Nigeria: Senators Overrule Mark

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Vanguard (Lagos)

9 July 2008
Posted to the web 9 July 2008

Emmanuel Aziken and Inalegwu Shaibu
Lagos

SENATOR David Mark suffered the first reversal of his ruling as Senate President yesterday when the majority of Senators over-ruled his decision on a bill to establish a shelter fund for future generations of Nigerians.

The drama-soaked exercise that culminated the Senators' decision brought the Senate session to a quick end and led to the postponement of other issues on the order paper.

The bill entitled "An Act to Establish the Nigeria Investment Fund for Future Generations" aims to establish the Nigeria Investment Fund.

The fund, according to the provisions of the bill, will draw its income from 20 percent of Federal Government surplus revenue, 50 per cent of privatisation proceeds, penalties from gas flaring among other sources.

Debate on the bill sponsored by Senator Bassey Ewa-Henshaw (PDP, Cross River South) and seven other Senators, however, quickly dovetailed into high level political plotting within the Senate chambers once Senator Ewa-Henshaw finished with his lead debate.

Senator Iyabo Obasanjo-Bello (PDP, Ogun Central) inspired opposition to the bill from some South-West Senators collaborating with some other Senators from the North who had their inspiration among some former governors in the Senate.

Senator Obasanjo-Bello's bill on a similar proposal seeking the establishment of a shelter fund deriving its income from the excess crude account was withdrawn penultimate week upon misgivings by several Senators. Ewa-Henshaw was, however, quick to distance his bill from Obasanjo-Bello's as he said yesterday that his proposal was for the funds for the bill to be derived from excesses accruing to the consolidated revenue fund of the Federal Government.

"The fund is to receive contributions from the Consolidated Revenue Fund of the Federal Government under Section 80 of the Constitution and not from the Federation Account covered under Section 162," Senator Ewa-Henshaw said yesterday as he flagged off debate on the bill.

He further submitted that the fund was needed as a bulwark against the expected exhaustion of crude oil deposits.

"The Bill has been conceptualised as a vehicle for us as a nation to save some of the surplus earnings accruing to us from the sale of our oil.

"The fund also provides a strict and structured medium to help us inculcate the disciplined of saving for the rainy day.

This is one of the most important justifications for the bill. It is an economic fact which applies to nations just as much as it applies to individuals or corporate bodies that there comes a time when inflows of resources are inadequate to meet outflows. At such times, the savings come in handy to avert crisis," he argued.

Support for the bill came from Senators Ike Ekweremadu (PDP, Enugu West), Victor Ndoma-Egba (PDP, Cross River Central), Enyinnaya Abaribe (PDP, Abia South) among others.

Strong opposition to the bill came from Senators Obasanjo-Bello, Kanti Bello (PDP, Katsina North), Ahmed Makarfi (PDP, Kaduna North), Ayogu Eze (PDP, Enugu North) among others.

Opposing the bill, Senator Obasanjo-Bello said there was no difference between Ewa-Henshaw's proposal and her own bill, adding that the sponsor was not detailed on the sourcing of the income of the fund.

Opposing the bill, Senator Makarfi said there was no constitutional provision for such fund. He said creating an investment fund besides the Consolidated Revenue account of the federation would amount to duplication of accounts.

He said: "There is nothing like excess revenue in the first place. Then all revenues that accrue to government is shared between the three tiers of government on an approved formula. We should look at how to amend the constitution to give a legal backing for the creation of the Fund," he said.

Following the debate, Senator Mark called for a voice vote for the second reading of the bill and twice he ruled in favour of the nays.

However, Senator Ewa-Henshaw upon Rule 73 (1)(2)(3) of the Senate standing rules demanded a head count.

As the Senate Clerk commenced the head count, Senators Ewa-Henshaw and those against the bill, notably Senator Smart Adeyemi, traversed the Senate chambers soliciting support for their positions.

At the end of the vote, the ayes had 34 votes, the nays 18 and three abstained while there were 53 abstentions.

Upon the vote, the Senate President called on the Clerk, Mr. Ben Efeturire, to read the bill for the second time. The bill was passed on to the Senate Committee on Finance for further action.

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