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UK Court Orders P&ID To Pay £1.5m To Nigeria

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A United Kingdom court on Thursday ordered the British Virgin Islands firm, Process and Industrial Development, to pay £1.5m to Nigeria within 21 days.

According a statement by Dr. Umar Gwandu, the spokesperson for the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, the UK court ordered P&ID to pay the money to Nigeria to cover the legal costs incurred by the Federal Government in successfully obtaining the court’s permission for an extension of time to challenge the $10bn arbitral award the company obtained against Nigeria.

The statement read, “The Federal Republic of Nigeria today (Thursday) appeared in the English High Court for a scheduled hearing.

“The hearing followed the major victory secured by Federal Republic of Nigeria last Friday (September 4), allowing it to bring a fraud challenge against a $10bn arbitration award obtained by vulture-fund-backed P&ID well outside the normal time limits.

“FRN will now proceed to a full fraud trial. The hearing today was held to decide procedural and costs issues relating to the FRN’s applications to challenge the arbitration award, and to determine the short term directions to trial.

“Cranston J ordered P&ID to make an interim payment of more than £1.5 million within 21 days to cover legal costs the FRN incurred as part of their successful application for the extension of time to challenge the arbitration award and procedural hearing earlier in the year.

“A case management conference to determine the full trial window is scheduled to take place after November 2020.”

The statement also stated that the Thursday’s order by the British court “is another crucial win for Nigeria in our ongoing fight against the vulture-fund-backed P&ID.”

It added, “We are pleased that the English courts have taken our fraud challenge seriously, and awarded us a substantial interim payment in respect of our successful application for an extension of time to challenge the award.”

Justice Ross Cranston had in a landmark judgment, on September 4, granted the Federal Government permission to challenge the final arbitral award delivered by a London arbitration tribunal in favour of P&ID and against Nigeria in January 2017.

The judge in the judgement agreed that there was prima facie case of fraud in the agreements leading to the award which should be inquired into.

The award which stood at $9.6bn as of 2019 has risen to $10bn.

The tribunal had held Nigeria liable for the alleged breach of a Gas Supply Processing Agreement it entered into with P&ID in 2010.

But the Nigerian government had approached the UK court requesting an extension of time within which to challenge the final arbitral award on the basis that the GSPA and the award were tainted by fraud.

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Minister Affirms Nigeria Air Will Take Off April 2022

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Nigeria’s national carrier, Nigeria Air, will take off by April 2022, Hadi Sirika, minister of aviation, said on Wednesday.

The minister announced the take-off date while briefing state house correspondents after the federal executive council (FEC) meeting at the presidential villa, Abuja.

He said the national carrier will be run by a company in which the Nigerian government will hold a five percent stake while Nigerian entrepreneurs will hold 46 percent.

He said the remaining 49 percent will be reserved for yet to be assigned strategic equity partners, including foreign investors.

Sirika said the national carrier, when operational, will create about 70,000 jobs for Nigerians.

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Nigeria Needs $1.5trn To Bridge Infrastructure Gap, Says Buhari

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President Muhammadu Buhari says Nigeria needs $1.5 trillion within a 10-year period to achieve an appreciable level of infrastructural development.

According to a statement by Garba Shehu, presidential spokesperson, Buhari said this on Tuesday at the COP26 side event on improving global infrastructure.

COP26 is currently holding in Glasgow, Scotland.

The president said his administration has taken infrastructure expansion in Nigeria seriously, while being conscious of the fact that new investments in critical sectors of the economy would aid lifting 100 million Nigerians out of poverty by 2030.

“There is a nexus between infrastructural development and the overall economic development of a nation,” Buhari said.

“My administration identified this early enough as a major enabler of sustainable economic development and the realisation of other continental and global development aspirations, particularly the 2030 Agenda for Sustainable Development Goals.

“On my assumption of office in 2015, Nigeria faced a huge infrastructure deficit and the total National Infrastructure Stock was estimated at 35% of our Gross Domestic Product.

“In solving these problems, we embarked on a massive infrastructure expansion programme in the areas of Health care, Education, Transportation, Manufacturing, Energy, Housing, Agriculture, and Water Resources.

“We provided more financial resources for these policies, charted new international partnerships and pursued liberalisation policies to allow private sector participation.

“We introduced the revised National Integrated Infrastructure Master Plan – a policy document that ensures our infrastructure expansion projects is cross-sectorally integrated and environmentally friendly.”

The president welcomed the plan of the G7 countries to mobilise hundreds of billions of dollars of infrastructure investment for low- and middle-income countries.

He noted that the ‘Build Back Better World’ plan, an initiative of the G7 countries, is expected to be a value-driven, high-standard, and transparent infrastructure partnership.

Buhari also told the world leaders that Nigeria is open to investment in infrastructural development.

‘‘Nigeria is ready for your investments in infrastructural development in the country,” he said.

‘‘My administration has established a clear legal and regulatory framework for private financing of infrastructure to establish a standard process, especially on the monitoring and evaluation process.

‘‘We look forward to working with you in this regard.”

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PenCom Moves To Diversify Pension Funds Portfolios, Reduce FG’s Pension Liabilities

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By Sola Alabadan

The National Pension Commission (PenCom) has promised to focus efforts on facilitating increased diversification of Pension Fund portfolios, as well as aggressively pursue efforts aimed at reducing pension liabilities of the Federal Government.
PenCom’s Director General, Mrs. Aisha Dahir Umar, stated this in her report contained in the 2020 annual report of the commission made available today.
She also assured that the commission would seek to expand coverage of the Contributory Pension Scheme in States, Local Governments and the informal sector; while also enhancing public awareness campaign efforts, and striving to improve service delivery in the industry.
Going forward, the PenCom boss pointed out that the commission would re-evaluate the milestones of the past years and consolidate its efforts to build a future-ready and resilient work environment underpinned by various initiatives.
She emphasised that PenCom’s focus shall be on a five-prong strategic approach that steadily pursues and addresses identified gaps while creating a more agile organisation with a culture that supports innovation and continuous improvement.
Meanwhile, the annual report indicated that the Pension Fund Administrators (PFAs) generated total earnings of N109.68billion in 2020, representing an increase of 3% when compared with the N106.70billion recorded in 2019.
The combined operating expenses incurred by the PFAs amounted to N55.20billion, while profits before taxes amounted to N54.48billion.
The major source of income for the PFAs was fund management fees, which accounted for over 80% of total Income.
The PFAs recorded a combined Return on Assets of 30.07% and a combined Return on Equity of 35.19%. This indicated that the PFAs sustained their profitability in the year under review.
The six CPFAs generated a total revenue (income and transfers from Sponsors) of N2.68billion, which was a 7.58% decrease compared to the N2.90bllion generated in 2019.
The major source of revenue for the CPFAs were inflows from their sponsor companies, which constituted 55% of their total revenue, while management fees and investment income accounted for 41% and 4%, respectively.
The CPFAs incurred a total expenditure of N2.74billion and a combined profit of N52.38million in 2020. Operating expenses comprised mainly of staff costs, which accounted for over 69% of operating expenses.
The PFCs generated a combined income of N24.09billion, representing a 2.75% decrease when compared with the N24.77billion generated in 2019.
The major source of income for the PFCs was custodial fees, which constituted 80% of their total income, while investment income and other income accounted for about 20% of PFCs total income.
The PFCs incurred total operating expenses of N7.73billion and a combined profit of N16.36billion in 2020. This indicated a 12.61% decline in the PFCs’ profitability when compared to the N18.72 billion recorded in 2019.

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