THE GUARDIAN, Tuesday, December20,20ll
Appointments P27 Tackling the monster, whether imposed or caused
CBN disburses Nl36.8bn for agric projects, says report By Rosaline Okem
•THE Federal Government has 1 released Np(i.S billion to the nation's agricultural sub-sector under the Commercial Agriculture Credit Scheme, as at the end of September. Besides, the country's nonexport earnings in t-fie third quarter of the year, fell by 36 per cent, below the 373 per cent level achieved in diecorrespondingquarterof2010. The Central Dank cf Nigeria
A sub-sectoral analysis of the loans guaranteed indicated that the food crops sub-secto'r received the largest share of N2.7 billion for 17,798 beneficiaries, while the livestock sub-sector got N528.7 million for 683 beneficiaries. (CBN) said in its third quarter report that the fund was released to the participating banks for disbursements in respect of ra projects. According to CBN, the beneficiaries included 26 state gov-
ernments, adding that agricultural activities during thequarter under review were dominated by harvesting of various root crops, especially yam; Irish and sweet potatoes; maize; and groundnuts.
The report added that a total of N3.6 billion wasafso guaranteed to 20,830 farmers under the Agricultural Credit Guarantee Scheme in the third quarter of 2011. This, the CBN rioted, represented an increase of 1905 per cent from the 6.6 per cent it recorded in the preceding quarter. It explained: "A sub-sectoral analysis of the loans guaranteed indicated that the food crops sub-sector received the
largest share of N2.7 billion for 17,793 beneficiaries, while the livestock sub-sector got NS28.7 million for 683 beneficiaries. The sum of N1S7.4 million was guaranteed to 683 beneficiaries in the mixed crop sub-sector. "Also, 333 beneficiaries in the fisheries sub-sector obtained N9S.1 million while N403 million was disbursed to 433 beneficiaries in the cash crop subCONTINUED ON PAGE 20
Oyo Stale Governor, Abiola Ajimobi {middle); Managing Director, Bank of Industry (BOI), Evelyn Qputit (right); and Director-General. United Nations Industry Development Organisation, Dr. Kandeh Vurnkella. dunriE the signing of Memorandum of Understanding between Oyo State and BOI, for a Nl billion development fund for small businesses, in Lagos, at the weekend.
Appeal Court
upholds wonder bank's appeal By Joseph Onyshwere •THE Court of Appeal, Lagos iDivision, yesterday, upheld the appeal filed by Nospetco Oil and Gas Limited {Wonder Bank), challenging tne jurisdiction of the Investment and Securities Tribunal (1ST) to adjudicate on the matter brought against it by its investors forum, over frozen investment funds. 1ST had in April 13.201], delivered a judgment dismissing the company's objection challenging die jurisdiction of 1ST to hear the suit filed by 14 representatives of Nospetco Investors' forum against the company, Security and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) over the seized funds. The appellate court presided over by Justice Helen Ogunwumiju, in its lead judgment, resolved four issues listed for determination by the appellant in favour of the investors but resolved the issue of jurisdiction in favour of the appellant. The four issues resolved in favourof the investors are that the contract between the investors and the wonder bank was .1 collective investment scheme; that the investors can bring such suits in a representative capacity: that the principle of fair hearing was not violated by the 1ST in deciding against the appellant, in addition to the fact that the filing of the suit was not an abuse of court process. Ogunwumiju held that section 251 of the 1999 constitution is superior in relation to die provisions of section 284 of the Investment and Securities Act (ISA), adding that the power to adjudicate on issues involving federal institutions suchastheCBN and SEC is vested on the Federal High Courts, irrespective of other Tribunals created by the Act of the NationalAssembly. "The circumstances of this case calls for the interpretaCONTINUEDQNPAGE2Q
How to resolve fuel subsidy crisis, by Ellah, VC, others From Kel™ Ebiri, Port Har court
A COCKTAIL of stic^i-in-rime /^measures has been prescribed for the resolution of fuel subsidy crisis, currently assessed to be assailing the economy. At a forum organised by the Emerald Institute of Energy Economics, Polity and Strategic Studies of University of Port Harcourt, Rivers State, experts concurred that the current freefor-all importation regime must give way to tn era of enhanced loc.il production, among others.
Former Group General Manager, Upstream investment Division of the Nigeria National Petroleum Corporation (NNPC), Dr. Joseph Okey Ellah, said the Federal Government should, in national interest, evolve a national petroleum policy aimed at refining locally all the crude produced. Eilah specifically blamed the refusal of former President Qlusegun Obasanfo's regime to adopt the offshore processing scheme in preference for free-for-all importation of petroleum products for cur-
rent fuel subsidy crisis. He said NNPC had concluded arrangement to recommence offshore processing scheme, which allows crude oil to .be taken from Nigeria, refined outside and products returned to the country after payment of processing fee, but Obasanjo's government declined anddecided to issue licences for importation of products. He explained that if the offshore processing scheme had been adopted, this would have eliminated middlemen, demurrage, foreign exchange expendi-
ture, generate more foreign exchange and subsidy if any would oe totally insignificanL Ellah, who also a member of the Board of Treasure Energy Resources, called for the immediate scrapping of the Petroleum Products Pricing Regulatory Agency (PPPRA), which is now involved with contract awards to marketers leading to major distortions in the products market. The former NNPC chieftain stressed that government should terminate a!! product importation contracts with marketers after this quarter,
and that in the short term, allocate to NNFC, all the crude required to produce the domestic products. He recommended that government should compefby legislation all crude oil producing companies to refine a percentage of [heir crude in Nigeria with guaranteed margin under a memorandum of understanding should they sell locally. Ellah said a state of emergency should be declared on refinery construction, especially small scale ones in addition to large-scale refineries through public private part-
nership arrangement. He stressed that if the above recommendations are implemented, it would send the current subsidy debate to sleep indefinitely and the country would witness a great future as crude producing country and a product expo rti ng cou n try. The Vice-Chancellor of the University, Professor Joseph Ajienka, called for the building of more refineries in Nigeria to reduce the country's dependency on fuel importation. Besides, he CONTINUED ON PAGE 20