Sanusi given two days to accept appointment as head of Kano chiefs’ – New Telegraph Newspaper

The National Economic Council (NEC) is considering the investment of N2 trillion Contributory Pension Funds in the development of infrastructure including roads, rail and power.

Nigerias Pension Funds has grown to N9.44 trillion, according to the pension monthly summary report for August released on October 15, 2019.

Governor of Kebbi State, Atiku Bagudu, while briefing State House Correspondents after the NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja said: Up to 20 per cent of the pension funds under the current law can be used for infrastructure.

NEC is expected to receive a final report from the sub-committee early next year.

NEC comprises the 36 state governors, Governor of the Central Bank of Nigeria (CBN), Minister of Finance, Secretary to the Government of the Federation (SGF) and some other government officials.

According to the Kebbi State governor, who was joined at the briefing by the Lagos State Governor Babajide Sanwo-Olu and the Minister of Finance, Budget and National Planning, Zainab Ahmed, the mechanism has been used successfully in other countries.

He said: So today, the sub-committee presented an interim report where they advised on some of the issues that came up while deliberating.

Of particular note was that other countries have been using the same mechanism South Africa, Saudi Arabia and others have been using their pension funds and sovereign wealth authorities investment process to create platform for development.

So, the committee is reported and identified potential road infrastructure, infrastructure in the power, rail sectors that can be funded through this mechanism.

They noted that this years budget, for example, has N169 billion for roads across the federation and is grossly inadequate. But with this mechanism, maybe up to N2 trillion can be accessed and leveraged upon.

At the NEC meeting, there was a review of the performance of the Nigerian Sovereign Investment Authority and we are all impressed about experience they had gained in the last few years and their performance.

And it was decided that a committee be set up on how we can leverage on that performance to create a platform where pension funds can be used for infrastructure development in a safe manner, so that there will earn long term returns for the pension funds while also helping to build Nigerias infrastructure, Bagudu noted.

NEC has set up a sub-committee to see how pension funds can be used for infrastructure development as provided for by the Pensions Reform Act.

Speaking further, Bagudu said NEC also received the interim report of the of the Nasir el-Rufai sub-committee to consider the ownership structure of Electricity Power Distribution Company.

The Council discussed that since the privatization of Electricity Power Distribution Company that at least 40 per cent that was meant to be for the states government and federal government have not been so distributed.

Therefore, a committee was set up to review the status/ownership of those shares that have not been distributed and report back to NEC, he explained.

He confirmed that council received a presentation by the Niger Delta Power Holding Company, titled evaluation options going forward.

You may recall that 10 years ago, the Niger Delta Power Holding Company was created and it is owned by federal, states and local governments. They had 10 completed generating plants and two others that are in the process of being completed generating about 4,500 megawatts.

The board of the Niger Delta Power Holding Company and shareholders, who are the governors and local government chairmen, reviewed the options going forward because in the design of this company, the assets were supposed to be privatised.

The options were discussed and members of the NEC advised to study the presentation so that at more opportune time, NEC can review the presentation and take whatever necessary steps henceforth, he added.

The Finance Minister informed NEC on the balance in the Excess Crude Account (ECA) which she said stood at $324.967 million as at 19th November, 2019.

Ahmed said the balance in the Stabilisation Account as at 17th of December, 2019 was N30.479billion while the Natural Resource Fund, still at the same date, is N88.283 billion.

Meanwhile, yesterdays NEC meeting reviewed the security situation in the country and concluded that security had improved generally across Nigeria.

Governor Sanwo-Olu said the NEC sub-committee on security presented the report on security situation to the session.

The committee is chaired by the Governor of Ekiti State, Dr. Kayode Fayemi.

According to Sanwo-Olu, the Fayemi committee, which has the Inspector-General of Police, Mr. Mohammed Adamu, and other heads of security agencies as members, reported that there was a reduction in proliferation of small arms as a result of the closure of the countrys land borders.

The committee also reported that states were advised to set up on zonal basis, security trust funds to help address security challenges.

Community policing is also important as a means of engaging our youths and reducing youth unemployment in the country, he said.

He added that the NEC also looked into the dispute between the Ministry of Mines and some states over access to mining sites and recommended that the ministry should do more advocacy.

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Sanusi given two days to accept appointment as head of Kano chiefs' - New Telegraph Newspaper