10 months ago

BusinessDay 30 Jan 2018


4 BUSINESS DAY C002D5556 Tuesday 30 January 2018 NEWS Health sector suffers as FG unable to implement 1% funding provision in Health Act LAIDE AKINBOADE-ORIERE Nigeria’s myriad health sector challenges are seen not likely to abate soon on poor budgetary allocations and government’s lack of political will to implement the one percent intervention fund provision in National Health Act (NHA, 2014), BusinessDay findings show. The Federal Government said it intends to drive health care delivery from the grass root where majority of the citizens dwell, on massive health infrastructure deployments at the rural areas to deal with primary health care challenges. Ibrahim Wada, Founder, Vice Chairman of Nisa-Garki Group and Chief Consultant Gynaecologist of NISA Hospital, Abuja, observes that for Nigeria to address its huge challenge in the health sector there is need for more public private partnerships, like obtainable in other developed nations. Government’s inability to implement its own laws that mandate it to allocate 1 percent, of its Consolidated Revenue Fund (CRF), to drive health sector is seen as a major setback, as well as demonstration of government’s lack of seriousness to fund health care NNPC contradicts Osinbajo says Nigeria owes... Continued from page 1 arrangement which was originally based on 35 million per day petrol consumption pattern. Baru lamented that with the current unprecedented average daily fuel evacuation of 55 million litres since 1st December 2017 to date, it was imperative for the security agencies to closein on the smuggling syndicates who were cashing in on the obvious petrol price differentials between Nigeria and neighbouring countries to make illicit profit. “That explanation is not satisfactory,” says Adeola Adenikinju, gas policy analyst for the World Bank and professor of Economics at University of Ibadan., “they cannot say that is Nigeria’s consumption. The NNPC has to identify programs. “He who doesn’t plan, plan to fail’ that is why there are so many issues in our health sector, manpower, Power issues, maintenance issues, funding issues, you name L-R: Bola Adeeko, head, shared services division, The Nigerian Stock Exchange (NSE); Darcy Zotter, public affairs officer, United State Consulate General Lagos; Oscar Onyema, chief executive officer, NSE; John Bray, US Consul General in Lagos; Osman ‘’OZ” TAT, political/economic section chief, US Consulate General Lagos, and Pai Gamde, group head, human resources, NSE, during a Closing Gong Ceremony at the Exchange in Lagos, yesterday. Nigeria’s consumption from what is being smuggled and must show what accounted for that consumption within these months. Are we importing more cars? Is there a massive boom in economic activity? Are we buying more generators? They must show the nation’s consumption pattern, produce a consumption study and show why they are supplying more than the nation consumes.” Chuks Nwani, an energy lawyer says this “is creating a room for corruption” because the subsidy is not budgeted for and the imports cannot be audited. The current situation mirrors the 2011 subsidy regime fraud where importers were being paid for 59 million litres a day while the country’s consumption was put at 35 million. Nigeria spent N2.587 it,” Wada told BusinessDay in an exclusive interview. Section 11 (1) of the health Act created an intervention fund, to be known as Basic Health Care Provision Fund, to be financed trillion on fuel subsidy in 2011, which is 900 percent more than the N245 billion budgeted for it. In 2011, the NNPC owed the Federal government N704 billion for various violations of the subsidy scheme. The subsidy regime was so abused that in one case, the accountant-general’s office made 128 subsidy payment transactions of N999 million each in the space of 24 hours between January 12-13 2009 - equal to about N42million almost every 10 minutes. Subsidy became a toxic word in Nigeria and contributed to the ouster of ex-President Goodluck Jonathan’s government. The administration of President Muhammadu Buhari came into power promising to eradicate subsidy and the fraud associated with it, but has continued to bear the cost of subsidy because it lacked the moral courage to from, Federal Government Annual Grant of not less than one per cent of its Consolidated Revenue Fund, grants by international donor part- Continues on page 34 allow market forces determine prices of refined petrol. Since January 2017 when the price of crude oil shot above $45 per barrel, the NNPC has been recording massive underrecovery in its monthly financial and operations report. Underrecovery is euphemism for when the open market price of PMS is below the approved official retail price at the pump. The expected open price is a combination of the cost of importation and distribution of the commodity, such as marketers’ margins, landing cost and freight cost. In the last week of December alone, the NNPC incurred about N9.4billion in subsidy. Osinabjo told journalists on December 25 that NNPC was bearing the cost of N26 per litre on a landing cost of N171 per litre, but this claim by NNPC that the Federal Government owes it FG raises N196.3m from saving Bond in January – DMO MICHEAL ANI The Debt Management Office said it raised N196.3 million through the first auction of the Federal Government Savings Bond issued in the second week of January according to a report released on its website. The DMO had sold the two year bond at 12.098 per cent as against 11.738 percent which it auctioned the two year bond in December last year. Likewise the coupon on the three year bond was higher at 13.098 percent from 12.738 percent in December 2017 The auction results released showed a decline in the level of subscription despite the higher rates when compared to the December 2017 auction The results of the sales published on the DMO website , showed that N73.05 million was allotted at 12.09 per cent with 121 successful subscriptions to mature in Jan. 2020. It stated that N123.25 million was allotted at 13.09 percent with 178 successful subscriptions to mature in Jan. 2021. The savings bond issuance Continues on page 34 N170billion subsidy arrears puts matters in the proper context. Isiaka AbdulRazaq, chief financial officer of the corporation traced the advent of the subsidy regime to October, 2003 when NNPC was directed by government to commence the purchase of domestic crude oil at international market price without a corresponding liberalization of the regulated price of petroleum products. He explained that under the subsidy regime, NNPC and other suppliers of refined petroleum products were entitled to file subsidy claims to the Petroleum Products Pricing Regulatory Agency (PPPRA). He noted that NNPC did not receive cash payment for subsidy claims as its subsidy claims were deducted out of cost payment to the Federation Account after due certification by PPPRA.

Tuesday 30 January 2018 C002D5556 BUSINESS DAY 5

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