Rendon.

“I applaud the great vision of Governor Brown, Senate President pro Tempore Kevin De León and Assembly Speaker Anthony Rendon. The passage of AB 398 will accelerate California to the next critical step in our global climate leadership. We are celebrating a historic bipartisan effort that will allow us to achieve our ambitious climate goals, retain industry jobs to sustain our ever growing, clean green economy, all while addressing vital public health and air quality issues. This new statewide mechanism will ensure equitable climate investments in the communities most impacted by pollution,” said Assemblymember Eduardo Garcia.

AB 398 passed in both the California State Senate and Assembly last week with support from Democratic and Republican lawmakers and more than 150 environmental; climate; public health; clean energy and technology; agriculture; food processing; business; labor; local government; community; and utility leaders; researchers and economists; and newspaper editorial boards from across California.

This legislation extends the programme by 10 years until 2030 in the most cost-effective way possible, and makes the following improvements based on years of operation, analysis and input:

  • Ensures that carbon pollution will decrease as the program’s emissions cap declines.
  • Cuts the use of out-of-state carbon offsets and brings those environmental benefits back to California.
  • Designates the California Air Resources Board as the statewide regulatory body responsible for ensuring that California meets its statewide carbon pollution reduction targets, while retaining local air districts’ responsibility and authority to curb toxic air contaminants and criteria pollutants from local sources that severely impact public health.
  • Decreases free carbon allowances over 40 percent by 2030.
  • Prioritises cap-and-trade spending to ensure funds go where they are needed most, including reducing diesel emissions in the most impacted communities.

Extending California’s cap-and-trade programme ensures that billions of dollars in auction proceeds continue flowing to communities across California. To date, these investments have preserved and restored tens of thousands of acres of open space, helped plant thousands of new trees, funded 30,000 energy efficiency improvements in homes, expanded affordable housing, boosted public transit, helped more than 100,000 Californians purchase zero-emission vehicles and supported many other programmes.

AB 617 by Assemblymembers Cristina Garcia (D-Bell Gardens), Eduardo Garcia (D-Coachella) and Miguel Santiago (D-Los Angeles) – part of the legislative package announced with AB 398 – will be signed separately later this week and will establish a groundbreaking program to measure and combat air pollution at the neighborhood level – in the communities most impacted.

IUCN supports global treaty to recognise fundamental environmental rights

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IUCN supports global treaty to recognise fundamental environmental rights

A preliminary draft of a “Global Pact for the Environment” – which aims to serve as a basis for a new UN treaty to define fundamental environmental rights – was recently launched at a high-level event in Paris, with the backing of French President Emmanuel Macron, former UN Secretary-General Ban Ki-moon and IUCN President, Zhang Xinsheng.

IUCN
L-R: Former UN Secretary-General Ban Ki-moon, French President Emmanuel Macron, President of the Constitutional Council of France Laurent Fabius, and IUCN President Zhang Xinsheng. Photo credit: Michel Richard

The Pact synthesises fundamental and common principles of environmental law, including the 1972 Stockholm Declaration, the 1982 World Charter for Nature, and the 1992 Rio Declaration. It sets out principles which compel States and other legal persons to protect the environment, promote sustainable development and intergenerational equity, and ensure the right of access to information and environmental justice, among others. The draft will be presented to the UN General Assembly by President Macron this September. Should the treaty be adopted at the United Nations, it will be the first time environmental rights will have legal and binding power at national and international levels, and will be able to be used in courts.

“There are over 500 international treaties dealing with the environment, with varying degrees of enforcement. This proposal to the UN will bring greater coherence to international environment laws, and set out clear obligations for States and individuals to protect the environment,” says Justice Antonio Herman Benjamin, Justice of the National High Court of Brazil (STJ) and Chair of IUCN’s World Commission on Environmental Law.

“The IUCN World Commission on Environmental Law is pleased with the reception the Pact has received from leaders in various sectors. We will continue to develop the environmental rule of law ensuring that healthy ecosystems and biodiversity are regarded as a human right,” he added.

The launch of the preliminary draft was held at the Sorbonne in Paris recently, with politicians, international jurists and scholars in attendance. They included Antonio Herman Benjamin, Chair of the R20 – Regions of Climate Action Arnold Schwarzennegger and Former UN Special Envoy on Climate Change Mary Robinson.

The initiative is led by Laurent Fabius, President of the Constitutional Council of France and former President of the Paris Climate Conference, with the support of the Environmental Commission of Le Club des Juristes (CDJ). Members of the IUCN Academy of Environmental Law and the IUCN World Commission on Environmental Law were involved in producing the draft. Justice Antonio Herman Benjamin and Nicholas A. Robinson, Chair Emeritus of the Commission served as Vice-Chairs of the negotiating and drafting committee.

COP23: Over 830 bodies jostle to showcase climate action

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COP23: Over 830 bodies jostle to showcase climate action

The 23rd Session of the Conference of the Parties (COP23) to the United Nations Framework on Climate Change (UNFCCC) scheduled to hold November 6 to 17 in Bonn, Germany is said to be attracting a considerable level of interest, in the light of the number of side events applications received by the organisers.

WCCB
A view of the atrium in the World Conference Centre Bonn (WCCB) in Germany, venue of COP23

The UNFCCC disclosed that, by the end of last week’s deadline for official side events, more than 830 applications had been made – “many more than COP22 and more than can be physically accommodated at the upcoming conference on the banks of the River Rhine”.

The UN body stressed that the organisations that have applied for side events include representatives of business and industry, environmental groups, farmers, indigenous peoples, local governments, research institutions, trade unions; along with women, gender and youth groups.

Patricia Espinosa, Executive Secretary of the UNFCCC, said: “There is clearly world-wide excitement, enthusiasm and interest in attending the conference – COP23 – with official organizations keen to showcase their climate action, share ideas and contribute to rapid movement forward. This underlines the significant support for the Paris Climate Change Agreement and its implementation and we thank all those who have applied.

“Clearly it has also left the UN climate convention side events team with some tough decisions to make to try and accommodate as many official side events as is possible. Given the imperative of meeting safety requirements and the physical space available, not everyone who has applied can be given the green light. We will however endeavor to be as creative and sensitive as possible in the selection.”

The many official side events and exhibits by Parties (governments), non-Party stakeholders and the UNFCCC secretariat at COP23 will take place in the “Bonn Zone”, making it a major hub for showcasing climate action, knowledge-sharing, capacity-building and networking. The final decisions on official side events will be taken early September. In addition, interested groups can register for COP23 cultural events in the city of Bonn.

The secretariat of the UNFCCC is hosting COP 23 in close collaboration with the Government of Fiji, who will serve as the President of the meeting and will provide the political leadership to move forward international cooperation on climate change.

The Government of Germany, as the host country of the secretariat, along with the City of Bonn and the State of North Rhine-Westphalia, are providing political and budgetary support to the organisation of the event, which is expected to attract more than 20,000 people.

The UNFCCC urges delegates wishing to attend the global event to make bookings for hotels and other forms of accommodation as soon as possible. Comprehensive information on COP23, including on accommodation and other logistics, can be found in the new UNFCCC COP23 Info Hub.

Transparency agency wants oil revenue savings transferred to Sovereign Wealth Fund

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Transparency agency wants oil revenue savings transferred to Sovereign Wealth Fund

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for the transfer of all the country’s oil revenue savings into the custody of the Nigeria Sovereign Investment Authority (NSIA).

Waziri-Adio
Executive Secretary of NEITI, Waziri Adio

In an Occasional Paper titled: “The case for a robust oil savings fund for Nigeria”, NEITI stated that its position was informed by the transparency rating of the NSIA by the global Sovereign Wealth Institute. The NSIA had scored nine out of 10 on the Sovereign Wealth Institute’s transparency index, the highest score by any African Sovereign Wealth Fund.

The NEITI Occasional Paper recalled that the Nigeria Sovereign Wealth Fund was set up in 2011 to build a savings base, develop infrastructure and provide stabilisation in times of economic stress for the country. The fund was structured into three components – the Future Generations’ Fund 40%, Nigeria Infrastructure Fund 40% and 20% for the Stabilization Fund and started off with a seed capital of one billion dollars ($1 billion) in 2012. In November 2015 and March 2017, the government transferred additional $500 million into the fund bringing the total savings to $1.5 billion.

NEITI however observed that while these savings were significantly below projected transfers to the NSIA, it  was   satisfied   that  the funds under the management of the Authority have not been depleted unlike the other oil savings accounts – The Excess Crude Account and  0.5% Stabilisation Fund.

According to NEITI, “the NSIA Act (2011) is an improvement on the legislations for the ECA and the 0.5% Stabilisation Fund in terms of comprehensiveness, transparency and accountability. While the ECA and the 0.5% stabilisation fund were established each by a single clause in broader (fiscal) legislations, with no specific governance, transparency or accountability requirements, the NSIA is a comprehensive legislation with extensive corporate governance and management provisions in line with global principles and best practices”.

The NSIA law emphasises professionalism and technical expertise of both management and members of the NSIA board with clearly defined reporting requirements and accountability relationships between the management, Board, and Council.

NEITI noted that while the NSIA made N192 billion return on its investments, the Excess Crude Account and the 0.5% Stablisation Fund recorded zero returns on investment.

NEITI expressed concerns that unlike the Sovereign Wealth Fund, the Excess Crude Account and the Stabilisation Funds have suffered all kinds of abuses over the years thus undermining the objectives for which they were set up. The NEITI Fiscal Allocation and Statutory Disbursement Audit report released in 2013 had revealed that while N109.7 billion was transferred into the Excess Crude Account for the period 2007 to 2011, the sum of N152.4 billion was withdrawn from the account. As at May 31, 2017, the account had an outstanding sum of N29.02 billion.

The paper further revealed that between 2005 and 2015, the sum of $201.2 billion accrued to the Excess Crude Account, but $204.7 billion was withdrawn from the same account. In other words, outflows were 102% of inflows.

The NEITI Occasional paper noted that the relevant laws that prescribed the condition for disbursement of the 0.5% Stabilisation Fund and the Excess Crude Account did not specify how the funds should be withdrawn and allocated.

The Report says: “The inherent pitfalls in this arrangement became glaring in a recent report by the National Economic Council Committee on the ECA, where it noted that the President of Nigeria, the Federation Accounts Allocation Committee (FAAC) and the CBN were listed at various times as approving authorities for withdrawals from the ECA”.

These indiscriminate withdrawals, the Paper argued, pointed to the fact that Nigeria has no prudent and robust oil revenue savings scheme for purposes of generational equity.

NEITI advised Nigeria to learn from resource-rich countries like Norway. It explained that Norway transfers all oil revenues into its Sovereign Wealth Fund called the Government Pension Fund Global and then proceeds to disburse only the amount needed to finance any deficit in its budget (Norway’s budget is based on non-oil revenue).

From a modest ‘seed capital’ of less than $310 million in 1996, the total asset value of the Norway’s sovereign wealth fund is currently $922 billion.

The NEITI Occasional Paper therefore recommended that the $95 million currently in the Stabilisation Fund and the $2.3 billion in the Excess Crude Account should be transferred into the Sovereign Wealth Fund as investment savings. NEITI also renewed its advice to the government to ensure constant savings whether oil prices are high or low. It underlined the need for regular payouts from the investments proceeds, as stipulated in the NSIA Act, to compensate beneficiaries especially the three tiers of government for their sacrifice in saving for the rainy day.

The NEITI Occasional Paper further suggested that government should also delink its expenditure (budget) from oil revenues and pursue prudent macro-economic policies capable of shifting attention to the non-oil sectors.

Finally, NEITI urged the FGN and the States to speedily resolve the litigation before the Supreme Court to ensure that remittances are made into the fund without interruptions.

Government sets aside N1.6bn women empowerment fund

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Government sets aside N1.6bn women empowerment fund

The Federal Government on Tuesday, July 25, 2017 said it had set aside the sum of N1.6 billion for women empowerment programme called the National Women Empowerment Fund.

Aisha Jummai Alhassan
Minister of Women Affairs and Social Development, Senator Aisha Jummai Alhassan

Minister of Women Affairs and Social Development, Senator Aisha Jummai Alhassan, made this disclosure at a town hall meeting with women groups in Dutse, Jigawa State.

Alhassan said NAWEF is part of the FG’s Social Investment Intervention Programme known as the Government Enterprise and Empowerment Programme.

She explained that the programme was being implemented by the ministry in collaboration with the Bank of Industry (BoI), the administrating bank for the fund.

Alhassan said: “The GEEP is a micro-credit programme for men and women, boys and girls and out of the GEEP fund, a sum of N1.6 billion has been set aside exclusively for women.

“Both NAWEF and GEEP are financial inclusion and microcredit programmes.”

She said the aims of NAWEF and GEEP were to provide micro-credit facilities for men and women; reduce poverty among rural dwellers and provide skills development, training and business support, especially for women.

According to her, the aims are also to assist in rebuilding the economies of rural areas through financial inclusion.

Alhassan said the programmes were meant to build strong partnership between the federal and state ministries of women affairs, the BoI and development partners.

The partners, according to the minister are, the World Bank, African Development Bank, UN Women, UNIDO among others to provide a solid platform for implementing the programmes.

She added that the NAWEF and GEEP had 13 important features that every beneficiary needed to know.

Alhassan said: “NAWEF is exclusively for women, who engage in production enterprises while GEEP is for both men and women; artisans, farmers, market women or entrepreneurs, who engage in productive enterprise.”

According to her, each beneficiary can get between N10,000 and N100,000 as loan, which is payable within six months, with one month grace after disbursement, before repayment starts.

However, the minister said that each beneficiary should belong to a registered association, cooperative society or any other trade organisation, which had a minimum of 10 members and a maximum of 20 members.

Every group, she said, must have a group leader, but not compulsory for existing organisations with a large membership.

Alhassan said: “That is those who have more than 20 members and with national spread, for example, women organisations such as NCWS, FOMWAN.

“Application can be made in groups of 20 members from their different branches at State or Local Government levels.”

According to her, the loans will be paid directly into beneficiaries’ personal accounts, not the group account.

Alhassan stated that each applicant must have his or her personal account, which must have BVN that could be used for verification.

She said: “The loans will be disbursed and repayment will be collected through local banks and money agents in order to reach remote areas with no banking facilities.

“The loans are interest free and no collateral is required but there is an administrative charge of five per cent, which is to cover the bank’s expenses for administering the fund.

“The application forms are also free and accounts can be opened in any commercial or Micro-finance bank.

“These are some features one needs to know about the two programmes.”

According to her, the Federal Government’s aim is to reach those who have no income or working capital to undertake productive means of livelihood.

The minister, however, warned that the NAWEF or GEEP should not be seen as the distribution of free money or government largesse for buying wrappers and other luxury goods.

She said: “Therefore, to ensure the sustainability of this programme and to depart from the past failed ones, sanctions have been put in place to prevent abuse of the programme.

“These two initiatives will also help rebuild the Nigerian economy and complement other economic empowerment strategies of the Federal and State Governments, as well as those of development partners.

“I am hopeful that the NAWEF and GEEP programmes will be successful, so that they can be expanded in the near future.

“Already, identification forms are pouring into my ministry, demonstrating a huge demand for financial services to cater for the Nigerian women and men.

“I encourage all the states of the federation to participate actively in these programmes, as it will promote financial inclusion and livelihood opportunities for women, especially in the non-oil sectors to reduce poverty.”

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