Economy

News Flash: Finally, Senate passes PIB into law, 13 years after –concedes three percent revenue to host communities.

Eyewitness reporter

The Senate Thursday finally passed the controversial and highly contentious Petroleum Industry Bill(PIB) into law 13 years after it was first introduced in the National Assembly.

The bill, which has 318 clauses, grants three percent operating expenditure of oil companies to the host communities.

This was however against the five percent that was advocated by the oil-rich South-South communities.

After a third reading by the Chairman, the PIB was passed, Joint Committee Petroleum (upstream and downstream) and gas, Mallam Mohammed Sabo, presented a report and its 318 clauses were put to a voice vote and passed within 10 minutes.

He said the legislation is aimed at promoting transparency, good governance and accountability in the oil and gas industry.

Sabo also noted that the committee recommended that 30 percent of Nigeria National Petroleum Corporation (NNPC) profit from oil and gas should be used to fund the exploration of frontier basins.

“The various obsolete laws currently in operation in the country have been updated and consolidated in this chapter to meet global competitiveness and best practices.

“A total of 355 amendments were recommended to this chapter while others were retained,” Sabo said.

During the consideration of the bill in the committee of the whole and at the public hearing, representatives of the host communities demanded 10 percent allocation even though five percent was proposed.

The joint committee recommended three percent after a meeting of the Senators with the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director, NNPC, Dr. Mele Kyari, which three percent was accepted as what is due to host communities.

Meanwhile, the Senator representing Delta south, Mr. James Manager, in his remarks, said 5 percent was not too much for the host communities.

However, the bill, which has five parts, eight schedules and 318 clauses, was finally passed.

An elated Senate President, Ahmed Lawan, congratulated members of the National Assembly, adding that the ninth National Assembly has delivered on one of its core legislative mandates.

He said that the ninth National Assembly has finally broken the jinx and defeated the demon of PIB by passing it into law.

The PIB was first introduced into the National Assembly in 2008 as an Executive bill by then President, Umar Yar’Adua.

The Sixth National Assembly (2007 – 2011) failed to pass the bill.

The bill was reintroduced into the National Assembly in 2012 by President Goodluck Jonathan.

Economy

Court reverses self over contempt charge against Fidelity Bank chief

Managing Director of Fidelity Bank,Nneka Chinwe Onyeali-Ikpe

The Eyewitness reporter

A Chief Magistrate Court sitting in Ikeja, Lagos has vacated its ruling that convicted and sentenced the Managing Director of Fidelity Bank,Nneka Chinwe Onyeali-Ikpe and Company Secretary of Fidelity Bank, Mrs. Unuigboje Ezinwa to six weeks in prison or a fine of Four Hundred Thousand Naira respectively for contempt.

The Chief Magistrate, Mr. Lateef Owolabi vacated the order in a Suit No: MIK/4726/22 between Justin Ahmed, (judgement creditor), Prince Enabulele Osazee, (judgement debtor) and Fidelity Bank Plc, (1st Garnishee/Applicant).

The court, in an earlier ruling delivered on February 6, 2023, held that the Managing Director of Fidelity Bank, Nneka Chinwe Onyeali-Ikpe and the Company Secretary, Mrs. Unuigboje Ezinwa should be committed to six weeks’ imprisonment over alleged disobedience of a garnishee order of the court restraining the bank from allowing a judgement debtor access to his account.

However, at the resumed proceedings on the matter on Feb 15, 2023, the court vacated the committal order on the premise of facts presented before the court that the alleged acts of contempt were not deliberate but arose out of a communication gap between the said parties and the erstwhile counsel.

The court in its ruling also stated that the error or sin of the counsel should not be visited on a party or litigants. The court also noted that the monies that were the subject matter and fulcrum of the contempt proceedings have since been paid to the judgment creditor.

“From the materials presented before this court by the applicant, this application falls within the classic rule where the error or sin of the counsel should not be visited on a party or litigants. Moreover, the applicant has averred that the monies subject matter, the fulcrum of the contempt proceedings had since been paid to the judgment creditor.

”Having fully discharged this payment to the satisfaction of the judgment creditor, this court should not be seen to cry more than the bereaved”, Mr Lateef Owolabi held.

”The solicitor to the bank explained that Fidelity Bank, being a law-abiding institution that will never or under any circumstance, directly or indirectly denigrate the integrity of the nation’s judiciary, had upon receipt of the garnishee order nisi on December 22, 2022, conducted a search immediately, and the result showed several accounts bearing similar names to the Judgment Debtor’s (Prince Enabulele Osazee).”

”To prevent the bank from erroneously restricting the wrong account, the bank filed an affidavit requesting additional account details to enable it to ascertain the correct account(s) to restrict.”

He further stated that, on January 16, 2023, the bank received the Judgment Creditor’s affidavit showing the account number of the Judgment Debtor. Armed with the correct account number, the bank immediately identified and placed a lien on the Judgment Debtor’s account. Unfortunately, during the intervening period, the judgement debtor had carried on depositing and withdrawing from his account.

In vacating the order on February 15, 2023, the Chief Magistrate held that based on the materials before the court, the applicant has been able to tether the law to the facts to warrant the grant of the relief sought on their own strength and not based on lack of opposition.

Economy

Supreme court restrains FG from enforcing naira swap deadline

The Eyewitness reporter

There was a temporary relief for Nigerians over the scarcity of naira notes as the Supreme Court has issued an order of interim injunction restraining the Federal Government and the Central Bank of Nigeria (CBN) from enforcing the February 10 deadline for the phasing out of the old naira notes.

A five-member panel of the court, led by Justice John Okoro said that it was a matter of urgent national importance that the court intervenes and grant the order.

The ruling was on an ex-parte motion filed by the governments of Kaduna, Kogi and Zamfara states

The order, according to Justice Okoro, who read the lead ruling, is to subsist pending the hearing and determination of the motion on notice filed by the state for interlocutory injunctions.

The court adjourned till February 15 for the hearing of the motion on notice and the preliminary objection filed by the defendant – the Attorney General of the Federation (AGF), challenging the court’s jurisdiction over the case.

Economy

CBN succumbs to pressure, extends use of old naira notes to February 10

The Eyewitness reporter

The Central Bank of Nigeria (CBN) has finally caved in to Public outcry over the February 1st deadline for the use of old naira notes when on Sunday, the apex bank announced February 10 as the new date.

Announcing the new deadline in a statement, Governor Central Bank Of Nigeria(CBN), Godwin Emefiele, said the decision to add extra 10 days was “to allow for the collection of more old notes”

Up till Saturday, CBN had insisted on the 31st January deadline for the validity of the old N200, N500 and N1,000 despite overwhelming complaints that the notes are either not available or in short supply in the banks or their Automated Teller Machines.

Last October, Emefiele announced the Naira redesign policy which entails the issuance of new notes to replace the existing N200, N500 and N1,000 series.