Wed 07 Aug 2013

Page 1

TheGuardian Conscience, Nurtured by Truth

Wednesday, August 7, 2013

Vol. 30, No. 12,641

N150

www.ngrguardiannews.com

ICC may tag B’Haram’s activities as crimes against humanity From Laolu Akande, New York (with agency report) LOBAL pressure may soon come on Boko Haram as the United Nations (UN)backed International Criminal Court (ICC) moves to tag the terror group’s activities as crimes against humanity. The court has now determined that there “is a reason-

G

• Says no war crimes in Niger Delta • Govt moves to extradite Al-Qaeda suspect to U.S. able basis to believe that crimes against humanity have been committed in Nigeria, namely acts of murder and persecution attributed to Boko Haram.”

The position of the ICC was contained in its prosecutor’s statement released on Monday evening at The Hague. Besides, the Federal Government has begun moves to ex-

tradite to the United States (U.S.) a man accused of being a member of the Al-Qaeda affiliate in Yemen and assigned to find English-speaking recruits.

The ICC said that the preliminary examination of the situation in Nigeria “should advance to phase three (admissibility) with a view to assessing whether the national authorities are conducting genuine proceedings in relation to those who appear to bear the greatest responsibility for such crimes, and the

gravity of such crimes.” Reacting, the Christian Association of Nigerian-Americans (CANAN) welcomed the outcome of the ICC preliminary reports. A statement from CANAN Secretariat yesterday in New York said: “CANAN is glad that there is a legitimate internaCONTINUED ON PAGE 2

All Progressives Congress (APC) Interim National Women Leader, Sharon Ikeazon (left); Interim Deputy National Publicity Secretary, Isa Madu Chul; Interim Deputy National Chairman, Anie Okwonkwo; Interim National Publicity Secretary, Lai Mohammed; Interim National Chairman, Chief Bisi Akande; Interim National Secretary, Tijani Tumsa; and Interim Deputy Chairman, North, Aminu Masari, during the inauguration meeting of the APC Interim National Executive Committee in Abuja… yesterday. PHOTO: PHILIP OJISUA

Shock as Amazon’s owner buys The Washington Post From Martins Oloja, Orlando Florida N an announcement that Itheshocked the media world in United States (U.S.) and indeed the nation’s capital on Monday, the influential The Washington Post said that it had been sold for $250 million to Amazon founder Jeff Bezos. It is the most influential and authoritative newspaper in Washington DC. Amazon is the world’s biggest online bookstore that has grown phenomenally. Publisher Katharine Weymouth made the announce-

• ‘How Watergate scandal story made newspaper a brand’ ment at a hastily called meeting of the paper’s staff members on Monday. She will stay on as publisher, and editor Martin Baron will in the same vein retain his job. The purchase is a personal

one for Bezos, who is worth $25.2 billion. Amazon is not involved. The Washington Post Company’s other media property, such as Slate and The Root, are not being sold. Bezos also bought The Post

Company’s other newspaper titles, including The Express, The Gazette, Southern Maryland, Fairfax County Times, El Tiempo Latino and Greater Washington Publishing. Post Company Chief Execu-

• Atako takes over from Oboh at NDDC - Page 4 • ASUU, govt talks inconclusive - Page 6

tive Officer (CEO) Donald Graham, whose family has owned The Postfor generations, noted in a statement that the economics of the print industry had led to the decision. The company’s newspaper division has been facing tremendous struggles in recent years. In the first half of 2013, it lost $49.3 million. Even so, The Post is not just another newspaper, and the Grahams are not ordinary

owners. Along with the Sulzberger family of The New York Times, they were some of the last remaining links to a time when most papers were run by families, not huge corporations, and their defence of The Post during the Watergate years is still seen as a high-water mark of American journalism. Their decision to sell is undoubtedly historic the “end of an era” if ever there was one. “I, along with Katharine Weymouth and our board of diCONTINUED ON PAGE 2


2

THE GUARDIAN, Wednesday, August 7, 2013

NEWS

‘How Watergate scandal story made newspaper a brand’ CONTINUED FROM PAGE 1 rectors, decided to sell only after years of familiar newspaper-industry challenges made us wonder if there might be another owner who would be better for The Post,” Graham said. In a letter to members of staff, he elaborated on the move, saying that it was born out of his family’s long-standing desire to protect the paper: “The point of our ownership has always been that it was supposed to be good for The Post. As the newspaper business continued to bring up questions to which we have no an-

swers, Katharine and I began to ask ourselves if our small public company was still the best home for the newspaper. Our revenues had declined seven years in a row. We had innovated and to my critical eye, our innovations had been quite successful in audience and in quality, but they hadn’t made up for the revenue decline. Our answer had to be cost cuts and we knew there was a limit to that. We were certain the paper would survive under our ownership, but we wanted it to do more than that. We wanted it to succeed. “This is a day that my family and I never expected to come,” Weymouth said in a letter to the employees. “The Washington Post Company is selling the newspaper it has owned and nurtured for eight decades.”

Weymouth told The Post’s Paul Farhi she and Graham had decided to sell the paper late last year: “We talked about whether [The Washington Post Co.] was the right place to house The Post,” she said. “If journalism is the mission, given the pressures to cut costs and make profits, maybe [a publicly traded company] is not the best place for The Post.” Farhi said that Donald Graham had hired the investment firm Allen & Co. to help with the transaction. “Allen’s representatives spoke with a half-dozen potential suitors before The Post Co.’s board settled on Bezos, 49, a legendary tech innovator who has never operated a newspaper,” he wrote. Bezos assured Farhi that “the values of The Post do not need changing,” though he promised ‘experimentation’ in the future. He did not say whether he would be making any future job cuts, or whether he would tamper with the paper’s impending paywall, though Farhi said no layoffs were being planned. In a note to The Post’s employees, Bezos unveiled potential coverage areas: “Our touchstone will be readers, understanding what they care about – government, local leaders, restaurant openings, scout troops, businesses, charities, governors, sports – and working backwards from there. I’m excited and optimistic about the opportunity for invention.” Bezos’s purchase continues a trend of newspapers falling into the hands of a single wealthy owner. The news of The Post’s sale came just days after Boston Red Sox’s owner John Henry bought The Boston Globe from the New York Times Company. The sale also raises questions about how The Post will cover Amazon, a highly important and often-controversial com-

pany. The Washington Post became very influential in 1973 when it asserted itself in a robust journalist legwork that toppled President Richard Nixon, implicated in a Watergate scandal uncovered by two metro and police reporters, Carl Bernstein and Bob Woodward. The “Pentagon Papers” published by the newspaper despite threats from government raised the profile of the journal that was sold to a business mogul on Monday. The Watergate story that began the rebranding of The Washington Post. “Five Held in Plot to Bug Democrats’ Office Here,” said the headline at the bottom of page one in The Washington Post on Sunday, June 18, 1972. The story reported that a team of burglars had been arrested inside the offices of the Democratic National Committee in the Watergate office complex in Washington. So began the chain of events that would later convulse Washington for two years, lead to the first resignation of a U.S. president and change American politics. As Woodward’s notes show, he learned from police sources that the men came from Miami, wore surgical gloves and carried thousands of dollars in cash. It was, said one source, “a professional type operation.” Woodward and Bernstein were in their 20s when they began investigating the Watergate cover-up. The next day, Woodward and Bernstein joined up for the first of many revelatory stories. “GOP Security Aide Among Those Arrested,” reported that burglar James McCord was on the payroll of President Nixon’s re-election committee. The next day, Nixon and chief of staff H.R. Haldeman privately discussed how to get the Central

Intelligence Agency (CIA) to tell the Federal Bureau of Investigation (FBI) to back off from the burglary investigation. Publicly, a White House spokesman said he would not comment on “a third rate burglary.” Within a few weeks, Woodward and Bernstein reported that the grand jury investigating the burglary had sought testimony from two men who had worked in the Nixon White House, former CIA officer E. Howard Hunt and former FBI agent G. Gordon Liddy. Both men would ultimately be indicted for guiding the burglars, via walkie-talkies, from a hotel room opposite the Watergate building. In Miami, Bernstein learned that a $25,000 cheque for Nixon’s reelection campaign had been deposited in the bank account of one of the burglars. The resulting story, “Bug Suspect Got Campaign Funds” reported the cheque had been given to Maurice Stans, the former Secretary of Commerce who served as Nixon’s chief fundraiser. It was the first time The Post linked the burglary to Nixon campaign funds. From the Hollywood adaptation of Woodward’s and Bernstein’s “All the President’s Men,’’ The Post editor Benjamin Bradlee (played by Jason Robards) expresses frustration at his reporters’ sourcing. As the two reporters pursued the story, Woodward relied on Mark Felt, a high-ranking official at the FBI, as a confidential source. With access to FBI reports on the burglary investigation, Felt could confirm or deny what other sources were telling The Post’s reporters. He also could tell them what leads to pursue. Woodward agreed to keep his identity secret, referring to him in conversations with colleagues

only as “Deep Throat.” His identity would not become public until 2005, 33 years later. While Nixon cruised toward reelection in the fall of 1972, Woodward and Bernstein scored a string of scoops, reporting that: • Attorney-General John Mitchell controlled a secret fund that paid for a campaign to gather information on the Democrats. • Nixon’s aides had run “a massive campaign of political spying and sabotage” on behalf of Nixon’s reelection effort. But while other newspapers ignored the story and voters gave Nixon a huge majority in November 1972, the White House continued to denounce The Post’s coverage as biased and misleading. The Post’s publisher Katharine Graham worried about the administration’s “unveiled threats and harassment.” As Hunt asked the White House to provide money for himself and his co-defendants, John Sirica, the toughtalking judge presiding over the trial of the burglars, took on the role of investigator, trying to force the defendants to disclose what they knew. Hunt and the other burglars pleaded guilty, while McCord and Liddy went on trial and were convicted. As Hunt’s demands for “hush money” persisted, John Dean, a White House lawyer, privately told Nixon that there was “a cancer on the presidency.” When the FBI finally pierced the White House denials, senior officials faced prosecution for perjury and obstruction of justice. In April 1973, four of Nixon’s top aides lost their jobs, including chief of staff Haldeman, chief domestic policy adviser, John Ehrlichman, Attorney General Richard Kleindienst and Dean himself.

Govt moves to extradite Al-Qaeda suspect to U.S. CONTINUED FROM PAGE 1 tional legal entity which will ensure that justice is done in this matter. We are encouraged that at a time when a federal minister of the Nigerian government has been making unsubstantiated claims about Boko Haram’s ceasefire aimed at forcing an amnesty deal for perpetrators of grave crimes against humanity, the ICC has risen to the occasion in the interest of justice.” CANAN noted that it would continue to advocate against terrorism in Nigeria, in collaboration with the ICC and other global agencies. According to the ICC Office of the prosecutor, there is now “a reasonable basis to believe that, since July 2009, Boko Haram has committed the following acts constituting crimes against humanity based on the UN treaty setting up the court: “ * murder under Article 7(1) (a); and “ * persecution under Article 7 (1) (h) of the Statute.” The statement added that “in particular, the information available provides a reasonable basis to believe that, since July 2009, Boko Haram has launched a widespread and systematic attack that has resulted in the killing of more than 1,200 Christian and Mus-

lims civilians in different locations throughout Nigeria.” Describing the terror group, the ICC prosecutor said: “The Boko Haram of today is a Salafijihadi Muslim group that operates mainly in north-eastern Nigeria but has also launched attacks in other parts of the country, including Abuja, Kaduna and Plateau states.” According to the office, Boko Haram is a potential global threat, a determination, the U.S. Congress has also made. The prosecutor’s statement noted: “In the past two years, Boko Haram has shown signs of transitioning into a globalised Salafi-jihadi group and has attracted international attention in particular by launching suicide attacks. The group has allegedly attacked religious clerics, Christians, political leaders, Muslims opposing the group, members of the police and security forces, ‘westerners’, journalists, as well as UN personnel. The group has also been accused of committing several largescale bombing attacks against civilian objects, including deliberate attacks against Christian churches and primary schools.” But while proceeding to investigate Boko Haram for crimes against humanity, the

ICC prosecutor also disclosed that “based on the information available at this stage, there also does not appear to be a reasonable basis to believe that the alleged crimes committed in the Delta Region could constitute war crimes.” According to the statement, “in particular, the violence in the Niger Delta, including the armed confrontations between MEND militants and the Nigerian Joint Task Force in 2009, do not appear to have involved protracted armed violence between governmental authorities and organised armed groups or between such groups, as stipulated in article 8(2)(f).” The Agence France Presse (AFP) quoted court documents as saying that the suspect identified as Lawal Olaniyi Babafemi, a.k.a. “Abdullah” or “Ayatollah Mustapha”, is alleged to be a member of Al-Qaeda in the Arabian Peninsula (AQAP) and has been indicted on four charges in the U.S., including supporting a foreign terrorist group. The 33-year-old is a citizen of Nigeria, where he is currently in custody, the court documents say. A hearing has been set in Federal High Court in Abuja for August 28. According to the documents, Babafemi travelled to Yemen between January 2010 and Au-

gust 2011 to train with the AlQaeda group as well as to seek out senior members, Anwar al-Awlaqi and Samir Khan. Yemeni-born American radical cleric al-Awlaqi as well as Khan had since been killed in a drone strike. In interviews with the Federal Bureau of Investigation (FBI) agents, “Babafemi admitted travelling to Yemen,” the court documents say. They add that he said “AQAP members gave him ... approximately $8,600 in order to return to Nigeria and recruit English-speaking individuals to work in AQAP’s English-language media operation.” The four charges against him in the U.S. include conspiracy to provide material support to a foreign terrorist organisation and unlawful use of firearms. The documents say he received fire-arms training. The indictment was filed on February 21 in the U.S. district court in the eastern district of New York. Court documents do not say how long Babafemi had been in Nigeria before his arrest. Local media reported that he had fled to Nigeria when he learnt of the arrest warrant against him in the U.S., but the information could not be confirmed. It would not be the first time


THE GUARDIAN, Wednesday, August 7, 2013

NEWS 3

News Appeal Court sacks Bauchi dep gov

Health workers may begin strike August 15

From Ali Garba, Bauchi HE Court of Appeal sitting in Jos has set aside the judgment of the Bauchi State High Court which reinstated the erstwhile Deputy Governor of the State, Muhammad Garba Gadi, asking him to pay the sum of N30, 000 as cost to the appellants in the case. The judgment of the Appeal Court constituted by Justices Oyebisi Folayemi, Ibrahim Shata Boliya and Peter Olabisi Ige was delivered on July 26, 2013 following the appeal against the ruling of the lower court delivered on the June 25, 2010, which declared that Gadi’s removal was unconstitutional, null and void. The judgment copies of which were made available to journalists in Bauchi yesterday by the Chief Press Secretary to the Governor, Ishola Michael Adeyemi, reads in part: “Three issues were placed before the Court of Appeal. All three issues were resolved in favour of the appellants, in order words, the appeal succeeded.’’

By Joseph Okoghenun AILURE by the Federal Government to meet the demands of health professionals in the next few days may trigger strike from August 15 by the Nigerian Union of Allied Health Professionals (NUAHP), formerly Nigerian Union of Pharmacists, Medical Scientists and Professionals Allied to Medicine (NUPMTPAM). In a letter to the Minister of Health, Prof. Onyebuchi Chukwu by its National General Secretary, Mr. Obinna Ogbonna, a consultant dietician at the Obafemi Awolowo University Teaching Hospital (OAUTH), NUAHP said the proposed strike, which is an extension of the organisation’s earlier planned action, is to drive home its several demands, which include dissolution of recently inaugurated boards of management of teaching hospitals because of the non-compliance with provisions of laws; immediate stop to the imposition of university lecturers on teaching hospitals as chief medical directors; equitable representation of registered Unions and Assembly of Health Professional Associations on each board of management among others.

T

F

British Deputy High Commissioner, Peter Carter (left); Chairman, Guinness Nigeria Plc, Babatunde Savage and Managing Director/Chief Executive Officer, Seni Adetu, during the courtesy visit of the British Deputy High Commissioner to Guinness Harp Brewery, Ogba, Lagos … yesterday.

Emergency rule has restored peace in N’ East, says Presidency From Mohammed Abubakar (Abuja), Isa Abdulsalami Ahovi (Jos) and Njadvara Musa (Maiduguri) ESPITE occasional attacks by Boko Haram insurgents, the Federal Government yesterday in Abuja said that the emergency rule declared in the three North-eastern states of Adamawa, Borno and Yobe has largely brought relative peace to those states. Meanwhile, the Borno State Vigilance Youths Group (BVYG) yesterday arrested a suspected ‘bomb expert,’ Bula Modu, in Maiduguri immediately after his return from Lagos for the Sallah celebration. In the same vein, the Joint Task Force (JTF) in Yobe State has imposed a 24-hour curfew in Potiskum following security alerts on alleged plans by Boko Haram members to attack the city and other parts of the state during the Eid-del-Fitri celebration. In a related development, the Special Task Force (STF) has said it had put in place security measures to ensure a hitch free Eid-el-Fitri celebration in Plateau State.

D

• Vigilance group arrests suspected ‘bomb expert’ • 24 hour-curfew imposed in Potiskum • Security agencies pledge hitch-free Sallah in Plateau The police in the state have also assured that it will monitor black spots in the state during the Sallah. While appraising the state of emergency three months down the line, the Special Adviser, Media and Publicity, Dr. Reuben Abati in a radio programme monitored in Abuja yesterday, believed that with the renewed inter-security collaboration, the muchdesired peace and security would be achieved before long. He said prior to the declaration of emergency rule, the Boko Haram insurgents had carved out a part of Nigeria, where they created enclaves and were exercising authority but added that they have now been flushed out by the security agencies. “The level of fear before the declaration of state of emergency in those affected states was really very high and even in the rest of the country, but that has gone down now. I think the armed forces

deserve commendation for being able to achieve this. Socio-economic activities have resumed in the affected states- Borno, Adamawa and Yobe, and people can now go about their normal businesses. “What has happened is that there is now greater confidence; the confidence of the people in the capacity of the Federal Government and the Jonathan administration to fulfill the objective of securing lives and property has been restored. The level of confidence is now very high and I believe that is another great achievement. You will find out that in the affected states, there was curfew initially, but that curfew has been relaxed.” According to Abati, “One of the major fall-outs of the operation in the last thee months has been the special focus of government on border patrol, securing our borders. The Nigerian government is doing this in collabo-

ration with neighbouring countries. “So there is greater collaboration at the security level between Nigeria and all neighbouring countries and in fact, in the speech by the President declaring the state of emergency, you will recall that he promised Nigerians that he will take further steps to link up with the neighbouring countries and a lot has been done in that regard. “Also, there has been a general review of the security architecture, which is something the President has always been talking about. We have reached a stage that that is the major point in terms of strategy. It is a long-term sustainable intervention. Also, you will recall that the President had set up a committee to check small arms proliferation. “Now, there is a lot of focus on mopping up small arms and light weapons, that is another area of constructive engagement with our neighbouring countries. Once we check the access of criminal elements to small arms, then we will be able to further strengthen the security archi-

tecture on a long-term basis.” He also dismissed claims that the President Goodluck Jonathan administration was not doing anything to revamp the economy, and referred the questioner to the Mid-Term report card of the administration made public by the President in May and concluded that the economy had continued to witness upward swing despite what the critics of the administration might say. According to the military Joint Task Force (JTF) sources, the arrested suspect was behind the “planting and detonating” of a bomb of May 8, 2013 on the One-Way Maiduguri Monday Market road. The task force, in a statement yesterday in Damaturu, the Yobe State capital, said: “The JTF has received security alert on planned activities of Boko Haram in Potiskum and other parts of Yobe State. To ensure the safety of people’s life and property before and during the Eid-el-Fitri festivities, there will be no movement of residents and vehicles in Potiskum town, until the security situation improves.

Rivers faults EFCC over quizzing of officials From Kelvin Ebiri, Port-Harcourt

• PDP okays action, opposes AG take over of LIoyd’s case

ITING illegality, the Rivers C State government yesterday accused the Economic

on Media to the Rivers State PDP Chairman, Felix Obuah, Mr. Jerry Needam, has described the investigation of Chidi Lloyd and some officials of the state government by the EFCC, over alleged diversion of public funds and other sundry financial misappropriations as a welcome development. Also, PDP in Rivers State said the hurried taking over of Lloyd’s case by the State Attorney General and Commissioner of Justice,

and Financial Crimes Commission (EFCC) of violating judicial processes by its interrogation of state officials. The Chief of Staff to the Governor Chibuike Amaechi, Tony Okocha, said in Port Harcourt yesterday that the Governor Amaechi-led administration has no reason to fear the EFCC’s probe. Meanwhile, Special Adviser

Worgu Boms immediately after plea was taken has further confirmed the fear the party had expressed that justice is on suspension in the matter. Okocha said it was disheartening that a statutory agency like the EFCC could trample with impunity on judicial orders which bars the commission from investigating the financial affairs of a state. According to him, the EFCC is aware of a subsisting order which prohibits its operatives

from interrogating or investigating officials of the state on financial dealings of the state. He added that what the state frowned at was the impropriety the body had introduced to its operations, noting that the operatives, if they felt the need to probe the affairs of the state should go ahead and vacate the court order, which restrains them from coming into the state government affairs. “There is a subsisting court order that says they cannot interrogate or investigate officials of Rivers State govern-

ment on the financial dealings of the state’s affairs; this is still subsisting and they know the proper thing to do is to vacate this order first, but they have left this undone, they rather came unleashing their operatives after state officials. This is improper and we consider it a violation of judicial processes,” he said. The Chief of Staff said the state government was not stopping the commission from discharging its legal duties, as no state official has reason to be afraid of probes or investigations.

Cult members sever female corps member’s hand From Willie Etim ( Yenagoa) A FEMALE National Youth Service Corps (NYSC) member (name withheld) posted to the Obuah community in Yenagoa Local Council Area of Bayelsa State, was yesterday attacked by suspected cult members who severed her right hand with a machete. The 26 year-old Ondo State indigene, a Batch A Corps member and graduate of Nursing from the Madonna University, Elele in Rivers State, was attacked at about 8.30 p.m. while returning to the Corpers Lodge near the Niger Delta University Teaching Hospital, Okolobori, near Yenagoa.

Leadership journalists head for Appeal Court From Lemmy Ughegbe, Abuja WO staff of Leadership Newspapers - Mr. Tony Amokeodo (Group News Editor) and Mr. Chibuzor Ukaibe (Political correspondent) charged with alleged forgery of a presidential bromide yesterday lodged an appeal, seeking to upturn the decision of an Abuja High Court, refusing to stay proceedings pending when President Goodluck Jonathan vacates office in view of the constitutional immunity he enjoys. Amokeodo and Ukaibe require President Jonathan to give evidence in their trial in their bid to defend the charge preferred against them. Dissatisfied with the trial court’s decision not to stay proceedings based on Section 308 of the 1999 Constitution, which forbids the President from legal actions, the duo have approached the Court of Appeal, Abuja Division, challenging the ruling of Justice Usman Musale on July 29, 2013.

T


THE GUARDIAN, Wednesday, August 7, 2013

4 NEWS

Atako takes over from Oboh at NDDC

Court martial convicts colonel of fraud

NEW Acting Managing DiA rector (MD/Chief Executive Officer (CEO) has been

By Odita Sunday

appointed by President Goodluck Jonathan for the Niger Delta Development Commission (NDDC). She is Dr. Christiana Atako, hitherto its Director of Education, Health and Social Services. Secretary to the Government of the Federation (SGF), Anyim Pius Anyim, conveyed the President’s decision to the NDDC’s Chairman, Dr. Tarilah Tebepah, in a letter he read at its Governing Board’s valedictory session last week. According to the SGF, Mrs. Atako’s appointment takes effect from today (August 7). He directed the out-going MD/CEO, Dr. Chris Oboh, whose tenure has expired, to hand over all the commission’s property in his possession to her. Atako, one of the pioneer members of staff of the NDDC, was Assistant Director and Acting Head of Community and Rural Development Directorate at the commission’s inception. Before then, she was Assistant Director and Head of Public Affairs Department of the defunct Oil Mineral Producing Areas Development Commission (OMPADEC) from 1995 to 2001. Subsequently, she became Deputy Director, Community and Rural Development; Head, Corporate Affairs and Director, Community and Rural Development. Atako is a First Class honours graduate of English from the University of Sokoto. She also has a master’s degree, a doctorate of philosophy, with emphasis on Social Psychology, a post-graduate diploma in Public Relations as well as two post-graduate certificates in Cross-Sector Partnerships and Conflict Resolution Skills. She is a Fellow of several professional bodies, such as Institute of Strategic Management, Certified Institute of Public Administration & Management, Certified Directors Institute, Strategic Finance & Administrative Institute, as well as Institute of Corporate Managers and Public Administrators.

HE General Court Martial T (GCM) of the Nigerian Army yesterday found Lieu-

Governors Babatunde Fashola of Lagos State (left), Ibikunle Amosun (Ogun), a guest and Governor Kayode Fayemi of Ekiti State, during the burial of Governor Fashola’s father in Lagos… yesterday.

Fashola’s father laid to rest, govs, others mourn From Kamal Tayo Oropo, Wole Shadare and Tunde Akinola (Lagos), Alemma-Ozioruva Aliu (Benin City), Ann Godwin (Port Harcourt) and John Ogiji (Minna) T was end of a journey that Ithespanned almost 80 years as remains of Alhaji Ibrahim Ademola Fashola, father of Lagos State governor, Mr. Babatunde Raji Fashola, were buried yesterday. Eminent Nigerians from all walks of life turned out to give the deceased a befitting burial, first at the Fashola’s Surulere residence and later at the Lagos Central Mosque, near Idumota, all the way to the Vaults and Gardens, Ikoyi, Lagos. Chief Imam of Lagos State, Alhaji Ibrahim Garba Akinola, led the procession which comprised other clerics as well as representatives of traditional rulers. Politicians, captains of industries and other prominent dignitaries were present to offer support for Governor Fashola.

They included the Minister of Youth and Sports, Mr. Bolaji Abdullahi, who represented President Goodluck Jonathan; Ogun and Ekiti states governors, Ibikunle Amosun and Dr. Kayode Fayemi and Senators Gbenga Ashafa and Babafemi Ojudu. Also at the burial were Alhaji Aliko Dangote, Alhaji Razak Okoya, Mr. Tunde Folawiyo and Alhaja Sherifah Andu. Speaking to journalists after the burial, Governor Fashola, who cut short his lesser hajj (umrah) in Saudi Arabia on Monday, said his father would be happy dying during the Muslim Holy month of Ramadan and “particularly on the very day declared as the night of majesty”. Fashola was full of gratitude to those present, but specially thanked President Jonathan, whom he said called him severally until he got the chance to talk to him. “My father was our (the children) best friend. He allowed

us to be whatever we wanted to be, which is why some of his children are Christians and some married outside the Yoruba race. What’s more, I learnt who I am and who I tried to be from him. And I wish I would be as humble as he was,” Fashola said. Also at the burial site were former Governor of Cross River State, Donald Duke, former Governor of Lagos State, Alhaji Lateef Jakande, Chief Ayo Akande, Mr. Akin KekereEkun, Otunba Alabi Mc-Coy, Alhaji Lateef Salako, Chief Molade Okoya-Thomas, Femi Okunnu, Segun Adesegun, members of the State Executive Council, members of the House of Assembly, members of the House of Representatives and members of the diplomatic corps. Meanwhile, eminent Nigerians, including state governors, and groups have continued to condole with Governor Fashola. The Northern States Gover-

nors Forum (NSGF) under the chairmanship of Babangida Aliyu (Niger State) described the death of Fashola’s father as a big loss to the Lagos helmsman and the entire people of Lagos State, “especially that it came at a critical period when the advice and guidance of elders like the late Fashola are required to address myriad of problems confronting the nation.” In a condolence message signed by Aliyu’s spokesman, Danladi Ndayebo, the forum urged Governor Fashola to be consoled by the fact that his late father lived a life of service to God and humanity. Governor of Rivers State, Chibuike Amaechi urged Fashola and his family to be strong as they go through this period of grief. “This is a most trying period and heartbreaking time for you. But be assured that God knows best. I pray that you find strength and comfort from within as you mourn your late father

tenant Colonel R. A Ahangba, with service number N9827, guilty on two count charges of fraudulently obtaining N150 million from the Bayelsa State government in 2011 and conduct prejudice to service discipline. Ahangba, who was also charged for disobedience to standing order, was sentenced to seven years imprisonment by the court martial, which concluded trial yesterday. The President of the GCM, Brigadier General Edward Nze and the Judge Advocate, Captain Chukwudi Okonkwo, headed the court martial. It was revealed during proceedings that the convict obtained the money from the Bayelsa State government to help facilitate voting for the former governor, Timipre Sylva, in the 2011gubernatorial election. Nze said the decision of the court was subject to superior authority, which, in this case, is the Army headquarters, adding that the officer serving the sentence automatically means he is dismissed from the Nigerian Army. He said: “As a rule, ex-convicts don’t serve in the armed forces and so if the superior authorities enforce the decision of the court, it automatically means that the officers has been dismissed.” The convicted officer was arrested in 2012 following a letter from the late former National Security Adviser (NSA), General Andrew Azazi, which was directed to the Army headquarters, stating that the officer impersonated him to obtain money from the Bayelsa State government. The Guardian gathered that the convict had contacted some officials of the state government falsely on behalf of Azazi and asked for N150million to execute projects in some of the communities in Ekeremo Local Government and in turn would secure electoral votes for their principal officer. According to the evidence of bank documents of the convict, which was tendered as exhibit in the court, the state government had actually transferred the said amount into his bank account, which he diverted into obtaining shares from First Bank and UBA registrars. From the lump sum of money he fraudulently obtained, he was said to have given N5million and N8million to one Lieutenant Agaku and another unidentified lady in the bank. Investigations revealed that although the money was intended to facilitate some community projects, the convict had no intention of executing them as he speedily moved the money to his private account. While reading the findings of the court, Nze said: “The court has no doubt in mind that the accused person suggested the projects to officials of the Bayelsa State government from the evidence before this court. “Again, the evidence before this court showed that he collected the said money from the state government as shown by bank documents tendered as exhibit P7 to P10. Also evidence before the court shows that the NSA never used the money.”


THE GUARDIAN, Wednesday, August 7, 2013

NEWS 5

Jonathan denies breakfast date with Babangida From Mohammed Abubakar, Abuja RESIDENT Goodluck P Jonathan yesterday denied media reports that he had visited the hilltop home of former military President, General Ibrahim Babangida, Minna, Niger State for breakfast during the on-going Moslem Ramadan fast. Jonathan’s denial is coming on the heels of an Abujabased newspaper report yesterday where it alleged that the President sought to visit Babangida in Minna to show him “the spirit of comradeship” during Ramadan. In a statement by his Special Adviser, Media and Publicity, Dr. Reuben Abati, Jonathan said, though he participates in the Ramadan fast every year in solidarity with Nigerians of the Islamic faith, he has never as Vice President or President of the country visited the residence of any individual to break his fast. Protesting teachers at the Edo State NUJ over the kidnap of three of their colleagues.

PHOTO: ALEMMA-OZIOUVA ALIU

Govt pledges assistance to deceased journalists’ families

Edo teachers protest against colleagues’ abduction

From Ifeanyi Onyedika, Abuja

From Alemma-Ozioruva Aliu, Benin City

HE Federal Government has promised to assist the families of three journalists who died in a ghastly accident along Ilesa-Ile-Ife highway, Osun State last weekend. Minister of Information, Labaran Maku, who disclosed this while briefing newsmen yesterday in Abuja, described the late journalists as worthy ambassadors of the country and the journalism profession. He said: “We sincerely condole the families of our colleagues who have passed on, we are pained by these sudden death but God graces, we will do something in the ministry to extend a helping hand to the families of our colleagues, we will be meeting with the management of the three agencies to see what we can do for their families”. It would be recalled that three of the 13 occupants in the illfated bus, Kafayat Odunsi of Nigerian Television Authority, Adolphus Okonkwo of Voice of Nigeria and Tunde Oluwanike of Federal Radio Corporation of Nigeria died on the spot.

EMBERS of the Nigeria M Union of Teachers (NUT) yesterday marched through

T

Literary fair changes name to Port Harcourt book festival From Ann Godwin, Port Harcourt HE famous Garden City LitT erary Festival has been changed to the Port Harcourt book festival following the widening of its content, scope and attraction. The change of name, according to the Festival Director, Koko Kalango, was part of plans to institutionalise the festival, as it would henceforth be run by the Port Harcourt Literary Society and the Rainbow Book Club as project managers. Kalango while briefing journalists in Port Harcourt ahead of the 2013 book festival billed for October 21 to 26, added that the change of name was aimed to reduce the ambiguity of ‘Garden city’ as there are several Garden cities across the world but only one in Port Harcourt.

major streets of Benin City demanding unconditional release of three of their colleagues kidnapped last week. NUT members from Ovia North East Local Council of the state, during the protest march to the Nigeria Union of Journalists press centre, Benin, however, alleged that Governor Adams Oshiomhole had on several occasions given the impression that teachers were well off, even though they are being owed two months’ salary. NUT chairman in the council, Nero Edema, who led the protesters, said it was sur-

• Govt invites 1, 300 for certificates’ screening prising that primary school teachers could become targets of kidnappers in the state. Three teachers, Patience Osadolor, Momodu Aisha and Patience Oroghene were reportedly abducted at gunpoint from Orhogbua Primary School, Ekenwan village during school hours last week Tuesday. Edema said, “Enough is enough, this is about the fifth time that teachers are being kidnapped within our local government. The governor said teachers are earning big; this is the wrong impression the kidnappers have by starting to kidnap our teachers. “We urge NUJ to help us ap-

peal to all Nigerians over teachers’ plight in Edo State. For the past three months teachers’ salary has not been paid. So, we are going to meet the Oba of Benin to plead with him. The Ekenwan zone where we have 23 schools will remain closed until the kidnap victims are released.” Edo NUJ secretary, Titus Akhigbe in his response urged the teachers to go about their protest in a peaceful manner. Spokesman of the Edo State Police Command, DSP Moses Eguaveon said police in the state have begun investigations into the kidnap, promising that the teachers would be rescued unhurt.

Meanwhile, the state government has invited 1, 300 primary school teachers with irregularities in their certificates and age records to appear before a verification committee. This was made known at a meeting between Oshiomhole, the state Nigeria Labour Congress (NLC) led by Comrade Emmanuel Ademokun and the Nigeria Union of Teachers (NUT) led by Comrade Patrick Ikosimi. The governor, who said that the exercise is not to witchhunt anybody, however, insisted that it would not be business as usual and that those who have become too old to teach will have to give

UPN seeks compensation for relocated non-indigenes By Abiodun Fanoro, Lagos, Gordi Udeajah, Umuahia, Inemesit Akpan-Nsoh, Uyo and Tunji Omofoye, Osogbo EVIVED Unity Party of Nigeria (UPN) has demanded compensations for the 72 non-indigenes relocated by the Lagos State Government. UPN, during a press conference yesterday by its National Chairman, Dr. Frederick Fasehun in Lagos condemned the action, saying, “The expulsion of apparently disadvantaged Nigerians by the Action Congress of Nigeria (ACN) regime in Lagos State amounts to abdication of moral, legal and constitutional responsibility it naturally owes citizens. Also, United States of America chapter of the Peoples Democratic Party (PDP) has joined to decry the recent relocation, giving Governor Babatunde Raji Fashola and associates four-week ultimatum to apologise to the victims. In a statement by their chairman, Dr. Harold Molokwu, which was emailed to The Guardian, it described the relocation as a

R

• Akwa Ibom denies evacuation claims • Osun APC urges caution, U.S.-based PDP threatens lawsuit “flagrant breach of the constitution of Nigeria.” “Should the apology not be tendered within the period,” the chapter said it would resort to “legal action and petition appropriate quarters, including the United Nations.” In a related development, Akwa Ibom State Commissioner for Information and Communications, Mr. Aniekan Umanah has described as misrepresentation of claims by Lagos ACN that the state government asked Lagos State Government to evacuate its indigenes from Akwa Ibom State. Umanah said the State Ministry of Women Affairs and Social Welfare came across two ‘vagrant psychotics’, whom they took to hospital for medical treatment. He further stated that the patients, having considerably recovered from their ailment gave their names as Babatunde Obamaiviya and Tunde Jimmy and claimed to be indigenes of Lagos State, and

had no relations in Akwa Ibom State. Umanah added, since then, the patients were hospitalised and duly treated with good responses. Following their processes of recovering of sanity, the doctor has placed them on trial leave. Umanah maintained that Akwa Ibom State government at no time did not request the evacuation of non-indigenes, nor did it deport non-indigenes. However, Osun State chapter of All Progressives Congress (APC) has urged the Anambra State government and the Igbo ethnic nationality not to politicise the recent relocation of 14 destitute from Lagos to Anambra State. The party noted that it has watched the raging controversy the issue has generated, urging that Anambra State government should not display undue bitterness because destitute had been repatriated from Lagos to other states of the federation including Osun State with-

out noise from the affected states. Addressing a press conference yesterday in Osogbo, Acting chairman of the party, Elder Adelowo Adebiyi said the reaction of Peter Obi could damage the existing cordial relationship between Igbo and Yoruba.

way. Oshiomhole said: “It is not my wish to preside over dismissals, first it is not cheap. Secondly, I have a responsibility to keep Edo going and ensure that our children are in good hands of teachers who are strong and competent to teach. “If the facts reveal that there are teachers in the classroom who do not have the requisite qualification, you cannot insist that they remain in the system. The good news is that those who are not too old, who are capable of training, if we find that they are deficient and it is possible for them to benefit from training, we will give them training,” he pledged. “I have asked the Ministry of Education to invite those categories of teachers whose number is about one thousand three hundred, who from the records appear to have started their primary school before they were born to come and speak to the fact because we are not assuming that those documents are iron-cast.” The governor said the primary school teachers will be paid their months’ salary, which was withheld while they embarked on strike. He said this is informed by the fact that the teachers are now back to the classrooms and have agreed to cover the lost ground.


THE GUARDIAN, Wednesday, August 7, 2013

6 | NEWS

ASUU, govt talks inconclusive From Lawrence Njoku (Enugu) and Kanayo Umeh (Abuja)

Union wants clergy, monarchs, others to prevail on FG

HE ongoing industrial acT tion embarked on by the Academic Staff Union of Uni-

mittee on NEEDS Assessment in Nigerian Universities, chaired by Benue State Governor, Gabriel Suswam. Meanwhile, apparently foreseeing that the Federal Government was in no hurry to cede ground, ASUU yesterday invited the clergy, traditional rulers and stakeholders to prevail on the Federal Government to respect the 2009 FGN/ASUU agreement and to make integrity its watchword. Acting Chairman of Enugu State University of Science and Technology (ESUT) chapter of ASUU, Uche Omeje, told newsmen in Enugu that is “demeaning, despicable, and an expression of lack of in-

versities (ASUU) might not be over anytime soon as the Federal Government’s re-negotiating committee has failed to reach a compromise with the union. Instead, the meeting adjourned for another one week to enable the sub-committee recently raised to conclude its work on the details of the 2009 ASUU/FGN agreement. This was made known by ASUU President, Dr. Nasir IsaFaggae, in an interview with journalists in Abuja after the meeting with the Presidential Implementation Com-

tegrity on government’s part to renege on its promise.” According to Omeje, “ASUU and Nigerians are worried by the institutionalised falsehood and the lack of integrity exhibited by the Federal Government and hence condemns this perfidy in its entirety.” He expressed the determination of union members to continue with the ongoing strike until government implements the agreement and memorandum of understanding it freely entered with the union in 2012. However, Suswam was optimistic that the end of the strike was in sight, noting that the issues in contention

would be squarely addressed when the committee reassembles next Tuesday. Yesterday’s meeting, which took place at the Benue Governor’s Lodge at Asokoro, and attended by the two ministers in the Ministry of Education, Executive Secretary of the National Universities Commission (NUC), Prof. Julius Okojie, officials of the Central Bank of Nigeria (CBN), Tertiary Education Trust Fund (TETFund) and the Senate, representatives of other varsity unions such as NASU, SSANU and NAATS, among others, did not make appreciable progress. Issa-Fagee told newsmen: “You could see that today’s

meeting was very short because the sub-committee has not finished its work. We are going to resume again on Tuesday next week to look at what the committee has as a final report.” According to him, the committee is supposed to provide the union with a template on how best to look at what had been presented by government in terms of making provisions for infrastructure rehabilitation in the universities. Asked how close the union was to calling off the strike, he said: “I keep telling you that I decide how to cross my bridge when I reach (it). There is nothing on the table; when the sub-committee finishes its work and tables it before us, we will look

EFCC declares Fargo Petroleum chiefs wanted From Abosede Musari, Abuja HE Managing Director of Fargo Petroleum and Gas Limited, Seun Ogunbambo and the General Manager, Operations, Habila Theck, have been declared wanted by the Economic and Financial Crimes Commission (EFCC) over fuel subsidy scam. The duo, accused of duping the Federal Government to the tune of N976 million in bogus oil subsidy claims, were alleged to have jumped bail, having been earlier arraigned and granted bail by a Lagos State High Court. “They are wanted in connection with a case of conspiracy, forgery and obtaining the sum of N976 million from the Petroleum Support Fund by false pretence,” the EFCC said yesterday. The fair-skinned Ogunbambo speaks English and Yoruba, while Theck is fluent in English and Hausa languages. Ogunbambo’s last known address is No.2, Olamiyuyan Crescent, Ikoyi, Lagos, while Theck’s is 89,

T

Pipeline vandalism did not occur in Ajura, says monarch HE Olu of Ajura in T Obafemi/Owode Local Council of Ogun State, Oba

Project Coordinator, National Summit/Awards on Breastfeeding Awareness and Advocacy, Mrs. Bunmi Ogundimu (left); Director, Child Development, Ministry of Women Affairs, Poverty Alleviation, Lagos State, Mrs. Alaba Fadairo; daughter of the late Head of State, General Murtala Muhammed, Fatima, and one of the award recipients, Dr. Joe Okei-Odumakin during the National Summit/Awards on Breast-feeding Awareness and Advocacy in Lagos…yesterday PHOTO: OSENI YUSUF

Oritsejafor threatens mass protest against child marriage From Isa Abdulsalami Ahovi (Jos) and Charles Coffie-Gyamfi (Abeokuta) ATIONAL Chairman of the Christian Association of Nigeria (CAN), Ayo Oritsejafor, has urged the Senate to reverse its decision on childmarriage or he would mobilise Nigerians to protest against it. Oritsejafor, who spoke with journalists yesterday in Jos, Plateau State capital, shortly after an inter-denomination service organised by the leadership of CAN, North Central Zone, also urged politicians to stop overheating the polity ahead of 2015 general elections but to concentrate on good governance and provide the dividend of democracy to the owners of their mandate. He insisted that marriage should not be for the immature, who would not be able to handle the numerous chal-

N

Children vow to go on hunger strike in Ogun, demand apology from Senate lenges it offers, thereby further compounding citizens’ poverty level. And to press forward their indignation at the position of the Senate on the vexed issue, Nigerian children in Ogun State yesterday threatened an indefinite hunger strike if the Senate does not reverse itself within the next 10 days. Besides, the children have demanded an unreserved apology from the Senate for entertaining the bill at all. They spoke after a group of children had participated in a movie in Abeokuta yesterday, exposing the hardship being faced by kids who were given into early marriage. Entitled: “Yerima: Diary of a Child,” spokesperson of the children, Miss Pascalyne Ogbuli, told journalists that “it was during the making of this film against early child marriage that we truly realised

the cruelty of child-marriage, its humiliating impact and consequences on children, especially the girl-child.” Ogbuli said: “We, therefore, decided to champion the voice against early marriage law in Nigeria and educate other children about it because we are convinced that if no one speaks boldly for us, we should be bold enough to come together and speak for ourselves because what affects one, affects all.” According to Oritsejafor, “no girl should be forced into marriage below the age of 18; they should be allowed to go to school and get mature so that they can make decision for themselves and be old enough to handle the challenges of marriage.” “So, we are totally against what has happened in the Senate and are asking them

to reverse it. We disagree with them, it is a wrong move and Nigeria and Nigerians will not accept it.” The CAN president lamented that most Nigerians do not have the fear of God, stating: “It is lack of fear of God that makes a grown-up man marry a girl 13-year-old. Also, the reason people steal in Nigeria with impunity is because they don’t have the fear of God. You can see pensioners collapsing and one man will take N23 billion alone and go to sleep. “I am not comfortable with the way politics is being played towards 2015. Politicians need to calm down, they need to know that it is all about the people and not themselves; and if they know that, they should not overheat the polity because it is the people who will suffer.

“The President, governors and other political leaders should concentrate on good governance and provide the dividend of democracy to the people, and remember that the fear of God is the beginning of life, wisdom and whatever that is good.” Speaking on the trauma the persecuted church has gone through in the northern part of the country, Oritsejafor encouraged Christians to hold on to God, assuring that God will remember the cry of the orphans and widows, remember Plateau State and Nigeria at large. He commended Governor Jonah David Jang’s leadership style and his courage in managing the prevailing security challenges in the state, noting that Plateau, which hosts the headquarters of many churches in the country, is worst hit by the violence.

Ebenezer Adetayo, has refuted a story published yesterday in a national daily to the effect that soldiers and officers of the Nigerian Security and Civil Defence Corps (NSCDC) arrested a herbalist and 27 others for vandalising Nigerian National Petroleum Corporation (NNPC) pipelines in the community. In a statement he personally signed yesterday and made available to The Guardian, the monarch lamented the publication which he claimed has done a great damage to the peaceful town of Ajura and her law abiding residents, stressing that a comparison of the story with other reports on the same incident showed that it was not in his domain that the vandalism occurred. His words: “To put the record straight, neither are the vandalised NNPC pipelines located in Ajura village nor Ajura is under Ikenne Local Council of Ogun State as was erroneously reported”.

S’East APGA lauds Obi over reconciliation From Leo Sobechi, Abakaliki OUTH-East chapter of the All Progressives Grand Alliance (APGA) has commended Governor Peter Obi of Anambra State for his efforts at reconciling warring factions in the party. However, it decried the double standards employed by the Independent National Electoral Commission (INEC) in its monitoring of political parties. In a release yesterday, the APGA Zonal Chairman, Dr. E.E. Onwuka, stated that after a meeting between the zonal working committee and states’ chairmen of Anambra, Imo, Enugu, Abia and Ebonyi in Enugu, “we not only welcome the reconciliation efforts, but insist that all stakeholders of the party should be involved.”

S


THE GUARDIAN, Wednesday, August 7, 2013

Ekweremadu hails take-off of international flight from Enugu Ethiopian Airlines begins operation August 24 From Azimazi Momoh Jimoh (Abuja) and Chika Goodluck-Ogazi (Lagos) EPUTY President of the D Senate, Ike Ekweremadu, yesterday commended the Federal Government for facilitating the commencement of international flights at the Akanu Ibiam International Airport, Enugu. Reacting to Ethiopian Airlines’ planned international flight operations from August 24, Ekweremadu described the development as a “major milestone in the infrastructural renewal of the South-East and a monumental boost for both trade and direct foreign investment for the entire country.” Stating that it would alleviate the challenges faced by businessmen travelling to the South-East, he commended the late Umaru Musa Yar’Adua, who he said, took the initial practical steps towards making the airport an international facility and a sub-regional aviation hub. Ekweremadu also thanked President Goodluck Jonathan’s administration for faithfully nurturing his predecessor’s dream to reality, saying it highlights the need for policy and project continuity in governance. Meanwhile, Africa’s fastest growing airline, Ethiopia Airl ines, has announced plans to commence four weekly flights to Enugu from August 24, 2013, making the airport the third in Nigeria to service Ethiopia Airlines after Abuja and Lagos.

Defunct ACN chief sues PDP for libel

NEWS 7

Jega’s revelation vindicated us, say Ondo PDP, guber candidate HE Ondo State chapter of T the Peoples Democratic Party (PDP) and its candidate in the 2012 governorship election, Olusola Oke, said they have been vindicated by the open admittance of “monumental corruption and compromise” within the Anambra State arm of the Independent National Electoral Commission (INEC). Referring to the speech by INEC Chairman, Prof. Attahiru Jega, that 79,000 illegal names were injected into the agency’s database, the party said there was nothing more to say but that Nigerians should see the dimensions of the grand plan and threats to the 2015 elections

and the future of democracy in our dear nation.” According to a statement by the Ondo PDP’s Special Adviser on Media and Publicity, Kunle Adebayo, “shouting at the rooftop about the illegal injection into the otherwise sacrosanct voters’ register is a suggestion that INEC is wary of conducting and claiming an election based on an invalid, illegal and highly compromised register, as was done in the last governorship election in Ondo State.” The statement alleged complicity on the part of INEC, which it says now merely sheds crocodile tears, “blowing the whistle over a pre-

meditated manipulation that was planned, perfected, controlled and executed within the deepest confines” of its highest places. It stated further: “Jega’s sanctimonious announcement, therefore, amounts to nothing but an irresponsible and panicky attempt to absolve INEC of a coup already planned against Anambrarians, but which is now an open secret.” Querying how the 79,000 names got into the INEC register, the statement wondered who had authority to access the INEC database, and what explanation the Resident Electoral Commissioner (REC) has offered in

the present circumstance. It asked further: “Who can vouch that there exist no other novel ambush strategies plotted to reduce the credibility of the forthcoming elections into a cigarette in the rains?” It alleged that the Ondo case last year comes to mind when “over 120,625 strange names were later discovered and confirmed in rulings by both the Elections Petitions Tribunal and the Court of Appeal to have been secretly and illegally injected into the Ondo State Voters Register while massive evidence of voting without accreditation and registration of inanimate objects were also led,”

despite Jega’s earlier assurances to the contrary. The statement regretted that in spite of “credible complaints of internal corruption by political parties,” Jega and the REC told the media in Akure that the agency’s database was impenetrable, “yet on election day, voters list suddenly jumped from 1,533,580 to 1,654,205” even without review of the register. Also on record, it claimed, was the over 200,000 unclaimed cards belonging to innocent voters, which were recovered from a member of the INEC staff and a key agent of the ruling Labour Party two days to election.

From Anietie Akpan, Calabar

Director, Service Delivery Partnership for Transforming Health System (PATHS 2), Dr. Amina Aminu (left); Executive Secretary, Health Reform Foundation of Nigeria (HERFON), Dr. Mohammed Lecky and Advocacy Advisor, Save the Children International (SCINT), Dr. David Olayem, at the press briefing of the Health Sector Reform Coalition (HSRC) on the National Health Bill in Abuja…yesterday PHOTO: LADIDI LUCY ELUKPO

CHIEFTAIN of the defunct A Action Congress of Nigeria (ACN), Mr. Eyo Nsa Ekpo,

Akande says APC has come to stay

has sued the Peoples Democratic Party (PDP) to court for alleged libelous publications. In a statement of claims made available to newsmen on Monday and endorsed by his counsel, Prof. Tony Ukam, Ekpo is demanding N100 million as damages “to assuage his psychological, reputational retardation”, as well as N500,000 as cost of prosecution. Secretary of the party’s Elders’ Forum in the state is aggrieved that the PDP, from May 3 to 5, 2013, continually published and or caused to be published, both on radio and television services of the Cross River Broadcasting Corporation (CRBC), a list of the PDP caucuses and elders’ forum members in Odukpani Local Council with his name included. According to the statement, he wrote to the PDP on May 7, 2013, “seeking a retraction, an apology and compensation” but instead, a repeat publication of “the same false, malicious and offensive materials concerning the claimant in the Nigerian Chronicle” was made on May 10. The court has urged the defendant to, within seven days of service of summons, show appearance or judgment may be given in their ab-

Lists benefits of two-party system From Adamu Abuh, Abuja ASKING in the euphoria of the party’s hard-won registration, the interim national Chairman of the All Progressives Congress (APC) management committee, Chief Bisi Akande, says the party has come to stay, adding that the quest for a two-party system in the country was being actualised with the emergence of APC. Flanked by members of the newly-inaugurated management committee, he said the country’s democracy is now about getting deeper, just as he ruled out the possibility of any group taking away the APC acronym from them. According to Akande, the APC would provide Nigerians, who have been at the receiving end of poor governance, a viable alternative to the ruling Peoples Democratic Party (PDP). Responding to a question on what could happen to them if the rival African Peoples Congress claims the APC acronym in court, he said: “In Nigeria today, we don’t know any other APC apart from this All Progressives Congress and we don’t contemplate that

B

anything would happen to move this APC out of place; we shall remain a party forever to rule this country Nigeria.” Meanwhile, he listed the inherent benefits in the emergence of APC, saying: “We are now bringing ourselves together to create a two-party system so that Nigeria would have a bad government and a good one. “Two-party system will deepen our democracy. There are over 40 parties in England

Two-party system will deepen our democracy. There are over 40 parties in England but you have only two or three operating now, ditto in America, where you have the Democratic and Republican parties. In our own case, we don’t even know which one was a better party but you have only two or three operating now, ditto in America, where you have the Democratic and Republican parties. In our own case, we don’t even know which one was a better party.” Urging supporters not to arrogate to themselves the

chairmanship of the APC in their respective states or local councils until ward, local council and state congresses are held, he disclosed that several committees have been set up to ensure that the APC is well rooted across the country.

DPP to prove rigging in Delta guber election From Chido Okafor, Warri HE Democratic Peoples Party (DPP) has concluded plans to present to the Chairman of the Independent National Electoral Commission (INEC), Prof. Attahiru Jega, detailed proof that elections were rigged in the riverine areas of Delta State. The expose would be made at a workshop on August 24, 2013, in the state to discuss electoral matters, and the INEC chairman, The

T

DPP governorship aspirant, Great Ovedje Ogboru, disclosed this when the party’s leadership met members at Abraka on Sunday evening to plan for the vacant post in Delta Central Senatorial District with the demise of Pius Ewherido Guardian learnt, would attend the workshop. DPP governorship aspirant, Great Ovedje Ogboru, disclosed this when the party’s leadership met members at Abraka on Sunday evening to plan for the vacant post in Delta Central Senatorial District with the demise of

Pius Ewherido. Alleging that it was in the riverine communities of the state that the PDP “manufactured 291,000 votes” to defeat his party, Ogboru queried the circumstance surrounding the Supreme Court’s eventual dismissal of his case in the guber election.

Anambra pays N1.5b pensions, gratuities to 945 retirees From Uzoma Nzeagwu, Awka OVERNOR Peter Obi has G cleared the 2012 gratuities and pensions to 945 retirees in Anambra State totaling over N1.5 billion. Obi, who presented cheques to the beneficiaries (pensioners) or next-of-kin of the deceased (gratuities) at the Women Development Centre in Awka on Monday, said his administration has sustained prompt payment of pensions and gratuities because of prudent and skillful management of available resources. He recalled that his administration liquidated arrears of pensions and gratuities accumulated by successive administrations since 1996, as he enjoined the pensioners to remain part of the efforts to rebuild the state by insisting that future administrations continue to build on the strong foundation already laid. Obi also announced that he would, next Monday, launch his government’s Social Welfare Scheme, where about 40,000 identified indigenes, who have attained the age of 70, will be paid monthly maintenance allowance.


8|

THE GUARDIAN, Wednesday, August 7, 2013

Focus Tank Farms: The ticking Lagos time bomb By Roseline Okere

M

ANY Nigerians who have never visited Kirikiri Town will not readily enlist interest in visiting the community. The name itself evokes discomforting feelings in the psyche of not quite a few. The phobia may have been accentuated by the location of notorious prisons in the area. But while the residents of the town will readily allude to the fact that the correction centres – Kirikiri Maximum, Medium and Women Prisons – are about the most serene environment in the area, they will, however give testimonies of severe hardships which the pangs of tank farms’ location in the place have been unleashing on the populace in recent years. Kirikiri Town is however just one of the settlements in the axis sharing the ordeal of phenomenal traffic logjams and environmental abuse by the oil companies operating tank farms there. The Beachland Estate and Ijegun Town have over the years been hoping against hope that Lagos State government would fulfill its pledge to relocate these hazard harbingers from their communities. Last year, the state government, acknowledging an imminent disaster in the communities, pledged to ensure the relocation of tank farms, that have attracted a huge traffic of fuel tankers into the axis. But with more fuel storage facilities being erected around the communities, the days of relief for the residents may have been postponed. Already, some of the residents have started relocating from the settlements there, after unsuccessfully fighting against the encroachment of their environment, by environmentally life – threatening fuel storage and distribution facilities in the area. The Kirikiri, Ijegun and Apapa area of Lagos are already swarming with petroleum tankers and the attendant traffic logjam as a result of the petroleum tank farms sited there. Besides, the Lagos State Government has concluded plans to relocate these tank farms to avoid future disaster, saying that the Federal Government contravenes the Health Safety and Environment (HSE) law. About 15 years ago, the first settlers at the Creek View estate in Kirikiri Town began to develop their parcels of land, which was for residential purpose under the Lagos State Government and free from government acquisition. In 2005, Techno Oil Nigeria Limited arrived to set up the first of what would later become a chain of oil depots. Other tank farm owners at the estate are Index Oil, Swift Oil, Bovas Oil and Fatgbems Petroleum Limited. Also, in Apapa area of Lagos, the presence of tank farms has also been sending fears to other business owners around the area, who believed that any explosion from the any of the tank farms could raze down the residential buildings with high prospects of fatalities, with the residents believing logically that the presence of the fuel depots is a ticking time bomb, waiting to explode. The Guardian gathered that Techno Oil, Fatgbems Oil, Bovas Oil, Index Petroleum and Swift Oil, were sealed up by the Lagos State Environmental Protection Agency (LASEPA), for siting tank farms less than 200 metres away from residential area and operating the facilities without submission of Environmental Impact Assessment reports to the agency. But the companies were reopened shortly after they paid the necessary fines to the Lagos State Government. Residents of Apapa and businesses operating around the seaports have on several occasions appealed to the Federal Government to prevail on the oil marketers to relocate their tank farms, which they said, were less than the 200 metres away from their houses. The fear of having tankers being overturned due to the terrible state of the roads in the

A tank farm axis and having its contents spilled and igniting fire that can spread to a military installations like the Naval Base, is a fear which the residents could not wish away. Already, The Guardian learnt that some of the executive and trustees of Landlord Association in these areas, who speak against oil tanks farms presence and the nuisance presented by their operations, received threats of being put to silence either by diabolical means or otherwise. The residents said that only recently, the estates were thrown into pandemonium, confusion and bitter frustration following a major fire outbreak in one of the oil tank farms - the second time within a very short period of time. The residents believed that regulatory bodies and agencies have compromised the stringent standards for the setting up of these petroleum tank farms. They are concerned that Nigeria and the nation’s vital installations may be at the risk of environmental time bomb as a result of the indiscriminate citing of petroleum tank farms by oil companies. A petition written by the Kirikiri CreekView Estate Resident Association and signed by Chairman of the association, I.C. P Umeh, Secretary, Ad Hoc Committee, David Oleka to the Minister of Petroleum Resources and obtained by The Guardian stated: “If Nigeria accepts that all the residents in our estate and their families are citizens of this country and that Nigeria is obligated to protecting our lives, properties as well as guarantee of fairness to freedom of living and association, then, we are urging the Department of Petroleum Resources to step into the frustrations that we and our entire families now face with these oil tank farms. “As residents in the estate neigbourhoods closer to the oil tank farms, we are badly affected by the chemical emissions and associated chemical odours emanating from the oil tank farms facility, which have remained a terrible nuisance and a source of many adverse effects to our health, safety, and quality of life. We also experience the effects from the tank farm storage excessive noise and vibration, which could impair hearing and monumental environmental damages to our dwelling places. “We have this conviction that unless there is an urgent intervention from DPR, there exist more and more of petrol/kerosene explosions, critical hideouts for criminals due to perpetual parking of petrol tankers and trailers by transporters to the oil tank

farms, severe environmental and oil pollutions resulting from petrochemical hydrants, among others. Adding to their apprehension is the terrible state of roads within the Kirikiri Town. “Roads within Kirikiri are death traps. Most days, they are rendered impassable by oil tankers, container-bearing trucks and trailers who pay scant attention to environmental regulations. Daily road users groan in the intractable traffic they face due to the nuisance posed by these tankers and truck drivers. They said that the estate was currently under siege and serious security risk due to uncontrollable influx of miscreants and undesirable elements who accompany these drivers or sneak into the estate from the tank farms under the guise of working for the oil companies. The residents in the letter, noted that for the houses badly affected by the activities of the oil tanks farms, part of the mitigating measures suggested by the DPR team that visited the estate was that the facilities operators must buy up residential houses close to their petrol storage depots as quickly as possible at prices that guarantee owners’ comfort, together with adequate financial compensation to cover all inconveniences. They said that the houses which took members of the association years to build from a deep swampy land that gulped lots of filling sands were now been viewed and priced by some of the oil tank farms like a piece of bread, claiming that they are doing the residents favour. They claimed their efforts to ensure that LASEPA stepped into the matter proved abortive. “When the matter got to LASEPA, the agency believed that the oil tank farms were operating against known laws in Lagos State on environment and immediately sealed up the tank farms. But less than two days later, the farms were unsealed, after collecting necessary fines from the tank farms owners. Specifically, a former resident of the area who was forced to relocate due to the fear of explosion, Dr. Chris Onalo, in an interview with The Guardian, appealed to the Federal Government to ensure that the residents are compensated for being forced out of their houses. He said: “It took me several years to build my house, which I later sold to a tank farm owner at a price lesser than the present value of the property. I want the government to compensate me.”

Speaking with The Guardian, the General Manager of LASEPA, Adebola Shabi stated: “We settled this issue two years ago. The Federal Government did not do the right thing for giving approval to tank farm owners to construct their tanks in residential areas. You know that granting of licences for the establishment of tank farms is the sole responsibility of the federal government. If the right things were done, this problem would not have arisen. “In 2010, when we clamped down on the them, we decided to bring peace by mandating the tank farm owners to construct water drainages to ease flooding around the residential estate, which is not up to 200 metres from the oil depots in the area. “They agreed to construct water hydrant in front of their depots and purchase fire engines to fight any outbreak of fire in the area. We are taking these measures because the oil tank farms are very close to residential buildings. “We signed Memorandum of Understanding (MoU) with the tank farm owners. It is just that the proper thing was not done right from the beginning, because we would have been able to advise the company on rules guiding the establishment of tank farms. All the things we asked them to do, they complied. The Federal Government did not do the right thing from the beginning. If the right things were done from the beginning, all these issues that are coming up now would have been addressed. “We are only trying to correct the issue and it’s going to be a gradual process. The government has already given them approval. He said that the Lagos State government has concluded plans to ensure that the tank farms around Kirikiri and Apapa area of the state are relocated. “Lagos State government is looking for a way to relocate some of the tank farms in Lagos State. There is no way you can have tank farms compacted in one place like the whole of Apapa in Lagos. There is possibility that explosion from any of the tank farms could result to serious disaster in the state. We are looking at the safety aspect and we felt that there is need for these people to be relocated. We have already recommended that the tank farm be relocated to avoid disaster. “The state government is working seriously on that. Most of the tank farms are not even ready to give back to the environment. They are degrading the environment and getting them to engage in corporate social responsibility is a problem. “Energy Tank Farm in Apapa is not environmental friendly. Some of their filling stations are not complying to environmental and safety law. I have said that the Federal Government has done wrong by allowing them to operate”. A legal professional, Gbolahan Gbadamosi told The Guardian that the permission given to the tank farm owners to set up their businesses around residential areas, contravenes Health Safety and Environment (HSE) law. Gbadamosi stated: “The legally accepted standards for locating tank farms is anchored on HSE. This is where companies that engage in business activities in both the upstream and downstream sectors of the petroleum industry are compelled by law to comply with all environmental health and safety laws, regulations, guidelines or directives. Such companies must conduct their operations in accordance with internationally accepted principles of sustainable development. “On the punishment for violation of such directive, it is located in the statutory powers given to the Department of Petroleum Resources (DPR). The question is does DPR has political will to enforce sanctions? To my mind, it remains to be seen whether it is so. DPR has power to close down oil installations including the filling stations. The closure is more in media stunt than real action”.


|9

THE GUARDIAN, Wednesday, August 7, 2013

WorldReport Russia backs Iran’s president call for serious nuclear talks USSIAN Government has R thrown its weigh behind the call by new Iranian

Egyptian Prime Minister Hazem el-Bablawi (right) during a meeting with U.S. senators John McCain (middle) and Lindsey Graham at his office in Cairo…yesterday. PHOTO: AFP/ MENA

157 rights groups urge Obama to end action against Snowden BOUT 157 civil society organA isations around the world defending human, digital and media rights, including Media Rights Agenda (MRA), have in a joint letter to United States President Barack Obama asked him to end the prosecution of American whistleblower, Edward Snowden, and others like him. Making this known yesterday in a statement to The Guardian, the Executive Director of Media Rights Age, Edetaen Ojo, said Snowden’s disclosures have triggered a necessary and longdelayed public debate about mass surveillance online everywhere. Ojo added that because of the American whistleblower, “we have learned that much of our online life is being systematically intercepted and monitored by governments. “Unfortunately however, rather than investigate and prosecute those that have ordered and conducted one of the most unprecedented global violations of our rights, the U.S. government has chosen to figuratively shoot the messenger, and European governments have been quick to help. “They have revoked his passport, interfered in and obstructed his search for asylum, even impeding the travel of a sovereign president in their desire to punish the messenger,” Ojo stated. The Executive Director of Media Rights Age also expressed fear over the negative effect the manhunt against Snowden would have on governments that rely on the U.S. example. “They will justify their own attacks on their own whistleblowers and journalists who put themselves at significant risk to expose or report wrongdoing, corruption, or other dangers to society. “So together we are calling on President Obama to protect not prosecute whistleblowers, and carry out a full, public investigation into the legality of the National Security Agency’s actions,” the statement indicated.

Foreign lawmakers in fresh diplomatic drive to resolve Egypt’s crisis S part of a diplomatic move A to resolve the crisis sparked by the Egyptian Army’s ouster of Islamist President Mohamed Morsi, two high-profile United States (U.S.) senators, John McCain and Lindsey Graham, as well as Britisah lawmakers have held talks in Cairo with the nation’s contending parties. McCain and Graham, a report by Agence France Presse (AFP) indicated, yesterday met among others with Egyptian Prime Minister Hazem el-Bablawi and army chief, Abdel Fattah al-Sisi while six British members of parliament held talks with Foreign Minister Nabil Fahmy. But Egyptian officials have stressed the desire for national reconciliation. Surprisingly too, McCain yesterday described the ouster of Morsi as a coup. The use of the word “coup” counters how the Obama administration has avoided attaching that label to military’s ouster of Morsi, according to the Cable News Network (CNN). “We have said we share the democratic aspirations and criticism of the Morsi government that led millions of Egyptians into the streets... We’ve also said that the circumstances of (Morsi’s) removal was a coup,” McCain told reporters in Cairo yesterday.

However, as tensions mounted over the looming breakup of two major sit-ins staged by Morsi loyalists, vice president Mohamed ElBaradei urged the Muslim Brotherhood to embrace a peaceful solution and called on the media to stop “demonising” the group. Morsi has been formally remanded in custody on suspicion of offences committed when he escaped from prison during the 2011 revolt that toppled former president Hosni Mubarak. Yesterday, prosecutors ordered the detention of two of

his aides for 15 days pending investigation into deadly clashes between supporters and opponents of the deposed president outside the Ittihadiya presidential palace last December. Morsi’s secretary, Ahmed Abdel-Aati and his security adviser, Ayman Hodhod, join a string of Islamist leaders in jail, including two deputies of the Muslim Brotherhood. Egypt’s political crisis, sparked by the military’s July 3 overthrow of Morsi, has paralysed the country and deepened political polarisation and social divisions.

President Hassan Rouhani for fresh negotiations without delay on Tehran’s controversial nuclear programme. In the same breath, Moscow also yesterday criticised moves by United States (U.S.) lawmakers for harsher sanctions against Iran. Rouhani said yesterday at his first news conference since assuming office that Iran was ready for “serious” talks on its nuclear programme “without wasting time.” “We absolutely agree with what he said,” Foreign Minister Sergei Lavrov was quoted as saying at a news conference in Rome by Russian news agencies. “Now it’s extremely important to support such an attitude from the Iranian leadership,” Agence France Presse (AFP) cited Lavrov as saying. “We need to resolve this, like any other problem, not on the level of ultimatums, but on the basis of respectful relations with a partner, and the basis for this is within the ‘three plus three’ talks,” Lavrov said. He was referring to talks involving three European Union countries – Germany, France and Britain – as well as the United States, China and Russia. While Iran insists its nuclear programme, including uranium enrichment is peaceful, Western powers believe it is

Now it’s extremely important to support such an attitude from the Iranian leadership… We need to resolve this, like any other problem, not on the level of ultimatums, but on the basis of respectful relations with a partner, and the basis for this is within the ‘three plus three’ talks. using it as a cover to develop nuclear weapons. Lavrov stressed Moscow’s opposition to calls by U.S. senators to toughen sanctions on Iran, saying that this was inadvisable when a new president was taking office. In a letter published Monday, 76 U.S. senators urged President Barack Obama to impose harsher sanctions on Iran. “I think these ideas contradict the fundamental interests of the international community, the interests of ensuring a regime of non-proliferation,” Lavrov said. “These are dangerous games and we hope reason will prevail.” Iran has been slapped with successive rounds of UN Security Council sanctions and also unilateral measures by the United States and the European Union. Iran and world powers have held two rounds of talks in Almaty in Kazakhstan, which have been marked by a better atmosphere than previous talks.

Malta denies entry to boat with 102 refugees despite EU pressure ALTA yesterday refused to M allow 102 migrants rescued from a leaking dinghy on to the island despite pressure from the European Commission to let them disembark on humanitarian grounds. The migrants, including a four-month-old baby and four pregnant women, were rescued from their badly damaged inflatable boat on Monday by the Liberianflagged Salamis oil tanker 80 kilometres off the Libyan

coast. The Maltese interior ministry said in a statement that the authorities had told the captain of the Salamis he had no permission to enter Malta’s territorial waters. EU Home Affairs Commissioner Cecilia Malmstroem had said that the refugees should be allowed to land on Malta “as soon as possible.” The Maltese government claimed that a patrolling Italian navy ship had ordered

the Salamis to take the migrants to the nearest available port, in this case in Libya. The alleged refusal by the captain to obey this order “created an expectation that Malta should shoulder international obligations which would have never been incumbent upon it had the master complied,” Malta’s deputy attorney general Donatella Frendo Dimech said in a statement. Malta insists the refugees had no need to disembark be-

cause they had already been rescued and their lives were not at risk. But Malmstroem said it was “the humanitarian duty of the Maltese authorities to allow these persons to disembark.” “Sending the ship back to Libya would be contrary to international law,” she said. With the ship closest to Malta, a dispute over the rights and wrongs of the case “does not help the persons in immediate need,” she added.

U.S., Britain evacuate workers from Yemen amid Al-Qaeda alert NITED States and Britain U have evacuated dozens of their diplomatic staff from Yemen amid region-wide fears of an imminent AlQaeda attack. Also, France, Germany and other European countries have also taken extra precautions. The evacuation came on the heels of Washington’s closure of two dozen U.S. embassies in the Middle East and North Africa after its spies intercepted militant communications, reportedly including

an attack order from Al-Qaeda leader, Ayman al-Zawahiri. While the closures span capitals across the Arab world, the focus of fears has been on Yemen, where U.S. forces are fighting a drone war against Al-Qaeda’s powerful local wing. Britain yesterday said it had withdrawn all staff from its embassy in Sanaa, Yemen’s capital, and extended the closure of the mission until further notice. “Due to increased security concerns, all staff in the

The evacuation came on the heels of Washington’s closure of two dozen U.S. embassies in the Middle East and North Africa after its spies intercepted militant communications, reportedly including an attack order from AlQaeda leader, Ayman al-Zawahiri. British Embassy have been temporarily withdrawn and the Embassy will remain closed until staff are able to return,” the Foreign Office said on its website. “There is a very high threat of kidnap from armed tribes, criminals and terrorists. Be

particularly vigilant during Ramadan, when tensions could be heightened,” it said. Meanwhile, some 75 non-essential staffers at the U.S. embassy in Sanaa were evacuated aboard a U.S. military plane, an American official told AFP on condition of anonymity.

The plane, accompanied by a support aircraft, flew to the U.S. air base in Ramstein, Germany, the official said. “We are concerned about a threat stream indicating the potential for terrorist attacks against U.S. persons or facilities overseas, especially emanating from the Arabian Peninsula,” State Department spokeswoman, Jen Psaki. The State Department warned U.S. citizens not to travel to Yemen and strongly urged any already there to leave “immediately.”


10

THE GUARDIAN, Wednesday, August 7, 2013

Politics APC’s time has come An Interim National Leadership of APC is now in place and has a tenure not exceeding six months. The fundamental role of the Interim Leadership is to establish the party nationwide from the lowest level in each Ward to the highest national level in the country. And the major challenge now in the hands of that leadership is to carry out this assignment in a transparent and credible manner such as would give very clear signals that APC is presenting indeed a clear departure from the sordid past.

By Tom Ikimi week Wednesday, the good LINECAST news reached me in Europe that had at last registered the All Progressives Congress (APC) as a full-fledged political party in Nigeria. I was overwhelmed with joy and satisfaction at this successful outcome of several attempts to unify the opposition in Nigeria over the years. To me, the news brought a great feeling of personal accomplishment, as I had, for several years now, looked forward to a scenario where there would be two dominant political parties in Nigeria as is the case in most civilised democracies; just like it was from 1990 to 1993 here in the country when I was privileged to play a pioneering role as the National Chairman of the National Republican Convention (NRC), one of the two parties created at the time. I recall the very healthy political contests that took place between the NRC and the SDP (Social Democratic Party) in those days such that there were hardly any court cases at the end of elections. Although that period of our political history was short-lived, most political observers are unanimous in their assessment that the period witnessed the best democratic political experience of Party Politics in the nation so far. Over the past 14 years or so, our country has been subjected to a regime of impunity led by a virtual dictatorship that has made no apology in steering the country towards a one-party state. The nation has been inundated with embarrassing proclamations by the PDP such as they will rule Nigeria for the next 100 years. Political power is no longer derived through a contest based on civilised dialogue, the presentation of ideas or manifesto or through the outcome of the ballot box but has now become a “do or die” assault waged by a cabal of “garrison commanders” through a blatant corruption of the process, crudely and arrogantly brandishing a force to “capture” territories that dare to disagree with them. Even more frightening is the recent case of an election involving critical leaders in the country conducted in a free and transparent process where someone clearly won but the loser is being proclaimed the winner by a so-called powerful cabal. I have followed with extreme sadness the stunning accounts emerging from a Southern state where five members in a 32-member State House of Assembly purported to have impeached their Speaker against the will of 27 other members. This was most undemocratic and a reckless display of arrogant power in an atmosphere of lawless-

Ikimi ness perpetrated in the presence of security agencies. This period, the past 14 years, has also witnessed an incredulous level of corruption, which has negatively compromised the state of our country in the worst possible way imaginable, affecting all sectors of life. In spite of the huge resources claimed to have been deployed, virtually all national infrastructure have all but crashed, the educational system collapsed, the health sector descended into a sorry state and Nigeria is now said to be the second largest importer of rice in the world. While more than 30 percent of the daily produce of crude oil is being “officially” stolen, the nation’s economy, now mortgaged to foreign financial institutions, has brought the country to her knees. The national security system has so deteriorated that an entire region is now under a state of emergency

I must at this point acknowledge the patriotic zeal, courage and rare show of patriotism displayed by General Muhammadu Buhari of CPC, Senator Bola Ahmed Tinubu of the ACN, Senator Ali Modu Sheriff of the ANPP and the entire leadership of the merging parties who have had to make such huge and unprecedented sacrifice to give up territories and identities in order to ensure the success of the merger in the national interest.

with no visible solution in sight. My former party, the Action Congress (AC), later Action Congress of Nigeria (ACN), born as a child of circumstance in 2006, fought a good and courageous fight as a credible opposition party but became limited in national spread and otherwise, was not able to provide the needed robust and credible alternative national platform to effectively and successfully confront the PDP. The ANPP, established since 1999 and CPC since 2011 are both strong and influential in the Northern hemisphere of our country, each boasting control of State Governments and a good number of federal legislators in the National Assembly. Therefore, an aggregate of these three parties merging together in conjunction with powerful breakaway groups from APGA of South Eastern Nigeria, as well as from DPP, particularly in Delta State, a formidable alternative platform with a national spread has now been created and its time has come. I must at this point acknowledge the patriotic zeal, courage and rare show of patriotism displayed by General Muhammadu Buhari of CPC, Senator Bola Ahmed Tinubu of the ACN, Senator Ali Modu Sheriff of the ANPP and the entire leadership of the merging parties who have had to make such huge and unprecedented sacrifice to give up

territories and identities in order to ensure the success of the merger in the national interest. This is to fulfill the proverbial saying that it is better to be a small fish in the open sea rather than a big fish huddled in a tiny pond. Over the years, in past Republics, less courageous political leaders ended up with fragile alliances in which every single item from time to time became a subject of tedious negotiations! I was privileged to work with 88 other eminent Nigerian politicians nominated by the leadership of the Merging Parties in the Merger Committee. Our membership included past and sitting Senators as well as Members of House of Representatives, past and current Governors, past National Party Chairmen, eminent lawyers, elder Statesmen and academics, distinguished politicians, Civil Society activists, women and youth leaders, etc. The ANPP team was led by H.E. Ibrahim Shekarau, the former Governor of Kano State while the CPC team was led by Alhaji Garba Gadi, former Deputy Governor of Bauchi State. It was my honour and privilege to serve as the coordinating chairman. The three of us worked harmoniously together to lead the merger talks. The merger committee met continuously for about five months in a serene brotherly atmosphere and we managed to manoeuvre through all manner of difficult sensitive issues. Eventually, we reached agreement on all relevant areas, thus enabling the three parties to hold National Conventions to adopt the new party — APC complete with a new constitution, manifesto, symbol, motto and logo. I like to express my profound thanks to all the 88 members of the Merger Committee, for their dedication and commitment to the project. Within a few weeks of our meeting, we had managed to bond so closely together that in the conference room, one could hardly identify who was from which party. As true patriots, contributions from committee members became always focused on the subject matter only. Similarly, I would like to place on record my profound thanks and indebtedness to the eleven Progressive Governors, who gave unalloyed support to the process generally and to our committee particularly. They stand out today as an oasis of credibility within the ranks of the nation’s governors. Our mandate was to negotiate and conclude a merger with political parties, groups and individuals. This permitted sections from some other parties, such as APGA and DPP, to participate in our discussions, but as a merger could only be pursued by registered political par-

ties, the three parties that fulfilled the prescribed conditions for merger in accordance with the Electoral Act were ACN, ANPP and CPC. Needless to emphasise, however, that a substantial number of groups and individuals from the other parties have now fully joined the merger and have become full members of the APC. This is an ongoing process and I am aware of many other groups and individuals across the nation desirous to join the APC and currently making moves to do so. Arrangements are in progress to accommodate everyone. An Interim National Leadership of APC is now in place and has a tenure not exceeding six months. The fundamental role of the Interim Leadership is to establish the party nationwide from the lowest level in each Ward to the highest national level in the country. And the major challenge now in the hands of that leadership is to carry out this assignment in a transparent and credible manner such as would give very clear signals that APC is presenting indeed a clear departure from the sordid past. This will be done through a credible membership registration process, transparent Congresses and National Convention in accordance with the Party’s constitution. At the end of the day, all who subscribe to membership of the APC must be assured of unfettered opportunities, which a Mega Party should guarantee. We look forward to interesting times ahead, of a healthy political engagement between two National Political Parties that present alternative choices to our people. Peaceful change of power is a wind that is blowing across the globe and all over Africa now. Apart from France and Italy in the advanced democracies, we have here in West Africa — ECOWAS region — examples in Ghana, Sierra Leone and Senegal where the opposition has successfully replaced sitting governments through peaceful elections. It seems to me that Nigeria is yearning now for a peaceful democratic change! While commending INEC for their recent welcome burst of courage to ignore the machinations of our opponent and do, not only what is right but what accords with the overwhelming desire of the Nigerian people to register the APC, the task before INEC is still enormous. They have to deliver free and fair general elections in 2015. We must move away now permanently from the aberration of 2007 elections. Accordingly, Prof. Atahiru Jega must ensure that INEC personnel, from top to bottom, is urgently overhauled and that biometrics, partially introduced in 2011, is fully implemented in 2015. • Chief Ikimi is a member of the Interim National Leadership of the APC.


11

THE GUARDIAN, Wednesday, August 7, 2013

TheMetroSection Drunken corporal opens fire at fast food joint By Odita Sunday DRUNKEN police corporal Mohammed Abubakar on Monday night opened fire in a public eatery, allegedly killing one person. Three other persons hit by Abubakar’s bullets were rushed with severe injuries to the Accident and Emergency Ward of the Lagos University Teaching Hospital (LUTH), Idi-Araba, yesterday night. The trio were said to be in stable condition, while the fourth person died on arrival at the LUTH. The victims, three men and a pregnant woman were allegedly shot by Corporal Abubakar from MOPOL 17, Akure, Ondo state in Diamond Estate, Festac Town, following a disagreement over a matter. It was gathered that the police corporal, who was suspected to be drunk at the time of the incident, shot the four victims. The Guardian learnt that the disagreement occurred that night at the fast food joint where they sell mainly noodles. The angry corporal opened fire on the victims and took to his heels immediately. The policeman who is now at large is not attached to the Lagos Police Command. He was said to be on an unofficial visit to a company in Diamond Estate, Festac Town. Meanwhile, when The Guardian visited the Accident and Emergency Unit of LUTH, experts who assured that they would survive the gun wounds were attending to the three surviving victims. The consultants regretted the death of one of the victims, blaming his demise on the bullet wound and the late arrival of the patient to the hospital. A consultant who spoke with newsmen

A

• One feared killed, others hospitalized

Manko on the condition of anonymity disclosed that of the three surviving patients, the two men would go for surgery because of the nature of wounds sustained from the gunfire and also to retrieve bullets pellets from their bodies. “The pregnant woman who appears to be a bit more lucky will not need surgery, she will undergo intensive and general care and be discharged. One of the men

was shot in the eye, Ophthalmologists are working hard to ensure the wound does not degenerate; he will be wheeled into the theatre for surgery. “The second man was shot in the thigh, he will also undergo surgery, apart from the damage done on the site of the wound, there are indications that bullet pellets lodged in the muscles need to be retrieved,” he said.

Confirming the emergency, Public Relations Officer (PRO), LUTH, Mrs. Hope Nwawolo, said the three surviving victims are in stable condition and are responding to treatment. “The hospital has drafted a team of experts to ensure that they are well taken care of medically”, she said. When contacted, the Lagos State Commissioner of Police (CP), Alhaji Umar Manko confirmed that a police corporal from MOPOL 17, Akure, Ondo State was responsible for the shooting. “The corporal is not from the Lagos State Police Command. He is from MOPOL 17, Akure. He was attached to a company in Festac town, but I wonder what a mobile police man from Akure is doing in Lagos,” he querried. The CP said he has asked the Area Commander for Feastac area, Mr. Dan Okoro, an Assistant Commissioner of Police to contact his Squadron Commander to explain what the policeman from his unit was doing in that company at that time. Manko disclosed that the command has declared a manhunt for the corporal who took to his heels after committing the act. Another eyewitness told The Guardian that the corporal went to the fast food vendor to eat noddles when quarrel broke out between him and other customers. The source said in the process, he fired sporadically and took to his heels. “The policeman would have been lynched by the angry mob, but they were afraid to go after him as he was fully armed,” the eyewitness said.

In Adamawa, father beheads five-year-old son for N1m HE Adamawa Police Command yesterday confirmed the arrest of a middle-aged man in Ganji Village of Gombi Local Government Area of Adamawa, for allegedly beheading his five-year-old biological son. According to the News Agency of Nigeria, (NAN) arrested along with the suspect was a village head alleged to have requested for a human head at a fee of N1 million. Parading the suspects before newsmen in Yola, the Command’s spokesman, Muhammed Ibrahim, a Deputy Superintendent said that the killing occurred on July 24 2013 in Ganji. According to the Police, Alti Alhaji, father of the first suspect, reported to the Gombi Police Divisional Headquarters that the suspect took his son (Alhaji’s grandson), to a bush but did not return with the boy. The spokesman said when Alhaji asked the suspect where he left his grandson he replied that the deceased was on his way home. “After a while, the grandfather and some members of the family went to the bush to find out what exactly happened. “It was after searching the nearby bush that they discovered the headless body of the boy, dumped in the bush. “When interrogated, he confessed and pointed at a village head as the one who directed him to bring a

T

fresh human head, at a cost of one million naira,” Ibrahim further revealed. He said the two suspects were under police custody for further investigation. Answering questions, the first suspect alleged that the district head of a village directed him to bring a fresh human skull. He said the district head promised to give him one million naira if he delivered. When asked why he chose to sacrifice his biological son, he replied that when the village head gave him

the order, he lost his mind. Also answering questions from newsmen, the village head in question, aged 63, denied the allegation, insisting that he had no business with the first suspect, whom he said, was not his ‘age mate’. “ I didn’t direct him to commit such ugly act. In fact, I was shocked when he pointed at me, that I directed him to commit the crime,” he said.

Community threatens to sue PHCN over incessant blackFrom Hendrix Oliomogbe, Asaba GGRIEVED indigenes of the sleepy town of Ogwashi Uku, headquarters of Aniocha South Local Council of Delta State, hometown of the Minister of Finance and the Coordinating Minister of the Economy, Dr. Ngozi OkonjoIweala, have threatened to sue the Power Holding Company of Nigeria (PHCN) over incessant blackout. The citizens, under the aegis of Beacon Club, said the neglect became worse last year when the town did not receive power for up

A

to 10 hours throughout the year. Chairman of the club, Dr. Joseph A. Ikem, who spoke with reporters at Oghwashi Uku on Monday evening, complained that since the beginning of the year, there have been sporadic flashes usually not lasting more than 10 minutes in some parts of the town, lamenting that the situation has become so bad that in the past four months, there have been no flashes at all. Ikem defended the decision to sue to the power authority saying that the officials routinely collect monies for estimated bills for elec-

tricity not supplied . According to him, it was unfortunate that power supply in the area had gone down beyond redemption, stressing that economic activities in the community had totally crumbled while students of the Delta State Polytechnic are worst hit as they now resort to the use of candles, torches and generating sets. He disclosed that the PHCN manager was summoned in 2010 to explain the outage but despite the efforts of the traditional ruler of the town Obi (Prof) Chukwuma Okonjo, the situation had not

At Paul Oloko’s Burial

Briefs Okojie for burial August 16 HE death has occurred of T Engr. Ferdinand Okojie, aged 41. He died last Saturday, August 3. According to a statement signed by Eromosele Chris Okojie and his friends, his body would depart Benin mortuary to his home at Uromi, Esan North East local government area, in Edo State for burial on August 16. He is survived by a son, brothers, sisters and mother.

Okojie

NLS 2003 to mark 10th anniversary HE Nigeria Law School T Class of 2003 will celebrate its ten years graduation anniversary on August 27, 2013, during the Nigerian Bar Association (NBA) conference in Calabar. According to the secretary of the Anniversary Planning Committee, who is also the Public Relations Officer of the NBA, Salim .O. Ibrahim, the event will be marked with a lunch at Dannic Hotels, Calabar.

Good News Baptist Association holds fellowship HE Good News Baptist AsT sociation will hold her third quarter fellowship at the Triumphant Baptist Church, 19, Olufemi Ojo Street, Akowonjo, Lagos, on Friday, August 9 and Saturday, August 10. The moderator of the Association, Rev. Titi Ajadi, said the theme of the fellowship is: “The Devil’s snare and youths. The theme, according to him, is chosen to sensitise youths on pitfalls to avoid in their daily living. The Assistant Moderator, Rev. Olajide Oke, said youths, as leaders of tomorrow, need to be immersed properly in scriptural things to succeed in life. Speakers at the forum are Rev. David Korede, Rev. Timothy Tijani and Bro. Femi Adediran.

Delta Peers Club meets on Sunday ELTA Peers Club (DPC), D Lagos, will meet at Francis Akpaka’s No. 17, Okun-

Son of the deceased, Stephen Oloko (left) performing the dust-to-dust rite, while being assisted by Oloko’s elder brother... on Monday.

Wife of late Senior Photo Journalist of The Guardian, Mrs. Grace Oloko (second left), flanked by family memPHOTOS: CHARLES OKOLO bers, weeps as her husband is laid to rest on Monday.

mopo Road, Wadbash Bus Stop, off Ajah-Epe Expressway, on Sunday, at 3.00 p.m. In case of difficulty, call 08034022415.


12

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

13


14

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

15

Interview Corruption, absence of political will, retard national growth, says Kaigama Bobboi Kaigama is the new President Trade Union Congress (TUC) after winning a keenly contested election at the labour center’s delegates conference in Abuja. In this interview with DELE FANIMO, the President who is also the helmsman at the Association of Senior Civil Servant of Nigeria, bares his mind on natural issues and what he intend to do for his members in the next three years. Among other issues... Excerpts. Congratulations on your election as TUC President. What is your agenda for the labour centre? ELL, to God be the glory. We promised fellow delegates that we want to, first and foremost, strengthen the national secretariat and embark on the training of staff to make them better workers who can meet international standards. We also want to make very strong presence in Abuja. By God’s grace, within the next few months we should have very strong secretariat in Abuja. The transport policy of my immediate predecessor was a laudable project. We intend to sustain it and if possible extend it to other parts of the country soon. We also intend to provide housing for our teeming members, particularly those in the urban centres and state capitals. You are aware that landlords have exploited them over the years. We are collaborating with national and international development partners to ensure that within the next one year we start delivering on our promises. These are very beautiful projects. How do you intend to raise funds, given your limited resources. We have international development partners who intend to bring their resources for the development of this vital sector. – We have signed memorandum of understanding to this effect and very soon, you will begin to see the result. But there is this other option which, after fighting for a very long time, we have been able to resolve. Our member have just being contributing to the National Housing Fund without any form of representation on the board of Federal Mortgage Bank. After meeting with the government, we have come to understand ourselves. Now NLC and TUC are on the board of the bank. What is your take on the new visa bond for Nigerians travelling to United Kingdom? It is a diplomatic issue. I expect our government to stand very strongly against this law, because it is discriminatory. How many Nigerians out there can afford three thousand pounds? I strongly belief that if we keep hammering on government to use every avenue open to it to oppose this. Nigeria is a commonwealth nation and we are supposed to have a kind of strong relationship with Britain. So, it is a very bad policy. We strongly believe that government should resist it and make sure that it is reversed. The perception in the public domain is that the powers of the labour unions have reduced drastically. How true is this and what are you doing to restore hope? Yes, one aspect of confident rebuilding is to ensure that issues that come to the front burner are treated with dispatch. For now, what we have to do is to protect the welfare of our members and the general public. We are going to ensure that Nigerian workers who are the wealth creators are not shortchanged in the scheme of things. We must have a fair deal. Now, that also brings me to the issue of your background. There is this opinion that because you are a civil servant, you may not be able to look the government in face at critical moment. Is this true? That is the mistake they are making. I am a state government worker and because of my activism I had issues with my governor in

They should know and be willing to respect our immigration laws, particularly on expatriate quota. They should know that they cannot bring their cooks, gardeners and stewards here in the name of being expatriates. I am assuring you that allowing China into our economy without checks, they will come with their cooks and their gardeners. So, you can imagine the local content is not there. These are the issues the industrial and the service sectors are agitated about. Yes, they can come with their technicians and the expertise we don’t have in Nigeria, but not cooks and drivers. We cannot create labour for the Chinese at the expense of our teeming

W

Kaigama Taraba State. Apart from Nasarawa State, there is no state in the north paying up to what my state is paying. That is courtesy myself and the state TUC under my leadership. We will always protect our member’s interest. But that is not to say that when government has superior point, we will not bow to such. This is not an era of table banging. We will always put our cards on the table and open our minds to other’s views. Remember that I have been the chairman of Association of Senior Civil Servants in Taraba State, Chairman of Trade Union Congress in Taraba State before I moved on to become the vice president of the association and the president of the association. Now, I am the President of TUC. And it has been a familiar terrain. I have never disappointed at every stage. What do you think is the major problem we have in this country? The three major problems are corruption, lack of patriotism and political will on the part of the leadership. If we can address corruption, I am assuring you, Nigerian masses are very good people. Lead by example, you will have no problem with them. If they see you as corrupt, they see people surrounding you as corrupt, obviously you should expect a kind of discomfort from there. Two, the issue of patriotism in this country is something else. Go to other countries you will see how people fear and respect their national flag. When they sing their national anthem, you will see how alert they are. Nowadays quite a

few Nigerians can sing the national anthem. So, nobody is bothered about nationalism. Until we cultivate the idea of nationalism in this country, we are still going to be in a fix for a long time. Again, the political class who are in leadership position have all the resources, they have all the institutions, they have all the capacity to fix Nigeria, but unfortunately, they don’t have political will to put things in proper perspective. Look at South Africa, look at other African countries that are coming behind us, they are coming up fast because they are building their institutions and deepening democracy. They have respect for their political parties, they have respect for their institutions, they have respect for their judiciary. So, if these arms are working, the rule of law and justice will take root. If you don’t take these things in to practice, we may not get it right. What is your position on the current crisis in Rivers State? Nobody can be happy with what that is happening in Rivers state. What is happening in Rivers is also happening across parties at the national level and the states. What we are saying is that when people are in the same political party, it is expected that whatever happens should be settled among themselves. Whatever misunderstanding should be resolved within the framework of the party. This tendency of divide and rule should be jettisoned The crisis that is happening in Rivers State is of PDP, we expect that PDP should take a stand and reconcile the feuding parties, because they are mem-

bers of the same party, because anything that affects PDP now is like affecting almost every Nigerian. It is advised that PDP should better take care of its problems so it will become an albatross on democracy. Bye and large, we want progress for this country, we want development for Nigeria, so everything that we need to develop this country and ensure stability must be put in place. People in power should ensure that the security and the enabling environment for our economy to strive should be put in place. Are you satisfied with the state of worker’s welfare, particularly on minimum wage? So far, I will say so fair, because we are still moving on. Like our slogan that says aluta continua At a time in this country we agitated for N50,000, but we got N18,000, that means we are left with N32,000. We want a situation where, like other developed nations, wage increase is automatically tied to inflationary trends. Until then, we will not rest on our oars. Are you comfortable with our new romance with China? What are you doing to check abuses that may arise when the Chinese finally arrive the country? China is coming with the stick and the carrot, unlike other developed world that came in search of our natural resources which they plundered for centuries. China is coming to try to be partner in the process of development and that is why they came with their money and invest in those countries. The only problem is that being what we are, can we optimize the opportunity? China has its product everywhere in the world according to global standards, but being what we are, they will give us what we want irrespective of the global standard Actually Nigeria and some of these Africa countries, I think Nigeria in particular, has become a dumping ground for sub standard Chinese products. So, one area we need to work on, is this issue of making them conform to international best practices. Another thing that should be of concern is labour content of China coming to Nigeria. They should know and be willing to respect our immigration laws, particularly on expatriate quota. They should know that they cannot bring their cooks, gardeners and stewards here in the name of being expatriates. I am assuring you that allowing China into our economy without checks, they will come with their cooks and their gardeners. So, you can imagine the local content is not there. These are the issues the industrial and the service sectors are agitated about. Yes, they can come with their technicians and the expertise we don’t have in Nigeria, but not cooks and drivers. We cannot create labour for the Chinese at the expense of our teeming unemployed graduates.


TheGuardian

16 | THE GUARDIAN, Wednesday, August 7, 2013

Conscience Nurtured by Truth

FOUNDER: ALEX U. IBRU (1945 – 2011) Conscience is an open wound; only truth can heal it. Uthman dan Fodio 1754-1816

Editorial Mugabe and Zimbabwe’s future HE presidential and parliamentary elections in Zimbabwe have been won and T lost with incumbent president, Robert Gabriel Mugabe taking 61.09 per cent of the presidential votes while his leading challenger and partner in the outgoing government, Richard Morgan Tsvangirai, scored 33.94 per cent. Mugabe and his Zimbabwe African National Union-Patriotic Front, ZANU-PF’s hold on the reins was further strengthened with 160, two-third majority seats in the incoming parliament. Tsvangirai’s Movement for Democratic Change won only 49 seats. That Mr. Mugabe gets another six-year term, extending his 33-year rule over Zimbabwe is, however, not an achievement worthy of celebration by him or by any African. If anything, it is an embarrassing victory, devoid of honour or any virtue. Free and fair or not, in wining this election, Mugabe actually emerges a loser. At 89 years of age, this president should have long ago abandoned the hustling, risen above partisan politics and become a father of a nation he fought gallantly and tenaciously to free from British colonialism and, in tricky times, be available to be consulted for his wisdom and experience. Alas, in Africa, only Nelson Mandela and a handful of leaders have had sufficient self-control and grace to settle for such pedestal. In a genuine democracy or even any context, there is something absurd in one man ruling a country for three decades and counting. It just cannot be that there are no other capable hands to continue wherever he stops! Certainly, good governance can only be enhanced where fresh ideas from other patriots are allowed. It is a blemish on the leadership quality of any man who fails to nurture new leaders to succeed him. Mugabe’s continued stay in power therefore subtracts hugely from his standing as a true leader. Besides, African rulers’ long stay in office have often denied their nations the experience of peaceful change of leadership and put the countries at risk of disintegration when they eventually stepped out or forced out of the scene. The elections in Zimbabwe were certainly far from perfect but they have, by and large, been tolerably successful. International bodies – the African Union, the South African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), as well as South Africa and China, which all put observers on the ground to monitor the process have adjudged it fair enough to be valid and accepted as a free expression of the choice of a majority of the Zimbabwe people. In what was obviously a straight fight between the two parties locked in a rancorous coalition government since 2008, fears had been expressed in some quarters that the elections might go wrong. It is gratifying therefore that doomsayers have been proven wrong and for this the people of Zimbabwe deserve commendation. It needs be recalled that on the eve of the elections, incumbent president, Mr. Robert Mugabe, had stated that whoever lost was bound to surrender to the winner. This was a less belligerent and therefore more re-assuring attitude than obtained before. Even before it took off, Tsvangirai had cause to complain about a number of things – the unilateral decision of the president to set a date for it, while there remained, in his view, outstanding key issues yet to be settled between their parties. These included voters’ registration procedure, reform of the public sector-owned mass media, and commitment of the security services to abiding by the provisions of the recently promulgated constitution. So, his party had doubted the credibility of the election, and, as soon as results trickled

LETTER

A final word on child marriage According to the respectSedIR: Islamic scholar, Professor

Ishaq Akintola, there is “no age restriction in Islamic marriage”. He may well be right and I honestly believe that Islam, like Christianity, is a humane and compassionate faith, which seeks to protect the weak and guide its adherents on the path of righteousness and light. I must however point out that Nigeria is not a Muslim or indeed a Christian state. She is a secular state and is governed by secular laws. Religious laws have no place in our land or constitution. Our constitution is a secular document which specifically says that the state shall not adopt any religion. This must remain so if we do not want a divided country and if we do not want contin-

ued controversy, strife and possibly even a fully blown religious conflagration and conflict. We should all keep our religious sensitivities out of certain matters if we want continued peace. Paedophilia, child sex, child slavery, child rape and child marriage cannot be justified under any circumstances in any civilised country. It is not a matter of religion. It is a matter of human rights, civil liberties and basic morality. There is nothing more repugnant to the natural mind and wholesome soul than the prospect of a fully-grown man mounting, defiling and having carnal knowledge of a child that is between the ages of 6 and 18. Every child, whether she be a Christian, a Muslim, a

pagan, an atheist or an agnostic has the right to be fully protected by the state and by the laws of our land from sexual predators, sexual deviants, statutory rapists, unrepentant perverts and child molesters. That much we ought to be able to achieve and we ought to insist on. We are meant to protect our children and not bed them. Like I said earlier on elsewhere in this debate, even animals don’t sleep with their own infants. Some may hate me for these words today but I speak nothing but the truth and tomorrow people will thank me for them. This is my final contribution to this heated debate. Outside of this I have nothing more to say on this vexed and contentious issue. Shalom. • Femi Fani-Kayode, Lagos.

in, impugned the whole process, describing it as ‘a sham’. Now concluded, Tsvangirai considers the election a ‘fraudulent and stolen election (that) has plunged Zimbabwe into a constitutional, political and economic crisis’. The U.S. Secretary of State, John Kerry has also cited ‘substantial irregularities’ to term the elections ‘deeply flawed’. Britain expressed ‘grave concern over the conduct…’ These and similar negative views contrast markedly with the view of African Union head of observers, Olusegun Obasanjo, who declared it ‘free, honest, and credible’ and added that the ‘little incidents here and there (would not) change the outcome’. Now that Mugabe has won, the peace and prosperity of Zimbabwe should be of paramount importance to the leaders and anybody who loves the country. Opposition leader Tsvangirai claims he has enough evidence to upturn the results and will seek judicial redress. This is acceptable. Yet, Zimbabwe’s interest must come first. Unless tolerance and patriotism prevail, Zimbabweans would be the loser as the country could be plunged into further crisis and denied broad international confidence with the attendant economic and political benefits. For a leader who has made so much sacrifice, in prison, in guerrilla wars, and who has also, sometimes deservedly, been demonised by the international community, this is Mugabe’s last chance to be a statesman and leave an appropriate legacy of peace and prosperity for Zimbabwe. Hence, he should not only form an all-inclusive government of all Zimbabweans for the whole of Zimbabwe, he should begin the process of calling time on his reign. Mugabe, it must be admitted, understands the issues in his country only too well, even if his response or method is at times questionable. For example, years of chicanery over land redistribution forced him to resort to drastic, though sometimes self-serving measures to satisfy the yearnings of his compatriots. The current indigenisation and economic empowerment programme are therefore in principle justified to redress intolerable imbalances in the socio-economic structure of Zimbabwe. But he does not have a monopoly of wisdom and should have yielded the seat a long time ago. A new man in the saddle could have a better implementation procedure that will generate less hostile reactions. Now that Mugabe has been re-elected, it would be an act of statesmanship for him not to even cling to power till the next election. Irrespective of his storied life and achievements, it holds true that success without a successor is failure. Having personalised the country so far, Mugabe should ponder the future of Zimbabwe and do right by his people. It is time to begin the process of handing over to a new generation.


THE GUARDIAN, Wednesday, August 7, 2013

17

Business IndustryWatch P47

CompuLife P36

Smuggling in Nigeria: An untamable beast?

Tablets replacing print Bible at Churches

NNPC expects crude oil production to hit 2.50mbpd soon By Collins Olayinka (Abuja) and Roseline Okere (Lagos) HE Nigerian National T Petroleum Corporation (NNPC),expects the country’s crude oil production to hit 2.50 million barrels per day (mbpd) with the completion of Nembe Creek Trunk Line (NCTL), in the next few weeks. Besides, the corporation has faulted by Royal Dutch Shell’s claims that it lost $700 million in its global earnings in the second quarter of 2013 due to operational challenges in Nigeria. The Acting Group General Manager, Group Public Affairs Division of the Corporation, Tumini Green, who made this disclosure yesterday in a statement, said that in a fortnight, repair works on the Nembe Creek Trunk Line (NCTL), which has a daily capacity of 150,000bpd, is expected to be completed. According to her, on completion, daily average crude oil production is expected to increase to 2.50Mbpd, which will exceed the national daily target of 2.48mbpd. She stated: “Our expectation is to increase production from the 2.48 mbpd to 2.55mbpd (both crude and condensate) for the rest of the year. We have the capacity and potential to maintain production above 2.55mbpd in the country. All that is required is to continue the fight against pipeline vandalism and crude oil theft to achieve this target. This will increase our 2013 average production to about 2.34mbpd if the current fight against pipeline vandalism and crude oil theft is sustained. Green noted that the loss claimed by Shell, were not localised, to Nigeria as reported by the media. The Chief Executive Officer of Shell, Peter Voser, had said that higher costs, exploration charges, adverse currency exchange rate effects and challenges in Nigeria have hit the company’s bottom line resulting to a loss of about $700 million. It was also reported that Shell planned to relinquish four more oil blocks in the country due to the harsh operating environment in the oil and gas sector. Green said in the statement that the divestment by some multinational oil firms operating in the Niger Delta was not as a result of harsh operating environment and absence of good leadership in the oil industry. According to her, mergers, acquisition and divestments is a global portfolio manage-

•Faults Shell’s claim of revenue loss due to Nigeria’s operational challenges in North America has also •NNPC silent over NEITI’s report proven not to be good investments and as such, pro•PPPRA is clean, says Stanley ment strategy employed mostly by big corporations to restructure and reposition companies for better and efficient revenue growth and competition. She therefore wondered why anybody could canvass such position when the multinational oil companies them-

selves, especially Shell, have repeatedly stated that part of the reasons for divestment of assets was a deliberate measure to encourage and promote indigenous participation in the upstream oil and gas industry. Green added that acquisition of shale oil and gas assets

grammed for divestment to minimise risk. She hinted: “In order to further buttress the global challenges, Shell’s current tight oil output is 50,000 bpd as against an estimated 250,000bpd in the United States. “Against this backdrop, it is misleading to relate the

strategic divestments as due to the absence of leadership in the oil industry. These divestments have in fact increased indigenous participation which will in turn create new job opportunities, reduce capital flight, encourage capacity building and support gas-based industrialization aspirations”. She reiterated the corporation’s determination to work with all stakeholders in the oil and gas industry to ensure

CONTINUED ON PAGE 18

Executive Vice President Gas Turbine Power Plant solutions, Siemens AG, Lothar Balling (left); Chairman, Supertek and Chairman, Independent Power Producers Association of Nigeria, Prof. Jerry Gana; Managing Director/ Chief Executive Officer, Siemens Limited, Michael Lakota; Minister of Power, Prof. Chinedu Nebo; and Country Director, Azura Power, Nicholas Abolo-Tedi, at a power generation forum jointly organized by the Ministry of Power and Siemens, in Abuja.

‘Africa’s business confidence rising’ FRICA has emerged the A most business-confident region in the world, as hopes of global economic recovery rises, according to new findings from the Global Economic Conditions Survey (GECS). The survey, put together by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), is the largest quarterly economic survey of accountants in the world. The survey, which also aggregates the views of ACCA and IMA finance professionals working at the coal face of businesses, noted that in the second quarter of the year, the Sub-Saharan African region had managed inflation and volatile flows of funds that challenged policymakers in late 2012. It explained that though 32 per cent of respondents from Africa’s business community expressed pessimism, it was an improvement from the 40 per cent recorded earlier this year, while 41 per cent was confident, up by seven percentage points from the previous quarter. Also, perceptions of the economic recovery in general were up, with 60 per cent reporting an optimistic outlook, against 51 per cent earlier this year. Senior Economic Analyst at ACCA and editor of the GEC Survey, Emmanouil Schizas, said: “Globally, this is not a recovery for everyone, but for significant parts of the world, it looks like the real thing. If

CONTINUED ON PAGE 18


THE GUARDIAN, Wednesday, August 7, 2013

18 BUSINESS

NAHCO workers down tools over sack of 30 workers, gratuity By Wole Shadare ORKERS of the Nigeria Aviation Handling Company Plc, yesterday downed tools to protest the sack of 30 workers and other alleged anti-worker policy of the firm. As early as 11am, the workers, numbering over 50, with their unions, disrupted activities at the company's head office at the Lagos airport. Beside the protest over the sack of 30 of its workers, the workers' unionsthe National Union of Air Transport Employees (NUATE) and the Air Transport Senior StaffStaff

W

Association of Nigeria (ATSSAN), called for salary review of the employees, decried what they termed selective promotion and unfair gratuity payment administration. The crisis forced the management to hold an emergency meeting with the unions, which lasted for about two hours. At the meeting were the Acting Managing Director of NAHCO, Nobert Bieldman; General Manager, Human Resources and O r g a n i s a t i o n a l Development, Umar Birmah; ATTSAN's National President, Benjamin Okewu; his scribe, Abiola Olayinka, among oth-

ers. Bieldman told reporters that few months ago, the unions gave the firm issues they wanted them to address in terms of workers’ welfare, saying three of the five issues had been resolved.

He denied that 30 workers were relieved of their jobs as insinuated by the workers. Rather, he said they were hired to do certain jobs for a specified period of time when the job was expected to have completed.

Consequently, he said the company only yesterday conducted tests for the disengaged workers with a view to giving them permanent employment. “For our promotion exercise, we have equal distribu-

tion of all the ethnic groups in this company. I don't know where this is coming from. "We did a promotion exercise recently and we found out that our revenue cannot cope with mass promotion. We are a public company.”

NNPC faults Shell’s claim of earnings’ loss due to Nigeria’s operational challenges CONTINUED FROM PAGE 17 effective management of the nation’s vast hydrocarbon resource base. Green noted that efforts by Federal Government through the Minister of Petroleum Resources, Diezani AlisonMadueke, to stem the tide of oil theft and pipeline vandalism is yielding positive results contrary to insinuation in some section of the media that the oil and gas industry is headed for extinction as a result of crude oil theft. She stated that the combined efforts by the Petroleum Minister, the NNPC and the International Oil Companies to stem the menace have resulted in a significant drop in the level of pipeline vandalism and crude oil theft resulting in a corresponding increase in daily crude oil production. “Suffice it to say, some vandalized pipelines and flow stations have been repaired and re-opened such that average current national daily production stands at 2.4mbpd compared to the average year to date figure of 2.13Mbopd as at June 2013. Meanwhile, NNPC has hint-

ed that it would not react to allegations contained in the recent report by the Nigerian Extractive Industries Transparency Initiative (NEITI), against it, over certain alleged operational infractions, “until the report has been fully studied”. Reacting to the report, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, who became the first GMP of NNPC to attend the presentation of NEITI audit report, said the Corporation is still studying the report. He said: “We are being asked to produce financial result for the country in an environment that is not only financially hostile but also physically hostile to the operators.” Also the Petroleum Products Pricing Regulatory Agency (PPPRA), which was directed to refund N4.423 billion ‘overrecovery’ to the Federation account by the audit report, said the finding was misplaced. The Executive Secretary of PPPRA, Reginald Stanley, insisted that the agency cannot be directed to refund money to government saying

payment for subsidy has shifted from it to the Ministry of Finance following the introduction of the Sovereign Debt Statement (SDS) and the Sovereign Debt Note (SDN) in 2009. Meanwhile, The Guardian gathered in Abuja yesterday that while the Special Anti Fraud Unit of the Nigeria Police had cleared all the marketing firms that were hitherto cleared of any wrongdoing, the Economic and Financial Crimes Commission (EFCC) is still probing some of the alleged indicted marketers. It was also learnt that some of the marketers that were yet to be cleared by the anti-graft agency were licensed by the PPPRA to import petroleum products. Reacting to the involvement of the perceived indicted marketers in the third quarter imports, a source said: “The PPPRA believes it has to be fair to all parties. The Agency cannot just do away with these marketers who are yet to be cleared by the EFCC though they have been cleared by the Special fraud anti fraud unit of the Police Force. Their non-involvement

Survey rates Africa’s business confidence high CONTINUED FROM PAGE 17 this newfound dynamism persists beyond a couple of quarters, it could build its own momentum independent of monetary policy. And looking at Africa, it has reclaimed its place as the most confident of the major world economic regions.

“Despite continued positive news about the global and national economies, the GECS business confidence index has only inched in the right direction. After a surge in business confidence in first quarter that was perhaps a little premature, confidence levels are now in line with fundamentals. “What is encouraging is that the marginal improvement in global business dynamism in early 2013 has now accelerated across all measures of investment, orders and employment. Employment in particular is recovering

quickly and is now stronger than at any point in the last two years.” Director, Sub Saharan Africa, ACCA and Africa spokesperson, Jamil Ampomah, said: “While this is a massive continent, GECS’ findings resonate across the whole of Africa and the worst challenges of late 2012 appeared to have been overcome. “Investment in capital and people among African businesses remained stable over the first half of the year. Demand and cash flow pressures eased significantly in

is capable of distorting the supply chain.” The source added that no marketer would be insulated from appropriate sanction if eventually convicted by the EFCC. Stanley explained that the N4.423 billion ‘over-recovery’ that the PPPRA was asked to remit, was not correct, noting that only the NNPC still had an outstanding payment of about N3.98 billion to be paid into CBN’s account. His explanation: “The total over-recovery advised for the nine marketers in 2008-2009 amounted to N14, 073,783,779.74, the total amount paid to the account with CBN was N6,966,185,316.65 with the sum of N3,126,587,419.98 netoff by the Federal Ministry of Finance.” Stanley explained that there was no discrepancy in PPPRA’s records and the CBN where the PSF account was domiciled. The PPPRA boss wondered why NEITI would want the findings of a report, the Chairman of NEITI, Ledum Mitee, said majorly relied on secondary sources as credible enough to serve as reference

the second quarter of 2013, after rising unevenly for about a year. “Access to business and investment opportunities, as well as growth capital improved both year-o- year and quarter-on-quarter, while the authorities in Africa have got inflation and capital flows in and out of the region under more control. “The finance teams in Africa’s businesses are clearly seeing a more positive future for their own organisations and particularly for the wider economy.”


THE GUARDIAN, Wednesday, August 7, 2013

19


20

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

21


22

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

ForexWatch FXTM FINANCIAL WEEKLY DIGEST 29th July - 4th August, 2013

23

in association with


24

Insurance&You

THE GUARDIAN, Wednesday, August 7, 2013 Published in association with


THE GUARDIAN, Wednesday, August 7, 2013

25


26

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

27


28

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

| 29

MoneyWatch Economic diversification through agric: Matters arising By Chijioke Nelson HE country’s sojourn through T “claims and realities” on ground has made almost every Nigerian to adopt the “Seeing is believing” attitude and at worst, not believing anything at all. The campaign for the diversification of the nation’s economy through agriculture has been ongoing, with great momentum. Still, there seem to be razzmatazz and intrigues playing. We are talking about the claims of Nigeria’s increased potentials in agriculture, the proposed value chain development, ensuing job creation and rising level of funding by banks. We are still Nigerians, so let us ask: “Are they really so?” No doubt, proper development of the agriculture sector, which involves attracting necessary funding could be a catalyst in the nation’s match towards economic diversification and growth. In the recent times, the minister overseeing the sector has campaigned vigorously and convincingly, mostly the “Cassava Bread”, which is yet to materialise to the tune of the publicity. According to Lizzy Igbine of the Nigerian Women Agro Allied Farmers Association, “we in agriculture business know that there are issues to be adressed to attract youths and other investors into farming. It has continued to be a subsistence adventure and will continue until we address the issue of markets and marketing (demand and supply). Major casualties occur after the toiling and investments are applied. “Without a ready off-taker, the farmer looses 60 per cent of goods produced. This does encourage new comers because the present practitioners are tagged poor farmers without analysis of what type of poverty they suffer. Fortunately, these are receiving attention at the Federal Ministry of Agriculture and rural development. There is no end to positive interventions and I look forward to cooperation and partnerships in advocating and lobbying for proper investments in Agriculture.” From the apex bank’s record, credit to the agricultural sector almost doubled in 2012 compared to the previous year as the Central Bank of Nigeria and the Bankers’ Committee established risk sharing mechanisms to reduce the risks banks face when lending to farmers, hence the banking industry has built incentives across the agriculture value chain, which resulted in more banks lending to farmers as more agric businesses sought loans from banks. While we are casting aspersion over the positive record on paper, perhaps, in reality too, there should be a deliberate effort to ascertain that the “intended” are on the list. In 2012, according to data released by CBN recently, credit to the agric sector as a share of volume to the private sector rose to 3.7 percent from two percent it hovered in the past five-year period leading to 2011. This is quite commendable, at least for a start. Analysts too, have commended the performance by

Sanusi Nigerian banks as demonstrating their fate in the capacity of agriculture to transform the economy. That takes cognizance of the fact that the paltry agric credit pre-2012, was despite the economic importance of the sector and its historic contribution of over 40 percent of the nation’s Gross Domestic Product (GDP). For many years, crude oil has stood as major export earner for Nigeria even though it hasn’t been effective in creating employment opportunities for the West African nation’s over 160 million people with a ballooning youth population. With the credit trend emanating from the banks, Nigeria might be close to waging a better fight for its economic diversification objectives and look real to cut dependence on black gold. Speaking recently at the World Economic Forum on Africa, in Cape Town, Minister of Agriculture, Akinwumi Adesina, said Nigeria is positioning itself to become a key player in global food production, reflecting on the increased tempo in agric credit and the strength of a crop of farmers ready to jumpstart production. “We have 84 million hectares of land of which no more than 60 percent of it is cultivated. In terms of optimal cultivation, no more than10 per cent of it is in high quality seed, fertilisers, mechanisation and good irrigation. But we see beyond the gloomy picture, given our collective efforts. The country hopes that through the ongoing Agricultural Transformation Agenda and stakeholder support, it can create 3.5 million jobs and add 20 million tonnes to domestic food supply by 2015,’’ Adesina said. How really has the banks boosted

Ikeazor this dream of a nation? The Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi said recently in Lagos that for Nigeria to diversify its economy and achieve sustainable development, agriculture has to be given a pride of place as largest employer of labour. According to Sanusi, funding is important for the agric sector, but for that to be effective, the sector needs to be stripped off inherent risks that impair bank lending. Perhaps, this thinking by the apex bank chief explains why the regulator, in collaboration with the Bankers’ Committee established the Nigerian Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), which seeks to de-risk agriculture in Nigeria by ensuring that those in the business have access to loans on a concessionary basis. Through NIRSAL, the first impetus was raised as the N200 billion agriculture credit scheme by the central bank debuted. Later, the apex bank also launched the N600 billion NIRSAL funding programme meant to guarantee up to 75 percent of banks’ loans to various businesses in the agriculture value chain. Sources within the banks said the regulator plans to spend an estimated $500 million to create further incentives for the banks to sustain the flow of agric credit. Industry watchers said the manner NIRSAL was structured made it a winning formula from inception. The initiative, which is the brainchild of the apex bank, the Bankers’ Committee and the Federal Ministry of Agriculture and Rural Development, seeks to create incentives and catalyse processes to encourage the growth of formal

credit, direct and indirect, for the agriculture value chain, as a mechanism for driving wealth creation among participants. Already, CBN plans to spend an estimated $500 million to create further incentives for the banks to sustain the flow of agric credit, with plans of a risk-sharing facility of $300 million, planned to address banks’ perception of highrisks in the sector by sharing losses on agricultural loans. The bank also revealed that there is an insurance facility of $30 million intended to expand insurance products for agricultural lending from the current coverage to new products, such as weather index insurance, new variants of pest and disease insurance. Besides, there is also a technical assistance facility amounting to $60 million meant to equip banks to lend sustainably to agriculture, producers and use loans more effectively to and increase output of better quality, among others. The increase and improvement in the sector have been linked to the N200 billion agriculture credit scheme and N600 billion NIRSAL fund, with its accessibility through the new policy focused on increasing private sector participation, emphasis on the entire agriculture value chain, and using agriculture to boost employment, wealth creation and food security. Analysts have commended the performance by Nigerian banks as demonstrating their fate in the capacity of agriculture to transform the economy. CBN also explained that with the credit trend emanating from the banks, Nigeria might be close to winning its economic diversification objectives that will lead to less depend-

ence on oil. “The NIRSAL is one single programme that has brought banks back to their role of intermediation for national economic development. For the economy to be diversified and sustainable development achieved, agriculture has to be given a pride of place as largest employer of labour. “The funding is, therefore, important for the agric sector but for that to be effective the sector needs to be stripped off inherent risks that impair bank lending,” CBN said. Also, data obtained recently from the Bankers Committee’ showed that between July and November last year, the country’s lenders issued over N6 billion in credit guarantees to farmers. The showed that the loans came with the following broad parameters- Average loan guaranteed amounting to N397 million, with a range of N4 million to N1.5 billion and average duration of loans put at 285 days. “It is anticipated that under NIRSAL, collaboration between banks and counterparts will push loans under guarantee in excess of N20 billion by end of the first quarter of this year. The facts on ground indicate the target might have been exceeded,” CBN said. Noting that the efforts to de-risk the agric sector have attracted more investments to Nigeria just as multinational financial institutions are raising their agriculture portfolio in the country, it listed investments by the private sector recently to include PZ Cusson’s $56 million palm oil refinery joint venture with Wilmar International, Transcorp’s investment in a fruit concentrate plant and the Dangote Group’s planned $1.9 billion greenfield fertiliser plant, among others. The World Bank also recently announced that it would commit $1 billion to support agriculture in Nigeria, while the Bank of Agriculture has also stated that it will fund the sector to the tune of N25 billion over the next two years. Although Nigeria’s reform agenda for the agric sector still have significant milestones to cross, there is no doubt that going by the figures so far, progress has been made by financial system. From the historical perspective, in the 1960s, Nigeria was the biggest exporter of peanuts in the world and had 27 percent of the palm oil trade. Though the country still remains one of the world’s top cocoa growers, but production and bean quality have declined since their heyday in the 1970s. Shortly before now, while an elite allied to a series of military dictatorship grew rich on the spoils of the energy sector, millions of mostly subsistence farmers were given little or no help at all. The result is that Nigeria now occupies the world’s second largest importer of rice and the biggest buyer of U.S. wheat, while much of its own fertile land lies fallow. A booming population has sent its food import bill rocketing to around $11 billion a year - equivalent to more than a third of the federal budget.


THE GUARDIAN, Wednesday, August 7, 2013

30 MONEY WATCH

Pragmatic approach to learning essential for development, says Ademola Mrs. Oluwatoyin Ademola is the Market Head and Chief Business Development Officer of Association of Chartered Certified Accountants (ACCA) Nigeria. She has degrees in English and French, Masters degree in Management and an alumnus of Pan African University, with professional affiliations as member, Institute of Leadership and Management, Chartered Institute of Marketing and Chartered Institute of Management, all in United Kingdom. The human capital manager has over 12 years of proven history of success from a wide variety of performance oriented middle level to executive positions, with increasing responsibility culminating in her selection as head of ACCA’s Nigeria operations. She has facilitated several topics both locally and internationally. In this interview with CHIJIOKE NELSON, she spoke on the strategic positioning of ACCA and the need for pragmatic academic programme for the nation’s growth. OW would you describe your operational profile in Nigeria? Basically, ACCA has always been involved in Nigeria. A lot of our ACCA members are actually the founding fathers of the national accounting body. We have a number of past presidents of accounting bodies who are fellows of ACCA. Our entry in Nigeria was difficult at first because of issues of foreign exchange, which made membership subscription and student’s fees payment a challenge. The body revisited the issue again in 2002 and an office was opened in 2005/2006 and since then, we have been in operations. ACCA’s presence in Nigeria is the realisation of the fact that the country is a huge market, while the body has a lot to offer. Contrary to insinuations, we are not here to kill the profession or any other parallel body. We are here to develop finance capabilities and that is what we are in business to do. The profession does not have to be something for foreigners alone, but something that can be useful in Nigeria and on global scale. In driving that finance capability, you find out that we are dealing with key stakeholders like members, students, employers and learning providers, as well as the media. What makes career in finance and accounting with ACCA a unique one? It is a unique one because ACCA syllabus cuts across all sectors– manufacturing, corporate, public, telecommunications, oil and gas, banking and finance, among others. A student can come to ACCA and know that at the end he/she can work in whatever sector he/she finds himself/herself, rather than just streamlined. The truth is that at present, we have our footprints in every sector across the globe. The way our syllabus is structured, our graduate is qualified to take whatever challenge that comes across in the profession. In ACCA, we test and examine understanding and applications, not theory and answers, because we firmly believe that when you understand anything, no matter how the question is posed to you, the answer will be clear to you, since the process is well understood. So, if we say we have an ACCA member, we know the person can defend the name and add value to the organisation and the employer. This is why we are unique. Do you create opportunities for your member? Yes, the last recruitment fair is a testimony of our strategy to give our members an edge. Of course, we are not saying that we are going to provide employment for everyone, but we are going to do our own best, which we tied to our corporate social responsibility as our way of giving back to the society. The fair is going to be sustained yearly as we bring together key employers, global ones for that matter, to meet students for interaction and review their curriculum vitae. We also have ACCA career portal and basically

H

Ademola free for all our members-employers and students. Our employers go there and put free listing vacancies for what they have and our students and members go in there too to make choices or positions they want and uploading their curriculum vitae. So, that is our own way of contributing to the solution. Sometimes, we notice that some students even if they are talented, might not exactly meet with these employers’ requirements, because the employers see as many as 600 CVs per vacancy in a day and you can imagine how possible it would be to go through these without being tired. But then, if we say, finance students should go to ACCA career portal, then that becomes an edge to our students. We do a lot of mentoring session and employer forum basically to create an avenue to link the employer with the students or the job seekers. How do you get the employers to use the website? Like I said earlier, we have our key stakeholders across all sectors, so we have a number of employers that we work with and they are key employers in Nigeria, as well as globally. Also, because of the partnerships agreement we signed with them, the options include that we let them know what we are doing and what we want to do to ascertain their interest as well. For example, the last graduate recruitment fair we had, there were huge employers like Coca Cola, KPMG, EY, PriceWaterhouseCoopers, UBA, FirstBank, GTBank, GE, GSK and the list continues. This is because we have a work agreement and when we do such things they honour them, since they are also interested in recruiting talents too. What is ACCA’s disciplinary mechanism? At ACCA, we have course known as Ethics Module and no one becomes a member without passing through it and getting it right as well. The beauty of the module is that it doesn’t tell you whether you pass or not. As you are doing the module, part of which is done online, if you don’t answer the question ethically, which also comes in scenario places, you will not move ahead to the next module. So the module is compulsory as well as imbibing the study, because it is a test of one’s understanding of what is right and wrong and application of the study. We have offices all around the world- 170 countries, which help us to do a lot of monitoring, because

we also choose our employers, since we have partnership with many key employers. These employers on the other hand, are free to call the office whenever the need arises, especially when they feel that our member has done something on the contrary. The reports are immediately taken up because our brand is our name and our reputation, hence we cannot afford to bring it to disrepute. So, it’s on record that where our members have audited reports, it is factual and that is why we have been around for over 100 years. What is your view of the widely acclaimed graduates’ non-employability in Nigeria? I don’t totally agree with this sentiment. I think why we are having issues in Nigeria is the fact that some are better than others, as always been elsewhere. Yes, sometimes it takes talent and other times chance, but for me, one of the major reasons for many not being employed is the lack of professionalism. What comes first to a typical graduate? When some of them are in school, I noticed that a lot go to school and come out without education. So, there are many who are literate but not educated and a lot of people seem to make the same mistake of thinking that literacy means being educated. One is educated because the school process and procedures have passed through the person. So, when the person graduates, he/she acts like a professional, knowing that there are certain things that are not done in public, that when there is an interview, there is a way to dress and that when there is a meeting or appointment, one should be there on time. There are indeed, a number of graduates that are literate but not educated. Within this rank, how employable are they? Yet again, people of this rank are inhibited by attitude and it takes a learning spirit to cope. So, when you call them and say, this is how you do it not the other way, the ones with learning spirit pick it up fast. True, the average Nigerian student is very sharp and that is why when you take them out of their comfort zone, they excel. The example can be seen even in academic and sports. It’s just that some chose to play lazy. Should employers give them a chance? Yes, I think some employers use to say that they are not looking at the degree or at most, the literacy level and what they actually want is for a manifestation of learning spirit and value deliv-

In ACCA, we test and examine understanding and applications, not theory and answers, because we firmly believe that when you understand anything, no matter how the question is posed to you, the answer will be clear to you, since the process is well understood...There are many who are literate but not educated and a lot of people seem to make the same mistake of thinking that literacy means being educated.

ery, ability to work with a team and be responsible and accountable. When these cannot be traced in the graduate, then the person is thrown out completely. The case study is in the aviation industry, where sometimes, attitude is the most important thing. The logic is that attitude is intrinsic, it is a personality trait and almost impossible to influence, but workplace responsibility can be imbibed or influenced and that is possible even with a normal literate. Some graduates do not want to take a stage development, but want to make it at once. A youth corps member in one of my interview sessions said that he wanted to collect N5 million annually as salary, but the question is about the experience on ground to justify such demand? This can be an obstacle to securing the job. But this further raises questions about parental role from childhood. So, many values are gone and these values are in one way or the other linked to survival in the future. Some with degrees have thrown great shocks and surprises during interviews, leaving the interviewer with doubts as to whether the degree was actually earned. What opportunities are there with career in finance and accounting? There is no business that doesn’t need a book keeper or a finance person. Even the woman that sells boli on the road, might not need to hire external book keeper but she must have book keeping knowledge to be able to calculate her gain, otherwise losses will force her out of business. Indeed, almost everything we do requires book keeping and that is what career in finance and accounting offers. As a small business, I will always tell people, you might not hire a professional, but a knowledge of finance and accounting will save you the cost and help you grow your business. But I will also warn that people should not pretend to know what they don’t know. Some people complain of losses after many years of operations, but the truth is that they are not managing their books well. If one is not an accountant, one should not claim to be one, but should consult those who are. That is why it is a profession. I cannot claim to be a medical doctor when I am not, unless I have plans to cause a stair and disaster. People need to understand what a finance and accounting professional does. What is the role of accountants in the fight against corruption in the country? I think, gone are the days when accountants are seated in a cage at the back of the office. Those days, in my parent’s office, I remember that accountants are the last person in the office, not even with a word. I still think that for organisations to stop running into problems, the finance person has to be relocated to the “forefront,” to be there when decisions are being made. This will afford the person the opportunity to make input and perhaps, point out wrong ideas and decisions. The finance person has to be given a voice, at least, to relate decisions with tax laws and other financial framework. It is when the person has a strong voice that the company will not run into problem, because most of the processes– the operational cycle, accountability issues, preparation of financial statement, audit and controls are what the person does. The person should be able to add a voice to the strategy that the organisation is planning to take, whether it is organisational and/or corporate. Wherever the funding is involved, the finance person is involved. Really, companies get into trouble when the finance person, be it the chief financial officer or finance manager is sidelined. The voice I am advocating includes rank, so that they can have the authority to ask questions freely. Where the finance persons only receives orders to do anything from “the powers that be or ogas at the top”, then the person has no option than to do the bidding whether right or wrong. Finance and accounting is about reporting and one cannot report that which is not true, nor that which one thinks is true. It must be facts and figures. What about the acclaimed corruption at the public sector? It is a problem and sad event that Nigeria of today still has huge infrastructure issues. Of course, Nigeria is blessed compared to Asian countries. Our land is arable, but some countries eke out food from stones. We are blessed with oil and natural gas resources and other minerals, so it is actually a fundamental problem that we are still like this. Look at Dubai, created out of sand and almost non-existent 30 years ago. Today, everything is working there. I think it is even a sin in itself that we have not attained uninterrupted power supply in Nigeria today. So, many things are not in our favour, even though we are fundamentally blessed and all the credit goes to corruption.


31

THE GUARDIAN, Wednesday, August 7, 2013

In partnership with

TheGuardian Conscience, Nurtured by Truth

www.ngrguardiannews.com

POWER DEFICIT

An Encounter with Enron By Nasir Ahmad El-Rufai ne of my most memorable early experiences O in the Bureau of Public Enterprises, Nigeria’s Privatisation Agency, was a political baptism of fire - an encounter that put me smack in the middle of ethnicity, politics and policy conflicts. The event took place as Nigeria returned to democracy in 1999. This particular experience involved Enron Corporation, a company that later became globally notorious for its internal misgovernance and deception. Electricity shortages have become a way of life in Nigeria, and Enron saw an opportunity to cash in on that misfortune. They did something similar in India in the 1990s and it went really wrong but they learnt some lessons and came to Nigeria

with a more refined approach. What Enron proposed was to supply second-hand, bargebased generators (movable and easy to relocate in case of payment defaults) using diesel initially, to be supplied by Ocean & Oil Ltd, a Nigerian energy company since renamed Oando, until gas pipelines are extended from Egbin to the barges’ location, to provide initially 90MW and expandable to 540MW of electricity exclusively for Lagos State (the country’s commercial capital). Bola Tinubu, governor of Lagos State, Wale Edun, his finance commissioner, Yemi Cardoso, the state’s budget commissioner, Gbenga Oyebode, a commercial lawyer, Wale Tinubu, the Chief Executive of Ocean and Oil(as it then was) and Tunde Folawiyo, a businessman, all of them friends or acquaintances of

mine, were involved in the transaction at various levels and capacities. There were only three hurdles that needed to be crossed. First was the legal reality of the time: that only federally-owned National Electricity Power Authority (NEPA) could buy, transmit and distribute power so the cooperation of the Federal Government (FGN) was needed. Second was that NEPA was notorious for not paying its bills (even to government-owned companies like the Nigerian Gas Company which supplies it with feedstock), so some payment security arrangements needed to be put in place in anticipation of NEPA’s default, and finally Enron would require a sovereign guarantee in the event that NEPA fails to pay and the security arrangement fails to crystallise or is exhausted by multiple defaults.

Enron and Bola Tinubu found a way by getting Bola Ige, the Justice Minister, a fellow opposition AD party leader working in a PDP administration, to get President Obasanjo to sign off on the transaction without any cabinet review or rigorous inter-agency discussions. Bola Ige also obtained the president’s consent to sign a sovereign guarantee on behalf of the Federal Government of Nigeria — something only the Minister of Finance was legally authorised to do. There were no loud protests from NEPA management who could foresee the dangers of potential corporate insolvency because they all believed resistance was fruitless since Minister Bola Ige had the ears of President Obasanjo. Everything was signed, sealed and delivered and we all read about it in the newspapers. I was concerned that this could negatively impact the future privatisation of NEPA and requested the Vice President to obtain copies of the agreements signed for our review. This was barely two weeks after I resumed and then early in December 1999, we received the ‘power purchase agreement’ (PPA) of over 100 pages including annexes, annexures and other attachments. We could not make any sense out of it. We approached Norton Rose of the UK, and two local law firms, A L Mahmoud & CONTINUED ON PAGE 24


THE GUARDIAN, Wednesday, August 7, 2013

32

KICKSTARTER CONTINUED FROM PAGE 23

Co. based in Kano and George Ikoli & Okagbue of Lagos to undertake a review of the power purchase agreement. Norton Rose needed several weeks, and instinctively I knew we had to figure this out before it got too late, and several weeks might be too late. The local law firms submitted the outcome of their reviews within a short period, but what we got were not very helpful in isolating the potential impact of the PPA on our power sec-

Editor

Nigeria’s Long Asset Sale Season E are not commenting on the ‘rumour’ “W sir”, Tony Okonedo, Shell Nigeria’s Corporate media relations manager, responded curtly. His no comment referred to the Wall Street Journal’s report that Shell had notified the Nigerian government that it was interested in buying some of the acreages that Chevron was divesting from. Quoting an unnamed Nigerian government official, Wall Street Journal reported that "Shell is… interested in Chevron blocks in the swamps." And then the newspaper commented: “The move would be a rare acquisition by an international energy company in Nigeria, where oil companies have in recent years generally exited acreage amid mounting security risks”. Indeed, Shell itself had spearheaded, in the last four years, what has become the country’s long, drawn out, asset sale season. The Anglo Dutch major completed a sale of four onshore acreages in November 2012, less than 15 months after it made its first sale of assets in that terrain. Between August 2010 and November 2012, the company had sold eight acreages in the Delta State of Nigeria ConocoPhillips is about concluding the sale of its interest six acreages, as well as share in an LNG project in the same country. The American independent is looking at concluding its sale of these assets by September 2013. It is around this time, September 2013, that Chevron is hoping to have announced the winning buyers of its own stakes in five acreages in Nigeria. Petrobras has been spreading word that it wants out of the country and it is looking for buyers. Statoil has, with strong body language, wordlessly expressed the wish to sell its assets. Everyone is speculating about Agip’s move. And last November, TOTAL suddenly sold its 20% interest in Meanwhile, Shell itself has announced the kick-off of another round of acreage sale. Which explains why the reported move to buy Chevron’s assets came across as a surprise. The Wall Street Journal quoted unnamed sources as saying that "Shell has informed potentially interested local players that the blocks OML 13, 16, 71 and 72 are for sale," Africa Oil+Gas Report’s unfailingly impeccable sources at the Ministry Of Petroleum indicate that the number of acreages from which Shell wants to divest, this time around, is at least 10, which means six acreages in addition to the four that the Wall Street Journal reported. These acreages are all located in the East of the country. Having sold eight acreages in the Western Niger Delta (Delta State alone), Shell is about to sell in Rivers and Imo States. Peter Voser, CEO of Shell worldwide, gives us an inkling of why Shell would want to buy Chevron’s blocks while it is selling a significant chunk of its own. "We will not leave the onshore completely. In the more pure oil play, in the eastern part, we will be less represented over time, but it doesn't mean we go out of onshore."

CONTINUED ON PAGE 41

An Encounter with Enron tor reform programme. The agreement was highly technical with enough equations and integrals to scare all but the most mathematical proficient of lawyers. At this point, I approached the World Bank country office for assistance. Trevor Byer, the country director who fortuitously had been involved in power sector reforms elsewhere before his posting to Nigeria, was very helpful, proactive and immediately responsive. Within a couple of weeks, we received a summary of the agreement, its impact on privatisation, what the equations and annexes meant in terms of tariffs, security arrangements, dollar payments and contingent liabilities. I immediately briefed the Vice President who was alarmed at the findings, and he instructed me to draft a memo for onward transmission to President Obasanjo. Within five weeks of taking over the headship of BPE, I drafted the first of many memos which would be forwarded to the President, drawing attention to surreptitious steps being taken by line ministries to frustrate sector reforms and privatisation. The Lagos StateEnron case was particularly dangerous as it would have bankrupted NEPA almost overnight! The president immediately put the transaction on hold and commended the vice president for briefing him on the implications of the deal. The VP setup a ministerial committee chaired by Minister of State Danjuma Goje, with BPE, the Federal Ministry of Finance, and Lagos State Government represented as members, to review the agreement. Enron immediately hired GoodWorks International, the global advisory firm cofounded by former US Ambassador to the UN, Andrew Young, to influence the outcome of the review, while Bola Ige and some sections of the South-West media got busy attacking me, the vice president and the BPE for ‘depriving Lagos and Yoruba people of steady electricity’. We declined to respond, focusing on fixing what we saw as a potential stumbling block to reforming and privatising our electricity supply industry. I am glad we truncated the original deal, but even the better and revised arrangement which reduced tariffs from 8.5 cents per kilowatt- hour to just 1 cent a kilowatt-hour ended up placing huge financial burdens on NEPA years into the future and the undertaking we extracted from Lagos State to share part of the burden was subsequently challenged in court, and remained in dispute until we left office. My Enron experience was an education of

I am glad we truncated the original deal, but even the better and revised arrangement which reduced tariffs from 8.5 cents per kilowatt- hour to just 1 cent a kilowatt-hour ended up placing huge financial burdens on NEPA years into the future - and the undertaking we extracted from Lagos State to share part of the burden was subsequently challenged in court, and remained in dispute until we left office. sorts. I learnt many new lessons that dispelled my naivety. Well-informed and trusted friends put pressure on me to look the other way because they were advisers or consultants to Enron, or were potential beneficiaries in the transaction. My explanations and passionate representations that the transaction was inimical to national interest, negatively impacts the long-term viability of NEPA and threatened the reforms of the electricity industry were neither important nor relevant to their position. I saw starkly how government officials were willing

to pervert the interest of the country to impress foreigners, or obtain preferences for those they thought were their kinsmen. It was an early sobering experience and an appreciation of the reigning dictum of every one for himself and no one for the country. The hypocrisy of multinational commercial interests that think ‘contract sanctity’ overrode Nigeria’s laws, our national interest and the voidability of a contract based on a mistake also came to the fore. The even-handedness of the World Bank officials was commendable; for their efforts however, some of them were moved out of Nigeria, and some reportedly took early retirement due to pressure from the Executive Director representing the United States on the board of the World Bank, as a result of complaints filed against them by Enron. It was gratifying (and I felt that it was divine judgment for the sleepless nights and media attacks we in the BPE were put through by their executives and Nigerian collaborators for no reason other than their narrow commercial interests!) that I had to witness the collapse of that evil corporation. I remember vividly I was in Houston, Texas when on December 2, 2001, Enron filed for bankruptcy protection. Excerpted from The Accidental Public Servant, By Nasir Ahmad El-Rufai, published 2013 by Safari Books Ltd, Ibadan. Published with the permission of the author.

GAS COMMERCIALISATION

Nigeria’s LPG Demand In A Growth Surge By Paul Kelechi ONSUMPTION of cooking gas (LPG) in Nigeria has exceeded 150,000 metric tonnes per year(MMTPA), more than doubling the demand five years ago. In 2008, the national yearly demand was less than 60,000 MMTPA, according to the Nigerian Liquefied Natural Gas(NLNG), the country’s largest provider of the product. A raft of intense publicity of the value of cooking gas over kerosene and firewood, as well as projects aimed at enhancing the supply of the product, have clearly led to the demand shift. Some of the entities who have been part of the campaign are Oando, the integrated energy company and the Lagos State Government. On July 27, 2013, NLNG announced an increase in the quantity of LPG (cooking gas) it supplies to the Nigerian Market from 150,000 metric tonnes to 250,000 metric tonnes. “This sixty-seven percent (67%) increase will enable ample stock of the alternate fuel and promote the use of cooking gas - necessary for its salutary effects on the environment, including its role in controlling deforestation”, the NLNG said in a release.

C

“Nigeria LNG Limited currently provides over 70% of cooking gas used in Nigeria, and the current increase arose from its recent survey of the domestic market”, which showed that the consumption had more than doubled the less than 60,000MTPA when NLNG intervened in 2008 with domestic supply of cooking gas. “The increase is still far short of the Nigerian government’s aspiration for a per capita LPG demand of 3.7kg per person, or 576,000MMTPA”, says Jerry Tolkein, an energy analyst based in Cairo. “This requirement was meant to be met as of 2008”. The NLNG, however, notes that the trend is on course. “Increased usage of LPG in the domestic market helps reduce environmental despoliation; create employment from new business opportunities; reduce respiratory health problems attributable to wood smoke and reduce poverty: low LPG usage is an index of poverty”. Babs Omotowa, Managing Director, Nigeria LNG Limited said that he was extremely delighted that NLNG, true to its vision to help build a better Nigeria, is able to increase its supply of domestic gas. The assurance of steady supply should increase investors’ confidence in

the cooking gas industry, an industry which currently needs investments in storage, transportation, and cylinders. Omotowa stated that he was hopeful that the domestic market will grow even beyond cooking gas, to low-cost retrofitting of cars, to use

both gasoline and natural gas; as LPG is less expensive than petrol. NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total LNG Nigeria Limited (15%) and ENI International (N.A.) S.a.r.l (10.4%).


THE GUARDIAN, Wednesday, August 7, 2013

33

CompuLife Ubiquitous high speed Internet under new implementation regime By Adeyemi Adepetun HE entire plan to lift Nigeria into prosperity in high speed Internet access has now come full circle having moved from initial disjointed talks in 2008 to today when a National Broadband Plan is in place and Broadband Council has been established to see it through. Indeed, the computer age is one era that has been marked by lots of inventions and display of unprecedented human ingenuity. This has indeed revolutionised the global society as well as transformed economies and technological systems. Over the past three decades, important technological developments had created a global environment that has brought people across the globe closer. The Internet, as an integrating force, has molded the technology of communications and computing to provide instant connectivity and global information services to all its users. This tool has no doubt made significant impact in the business world with applications such as e-commerce, online banking and epayments, e-health, e-learning and e-government rapidly evolving. While some older people still struggle to embrace this emerging trend in ICT, most individuals across the globe cannot even imagine life without it. However, as Nigeria continues in its quest to become one of the 20 leading economies by 2020, stakeholders in the Information and Communications Technology (ICT) sector are concerned about the current level of Internet connectivity, quality of service and penetration in the country. This is against the backdrop of the experience in other countries where speedy broadband penetration has been contributing substantially to economic growth. Indeed, to fast-track the implementation process in the country, the Minister of Communication Technology, Mrs. Omobola Johnson told a forum packaged by Business Day late 2012 that the National ICT Policy which had then been accepted in principle by the federal government acknowledges that Broadband is an enabler of economic and social growth in the Nigerian economy and therefore sets broadband as the new target for universal ICT service provision. She said that there were two broadband policy objectives; namely, to accelerate the penetration of affordable broadband Internet in the country and to foster broadband usage for national development and laid bare the strategies through which her ministry would achieve these objectives. The minister specifically said that government would provide periodic review of the broadband penetration targets in order to determine further action for broadband expansion, promote both supply and demand side policies that created incentives for broadband backbone and access network deployment, facilitate broadband development and deployment, leveraging on existing universal service frameworks, provide special incentives to operators to encourage them to increase their investment in broadband rollout and promote e-government and other e-services that would foster broadband usages. Before then, there had been several works done by way of studies, conferences, summits

T

Ndukwe

and forums which all addressed the needs of Nigeria in the matter and the consequences of failure to get it right. “Our working plan should be to consider that for the purposes of broadband, the whole of Nigeria is unserved and everybody except a few people who are at the Marina in Lagos is underserved.” That was the way Mr. Titi Omo-Ettu, a broadband evangelist of a sort, put it when he opened discussion at the broadband expansion programme workshop in March 2013. He made a similar comment at the recent Annual General Meeting of the Association of Telecommunications Companies of Nigeria (ATCON). He was, on the two occasions, preparing a basis for the deployment of the Universal Service Provision Fund (USPF) to the broadband expansion agenda as aptly recommended by the International Telecommunications Union (ITU). It was under the watch of Dr. Ernest Ndukwe in his days as executive vice chairman of the Nigerian Communications Commission (NCC) that an Act of Parliament established the USPF and he was also a cochairman of the committee that authored the National Broadband Plan, which is the working document of the Broadband Council. The National Broadband Plan 2013–2018, which the committee of experts under the joint Chairmanship of Messers Ernest Ndukwe and Jim Ovia produced, considers that in looking at what has been achieved with broadband in the ICT sector today, the modest success recorded has been with several initiatives that ride on the back of the immense success of the digital mobile services boom in Nigeria, including the subsequent landing of several high capacity submarine cable systems that slashed wholesale international bandwidth prices. However, ineffective distribution and transmission of the available bandwidth inland have continued to make accelerated expansion of broadband Internet access at more affordable end-user prices, a major challenge At a Glance and a barrier to faster realisation of the desired broadband boom in Nigeria. ATCON advises govt on broadband That realisation already sets the compass for development others. P.26 how implementation of the plan would be navigated. The planners also seemed to have Tablets will outsell PCs this year, says funded that because of the diverse nature of Google. P.27 the country in terms of class and geography, different technologies must be deployed, inSoftware Testing would reduce implemen- cluding terrestrial wireless networks, optic tation of cost improve marketability P. 28 fibre transmission networks, fibre to the

Omobola Johnson

Omo-Ettu

home/premises, DSL systems, satellite systems and fibre/broadband over power lines. This, they said, would ensure the provision of solutions tailored to the needs of individual groups or communities. Although 10 terabytes of capacity is already delivered to landing points in Nigeria, it requires an active translation of the fine prescriptions in the National Broadband Plan to enable it radically transform the specific benefits in health, agriculture, education, commerce, entertainment, safety, environment management, civil engagement and governance. Present statistics from NCC showed that total number of data subscribers on the telecoms operators’ networks is about 57.7 million. Of the 57.7 million connected data subscribers in June, 48.3 million were active, while 38.3 million were active data sub-

scribers in May, according to Ojobo. A breakdown of the 48.3 million active data subscribers showed that MTN, which has the largest number of voice subscribers, also led in data subscription with 24.5 million active subscribers in June on its data network. Airtel came a distant second with 9.2 million data subscriptions, followed by Globacom with 9.1 million data subscribers and Etisalat with 5.1 million on its network. Among Code Division Multiple Access (CDMA) operators, Visafone leads the group with 127, 399 data subscribers, followed by Starcomms with 23,167 data subscribers and MultiLinks with 16,190 subscribers on its network. Smaller operators such as VGC Communications, accounted for 7, 010 subscribers, while 21st Century Technology has 5, 481 data subscribers.


THE GUARDIAN, Wednesday, August 7, 2013

34 COMPULIFE

ATCON advises govt on broadband deployment, others SAP, AXEL target South By Adeyemi Adepetun

(RoW) approvals on time and at reasonable costs to aid faster S plans to expand broadband cable deployment formed the infrastructure in Nigeria fulcrum of the discussion by gradually gather momentum, participants at a break-out sesstakeholders, under the aussions at the forum. pices of Association of At the break-out session, parTelecommunications ticipants also discussed broadCompanies of Nigeria (ATCON) band and its benefits and the have advised the Federal state of broadband deployment Government on possible ways to in the country; the challenges fast-track the process. of broadband; role of governSpecifically, they stressed that ment and other stakeholders in government at all levels should broadband deployment and build new roads with ducts local contents as imperative for where telecoms operators can generating demand for broadeasily lay their fibre optic cables band services. for faster and efficient infrastruc- Summarising the outcomes of ture deployment in the country. discussion at each of the four The stakeholders, who spoke at break-out sessions, ATCON a roundtable discussion of the President, Mr. Lanre Ajayi, said National Broadband Plan 2013the essence of the forum, which 2018, in Lagos at the weekend, also featured the yearly general stressed the need to address the meeting of the telecoms associchallenges facing operators in ation, was to further take anoththe area of getting Right of Way er look at the National

A

Broadband Plan ready for execution by the government through the Ministry of Communication Technology. Ajayi on behalf of other stakeholders called for reduction on import duties, especially on telecoms infrastructure; creation of tax holidays for investors; regulators stamping out anti-competitive pricing. They also want government to take up fibres and distribute for cost management. According to the Chief Executive Officer of Main One Cable, Mrs. Funke Opeke, “the cost of deployment is currently exorbitant in Nigeria”, stressing that to ensure that Nigerians begin to enjoy the dividends of having broadband services in the country, the cost of RoW needed to be reviewed in the country. Earlier, the former President of

ATCON, Mr. Titi Omo-Ettu, called on the operating companies in Nigeria to avail themselves of the funding opportunity provided by the government through the Universal Service Provision Fund. He said: “The USPF is available to every telecoms company that wishes to take service to the rural community, It is the money collected from the bigger operators, which smaller firms could leverage to run their business. All you need is to approach your request from the laid-down rules of accessing the fund. It is our money.” Omo-Ettu, who is also a member of the National Broadband Council set up to drive the execution process of the National broadband Plan 2013-2018, said the plan offers investment opportunity for telecoms companies in the country.

market with solutions S one of the efforts towards enhancing the provision of valuA able enterprise Information Technology solutions across Nigeria, Port Harcourt-based Axel Enterprise Systems Limited, in partnership with global business solutions developer, SAP, has developed new solutions for the South-South market and others. The move, the firm said in a statement on Friday, was aimed at enlightening the private and public sector players, especially within the south-south region of Nigeria, on the benefits of using SAP business solutions. According to one of the Directors in Axel, Mr. Chude Osiegbu, Axel is a consultancy outfit focused on delivering solutions to problems that its clients face in the area of enterprise resource planning using SAP. He said, “We also maintain a high quality team of training and administrative staff and also a resource network that is able to provide top-notch quality of training, consulting and support delivery available in the market.” SAP as an acronym for Systems, Applications and Products in data processing. Osiegbu disclosed that SAP Enterprise Resource Planning solutions were fully integrated business real-time systems that enable transactions to be processed end-to-end and eliminate data inconsistencies between sub-systems. He said companies were replacing their old business systems with ERP package developed by SAP. Enumerating the benefits of using SAP for businesses, he stated that SAP delivered systems are modern and efficient, with a support infrastructure unparalleled in the software industry.

Apple trains media experts on mobile journalism corporation from anywhere in the world. According to her, journalism has surpassed the era of delaying news reports to the era of real EADING global manufacturers of electronic devices, Apple Corporation, recently in Lagos time and immediate breaking of news reports on every issue. trained Information and Communications Technology (ICT) journalists on easy and smarter She said Apple ipads and other devices from the group have the best capacity to record, take ways of plying their trade with the help of its photos and reports from events and send same principal device, iPad. to the world of readers or watchers anywhere in Explaining the new trend in media practice called Mobile Journalism (MoJo), a senior manag- the world. Hyam noted that the use of ipads in a corporaer of the South African based Core Africa Group (CAG) in charge of sales and supplies of all Apple tion according to research has reduced cumulative working hours by eight hours with added products in Africa, Mrs. Taryn Hyam, said the advantages to grow corporate information training became necessary to raise the bar of African media executives in reporting news sto- management and dissemination with ease. While revealing that over 81 percent of web trafries from anywhere they find themselves rather fic in the US is carried by Apple devices, the senthan the old practice of returning to the newsior manager at Apple South Africa said iPad room for filling reports. While highlighting the strategic importance of remains the most needed tool for every journalist irrespective of medium or location. iPad, the premium Apple product, she revealed She explained that Apple iPads are loaded with that currently, over 475 out of 500 fortune blue chip firms in the US rely on ipads in driving their the needed apps for media practice.

By Bankole orimisan

L

The Country Manager of Core Group in Nigeria, Sachin Verma (left) ,Assistant Communications Manager, Core Group, Mbali Zondo, and a senior manager, of the South Africa based Core Africa Group (CAG)in charge of sales/supplies of all Apple products in Africa, Mrs, Taryn Hyam at a Mobile Journalism workshop in Lagos recently.


35 COMPULIFE

THE GUARDIAN, Wednesday, August 7, 2013

‘Software testing will reduce implementation cost, improve marketability’ Roland Omoresemi is the chief executive officer of U.S based Tezza Business Solutions, a software testing company foraging into Nigeria from its East Africa operations where Tezza Solutions has built strong presence with public and private organisations. In this, Omoresemi recently interacted with some Nigerian IT journalists on his plans and how the country could zap up on software testing to enhance the country’s software developments. ADEYEMI ADEPETUN was there. Excerpts. HY do companies and even government W institutions need software testing services? Quality sells and intentional investments in defect prevention result in even larger savings in quality-related failures. Quality ensures fulfillment and customer satisfaction. Quality guarantees brand and ensures customer loyalty. Software Testing ensures improved quality, reduced implementation costs and faster time to market especially when it is structured and intended. Organisations that strongly weigh and consider the risks posed to their brand, operational productivity, loss of revenue, even to the lives of their consumers would strongly focus on quality management. In economies where there are consumer advocacy groups, the penalties for poor quality in software applications can be severe. In Nigeria today, if consumers have a voice, would our approach to software quality be different? And without a common voice for consumers, could organisations whether in the private or public sector, pursue a higher level of excellence in developing applications that could be sold anywhere in the world and not just in Nigeria? According to a study conducted by the U.S. National Institute of Standards and Technology regarding the impact of software failures, software errors cost the American economy $59.5 billion yearly. (National Institute of Standards and Technology, 2002) If you have the opportunity to advise the Nigerian government as software testing company, what areas will you look at to drive efficiency in the system? I would advise the government to first start out

Roland by developing the necessary capabilities within NITDA. NITDA must be in the forefront of whatever policies or processes it advocates with regards to software quality assurance and testing. This can easily be achieved by setting up a Software Quality Assurance and Testing department within its organisation through which it can begin to develop capabilities that are eventually rolled out to and/or implemented within all ongoing IT projects within the government in addition to being leveraged by organisations within the private sector. This is also a structure and approach that is similar to what the U.S. Department of Commerce does through its National Institute of Standards and Technology (NIST). It is also similar to what the Federal Drugs Administration (FDA) does with regards to the guiding principles for Software Validation. The FDA provides guidance on how certain provisions of the medical device quality system regulation apply to software and the agency’s approach to evaluating a software validation system. Within FDA is a team of skilled software testers who actually try out and implement the guiding principles they advocate. In the U.S., NIST is one of the nation’s oldest physical science laboratories. According to NIST’s website: “Congress established the agency to remove a major handicap to U.S. industrial competitiveness at the time—a second-rate measurement infrastructure that lagged behind the capabilities of England, Germany and other economic rivals.”

Within NIST is a Software and Systems Division (SSD) who’s mission is to “work with industry, academia and other government agencies to accelerate the development and adoption of correct, reliable, testable software, leading to increased trust and confidence in deployed software; promulgate methods to develop better standards and testing tools for today’s software infrastructures and tomorrow’s next-generation software systems, advance the state of the art of software testing by developing scientifically rigorous, breakthrough techniques to automatically generate tests that are cheaper to develop and more comprehensive, lead efforts for conformance testing, especially at the early stage of standards development, develop integrated test environments to coalesce systems, facilitates the transfer of these activities and technologies into national infrastructures and commercial sectors.” Do you think institutions like NITDA are really doing enough in terms of providing framework for software usage particularly in MDAs and also building capacity to handle issues as they concern software usage within government? As mentioned before, NITDA can do a bit more than it’s currently doing. NITDA must attract the brightest minds that would create and test out best practices within its own laboratories before they are pushed out or consumed by MDAs. There are tons of ongoing IT projects within the government that I suspect may never be properly tested especially when it comes to the validation of non-functional requirements (such as scalability, speed, redundancy etc) and that’s because we don’t have a Test Centre of Excellence within NITDA that is tasked with test management and oversight across MDAs. Tezza Solutions has presence in East Africa and is already setting up in West Africa through Nigeria, what exactly is your service portfolio? Yes, we’ve been in East Africa since 2009 and we now have offices and presence in Kenya, Uganda, and Tanzania. Our service offerings cut across all areas of quality assurance of which software testing is prominent. Our “Go-To Market Strategy” is built on the following five major service offerings: Consultancy in all areas of quality assurance and testing. One of the key services of this offering is our Test Process Improvement Assessment. Through our assessments we are able to determine the quality assurance maturity levels of

our clients, thereby allowing us to help clients create short and long term roadmaps for how to address quality issues within their software development life cycles. You have a software test training coming up in Nigeria later this year, what are your areas of focus and who are you targeting? We are offering two of our popular courses this summer – the first training is a “hands-on” Software Testing Boot Camp based on ISTQB’s foundation level certification syllabus. Attendees can sit for a certification exam after the training and receive a certification that is recognised all over the world. ISTQB stands for International Software Testing Qualification Board. Course attendees will learn the following: Fundamentals of software testing— Concepts and context, risk analysis, goals, process, and psychology, lifecycle testing— How testing relates to development, including models, verification and validation, and types of tests, static testing— reviews, inspections, and static tools, test design techniques— Black-box test methods, white-box techniques, error guessing and exploratory testing, test management—team organisation, key roles and responsibilities, test strategy and planning, configuration management, defect classification and management, testing tools— tool selection, benefits, risks, and classifications. The second course is a business requirements course in understanding the process of gathering, defining, testing and managing user requirements. Attendees will learn how to define and solve the right problem and avoid spending tons of money building the wrong system, learn how to find problems in requirements before they ripple through the rest of the project, where they are much more costly to fix, understand the key issues in gathering and defining user requirements, learn how to design tests that adequately cover requirements and business events, get the most out of your existing investment in user requirements and use cases and how to leverage that investment and advance your career by reinforcing your software engineering expertise. The courses are designed to benefit key decision makers within organisations and strategic IT staff including project managers, business analysts, end-users, system designers, software engineers and developers, QA managers, software testers, CIO’s and other decision makers.


THE GUARDIAN, Wednesday, August 7, 2013

36 COMPULIFE

Tablets take over from print bible during Sunday services By Bankole Orimisan with agency report

tional analogue Bibles. Apparently, there are a number of digital Bible applications available free of charge IGITAL tablets are not only and these enable people to taking over from desktops and laptops as the ultimate com- transform their tablets into a Bible with just a touch of the puting gadgets, but the slates are also slowly replacing Bibles widget. “I usually take my (Apple) in Nigeria churches. Ipad to church every Sunday, it A study conducted during Sunday services at a number of has the required bible applicareligious houses, indicated that tion which looks, feels and a considerable number of peo- read better than the traditionple in Nigeria would rather carry al Bible which is heavier and cumbersome in comparison,” their tablets to church, for the sermons than lug their old tradi- explains Mr George Adamson.

D

the church gates, the slates can Pastor Andrew Laizer of the change back into the usual mulPhiladelphia (T.A.G) Church in Sanawari is also shopping for a ti-media slabs providing music, digital tablet; “I intend to use it movie and internet as well as as the basic Bible during my ser- enabling one to catch up with news and current affairs online. mon but also it may come in “And unlike in the old days handy as document reader and when after the Sunday service storage computer,” he states. you had to go back home to For many brethren, tablets leave the Bible before getting on have all the advantages above with other activities, tablets the old Bibles in that different versions of the holy book can be have solved the problem stored in a single slate which is because they can be carried anyalso ten times lighter and thin- where at any time,” chips in Mr Daudi Laurent, a resident of ner than the printed book. Njiro. Digital Bibles available for the The slates also come in differtablets include those written in Kiswahili which also come with ent sizes to suit every person and their needs; apple recently audio option. The applications also have the launched the iPad mini measurHoly Qur’an covered though we ing a diagonal 7.9 inches, smallare yet to establish if this is help- er than the original offing measto complement our multi-prod- ing the slates to find their way uring 9.6 inches. Samsung has uct, multi-channel strategy. We into mosques as they are doing all the sizes covered from 6.4 are very pleased to launch our in churches. The tablets, also inches, 7.0 inches, 8.0 inches new relationship with and 10.1 inches Galaxy tablets. have the ‘chameleon’ effect, eTranzact to increase the num- meaning as soon as one is out of Sony on the other hand, has ber of access points for consumers to use our services Rocket Internet launches booking site worldwide, facilitate financial inclusion, and provide conven- By Syntyche Boman ient mobile solutions for those OCKET Internet, the world’s largest incubator has unveiled a who want new methods for new online hotel-booking site called “Jovago” in Lagos. money transfer transactions. To Jovago offers 140,000 hotels worldwide, provides all informadate, we have 19 active mobile money transfer deployments in tion about hotels, as well as means to compare different options and find the ideal location, making it easy for users to get to 17 countries, and remain comtheir locations with ease. In Nigeria, the portfolio consists of mitted to expanding our over 200 hotels. Customers have the option to choose between mobile service offerings in key making their payments at the hotel or using the secure online regions.” payment option, all without any booking fees. eTranzact Mobile Money is a The Africa Internet Holding is committed to launch and run mobile payment solution that successful internet ventures to accelerate the online shift in has multi-network interface Africa capabilities with third-party To date, the hotel-booking market in Nigeria is unsorted and payment programs. Upon lacks convenient solutions for booking accommodation. receipt of their funds via a Therefore, using time-consuming booking agencies and walking Western Union Money Transfer up directly to hotels is still commonplace. transaction, subscribers can use The company, run by a team of 50 people, aims at facilitating PocketMoni, the eTranzact the booking process for its users by listing travel destinations Mobile Money platform, to pay and providing online hotel informations. utility and cable television bills, Jeremy Hodara, co-CEO Africa Internet Holding, stated, “Jovago make merchant payments, top- provides the easiest way to make travel arrangements. This will help business people and travellers find reliable accommodaup their mobile phone credits tion everywhere.

Firms partner to deepen mobile money services By Adeyemi Adepetun HE Western Union Company, T a leader in global payment services, and eTranzact International plc, a multi-application and multi-channel electronic payment processing company, have announced the launch of a new mobile money transfer service. The firms explained that consumers in Nigeria who use the eTranzact Mobile Money platform now have the option of receiving a Western Union Money Transfer transaction on their mobile phones. Consumers can receive funds from money transfer transactions initiated at westernunion.com transactional websites in 23 countries, or Western Union Agent locations around the world. Western Union Regional Vice President for North, Central and West Africa, Aida Diarra said, “Western Union continues to introduce new service offerings

R

just set record with what is being described as the world’s thinnest and lightest Xperia tablet, while Google is about to release its brightest yet, Nexus series. But they also don’t come

cheap; with tablet prices ranging between 400,000/- to 1.2 mil/- the days when all people are likely to migrate into the digital world entirely, according to some observers here, may not be anytime soon.

Firms plan workshop on clean energy workshop N recognition of the importance of energy to global collective ISustainable existence, LEAD Anglophone West Africa in collaboration with Power Production Management Corporation (SPPMC), Onatorio, Canada presents a workshop on Clean Energy Technology, Projects’ Analysis, Energy Efficiency Measures, Energy Monitoring and Greenhouse Gases Emission using RETScreen technology. The world renowned RETScreen Technology which has been endorsed by World Bank and UNDP as the preferred option for adoption by leading financial institutions and development partners around the world, is an energy management program built around a software tool, developed to analyse and monitor all energy forms, with special application in clean energy projects. This technology is available in over 30 languages to evaluate energy projects’ feasibility in terms of: production and savings, costs, emissions, financial viability and risks in various types of Renewable-energy and Energy-efficient Technologies (RETs).

MTN kicks off app developer challenge Nigerians that talks about O support the local content their needs. of government, MTN Nigeria Oyeyemi stated that “this is compelling to our customers has kick-started its app develand to lead the world in the oper challenge. Speaking at the forum recent- world of technology”. He explained that the chally in Lagos, General Manager, lenge will kick off by July 24th Consumer Marketing, MTN and end by October 24th, 2013, Nigeria, Kolawole Oyeyemi, adding that the app building said “we are bringing a new will focus on entertainment ground especially pioneering lifestyles, productivity, games, new spaces”. According to him, we want to education, health and special category for student. make our statement real to our customers. We are making He continued that these will be based on originality of conover 70 per cent of apps relecept, relevance of concept, vant to our customers. kind of user experience and He noted that this is focused on the need for preferences to commercial validity of the app.

By Faith Oparaugo

T


THE GUARDIAN, Wednesday, August 7, 2013

IFRSWatch

37


38

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

39


40

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7,

41


42

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

43


44

THE GUARDIAN, Wednesday, August 7, 2013


45

THE GUARDIAN, Wednesday, August 7, 2013

MaritimeWatch

Umar

Abdulahi

Okonjo-Iweala

NPA seeks support for women in logistics, transport By Moses Ebosele IGERIAN Port Authority (NPA) is gender sensitive, will continue to accord women employees all necessary support and encouragement, Managing Director, Habib Abdullahi has said. Receiving the executive members of Women in Logistics and Transport [WILAT] Nigeria chapter led by its President, Hajia Aisha Ali-Ibrahim, to his office recently, Abdullahi urged stakeholders to support the group in the interest of the sector. “it is a thing of joy that one of our own, Hajia Ali-Ibrahim triggered the establishment of the body in Nigeria. It is a moral responsibilityonourparttosupport you. We are gender sensitive. We will give you all the support and encouragement you require,” Abdullahi added. Earlier, the President of WILAT, who also Traffic Manager, Tin Can Island Port, thanked the ManagingDirectorandhisteam for the roles played by the Authority in the establishment of WILAT in Nigeria coupled with other support through sponsorship of members training and seminars. While pledging on behalf of members to be good ambassadors of the Authority and Nigeria, she appealed for more training sponsorship that will provide networking opportunities for women. Women in Logistics and Transport is a branch of the Chartered Institute of Logistics and Transport [CILT], established to encourage the participation of women at CILT functions and to encourage professionalism and career progression of women in Logistics and Transport. It consists of members from differentspecialisationsanddisciplines, working in the trans-

N

port and logistics sector. Meanwhile, NPA has assured stakeholders in the maritime sector of quality service delivery at all time. Abdullahi gave the assurance while declaring open a one-day seminar on Excellent Service Delivery in an Organization for Senior Management staff of the Authority put together by the Servicom Department recently in lagos. A press statement issued by General Manager (Public Affairs), Capt Iheanacho Ebubeogu quoted Addullahi, represented by the Executive Director Finance and Administration, Olumide Oduntan, as saying the Authority is determined to ensure that it becomes the hub port in West and Central Africa, “therefore all employees must change their attitude and work culture so that its efforts to reposition the Authority could be meaningful and sustainable”. Oduntan added: “There is no organisation without people. Any complaint about Nigerian Ports Authority is complaint about the people in NPA. You must be proud to make improvement on your desk. Lectures and presentations do not really matter. What you do at your individual departments is what matters, commit yourself to a better service delivery and let the organisation feel your impact”. He urged Servicom Department to embark on sensitisation exercise to enable all employees cultivate the habit of providingefficient,effectiveand timely service to customers. Earlier, in a welcome address, the General Manager Servicom, Mallam Bashir Abdullahi disclosed that his department had visited port locations outside

Lagos for sensitisation exercise which he described as very successful. To ensure accurate meteorological forecast, the management of NPA had recently in collaboration with the Nigerian Meteorological Agency (NIMET) announced plans to deploy weather Data Buoy on the Atlantic Ocean. According to NPA, the real time data generated by the buoy will go a long way to enhance better database,moreaccuratemarine meteorological forecast, timely warning among other things. NPA explained that the project is in response to the global temperature “which is set to increase by few degrees resulting in the weather becoming much more extreme in many

places with more storms and changed river discharges”. NPA’s General Manager in charge of Public Affairs, Capt Iheanacho Ebubeogu, explained that the sea level will also rise faster than the preceding centuries. Ebubeogu said: “These changes will have a severe impact on the natural processes in the affected environment. “Consequently, improving weather data gathering for more accurate weather forecast is becoming more important especially in this era of climate change and its apparent and envisaged attendant consequences. “The weather Buoy is a floating object that will be heavily anchored to the sea bottom so

that it will remain in place. “Its design and build is intended to provide a platform on whichweathergatheringequipment will be installed to gather, store and convey weather data for forecast processing. “The buoy which will be expected to arrive Nigeria within the nexttwoweeks, willbedeployed at Lat. 06º 22’ 43” N and long 003º 28’ 39” W, this position is 3.5 nauticalmilesfromthecoastline,4.8 nautical miles from Lagos harbour entrance and 3.8 nautical miles from fairway buoy. “Amongotherthings,itwillhost Meteorological sensor, Physical sensors Biochemical sensors, Central Processing Unit (CPU) and Storage, Telemetry, among others”, said Ebubeogu. He explained that the mete-

orological sensor will measure all relevant meteorological parameters such as wind speed, direction & dust, air temperature, sea surface temperature, water current, air pressure. He added: “It is pertinent to note that the special interest of the Nigerian Ports Authority (NPA) to collaborate in this laudable project is borne out of the provisions of International Convention of Safety of Life and sea (SOLAS) chapter V, regulations 5 which states that contracting governments undertake to encourage the collection of meteorological data by ships at sea and to arrange for their examination, dissemination and exchange in a manner most suitable for the purpose of aiding navigation.

Somalia unveils new agency for maritime security OMALIA will set up a new Spiracy coastguard force to combat as well as to strengthen its control over its territorial waters and natural resources, the country’s presidency disclosed recently.. A deal signed between Somalia’s defence ministry and a private company, The Atlantic Marine and Offshore Group, aims to create a coastguard from scratch for the wartorn nation, whose pirateinfested coastline is one of the longest on mainland Africa. “Instituting a coastguard is essential for the establishment of the rule of law within Somali waters,” said presidential spokesman Abdirahman Omar Osman, adding that the Netherlands-based company would provide “structure, assets and services” to develop the force. However, no details were giv-

en as to the potential size and capability of the proposed force, nor any financial details of the deal. The coastguard will also provide “protection of fishing grounds from illegal foreign fishing boats” as well as “protecting natural resources,” Osman added, without giving any time frame for it to be set up. The announcement, according to agency reports follows efforts by the internationallybacked government in Mogadishu to claw back authority over Somalia’s territorial waters, including areas bordering Kenya potentially rich in oil and gas deposits. Kenya, who has had troops in southern Somalia since 2011, first as an invading force and thenaspartofanAfricanUnion force, lays claim to a triangle of

water and oil blocs stretching for more than 100,000 square kilometres (37,000 square miles) that Mogadishu also claims. According to the deal, the Dutch firm will “build, maintain and operate the coastguard fleet,” which will include “longrange patrol vessels, equipped with high speed intervention vessels,” as well as provide training. Somalia’s waters have long been plagued by pirate gangs — still holding more than 50 hostages — but international naval forces and armed guards on vessels have stemmed the flow of attacks. At their peak in January 2011, Somali pirates held 736 hostages and 32 boats, some onshore and others on their vessels. Meanwhile, frustrated by a string of failed hijacking

attempts, Somali pirates have turned to a new business model: providing “security” for ships illegally plundering Somalia’s fish stocks—the same scourge that launched the Horn of Africa’s piracy era eight years ago. Somali piracy was recently a fearsome trend that saw dozens of ships and hundreds of hostages taken yearly, but the success rate of the maritime hijackers has fallen dramatically over the last year thanks to increased security on ships and more effective international naval patrols. Somali pirate gangs in search of new revenue are now providing armed protection for ships illegally fishing Somali waters. Erstwhile pirates are also trafficking in arms, drugs and humans, according to a report published this month

CONTINUED ON PAGE 38


THE GUARDIAN, Wednesday, August 7, 2013

46 MARITMEWATCH

CMA CGM Titan

Experts seek improved maritime security in West, Central Africa ORE than 60 participants from the 20 coastal Member States of the Port Management Association of West and Central Africa (PMAWCA) recently in Cotonou, Benin Republic joined international experts for a seminar on maritime and port security. The event organised by the International Maritime Organisation(IMO)hadinattendance experts from France, the United States Coast Guard, the United Nations Regional Office

M

for Central Africa (UNOCA), the United Nations Office on Drugs and Crime (UNODC), the United Nations High Commissioner for Refugees (UNHCR) and the international police organization, Interpol. According to IMO, they shared their knowledge and respective areas of expertise on a range of issues, including the practical implementation of security measure in ports, the facilitation of maritime traffic, the suppression of piracy and armed rob-

bery against ships, dealing with illicit maritime trafficking and countering transnational organised crime. IMO welcomed the opportunity to collaborate closely with PMAWCA as part of IMO’s continuing technical co-operation programme in the region. “Going forward, PMAWCA will build on the issues raised in this seminar to create a network for sharingportandmaritimesecurity information, intelligence gathering and information

Somalia unveils new agency for maritime security CONTINUED FROM PAGE 37 by the UN Monitoring Group on Somalia and Eritrea. The security services for fishermen bring piracy full circle. Somali pirate attacks were originally a defensive response to illegal fishing and toxic waste dumping off Somalia’s cost. Attacks later evolved into a clanbased, ransom-driven business. Up to 180 illegal Iranian and 300 illegal Yemeni vessels are fishing Puntland waters, as well as a small number of Chinese, Taiwanese, Korean and European-owned vessels, according to estimates by officials in the northern Somali region of Puntland. International naval officials corroborate the prevalence of Iranian and Yemeni vessels, the UN report said. Fishermen in Puntland “have confirmed that the private security teams on board such vessels are normally provided from pools of demobilized Somali pirates and coordinated by a ring of pirate leaders and associated businessmen operating in Puntland, Somaliland, the United Arab Emirates (UAE), Oman, Yemen and Iran,” the report said. The “security” teams help vessels cast nets and open fire on

Somali fishermen in order to drive away competition. “The prize is often lucrative and includes large reef and open water catch, notably tuna,” the report says. The nearly 500-page UN report also accuses Somalia’s government of wide-ranging corruption. Somalia’s president said in response that the report contains “numerous inaccuracies, contradictions and factual gaps.” “We are pleased to see the huge reduction in piracy, and yet equally concerned by the reports ofincreasedcriminality.Wehave much work to do to create legitimate livelihoods and deter Somalis from crime,” President Abdirahman Omar Osman said. Somali piracy has been lucrative. The hijackings of 149 ships between April 2005 and the end of 2012 netted an estimated $ 315 million to $ 385 million in ransom payments, according to an April World Bank report. But fishermen who have participated in piracy might argue that theattacksweremerelybringing back money stolen from Somalis. A 2005 British government report estimated that Somalia lost $100 million in 2003-04 alone due to illegal tuna and shrimp fishing in Somali waters.

In Somalia, pirates sometimes refer to themselves as “saviors of the sea.” A piracy expert at the International Maritime Bureau, said the protection racket makes for a “potentially dangerous situation at sea.” “I guess the region has always been rich in this kind of organised crime,” said Cyrus Mody. “I think that probably the positive side of all this is it’s being highlighted which would hopefully give the government in place now enough movement to try and do something about it with the help of the European Union and United Nation.” Piracy peaked in 2009 and 2010, when 46 and 47 vessels were hijacked respectively, according to the European Union Naval Force. Hijackings dropped to 25 in 2011, five in 2012 and zero so far this year. Still, Somali pirates netted an estimated $ 32 million in ransoms last year, the UN report said. One current pirate said he did not know about pirates providing protection to foreign fishing vessels, but he said some pirates are using Yemeni fishermen to smuggle weapons into Puntland.

sharing as the Association seeks to contribute towards the wider effort to strengthen maritime security,” said Michael Luguje, PMAWCA Secretary-General. IMO explained that the seminar complements the maritime security assistance programme conducted by the Organization in the region, including the integrated coast guard function network project and the recent series of national table top exercises. The seminar is also an example of the spirit of cooperation outlined in the recently-signed Code of Conduct concerning the prevention of piracy, armed robbery against ships and illicit maritime activity in west and central Africa, which aims to build capacity in west and central Africa to counter piracy, armed robbery and other illicit acts at sea. Successful implementation of the Code of Conduct, according to IMO is expected to stimulate economic development in the member states, develop sustainable fisheries and promote the development of the maritime sector. IMO Secretary-General, Koji Sekimizu recently announced the creation of a multi donor trust fund for west and central Africatosupportmaritimesecurity capacity-building activities in the region. Meanwhile, International experts recently met in London to review the growing problems in the marine environment caused by micro-plastics – tiny pieces of plastic or fibres which may act as a pathway for persistent, bio-accumulating and toxic substances entering the food chain. The experts form a key working group (WG-40) under the Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection (GESAMP),anadvisorybodythat advises the United Nations (UN) system on the scientific aspects

of marine environmental protection. The International Maritime Organization (IMO) is the Administrative Secretariat of GESAMP, which has, to date, produced more than 85 reports, including numerous in-depth technical studies contributing to the assessment on the state of the global marine environment. The working group, according to IMO met for its second session (from 23 to 25 July), completed a draft assessment report, covering the inputs of plastics and micro-plastics into the ocean, from land- and seabased human activities; the mechanisms and rates of particle degradation and fragmentation; the processes controlling particle transport and accumulation; the interaction of microplastics with organisms, and potential physical and chemical impacts; and public perceptions about marine litter in general and micro-plastics in particular. Further meetings will be held in 2013 and 2014, with a view to presenting the final global assessment report on micro plastics in the ocean at the 2nd international Ocean Research Conference in Barcelona, Spain, in November 2014.

Sekimizu

The principal audience for the assessment consists of the five UN Agencies supporting the work (IMO, United Nations Industrial Development Organization (UNIDO) and the United Nations Environment Programme (UNEP), the International Atomic Energy Agency (IAEA) and Intergovernmental Oceanographic Commission of UNESCO (UNESCO-IOC), as the lead Agency). The group recognized that the results will also be of interest to many other stakeholders, including intergovernmental bodies, regional seas organizations, maritime andrelevantland-basedsectors, industry, conservation bodies, scientists and the general public. Theworkshopbroughttogether experts in chemistry, ecology, eco-toxicology, human toxicology, materials science, physical oceanography, psychology, science-policy interface, social media and waste management, from nine countries on five continents, and observers from PlasticsEurope and the American Chemistry Council. IMO explained that Plastic debris comes in a wide variety of sizes and compositions and has been found throughout the world’s oceans, carried by ocean currents and biological vectors, such as in the stomach contents of fish, mammals and birds, adding that “plastics degrade extremely slowly in the open ocean, partly due to UV absorption by seawater and relatively low temperatures. The dumping of plastics into the sea from ships is prohibited under international treaties. IMO, Maritime Safety Committee (MSC) recently agreed to a restructuring of IMO’s Sub-Committees, in order to deal more effectively with the technical and operational issues covered by IMO regulations, in line with a review and reform process initiated Sekimizu.


47

THE GUARDIAN, Wednesday, August 7, 2013

IndustryWatch Smuggling in Nigeria: An untamable beast? In an economy where the government is pro-active, strategies for combating smuggling are usually designed to address the causes of the menace. Most times, efforts are focused on identifying weaknesses of financing state institutions that are responsible for the campaign or checking the porousness of the borders and by extension, oversighting of corporate finances. In many developing economies, the lucre is so huge for smugglers while local manufacturers suffer the untold hardship fostered by these economic saboteurs. To address this ugly trend, government may need to rejig its policies robustly as they relate to market forces and perhaps, peep into the possible factors that have made this illicit activity thrive over the years. FEMI ADEKOYA writes. recent times, the flow of trade to Nigeria IofNhasillegal been on the upbeat, just as the rising level flow of goods into the country

Head, Inspectorate and Compliance Directorate, Standards Organisation of Nigeria (SON), Bede Obayi, holding one of the seized sub-standard items being destroyed by the SON at the agency’s warehouse in Lagos. PHOTO: SUNDAY AKINLOLU

remains a concern for local manufacturers. Premised on the fact that basic trade theory suggests that there are gains to be made from free trade relations, many of Nigeria’s trade relations have, however, taken a new dimension, as trade malpractices remain the order of the day. From dumping of fake and sub-standard goods to smuggling of high-tariff products and contraband, these practices have put the ailing local industries at a near-comatose state with little chances of survival. For instance, a visit to the markets in different parts of the country does not give the impression that government agencies saddled with the responsibility of policing the borders or checking importation of contrabands into the country are doing their jobs effectively. The last few weeks have been quite eventful among the stakeholders with various seizures and destruction of fake, sub-standard and contraband goods. As effective as these measures may seem to the agencies, stakeholders in the real sector however feel otherwise and believe that more can be done through pro-active measures of re-examining the market forces behind the actions and collaborations with government officials who perpetrate such actions. For instance, the Standards Organisation of Nigeria (SON) in July intercepted and destroyed sub-standard goods, electric cables and household appliances worth N3 billion. According to the agency, most of the items were intercepted at the land borders and warehouses. It is a grounded belief that smuggling has a negative effect on the state and business. Contraband goods compete with legitimate goods and reduce the profits of law- abiding companies. Smugglers evade taxes, thus leading to budget revenue losses. Smuggling incites corruption of state officials, Customs and border control officers and politicians. By making it possible to obtain goods on a completely uncontrolled illegal market, smuggling also makes it impossible to limit the accessibility of controlled items to underage persons. Smuggling is understood as the carriage of goods for business purposes, not for personal consumption, through the state border in breach of established customs procedures and irrespective of the value of the goods. The causes of smuggling are the incentives that motivate people to engage in smuggling. Economic causes are factors that determine the

existence of smuggling. Economic preconditions are understood as factors that create favourable conditions for the economic causes of smuggling to manifest themselves. Except government addresses both the causes and preconditions, the fight against smuggling may be in jeopardy. Although a significant part of the nation’s borders are not properly demarcated and protected, a lot of the smuggling that take place, happen with the connivance of some custom officials and other security agencies at the borders. Earlier in the year, local rice millers and importers, under the aegis of Rice Importers, Millers and Distributors Association of Nigeria (RIMIDAN), recently, decided to enlist the federal government in a last-ditch effort to avoid extirpation. Specifically, the association through its National Chairman, Tunji Owoeye in a recent chat with The Guardian, had sought government‘s intervention, through the banning of rice importation into Nigeria through land borders. It contested that since land borders have become the main avenue for smugglers to flood the Nigerian market with rice, without regard for other concerns of the economy and the government, what was done in the case of frozen foods would be appropriate and effective in curbing the economic malaise. According to stakeholders, the fact that none of Nigeria’s neighbours is a rice producing nation, calls for questioning on why any importer would prefer to import parboiled rice first to Contonu before bringing it into Nigeria, with its attendant cost of double duty and tariff, if there is no hidden agenda. RIMIDAN noted that the backward integration policy being introduced in the rice sector was similar to what was done in the case of cement, a development which had transformed Nigeria from a country that was dependent on other nations for its cement supply, to one that does not only produce all the cement it needs but also contemplates exporting the excess soon. The association, stressed that apart from the threats which some businessmen who were lobbying government to grant them import duty waivers for rice importation to the detriment of duty paying genuine rice importers, rice smuggling through porous borders of the country also puts the rice backward integration policy in grave danger. “Rice occupies an important place being the staple food of Nigerians. According to govern-

ment statistics, yearly consumption of rice is about 5.5 million tonnes with local production accounting for about 1.8 million tonnes, thus necessitating the need for importation to bridge the gap. Unfortunately, 50 per cent of these imports are smuggled into the country,” the association added. According to available statistics, the total loss of revenue to the government from this unwholesome activity for the period commencing January 2012 till date is over $200 million, or N32 billion naira. “What the smugglers are riding on is the increase in levy on imported rice and also the porous land borders. Thus there is a situation whereby thousands of bags of rice are being smuggled into the country on a regular basis especially through the rivers linking Nigeria with the Republic of Benin, while genuine processors are left in a lurch. “The association’s call is for the federal government to strengthen its mechanisms for policing the land borders especially the Seme Border flank as well as other related areas, where much of these acts are being perpetrated. RiMDAN’s objective in this respect is to protect the rice business in Nigeria and ensure that the sub-sector plays its role of sustaining its due Gross Domestic Product (GDP) contribution to the national economy,” Owoeye added. Industry watchers however believe that the

Why smuggling thrives • Heavy tax burden • Multiplicity of regulatory agencies and inconsistencies in policies • Extensive and cumbersome system of business licensing and permits • Low quality of public services • Strict employment regulations • High level of corruption • Complicated customs procedures • Low living standard in neighbouring countries • Import formalities and non-tariff import restrictions • Infrastructure of smuggling and criminal structures

ineffective implementation of the Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS) should be blamed for the flooding of the Nigerian market with substandard rice and other smuggled or dumped products. For instance, if effectively implemented, the ETLS should lead to the economic prosperity of most of the ECOWAS member states, especially Nigeria where there is a lot of indigenous investments in manufacturing, processing and other value-adding economic activities. ETLS is a trade arrangement targeted at making the West African region an effective Free Trade Area (FTA), a trade bloc whose member countries have signed a free trade agreement, which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. If people are also free to move between the countries, in addition to FTA, it would also be considered an open border. It can be considered the second stage of economic integration. Countries choose this kind of integration if their economic structures are complementary. Also, if their economic structures are competitive, it is likely there will be no incentive for a FTA, or only selected areas of goods and services will be covered to fulfill the economic interests between the two signatories of FTA. Under ETLS a large percentage of the product to be moved from one member-state to another must originate from that country. There is always a requirement for the minimum extent of local material inputs and local transformations adding value to the goods. Only goods that meet these minimum requirements are entitled to the special treatment envisioned by the free trade area provisions. In principle, the overall gains from trade could be used to compensate for the effects of reduced trade barriers by appropriate interparty transfers. In practice; however, a lot seems to be wrong with the ETLS as many industries continue to groan under the influx of substandard goods from neighbouring countries. If the Nigerian economy must move forward, if the economic development that is said to be associated with vibrant international trade will ever register in the nation’s Gross Domestic Product (GDP) or in the lives of the people, industry watchers believe that economic haemorrhages must be stopped. Government must take genuine action to plug such drainpipes and boost intra-regional trade, for the good of all.


48

THE GUARDIAN, Wednesday, August 7, 2013


AFRICAN OIL&GAS REPORT 49

THE GUARDIAN, Wednesday, August 7, 2013

THE REFINING GAP

Refining in Africa – a Chinese puzzle, Neil Fleming by booming economies like LandED that of Côte d’Ivoire, Mozambique Ethio¬pia, sub-Saharan Africa’s oil demand is set to jump by 50 percent in the next decade, outstripping growth in the rest of the world by a factor of around four to one. That’s the forecast from downstream African consulting specialists CITAC, who predict African oil demand will hit 2012. By 2020, demand is set to be some 4.5 MMBOPD, with West and Central African demand growing the fastest (44 percent), and North Africa likely to grow by 26 percent. But while such demand growth signals perhaps that Africa’s troubled economies may at long last be boarding the emerg¬ing markets train, it carries with it a significant burden: much of the additional refined products are likely to need to be imported. The shortfall in oil products in Africa is set almost to double by 2020. The continent has been a net importer since 2007, but the situation is likely to become rather more extreme over the next seven years, according to CITAC’s annual Oil Refining in SubSaharan Africa study. The shortfall, taking into account all products except LPG, is expected to jump from 31.5 million tonnes/year (700,000 BOPD) in 2012 to around 60 million tonnes/year (1.32 MMBOPD) in 2020. And despite North Africa’s self-sufficiency in refining, and its ongoing exports of jet/kerosene, the continent overall has already seen its clean products shortfall grow sixfold from 8.5 million tonnes in 2001 to 52 million tonnes in 2011. This will increase by a further estimated 33 million tonnes by 2020, reaching 85 million tonnes per year (1.84 M M B O P D ) . Why? Put bluntly, it’s a very hard task to assemble the political will and investment resources to build a refinery in Africa right now. Only 56 refineries have ever been built on the continent. Fourteen of those have closed, and two have merged at Port Harcourt in Nigeria. Africa overall has a refining capacity (on paper) of 3.2 MMBOPD, but 2012 refinery output was only some 2.4 MMBOPD, 61 percent of which came from North African operations – product that is unlikely to wind up south of the Sahara. More than half the balance (58 percent) comes from South Africa’s four crude oil refineries, which between them generate some 530,000 BOPD of products. By contrast Nigeria, which has name¬plate refining capacity of 445,000 BOPD, produced only 95,300 BOPD of products in 2012, and has for years been heavily dependent on imports of products from Europe. The continent’s governments are keenly aware of the issues they face. Not only is there a large shortfall in capacity, but much of the capacity that does exist is in grave need of

upgrading. World Bank and other studies on air quality have concluded around $10–15 billion needs to be invested in improving oil products standards alone, to reverse dangerous declines in air quality in many African cities. This is before a single barrel of new capacity is added. Then there’s the fact that most of Africa’s refineries are also too small to compete on the international stage: most world-class plants as of 2013 are at least 200,000 BOPD in size. Port Harcourt, at 210,000 b/d, is Africa’s only offering above this size, with South Africa’s SAPREF running it a close second at 180,000b/d. Such plants are dwarfed, however, by complexes like India’s Jam¬nagar complex, with its 1.24 million b/d of capacity. Even without building new refineries, therefore, there is theoretically a case for enlarging the existing ones. These three factors – outright shortfall, low quality output, and lack of scale – have been responsible for African governments (mostly) making over one hundred announcements of proposed new refineries or refinery expansions in Africa. But there is a giant gap between aspiration and reality, between what a government hopes for and what the commercial world is prepared to invest in, particularly at a time when the refining industry globally is challenged in a way it has rarely been in the past. There are plenty of other lower risk infrastruc-

ture projects, even in Africa. Significantly, the past seven years have seen a large-scale exit from African downstream markets by major oil companies, with Chevron, BP, and Shell selling substantial parts of their distribution and marketing empires outside South Africa to local companies, in particular Malaysian-owned Engen, and to trading houses such as Vitol and Trafigura. France’s Total is the sole major left operating on a large scale across the continent, and shows little sign it is willing to invest in refining in the region. Expansion of the sector is indeed further constrained by the fact that – with the exception of Nigeria and South Africa – most local markets are simply too small to sustain a competitive refinery, and profits from long-haul products exports substan¬tially lower than those from local sales... leaving the hope of competing on a world stage stuck in a Catch-22. As a result, of all the announced new grassroots refineries, only five have actually been completed, and four were built by the Chinese – more specifically by CNPC, who put in a 110,000 b/d plant at Khartoum in Sudan, a 12,500 b/d plant at Adrar, Algeria, the 20,000 b/d refinery at N’Djamena, Chad, and the similarlysized Zinder plant in Niger. China is involved in theory with further expansion in Khartoum, and possible projects in Uganda and Equatorial Guinea. The fifth new plant was Egypt’s MIDOR refinery in

ELSEWHERE/ IN THE NEWS

Kenya Closes Up On IFC’s Predictions an early development scheme”,

waxy oil with no indication of pressure ullow Oil’s July 2013 announcereports the Canadian minnow. T ment, of both the successful testing depletion”, it is time to re-appraise However, even with the combined IFC’s optimism. of Ngamia-1 and the discovery of Etuko-1, onshore Kenya, recalls the comments of the International Finance Corporation (IFC) much earlier in the year, about the likelihood of the country becoming an oil producer by 2016. The IFC statement had been widely described as extremely optimistic. Of the two oil discoveries in Kenya as of March 2013, only the Twiga-1 had been successfully tested. The Ngamia-1 test was ongoing, and as of then was running into some hitches. Now that the Ngamia-1 flow test had successfully delivered “cumulative constrained flow rate totaling 3,200 BOPD of 250 to 350 degree API sweet

Tullow had claimed a “doubling of our previous estimates of net oil pay to 200 metres and 75 metres respectively, an optimized flow rate potential of around 5,000 BOPD per well and significantly increased discovered volumes”. “These results move us towards achieving the threshold for a commercial development in the Lokichar Basin,” gushes Africa Oil Corp., Tullow’s partner in Block 10BB, which contains the fields. “This encouragement has caused us to set in motion appraisal of the Ngamia-Twiga trend and to assemble a technical team to commence early development planning both for a large scale pipeline development and

mean associated resources for the two discoveries now estimated to be over 250 MMBO , these pools still require extensive appraisal work before field development sanction. And this, going by Tullow’s schedule, is not likely to be completed until 2015. It’s clear that Kenyan onshore oilfield development will be more comparable to Uganda’s: a clutch of small to medium sized oil fields scattered all over the place, to be developed in cluster; and unlike one giant field lying in one single location like Ghana’s Jubilee field. No, these fields will not be in production before 2017.

2001. Three refineries have been ex¬panded since 2000 (Khartoum, Morocco’s Mohammedia, and Cameroon’s Limbé) and one has been debottlenecked at Skikda/Arzew in Algeria. Much has been said and written about China’s investment relationship with Africa. Untroubled by political niceties in countries like Sudan, and motivated by a seemingly unquenchable thirst for raw materials, the Chinese have dared to make investments unthinkable to Western businesses – and more importantly to Western banks. As a result, in 2010 alone, Chinese bilateral trade with Africa grew 45 percent to a record $115 billion. By 2015, it is expected to hit $325 billion. Back in 2005, it was somewhere below $40 billion. Chinese refinery construction in Africa – at least at the outset – was positioned as a quid pro quo enterprise. Refineries, like other infrastructure projects (railways, for example) were offered in exchange for a lock on natural resources. But as the reality of making refining

work commercially in some African countries has hit home, even the Chinese appetite for such deals has waned. Beijing’s trade partnerships are a great deal more about trade than about partnership. China’s interest in African infrastructure development should not be mistaken for philanthropy. There has been hard prag¬matism behind every proposed Chinese project, and equally hard pragmatism behind its decisions to pull out, or not to invest in the first place. CNPC was supposed to be expanding its Chad plant to 50,000 b/d, for example. It holds a 60 percent stake in the refinery. But a row in 2011 over fuel prices soured the deal and led the Chad government early last year to suspend its agreement with the Chinese altogether. President Idris Deby, enthused by the refinery startup, had decreed a three-month price ‘jubilee’, slashing gasoline prices to some 67 cts/litre – about 40 percent of the price prevalent in Chad before the refinery opened. CONTINUED ON PAGE 42

Nigeria’s Long Asset Sale Season CONTINUED FROM PAGE 24 Read Mr. Voser again: Shell will be less represented, over time, in “the more pure oil play”. Shell has reportedly noted, much earlier, that it wants to focus on growing its gas business as well as the deepwater terrain. Which means that the acreages Shell would keep are the gas prone assets. If you have data on Nigerian gas reserves, you can determine, for yourself, what acreages Shell would want to keep, mostly for gas export projects like LNG. We have an idea, at least, about one Chevron acreage in the current Chevron divestment process that Shell would be interested in. Shell and Chevron have, for over five years, been talking joint development of large gas reservoirs straddling Chevron’s Ohaji South in OML 53 and Shell’s Assa North in OML 21. Then suddenly Chevron says it wants to sell its stakes in OML 53. You can see why Shell would be interested. Asset sales of this scope are, by received wisdom, in the purview of sovereign states. What is going on? Who are the beneficiaries of these sales? What is the state’s benefit? Is the overall divestment picture a good or bad sign, on balance? How have the processes of divestment such as these been handled elsewhere on the

continent? These are the issues that formed the focus of the lead article in the July 2013 edition of Africa Oil+Gas Report (see cover photo), which was circulated free to every participant at the Nigerian International Conference of the Society of Petroleum Engineers (SPE) in Eko Hotel, last week. If you didn’t make it to the Conference, you can only get the magazine by subscription. The Africa Oil+Gas Report is the primer of the hydrocarbon industry on the continent. It is the market leader in local contextualizing of global developments and policy issues and is the go-to medium for decision makers, whether they be international corporations or local entrepreneurs, technical enterprises or financing institutions, for useful analyses of Africa’s oil and gas industry. Published by the Festac News Press Limited since November 2001, AOGR is a monthly, 40 page hardcopy publication delivered to subscribers around the world. Its website remains www.africaoilgasreport.com and the contact email address is info@africaoilgasreport.com. Contact telephone numbers in our West African regional headquarters in Lagos are 2348130733523, 2347062420127, 2348034449079, 234803652979, 2348023902519. Please enjoy what this edition of the Pullout has to offer.


THE GUARDIAN, Wednesday, August 7, 2013

50 AFRICAN OIL&GAS REPORT

BACK PAGE/IN THE NEWS

FARM IN, FARM OUT

THE REFINING GAP

Refining in Africa – a Chinese puzzle, Neil Fleming CONTINUED FROM PAGE 41 The move left the refinery $4.7 million in the red after only a few months of operation, according to CITAC’s researches, and refining came to a halt in September that year. Once restarted, a continuing row led to CNPC’s refinery General Manager being ejected from the country. From the Chad government’s perspective, it was having its arm twisted by Beijing; from Beijing’s, the expecta¬tion was that contractual commitments needed to be met. Despite a renegotiated deal, it was not until December 2012 that pump prices actually rose, howe v e r . A similar story at Adrar in Algeria that led to refinery closure was theoretically settled by negotiation early in 2012, but the status of the plant remains unclear. And famously a $2 billion Sinopec plan to build a refinery at Lobito in Angola earlier this century never even got off the ground. Sinopec pulled out in 2007, and as of 2013, state Angolan oil company Sonangol is still looking for investment partners for the project. The construction contract has been awarded to US company Kellogg Brown and Root, but the comple¬tion date has been pushed back from 2012 to 2014, or possibly 2 0 1 5 . The question is now whether China’s taste for refining investment may have cooled to the point where it will decline to participate in more projects altogether. It is more than three years since an expansion of the Khartoum refinery was announced – but nothing has happened, not least because in the intervening time, Sudan has become two countries, and ownership of the oil, in which CNPC has various equity stakes, is in dispute. It’s too early to say that the Chinese affair with Africa is over. Chinese com¬panies have after all completed over 500 infrastructure projects on the continent. Problems with a few high-profile projects should not overshadow that record. Nevertheless, recent experience may

have underlined the need in Beijing to take additional care when assessing country risk – and a return to tighter agreements, perhaps more refinery processing agree¬ments, is on the cards. South Africa’ PetroSA began a pre-feasibility study on a 320,000–400,000 b/d refinery at Coega in 2008. In 2012 it signed a joint study agreement with Sinopec on the plant and in March this year moved ahead to a ‘Framework Agreement’, valid for two years, for construction of the plant. Such an agreement, however, is no guarantee that construction will go ahead. And if Chinese enthusiasm has waned, it is hard to see from where else Africa can obtain both the funding and commitment to construct new plants. Uganda is looking at building a small refinery to exploit the waxy crude find made by Tullow Oil in the northwest of the country in 2006. But the plan has been bogged down in a dispute with investors Total, Tullow and CNOOC over whether or not also to build a crude export pipeline. The investors are keen to build a small 30,000 b/d plant (with potential enlargements later) and export the rest. Uganda’s President Museveni has floated grander refining ambitions, however, mooting a refinery as large as 180,000 b/d at times. CITAC under¬stands a deal may now have been done for the smaller plant, though nothing has been signed, and meanwhile no actual crude oil is likely to flow from the find until 2014. Equatorial Guinea, meanwhile, has also proposed to build a 20,000 b/d refinery in its Rio Muni province. And in Nigeria, grand plans for up to three new refineries have been floated. Most recently, in April 2013, Africa’s richest man, Nigerian business mogul Alhaji Aliko Dangote, announced a plan to construct a 400,000 b/d refinery by 2016, investing up to $8 billion of his own money in the scheme. Even as he launched it, however, Dangote acknowledged that his plan might face stiff political opposition from interests benefiting from Nigerian products imports. The conclusion seems clear: it will

not be possible for African refining to keep pace with the continent’s economic expansion over the next decade. But that expansion looks set to take place, refining assets or no. By implication, investment in oil products supply will take place, but it will be investment in far less financially risky import, storage and distribution logistics. There will be a downstream oil boom. But it won’t be in refining. ■ This article, by Neil Fleming, was initially published in the Oxford Energy Forum Reports, by the Oxford Institute for Energy Studies, in Oxford, England www.oxfordenergy.org. It is reprinted here with the kind permission of the Institute

Uganda is looking at building a small refinery to exploit the waxy crude find made by Tullow Oil in the northwest of the country in 2006. But the plan has been bogged down in a dispute with investors Total, Tullow and CNOOC over whether or not also to build a crude export pipeline. The investors are keen to build a small 30,000 b/d plant (with potential enlargements later) and export the rest. Uganda’s President Museveni has floated grander refining ambitions, however, mooting a refinery as large as 180,000 b/d at times

Petrofac Clinches Strategic Alliance Partnership For OML 119 By Kofi Adjoto ETROFAC, in league with local content vehicle Taleveras, has won the strategic alliance partnership of NPDC to fund the operations in the Oil Mining Lease (OML) 119 in Nigeria’s prolific south eastern offshore. State hydrocarbon company NPDC is operator of the acreage, which contains the Okono and Okphoho fields, discovered by the defunct Exploration & Exploitation (E&E) Division of NNPC, the forerunner of NPDC, during its exploration campaigns between 1978 and 1983. With the contract secured, Petrofac takes over from Agip Energy and Natural Resources (AENR), the subsidiary of Italian giant ENI, which has funded oilfield activity in the acreage since 2000. Although AENR was competitively selected as a strategic alliance partner for the development of the twin fields in August 2000, it is not clear whether the Petrofac/Taleveras award was a result of any competitive bidding. AENR signed the agreement in December 2000 and delivered first oil in December 2001. “It was one of our best field development undertakings”, according to a source at ENI. AENR operated the asset from 2000 to 2005, and turned it over to NPDC for operatorship. The terms of the agreement with Petrofac/Taleveras however precludes operatorship. Their purpose is, solely, to fund NPDC’s operations in the asset. Clinching the partnership deal is clearly a big one for Petrofac, a UK listed, FTSE 100, oilfield service company, with EPC contracts in excess of $3Billion currently in execution in North Africa alone. OML 119 was producing 35,000BOPD as of June 2013, down from as high as 66,000BOPD in 2007, but the acreage’s upside potential is underscored by the recent discov-

P

ery of two oil filled reservoirsdeeper by as much as 600 metres than the deepest producing zonewhich NPDC is hoping to develop. Petrofac has hovered around West Africa for the last three years, hoping to get a significant transaction. It has invested close to $175MM in Nigeria (mainly in Septa Energy) since 2010, attempted to get into Cote D’Ivoire and bravely announced, several months ago, a planned $500MM investment in tiny C a m e r o o n . AENR is not entirely happy to walk away from OML 119. For the past 10 years, it has hoped that the service contract could be converted to a Production sharing contract. In 2010, the Nigerian media reported that Nigerian authorities dismissed AENR’s application to buy out NPDC from OML 119. ENI’s sources deny the claims, but admitted the company would have preferred a PSC in which AENR serves as operator. OML 119 remains NPDC ‘s main cash cow. Taleveras’ founder, Igho Senomi, 37, a 1999 graduate of geology from the University of Jos in north central Nigeria, is reportedly close to Diezani Allison- Madueke, the country’s petroleum minister. The company is known majorly as a trading firm through Taleveras Petroleum Trading BV, a wholly-owned subsidiary of Taleveras Group. Operating out of London, the company trades Crude and Fuel Oil, Condensates and Liquefied Petroleum Gas (LPG) as well as refined petroleum products such as Gasoline, Dual Purpose Kerosene, Gasoil, Naphtha, Jet Fuel. Taleveras’ upstream track record is largely unknown, although the company claims it has equity in two blocks which are not disclosed on its website.

Rising profile: Igho Sanomi, the 38 year old founder and CEO of Taleveras, is a 1999 geology graduate of the University of Jos

For participation in Oil & Gas section, contact: The Manager: Lagos: 01 7736351; Abuja: 07098513445


THE GUARDIAN, Wednesday, August 7, 2013

51

Energy ‘How to tackle theft, human capital issues in oil, gas sector’ By Roseline Okere HE Nigerian petroleum industry has no T doubt contributed tremendously to the overall growth of the economy. It is the mainstay of the economy, pivoting other sectors and accounting for about 90 per cent of the country’s foreign exchange earnings. The country also derives about 41 per cent of its Gross Domestic Product (GDP) and 88 per cent of the federal government collectable revenue. Despite this impressive profile, however, the Nigerian oil and gas sector’s contribution to national GDP has continued to decline due to absence of the required human capital needed for operations and the menace of crude oil theft. Though, the Nigeria oil and gas industry is presently facing a lot of challenges, two things that are of serious concern to the country’s petroleum engineers, remained the issue of human capital development and crude oil theft. In its attempt to proffer solutions to these challenges, the Society of Petroleum Engineer (SPE) at its yearly conference last week, brought experts and industry leaders to discuss ways forward. The conference addressed interesting topics focusing on the exciting opportunities, the issue of crude oil theft as well as challenges for women to further their careers, especially in the oil and gas sector. It also profiled women’s success stories and experiences that proved that women are accomplished leaders holding key positions in their respective companies. Speaking at the conference, the Country Chair/ Managing Director Shell Petroleum Development Company (SPDC), Mutiu Sunmonu, disclosed that Shell was losing 60,000 barrels of oil daily to oil thieves and suggested that the only way to grow the country’s oil reserves to 40 billion barrels was to fight oil theft. Sunmonu who was represented by the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Chike Onyejekwe, said that the impact of the activities of crude oil thieves and illegal refineries on the environment in the Niger Delta and the Nigerian economy had worsened. He said that Nigeria depended on the oil industry for approximately 95 per cent export earnings and 80 per cent of government revenue and, therefore, should take decisive steps to deal with the phenomenon. According to him, “government aspired to increase oil production to four million barrels per day, grow reserves to 40 billion barrels and earn as much revenue from gas as oil by 2020. He said: “In order to achieved this, we must urgently tackle oil theft in the country, at some point this year, over 60,000 barrels of crude was being stolen from SPDC lines every day.” He said that activities of illegal refineries were causing serious damage to the environment, while significant proportion of the stolen crude used in the illegal refineries were disposed off in the environment. According to him, the scale and complexity of this problems was beyond the control of any company, “as we discuss this issues let us be honest, let us consider genuine ways that can help to stop this problems. “Personally, I believe the perpetrators of these crimes need to be arrested and prosecuted, until there is deterrent, the industry doesn’t stand a chance against illegal bunkering of the scale we are seeing today,” he added. Sumonu said that Shell companies in Nigerian ran extensive training programmes to build human capital development as an enabler to grow the Africa’s oil and gas production. The company had also included awards of post graduates scholarship in engineering and related fields. He also said that the company was at the vanguard of developing the local content initiative, adding that several feed engineering training, vocational training, entrepreneurship development programmes and training of wire line engineers for Nigerian service provider had been initiated to grow the sector. Speaking also at the event, Chairman of the commission’s PMC, Dr. Emmanuel Egbogah, said that new laws that would bolster the strategic economic sector, with concomitant positive impact on job creation should be enacted.

An oil thief near one of the breached pipelines in the Niger Delta Besides, Egbogah stressed that Nigeria’s plan to achieve the vision of becoming one on the leading economies in the world would be a mirage without proper focus on research and development. Egbogah, who was the special adviser to the president on Petroleum Matters, believed that the country was lagging behind in research and development in Africa needed for the development of its oil and gas sector. According to him, the country could never develop with the low level and middle level manpower presently in the country. “Also, appropriate and enabling legislation is needed for the development of the country’s oil and gas industry.” He attributed the high rate of brain drain in the country to the inability of the government to provide the needed jobs for the people. “There are 3.25 million Nigerians working in North America, 150, 000, are in the medical profession, 175, 000, in the Information Technology sector, 87, 000 are in the pharmaceutical sector, 50, 000, in the engineering industry, and 250, 000 professionals in the legal and real estate sectors.” To tackle the high rate of unemployment in the country, Egbogah emphasised the need for the federal government to establish institutions, which would assist young entrepreneurs who wish to be self-employed. “The solution to unemployment in the country is to be self employed. The government cannot provide jobs for everybody. People should begin to think towards establishing their own businesses. The government has been able to set up the micro finance banks, which are supposed to assist young entrepreneur in respect to funding. Government should ensure that these institutions are performing the roles, which they have been establish to do,” he said. He added: “The Federal Government has never has a sustained focus on the development and application of technology for transforming its national economy, and the education curriculum was not designed to deliver a leadership base in science and technology, but Nigeria would do well to follow Malaysia’s example. “In Nigeria and Malaysia, technology is clearly the engine of growth. Within this framework, business and industry are the drivers, government is the catalyst and academia is the fuel. An integrated strategy, therefore, must link these stakeholders in the business of national development. Technology-based development can occur only with concerted efforts to revitalise education, develop personnel, and create integrated industries.” SPE Nigeria Council Chairman, Osayande

Igiehon, said that finding a lasting solution to oil theft had become essential, because Nigeria is a mono-economy which relies heavily on crude oil exportation. He explained that crude oil sale was not just the mainstay of the economy but the source of about 95 per cent foreign exchange earnings for the nation. The conference was to provide a robust platform to help governments, industry and academia position for the aspired production growth which will be crucial to achieving needed economic growth in Africa and meeting the world’s growing energy needs.

Igiehon said: “As exploration of crude oil never ceases, there is need for further discoveries of more reserves to replenish those already extracted from oil wells. From inception of oil discoveries in Nigeria, you would have observed that after much exploration from a well, it is abandoned for other oil wells when that one becomes less economical to operate. “So, the challenge of inventing new technologies to aid new crude oil discoveries and to reduce cost of operation would be discussed. More so, incessant crude oil theft in the region and possible lasting remedies would also be discussed because of the spate of crude oil theft in the region.”

Association bemoans business–retarding policies in LPG sector By Sulaimon Salau NvESTMENTS worth over Ilion) $400 million (about N64 bilmade by Liquefied Petroleum Gas (LPG) operators in the last five years, have been at the receiving end of bad policies of the Federal Government, going by the indications from the Nigerian Liquefied Petroleum Gas Association (NLPGA). Irked by what it described as government’s indifferent attitude to the LPG sub-sector, the association said that the aggressive investments covering the construction of terminals, depots and bottling plants, were undertaken by the operator amid risk of unfavourable policies. The President of NLPGA, Dayo Adeshina, told The Guardian, that the numerous bottlenecks created around LPG were indications that the government might not after all be interested in assisting the private sector to deepen the growth of LPG in the country. He wondered how the government expected the sector to grow with its harsh policy of high tariff and taxation on the product and equipment. According to him, while the private sector had been supporting the LPG subsector with

its various investments, the government had been slowing the pace of growth with the unfriendly and unfavourable business climate created by its policies. He noted that the recent scarcity of the product caused by the rift between Nigeria Liquefied Natural Gas (NLNG) and NIMASA had further thrown up the challenge of considering making further investments in strategic storage, which the private sector was once again ready to take up. This, according to him, was because it had become obvious that the NLNG could not be solely relied upon in the event that the crisis of that nature happened again. “The recent rift between NIMASA and NLNG may have ended albeit abruptly with the release of Gaz Providence for discharge of LPG, the situation however brings to fore the need for us to consider making investments in strategic storages as a way of averting the needless scarcity crisis which the industry was thrown into. I think with these strategic storages built in some coastal areas like Benin and Port Harcourt that can be accessed easily by road, it would be possible to cushion the effect of any crisis in the fu-

ture,” he said. He also observed that nobody would have imagined that a scarcity of such proportion would be experienced considering the fact that the market had always enjoyed seamless supply of the product from NLNG as there had been no disruption in the last six years. He; therefore, called on the government to provide the enabling environment for private investors to be able to put funds in the construction of strategic storages in the country so that there could be seamless supply of the product in the market. He noted that the government could intervene by prevailing on the financial institutions to peg their interest on loans at rates that is both reasonable and affordable. “I would like the federal government through the CBN to come up with a guideline that would make LPG investors be able to access loan at reasonable rates from banks for their investments. Making this possible, I believe would create a multiple effect on the economy as more employment opportunities and revenue earnings would be made through these investments,” he said.


52

THE GUARDIAN, Wednesday, August 7, 2013

ENERGY

‘How PIB law will ensure accountability in petroleum industry’ From Emeka Anuforo, Abuja UNITED States (U.S.)-based A energy law expert, Felix Ayanruoh, has tasked the National Assembly to put aside sentiments and pass the Petroleum Industry Bill (PIB) as it is. Ayanruoh, who holds a Master Degree in Energy Law and Policy from the University of Dundee Scotland, told The Guardian that the law would promote accountability in the system. He said: “First and foremost, the Minister of Petroleum Resources powers as provided for in the proposed PIB should not be personalised but institutionalised. This bill, if passed, will be with us for a very long time. The National Assembly should not be swayed by the debate comparing the petroleum’s minister’s power to foreign jurisdiction. Some have argued that the proposed bill gives the Petroleum Minister too much power while others posited

that the said powers are not different from what obtains in other jurisdiction. It is indisputable that the proposed bill confers prodigious powers to the Minister of Petroleum Resources. If passed ‘as is’, will certainly affect transparency, accountability and would jeopardise the reform process, which the bill sought to establish. “The National Assembly in deliberating the issue of the Petroleum Minister’s powers should not lose focus of our peculiar issues rather than that of other jurisdiction and analyse developmental issues, multiple dimensions of petroleum industry governance failures and smarter conceptual design and implementation of policies. Our government had quite often tended to merely follow precedents or get boxed into bureaucratic and ideological straitjackets rather than an excellent exposure to the diversity and complexity of development challenges.”

Speaking on the issue of fiscal framework and how it would attract foreign investors, he stressed: “It is important to state that the debate regarding this issue is not just restricted to Nigeria but the world’s hydrocarbon exploration and development industry. It is imperative to say that, although the Nigerian government and the international oil companies may have the common intent of creating maximum economic rent, their other goals may be far apart. Generally, the host government’s aim is to maximise economic rent for their country over time, while achieving other development and socioeconomic objectives. Designing a fiscal system where those companies who place the highest value on them acquire exploration and development rights does this. The investors’ aim is to ensure optimal return on investment consistent with risk profile and corporations’ strategic objectives - this is achievable

by finding and producing oil and gas reserves at the lowest possible cost and highest profit margin He advised government and the IOCs to sit on a roundtable compare notes and come to a compromise. “In addressing the issues of corruption, the National Assembly should ensure that, in its consideration of the Bill, the following issues should be a priority: harmonise domestic legislation and guidelines on the disclosure of oil and gas payments (such as EITI and extractive regulatory codes) with Dodd-Frank 1504 and the recent proposed European Union Oil and Gas anti-corruption law; onor international commitments on extractive sector transparency, human rights and anti-corruption legislation such as the U.S. Foreign Corrupt Practices Act, the UK Bribery Act 2010 and the OECD Anti-Bribery Convention; strengthen and enforce Corrupt Practices and other Re-

lated Offences Act (ICPC Act), Economic and Financial Crimes Commission (Establishment) Act, and Money Laundering Prohibition Act among others on erring oil and gas companies and public officials.” He also wants the bill to strengthen the capacity of regulatory institutions to monitor petroleum sector companies; provide access to information on petroleum industry operations to the general public and civil society, to improve public accountability; and enshrine strict rules on reporting and accountability in the oil and gas industry. On a recent Nigerian Extractive Industries Transparency Initiative allusion that PIB

AfDB to spend N1.6tr on energy, environmental issues By Roseline Okere FRICAN Development Bank A (AfDB) has unveiled plans to invest $10 billion (N1.6 trillion)

Well Engineering Manager, Shell, Ben Obaorekpe (left); Director, Society of Petroleum Engineer (SPE) Africa Region, Tony Ogunkoya; Vice Chancellor, UNIPORT, Prof Joseph Ajienka; and SPE International President, Egbert Imomoh, at the 37th Nigeria yearly international conference and exhibition of SPE in Lagos.

Seven Energy’s capitalisation rises to N99.2b By Roseline Okere EVEN Energy has increased capitalisation of its operation to $620 million (N99.2 billion) between 2012 and the first part of 2013. The Chairman of the company, Dr. Andrew Jamieson, which made this disclosure in Seven Energy’s 2012 yearly review, made available to The Guardian at the weekend, said that the company secured over $340 million of additional capital arranged through a combination of equity, long term project finance, listed convertible bonds and short-term working capital with a further $280 million arranged. According to Jamieson, the company refinanced its existing debt facilities to increase the availability of capital and to extend their maturity dates. Speaking on the company’s achievements in 2012, he stated: “I am pleased to be able to report significantly improved financial performance in 2012 with revenues 18 per cent higher at $102.4 million (2011: $86.8 million), EBITDA 340.2 per cent higher at $33.9 million (2011: $7.7 million) and a significantly reduced loss for the year of $6.6 million (2011:

S

$26.9 million). Net cash flow generated from operations was $77.8 million (2011: $34.6 million net outflow) with capital expenditure incurred amounting to $232.0 million (2011: $215.1 million). “In December 2012, we commenced commissioning of the first train of the Uquo Gas Processing Facility with nameplate capacity of 100 MMcfpd and the 62 km pipeline to Ikot Abasi to supply gas to the 190 MW Ibom Power station. Nominations for delivery under this 10-year, 43.5 MMcfpd take-or-pay contract commenced in March 2013 and first commercial deliveries are expected to commence midyear following completion of a major maintenance programme at Ibom Power station”. He added that the Final Investment Decision was made to proceed with the second phase of the Uquo Field development in order to supply 131 MMcfpd of gas under a 20-year take-orpay contract to the 560 MW Calabar NIPP power stations in January 2013. Jamieson explained that this second phase of the Uquo Field development involves the construction of a 37 km pipeline from Uquo to Oron, installa-

tion of additional processing capacity to the Uquo Gas Processing Facility and the drilling of three additional supply wells on the Uquo Field. “Good progress is already being made with the second, 100 MMcfpd, train of the Uquo gas processing facility nearing completion. The right of way land acquisition for the Oron pipeline and the right of way clearance are complete and pipe-laying activities are scheduled to commence before the end of 2013. “Development of the Stubb Creek oil field is still ongoing but progress has been slower than planned due to on-site construction delays and delayed access to tie-in to ExxonMobil’s Qua Iboe terminal. First production from the Stubb Creek Field is now being targeted for the third quarter of 2013, he said. Jamieson hinted that field operations during 2012 were exclusively focused on OMLs 4, 38 and 41 in which the company has a participating interest through its Strategic Alliance Agreement with NPDC. “Under the terms of our Strategic Alliance Agreement with NPDC, we receive cost recovery in the form of lifted barrels and are

entitled to a share of incremental production above a defined baseline”, he added. Dwelling on the company’s outlook, he said that the commissioning of the first phase of the Uquo Field development was a major milestone for the Group, but the second phase to supply gas to the Calabar NIPP power station is, in many ways, a transformational project for Seven Energy and will be the principal focus during the second half of 2013. He added: “The experience gained to date on our infrastructure capital projects, together with the organisational changes we have made, will be invaluable to delivering the Calabar project on schedule and on budget by mid-2014. “An extensive appraisal, development and workover drilling programme and facilities debottlenecking programme is also in progress on OMLs 4, 38 and 41, with the operator targeting gross field production of 60,000 bopd by the end of 2013. We are now looking to expand our upstream asset portfolio and infrastructure network in the Niger Delta to provide long term production, reserves and earnings growth and to enhance shareholder value”.

would eliminate the 13 per cent derivative fund accrued to oil producing state and the weakening of transfer pricing, he described it as misconceived, calling for a ‘reality check’. He stressed: “We need a reality check. Attacking the PIB on the issues stated above is misconceived, cruel, inflammatory, disturbing and unnecessary. It needs to stop. The demagogues would have the public believe that the PIB will eliminate the 13 per cent derivative revenue that accrues to oil producing states, impact on transfer pricing on revenues accruing to the federal government would be devastating. Nothing could be further from the truth. The PIB could not have been clearer

to help African countries strengthen their capacity to respond to climate change and mobilise further resources from existing and new sources of climate finance, including the private sector and market mechanisms. It stated that the bank has installed 1,110 megawatts of power capacity, which it believed was enough power to supply 20 million African households. The bank said in its 2013 yearly development effectiveness review towards sustainable growth for Africa, released recently, that climate change was one of the most serious challenges to sustainable growth and development in Africa, and a significant threat to the achievement of sustainable results by the bank’s investment portfolio. It disclosed that under the bank’s Climate Change Action Plan 2011–2015, “we are addressing these challenges at different levels, including through capacity development, finance and knowledge.

“We are determined to ensure that our investments are able to withstand the impacts of climate change in the future. To that end, we are building staff capacity and developing tools and procedures to assess climate vulnerabilities and ensure resilience. “Projects starting between 2007 and 2009 have all been retrospectively screened and adapted where necessary, while newly designed projects should now have climate resilience built into their design. In 2012, 65 per cent of our new projects were assessed as climateproof, which represents progress but is short of our 75 per cent target. It noted that increasing access to affordable and reliable energy can be a key driver of future growth for Africa, adding that nearly 600 million people in Africa lack electricity connections, and the electrification rate in rural areas was 10 per cent. It added that around 85 per cent of rural Africans continue to burn biomass for fuel, which is damaging to health – especially for women – and to the environment. “Yet Africa has vast clean energy reserves in solar, wind and others”.

Firm to build capacity in power generation By Azeez Olorunlomeru horeline Group is set to reSpanel lunch its electrical control under the umbrella of Shoreline panel. Speaking at a media parley in Lagos, the Chief Operating Officer, Shoreline group, Phil Wharton, said that the relaunching was necessary as it would enhance the production and to be more efficient in competing with the international market details as well as providing job for teeming unemployed youths in the country. He emphasised the need for the country to put more capacity in place to be able to have more mega station build in the country in order to solve the problem of incessant power failure. “Because we are more involved in power, so we think producing power and distributing it to the people is critical”, he said. He noted that for the country to do more in the area of power generation, transmission and distribution, the vested inter-

est of importing the generating set must be addressed. Wharton explained that having the ability to build panels within its own facility complements the power generation business, which has enabled the company to meet the needs of its customers. He also stated that the company is geared towards driving the modernisation and rehabilitation programme of Africa’s power generation with a compete range of power generation equipment in modular and static form for raid development with a skilled manpower as well as turnkey solutions. General Manager of the company, Gabriel Okoebor, confirmed that the Shoreline Power acquired the ABB Switchgear manufacturing facility in Ilupeju and talks are at an advanced stage for the company to purchase other ABB manufacturing facilities. He stated power generation in its standard practice from proposal to completion can take up to six to seven years before it can be delivered for use.


THE GUARDIAN, Wednesday, August 7, 2013

53


54

THE GUARDIAN, Wednesday, August 7, 2013


THE GUARDIAN, Wednesday, August 7, 2013

BUSINESS | 55

Stakeholders hinge industries’ productivity on effective machine maintenance Stories by Femi Adekoya the engineering sector have emphasized Sin TAKEHOLDERSwithin the need for optimum maintenance of industrial equipment order to enhance productivity as well as profitability of many industries. Besides, the stakeholders decried the growing patronage of fake and low quality engineering products in the country, citing it as a key factor to low productivity output. Speaking at an Industrial Maintenance Optimisation Conference organised by EISNL Engineering Solutions and Drives Limited in Lagos recently, the Managing Director, EISNL, Ajibola Olajide noted that low productivity witnessed in the industrial sector was often as a result of breakdown of machines that were not routinely maintained. According to him, the rising patronage of fake and low quality engineering products in the country, contributed about 25 per cent of profit loss for manufacturing companies and 85 per cent of productivity loss. He explained that the dearth of quality engineering solutions and drive outlets informed the decision of the firm to extend its services to industries, while decrying the proliferation of low quality engineering solutions in the country. Olajide added that stakeholders had concluded arrangements to embark on continuous enlightenment to stop the practice, noting that the conference was a means to such end. He pointed out that lot of products in the market were either fake or re-cycled of used parts, stressing that such products had zero value for the economy and were also short changing Nigerians of their hard earned resources. “We have decided to bring stakeholders together to seek leeway on how preventive maintenance culture can be encouraged. We need to reduce the level of inventory recorded. “The focus of the conference is to address issues that arise in maintenance optimisation in production, especially in the manufacturing process. Maintenance is the key issue in any manufacturing line. The more uptime and availability we have for plants, the more productive manufacturers become, even as such firms’ profitability will be enhanced,” he added. On the issue of procurement, he said: “The issue many people have is that they are not comfortable buying from unidentified sources. To this end, we have decided to cater for the gap by making quality products available to manufacturers. We work with

world-class engineering firms to provide bespoke services to customers. We also offer continuous training services to clients as value–added services in order to cater for their servicing needs. Also, the Executive Director of the company, James Wood, blamed ignorance on the part of some stakeholders who either use or fabricate fake spare parts saying both adulterated and original cost the same figure in the final analysis. Reliability Manager, SKF, Africa, Kutsi Kaja, emphasized the need

for industries to embrace a proactive method to maintenance rather than deploying it as a corrective measure. “Most times, deterioration advances towards failure of a machine if lack of detection of early signs of such a failure are ignored. Large inventories, overtime and ignoring of preventive measures often times result in the disruption in the production process and this should be addressed by adopting a proactive approach to maintenance,” Kaja added.

Regional Director, SKF North West Africa, Mahdi Sebti (left); Executive Director, EISNL Engineering Solutions and Drives Limited, James Wood; Managing Director, EISNL, Ajibola Olajide; and Country Manager, SKF, Dare Oyegunle during the Industrial Maintenance Optimisation Conference organised by EISNL in Lagos.

BUA restates commitment to backward integration UA Sugar refinery, has B unveiled plans to ensure effective implementation of federal government’s policy on backward integration on sugar. Chief Operating Officer for BUA Group, Chimaobi Madukwe, while speaking to journalists in Lagos noted that the recent visit of the Minister of Industry, Trade and Investment to BUA Group is an indication of government’s enormous support for industrial group in Nigeria, through the National Sugar Development Council (NSDC) and other relevant agencies. He noted that the company’s refinery was operating on a plant capacity utilisation level of 95 per cent and was working towards achieving 100 per cent capacity, with a second sugar refinery of the same installed capacity set to be commissioned in PortHarcourt, Rivers State next year. He said: “As part of strategic plans to reduce the importation of raw sugar and ensure the effective implementation of the Federal Government Policy on Backward Integration, Lafiaji Sugar Company in Kwara was acquired by BUA in the year 2008 through the federal government privatization exercise. “The purpose of this acquisition is to establish a standard vacuum pan factory and 50,000 hectares of sugarcane plantation. The project is to process 5,000,000 tons of cane during a 166-day grinding season to produce 500,000 metric tonnes of

refined sugar annually. “However, the development will be such that can be expandable from the 6th year to produce 1,000,000 metric tonnes of sugar annually. The related infrastructure required is also to be established. “We recently launched another backward integration scheme with the acquisition of 100,000 hectares of land in Kogi State for the commencement of another sugarcane plantation before the end of the year.” He added that the Governor of Kogi State, Capt. Idris Wada, has also confirmed the allocation of land to BUA for the set-

ting up of the proposed plantation. We are pleased with the support of governor in assisting us towards establishing the sugar plantation in Kogi State. “We promise to support the government and the people of the state, and to be loyal and socially responsible corporate citizens. Executive Director, BUA Sugar Refinery, Siva Kuma, noted that with more favourable industrial policies coupled with the company’s refinery, BUA can increase production from the current 95 per cent to 100 per cent capacity and even expand to other states as well

as create more jobs for Nigerians. Managing Director, BUA Sugar Refinery Limited, Goddie Isibor stressed that the company was committed to the president’s transformation agenda, and to the minister’s passion for an interest in self-sufficiency in sugar production, as enunciated in the Nigeria Sugar Master Plan. He pointed out that it was as a result of this commitment that it signed the backward integration programme with the minister. He said that the company had imported 220, 000 metric tonnes of sugar from January to July this year adding that

the National Sugar Development Council (NSDC) had allocated only 305,000 metric tonnes of raw sugar to the company. “This leaves a balance of 85,000 metric tonnes for us to import for the rest of the year. However, presently we are operating at 95 per cent capacity utilisation in the last two months and production rate has been at an average of 42,000 metric tonnes per month, which translated to 640,000 metric tonnes per annum. “This means that sugar companies would certainly run out of raw sugar and, therefore, shut down the factory, in

the last quarter of the year. When factories shutdown or reduce production, smuggled products take over, workers become redundant and even funding for backward integration is affected. But we know that this cannot be the intention of the master plan and we humbly request that this first allocation of sugar should be 640,000 metric tonnes,” he said. He stated that BUA Sugar Refinery started operations in September, 2008 and has an installed capacity of 720,000 metric tonnes per annum, using centralised process control automation which is the latest in sugar technology.

FAO advocates withdrawal of hazardous pesticides in developing countries uct can be handled without ly hazardous products should es voluntary standards of conthe tragic inci- and the environment. In a statement posted on its not be available to small-scale duct for all public and private unacceptable risk to humans F23 OLLOWING dent in Bihar, India, where and the environment,” the school children died after website, FAO stated: “The inci- farmers who lack knowledge entities involved in pesticide eating a school meal contaminated with monocrotophos, the Food and Agriculture Organisation (FAO) has emphasized the need for developing countries to speed up the withdrawal of highly hazardous pesticides from their markets. Monocrotophos is an organophosphorus pesticide that is considered highly hazardous by FAO and the World Health Organisation. According to the organisations, experience in many developing countries has shown that the distribution and use of such highly toxic products very often, poses a serious risk to human health

dent in Bihar underscores that secure storage of pesticide products and safe disposal of empty pesticide containers are risk reduction measures which are just as crucial as more prominent field-oriented steps like wearing proper protective masks and clothing. “The entire distribution and disposal cycle for highly hazardous pesticides carries significant risks. Safeguards are difficult to ensure in many countries.” Already, there is a consensus among international organisations, including FAO, the World Health Organisation and the World Bank, that high-

and the proper sprayers, protective gear and storage facilities to manage such products appropriately. “FAO therefore recommends that governments in developing countries should speed up the withdrawal of highly hazardous pesticides from their markets. “Non-chemical and less toxic alternatives are available, and in many cases integrated pest management can provide adequate pest management that is more sustainable and reduces the use of pesticides. “The International Code of Conduct on Pesticide Management, adopted by FAO member countries, establish-

management. This code has been broadly accepted as the main reference for responsible pesticide management. “The code states that prohibiting the importation, distribution, sale and purchase of highly hazardous pesticides may be considered if, based on risk assessment, risk mitigation measures or good marketing practices, are insufficient to ensure that the prod-

statement added. According to FAO, many governments had concluded that prohibition of the pesticide was the only effective option to prevent harm to people and the environment. Presently, the pesticide is prohibited in Australia, China, the European Union and the United States, and in many countries in Africa, Asia and Latin America.

FAO therefore recommends that governments in developing countries should speed up the withdrawal of highly hazardous pesticides from their marketsNon-chemical and less toxic alternatives are available, and in many cases integrated pest management can provide adequate pest management that is more sustainable and reduces the use of pesticides.


THE GUARDIAN, Wednesday August 7, 2013

56 GLOBALSTOCK

GlobalStocks U.S. accuses Bank of America of mortgage-backed securities fraud •Wall Street slips on uncertainty of stimulus plan

Traders at the stock market HE U.S. Justice Department on Tuesday said it The S&P 500 is on track for its biggest decline on the Dow component by $25 to $175. IBM (AMZN.O) founder Jeff Bezos agreed to buy the T had filed a civil lawsuit against Bank of since June 24 as investors continue to take prof- topped the list of the Dow's 10 worst-performing publishing company's newspaper assets for $250 million. Earlier, the stock touched a 52America for what government lawyers said was a its from the recent rally that lifted the Dow Jones stocks. fraud on investors involving $850 million of residential mortgage-backed securities. The government filed the suit in U.S. District Court in Charlotte, North Carolina, the Justice Department said in a statement. Meanwhile, stocks fell on Tuesday, putting the S&P 500 on track for its second straight drop after comments from a pair of U.S. Federal Reserve officials left investors unsure about the timing of a possible reduction in its bond-buying program. Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, told Market News International in an interview that the Fed could begin trimming the size of the stimulus program as soon as September, but might wait longer if the expected economic growth in the year's second half fails to materialize. Later in the session, Chicago Fed President Charles Evans said the central bank will probably decrease its massive bond-buying stimulus program later this year, and depending on the economic data, could do so as early as next month. Fed officials "are all hedging themselves, which is why the market continues to just be a little bit confused and why it is going to churn," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York. "There is really no reason at the moment for the market to go higher because it is still too unclear." One catalyst for Monday's downturn in the Dow and the S&P 500 was provided by Richard Fisher, president of the Federal Reserve Bank of Dallas. He said he supported scaling back the central bank's stimulus next month unless economic data takes a turn for the worse.

industrial average and the S&P 500 to back-toback record closing highs late last week. The Dow Jones industrial average .DJI fell 90.03 points or 0.58 percent, to 15,522.10. The S&P 500 .SPX slipped 9.80 points or 0.57 percent, to 1,697.34. The Nasdaq Composite Index .IXIC dropped 27.67 points or 0.75 percent to 3,665.29. Earlier, the Dow fell as low as 15,473.40, while the S&P 500 touched a session low of 1,693.29, and the Nasdaq hit an intraday low of 3,654.67. The S&P 500 has risen for five of the past six weeks, gaining more than 7 percent over that period. The S&P 500's 50-day moving average now stands at 1,692.77, which could serve as a support level in any further market decline. The market's swings were exaggerated by thin trading volume, which was light for the second consecutive day. Monday marked the lowest volume for a full-day session so far this year. With major U.S. economic data like the nonfarm payrolls report and earnings from bellwethers out of the way, volume is expected to be light throughout the week. The biggest drag on the Dow was International Business Machines Corp (IBM.N), down 2.4 percent at $190.87, after Credit Suisse cut its rating on the stock to "underperform" from "neutral," saying organic growth would be challenging in the future. Credit Suisse also cut its price target

Retailers' shares ranked among the day's biggest losers. American Eagle Outfitters (AEO.N) shares tumbled 13.7 percent to $17.24 a day after the retailer said its second-quarter profit would be hurt by weak sales and margins. A number of analysts downgraded the stock. The stock hit a 52-week low of $16.60 and gave investors a reason to unload the shares of other retailers that cater to teens and young adults. Urban Outfitters (URBN.O) shares fell 2.9 percent to $42.41 and Aeropostale (ARO.N) slid 2.2 percent to $14.62. The S&P retail index .SPXRT slipped 0.4 percent. Cognizant Technology Solutions Corp (CTSH.O) shares gained 2.3 percent to $75.01 after the company reported a 20 percent rise in second-quarter revenue. Fossil Group Inc (FOSL.O) shares surged 17.3 percent to $126 after its results. Of the 418 companies in the S&P 500 that have reported earnings for the second quarter through Tuesday, Thomson Reuters data showed that 67.5 percent have topped analysts' expectations, in line with the average beat over the past four quarters. On the revenue side, the data showed that 54 percent have reported revenue above estimates, more than in the past four quarters but below the historical average. Shares of the Washington Post Co (WPO.N) climbed 4.3 percent to $592.95 after Amazon Inc

Fed officials "are all hedging themselves, which is why the market continues to just be a little bit confused and why it is going to churn," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York. There is really no reason at the moment for the market to go higher because it is still too unclear.

week high at $605. On the economic front, the U.S. trade deficit dropped in June to its lowest level in more than 3-1/2 years. Exports climbed to a record high and imports fell, suggesting an upward revision to the growth rate for second-quarter gross domestic product. The trade gap shrank to $34.2 billion, compared with economists' forecast that it would narrow to $43.5 billion.

Nikkei rebounds as Sony tumbles APAN'S Nikkei share average rose 1 per cent Jpension on Tuesday as Reuters story that a Japanese fund might buy more stocks and the yen's retreat sparked short-covering in a holiday-thin trade. The benchmark Nikkei gained 143.02 points to 14,401.06, after dropping as low as 14,031.61, while the broader Topix rose 0.8 percent to 1,193.66 in thin trade, with 2.26 billion shares changing hands. Sony Corp was one of the notable losers, falling 4.6 percent and was the fourth most traded stock by turnover on the main board after it rejected proposals from activist shareholder Daniel Loeb of Third Point to spin off a part of its entertainment business. The dollar reversed early declines against the yen after sources told Reuters that the pension for Japan's civil servants is considering changing its investment strategy to allow more of its $80 billion to go into stocks and less into domestic government bonds.


THE GUARDIAN, Wednesday, August 7, 2013

57

Equities market on recovering curve ALL SHARE INDEX 2008 - JUNE 2013 Aruna Oteh, DG SEC.

MARKET CAPITALISATION 2008 - JUNE 2013

RESEARCH PREPARED BY GOBI COMMUNICATIONS LTD. WITH DATA FROM NSE

By Godfrey Obioma HEN the Nigerian stock market took a dive in 2008 through 2011, it was a big loss for investors who watched helplessly as N3.547 trillion went down the drain with market capitalization going down from N10.180 trillion January 1, 2008 to N6.553 trillion January 1, 2012. The All-share index lost 37, 260 basis points from 57, 990.22 to 20, 730.63 basis points. But now, the good days appear to be returning as the market capitalization rose to N12.017 trillion as at June 13, 2013 with all share indexes at 37,406.73 basis points. The Global economic downturn during the period of the crisis compelled international investors to reshuffle their portfolios around the world to rebuild their balance sheet back home. And the result was flight of hedge funds from frontier and

W

emerging markets like Nigeria. The over exposure of Nigerian banks to margin loans and the industry crisis worsened the equity market slump as over 40 percent of the market was controlled by banks which called in their facilities to meet their obligations. This stilled liquidity with further decline in stock prices. However, the Central Bank’s intervention which, among other steps, created the Asset Management Corporation of Nigeria (AMCON) has brought succour to the market. AMCON took over the non performing loans from banks and freed these financial institutions to perform their core banking functions. The reforms engineered by regulators like the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) also served as catalysts for the market recovery. For example, part of the vision of the new leadership of the NSE was to position the bourse to become the leading exchange in Africa and in sub-Saharan Africa. “Our key initiatives center around growing our market capitalization, leveraging on increased listings, product diversity, enforcement, enabling technology, enhanced market structure, investor education and changes to policy”, the management declared on coming on board. Part of the goal was to create 5 Products in 5 Years spanning equities, Bonds, ETPs, Options, foreign exchange and interest Rates futures. To realize its dream, the Nigerian Stock Exchange mandated companies to publish their audited and unaudited results on time. Unlike before when companies delayed reports for 9 to 12 months, a larger number of them

Oscar Onyeama, CEO Nigeria Stock Exchange

RESEARCH PREPARED BY GOBI COMMUNICATIONS LTD. WITH DATA FROM NSE now release their results within 3 months at the end of each period. In line with international standard, NSE has adopted 21st Century Technology Strategies which involves creation of technology infrastructure –X-Net (VPN) for brokers; development of the NASDAQ OMX X-stream trading platform; a new corporate database; and standardization (using Financial Information exchange (FIX) protocol) market data services. To further boost investor confidence, it is working to create strong regulatory environment in the area of investigation Panel; disclosure Standards with updated penalties for violations; corporate Governance automated surveillance; implementation of Market Quality analysis and first-rate X-Compliance reporting. Already, the Council of the exchange is advocating elimination of VAT; removal of stamp duties; offer of tax holidays or reduced tax rates for companies that list. To compliment these efforts, the Federal Government and the National Assembly are contemplating policies to encourage large firms in the Telecoms, Power, Agriculture, and Mining to list on the NSE as well as the listing of the SWF Funds. On its part –the Bureau of Public Enterprise (BPE) is rooting for portion of the shares of entities earmarked for privatization to be listed on the exchange and sold to strategic investors. The SEC has opted for the development of the Asset Management industry for asset managers just as the Federal Ministry of Finance spearheaded the Broker Margin Debt Resolution. The forbearance package has reduced stockbrokers’ debt overhang and allowed them clean up their balance sheet and return to their traditional role in the market. The authorities of the exchange understand the critical nature of technology. In 2011, the Exchange performed an audit on its technology infrastructure –network bandwidth, availability, up-time and processing capabilities –to identify

opportunities for improving access to the NSE’s network. The Exchange successfully cut unnecessary wastage across the board. This resulted in reduced latency, faster communication with trading systems, higher reliability, improved processing times, and 99.9 percent availability of Web and mail services. In 2012, it launched its high-performance, high-capacity, low-cost VPN (X-net) for brokers which supports the NSE’s strategy to enable cost-effective and efficient execution of trades from remote locations. This is to form a major backbone of the ongoing technology transformation. It has also executed an agreement with NASDAQ OMX for the deployment of the new trading platform and X-stream Scheduled for launch in a Q3 2013. When effective, the Xstream matching engine will turn the NSE as the fastest trading engine on the continent. According to NSE, ‘leveraging on FIX protocol, SDKs and SWIFT capabilities, the new trading engine will facilitate the Exchange’s goal to become a key player in the global market. And by combining automation with reciprocity, the NSE will be able to link markets across borders, to attract a broader investor base, and to increase the number of companies that look to the market for growth’. Part of the innovations introduced was the creation of Market Makers and choice of some stocks as market making stocks as well as the plan to commence securities lending. The role of market makers was among other, to enhance liquidity. However, the opportunities opening up in the market initially appeared to be attracting more foreign investment than locals as offshore investors controlled over 75 percent trading in 2012. But since 2013, local investors are coming on strong with 55 percent of transactions in their control.


58

THE GUARDIAN, Wednesday, August 7, 2013


59

THE GUARDIAN, Wednesday, August 7, 2013

Bumper harvest awaits investors in Dangote Sugar in 2013 -Abdullahi Sule pable of making profits and paying dividends every year. There are some who are investing and the moment the company’s share prices improve, they will cash in and get their money. So the message I am sending to them is that when the value of the company improves, they should invest more. locally, our efficiency will dou- Dangote Sugar has been inble and our profitability will al- volved in backward integration most increase by one and half of what we are doing at the moment and Dangote Sugar Refinery is at the forefront of this backward integration policy. Ques: In spite of the fact that you import a large proportion of your raw material, Dangote Sugar stock was able to record appreciation both between 2011 and 2012 as well as first quarter of 2013. What, in your opinion is the driving force? Ans: As I mentioned earlier, some of the factors include increase in our market share as a result of the new strategy. We are approaching the market differently, using the new team that came into being since November 2011. The new management came in with new ideas of approaching the Nigerian market. Part of the production strategy is to extract sugar from the raw material we import. As a result of this, we have seen the yield of the finished sugar produced from the raw sugar move from about 92 to 96 percent. That means that we have been able to improve our extraction up to about 4 percent. Secondly, we introduced a lot of incentives to shareholders and customers. By having those kinds of incentives, we have seen our market share improve. A good example is in the year 2011, when we sold roughly about 2.2million of 50kg. But in the year 2012, we sold about 30 percent more of what we sold in 2011. In Q1, 2013, we have done another 30 percent compared to the improvement in 2012. So, this year is really going to be a bumper harvest for Dangote Sugar. Ques: The objective of the investor is to maximize returns on investment. What have been the earnings and dividend profiles of Dangote Sugar in the last two years? Ans: In 2007, we paid dividend of about 70 percent of the earnings. In 2008, we paid dividend of another 70 percent. We didn’t see as much improvement in 2009 and 2010 as dividend paid went down to 60 percent. In 2011, we gave less than 60 percent of the profit we made. This year, we have given about 60 percent of what the company earned. So you can see that the company is gradually going back to the numbers of the past good years. Ques: The equity market started picking up from later part of the 2011 and 2012. In response to the recovery signs, investors are beginning to take positions again. What is Dangote Sugar doing to attract investors back to its stock? Ans: We are targeting retail investors who are looking for quick and consistent returns. There are investors who want to be sure that companies are ca-

As part of the strategies to reduce production cost and further grow value for investors, Dangote Sugar is planning backward integration. Abdullahi, Sule, CEO, in this interview with GODFREY OBIOMA, sheds more light. Ques: Our research shows that in January 2012, Dangote Sugar recorded capital gain of 47 percent. In the first quarter of 2013, it appreciated by 13.26 percent. Its P/E ratio is also one of the lowest. The company’s profit after tax for the 2012 financial year was impressive. But turnover declined. Could you give insight into the performance? Ans: HAT happened was that out of all the sugar we produced, 99 percent were sold in 50kg bag. In 2011, we sold at N10,000 per bag. However, the same 50kg bag was sold at the range of N6,700 and N7,000. This is the kind of numbers that created the turnover, while the volume of sales actually improved significantly between 2011 and 2012. Therefore, we sold more volume of sugar at lower prices. So we didn’t drive the turnover, instead what we did was actually to drive the volume. Ques: In order to reduce your cost of operation and produce efficiently, don’t you think that sugar cane, the major raw material should be produced locally instead of importing it? Ans: You are right in thinking that producing sugar cane locally will reduce cost. As a matter of fact, the new Federal Government law encourages production and refining of sugar cane locally. Nigeria’s consumption is put at between 1.4 to 2 million metric tonnes per annum but the country does not produce more than 50,000 metric tonnes of sugar cane locally and all that production comes from Dangote Sugar Refinery through Savannah Sugar Company is the only company producing sugarcane here in Nigeria. The Federal Government went into the production of sugar cane locally in the early 70’s when Bachita Sugar Company and a couple of other sugar companies like Savannah Sugar Company were built to boost sugar cane production. But so many factors affected the plan to produce sugar cane locally. The only company that is doing anything at all in that direction is Savannah Company which was privatized and bought by Dangote Sugar Refinery. Even then, the production is not at a level that is acceptable because we have refinery that has a 1.4 metric tonnes per annum yet the entire production of sugar cane in the country is 50,000 metric tonnes. This is not enough to meet the needs of Dangote Refinery not to talk of other refineries in the country. To answer your question, yes if we can produce sugar cane

W

as evident by our acquisition of Savannah Sugar. We are also planning to acquire farms in some parts of the country for the purpose of planting sugar cane. These are values we are adding to the company to enhance growth. There are times when dividend is important. And Dangote Sugar has been consistent with dividend payment.

Eng. Abdullahi A. Sule


RESEARCH PREPARED BY GOBI COMMUNICATIONS LTD. WITH DATA FROM NSE

60 THE GUARDIAN, Wednesday, August 7, 2013


61

THE GUARDIAN, Wednesday, August 7, 2013

Goldbanc creates instruments to enhance market liquidity

- Abayomi Sanya One of the drawbacks of the Nigerian equities market is paucity of products. Goldbanc Associstes is in the business of developing instruments. It’s CEO, Abayomi Sanya, in this chat with analysts from Gobi Communication Ltd talks about the company’s plan to create products. Q: Between 2011 and 2012, Diamond Bank appreciated by 225.37 percent and 10.09 percent in Q1, 2013. What drove the price gains? Answer: THINK the new management in Diamond Bank actually has cut its teeth from the point of view of refocusing its business and they also recovered a lot of the bad debts. If you look at the nature of Diamond Bank’s balance sheet, you will see that recovery helped them. Diamond Bank is one of the few banks that focus on small and medium size enterprises which constitute the bulk of the economy. The bank has successfully created a niche for itself in SMEs and has retained leadership in that area because they understand the techniques and mechanics of how to manage those in that sector. Operating in this segment of the economy gives them an edge among its peers and by the end of 2013 financial year; they are likely to further perform impressively. Question: Our analysis of GTB result showed that there was increase in turnover from N236 billion to N288 billion while profit was up from N51 billion to N87 billion. What are your comments on the result? ANSWER: I believe a lot of the loans the bank wrote off in the previous financial years must have been recovered, which may have enhanced the profit. GTBank is also focused; they know their area of strength and concentrate on it. Besides, the bank has strong and stable management that employs some winning strategies that drive growth. This gives them competitive advantage in the industry. Don’t forget that the bank’s branch network is spread across other regions; they have branches in countries like Ghana, Gabon and across the West Coast, all of which are making profits. So they all contribute to the bank’s profit growth. Question: What, in your opinion, are the return prospects for the equities market for the remaining part of the year? Answer: In 2012, we saw Yield to Date growing beyond 35 percent. And this year, the market has done well. So I expect this to continue in the remaining part of the year. Question: What are likely to drive the market growth? ANSWER: Number one driver is return of confidence to the market. Part of the reasons for return of confidence is the new structure of the market, in the sense that more players like market makers are now operating in the market. This has enhanced liquidity into the market. The plan to introduce security lending into the market will encourage development of other products like options. The other reason the market should do well for the rest of the year is the fact that many of the stocks are undervalued. Directly or indirectly, liquidity came back to the economy and the only investible assets are these underpriced equities. Stocks like UBA that was trading at about N5.00 sometime in the past has appreciated to N12 partly because of increase in liquidity. So investors are likely to take positions in underpriced stocks like UBA First Bank and GTB. If the market has performed so well early in the year, I see it doing at least additional 15 percent for the rest of the year. Question: Nigeria was the second best performing stock market in Africa next to Egypt. Do you see Nigeria over taking this year? Egypt

RESEARCH PREPARED BY GOBI COMMUNICATIONS LTD. WITH DATA FROM NSE

I

Abayomi Sanya, MD Answer: Yes, it possible. If in the first quarter it could do over 19 percent and more than that in the second quarter, it could beat Egypt. And already, the results we have seen so far support the optimism. With the ongoing reforms, if the impressive results continue, many more investors will enter the market, and I don’t see the market going down drastically for the rest of the year. Question: What has been the role of stockbrokers in all of these market growths? ANSWER:The role is to offer investment advice to their clients in a professional manner and in accordance with the rules, based on their analyses. It is a lot more difficult now for operators to manipulate prices because the system shows price discovery mechanism which makes the market transparent. So, to that extent, there is no manipulation this time around and the truth of the matter is that SEC and NSE are now in the lead unlike before when operators were leading the way. So, this time around, stock brokers will do a catching up and so it will be difficult for them to manipulate the market. Regulators will easily detect such offenders. So, it is only credible brokers that will stay in the market. The market will fish him out any operator that tries to short change investors. Question: For your company, to what extent has it been contributing to the growth and investors’ value? ANSWER: We are an issuing house and are also into structured finance. Our role is to create new products like the Real Estate Investment Trust we developed in 2008. We plan to create new instruments like bond with option where an issuer can enjoy a single digit rate and to go further to see how the infrastructural bond can come to fruition. Infrastructure Bond has not been well structured in the country. That is why we are yet to find any of those bonds in our market. So we are coming out with a step by step approach for an issuer to issue such instruments, and how a market and the lenders or the equity contributors or the investors can take advantage of these credible instruments. We are also in the business of assisting market makers group in terms of identifying what assets those that have money and the skill can take positions in. The purpose is to help inject liquidity into the market. and how they can use those funds that have been tied down on assets, bring them out and do more work than they are doing now.


THE GUARDIAN, Wednesday, August 7, 2013

62

Some stock prices ridding on low float, new investors’ entry - Garba Kurfi. As the Nigerian equities market stages a recovery, a number of stocks and sectors have emerged as growth drivers. But a study by GOBI COMMUNICATIONS LTD shows that many that recorded capital appreciation did so on grounds of low floats which make the affected stock prices jump. Garba Kurfi, CEO, APT Securities and Funds Ltd, in this interview with GODFREY OBIOMA, takes a look at the market. Ques: Our study shows that one of the stocks that demonstrated some resilience in 2011 when the market was still in crisis was Okomu Oil Plc. What would you attribute this to? Ans: F YOU look at the outstanding shares of Okomu Oil Plc, it is less than 500 million. And the distribution is

I

skewed in favour of very few investors who control more than 80 percent of it. This means that not many investors have the shares for trading. The other reason is its dividend payment profile; even when the market was down, Okomu Oil Plc was able to perform above average. In 2011, they paid N5 dividend, when other stocks, like Nigerian Breweries Plc

could not even pay N3 dividend per share. Even oil company stocks could not compete with Okomu Oil Plc. But in the true sense of it, Okomu Oil Plc was not even consistent because at a time, the price crashed to N10 per share in 2010 before it bounced back. So Okomu Oil Plc was not really that resilient. If you are looking for a resilient stock, UACN Plc is one. UACN Plc never came down throughout this period. The lowest price UACN Plc ever came down to was N29.00 per share. And the reason UACN Plc was resilient despite the crisis has to do with the new management, the confidence they instilled in investors and their

diversification exercise. UACN Plc is growing because of the coming of Actis. When UACN Plc did their rights issue in 2007 at N12, Actis took a large junk of it. When UACN did its rights issue, shareholders rejected it. So Actis which is a foreign investor decided to take it. Since Actis entered into UACN Plc, they have transformed the company completely. In 2003 and 2004, UACN was trading at about N4. By the time Actis entered into UACN Plc, it totally transformed the company. For example, Mr Biggs entered into an alliance with a South African company. With the entry of Actis, members of the UACN Group have been doing well. For example, UACN property is

doing well. CAPCL was transformed into a performing company. So UACN is a well diversified conglomerate which gives them an edge over their peers like UTC, AG Leventis and Challerams. Ques: Could you specify areas of UACN diversification? Ans: Initially, they were all under a conglomerate made up of UTC, AG Leventis , Chellarams etc. Under the new regime, UACN transformed MR Biggs which expanded beyond Lagos. The Cereal Company, based in Jos which produces animal feeds was also transformed and they now control more than 60 percent of the market share. The transformation of the company made it a cash cow. There is also the UAC Properties which introduced the Real Estate Investment Trust (REIT) which helped it to enhance its capacity and cash flow. Portland Paint which divested from WAPCO is 60 percent owned by UAC Plc., which was made possible because of the coming of Actis. The result of the transformation is that the peers of UAC Plc. are trailing it in price. For example, UTC is still trading below N1, AG Leventis less than N2 and John Holt less than N2. These were the contemporaries of UAC Plc. in the early 90s when they were trading ahead of UAC Plc. Ques: What about Sterling Bank which also appreciated by over 200 percent between January 2011 and the same period in 2012. What was responsible for the large capital gain? Ans: One of the reasons for Sterling Bank price appreciation during that period was the restructuring (including) share reconstruction which the bank embarked upon following the merger with Equitorial Trust Bank. By share reconstruction, the number of shares was reduced which also reduced the float or outstanding shares of Sterling Bank. Their merger with Equitorial Trust Bank helped them because ETB controls more than

Kasimu Garba Kurfi MD/CEO 70 percent of the business of GLO, and Glo is a cash cow. This helped Sterling Bank to bounce back and the bank will continue doing well because they have doubled their dividend and their earning to more than 2 digits. Ques: We also discovered that Champion Breweries Plc. did very well by capital appreciation. Could you explain this? Ans: It is not only Champion Breweries but the entire brewery sector. When Nigerian Breweries Plc. realized that there was huge market in Nigeria, they made moves to invest in most breweries in the country. They were involved in Champion Breweries and International Breweries. The interest in the breweries triggered prices of breweries stocks. International Breweries that was trading at 70 kobo climbed to over N20.00 per share. This same interest in Breweries sector also made Guinness to expand to Sub-Saharan Africa, and with Nigeria’s large population, it became a natural investment destination.

Pointers to opportunities By Nnamdi Bende S investors look for opportunities in the stock market, result of the 30-month study undertaken by GOBI Communications Limited, using earnings, dividend, PE ratio, capital gains,2012 full year and 2013 interim results offers an insight. Among the companies that have release their 2012 result, Ecobank Transnational recorded the largest turnover with N362.14 billion followed by First Bank Holding with N359.80 billion and Zenith Bank which recorded turnover of N309.08 billion. Dangote Cement, GTBank, Nigerian Breweries and UBA were also very strong in turnover with N298.45 billion, N288.50 billion, N256.67 billion and N220.10 billion respectively. However, FCMB grew turnover between 2011 and 2012 financial year by biggest margin of 54.34 percent followed by Lafarge WAPCO 40.74 percent, UBA 34.45 percent and Union Bank with 32.54 percent. The most profitable among the companies whose results are available to us was Dangote Cement with N151.99 billion profit after tax. It was followed by Zenith Bank, GTBank, First Bank and UBA with N100.68 billion, N87.29 bil-

A

lion, N75.7 billion and N54.76 billion respectively. With 869.23 percent increase in profit after tax of N12.60 billion, Skye Bank grew earning by the largest margin followed by First Bank with 306.99 percent at N75.70 billion profit after tax. Zenith Bank and Julius Berger also recorded strong growth margin in profit after tax with 108.45 percent and 81.63 percent with PAT of N100.68 billion and N8.01billion respectively. GT Bank and Dangote Sugar were also among the stocks with strong growth in PAT with 68.71 percent and 45.81 percent increase respectively. Going by return history through capital appreciation, a number of stocks demonstrated some resilience in 2011 which marked the period of the equities market crisis. They include Sterling Bank, which appreciated by 231.4 percent during the period. Union Bank followed with 140.36 percent price appreciation, Okomu Oil 51.97 percent, Presco 36.54 percent, Guinness 35.16 percent, NCR 34.15 percent, Nigerian Breweries 22.9 percent, Nestle 14.88 percent and Unilever 11.11 percent.


63

THE GUARDIAN, Wednesday, August 7, 2013

Advertorial

Zenith Bank: Investors’ Honey Pot By Godfrey Obioma HE CBN-led reforms in the bankT ing sector have helped fuel rebound in banking stocks and one of the biggest beneficiaries is Zenith Bank. Driven by the bank’s good fundamentals, the stock has demonstrated impressive rally, making it one of the most preferred stocks. For example, investors who held the stock in January, 2012 and sold in January 2013 harvested 72.76 percent returns through capital appreciation. Between January and March 20, 2013, investors made capital gain of 0.19 percent from Zenith Bank. For dividend-driven investors, the bank has rewarded them handsomely with N0.85 per share, paid to shareholders in 2011 and N1.60 per share paid at the end of the 2012 financial year, thus showing consistent dividend payment profile. The dividends were paid from earnings of N1.57 per share in 2011 and N3.34 in 2012. The bank has one of the lowest Price Earning Ratio at 6.09 times, meaning that an investor in Zenith stock will recover his investment outlay in multiple of 6.09.

Current financials released to the investment community indicate that the bullish trend will continue. For example, in the 2012 financial accounts, the bank turned in 25 percent increase in gross earnings from N248.94 billion in 2011 to N307.08 billion while profit after tax increased from N48.70 billion to N100.60 billion or 107 percent. For the first quarter of 2013, Zenith Bank reported 20.11 percent increase in turn-over from N72.35 billion in 2012 to N86.90 billion and 21.75 percent growth in profit after tax from N19.22 billion to N23.400 billion. The bank’s stellar performance recently received a global endorsement as The Banker, in its 2013 edition of its annual ranking rated Zenith Bank among the top 1000 banks in the world. According to The Banker’s report, Zenith Bank is ranked number one in Nigeria, 6 in Africa and 287 in the world. Using 2012 full year result, The Banker rated the bank one of the strongest in the world. “Nigeria’s largest lender, by Tier-1 Capital, Zenith Bank, is rising rapidly. Last year, it ranked 322 globally by Tier 1 capital, this year, it has moved up to the 287th place”, the international magazine said. The bank is also rated one of the soundest in the world with capital as-

set ratio of 17.70 percent. With $658 million pre-tax profit and 22.14 percent profit on capital, Zenith emerged as one of the most profitable and efficient banks globally. The bank further demonstrated high performance profile with its 3.92 percent return on asset. It’s cost-to-income ratio, according to The Banker, is one of the lowest as Zenith Bank is also one of the most cost-efficient banks. Ariyo Olushekun, CEO, Capital Asset Limited and President of Chartered Institute of Stockbrokers (CIS) attributes the bank’s impressive performance to the quality of Management, returns on investment, its ability to come up with good products and the responsiveness to its customers. According to Olushegun, when the number of banks was reduced from 90 to 24, the businesses done by those 90 banks are now done by these 24 banks. The ones that are very strong among them, like Zenith Bank are getting more customers, because depositors who draw from their experience during the banking crisis do not want to do business with banks that they perceive are likely to fail. They therefore opt for the likes of Zenith Bank. The bank’s performance was recorded in spite of the growing competition in

Godwin Emefiele GMD/CEO

the industry. Godwin Emefiele GMD/CEO of the bank said: "We are indeed delighted to note that amid the challenging business environment witnessed in 2012, notably the restrictive monetary policies and the double digit headline inflation rates, Zenith Bank was able to record this impressive result”. In the face of rising cost in the economy, the bank has been able to moderate cost. “Efficiency in our operations led to the significant improvement in our cost to income ratio to 54% down from 63% in 2011 as our cost curtailing measures ensured that our operational expenses were held in check at below 3% growth”, Emefiele said. To further demonstrate its efficiency, the bank has reduced non- performing loan level to 3.15 percent. The managing director said, at the last Annual General Meeting (AGM), “the sustained improvements of our Enterprise Risk Management culture saw our NPL levels fall to 3.15% one of the lowest in Nigerian banking, all the while maintaining our liquidity levels and adequate capital to support future expansion and cushion against business risks and contingencies”. Business strategy Zenith Bank is one the country’s strongest banking brands and one of the largest by capitalization and profitability. Led by a stable and experienced management team that drive its growing market share, the bank has propelled efficient service delivery and return to investors. The performance of Zenith Bank is hinged on its strategic business focus and conservative business model driven by deployment of its manpower and information technology which have resulted in the creation of multiple service delivery channels . According to the bank, “our branding has been anchored on continued investment in people, technology and excellent customer service focused strategy. The combined intellectual capital and dedication of the staff, management and Board have shaped Zenith Bank into a world class institution that it is today.” In pursuant of the Central Bank of Nigeria directive on the scope of banking activities which prohibits banks from holding interest in any subsidiary, associated company or enterprises excerpt the entity is a pension custodian or banking institution incorporated outside Nigeria with the CBN support, Zenith Bank decided to operate as a commercial bank only. Marketing and Business Expansion Strategy As part of its business expansion strategy, Zenith Bank pursues organic

growth in the short to medium term. Its long term objective is to grow through creation and enhancement of products. To realize this, the bank is to enhance customer service through high quality information technology. To create industry specific products and services that meet the need of corporate clients, Zenith Bank is to forge an alliance with this group of customers while continuing to leverage on its core customers. The mid-tier high growth corporate customers form the core of the bulk deposit holders and the bank is to continue relationships with toptier player in the economy. The strategy is to target more companies in the mid-tier market with good growth prospects- like telecomms and information technology companies, fast moving consumers goods (FCMG), infrastructure development companies, civil construction companies, and those in real estate development, power, energy and, oil and gas sectors. Top on the agenda of Zenith Bank is expansion of its foreign operations by increasing its oversea subsidiaries. With increasing opportunities in the West African Sub region, the bank plans to finance trade flows in the sub-region currently routed through Europe. By continuing to develop and expand its network of foreign subsidiaries, the Group expects to offer better corresponding banking to West African banks who would have, in the past, used international banks based in Europe or the US. Channels targeted for deployment to enhance its customer and deposit base include; ATM Network, electronic and online banking products and services. Some of the electronic products offered by the bank are Corporate i-bank, internet banking, Easy Money, Global Pay and Electronic Multi card. Through capital appreciation, dividend payment and bonus payment, the bank has rewarded investors handsomely. It has, over the years, demonstrated a bullish trend. With appropriate structure put in place to realize its dream, the bank is optimistic that performance will continue on the upward trend. According to Emefiele, “In 2013, Zenith Bank will remain committed to rendering superior customer service and maintaining our competitive advantage in the market, and as an institution, will continue to strengthen our processes to swiftly respond to changes and risks going forward."


64

THE GUARDIAN, Wednesday, August 7, 2013


65

THE GUARDIAN, Wednesday, August 7, 2013

Opinion Dickson’s fresh momentum in Bayelsa By Steve Azaiki

E

VERY government always has work to do. But no government can undertake and finish all the work that is required in the polity. It is unthinkable, therefore, that any government will be so bereft of a task that it idles away, until its tenure expires. The fact that new seasons present their unique challenges that combine with issues carried over from a preceding season, coupled with a forward-looking agenda that stretches beyond the present, means that governments will always be gainfully engaged. However, what is often at stake is how the incumbent administration applies itself to the work at hand. After 18 months in office, it is possible, without much argument, to track the focus, and rate the accomplishments of the administration of Henry Seriake Dickson, Governor of Bayelsa State. The most obvious is the new momentum he has brought to bear on the implementation of the Yenagoa City Master Plan. Adopted in 2007, after years of incubation, the Master Plan aims “to transform Yenagoa City into a globally recognised City with modern infrastructure and appreciable aesthetic beauty comparable to other model cities in the world”. Dickson’s enthusiasm and passion is infectious. On one occasion, I sat at a meeting with him and development partners from South Africa on the actualization of the Yenagoa Master Plan. So fervent was he about making the dream come true that everyone present felt injected with an eagerness to help him deliver the promise. The fresh impetus has seen Yenagoa and elsewhere in the state transformed into huge construction sites, the true value of which can only be appreciated by reference to the enormous cost of land preparation (excavation of the top soil, sand-filling, piling, and so on) for both buildings and roads in a state that is virtually below sea level. The boom in construction also translates into thousands of direct and indirect jobs. At the time of its creation in 1996, Bayelsa was the backwaters of the old Rivers State – neglected, deprived, and bereft of the trappings of modernity. Indeed, it was the agonizing pleas of the forgotten places like present-day Bayelsa that gave rise to the famous Willink’s Commission. When eventually the state was created, the early administrations struggled with the provision of basic infrastructure as start-up facilities to enable the state take off. Now, massive infrastructure is

being built for the new Yenagoa City and Central Business District; arterial roads are being carved out of the swampy terrain. The vast site for a new airport has been cleared, and the state is looking forward to building a deep sea port as well. The dualization of a number of roads in the capital and elsewhere is to accommodate increased vehicular traffic now and in the foreseeable future, as the state opens itself up as a favoured tourist destination on the one hand, and a veritable haven for investors, on the other. Only recently, the state government handed the mobilization cheques for two flyovers to be constructed by Julius Berger. Being the locale where crude oil was first drilled and shipped in commercial quantity (Oloibiri), and still a major oil and gas domain, Bayelsa is, nevertheless, pushing to rapidly increase its non-oil revenues, especially through tourism and agriculture. It is Dickson’s passion for the Ijaw nation and its development, especially the vision on agriculture, that has endeared him to me. By taking on the challenge to rewrite the nation’s woeful record at feeding itself, Bayelsa will in the near future assume its rightful place as the centre of fish production in Nigeria and the leading producer of banana in West Africa, a record currently held by Ghana. Based on the Dickson’s agriculture agenda, which is already being implemented, Bayelsa will be second to none in plantain plantation in Africa; its rice and cassava production will be as plentiful as its palm oil. I know because I am involved. This is important if the Ijaw nation must keep faith with its destiny. Governor Dickson’s momentum is evident not only in the fresh projects and programmes he has initiated, but also in taking on, and forging ahead with those projects (some in the doldrums, others mired in controversy), which his government inherited from previous administrations. Take the 500-bed hospital in Yenagoa as an example. While the government is building standard hospitals in the local government areas, it has proceeded with the construction of the Diagnostic Centre complement to the 500bed hospital, which is expected to provide top-rate diagnostic services that are crucial to proper treatment and cure. On the other hand, the government has de-

termined that, for efficiency considerations, it does not feel confident that the state can run the 500-bed hospital when completed and operational. Instead, it is opting for a public private partnership arrangement that will complete and eventually run the hospital as a centre of medical excellence. Considering the array of PPP arrangements available, each with different implications, the choice should be a painstaking one. For, it will be a disservice if the state were to enter into an unfavourable PPP that causes loss and hardship to the state. One consequence of the decades of wanton neglect of the parts that now make up Bayelsa is a heritage of inadequate manpower. It is remarkable, therefore, that the administration is refocusing on human capital development with a determination that is sure to decrease the illiteracy rate in the not-too-distant future. Governor Dickson began by declaring a state of emergency in the education sector. The implementation of the emergency regime through interventions in basic, secondary and tertiary education bears testimony to his resolve to revive and accelerate the drive towards a better educated state, which for inexplicable reasons, other than perhaps a fuzziness of priorities, was neglected for some five years before Dickson was sworn in February last year. During those years of indifference to the urgency of human capital enhancement, the state withheld its counterpart payment that would have enabled it benefit tremendously from the Universal Basic Education Commission funding. That trend has now been reversed. The evidence on the ground is the commencement and completion of ambitious infrastructure and instructional material provision for basic education in the state. Some 400 schools, together with a complement of 400 teachers’ quarters, have been built across the state. Model secondary schools are also being built with boarding facilities. Textbook, notebooks, uniforms and other stationery are being supplied free to pupils. In fact, primary and secondary education is free in the state, with the government equally paying the fees for various certificate examinations. Bright students of Bayelsa origin are being offered scholarships, to attend top secondary schools outside the state, a policy that was started by Dr. Goodluck Jonathan when he was governor of the state, but was stopped by his immediate successor. In addition, scholar-

ships are being awarded to Ph.D and Masters candidates, as well as undergraduates. The state government is equally taking advantage of training programmes coordinated by the Amnesty Office. Sustaining the momentum and bringing to fruition the laudable projects and programmes are perhaps the biggest challenges that lie ahead for Dickson. Those with a cynical bent might be dismissive of the governor’s record of achievement so far, viewing it as the initial flurry of activities intended to create a positive impression, but which could peter out subsequently. The antidote to such pessimistic expectation is for the governor to remain faithful to his agenda, for all seasons, but with reflection at intervals, to note stakeholder observations and proposals. It also calls for prudent financial management, especially at times of shortfalls in expected revenue receipts. Happily, he targets monthly savings, and keeps an eye on boosting the internally generated revenue. But, probably, the highly recommended attitude to adopt is for the governor not to allow himself to be distracted. It also goes without saying that what the government has achieved so far is firmly predicated on peace and security. At the height of the militancy in the Niger Delta, major construction companies withdrew their men and equipment; potential investors were too scared to embark on even exploratory visits. Eternal vigilance is required to sustain the prevailing peace and security, recent incidents against policemen notwithstanding. All things considered, I am hopeful that Governor Dickson will succeed. He has character and integrity, and only those who do not know him will doubt him. He understands the burden and challenges of leadership. But one of his greatest assets is in seeking out and recruiting to join him persons who can bring value to the table. In this sense, he does not feel squeamish about engaging prominent citizens who will help him realise his mandate. This is what he has done precisely with Prof. Turner Isoun (former Minister of Science and Technology, now Chairman of Niger Delta University), Timi Alaibe, Ben Bruce, and Mrs. Diezani Alison Madueke – as Honorary Members of the Advisory Council of Bayelsa Development and Investment Council. • Prof. Azaiki is a former Secretary to the Bayelsa

Facts about Osun’s tablet of knowledge By Wale Bolorunduro

I

F you watch loads of military movies like I do, you will be amused when you hear people say, “There is no smoke without fire”. On the commander’s barking of a “Make smoke” order, a simple canister is tossed that will quickly obliterate the sun with thick, black smoke and provide a screen for a quick, tactical manoeuvre. There is absolutely no fire or a blast of an explosion. A recent report (not in The Guardian titled) Opon Imo (Tablet of Knowledge), or Opon Scam is one of those synthetic smokes. But whatever clever manoeuvre the author and those behind him wish to execute behind the smokescreen will have to be stood down right now since it takes more than making smokes to sally out and charge into a fight with a government as credible and as popular as that of Ogbeni Rauf Aregbesola. The first line of the write up goes thus: “Opon Imo (Computer tablet) is a project of Osun State Government…” Shall we start by pointing out that in the first place, there is no such thing as a computer tablet. Computers don’t take drugs and tablets don’t have computers, as anybody should know. There are no computer laptops or computer palmtops but only laptop com-

puters, desktop and palmtop computers. There is the tablet computer, that is, computers in the tablet hardware design format. They are wholly flat and the more popular brand is the ipad, made by Apple Computers. It is a point worth stressing because we are talking about educating our children here and education has everything to do with precision. One should thoroughly understand the issue he wishes to publicly discuss or he will have to later slink away with head bowed in embarrassment. The use of figures in this article is no less as shoddy and scandalous as the error I pointed out above. The newspaper report under reference claims that the writer can get a tablet computer for 30 US dollars “online”, whichever sales shop goes by that name. What sort of talk is that? What is the cost of good quality memory cards. Or of a good handheld phone? Each Opon Imo is loaded with 56 standard textbooks, duly licensed by the publishers for not less than N200 million since the project is not about purloining people’s intellectual properties. Then, there is the mythical Kamoru Aregbesola the writer he synthesized who has been paid N8 million a sole contractor and distributor of Opon Imo. The Kamoru was configured as “governor’s son”. For a fact, Governor Aregbesola has a dutiful young son named Kabir, a computer engineer trained in Cuba and United Kingdom and yes,

he certainly contributed to the software development of the Opon Imo project. I stood in admiration of the dad when I confirmed this. Other sons of public officials are known for their clubhouse drunken brawls and sleek Maseratis and Lamborghinis oppressing people on the streets, but this one is unofficially supporting his father’s office as he quietly serves his state. Why should someone stand by to generate a scandal from that? Kabir Aregbesola, according to Ogbeni in a public interactive session did not invoice his services to the Opon Imo project and has not been paid a kobo so far. I expect that he will be paid, for he should be, obviously, like all other contractors. It is of course the general trend in the Nigerian context to expect salacious outcomes from such things and dream up mountains of money being made under such circumstances. Yet, anyone who is to be taken seriously should come up with his facts and figures and not assume that stories of rot can be easily plastered on any government any day. Tablet computers are currently being supplied free to SS 1 to SS 3 students in the state of Osun, each preloaded with 56 standard textbooks and 12 additional volumes like the Bible and Quran, reproductive health educational materials, fitness guides, etc. Then there is a pack of 20 years of past question papers from WAEC and JAMB with solution guides in 17 sub-

jects. The price per device is N58,000. And as for charging and maintenance, solar-powered charging points have been provided in all schools. If Nigerians successfully maintain their millions of cell phones, the maintenance of 150,000 Opon Imos cannot be expected to be a mission impossible except to the incurable pessimist and a paid professional naysayer. His hurried, racy closing in the article fancies that there are workers in the state that are owed five months’ salary and that a yoke of N200 billion hangs on the state’s neck. These are childish lies all. State borrowing is carefully monitored by the Central Bank of Nigeria (CBN) and it is technically impossible for Osun State to be allowed to borrow beyond its annual budget. At times politicians become desperate, especially as elections draw closer and some go as low as resorting to telling blatant lies in trying to upstage their opponents. But at least they say among thieves there is still honour, even if only the dregs of it – those who craft these lies for them ought to be a bit more intelligent and the lies ought to look somewhat like truth or they sound like drunken men writing poetry as in the case of the article in question. • Bolorunduro is the Commissioner for Finance, Economic Planning and Budget, Osun State.


THE GUARDIAN, Wednesday, August 7, 2013

66

Opinion Ladoja and the parable of cowpeas By Tunde Ayeleru

I

read with keen interest an article written by a secondary school teacher of Literature-in-English called Akinolu Hassan in defence of the financial recklessness and contract inflation as exemplified by the just inaugurated Mokola fly-over. The article leaves a lot to be desired, and its contents negate the claim of identity of its author. As a teacher of Textual Analysis at the tertiary level of education and a Professor and Critic of African Literatures, I could see clearly that the writer of the article is more than a post-primary school teacher. The amount of information provided in the article shows clearly that the author of the paper is either a member of the Oyo State Executive Council or someone who knows so much about the award of contracts by the current state government. The contents of the article clearly betray the attempt of the writer to mask her/his identity. This clarification is needed to let people know that this is an era of deceit at the governmental level. Now, let me react to some of the weak defence of the administration as presented by Mr. Akinolu Hassan, who incidentally teaches Literature like me, though at different levels: his at the secondary school level; while I do mine at the Ivory Tower. I have deliberately decided to ignore the introductory part of the article since it only attacks personality instead of addressing the real issues. This part tries, in vain, to cover up the germane issue of either negligence or corruption raised in Senator Ladoja’s “traumatizing” interview; traumatizing in the sense that it has caused some people sleepless nights since it was aired and published in the media. My reaction is premised on the fact that many people who listened to or read the interview, regardless of their political leaning, believed that Ladoja had raised some issues of socio-economic and political concern. And for me as a tax payer and a stakeholder in Oyo State, I need an explanation on these issues. I deserve to know how my hard-earned tax is being spent by those elected to watch over our common treasury. The article in question reminds us that Ladoja will be 72 years in 2015, and the writer’s fear that he might become the next governor of Oyo State is very palpable. The writer also rightly observed that Ladoja is undoubtedly a brilliant and an unassuming politician as we could all see, especially from his last interview. The interview was a brilliant one; it was well analyzed, logical, convincing, cerebral, straight to the point, highly intellectual, mature in parts, lucidly presented, and above all, it was devoid of name-calling and character assassination.

All these observations have shown that there is wisdom in age: “old wine”, they say, “tastes better”. On the sub-standard nature of the fly-over, the writer will agree with me that the flyover is sub-standard compared with its like in Ibadan. The Mokola fly-over and that of Molete have been compared severally and the writer does not need to be an engineer to know that the Molete fly-over built 35 years ago is better in quality and quantity than the just inaugurated Mokola fly-over. The Molete fly-over has four lanes, while Mokola over-head bridge has only two lanes. The Molete fly-over can carry all types of vehicles irrespective of their weight and size, including the “socalled articulated vehicles”, while the Mokola fly-over can only carry small vehicles with light weight: the reason why there is a restriction imposed on it. If there is no visible heavy traffic on the Molete fly-over, it is because of its four lanes that have succeeded in easing out traffic jam on the bridge. That is why the writer of the subjective article erroneously thought that the “Molete fly-over is not necessary as a dual carriage bridge as there is sparse traffic on it”. The Mokola fly-over, instead of eliminating the traffic jam peculiar to the Mokola Roundabout, has just pushed forward the point of the traffic jam to the Danax/Adamasingba junction. The construction of the bridge has, therefore, failed to achieve, to a large extent, the set goal of easy traffic flow. On the cost of the construction of the fly-over, it is ridiculous that the hidden author of the article tacitly accepted that the government was negligent in the handling of financial matters. His claim that Oyo State government did not compare note with the government of Ogun State is an admittance of the fact that the government is not a good manager of our hard-earned resources. As an individual, if the writer of the piece wants to buy, for instance a car, will he not do what is generally known as market survey? The good people of Oyo State, including me, will never fall for this naked lie. He also claimed that houses were demolished and compensation paid to people in Mokola for the construction of the bridge. The government has told us at different fora that the purpose of the two-lane bridge was to avoid demolishing people’s buildings/houses. I know Mokola very well before and after the construction; what and whose houses were demolished for the erection of the fly-over? Does the writer listen to jingles by the government about the fly-over, where it was said that the bridge was constructed without demolition of people’s properties? “Truth”, they say, “is always constant”. If a person tells a lie, he or she will need 10 other lies to help it to get a semblance of the

truth. There have been series of contradictions from the government quarters since the case of Mokola fly-over gained prominence. Quoting from the article; the author said, “also included in it (the N2.9 billion) is the cost of compensation for demolished buildings”. I challenge the author of the article to make public the names of people whose buildings were demolished. Let us see his picture of Mokola before the fly-over and the present one to enable us ascertain the number of buildings that were demolished. Concerning the traders displaced; how many of them have been properly relocated and compensated? I am happy that the masked writer claimed to be a teacher; he should just go round the town and talk objectively to people and see how they feel about the government he is trying to protect. I am sure he knows that one of the most serious problems facing Ibadan is that of potable water. How does he rationalize a situation whereby people do not get water to drink, and the government is busy drilling boreholes for flowers? Lastly, let me remind the author of the article that every person is a political animal. People are desperate in their quest for power, and those already in power use all means to retain it. These include deceit, attack on the personality of their perceived opponents, corruption, blatant lies, outright ‘thieving’, etc. Some even change political parties and attempt to supplant the pioneer founders and owners of the party; some embark on mad amassing of wealth through contract inflation, outright embezzlement of public funds and use of state powers to silence the opposition. The claim that Ladoja alone is desperate for power is not correct; all politicians including the clueless ones who are not as brilliant as Ladoja even devise different tricks, and, in most cases, illegal means to get to power and hold on to it. This, therefore, explains why mediocres are occupying positions of authority in our country. What I expected from Mr. Akinolu Hassan was a meticulous and systematic defence of all the allegations levelled against the State Government by Senator Ladoja, instead of abuse and name-calling. As we all know, ACN is giving a serious opposition and criticism to the PDP-led Federal Government, how come the same party in Oyo State is too intolerant to criticisms and divergent opinions from the people. As a scholar of literary criticism, I know the importance of criticism and critiquing. Criticism may seem bitter, but there are some underlining constructive elements in every criticism that a wise person needs to harness for amelioration. • Ayeleru is a Professor of French and African Literatures in the University of Ibadan, Nigeria.

Time to amend Fiscal Responsibility Act By Benson Ilor

I

N the light of certain negative objective realities assailing the Nigerian economy, the need to deploy all necessary means to rescue it (the economy) cannot be overemphasised. One of the instruments put in place by the government to ensure prudent management of the nation’s resources is the Fiscal Responsibility Act, 2007. The essence of the FRA-2007 is to bring about sanity and order in the public sector financial management, instil fiscal discipline in budget execution and ensure accountability and prudent management of national resources and macro-economic stability. This is aimed at bringing control and caution in the fiscal matters. Therefore, the establishment of FRC was necessitated by the urgent need for order and discipline in the management of the nation’s resources in this wise, every machinery should be put in place to make the commission a workable tool in our nation, as this will ensure 100 per cent budget implementation, rather than rendering the Commission a toothless bulldog. The Fiscal Responsibility Commission came into being after the enactment of the Fiscal Responsibility Act 2007 by the National Assembly and the subsequent signing into law and inauguration of its members by the late President, Umaru Musa ‘Yar’adua in 2009. The Act, among other things, empowers the Commission to monitor and enforce the provision of the Act in order to ensure accountability, transparency and prudence in the management of the nation’s resources by the Federal Government, government-owned corporations or companies and agencies. However, despite the clear mandate given to the Commission as regards the implementation of the provisions of the FRA, the Commission seems incapacitated by lack of powers to prosecute erring individuals or organisations that contravene the Act. In other words, the Commission is rendered helpless by the same Act that brought it into existence and empowers it to see to the implementation of provisions of the Act. And this lack of power to prosecute can be said to be why the Commission is nowadays seen as a toothless bulldog. Section 2 (1) (a) and (b) of the Act gives power to the Commission to “compel any person or government institution to disclose infor-

mation relating to public revenues and expenditure; and cause an investigation into whether any person has violated any provisions of this act,” while section 2 (2) of the same Act requires that “the Commission shall forward a report of the investigation to the Attorney-General of the Federation for possible prosecution.” This is like empowering the Commission with one hand and restricting or withholding that power with the other. This notwithstanding, it is on record that the Commission has been doing its best, since it inauguration, to ensure that all government agencies and departments comply with the provision of the FRA which generally require financial prudence and discipline in conducting government business. The Commission, immediately after inauguration, swung into action and mapped out strategies for the discharge of its functions. And since then, the Commission has been monitoring the MDAs in the course of the implementation of the provision of the FRA in order to achieve the objectives for which the Act was enacted. It is therefore not surprising that many MDAs have been flouting the FRA, 2007 with reckless abandon, knowing fully well that they cannot be sanctioned. Recently, Federal Government ordered the closure of bank accounts of errant Government Agencies that have failed to remit their internally generated revenues to the Consolidated Revenue Fund (CFR) of the federation as stipulated by section 30 0f the 1999 constitution, as amended, and re-echoed by the Fiscal Responsibility Act, 2007. According to the coordinating Minister for the Economy and the Minister of Finance, Dr. Ngozi Okonjo Iweala, the agencies have been conspiring with some banks not to remit the stipulated funds into the Consolidated Revenue Fund (CRF), which they are obliged by law to do. She said that this unwholesome practice has persisted despite the efforts of the Office of the Accountant General of the Federation (OAGF) to encourage the agencies and the affected Banks to do the right thing. The Minister ought to have known better that the onus of compelling the MDAs to remit the operating surplus is on the Fiscal Responsibility Commission and not the Office of the Accountant General of Federation (OAGF). Specifically, section 22 (1) and (2) of the Act provides that each government agency must remit the balance of its operating surplus into the Con-

solidated Revenue Fund (CRF) at the end of each financial year. And this, the FRC is supposed to supervise and make sure is being done. It is trite to say that the Commission is heavily handicapped in the execution of its mandate. So it is of importance for the National Assembly to ensure the speedy Passage of the current bill before it that seeks to amend the FRA Act which among other things will give more powers to the Fiscal Responsibility Commission to enable it execute its mandate diligently and effectively. The National Assembly, as the law making body of the nation and one of the vital organs of government that ensure checks and balances in the government business, should consider the strategic importance of the Commission and the role it plays in checking corruption and ensuring fiscal prudence and discipline in our polity. In doing this, the National Assembly will only be giving teeth to the Fundamental Objectives and Directive Principles of State Policy in the constitution. Though, these objectives are not justiciable the National Assembly is given ample power in the constitution to promote and enforce the Fundamental Objectives and Directive Principles of State Policy. The enactment of the FRA, 2007 is an important step in endowing some measure of justicability in the provisions embedded in economic objectives. However, the National Assembly needs to do more by way of amendments to strengthen the FRA, 2007 and its implementing agency in order to ensure compliance by the Budget Office and MDAs. By and large, for proper and effective operations, Fiscal Responsibility Commission needs to be given the power to prosecute the erring individuals and agencies that flout the Fiscal Responsibilty Act, 2007. The Commission should be made to receive its proper funding through the statutory allocation instead of through the Federal Ministry of Finance. Fiscal Responsibility Act should be equally applied to State Governments since we operate the same economy. There is also need to study countries like Brazil, Canada and others who have adopted the fiscal regime in their governance to enable us know how FR Act should be structured and operated to ensure best practices of the regime of fiscal responsibility. A stitch in time saves nine • Ilor is a communication officer, Fiscal Responsibility Commission, Abuja


THE GUARDIAN, Wednesday, August 7, 2013

NigeriaCapitalMarket NSE Daily Summary (Equities) PRICE LIST OF SYMBOLS TRADED FOR 06/08/2013

| 67


68 | CAPITAL MARKET

THE GUARDIAN, Wednesday, August 7, 2013

NSE Daily Summary (Equities) as at 23/07/2013

PRICE GAINERS

LOSERS

May & Baker’s first half profit rises by 29 per cent

By Bukky Olajide

& Baker Nigeria Plc M recorded significant growths in sales and profit in AY

the first half of the year as the healthcare company continued to optimize internal efficiency and productivity. Interim first half report for the period ended June 30, 2013 of May & Baker Nigeria made available by the Nigerian Stock Exchange (NSE) showed that operating profit grew by 27 per cent, to N328.3 million in first half 2013 as against N259.3 million recorded in the comparable period of 2012. Profit before tax rose by 29 per cent from N40.4 million to N52.1 million. Profit after tax stood at N35.42 million compared to N27.48 million in corresponding period of 2012. While higher cost of sales depressed gross profit margin from 42 per cent in first half

2012 to about 33 per cent in first half 2013, increased internal efficiency impacted positively on the operating profit margin and pre-tax profit margin, which rose from 10.7 per cent and 1.65 per cent in first half 2012 to 11.5 per cent and 1.8 per cent respectively in 2013. Turnover rose by 18 per cent from N2.43 billion to N2.86 billion. Operating profit grew by 27 per cent to N328.3 million in first half 2013 as against N259.3 million in comparable period of 2012. Profit before tax rose by 29 per cent from N40.4 million to N52.1 million. Profit after tax stood at N35.42 million compared with N27.48 million in corresponding period of 2012. With improvement in the bottom-line, basic earnings per share increased by 29 per cent from 2.80 kobo in first half 2012 to 3.61 kobo in first half 2013. Total assets also rose to N8.29 billion, 11.4 per cent

above N7.44 billion recorded in comparable period of 2012. Managing director, May & Baker Nigeria, Mr. Nnamdi Okafor, said the performance of the company in the first half showed resilience in spite of some current internal circumstances adversely impacting

on results. He noted that while operating profit was N232.9 million and profit before tax was N44.5 million for the full-year ended December 31, 2012, the first half results in 2013 have surpassed the full-year results of 2012.

According to him, while the company still faces headwinds from huge depreciation due to its ultra-modern factory in Ota, Ogun State and high financing costs, Management has undertaken key initiatives to further expand sales and ensure

improved profitability. May & Baker Nigeria Plc is considering raising additional capital to support its business expansion and steady the healthcare company against competition, the board of the company has said.

SEC inaugurates committee to monitor financial crimes By Helen Oji HE Securities and Exchange T Commission (SEC), yesterday, inaugurated a new committee to ensure that the operations of the capital market are in line with regulatory guidelines. The Committee of Chief Compliance Officers in the capital market is expected to checkmate crimes such as money laundering and other forms of financial crimes in

the market. According to the SEC, the move is specifically aimed at checking the injection of illegal funds or proceeds of criminal acts into the capital market with the intention of concealing or disguising its real origin. Speaking at the inauguration ceremony in Lagos, Executive Commissioner, SEC, Mrs. Sa’adatu Bello, said the decision to set up the committee was informed by the commis-

sion’s vision to develop a world class capital market. “We will not relent in the effort to ensure compliance in the capital market with all regulations, which include the anti-money laundering and financing of terrorism policy of the Federal Government of Nigeria,” she said. Bello, who noted that the Nigerian capital market was not a safe haven for fraudsters because all transactions are traceable, added, “SEC has

established an AML/CFT unit within the commission and issued numerous regulations in compliance with the Money Laundering Prohibition Act, 2011. “We have also ensured the implementation of several recommendations of the Financial Action Task Force, which is the international body championing the cause of AML/CFT and its counterpart inter-governmental action group against money laundering in West Africa.” She added.


THE GUARDIAN, Wednesday, August 7, 2013

| 69

Midweek Arts 50 years after, conference on Fagunwa begins tomorrow By Gbenga Salau HE first international conference T to celebrate the late Daniel Olorunfemi Fagunwa, one of the pioneer creative writers in Nigeria, begins tomorrow in Akure, Ondo State, and ends August 10. Organised and hosted by t h e Centre for Black and African Arts and Civilisation, CBAAC, in collaboration with Ondo State government, the Fagunwa Study Group, the Fagunwa Foundation and the Centre for Black Culture and International Understanding (CBCIU), is being promoted by an international group of scholars and enthusiasts of the work of the late writer who lived between 1903 and 1963. With the theme, D. O. Fagunwa: Fifty Years On, the conference, which will be held at the Jojein Hotels and Resort, Airport Road, Oba-Ile, Akure, is conceived to mark the first halfcentury after the death of Fagunwa and meant to celebrate and reaffirm his contributions to African literature and culture, re-examine his work as a store-house of hitherto undiscovered sources of knowledge, and assess his continuing relevance to our contemporary times. Professor Wole Soyinka, the 1986 Nobel Laureate in Literature, will deliver the keynote address. Speaking on the conference, the Director General of CBAAC, Prof. Tunde Babawale, said the conference was put together to examine the impact and significance of his works, as the organisers recognised the broad cultural, literary, political and institutional dimensions of Fagunwa’s creativity.

The CBAAC boss, Babawale, said, “the year 2013 marks the 50th anniversary of the tragic death of Fagunwa, the renowned Yorubalanguage author and educationist. With the publication in 1938 of Ogboju Ode Ninu Igbo Irumole, Fagunwa initiated a practice of Yoruba-language imaginative writing, which quickly generated a tradition within and beyond Nigeria. “He was one of the pioneer writers especially in the indigenous genre. Although he was very educated and, in fact, a schoolteacher, he decided to write in the indigenous language. Within a very short span of time in 1938, he wrote his first novel titled Ogboju Ode Ninu Igbo Irumole, which Prof. Wole Soyinka later translated A Forest of a Thousand Demons in 1968. This was followed by a second one, Igbo Eledumare in 1949, which was also translated by Soyinka as The Forest of Eledumare. “The last was Aditu Olodumare, which was published in 1961, which was phenomenal. He died two years after in 1963, reportedly in an accident. The very significant thing about this is that we are commemorating the man’s death, 50 years after; and the reason is that as a Centre, CBAAC is committed to the promotion of culture and indigenous languages. And we found his works being of great significant to our mandate, and as a result, we decided to join hands with a group of scholars at home and abroad, who initiated this idea of a confer-

ence to celebrate this writer. “And we decided to be part of that process and in conjunction with Ondo State government. Incidentally, Fagunwa was born in Ondo State, Oke-Igbo and I think this is one of the reasons the state government is interested; he is one of the heroes that came out of the state. The conference is between August 8 and 10 and efforts are on to ensure a successful conference.” In his view, the conference is important in order to draw attention to the significance of this particular scholar to the development of Nigerian, black and African literature, also noting, “Though he wrote in indigenous language, there had been a lot of writers and scholars who wrote their PhD theses on his works and we shall meet some of them at that conference.” In giving insight to the depth of Fagunwa’s work, Babawale said one of his works had been reprinted 24 times, and some of the works had been translated into French and English, adding, “Some of the things scholars talk about in contemporary times has been foretold in some of his novels, when you talk about the importance of nature, which is conservation that we talk about today. With this, many think he was a horticulturist. And that tells you the depth of his work. This conference will bring together scholars who have worked extensively on Fagunwa novels.” According to the CBAAC boss, Soyinka has accepted to deliver the

Babawale keynote address, while Profs. Niyi Osundare, Femi Osofisan and Dan Izenbaye would also be presenting papers at the conference. A member of the D.O Fagunwa study group, Mr. Kunle Ajibade, gave a brief on how the idea of the conference was born at a roundtable discussion during a conference when one of the characters in his books was exhibited at the conference. “After deciding to hold the conference, we pondered over the organisation to hold the conference with,

and I did not hesitate at all in picking CBAAC. And it has been wonderful and I feel comfortable all the time doing something like this with CBAAC. We did it before when Odia Ofeimun clocked 60. So, I congratulate you for the good work you have been doing. “After this conference, there is going to be a book and we are already working on that and have started raising money for the purpose. And everybody we meet feels excited about the conference.”

Ogbolu wins MultiChoice’s 20th anniversary logo competition By Anote Ajeluorou ULTICHOICE Nigeria has tacted by MultiChoice Nigeria. African continent. M announced the winner of its The winer, Ogbolu is a graduate of Abaribe said MultiChoice Nigeria 20th anniversary logo competition. He is Kanso Ogbolu, a 27-year-old Nigerian who trained as an architect but works as a graphic artist in Lagos. Ogbolu’s entry was one of over 17,000 received during the competition, which ran from June 3 – 7, 2013. General Manager, Marketing at MultiChoice Nigeria and head of the selection committee, Mr. Martin Mabutho said, “Ogbolu’s concept met all our requirements. In particular, it carried across the message of a proud Nigeria company with pan African roots that has been keeping Nigerian families via entertainment for the past 20 years” For winning the competition, Ogbolu received a cheque of N1 million plus a one-year free DSTV subscription. The first runner up, Gabriel Efe Oderhohwo got N500,000 and six months’ free DSTV subscription while the third prize of N250,000 and three months’ free DSTV subscription went to Oguntodu Ayoola. The five consolation prize winners of DSTV Walka 7’s with one month free subscription are: Aniekan Nenty, DASilva Philip, Kayode Ishola, Kolade Akintola and Tolulope Bambgose. All the winners have already been con-

architecture from the Kwame Nkrumah University of Science and Technology, Kumasi, Ghana. He has strong interests in photography, animation and in his words “pretty things design related”. Ogbolu and other winners received their prizes at a ceremony that was presided over by Chairman, Senate Committee on Media and Publicity, Sen. Eyinnaya Abaribe, and Mr. John Ugbe, Managing director of MultiChoice Nigeria. Other dignitaries present were the MD/CEOs of Zenith Bank Plc and First City Monument Bank Plc, Messrs Godwin Emefiele and Ladi Balogun, MD, Strategic Outcomes Ltd, Mr. Jenkins Alumona and MD/CEO, Visafone, Mr. Ninan Thomas. In his remarks before Ogbolu was announced winner, Sen. Abaribe, also a subscriber for 20 years, congratulated MultiChoice Nigeria for its consistency in doing business in the country for 20, which he said only seemed like yesterday. In fact, the Senator was surprised that 20 years had elapsed since he started subscribing to the South African cable TV station that has come to define cable TV viewing on the

ago. An ecstatic but reticent Ogbolu said has popularise African stars as there were two sides to the story of against foreign ones that had earlier his creation. He stated that all the dominated the screens, with the emergence of Nollywood, whose stars are acclaimed continent-wide. Also with the cable TV station further popularising Nigerian films, Nigeria’s dialectic inflexions, especially its variant of pidgin English and speaking mannersism, have come to be commonly accepted and used across the continent, as an important local export. Also, while praying for many more years of operation in the country for the cable TV company, Abaribe, however, urged management of the foremost cable TV company to review the rates it charges Nigerians for them to remain on its platform, including its bouquet configurations so it could be less expensive to subscribers. He noted that with the zeal with which Nigerians follow the English Premiership, tying the premium subscription around that bouquet at its current rate had effectively shut out many would-be subscribers, a situation MultiChoice Nigeria Ltd could rejig for wider subscriber base and as reward for the loyalty Nigerians have shown the brand since its inception 20 years Ogbolu

colours in the logo represent Nigeria’s diversity and multiplicity, with the ribbon also celebrating the country’s unity.


THE GUARDIAN, Wednesday, August 7 , 2013

70 | ARTS

National Theatre, Iganmu

National Theatre bazaar and the legislative intervention By Ben Tomoloju ECENT happenings, concerning the National Theatre Complex, Lagos, have been mind-boggling. The planned concessioning of the edifice has spewed forth more controversies than the proponents probably imagined. From April, when the Tourism, Culture and National Orientation Minister, Edem Duke, issued a directive that all parastatals, professional organisations and cultural SMEs situated on the land, surrounding the complex should quit within two weeks, stakeholders have reacted vehemently against the idea. The quit notice, we are told, is to make way for implementation of a so-called original master plan of the property “encompassing a five-star hotel, car park and shopping mall.” This development is reminiscent of a recent conflict of interest in Turkey where the government planned to turn a public park into a shopping mall. The whole world was gripped by the spontaneous and earth-shaking protest by the people. It has not died down completely. It is a case of public administrators, taking the people for granted, leading to a protracted social combustion. One only hopes that the National Theatre example does not degenerate to that level before a people-friendly solution is found. So far, there are indications that such a solution may be underway since members of the National Assembly have stepped into the matter. They are the elected representatives of Nigerians whose constitutional roles are, principally, to make laws for good governance and protect the people against the arbitrariness of power. To a thoroughbred, who appreciates the arts as a propelling force in the civilising process of any society, the subjection of a cultural heritage to abrasive mercantilist considerations is a culture shock. The denudation of culture begins with a philistine mindset that views life strictly from a materialistic angle, ignoring its spiritual and intellectual manifestations. Such a mindset is codified in the minister’s five star hotel, car park and shopping mall as against scholarly and popular expression in the literary, performing visual arts and numerous aspects of the creative industry. The stepping in of legislators is salutary. However, they should use the opportunity to scrutinise the development critically and correct the dissonance in public perception of the officers of state vis-à-vis their role – performance. They should examine the issue dispassionately and bring the vision of Nigerian nationhood in alignment with the classical precept, which, in the book, Unto Thee Grant, lists one of the major attributes of a good statesman as that of a patron of the arts.

R

What we are witnessing in the National Theatre is clearly the portrait of a “statesman” as a cultural assassin, a paradox, a disquieting contradiction, threatening the very foundation of creative contemplation in our society. The contradiction spreads all over. Discerning lawmakers should spot every bit of it and do a good job in their intervention. Sample this. One of the strong areas of appeal of Dr.Goodluck Jonathan during his presidential campaign of 2010-2011 was his supposed love for the arts. Quite a good number of artistes featured in his campaign train. The electronic media was abuzz with endorsement by artistes. In fact, some of the Jonathan-for-president promos were rehearsed and produced at the NCAC Artistes’ Village, which is now under the hammer of Edem Duke. In December 2011, the president spent a whole evening at the Eko Hotels and Suites Banquet hall with artistes drawn from all over Nigeria, brainstorming on the creative industry. His promises were attractive. His manifesto engendered high expectation from stakeholders to the level of a passion, more so as he had already demonstrated his commitment by embarking on a literary petproject “Bring Back the Book”, which even featured the president, reading side-by-side to students with a titan of the status of Nobel Laureate, Professor Wole Soyinka. It is, therefore, unthinkable that an appointee of the same president now treats the arts like a piece of rag, running counter to the vision established by his principal. Another contradiction abounds in the relationship between the National Theatre management (NTM) and the other parastatals using the property. It needs to be anatomized for better judgment. According to reports, the Lagos offices of the National Council for Arts and Culture (NCAC), the National Institute for Cultural Orientation (NICO), the National Gallery of Art (NGA) and National Troupe of Nigeria (NTN), among others, are targets of Edem Duke’s eviction notice, with the currents General Manager of the National Theatre playing henchman with unbridled zealotry. Truth is, all these culture parastatals are joint-owners of the property. The National Theater’s custodianship is a mere compliment, a descriptive nomenclature which is being manipulated under some sort of administrative opportunism by the NTM,backed by the minister for whatever reason, to victimize the rest. Essentially, the NTM has no supervening power over the others because the old Federal Department of Culture (FDC) was the body originally charged with the responsibility of distributing the assets among cultural

and related agencies. And the FDC had started doing this long before the NTM came into existence as a parastatal. The first beneficiary was the NCAC. Considering that the NCAC had been established by law and allocated the piece of land it currently occupies in Lagos long before the NTM transformed from a unit at the Federal Department of Culture into a statutory agency, we now have the case of the tail wagging the dog, an anti-thesis to rationality. Other parastatals, including the National Theater Management came into existence later. Some of them had effectively entrenched their operations in this convenient part of the Lagos cityscape before moving their headquarters to Abuja. Such operations in Lagos are validly sustained since they have the mandate to set up zonal offices and branches across the country for national outreach. In this connection, the National Institute for Cultural Orientation (NICO) maintains a viable Language School in Lagos. It also has a Diploma and Post-Graduate Diploma-awarding institute for Culture Administration in Lagos. The bulk of the National Gallery of Arts (NGA’S) priceless artworks by Nigerian masters is in Lagos. The National Troupe of Nigeria (NTM), serviced by the same Governing Board with the NTM is resident at the National Theater definitely because of the disciplinary interconnectedness of both. In fact, the Oronsanye report, if approved and implemented, recommends the merger of both the NTM and the NTN, which would make the attempted ouster a subject of laughable revision in future. There is, therefore, a visionary rupture in the current exercise, which will saddle the Nigerian cultural sector with a huge burden in the years to come. By the way, we hear that, as a palliative measure, the Minister, Edem Duke, is talking about building a theater in Calabar. Happily, distinguished playwright and former General Manager of the NTM, Professor Femi Osofisan, has highlighted the ridiculousness of this proposition as a defence for turning the National Theater lay out into a hotel. One would only add, for the benefit of our legislators, that a standard world-class theater has already been built in Calabar by government in the military era as part of the FESTAC legacies. Is the Minister not aware of this? And in any case, what sin has Lagos committed to deserve being scape-goated in favour of Edem Duke’s home state? This is a political question for the High Chief of Duke-Town. Beyond this pregnant political poser is the issue of equity between the cultural sector and its tourism counterpart.

The parcel of land in contention, by the order of first legitimate occupier, belongs not to tourism, where the hotel and hospitality business belongs, but to the cultural sector. When it was acquired by the Federal Military Government in the 1970s for FESTAC and other cultural initiatives, the Nigerian Tourism Board was not in the then Ministry of Information and Culture. Tourism had its own assets within a ministerial arrangement completely outside culture. The National Theatre and all the surrounding property has always been for the development of arts and culture, so it amounts to a grave injustice to already marginalized culture stakeholders to have their assets misappropriated, snatched by administrative fiat and handed over to tourism – robbing Peter to pay Paul. For God’s sake, we are in a democracy. What if in future, another government returns tourism to its former Ministry? It will turn out to be a double loss for the Cultural Sector because tourism will hold on to it as if it is the original owner. What would have been rational is for Minister Edem Duke to accommodate all existing cultural entities and enterprises within a new, broader concept of development. A strategy in cultural tourism would have been an extenuating factor in this ‘DEAL’, which, to all intents and purposes, still appears like a personal adventure of selfish individuals, of Cultural administrators as mere land speculators. And if, perchance, cultural tourism is played up as an excuse, this is not how to go about it. In the current exercise, it is contradictoryagain- that the very element, particularly the artistic enterprises, upon which cultural tourism is anchored, is the object of this vicious and desperate assault by the minister. Economically, his idea also falls flat in the face of current global trends. For instance, the job creation agenda of the Federal Government will suffer one way or the other, especially in the effort at making entrepreneurs of our young graduates. Quite a good number of the artistes whom Edem Duke is trying to dislodge from the NCAC Artistes’ Village and Fine-artists at the Universal Studios are young graduates. Some of them are entrepreneurs in their own right. Severally, they provide jobs for others with about sixty SME’s located at the premises. Interestingly, the presence of Chief Lari Williams (M.O.N) and famous, veteran sculptor, Bisi Fakeye in their midst argue for mentorship and impartation of skills from the old to the young in a creative habitat. That village is an enlarged workshop, albeit at a seemingly informal level, which ought to be adopted, regularized and developed by a progressive public office holder.


THE GUARDIAN, Wednesday, August 7 , 2013

ARTS | 71

Binding Duty lifts tax enlightenment campaign By Gbenga Salau AX, in other countries, is a good source of revenue for the government, but that cannot be said of Nigeria, as the people don’t like paying taxes. This suggests why when tax clearance is demanded, you see people presenting fake evidence of payment, no thanks to Oluwole Market. To further enlighten Nigerians on the importance of tax, process of payment and the dangers of cutting corners, the Federal Inland Revenue Service (FIRS) recently produced a television drama that will be on air for a fairly reasonable time. Titled, Binding Duty, it has 13 episodes: Short Cut; Borrowed Time; To have and to hold; Born to win; Ostrich Syndrome and Double leopard. All the themes are supposed to run two twice, except Double Leopard, which has three episodes. Short Cut talks about the in-house cleaning by FIRS, as it identifies, investigates and terminates the appointments of staff aiding and abetting fraudulent acts, using touts as middle men. The tout, through the connivance of an FIRS staff, helps taxpayers — individuals or company — to obtain fake tax clearance. The tout, who goes by many aliases, claims to work for a director of the FIRS. He eventually obtains a fake tax clearance certificate from a roadside printing press for a family that applies for a VISA. He, however, decides to go to the printing press after his linkman in the agency is sacked when it was found out that he was engaging in fraudulent activities. The embassy promptly notifies FIRS after it discovers that the tax certificate presented is a fake one.

T

The enforcement team of the agency raids the printing press, where the tout and his cohorts are arrested. Another scenario in the drama series is a widow and Deputy Managing Director of Nahadiya Holdings, who decides to help herself to unremitted VAT funds in the company custody, in the absence of the substantive CEO. But the FIRS, in a renewed effort to ensure compliance, investigated some companies among which was Nahadiya holdings Limited. The company was eventually sealed off after the arrest of the widow had been effected, as well as the accountant and other top management. To alert citizens of the activities of some fraudsters who engage in the procurement of fake tax clearance using viable company name, a scenario of a young graduate who lives off the wealthy sister gets arrested for a traffic violation but was released after the sister was painted. To earn a living for himself, he bids for a contract in a Federal Government agency and had to engage the service of a tout to secure a fake tax clearance certificate using his sister’s engineering firm. But wondering why a company that has been compliant in tax payments would suddenly apply for a contract with a fake Tax Clearance Certificate, the FIRS did its investigation and finds out the truth. The idea, no doubts, should be commended as it provides a room to get the populace enlightened not only about the activities of the FIRS, which is what most organisations do when they use such platforms, but about the dangers in cutting corners, its implica-

tion and some of the fraudulent activities perpetrated by personal assistants of management staff who are charged with the responsibility of tax issues. Assistant Director, Corporate Communication, FIRS, Mr. Wahab Gbadamosi, said the film was produced to compliment the various television commercials by the agency. “Though we are using drama as a tool, it is not the entertainment that we are particular about, just the provision of revenue for the

A scene from one of the episode

Lagbaja finds love at Uyo Glo Slide & Bounce concert XACTLY 13 years after he E waxed the award-winning album, “Nothing for You”, the saxophonist and African folklorist, Lagbaja, on Saturday night at the Glo Slide & Bounce concert in Uyo, the Akwa Ibom State capital, got an affirmative response to his search for a “date” from a medical doctor. The masked one, who was at his best romantic mood in his over 30 years on stage, received a ‘Lagbaja-something-for-you response’ to his proposition ‘omo (lady)-anything-for-me’ lyrics and the hall erupted in celebration. Lagbaja, who entered the jampacked Amazing Grace ECentre, venue of the event from the back, had, while dishing out his lyrics to the enthusiastic crowd, spotted a damsel in a black, spectacular dress and went straight to her, asking for a date in the ‘anything-for-Lagbaja’ way. It was an initial battle of wits between the duo but the ever persuasive saxophonist assured the lady, a medical doctor, Dr. Edionelwele Nosen, that he would not mind removing his trade mark mask and core insignia of the Lagbaja brand, to win the heart of the captivating lady. With the crowd watching with palpable anxiety, the lady held Lagbaja’s hand and declared with a romantic splendour that would make the epic Romeo and Juliet green with envy, ‘Lagbaja something for you’. The crowd cheered and the masked man went back on stage a fulfilled man and with gratitude to Globacom for providing the platform for him to break his 13-year old jinx of negative responses from would be ‘dates’. And just as the crowd was about recovering from the ‘toasting’ prowess of Lagbaja, Burna Boy took the show to a new dimension as he went ‘wild’ with generosity, giving out $100 apiece to two different ladies, Lucy Robinson Chiefina, an ND graduate of Accounting from the Federal Polytechnic, Nekede, Owerri and Chienemerem Mezue-Osuocha, a University of Benin graduate of Computer Science, who came on stage to dance galala with the Oluwaburna crooner. The stage was thus set for the night of music, dance and gifts as artistes gave out different gift items to the appre-

government.” He commended all the persons, within and outside the FIRS, including the crew and casts, who worked to make the project a success. He maintained that the effort is geared towards ensuring that Nigeria gets sustainable revenue through taxes. “For us it is a big thing that it happened at all because once we can mainstream the tax message through the drama medium, we know we are on,” Gbadamosi said.

Lagbaja

ciative audience, with Mr. Chairman himself, MI, giving out two gold necklaces to two guys from the crowd, who sang all his lyrics along with him. The sensational twins, P-Square, almost went bare naked as they gave out virtually everything on them: CDs, jackets, shirts, singlets and canvass shoes to the appreciative crowd, leaving only their trousers. The organiser of the event, Globacom, rewarded Chima Keke, Kika Abraham and Oron Victor with three Samsung Galaxy phones for their entries in the Glo Bounce with artistes’ online singing competition on You Tube. The Uyo edition of Glo Slide & Bounce concert lived up to the reputation the concerts have garnered since the series started seven weeks ago as a world class show, giving residents of the Land of Promise, Akwa Ibom State, value for their time. Welcoming the crowd to the show, Globacom’s Divisional Director, South-South, Mr. Sam Edoho, said the concerts were ways of appreciating Nigerian youths and encouraging them to pursue their dreams with ultimate conviction, while having it at the back of their mind that Globacom offers them unlimited opportunities.

iDEZ Girls win K-Pop Dance competition HE Ballroom 4 of Ladi Kwali T Conference Centre, Abuja Sheraton Hotel & Towers where

the 2nd K-Pop Dance Festival was held on Friday, July 26, burst into an almost riotous jubilation as iDEZ Girls was announced winner of the 2013 edition of the competition organized by Arojah Concepts in collaboration with the Korean Cultural Centre. The all girls team - iDEZ Girls was declared overall winner by the panel of judges comprising of Adesewo Fayaman Bay, Oluwaseun Odukoya, Roland Owualah, Esther Omale Onwuka, and Omoefe Tawiyah (Xtranger) after a keenly contested rounds of electrifying dance steps and world class choreography. In the secondary school category, which featured five finalists, Dark Gravity (GSS) dethroned last year’s winner, Glisten International School, Jabi to clinch the first prize position, which they narrowly missed last year. The annual K-pop dance competition which debuted in Nigeria in 2012 is organized to select Nigeria’s representative to the World K-pop Festival held annually in Korea by the Visit Korea committee in collaboration with other organizations like the Korea Broadcast Service, Gangwon and Wonju City and Korean Air. In September, the iDEZ Girls will aim to surpass the achievement of THE ELEVATORZ who represented Nigeria at the 2012 edition of the World K-Pop Dance Festival where they won the third position behind Indonesia and Thailand respectively. The grand finale, witnessed by hundreds of audience and fans of the various teams also had in attendance the Ambassador of

Korea and his spouse, H.E. Mr. Choi Jong-hyun; Nigeria’s Ministers of Youth Development and his Tourism & Culture counterpart, represented by Mr. B.N. Zoaka and Mr. George Ufot; Executive Secretary of the National Insitute for Cultural Orientation, Dr. Barclays Ayakoroma and the National Vice President of the Association of Nigerian Authors, Mallam Denja Abdullahi who doubled as a representative of Mr. M.M. Maidugu, the Executive Director of National Council for Arts & Culture and officials of the FCT Education Secretariat among others. The Minister of Youth, Barrister Inuwa Abdul-Kadir, speaking through his representative commended the Korean Cultural Centre and the Arojah Concepts. “I must commend the initiators of this programme, especially the Korean Cultural Centre and Arojah Concepts for providing such a platform for our youths to showcase their talent and in extension, export it to Korea. This is line with our mandate and we are glad that we have such worthy partners like you.” iDEZ Girls lead dancer, Desire David is optimistic that they would do Nigeria proud at the world stage in Korea. “Winning the K-Pop competition is definitely a great experience and I am greatful to God for my team’s victory today. What this has shown to us is that hard work pays. It is obvious that the competition in Korea will be tougher, so we are ready to work even harder to ensure that we make Nigeria proud at the World Festival in Gangwon.”


THE GUARDIAN, Wednesday, August 7, 2013

72

Issues in the News

Terror alerts: An unending

U.S. President, Barack Obama

...As the world marks the anniversary of the Kenyan and Tanzanian terrorist attacks on U.S. embassy buildings today (August 7) By Oghogho Obayuwana, Foreign Affairs Editor LL seasons come and go but not this one. “High level al Qaeda communication, advanced security precaution, increased A security concerns” have now combined to put the fear of the evil of terror in the minds of many people across the world. And it is not about the leading western nations. It is about our common humanity, of a collective peace and security now badly shaken by some pipeline development that has a continued potential for massive terrorist havoc. August is a “special” month for terrorists. Kenya, Russia, Indonesia and India have all in the past endured some spectacular bombings in that month. The prevailing global terror alerts which were triggered last week Friday have now ensured that just a few hours after the United Kingdom (UK) and the United States (U.S.) State Department instructed that their embassies’ personnel and non emergency staff be evacuated yesterday, both countries have now asked their citizens to leave the Arab nation of Yemen “immediately” as the al Qaeda terror threat intensifies. Once intelligence reports became unfavourable last Friday, warning systems have combined to ensure that by yesterday, no fewer than 22 U.S. diplomatic posts (embassies and consulates) across the Middle East and Africa were initially simultaneously closed after an intercepted conversation of an al Qaeda chief Ayman al Zawahri allegedly instructed the head of the terror affiliate in Yemen, Nasser al Wuhayshi to carry out a major attack as early as last Sunday. The plot is thought to be one of the most serious against American and other Western interests since the September 11, 2001, attacks. To stay closed until August 10 (following an extension), are the diplomatic posts in Abu Dhabi, Amman, Cairo, Riyadh, Dhahran, Jeddah, Doha, Dubai, Kuwait, Manama, Muscat, Sana’a, Tripoli, Antananarivo, Bujumbura, Djibouti, Khartoum, Kigali, and Port Louis. There have also been new closures –Madagascar, Burundi, Rwanda and Mauritius while the outposts that are reopening include those in Afghanistan, Algeria, Bangladesh, Mauritania, Iraq, and Israel. In adding African missions outside the Magreb – Antananarivo, Bujumbura, Djibouti, Khartoum, Kigali and Port Louis to the list, State Department pushed the ring already drawn outside Arab states. Are the threats real or orchestrated? As the U.S. drone air strikes kill four Al Qaeda members, is the end of terror alerts ever to become a reality? Would these terror alerts help the fingered terrorists device another route and timing? How different are today’s global terror alerts from those of yesterday? The Current Ripple It all started early last week when the International Criminal

Police Organisation (INTERPOL) issued a global security alert after those jailbreaks linked to Al-Qaeda. Then the U.S., Canada, France and the UK began shuttering a few endangered embassies even as farther as the Bangladeshi capital Dhaka. In issuing this initial alert, the Lyon, France, based INTERPOL said it suspected Al-Qaeda was involved in recent jailbreaks across nine countries, including Iraq, Libya and Pakistan. It said the jailbreaks had “led to the escape of hundreds of terrorists and other criminals” in the past month alone. It then promptly asked its 190 member countries to help “determine whether any of these recent events are coordinated and linked” and to immediately convey any intelligence that could help prevent another incident. Even though it was trailing the blaze of Washington’s worldwide travel warning, citing unspecified plans by Al-Qaeda to strike U.S. interests in the Middle East or North Africa in August, INTERPOL also noted that August is the anniversary of attacks in India, Russia and Indonesia. On Monday, General Martin Dempsey, chairman of the U.S. Joint Chiefs of Staff, told ABC News that the threats were directed at Western interests, and were “more specific” than previous threats. While an exact target was unknown, “the intent seems clear. The intent is to attack Western, not just U.S., interests,” Dempsey said. The White House has been quoted as saying that the U.S. President Barack Obama has ordered his national security team to “take all appropriate steps to protect the American people,” The air has been further putrefied when hours after the U.S. alert was issued, an audio recording was posted on militant Islamist forums in which Al-Qaeda chief Ayman al-Zawahiri accused the United States of “plotting” with Egypt’s military, secularists and Christians to overthrow Islamist president Mohamed Morsi. In what appears his first public comment on the July 3 military coup, the Egyptian-born Zawahiri said: “Crusaders and secularists and the Americanized army have converged … with Gulf money and American plotting to topple Mohamed Morsi’s government.” Zawahiri, who is said to belong to the militant Egyptian Islamic Jihad group and is believed to be hiding in Afghanistan or Pakistan. He had criticized Morsi’s Muslim Brotherhood movement for going soft on applying strict Islamic law. The current ripple therefore appears justified considering that the U.S. has been especially cautious about security since an attack on its consulate in Benghazi, Libya, on September 11 last year. The unfortunate assault, blamed on Islamist militants, killed four Americans, including ambassador Chris Stevens.

Echoes From The Past Years Today marks the 15th anniversary of the U.S. embassy bombings in the Kenyan capital Nairobi and Dar es Salaam in Tanzania, which killed more than 200 mostly African citizens and injured thousands. But where do the threats lie? The September 11 attack on the World Trade Center in New York had become an eye opener for the interested world citizens on where the smoke of terror is coming from and where they are mostly headed. Again the question: who has been able to cope with its own terror threats? Not even the world’s sole super power, the U.S.! For instance the U.S. had and still has a long list of terror threats and alerts before and after 911. Using Homeland Security Advisory System to depict the threat Level, we see that in September 10, 2007, the U.S. national threat level was elevated, or became yellow just as the threat level was deemed high, or Orange, for all domestic and international flights. But the fears of an upward trend in propaganda tapes and messages has managed to become a constant decimal. In August 10, 2006 there was a statement by Homeland Security Secretary Michael Chertoff Announcing a Change to the Nation’s Threat Level for the Aviation Sector - The Department of Homeland Security said it was taking immediate steps to increase security measures in the aviation sector in coordination with heightened security precautions in the United Kingdom. The previous year-July 7, 2005 Chertoff had announced a targeted raise in the threat level. And asked for increased vigilance in other transportation systems. Since March 17, 2003 when there was an advisory on national Threat Level that had been raised, according to a statement by the then Homeland Security Secretary Tom Ridge, the perception had been oscillating between Yellow and Orange. After then, travel advisories or warnings by the U.S. State Department, UK Foreign and Commonwealth Office (FCO), Canadian Department of Foreign and International Trade (DFAIT) and Australian Department of Foreign Affairs and Trade (DFAT) etc, are regularly issued to alert citizens from the respective countries to avoid certain countries for security reasons. Nigeria On The Terror Map The U.S. mission in Nigeria has refrained from issuing any statement on what connections can be traced to Nigeria or the situa-

INTERPOL said it suspected Al-Qaeda was involved in recent jailbreaks across nine countries, including Iraq, Libya and Pakistan. It said the jailbreaks had “led to the escape of hundreds of terrorists and other criminals” in the past month alone

UN Secretary General Ban Ki-Moon


THE GUARDIAN, Wednesday, August 7, 2013

73

Issues in the News

season

President Jonathan

tion in Nigeria in the eye of the U.S. with regards to the current threat alert. Boko Haram activities have already spoken enough about the situation in Nigeria. When on the 25th of May, 2005, the US National Intelligence Council (NIC), released its longterm outlook and assessment of Nigeria, which projected a catastrophic scenario that Nigeria risks collapse in 15 years as a “Failed State” not only former President Olusegun Obasanjo dismissed the report as emanating from detractors, and sundry “prophets of doom”, most Nigerians were bemused. Security lapses featured prominently in that very controversial report. Terror resorts was the unspoken of factor. There was a precipitate threat on the heels of the NIC report in June of the same year when foreign embassies were closed with a diplomatic source having said that “Intelligence indicated that foreign militants posed a specific threat to the U.S presence in Nigeria. We also remember that until he met his doom, Osama bin Laden had named Nigeria as a “candidate for liberation” A similar warning issued two years later – September 6, 2007 – had said Western interests in Nigeria were at risk of “terrorist attack”. The official warning, in a message for U.S. citizens in Nigeria, had also given few details, but said potential targets included official and commercial installations in the capital Abuja and the commercial city of Lagos. The embassy statement simply said then “The U.S. Mission in Nigeria has received information that U.S. and other Western interests in Nigeria are currently at risk for terrorist attack.” Now, before Boko Haram bombings became commonplace, the possibility of it happening in Nigeria had some naked antecedents. On the 23rd of December 2006 a car-bomb exploded in Port Harcourt, which incidentally is the Oil capital of Nigeria, tearing down parts of the fencing of the Government House, the administrative hub of the state. Following The Guardian inquiry which stretched as far as Washington for clarification, a U.S. State Department official then said the advisory was based on “very nonspecific threat.” In November last year, the U.S. told Nigeria that the war against terror in Nigeria cannot be won by sheer force alone. Rather, according to the United States (U.S.) Assistant Secretary of State in the Bureau of Democracy, Human

Rights and Labour, Mr. Michael Posner, the employment of rules-based approach and the avoidance of impunity on the part of security forces could be key to the desired success. The State Department chief disclosed then that his office has received reports on allegations of extra-judicial killings, arbitrary arrests and detention of suspected members of the sect, committed by Nigeria’s security forces. Specifically on Boko Haram, Posner said the US was worried by the reports of lack of prosecution of security and police officers involved in human rights violations in the course of counter-terrorism activities. But terror cells are up there hanging over Nigeria. So as authorities in Nigeria step up the search for the wand to break the skull of terrorist organisations that turned the country into an operational base until the recent military assault, they may still have to look more critically at the countries lying on the northern belt of Nigeria. From all indications, Nigeria now needs to be a central element, not an outlier in efforts to improve security beyond its northern fringe – the Sahel. Before latest findings surfaced, the link between Boko Haram in Nigeria and Al Qaeda in the Islamic Maghreb (AQIM) and the Al shahab in the Arabian peninsula and Somalia had been established since Al-Qaeda publicly identified Boko Haram as an organisation it can do business with. Today, previously skeptical observers have been forced to accept evidence pointing to Boko Haram’s increasing sophistication. While some of its recent tactics suggest possible foreign training, it is also displaying increasing tactical nuance, crafting political messages to accompany its high profile attacks. Well the events in Mali and elsewhere have now proved that the position is correct. It was therefore not surprising that U.S. General Carter Ham, in charge of American forces for Africa, attended a conference on anti-terrorism in the Sahel in Algeria where he made vital submissions. The worry here among diplomatic watchers is that the fallout of this scenario is increasingly driving Al-Qaeda and terrorist elements southwards and making them concentrate or increase their conglomeration on the borders of the northern states of Nigeria, waiting and willing to be employed or paid for bombing and destabilisation activities. The thinking now is that terror threats may

also continue to alter Nigeria’s grant stature with its development partners. One of Nigeria’s unsung researchers Oladiran Bello of FRIDE, with a Madrid based think tank told The Guardian in a response to an enquiry that if nothing is done about the danger currently existing in the Sahel, “drug-trafficking and other trans border crimes linking West Africa could increase. Western business interests in what is the world’s sixth-largest oil exporter (Nigeria) could become targets. And threats to Nigeria would pose a broader danger because regional stability is impossible without Nigerian leadership” In the eyes of right thinking people, the prevention of violent extremism and radicalisation is just one of the already identified strategic lines of action badly needed today. International Affairs Experts Say Threats Are Real But Wrapped Speaking with The Guardian on the matter, foreign affairs analyst, Dr. Nwangu Okeimiri noted that besides having devastating affects on many African economies they (terror alerts) are imposed on, there are now serious concerns being raised as to whether these alerts serve the purpose of ensuring that citizens of the respective countries are safe when they travel to the countries deemed insecure. “It can be argued that issuing travel alerts is in line with the responsibility of governments to protect their citizens. However, does this responsibility extend to threatening the livelihoods of citizens of other countries that rely on income generated from the tourism industry? Why is it that until last week’s threat, existing lists contains only poor, non-Western countries? How come travel bans are rarely imposed on Western countries, particularly those most threatened by both domestic and international terrorism? He continued: “The place of Nigeria in the scheme of things? Now, Nigeria has to immediately begin to interrogate the alliances that our northern neighbours have with those capable of harming the Nigerian society and economy. The government also must now review our engagements with them. There are states that appear stateless for example Mauritania has become a real menace with the presence of terrorist training camps, while an enclave like western Sahara appears to harbour so many non-state actors that even the struggling authorities there cannot control. Yet these areas just lying above our northern frontiers. Everyone knows that there is a nexus between drug trafficking, money laundering and terrorism financing” Ambassador Ayo Adeniran, former envoy to Venezuela, now with the National Defence College, Abuja spoke of a matured response “We are in the centrist part of the world. But a whole lot of activities (terrorism inclusive) are moving towards the center.” He said further: “There are conventions and international statutes that guide the way and manner things of internal security are treated. The principle of mutual respect must be held sacrosanct at all given times for relations to remain healthy.” According to Ambassador Adeniran, Nigeria has a rich collection of terror scenarios developed over the years and more recently which she can rely on for a “more proactive approach... That is why we have started anticipating the terrorists in our country. With an early warning system, the battle is half won.” But the Director General of the Nigerian Institute of International Affairs (NIIA) has given a more critical dimension to the link between insecurity and terror attacks. At a special brainstorming session recently in Abuja on Migration and Terrorism in Africa, he fingered the international community of contributing to insecurity and insurgency going on in parts of the continent. He said, “Of course, international community does, when there is double standard. I give the example of International Criminal Court (ICJ), all right. When you have a principle, if you are applying it to Africa, apply it to Africa. When it is the case of Europe, you apply it. But when you do not apply it to Europe, then you create a situation of order and counter-order which will always amount to disorder. That’s how it constitutes insecurity.” “However, the fight against terror is a global one and it calls for alertness by national armed forces, national police, and the national intelligence network. The hope is that as the war goes on out there, the right lessons would be learnt by all,” he added. Going Into Tomorrow The Gulf News on Monday quoted the chairman of

the US House of Representatives Homeland Security Committee, Michael McCaul describing intelligence reports to be “probably one of the most specific and credible threats I’ve seen, perhaps, since 9/11.” Similarly, Representative Dutch Ruppersberger, the top Democrat on the House Intelligence Committee, told ABC’s ‘This Week’ that Al Qaeda’s “operatives are in place.” Realising that the chairman of the U.S. Joint Chiefs of Staff, General Martin Dempsey had already said the threats were “more specific” than previous threats. While an exact target was unknown, all of the current frenzy might not be out of place. The State Department has spoken of an abundance of caution, diplomatic watchers believe that the decision to close the embassies is coming as the U.S. government battles to defend recently disclosed surveillance programmes that have stirred deep privacy concerns. Besides, according to earlier reports, western governments are taking seriously the perceived threat from al-Qaeda in the Arabian Peninsula (AQAP), because “the group has an established track record of highly innovative bomb plots”. Terror trackers must daily be remembering the elusive Saudi bomb-maker Ibrahim alAsiri, who is said to have sent his brother to blow up a prince with a bomb concealed on, or possibly even inside, his body. Among the many thwarted efforts and plots, they would also remember our own Omar Farouk Abdulmutallab, who tried to detonate a bomb in his underpants on a flight to Detroit in 2009. Even though AQAP’s leaders have been intensively targeted by U.S. drone strikes in recent years, what does tomorrow bring when by hiding out in remote tribal areas, they have managed to remain largely beyond the reach of the authorities and to continue to plot attacks? The Guardian’s efforts to get some prompt reaction or local position of the US mission in Nigeria regarding the current global terror alerts, have been also from “an abundance of caution.” The embassy in response to lodged enquiry yesterday restated a position of the U.S. state department as conveyed by the embassy’s Senior Information Specialist Mr. Sani Mohammed, thus: “Given that a number of our embassies and consulates were going to be closed in accordance with local custom and practice for the bulk of the week for the Eid celebration at the end of Ramadan, and out of an abundance of caution, we’ve decided to extend the closure of several embassies and consulates including a small number of additional posts. This is not an indication of a new threat stream, merely an indication of our commitment to exercise caution and take appropriate steps to protect our employees including local employees and visitors to our facilities...” When the U.S. issued a travel warning to Kenya on February 6, 2007, the Mwai Kibakiled government cried foul and accused the U.S. of sabotaging the World Cross-Country Championships that was to take place on March 24 in the port city of Mombasa of that year. Considering the reality on ground today, such a warning anywhere would be taken more seriously by state actors.

Of course, international community does, when there is double standard. I give the example of International Criminal Court (ICJ), all right. When you have a principle, if you are applying it to Africa, apply it to Africa. When it is the case of Europe, you apply it. But when you do not apply it to Europe, then you create a situation of order and counter-order which will always amount to disorder. That’s how it constitutes insecurity


74

THE GUARDIAN, Wednesday, August 7, 2013

Sports Ilupeju Bombers, Golden Girls win Lagos handball tourney

Glo Nigeria Premier League

LMC rejects new Kwara United board, gives state 72 hours to reinstate sacked management

LUPEJU Bombers Handball IHandball Club defeated Eko All Stars Club by 35 to 33

• Reschedules Week 24 games From Ezeocha Nzeh, Abuja HE League Management T Company’s (LMC) hammer may fall on Kwara United of Ilorin following the decision of the Kwara State government to sack the club’s management and inaugurate an interim board to run the struggling club. The LMC yesterday gave Kwara State government a 72hour ultimatum to rescind its decision and restore the sacked board or face sanctions, which may result to the suspension of the club form the league. The Ilorin outfit incurred the wrath of the LMC after the government sacked the Bamidele Aluko-led board and constituted an interim management team, led by the Chief of Staff to the Kwara State Governor, Toyin Sanusi. LMC Chief Operating Officer, Salihu Abubakar disclosed yesterday in Abuja that Kwara United have violated the rules governing the league by appointing a serving commissioner in the state as a member of the interim board, adding that the rules also forbids the sack of an existing board when it has not served its four-year term. “This development negates the rules governing the constitution of club management in the elite class in Article 1.9(4), which states that: “Government functionaries viz: Commissioners, Special Advisers, shall not be part of club management. “Appointed in 2012, the Aluko led board is supposed to serve for a period of four years based on Article 1.9(2). According to Article 1.9(5), the Ilorin side risks suspension from the league if found the state government fails to

recall the sacked board of the club,” Abubakar warned. But the state government claimed that the new management team was set up to reposition the team, adding that Aluko’s board will remain in an advisory position. Also included in the new management team is the state Commissioner for Sports and Youth Development, Ramat Abaya. Meanwhile Abubakar has revealed that Week 24 games will now hold on August 11 to allow for the Muslim Sallah festivities. “The board has rescheduled Week 24 games for August 11, while Week 25 games will be played midweek of August 14,” Abubakar said. The Week 24 games were earlier scheduled for Wednesday August 7 and Thursday August 8, while Week 25 games were to be played weekend of August 10

Heartland and Lobi Stars fighting for possession during a recent league match. The LMC has rescheduled Week 24 games due to the Muslim Sallah celebrations. PHOTO: FEMI ADEBESIN-KUTI.

19 years after, Eguavoen still feels the pain of Eagles’ USA ’94 loss to Italy From Ezeocha Nzeh, Abuja USTIN Eguavoen was an integral part of the Super Eagles team that won Nigeria’s second African Nations Cup trophy at the Tunisia 1994 edition of the competition. He was also there when the Super Eagles dazzled the world at the U.S.A 1994 World Cup, beating such countries as Bulgaria, which went ahead to play in the semi-final, and Greece. But he is still pained by the manner Nigeria lost their second round game to Italy despite leading in the game up till the dying moments. The Super Eagles former defender on Monday revisited the 1994 World Cup and how the team lost an opportunity

A

to win or move close to winning the Mundial due to inexperience. Eguaveon, who led a team of the 1994 Super Eagles squad to a meeting with the Minister of Sports and Chairman of the NSC, Bolaji Abdulahi, in Abuja, said a famous victory over Italy in the second round would have propelled the team to beat other countries in line to winning the World Cup for Africa for the first time. He still regrets that the Azzuri recovered with two minutes of play left to break Nigeria’s hearts, with Roberto Baggio scoring an extra-time penalty goal to secure a 2-1 victory. The then Eagles stand-in captain, who is currently the chief coach of Nigeria National League side, COD of Lagos, con-

Its dancing time….world’s fastest man, Usain Bolt, dancing to the reggae beat in Moscow, Russia, ahead of the PHOTO: METRO.CO.UK IAAF World Championships.

ceded the foul that was ruled a penalty infraction for Italy’s equaliser. He recalls that Nigeria had the most balanced team at U.S.A ‘94, but failed to handle the tempo because it was the first time the players were appearing at the World Cup. ‘’Our loss to Italy in 1994 had nothing to do with a bonus dispute. It was caused by our lack of experience. We would have gone far and even won

the World Cup if we had some experience. “Then we had high calibre players like Finidi George, Jay Jay Okocha, Emmanuel Amunike and Uche Okechukwu,’’ Eguavoen reminisced. The Enyimba of Aba former coach also talked on the call for a code of conduct for national team players, saying it was necessary for team discipline.

points in the final of the Lagos InterClub Handball Competition, which ended at the weekend. The two day tourney, held at Indoor Sports Hall of Mobolaji Johnson, Rowe Park, Yaba, Lagos, was organised by the Lagos State Handball Association with financial resources facilitated by the Lagos State Ministry of Youth, Sports and Social Development, as well as, the state’s Office of Grassroots Sports Development. In the finals watched by a mammoth crowd, both teams lived up to expectations, but Ilupeju Bombers overpowered their opponents at the tail end of the game to emerge winners. Speaking after the match, Head Coach of Eko All Stars, Femi Tunji said his players gave good accounts of themselves, but ill luck prevented them from winning the match. “It was a good game for both teams. I am happy that we were not disgraced. We lost the match because my players did not have enough time to train together,” he said. In his reaction, Ilupeju Bombers’ Captain, Abdulraham Yusuf admitted that their opponents gave them a good fight, but with resilience and determination they were able to overcome them. He admitted that the match was keenly contested, but the better side won. In the final of the female category, Golden Girls Handball Club defeated Police Machine Handball Club by 29 to 19 points to emerge winners. Speaking at the end of the competition, Chairperson of Lagos State Handball Association, Adeola Opeifa, expressed gratitude to God for the success of the event.

IAAF World Championships: Bolt gets into party spirit, plans Moscow rule SAIN Bolt will be looking to U set Moscow alight at the World Athletics Championships and proved he is already in the party spirit at a special Jamaica event in the city’s famous Gorky Park. Locals lapped up music from Russian dancehall and reggae act, Steppa Style, and instrumental reggae band, The Stereodrop, while freerunners competed in a Flow Contest, wowing Bolt with their freestyle skills. “I got a wonderful reception from the Russian fans here at Gorky Park, it was really nice to see the support I have in Moscow,’ the world’s fastest man said. “PUMA like to bring a taste of Jamaica to wherever I go, and give local people an experience of the food, music and culture that comes from our small island. I enjoy that, and

meeting fans and seeing them enjoying Jamaican reggae and dancehall makes me happy. “The Russian music acts were really good, it was a wonderful start to my Moscow visit and good to unwind with the locals for a few hours before my final training preparations continue.” Meanwhile, the six-time Olympic sprint champion remains a beacon of hope in a sport rocked by elite athletes testing positive for banned substances, a leading sports medicine specialist in Jamaica said. Paul Wright said Jamaica would suffer from infinite distress should Bolt’s name fall on the wrong side of any drug test. “Usain Bolt has been tested more often, I think, than all of the athletes in Jamaica, and he is well aware of his impor-

tance to the sport,” declared Wright, the Jamaica AntiDoping Commission (JADCo) doping control officer. “I remember, and this is a quote from Usain, ‘if I test positive, the whole of Jamaica is dead’ and that is true.” Jamaica’s sprint queen, Veronica Campbell Brown, former 100-metre world record holder, Asafa Powell, and Beijing Olympics silver medalist, Sherone Simpson, are among those, who recently returned adverse analytical findings. All three are seeking to prove their innocence. “As I told another interviewer, I said I would drop dead. There is so much on it and he is well aware of his responsibilities,” Wright said while addressing a function in Kingston. • Culled from www.Metro.co.uk and www.deccanherald.com


THE GUARDIAN, Wednesday, August 7, 2013

SPORTS | 75

Amuneke wants competitive league, transparent managers By Eno-Abasi Sunday ORMER Barcelona of Spain winger and Assistant Coach of the Golden Eaglets, Emmanuel Amuneke says the sparse presence of Nigerian players in elite leagues across the world would persist as long as the domestic league remains uncompetitive and without attraction. The ex-international, who also starred for Zamalek of Egypt, in an interview with The Guardian maintained that until a lot of investment is done at the grassroots level, coaches constantly exposed to refresher courses and players’ welfare prioritised, the domestic leagues would remain largely uncompetitive and its products unattractive

F

to mega clubs. He also added that transparent application of funds accruing to the league management bodies was key to in the struggle to take the country’s football to desirable heights. Amuneke, who score two breathtaking goals, which handed the Super Eagles their second AFCON crown lamented that, “our football has gone down in comparison with what was obtained in the 1990s when our league was well structured and highly competitive. “Unfortunately, we don’t have a competitive league any longer and our young players are eager to go out than they are to improve

Hammed Adeyinka is sure of a good outing at the Lagos International Classics slated to hold later this month.

their game to meet international standard. So I think the main thing is for us to improve our league, restructure it, put in place proactive plans and make serious efforts at implementing the plans.” The former Julius Berger winger added, “across the world, football is constantly changing, this puts a demand on us to follow the trend and evolve alongside the rest of the world if we are to make any headway. We cannot continue to build our tomorrow on previous achievements and think that we can still dominate in the new era. This is impossible because football is changing and people in other parts of the world are adapting to the changes. This probably explains why our players are no longer playing in top leagues across the world. “However, I think with the potentials we have, the future is bright, but it is left for us to recognise that things are not going well at the moment and work towards making the necessary amendments.” Deploring the high rate of graft among management personnel, which has left the domestic league stunted, he stressed that things were “going well with leagues in Europe because those, who manage them are being very transparent in their dealings and always work towards the betterment of the leagues. If we are honest, transparent and realistic with what we are doing, we may not succeed immediately, but we will definitely succeed in a couple of years because doing the right things means we are moving in the right direction.”

By Olalekan Okusan

N

the best. Neymar, Ronaldo, Messi, Iniesta, Messi, Xavi and if things work out, Gareth Bale…name them, the biggest names are in or heading to Spain. “Our listeners have always craved for something from Spain and we made a bold move last season in bringing live to listeners, commentaries of the home games of Barcelona in the Champions League from Nou Camp. “We have improved on that and are pleased to inform you that 83 years after La Liga started, the Spanish football authorities are for the first time putting La Liga and their cup tournament, Copa Del Rey, on radio in Africa, we have acquired the exclusive radio rights for both the LA Liga and the Copa Del Rey for the Nigerian territory. “These competitions will debut in Nigeria on August 17. It is another first from our stable,” Izamoje said. He revealed that for all its major acquisitions, BrilaFm has “sponsorship and advertising windows buBy Tony ilt around interactivity via phone sessions with listeners.

George-Taylor blames poor facilities for boxing woes ORMER Chairman of the F(NBF), Nigeria Boxing Federation Rotimi George-Taylor, yesterday blamed the country’s lack of the requisite facilities to groom budding talents for the sorry state of the sport. Speaking against the backdrop of the recently concluded South-South One Boxing Championship that took place in Benin City, GeorgeTaylor told the News Agency of Nigeria (NAN) in Lagos that it would be needless to discover these boxers and not acquaint them with current trends in the sport. The championship was organised by the National Sports Commission (NSC), South-South Zone One, as part of efforts to popularise the sport at the grassroots. “The championships that recently held in Benin was a good effort, but there are new rules in the world of boxing. When you are lacking facilities to implement those

rules, what’s the point of organising boxing competitions to find boxers,’’ he said. George-Taylor, however, commended the efforts of the NSC to breathe life into the sport; but stressed that the programme may not yield the desired results in the long run. “Without proper direction in the training of upcoming boxers, all this competitions here and there will be a

waste, there are no standard equipment for brushing up boxers in Nigeria. “When the boxers are trained with poor equipment and low standards, how will they perform when they get to a world class forum?” George-Taylor stressed that boxers trained with substandard equipment and facilities usually performed poorly at international competitions.

Alabi named in National U-17 Youth Games’ committee HE Presidency has appointed Banji Alabi into the T Organising Committee of the National under-17 Youth Games. Alabi’s appointment was contained in a letter signed by the Director-General of the National Sports Commission (NSC), Gbenga Elegbeleye. Alabi, a lawyer and an accountant, is actively involved in massive grassroots sports promotion and sponsorship especially in his home town, Owo, Ondo

State. He attended Imade College, Owo for his School Certificate before moving to the Yaba College of Technology, where he obtained his HND in Accountancy. Alabi also obtained a Bachelor of Law degree from the Lagos State University. A member of the prestigious Lagos Polo Club, Alabi as an amateur boxer in his secondary school days, participated in 12 tournaments without losing any bout.

Tough time awaits Assar at International Table Tennis Classics, Adeyinka boasts

BrilaFm gets exclusive rights to La Liga, other competitions T By Tony Nwanne IGERIA’S first sports radio station, BrilaFm, yesterday disclosed that it has acquired the exclusive right to broadcast matches of the Spanish football league, La Liga, and cup competition, the Copa Del Rey, in the Nigerian territory. This new acquisition, added to the station’s existing rights to the English Premiership, FA Cup and the Capital One Cup, as well as, the Bundesliga and German FA Cup, makes BrilaFm the home of the world’s biggest football competitions in Nigeria. Speaking while unveiling the new acquisitions to an impressive audience at the Eko Hotel, Lagos, BrilaFm Chairman, Larry Izamoje, disclosed that the right gives the station the authority to hook up to the live happenings on the field of play and also give the audience the behind the scene events during games. “We believe that to be the best, Nigeria must relate with the best. As broadcasters we should bring our listeners

Nigeria’s Edith Ogoke (right) fights with an opponent during one of the boxing bouts of the 2012 London Olympic Games.

HE advertised presence of the current African Champion, Omar Assar in the first Lagos International Table Tennis Classics does not scare Nigeria’s champion, Hammed Adeyinka, who boasts that the Egyptian would face a Herculean task in the competition. A confident Adeyinka, who had a 10-day training tour of China last year and also

spearheaded Lagos’ dominance of table tennis at the last National Sports Festival, dismissed the fear that Assar will shove aside Nigerian players at the tournament. The triple gold medalist at the Eko 2012, who is preparing to feature in his first international tournament at this weekend’s Cameroun Invitational Championship holding in Yaoundé, said he was sure the Egyptian would fail in Lagos.

“I have heard a lot about Assar, but I also want people to know that he must have also heard a lot about me being the current Nigerian national champion. We have not met before and I believe this will be to my own advantage. I know that he will not find it easy with most of the Nigerian players because we are ready for the championship,” he said. Adeyinka, however, acknowledged the quality of

Chairman of sports radio BrilaFm, Larry Izamoje (second right), Super Eagles’ former stars, Mutiu Adepoju (left), Victor Ikpeba and Peter Rufai (right) during the unveiling of the La Liga and Copa Del Rey broadcast rights acquired by the station…yesterday.

Assar, saying, “he (Assar) is indeed a good representative of Africa having won series of competitions and I am looking forward to test might with him in Lagos,” Adeyinka said. He said the tournament would impact positively on most of the Nigerian homebased players, as the dearth of tournaments has affected the fortune of the players, as well as, the country at global competitions. “I am happy that this tournament is coming at this time, especially for most of us, who are yet to feature in any international competition. I am happy and I believe the Cameroun tournament would prepare me for the classics,” he said. Players within and outside Nigeria have started registration for the International Table Tennis Federation (ITTF) and Africa Table Tennis Federation (ATTF) approved tournament holding at the Molade Okoya-Thomas Hall of Teslim Balogun Stadium from August 26 to 31. The deadline for players’ entry has been fixed for August 13, while qualifying matches in all events for Nigeria-based players hold from August 22 to 23.


76 | SPORTS

THE GUARDIAN, Wednesday, August 7, 2013

Rooney ‘will need to force Chelsea move’ AYNE Rooney must force his Manchester United departure if he wants to leave, says ex-Red Devils player Paul Ince. United say the striker is not for sale after rejecting a second Chelsea bid - of £25m plus add-ons - while Rooney is understood to be intent on leaving. “If Wayne wants to go, then it is up to him to force that issue,” said Blackpool, manager Ince. “But Wayne has not said he

W

wants to go or wants to stay, it would be nice to know what Wayne Rooney wants.” Rooney, 27, has been left out of their squad for Tuesday’s friendly in Stockholm with a shoulder injury. Speculation has surrounded the England international’s future since ex-United Manager, Sir Alex Ferguson stated in May that he had asked for a transfer. That request, which sources close to the player insist did not occur, followed a season

in which the player struggled for form and fitness, was usurped as main striker at the club by Robin van Persie and was dropped for the high-profile Champions League second round, second leg clash with Real Madrid. Ferguson’s successor, David Moyes has continually stressed that Rooney is not for sale. But that has not deterred Chelsea, who had an initial bid of about £20m turned down by United in July. Rooney has won five Premier League titles, one Champions League and two League Cups since joining United from Everton for a deal worth up to £27m in 2004.

Bayern doesn’t need Lewandowski, Hitzfeld insists WITZERLAND coach SBayern Ottmar Hitzfeld believes Munich do not need Robert Lewandowski. Last year’s first choice striker Mario Mandzukic has struggled to secure regular first team action at Bayern during preseason following the arrival of Guardiola and Hitzfeld thinks a similar scenario would have been on the cards for Lewandowski in the Bavarians’ ‘false nine’ system. “Bayern do not need Lewandowski in normal circumstances. They already showed last season how strong they are,” Hitzfeld was quoted as saying by TZ. “I really liked Mandzukic a lot. He fought himself into the team and brought a winner mentality with him. If

Mandzukic is not going to play as a real No.9, then how is Lewandowski going to get playing time? “Lewandowski is a real No.9 as well, he’s no [Lionel] Messi. That’s what I’m wondering about. Do you really need Lewandowski in [Pep] Guardiola’s system...” The Poland international, 24, was widely expected to join

Bayern this summer, but BVB eventually vetoed the move and refused to let its star striker follow in the footsteps of Mario Gotze and join its archrivals. Lewandowski’s contract with Dortmund runs out in the summer of 2014, though, and he still seems destined to make the move to Bayern next year.

Neymar downplays health problems ARCELONA attacker, B Neymar has insisted that his health issues will not

Rooney

Boateng, Allegri expect bigger things from Balotelli ARIO Balotelli has often M flirted with greatness during his first six years in professional soccer. His teammate Kevin-Prince Boateng and Coach Massimilo Allegri believe this is the season he puts everything together and becomes an elite player. “He’s adjusted very good (since his arrival in January). He came and he’s scored and that’s important,” Boateng told Goal. “We’ll wait and he’ll score more goals and he’s going to become a bigger player than he is now.” Despite being a lightning rod for controversy during his time at Manchester City, Boateng insists that Balotelli has been a good teammate and is focused on the task at hand. To his credit, Balotelli has been on fire since returning to Serie A, pouring in 12 goals in his first 13 league appearances for Milan “Balotelli has adjusted to Milan’s players very good. We’re friends and we talk a lot. Sometimes I help him and he helps me, he’s a very good guy,” Boateng said. Allegri agrees with Boateng’s assessment of Balotelli and points to his young striker’s age as evidence of how much room he has to improve. “Mario is still only 23-yearsold but he has all of the capability to be a top player,” Allegri said. “I expect Mario to be better than he was last year. He’s had a chance to do preseason with the team and

he’ll have a full year with the team.” Balotelli’s improvement could be a huge factor in determining whether or not Milan stays among Serie A’s contenders. Due to a lack of transfer funds, the Rossoneri haven’t added any major upgrades to the team in the offseason, aside from Keisuke Honda joining the team next January on a free transfer. Combined with Fiorentina, Napoli, Roma and reigning champion Juventus all adding significant pieces this summer, and Milan could miss out on the Champions League altogether and the lucrative TV deal

Luiz

cause him any problems during pre-season as the Spanish champions continue their preparations for the 2013-14 campaign. The Brazil international was diagnosed with anemia a low red blood cell count which can cause excessive levels of tiredness in players, following routine blood tests this summer, leading to worries about his fitness ahead of the new season. Sporting Director, Andoni Zubizarreta already stated at the weekend that the club are not concerned, though, and Neymar, who had his tonsils removed a month ago, has now stressed that he

is feeling fine, too. “I am feeling just fine,” the attacker told reporters in Thailand. “I have already improved after my tonsil operation and I have no problems in training. I am getting better.” The 21-year-old then went on to say that he has high expectations as the start of the 2013-14 season edges closer. “I have high expectations for myself and the team. I hope to have a good performance in the next season. We will try to work as a team to win honors,” Neymar added. Barcelona’s first official match of the season is their Liga opener at home against Levante on August 18.

Mourinho rules out Luiz’s sale to Barca HELSEA Manager, Jose C Mourinho has talked up David Luiz and ruled out a move for the defender to Barcelona this summer. The Blues boss praised the 26-year-old Luiz’s ability and insisted he will be used in the team after he sat out Chelsea’s 2-0 over Milan in the club’s latest preseason match. “David has come back with us fantastically and we have to use his quality,” Mourinho

told reporters. “He has big self-confidence and selfesteem, especially when he comes up from the back with the ball. “Can he improve defensively? Of course. But it is my job to try always to improve players.” The Portuguese coach also confirmed that midfielder Frank Lampard is ready to begin his preseason preparations with the squad after overcoming an injury.

Lewandoski

Transfer Gossip Manchester United players such as Rio Ferdinand, Ryan SwithENIOR Giggs and Patrice Evra are growing increasingly frustrated Wayne Rooney’s behaviour as the 27-year-old striker looks to push through a move to Chelsea. Chelsea are preparing a third bid for Rooney after failing with a second offer for the England striker on Sunday night. Manchester United Manager, David Moyes must decide whether to risk Rooney receiving an angry backlash from Reds supporters in Sunday’s Community Shield against Wigan. Liverpool is prepared to sell winger Stewart Downing, 29, to Newcastle for £5m. Downing, who has played for Middlesbrough and Sunderland, moved to Anfield for a reported £20m from Aston Villa two years ago and is now considering his options. Chelsea Manager, Jose Mourinho has no intention of selling David Luiz despite interest from Barcelona in the 26-year-old Brazil defender. Atletico Madrid’s Brazil striker, Diego Costa, 24, says he wants to stay at the Spanish club despite interest from Liverpool. QPR’s Brazil goalkeeper, Julio Cesar, 33, is on the verge of joining Italian side Fiorentina, a year after moving to Loftus Road from Inter Milan. Turkish side Besiktas want to sign Jermain Defoe, 30, after failing with a move for his fellow Tottenham striker Emmanuel Adebayor, 29. PSV Eindhoven’s Sweden striker Ola Toivonen, 27, is open to a summer move to Norwich. Hull want to sign Marseille’s France midfielder, Morgan Amalfitano, 28, on a season-long loan and are set to pay Evian £1.5m for Ivorian midfielder, Eric Tie Bi, 23, after failing with moves for Sunderland’s Lee Cattermole and Jack Colback and Stoke’s Wilson Palacios. Millwall are in talks to sign Australian midfielder Ruben Zadkovich, 27, from Newcastle Jets. Stoke are continuing to insist that midfielder, Steven Nzonzi will not be sold. The club rejected a written transfer request from the 24-year-old in May. Everton have made an approach for 24-year-old Ajax defender Toby Alderweireld. Cardiff is willing to pay £4m for Queens Park Rangers midfielder, Stephane Mbia, 27. Clint Dempsey’s £5.2m annual salary at Seattle Sounders is bigger than David Beckham’s basic wages were at LA Galaxy. The United States international left Tottenham to join the MLS team over the weekend. Ally McCoist’s future as Rangers manager is hanging in the balance after Walter Smith quit as club chairman. The image of Real Madrid target Gareth Bale, 24, has been removed from the official Tottenham Twitter page. Stuttgart Director of Sport, Fredi Bobic has dismissed suggestions the Bundesliga club will attempt to sign Lewis Holtby, just seven months after the Germany midfielder, 22, joined Tottenham from Schalke. Liverpool’s Slovakia international defender, Martin Skrtel, 28, is closing in on a move to join former manager Rafael Benitez at Napoli.


THE GUARDIAN, Wednesday, August 7, 2013

77


THE GUARDIAN, Wednesday, August 7, 2013

78 | SPORTS

Olympics gold medalist, Tweddle quits gymnastics YEAR to the day after comA pleting her list of honours with an Olympic medal, Beth Tweddle yesterday called time on her competitive career after fulfilling a dream at London 2012. The 28-year-old from Cheshire took time to reflect following her uneven bars bronze at the 02 Arena last summer, before deciding it was right to bow out at the top after realising her mind and body were no longer able to cope with the demands of training and competition. “It’s a strange sense, knowing I’ve finally bitten the bullet and announced my retirement,” Tweddle told Press Association Sport. “I needed that time just to know I was making the right decision. It took me 20 years to achieve that dream and it meant so much to me to be there. I’m just glad I was able to achieve that one last dream before I announced my retirement.” Tweddle, who has joined cyclists, Sir Chris Hoy and Victoria Pendleton and swimmer Rebecca Adlington in opting to retire post-London 2012, was a trailblazer for British gymnastics. In 2002, aged 17, she won Commonwealth Games gold in Manchester and in 2006 she claimed the first of three world titles, becoming the first Briton to win gold at a World Artistic Gymnastics Championship.

The six-time European champion’s bid for an Olympic medal proved elusive until last summer, in her

Tweedle

third Games, in north Greenwich, in the same arena where she won her 2009 world title.


THE GUARDIAN, Wednesday, August 7, 2013

79


TheGuardian Conscience, Nurtured by Truth

By Sylvester Edoh “The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is,” Winston Churchill.

T

HE strength and viability of a structure or an entity is determined, to a larger extent by the quality of its foundation and principles. A structure is susceptible to an eventual collapse regardless of its size or magnificence if it is erected on a faulty or defective foundation. External renovation is not what is required to correct a foundational or structural defect in a building; rather, some parts of it that are not part of the original plan would have to be dispensed with. A costly error will no doubt require a corresponding costly solution often with painstaking effort and sacrifice. Just as the strength of a building is determined by its foundation, the strength as well as the survival of any entity is determined by its guiding principles. Since the return to democracy, unfolding events have left us wondering about the principles guiding the operation of our polity. Ours is a polity founded on stark falsehood, serial impunity and gross controversies. Successive administrations have come, acknowledged the level of decay in the polity, made promises to make amends and gone with little or no impact whatsoever. We are a people that have waited, prayed and hoped for change for too long, but each passing day leaves us with news or event that leads us farther away from the promised land of our dream. When a step is taken forward, multiple steps are taken backwards in the wrong direction as if it is a norm to maintain the status quo and plunge us into deeper economic and political chaos, misery and crisis. Democracy and good governance are two twin mantras of modern day political leadership the world over with the supposition that true democracy is characterised by good governance. Good governance centres on the responsibility of governments and governing bodies to meet the needs of the masses as opposed to select groups in the society by ensuring probity, transparency, accountability and respect for the rule of law. We claim to have had democracy before and we are practising democracy now, but where is its inseparable twin brother – good governance? It has been sacrificed on the altar of brazen falsehood, serial impunity and gross controversies by generations of self-seeking politicians in their bid to satisfy their unbridled quest for power and wealth. Our problem is not that we do not understand the science of leadership or that those who rule us are ignorant of the right thing to do, but that we have gone too far in the wrong direction and are thinking we can reach the right destination by adjusting our compass instead of changing our direction. In our attempt at nation building, both as leaders and ordinary citizens, we must observe the basic governing principles of our union as defined by the constitution. But what happens if that same constitution becomes subject of multiple, conflicting and arbitrary interpretations just to suit the whims and caprices of the ruling class who forget to realise that according to the dictates of true democracy, the leaders are just in power and not with power while the masses are with

What does one make of the recent election of the Nigerian Governors’ Forum where for any absurd reason best known to the supposed paragons of our “nascent” democracy none could tell which is the greater between the numbers 19 and 16 in order to decide the valid winner of that election? Was nobody knowledgeable enough in simple arithmetic or elementary maths among our supposed Chief Executives to tell the greater of the two numbers?

Please send reactions and feedback for YOUTH SPEAK to:

editorial@risenetworks.org and 07067976667- SMS ONLY

Undress that lie; it still looks pretty ugly

Jang

Amaechi

power and not in power? What does one make of the recent election of the Nigerian Governors’ Forum where for any absurd reason best known to the supposed paragons of our “nascent” democracy none could tell which is the greater between the numbers 19 and 16 in order to decide the valid winner of that election? Was nobody knowledgeable enough in simple arithmetic or elementary maths among our supposed Chief Executives to tell the greater of the two numbers? If the winner of an election conducted between 36 governors could not be easily decided, how much more chaotic and complicated would it be to decide the winner of an election by about 70 million valid voters with a constituency of more than 160 million people? And what do you make of the current situation in the River State House of Assembly where five members became a majority against 27 members with the power to initiate an impeachment process against the speaker of the House? Right now, River State is currently

immersed in a thick political darkness characterised by intrigues, manipulations and violence. This development if left unchecked would lead to untold hardship and even loss of innocent lives. River State, a dormant epicentre of violence in the Niger Delta region deserves a better deal than this at this time in order to consolidate on the gains of the prevailing relative peace. These bizarre and disgusting scenes are symptomatic of our all-too-familiar failures of attempted democratisation. This is the degree of falsehood and impunity in the system. The most nauseating part of this is that we usually explain away these acts of gross irresponsibility as a sine qua non for our “nascent” democracy. Question is how long will our nascent democracy continue to breed violence and insecurity? Who will live to witness true democracy if we all have to die rehearsing it? Where will we practice it if we have to weary the state out of existence by learning it? How long will it continue to aid and abet corruption? How long will it continue to be characterised by rigging and

The YOUTHSPEAK Column which is published daily is an initiative of THE GUARDIAN, and powered by RISE NETWORKS, Nigeria’s Leading Youth Development Centre, as a substantial advocacy platform available for ALL Nigerian Youth to engage Leadership at all levels, engage Society and contribute to National Discourse on diverse issues especially those that are peculiar to Nigeria. Regarding submission of articles, we welcome writers‘ contributions by way of well crafted, analytical and thought provoking opinion pieces that are concise, topical and non-defamatory! All articles (which are not expected to be more than 2000 words) should be sent to editorial@risenetworks.org To read the online Version of this same article plus past publications and to find out more about Youth Speak, please visit www.risenetworks.org/youthspeak and join the ongoing National Conversations’’. Also join our on-line conversation

RISE GROUP

@risenetworks

21676F3E

Published by Guardian Newspapers Limited, Rutam House, Isolo, Lagos Tel: 4489600, 2798269, 2798270, 07098147948, 07098147951 Fax: 4489712; Advert Hotlines: Lagos 7736351, Abuja 07098513445; Circulation Hotline: 01 4489656 All correspondence to Guardian Newspapers Limited, P.M.B. 1217, Oshodi, Lagos, Nigeria. E-mail letters@ngrguardiannews.com; www.ngrguardiannews.com

Editor: MARTINS

OLOJA

.

ABC (ISSN NO 0189-5125)

Wednesday, August 7, 2013

The challenge of our leadership is the attempt to dress the lie and make it appear immaculate without knowing that lie itself stinks and vitiates even the fragrance of the perfumed window dressing. They are preaching the gospel of change, but having a secret romance with the status quo, advocating justice but shy or rather scared of its double-edged sword.

other electoral frauds? How long will it continue to run without its basic principle of tolerance? When will it start building a politically stable and economically prosperous nation whose name inspires awe and admiration rather than evoking sneer and contempt? How long will it continue in this state of depravity and infamy? How long will it keep us in darkness without electricity? How long will it keep our youths on the streets without jobs? How long will it continue to gamble with our fate as a people? How long will it continue to take our lives and welfare for granted? When can it afford the opportunity for us to live as much as we dream? When will our democracy begin a conscious transition from this “nascent” phase to the mature phase? I know there is no alternative to true democracy, but there is an alternative to “democratic” cretinism and imbecility. The challenge of our leadership is the attempt to dress the lie and make it appear immaculate without knowing that lie itself stinks and vitiates even the fragrance of the perfumed window dressing. They are preaching the gospel of change, but having a secret romance with the status quo, advocating justice but shy or rather scared of its double-edged sword, openly holding the heels of corruption but secretly girding its loins by treating its perpetrators with kid gloves and wearing the toga of democrats over the character of autocrats. It is not the name democracy that guarantees transformation but the character of those entrusted with the responsibility of manning its apparatus as well as their respect for its basic principles and tenets. It is a question of whether the leaders acknowledge their positions in the scheme of things as stewards entrusted with the mandate of ensuring the welfare of the people by holding the aggregate power of the people voluntarily donated by the people in trust through elections. That is why we have democracy— that the people can say this is the government of their own making and for their own good and not for their evil. And this is why it is different from any other type of government including the military. In this country, we have witnessed both sides -– the military for a longer period and then democracy. The military has been blamed for all the woes that bedevilled the nation before the return to civil rule in 1999, but the only obvious difference democracy has made thus far is that while under military rule, we were not free to denounce injustice and corruption for the fear of the gun, under our current “nascent” democracy, we are free to denounce only to the hearing of Mr impunity and Mr nonchalance. The time has come for us to realise the futility of these democratic pretensions. We need to know that it is not only “subsidy” that is not sustainable; lie, corruption, political gimmicks and intrigues are far more unsustainable if not disastrous. If we must move an inch forward in the right direction, we must consciously begin to shield this excess baggage of brazen falsehood and needless controversies and drama that characterise our polity. We are sick and tired of watching grotesque and silly episodes on our national dailies and TV channels of a drama that is meant to be acted with seriousness and sobriety by sincere, honest and civilised men to enliven the souls of their highly suspended and expectant audience. It is time to imbibe the true culture and principles of democracy characterised by tolerance, statesmanship, sincerity and integrity so we can find our true bearing in the comity of nations. This we can, but not without leaders with character, principle and sacrifice. Our leaders must henceforth stop wasting their efforts in dressing the lie for it still looks pretty ugly. • Edoh is a writer and public analyst based in


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.